President calls for easy financial access to MSMEs
Updated: Apr 03, 2013 05:31:10pm
New Delhi, Apr 3 (KNN) President Pranab Mukherjee today underscored the need for “unfettered” growth of the micro, small and medium enterprises, stating that financial institutions should increase their reach to industrial clusters.
Giving away the National awards for excellence in MSMEs, the President said, “The growth potential of the MSME units should not be impeded by lack of access to financial resources.”
He said while the categorisation of the MSME units on the single criteria of investment in plant and machinery or equipment – ceiling of Rs 10 crore, Rs 5 crore and Rs 25 lakh for medium, small and micro enterprises respectively in manufacturing sector and Rs 5 crore, Rs 2 crore and Rs. 10 lakh for these classes of units in services sector – was necessary to channelize incentives, “We must be watchful that this does not disincentivize firms from growing beyond the threshold.
“Growth of firms is best achieved if allowed to grow unfettered. Perhaps, a calibrated approach to the growth of our MSME units may be prudent for the long term,” Mukherjee said.
The President presented awards to as many as 108 entrepreneurs and bankers. They included Gujarat based business woman Sangita Shrinand Palshikar of SKP Bearing Industries, Nirmal Rani of Viking Tanners in Haryana and Mohan Suresh who owns Technospark Industries in Karnataka.
While the public procurement policy which mandates Central Government ministries and public sector undertakings to procure at least 20 per cent of their annual purchases from the micro and small enterprises would address the marketing concerns of this sector , market development assistance - trade fairs, packaging technology, bar coding and standardization is more important. The effort in this regard should be strengthened through the joint efforts of the government and industry associations.
Referring to the sensitive issue of labour reforms, the President said the legal entitlements for the country’s workforce must be aimed at greater employment generation.” Our labour laws should be able to address the contemporary business models and reflect the pragmatic rights and obligations of the employer and the employee,” he said.
He also emphasised the need for increased access to alternative sources of capital like private equity, venture capital and angel funds by the MSMEs.
Talking on the occasion MSME Minister KH Muniyappa said, “The government has substantially increased the plan allocation of the MSME Ministry from Rs 10,330 crore in the last plan to Rs 24,124 crores in the 12th plan. The refinancing capability of SIDBI (Small Industries Development Bank of India) has been enhanced from the present Rs 5,000 crore per year to Rs 10,000 crore. Further, the tax benefits can be enjoyed by the MSMEs for three years after they have grown to next higher level.” (KNN)
Giving away the National awards for excellence in MSMEs, the President said, “The growth potential of the MSME units should not be impeded by lack of access to financial resources.”
He said while the categorisation of the MSME units on the single criteria of investment in plant and machinery or equipment – ceiling of Rs 10 crore, Rs 5 crore and Rs 25 lakh for medium, small and micro enterprises respectively in manufacturing sector and Rs 5 crore, Rs 2 crore and Rs. 10 lakh for these classes of units in services sector – was necessary to channelize incentives, “We must be watchful that this does not disincentivize firms from growing beyond the threshold.
“Growth of firms is best achieved if allowed to grow unfettered. Perhaps, a calibrated approach to the growth of our MSME units may be prudent for the long term,” Mukherjee said.
The President presented awards to as many as 108 entrepreneurs and bankers. They included Gujarat based business woman Sangita Shrinand Palshikar of SKP Bearing Industries, Nirmal Rani of Viking Tanners in Haryana and Mohan Suresh who owns Technospark Industries in Karnataka.
While the public procurement policy which mandates Central Government ministries and public sector undertakings to procure at least 20 per cent of their annual purchases from the micro and small enterprises would address the marketing concerns of this sector , market development assistance - trade fairs, packaging technology, bar coding and standardization is more important. The effort in this regard should be strengthened through the joint efforts of the government and industry associations.
Referring to the sensitive issue of labour reforms, the President said the legal entitlements for the country’s workforce must be aimed at greater employment generation.” Our labour laws should be able to address the contemporary business models and reflect the pragmatic rights and obligations of the employer and the employee,” he said.
He also emphasised the need for increased access to alternative sources of capital like private equity, venture capital and angel funds by the MSMEs.
Talking on the occasion MSME Minister KH Muniyappa said, “The government has substantially increased the plan allocation of the MSME Ministry from Rs 10,330 crore in the last plan to Rs 24,124 crores in the 12th plan. The refinancing capability of SIDBI (Small Industries Development Bank of India) has been enhanced from the present Rs 5,000 crore per year to Rs 10,000 crore. Further, the tax benefits can be enjoyed by the MSMEs for three years after they have grown to next higher level.” (KNN)
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