Government to contribute 10% of funds for MSMEs in stock market, says Nitin Gadkari
New Delhi, Sep 25 (KNN) To boost Micro, Small and Medium Enterprise (MSME) sector in India, the central government is cosidering to contribute 10% of funds to the small companies looking to raise equity capital through capital markets, Union MSME Minister Nitin Gadkari said on Tuesday.
“The government will contribute 10 per cent to the companies who enroll themselves in the capital market and stock exchange to raise equity,'' Gadkari said at 16th Global SME Summit in Delhi.
The Minister said his Government’s target is to increase MSME’s present share of 29 per cent of GDP to 50 per cent in next five years and raise its export contribution from 49 per cent to 60 per cent . To achieve these targets logistics, power and capital cost will need to be reduced.
For cheaper capital, the Ministry is in talks with ADB, KfW and World Bank for their credit line. 200 SMEs are registered on the stock exchange, and the Minister is urging more companies to register.
The problem of delayed payments to MSMEs is also being looked into and Gadkari and added that the UK Sinha Committee Report will soon be implemented.
Calling for domestic and foreign investment and collaboration in the sector, Gadkari said that the MSME sector in India has tremendous potential to push growth and generate employment. He said the government’s priority is for an integrated development of the rural and agro based enterprises along with the urban based enterprises.
Opportunities abound in development of honey, bamboo, textiles, bio-fuels, water transport, fisheries, dairy, food processing in the rural areas and ancillary units of defence, railways, highways, waterways and other industries in the urban areas, he said, and appealed to investors to come forward for investment and collaboration.
For lowering cost of power and logistics the Minister pointed to the necessity of energy audits and energy efficient technologies. He said roof top solar plants will be provided to MSMEs with KfW support. He also said that the use of water transport can reduce logistic cost.
Gadkari further said that our Ministry will soon launch a new E-Commerce website ‘Bharat Craft’ to enable MSMEs to sell their products in local as well as international markets
Meanwhile, speaking on the occasion Secretary, MSME Ministrt, Arun Kumar Panda informed that the Ministry is in the process of developing a digital MSME portal which will work as a virtual meeting place for all stakeholders of the sector. For the over 75 lakh MSMEs currently registered with the Ministry, this will provide a platform where they can interact globally to fulfil their requirements for funding, knowledge, technology, skilling and marketing, making them more competitive and integrated with the global value chain. He also emphasized on the need to enhance manufacturing competitiveness of entrepreneurs, and said that we are in the process of opening new 135 new Tool Rooms & Technology centres to develop the skill of the entrepreneurs.