Govt to buy 10 per cent bonds to support MSMEs, says Nitin Gadkari
New Delhi, Nov 13 (KNN) Union Minister for Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari has said that the government would buy 10 per cent of the bonds issued by the MSMEs to support them in dealing with the capital market.
''Now thousands of companies are in the queue and they are going for capital market. Suppose, they are going to raise the bond issue through capital market, 10 percent will be purchased by the government. We are giving them support," he said while addressing International Women's Entrepreneurial Challenge Foundation recently.
"MSMEs account for 49 per cent of the exports from the country. We are planning new schemes to support the MSMEs that have good potential for exports. If they raise bond issue in the capital market, 10 per cent will be purchased by the government," he added.
The government is working on backward integration to develop rural industry and create employment, he said, adding that the employment potential is 11 crore.
The minister further suggested that having an Indian partner would help navigate the regulations in the country and benefit from various government schemes and incentives present in different sectors.
Reportedly, Gadkari also informed that ministry is in the process of formulating a policy on credit ratings for micro, small and medium enterprises (MSMEs) to help investors and other players take an informed decision.
''We are going to start a digital data-based credit rating system which will help to provide information about the MSMEs. That can be more easy for taking any decision because the rating is now very important. So, now, we are formulating the policy and we are going to make some scheme for them and that will be very useful," he added.
He aslo said that India has huge potential both in rural areas and big cities, and the government will extend all support to those wanting to start manufacturing here.