Tag: MSMEs in India

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MSME

Bank of Maharashtra Aims To Resolve About 25 Stressed MSME Loans Under Pre-Packaged Insolvency Resolution Process

Mumbai, April 24: In a bid to help the stressed micro, small and medium enterprise (MSME) sector, the State-owned Bank of Maharashtra is looking out to roll out a plan at resolving 20-25 stressed MSME accounts under the pre-packaged insolvency resolution process. The news was announced by a senior bank official, a report by PTI said. Earlier this month, the government had introduced a pre-packaged insolvency resolution process for stressed MSMEs by amending the insolvency law.

With the coronavirus pandemic, several sectors have taken a major hit. Bank of Maharashtra’s general manager (credit – large and mid-corporate, MSME) Sanjay Rudra said with the outbreak of the COVID-19 crisis, the stress on hospitality, luxury retail, tour operators, lodging and restaurant operators has increased considerably. “I expect around 20-25 stressed MSME accounts to be resolved under the pre-packaged insolvency resolution regime in the coming months,” he said.

Rudra said this during a webinar organised by MVIRDC World Trade Center, Mumbai and All India Association of Industries.

Here’s how to stressed MSME would benefit:

  1. Under a pre-packaged process, main stakeholders such as creditors and shareholders come together to identify a prospective buyer and negotiate a resolution plan before approaching the National Company Law Tribunal (NCLT).
  2. Rudra said under the pre-packaged insolvency resolution system, the government has given an opportunity for MSMEs to resolve their stress at an early stage while holding control over their business.
  3. “Now, MSMEs should maintain complete transparency in the whole resolution process to regain trust and confidence of lenders,” Rudra said.

Meanwhile, AZB & Partners cofounder Bahram N Vakil said MSME promoters should file for resolution with the NCLT only after having a robust base plan. According to a report by PTI, Vakil said that if the promoters could come out with a resolution plan with a minimum possible haircut for operational creditors and if it is also acceptable to the committee of creditors, then the chances of such plans being challenged in the Swiss challenge auction are less.

 

 

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MSME

Women-Led MSMEs To Get Major Boost As IFC Proposes To Lend Loan Up to $150 Million to Bajaj Finance

Women Entrepreneurs in India (Photo Credits: Pixabay)

Chennai, April 23: In a bid to boost the startup ecosystem in India and help the women-led MSMEs in the country, the International Finance Corporation (IFC) part of the World Bank Group has proposed to loan up to $150 million to Bajaj Finance Ltd.

Under the new initiative, Bajaj Finance will increase its lending to MSME segment to about $600 million. According to details by IFC, the proposed $150 million senior loan for up to five years to Bajaj Finance will enable the company to expand its lending to micro, small and medium enterprises (MSME) and women-owned MSMEs.

Bajaj Finance, which is headquartered in Pune is part of the Bajaj Group,  which is the third-largest non-banking finance company (NBFC) in India. The firm has $4.9 billion equity base and $22.3 billion asset base as of December 31, 2020, IFC said.

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MSME

MSME Sector will Battle Ongoing COVID-19 Wave with Conviction & Lead India to Positive Growth Trajectory, Says Union Minister Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

Union MSME Minister Nitin Gadkari has said that he is confident that the firms in the micro, small and medium sector will fight the second wave of coronavirus pandemic with conviction, leading the country to a positive growth trajectory. Gadkari also added that the MSME sector battled the first wave of COVID-19 outbreak with great resilience and came out with strong growth projections.” MSMEs in India: Govt Aims To Raise MSME Sector’s Share in GDP to 40% From the Current 30% To Benefit Rural Poor, Says Nitin Gadkari.

Union MSME Minister said, “As a country, we battled the first wave of COVID-19 with great resilience and came out with strong growth projections. And I’m confident in the ability of the industry and MSME sector to battle the ongoing wave with similar conviction and lead India to a positive growth trajectory.” MSME Sector in India Has Huge Potential To Become World’s Largest Manufacturing Hub, Says Nitin Gadkari.

While addressing an event organised by the Amazon India, Nitin Gadkari said that the Indian MSMEs have a great opportunity of getting integrated with the global supply chain as various countries across the globe are looking to diversify their supply chain out of China.

He added that to enhance the competitiveness of the Indian MSMEs, both on national and global level, technology is a critical factor. “We need to ensure that digital transformation of India’s MSME sector takes place that enables them to capitalise on India’s current opportunity,” said Union MSME Minister Nitin Gadkari.

In May last year, amid the coronavirus pandemic, the government had introduced an Emergency Credit Line Guarantee Scheme, to help the struggling MSMEs back on their feet. This scheme was a part of the Rs 20 lakh crore package that was brought forward and executed by our finance minister Nirmala Sitharaman to repair the damage that has been done to this sector in the light of COVID-19.

