GeM and SIDBI sign MoU to enable growth of MSMEs, Start-ups and Women Entrepreneurs
New Delhi, Aug 30 (KNN) Government e Marketplace (GeM) and SIDBI have signed a pact under which they will enable promotion of special initiatives of GeM like Womaniya and Start-up Runway with SIDBI stakeholders and will also take steps to ensure payments within a guaranteed timeframe to sellers.
“GeM, Department of Commerce, Ministry of Commerce and Industry has signed an MoU with Small Industries Development Bank of India (SIDBI) to benefit MSMEs, women entrepreneurs, Self Help Groups (SHGs), Women Self Help Groups and various loan beneficiaries under MUDRA and Stand-up India scheme,” said an official release.
“GeM and SIDBI will take steps to ensure payments within a guaranteed timeframe to sellers, enhance working capital availability through bill discounting and control NPAs through control of end use,” said the release.
Speaking on the occasion, CEO GeM, Talleen Kumar, highlighted that partnership with financial institutions like SIDBI is necessary in GeM’s journey towards outreach to MSMEs, Micro Enterprises, Start-ups, Artisans, who can now also sell to Government on an open, transparent and technology-driven platform.
GeM wants to empower these sellers through the payments within a guaranteed time frame by auto-debiting GeM Pool Account, provide working capital by giving the choice of Bill Discounting to MSMEs – with only PSU banks initially, by linking cost of working capital to the performance and rating of the seller, and by providing creditors better visibility on end use of working capital loans. This will contribute tremendously to the growth of MSMEs and Start-ups.
Chairman and MD, SIDBI, Mohammad Mustafa, hailed GeM for its efforts to align SHGs, women entrepreneurs, artisans, NGOs, Start-ups and other sectors with public procurement and strengthen the existing MSME ecosystem.
While highlighting various efforts of SIDBI to ensure access to finance for MSMEs in the country, he mentioned that, the MoU would strengthen capacity building through GeM-specific training programmes of personnel from partner agencies, value-added services through networking, workshops, marketing events, awards and recognition of MSMEs with special focus on SHGs, women entrepreneurs, artisans, NGOs, Start-ups and micro enterprises.
The MoU of GeM with SIDBI is yet another step towards its growing partnership with financial institutions to enable growth of MSMEs and Start-ups in the country.