Norms of Performance & Credit Rating Scheme for MSEs revised; any approved & empanelled agency can be selected

New Delhi, May 25 (KNN) The Government has revised the guidelines of Performance & Credit Rating Scheme for Micro and Small Enterprises (MSEs) under which only rating agencies registered by SEBI and empanelled as External Credit Assessment Institution (ECAI) by RBI would be eligible to carry out rating of MSEs under the Scheme.

However, MSEs shall be at liberty to select any of the approved rating agencies empanelled under the rating scheme. The rating agency chosen by the unit shall be mentioned in its request for obtaining the rating.

Any rating agency that is not meeting the above criteria would not be allowed to continue rating work for Ministry of MSME under the PCR Scheme.

The eligible rating agency should apply to receive subsidy under the PCR Scheme on the portal of NSIC. Approval for eligible rating agencies should be given within one month.

National Small Industries Corporation (NSIC) is the nodal agency for implementing the scheme of performance and credit rating for MSEs through its various branches/offices located in the country.

According to the revised guidelines, the unit’s rating shall be a combination of performance and credit worthiness of the unit. The MSEs rating methodology shall cover a combination of credit and performance factors including parameters measuring operational, financial, business and management risks.

Also, NSIC shall maintain a database about the units awarded Rating by different Rating Agencies.

The application forms will also be made available at the website of Ministry of MSME, NSIC, Office of Development Commissioner, MSME, Coir Board, KVIC and the Rating Agencies. Interested MSME Associations will also be requested to make available the Application Form from their website.

Any MSE unit wishing to apply for rating will have to fill up the prescribed application form and submit the same to the rating agency chosen by it and as well upload the same on the website www.msmedatabank.in.

The Rating Scheme is expected to encourage MSE sector in improving its contribution to the economy by way of increasing their productivity, since a good rating would enhance their acceptability in the market and also make access to credit quicker and cheaper and thus help in economizing the cost of credit.

Besides, the rating would also infuse a sense of confidence amongst the buyers for taking a decision on the options of sourcing material from MSEs. (KNN Bureau)