Nitin Gadkari had earlier said that contribution of the Micro, Small and Medium Enterprise sector in the overall Indian economy, the coming years, will be enhanced to 40 per cent. Currently the firms in the Micro, Small and Medium sector contributes around 30 per cent in the overall gross domestic product in the country. Nitin Gadkari added that the works to increase export from the firms in MSME sector are in progress.

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MSME

Centre Committed to Promote Renewable Sources of Energy, Especially in MSME Sector, Says Union Minister Nitin Gadkari

Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)
Union MSME Minister Nitin Gadkari. (Photo Credit: PIB)

The government and its various enterprises have taken several initiative to promote and develop the micro, small and medium enterprises. Several schemes and programmes have been implemented with the aim to boost the MSME sector in the country and improve its competitiveness at par with the global competitors. There are have certain steps undertaken by the Nitin Gadkari-Led Union MSME Ministry to reduce the cost of operations and increase the efficiency of its functioning. At a recent event, Nitin Gadkari said that the government is committed to promote the use of renewable resources in the country, especially for the enterprises in the micro, small and medium sector. MSMEs Should Avail Concessional Finance and Install Rooftop Solar System to Increase Business Efficiency, Says Union Minister Nitin Gadkari.

Addressing a webinar, Union Minister Nitin Gadkari said that the firms in the micro, small and medium sector with good track record are now being encouraged for capital market. Gadkari added there exists a huge opportunity for investment in scrapping policy. The MSME Minister also invested foreign investors to invest in the Indian MSMEs and expressed hope that it will drive the sector to become the world’s largest manufacturing hub, by providing numerous opportunities.Union Minister Nitin Gadkari Inaugurates Technology Centres, Extension Centres To Boost MSME Sector.

He also promoted the use of solar energy for the micro, small and medium firms in another recent event. Gadkari had earlier urged the MSME owners to install rooftop solar for enhancing the efficiency of the firm and bring down the cost of operations substantially. He had said that the roof top solar system offers an excellent value proposition to Micro, Small and Medium Enterprises by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost. He also asked the people in the sector to avail concessional debt finance to do the same.

“I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops,” Union Minister Nitin Gadkari had said while addressing an event virtually earlier this month.

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MSME

MSME Sector in India Has Huge Potential To Become World’s Largest Manufacturing Hub, Says Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, March 13: Union Minter Nitin Gadkari on Saturday said that the micro, small and medium enterprises (MSMEs) sector in India has a huge potential to become the world’s largest manufacturing hub. During a webinar on ‘Aatmanirbhar Bharat – Opportunities in Solar & MSME’ on Friday, Gadkari said that the government is committed to promoting renewable energy resources in the country, especially in the MSMEs sector.

The Minister, who holds the MSME portfolio along with road transport, said by making solar energy available, “we will create big market for electric vehicles”.  He said that the solar power rate in India is Rs 2.40 per unit and commercial rate of power is Rs 11 per unit and the cheap power generated through solar energy can be used for automobiles and other developmental works.

He expressed confidence that within five years, India will be a top manufacturing hub for automobiles in the world. While speaking about the businesses in India, the minister highlighted that India has tremendous potential and capacity for electricity generation. Gadkari invited investors abroad to invest in Indian MSMEs.

During his address, he expressed hope that this will provide a number of opportunities to the MSME sector in the country to become the world’s largest manufacturing hub. Talking about the growth of MSMEs in India, Gadkari said that the MSMEs with good track record are now being encouraged for capital market, adding that there exists a huge opportunity for investment in scrapping policy.

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MSME Startup

Piyush Goyal Tells BIS To Cut Quality Testing Charges for MSMEs, Startups and Women Entrepreneurs in India To Encourage Ease of Doing Business

Women Entrepreneurship (Photo Credits: Pexels)

In a bid to encourage MSMEs, startups, and women entrepreneurs in India, the charges for testing quality of products should be reduced, Food and Consumer Affairs Minister Piyush Goyal said. The Minister said that once the charges are minimised, it will help them to get their products certified and meet standard norms. Goyal said this at the 3rd Governing Council meeting of the Bureau of Indian Standards (BIS). During his address, Goyal said that there is a need to change the approach of the country towards standardisation and instructed BIS to create a customer charter to usher in highest transparency in its certification process and inspections.

The Minister added saying that the fee for testing of standards should be reduced drastically ‘throughout’ for the MSMEs and in the initial years for the startups and for women entrepreneurs. Goyal said that this will encourage them to get their products certified and also encourage the ease of doing business. During his address, Goyal said that it is a challenge for BIS to fast track the standard setting processes, especially for these programmes of national priority.

BIS must therefore ensure that its technical Committees develop the required new standards in the quickest possible time for products where presently none exist, or review and revise existing standards whenever required, the minister said. Goyal reviewed the process of making Indian Standards and their implementation with officials from BIS, different ministries and regulators, among others.

Goyal directed the BIS to go in for massive expansion and modernisation of testing labs so that entrepreneurs don’t have to travel far to get the testing and certification of standards. Talking about PM Narendra Modi’s mantras for economic development, Goyal said, “Prime Minister Shri Narendra Modi has given the three mantra for faster economic development i.e. Speed, Skill and Scale. Now it is time to add fourth dimension of ”Standard” in to this”.

