Rajasthan MSME Finance Summit 2018 organized by FICCI Rajasthan

Posted On Thu, October 04, 2018, 6:00 PM

Jaipur: MSMEs have been contributing significantly to the expansion of entrepreneurial endeavors through business expansion and therefore MSME Finance sector is the backbone of our economy. Against this backdrop, ‘Rajasthan MSME FINANCE SUMMIT 2018’ was organized today by FICCI at Hotel Royal Orchid, Jaipur. The event focused on how MSME can have easy access to credit during various stages of its development to realize its full potential.

Praising FICCI for being active for the MSME sector, Shri Ramcharan Bohra, Hon’ble Member of Parliament said that Hon’ble Prime Minister Shri Narendra Modi has been serious to promote MSMEs in the country and therefore both State and Central Government are very active in this sector. He further stated that after agriculture, MSME is the second biggest employment generating sector in the country. He also elaborated about the web portal launched by Mr. Arun Jaitley, Finance Minister for the easy availability of credit for MSME sector wherein the web portal will enable in principle approval of MSME loans upto Rs. 1 crore within 59 minutes, the same will be distributed in 7-8 working days. The credit will be provided by SIDBI and 5 public sector banks.

Welcoming the guests, Mr. Atul Sharma, Head, FICCI Rajasthan State Council said, “Though the Central and State Government have come out with various MSME Financing schemes, MSMEs still find difficult to meet the short term and long term finance requirements. It is important that they should be given access to easy and affordable finance so that they could perform as per their potential.

Addressing the house, Mr. Pramod Kishore Pradhan, General Manager, Financial Inclusion & Development, Reserve Bank of India said, “MSME has played an incredible role in the development of India and this will also be a carrier for future growth in the country. Currently there are 5 crore and 13 lakh MSME working units and this has given a direct employment to 11 crore 12 lakh people, so one can easily understand how this sector is integral part of our economy.” He also stated that Government is proactive in regard to MSMEs development and this is why programmes like ‘Make In India’, ‘StandUp India’ and ‘StartUp India’ etc. are being implemented in the country. He further stated that RBI time and again issues rules and regulations for easy loan availability for MSMEs and looking at the intensity of the subject, bankers are trained for the same at regular intervals and RBI takes serious actions if a bank seems non-serious about the cause of MSMEs.

Speaking on the occasion, Mr. Rajneesh Singhvi, Chairman, Sub Committee on MSME FICCI Rajasthan State Council said, “FICCI has always been proactive in raising and addressing the issues of MSMEs which hamper the seamless growth of the MSME units. FICCI through its MSME committee puts across its views and suggestions to the Government to bring the real industry issues related to MSMEs on the table.

Taking more about MSMEs, Mr. N.K. Jain, President, The Employers Association of Rajasthan said, “The central government has been focusing on MSME sector more than ever before as the government has increased the overall budgetary allocation by 59% for 2018-19. The government has taken several key initiatives to make MSME sector stress free by bringing about changes in the law. Ministry has also increased the collateral free loan under credit guarantee scheme in micro and small enterprises from Rs. 1 crore to Rs. 2 crore and risk cover percentage has also increased to  50% to 75%. The government has also increased the corpus fund from Rs. 2500 crore to Rs. 7500 crore and from 2018-19 onwards it will be above Rs. 8,000 crore to provide better fund availability for MSMEs.”

Discussing on the issues and solutions for the credit flow to MSMEs, Mr. Balbir Singh, General Manager, SIDBI highlighted various SIDBI initiatives regarding giving loans to SMEs. He also elaborated SIDBI Make in India soft loan fund for Micro, Small & Medium Enterprises (SMILE). He informed audience about the enhancement of credit guarantee scheme for MSMEs for loans upto Rs. 2 Crore.

While addressing the gathering, Mr. Saikat Roy, Director & Head, SME CARE Ratings Ltd. said that we should have risk return. MSME loans are priced at 14-15% which is a basic problem and banks are looking at solvency for their money security. He also said that MSMEs have higher tax level and their profitability is low. He also talked about the various risks including Financial Risk, Management Risk, Industrial Risk and Business Risk also provided solutions for these risks saying that we need to increase the eco India step.

A panel discussion on Credit Flow to MSMEs: Issues and Solutions was organized where Mr. K.K. Gupta, Director, Resurgent India Ltd.; Mr. Balbir Singh, General Manager, SIDBI; Mr. N.K. Jain, President, The Employers Association of Rajasthan, Mr. Saikat Roy, Director & Head, SME CARE Ratings Ltd. and Mr. Rana Vikram Anand, President, Indifi Technologies Pvt. Ltd. talked about the various issues in financing the MSMEs and their solutions while the session on Financial Instruments for MSMEs witnessed Mr. Rajneesh Singhvi, Chairman, Sub-Committee on MSME FICCI Rajasthan State Council; Mr. Sristiraj Ambastha, Regional Manager, ECGC Ltd.; Mr. Amul Verma, Asst. Vice President & Regional Head, The Lakshmi Vilas Bank Ltd.; Mr. Nitin Jain, Co-Founder, OfBusiness and Mr. Vinod Kumar Singla, Deputy General Manager, SME, State Bank of India talk about various financial instruments for MSMEs.

Around 125 participants took part in the summit. A report on ‘Key To SME Growth’ was also launched during the summit. 

This press release is posted under categories Business

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