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11/08/2020 02:23pm

Cooperative bank borrowers to be allowed to access MSMEs Credit Guarantee Scheme

image Cooperative bank borrowers to be allowed to access MSMEs Credit Guarantee Scheme

New Delhi, Aug 11 (KNN) The central government will include Cooperative banks as lenders for Micro, Small and Medium Enterprises (MSMEs) under Emergency Credit Line Guarantee Scheme (ECLGS).

Addressing a webinar on ‘FICCI-SBI Atmanirbhar MSME Virtual Conclave’, Gadkari said, ''Cooperative banks that are not included as a member lending institution under the Emergency Credit Line Guarantee Scheme (ECLGS) will be included as lenders for MSMEs, under a scheme being discussed in consultation with the RBI.”

While urging the states to release payments due to MSMEs within 45 days, Gadkari said, “this will help bring liquidity, which will accelerate the economic growth of the country.

The minister emphasized that special focus towards export enhancement is the need of the hour, and there is also a need to focus on import substitution to replace imports with domestic production. He further urged the industry to identify the sectors heavily reliant on imports, particularly from China, and look for substitutes towards indigenous production to make India Atmanirbhar.

He further stated that the government aims to increase MSMEs’ contribution to 50 per cent of GDP and share of exports to 60 per cent which will help the sector create 50 million jobs in the next five years. 

“The government is formulating a special policy to generate employment in the rural areas and aims to increase the turnover of village industries and encourage medium scale units such as ago and food processing industries, handloom, and handicrafts,” he added.

On the other hand, Jagadish Shettar, Minister of Medium & Large-Scale Industries, Government of Karnataka said, “The new Industrial policy of the Karnataka State Government for 2020-25 will be pro-industry and aligned with reshaped reforms.”

Highlighting that Karnataka is a conducive place for industries to grow, he said that the state provides the right infrastructure support across industries, and the reforms by the government of India will provide the much-needed support to the MSME sector. 

“Home to several industry specific SEZs and innovation parks, Karnataka also provides the right kind of infrastructural support, across industries. A robust supply chain network ensures resources are never a problem. The cluster-based development approach unveiled by the state would give much needed economies of scale for companies who would like to invest in selected sectors. The FMCG cluster, the defence cluster etc are going to have great impact in the industrial development of the state” he said.

''We are hopeful that the state policies along with the series of historic measures brought out by the Government of India would help the industry and particularly the MSME sector with several important support schemes,'' he added.

He also said that the Atma Nirbhar schemes have brought back the much-needed momentum to the manufacturing process and we are certain that in the coming period as we come out of the current crisis, the economy would be able to bounce back with robust growth and momentum.

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