New Delhi, June 28 (KNN) Government of Jharkhand shortly  is coming up with equity funding for MSMEs to flourish the sector further, said K Ravi Kumar, Director of Department of Industries, Jharkhand.

He said the MSMEs must act as a catalyst in the overall growth and development process of the industry.

He was speaking at the inaugural session of the CII Jharkhand Micro, Small & Medium Enterprises (MSME) Conclave 2018.

Addressing the gathering, he said MSMEs need to grow fast and the banks need to be much more proactive in providing finances to the MSMEs.

In regard to clearances and approvals, Kumar said, the situation has improved and further emphasized on the need to focus on product quality.

Further, Kumar declared that the Government of Jharkhand is also working towards increasing its purchase from the MSMEs.

Speaking at the occasion Debashish Choudhury, chief procurement (MRO & Services), Tata Steel Ltd said that 30-40% of steel is consumed by the MSMEs in Jharkhand.

He opined that for the MSMEs, it is extremely important to engage with the customers.

According to him, capability building is also crucial for the overall growth of the MSMEs along with sustainability.

Atul Dua, chairman & managing director, Multitech Auto Pvt Ltd stated that simplification of procedures is the need of the hour for the MSMEs. Jharkhand has all the capability to become leader in the casting, forging and machining space.

Highlighting the role MSMEs play, Sanjay Sabherwal, chairman, CII Jamshedpur Zonal Council & Managing Director, Metaldyne Industries Limited said that MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas.

MSMEs are complementary to large industries as ancillary units, he added.

He stated that CII has submitted some recommendations to the government as priority for the growth of the MSMEs which include implementation of a revised framework for MSME definitions, special dispensation from various compliances related to taxation, labour laws, etc. for an initial period of 3 years, setting up incubation cells and hubs within clusters, implementing cloud technology among the MSME clusters and effective implementation of various market development schemes.

The CII Jharkhand MSME conclave had particularly focused on enhancing competitiveness of MSMEs, financing options for MSMEs and transformation through technology.