MSME

Food Processing Sector to get its own Bank

With the food processing sector facing problems in accessing credit, the government is all set to launch a dedicated financial institution for the industry. Due to the high risks involved, the food processing sector finds it difficult to access credit for various projects.The new financial institution could provide specific products for food processing projects with an easy repayment schedule that could give a boost to the small and medium enterprises sector.

According to PTI, Food Processing Secretary Jagdish Prasad Meena said the corpus for the non-banking financial institution — tentatively called the agro-processing financial institution — will be Rs 2,000 crore with the government contributing 20% or Rs 400 crore.
The government is ready with the draft policy on ‘Operation Green’ scheme which will be launched next month. Under this scheme, a group of farmers would be encouraged to form clusters in key growing areas to boost production and marketing of tomato, onion and potato said Harsimrat Kaur Badal, Union Minister fir Food Processing Industries while addressing the Press Conference.

YES Bank launches MSME scale-up series to up-skill MSMEs

With the aim to boost MSME business, Yes bank has recently launched MSME ‘Scale-up’ series, a unique Industry-Academia collaboration to skill up MSMEs. The initiative is aimed at boosting MSME business by educating them on latest manufacturing technologies, global best practices and innovative finance management. Here Yes bank will work with MDI (Management development Institute) Gurgaon as its Training Partner and Spark Minda, a global entity in automotive components.
YES Bank has been working closely with MSMEs across India to handhold them in scaling up operations to become globally competitive, under its flagship MSME initiative ‘Say YES to Sustainable MSMEs in India’. Last year, the bank launched ‘YES GST program’ to help MSMEs understand the impact of changes and prepare them for migration to the new GST tax system. Till date, the bank has conducted 112 awareness workshops, thereby impacting 9,500 MSMEs through the program. Besides this, the bank recently launched YES GST, an industry first GST backed over draft facility for MSMEs, for faster and hassle free access to working capital finance.

Odisha registers 20 Startups every month

In a major boost to state startup initiative, Odisha state government has been recognizing 20 startups every month, flying higher than the national average, said Additional Chief Secretary (ACS), Micro Small and Medium Enterprises LN Gupta. At present, these are providing employment to around 2,000 people, he further added. Around 30 startups in Odisha have been provided various benefits like monthly allowance, product development assistance, need-based assistance, reimbursement of expenses and one-time matching capital grant, he said.

The state has also approved three new nodal agencies, financial assistance for two new incubators and need-based assistance for two new ventures The state has also approved the proposal for providing financial assistance to Technology Business Incubator in NIIT, Rourkela and Technology Business Incubator in KIIT, Bhubaneswar. There are also plans to host ‘Make in Odisha’.

The Odisha government announced its startup policy in August 2016. The startup policy had aimed to set up 1,000 startups in the next five years for which the state’s MSMEs were to provide a Seed fund of $3.7 Mn (INR 25 Cr).’ conclave in November this year.

RBI trains 11k bank officers on MSME credit

Central bank has provided special training to nearly 11,000 officers at various commercial banks on lending to micro, small and medium enterprises. This training has been provided to officers working at nearly 3,000 bank branches covering all districts in India through more than 2,000 special workshops in the last three years.

These are mostly specialised bank branches catering to the MSME sector where this multi-level training has been provided, covering branch managers, senior officers and even faculty members of staff colleges who can further pass on the training to the bank employees.
Most importantly, the training exercise was executed in consultation with the government, including with the active involvement of the MSME ministry and the RBI’s objective has been to create a conducive environment to help these small entrepreneurs and companies avail easy and faster credit.
The officers have also been provided special kits to help their banks extend more credit to MSMEs.
The Micro, Small and Medium Enterprises (MSME) lending has been exempted from most of the restrictions, including those relating to the stressed assets, and several steps have been taken by the RBI to ease credit flow to this sector and to ensure their faster ‘formalisation’ to bring them on board the new GST regime that will help them further in availing the loans.
While much has been written about differences between the RBI and the government, sources said the facts and the data show there are hardly any significant issues that are being faced by MSMEs due to policy or regulatory matters.
They cited several steps taken in the recent past by the RBI, in consultation with the government, for facilitating easier access and availability of credit to the MSME sector, including the ‘Resolution of Stressed Assets-Revised Framework (RSA-RF)’ of February 12, 2018.
This framework has been carefully calibrated to exclude loans availed by MSME units up to Rs 25 crore from its purview, which nearly covers the entire spectrum of the MSME borrowers. Besides, this remains in line with the earlier government policy for the benefit of MSMEs. The average outstanding loan size of the MSMEs being 2.7 lakh, 26 lakh and 92 lakhs respectively, almost all the MSME loans are out of the purview of the February 12 circular, while the earlier ‘specially carved out’ rectification process for the MSMS sector remains in force that remains borrower-driven.
The officials also pointed at inclusion of a separate sub-target of 7.5 per cent under Priority Sector Lending for the micro sector and said the target has been achieved by most banks, including those facing ‘prompt corrective action’.
Now, this target has also been made mandatory for foreign banks with 20 or more branches in India.
Besides, caps have been removed on loans to MSMEs to encourage banks to go beyond the earlier limits in such lending.
To ensure timely availability of funds to the MSME sector, the RBI has also facilitated the setting up of Electronic Bill Factoring Exchanges in the country. These exchanges provide for swift discounting of MSME bills and help MSMEs raise funds without delay.
The Non-Performing Assets norms have also been relaxed for the MSME sector to help them cope up with challenges following implementation of new reforms.

How MSMEs can benefit through the Forex market

For many MSMES in the country, operating overseas has become a norm since the wave of globalization kicked in during the latter part of twentieth century. As information and communication technologies boosted connectivity among nations and MSME industries, hosts of enterprises started expanding their boundaries to begin businesses in different parts of the world. Lesser availability of raw materials and human capital at home, high cost of transportation, political instability and a limited home market necessitated some companies to set camp outside national borders.

For many MSMES in the country, operating overseas has become a norm since the wave of globalization kicked in during the latter part of twentieth century. As information and communication technologies boosted connectivity among nations and MSME industries, hosts of enterprises started expanding their boundaries to begin businesses in different parts of the world. Lesser availability of raw materials and human capital at home, high cost of transportation, political instability and a limited home market necessitated some companies to set camp outside national borders.

Invitation to Sh. Manoj Sinha for 9th. INDIA INTERNATIONAL MSME EXPO-2023

Deligation of MSME Dev.FORUM met Sh. Manoj Sinha

Deligation Of Msme Development Forum Met Sh. Manoj Sinha Hon’bl Lieutenant Governor Of J&K On 24.1.23 At His Residence In Jammu To Invite Him To Participate In 9th. India International Msme Expo-2023 Being Held In August, 23 At Pragati Maidan, New Delhi. He Confirmed Participation. 

Meeting With Defence Minister – Sh. Rajnath Singh

Rajnath Singh expressed involvement in promotion of MSME Sector

Defence Minister of India Sh. Rajnath Singh expressed his keen involvement in promotion of MSME sector and apprised about several schemes being initiated by Ministry of Defence for its promotion. He also encouraged us to exploit opportunity for promoting bilateral MSME business with Russia. He confirmed participation of Defence Ministry in 9th. MSME EXPO being held in Aug.2023.