Annual Capacity Building Plan For Ministry of MSME And DFS Launched

New Delhi, Jan 17 (KNN) Bhanu Pratap Singh Verma, Union Minister of State, MoMSME, released the Annual Capacity Building Plan (ACBP) for Ministry of MSME and Department of Financial Services (DFS), on Wednesday.

The objective of the exercise is to create a training plan for each role, identifying organizational needs and building a culture conducive for learning. The ACBP envisions to enhance contribution of MSMEs towards GDP and exports, promote digitization of MSMEs and facilitate data driven analysis for MSME related schemes. A Capacity Building Unit (CBU) will also be established in every Ministry to effectively manage capacity building interventions.

Speaking at the capacity building workshop, the Minister, said, “The launch of Annual Capacity Building Plan is aligned with PM’s vision for a USD 5 trillion economy. The threefold increase in the budget for Ministry of MSME in the last decade is a manifestation of the government’s commitment to strengthen and develop MSME sector.”

Furthermore, he acknowledged that constrained access to formal credit is hampering the growth of MSMEs. The credit gap in MSME sector amounts to INR 25 trillion, with the overall debt demand from MSMEs amounting to nearly INR 70 trillion”, the Minister added.

Recommendations proposed at the workshop for enhancing access to credit, addressing issue of delayed payments and boosting MSME exports included- timeline for registration of Central Public Sector Enterprises (CPSEs) and all companies with turnover of INR 500 crore and above on TReDS portal, tracking of CPSE procurement from MSMEs and transactions through TReDS and bringing in uniformity in assessment criteria followed by various credit bureaus.

Other key suggestions included-exemption of Internal Credit Rating done by banks up to INR 1 crore for Stand-Up India scheme, providing additional input credit to large companies to incentivize invoice settlement through TReDS, easing of procedural requirements and compliances for e-commerce exports done by MSMEs and setting up a One Stop Portal for information dissemination on cross border e-commerce. 

The Workshop was jointly organized by the Ministry of MSME and Capacity Building Commission at Kaushal Bhawan, New Delhi on Wednesday. It showcased best practices in access to credit by MSMEs, and sharing of government policies and banking SOPs regarding access to credit by MSMEs. It was attended by representatives from MSME associations, Industrial bodies and banks.

(KNN Bureau)