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Startup

Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses

Startup
Startup (Photo Credits: Pixabay)

New Delhi, February 20: In a bid to extend the exclusive credit facility to Startups and MSMEs in India, state-owned Indian Bank has inked an MOU with the Society for Innovation and Development (SID), an initiative of the Indian Institute of Science. Under the pact, the Indian Bank will extend loans of up to Rs 50 crore to these startups for their working capital requirements or for the purchase of machinery, equipment among other things.

This initiative is a part of the Banks scheme Ind Spring Board for financing Startups and will empower Startups and MSMEs to realise their research efforts powered by financial support from the Bank and backed by incubation facilities offered by SID, it said in a release.

In its statement, the Bank said that SID is the forerunner in setting up joint R&D with industries and supporting start-up incubation, the bank said, it provides support to the MSME sector by providing joint research and development arrangements and technical and financial support for incubation and acceleration of high-end technology products under its department named TIME2. (Technology Innovation for Midsized Enterprises).

Under the MOU, SID will identify the start-ups and MSMEs based on their credentials and past experience and will refer the list of such members who require financial assistance to the Bank, it added.

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MSME

Tamil Nadu Unveils New Industrial, MSME Policies To Boost Industrial Growth and Create Employment in the State; All You Need To Know About the New Policies

Chennai February 17: With an aim to boost industrial growth by attracting more investments, the state government of Tamil Nadu launched new industrial and MSME policies. The new policies are aimed at providing further impetus to the growth of industries in the state by attracting more investments and also offering sops for development in the industrially backward districts. Tamil Nadu  Chief Minister K Palaniswami launched new industrial and MSME policies on Tuesday. Under the new Industrial Policy 2021, the Tamil Nadu government targets to attract Rs ten lakh crore investments in four years and create employment opportunities for 20 lakh people by 2025 in the state.

All you need to know about the new MSME policies in Tamil Nadu:

  1. The MSME (Micro, Small & Medium Enterprises) Policy targets new investments worth Rs 2 lakh crore and job opportunities for 20 lakh people by 2025.
  2. The Chief Minister said that the MSMEs capital subsidy will be increased to Rs 1.5 crore from the present Rs 50 lakh, adding that the state has attracted a total investment of Rs 6.85 lakh crore in 10-year period.
  3. Apart from achieving an annual growth rate of 15 percent in the manufacturing sector during the policy period, the policy has set a target to increase the contribution of the manufacturing sector to 30 percent of Gross State Value Added (GSVA) by 2030.
  4. The scope of projects extends to industrial units, sunrise sectors, R & D projects, industrial park developers, warehousing and logistics, and FDI investments (relocation projects).
  5. Among the numerous benefits, the policy encourages investors to choose their structured incentive package model providing higher flexibility Apart from encouraging balanced regional industrial development, it encourages higher participation of women, differently-abled, and transgenders in the workforce, according to the policy document.
  6. Speaking on the occasion, the Chief Minister said the Industrial Policy would further reinforce Tamil Nadu as an ideal global investment destination while the MSME policy would give a further fillip to entrepreneurs in the next five years.

Adding further, Palaniswamai said that several concessions including land at 50 percent discounted price, will be provided to the entrepreneurs starting ventures in the 22 industrially backward districts, including the southern districts, Dharmapuri, Perambalur and Nagapattinam.

Meanwhile, the chief minister laid foundation stones for six industrial estates of TANSIDCO in various districts that would help generate employment to 13,300 people, besides SIPCOTs four new industrial parks on an extent of 3,977 acres at Manapparai, Manallur, Oragadam, and Dharmapuri.

As many as eight completed projects were inaugurated eight with an investment of Rs 3,377 crore and employment potential for 7,139 people, an official release said. Totally 46 projects for an investment of Rs 33,465 crore that would ensure jobs to 2,19,714 people were launched.

Also, MoUs for 28 projects entailing an investment of Rs 28,053 crore were signed, it said. These projects, including a Rs 4,684 crore project to manufacture mechanical enclosures for mobile phones by Tata Electronics project in Krishnagiri, announced earlier will create employment for 68,775 people, the release said.

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MSME

MSMEs in Haryana Get Major Boost! Products Manufactured by MSMEs in the State To Get Global Market, Talented Artisans To Benefit

Clothing Business

Chandigarh, February 11: The products manufactured by the Haryana MSMEs will now get the global market as the Haryana government signed pacts with three companies on Thursday. The news was informed by Haryana Deputy Chief Minister Dushyant Chautala. The Minister, who also holds the industries department portfolio, said artisans producing traditional handloom products of the state will also get a reasonable price for their craft. The Deputy Chief Minister said the signing of MoUs with three companies of international and national level by the MSME department is a step towards ‘Atmanirbhar Bharat’. The pact will give a boost to the MSMEs of the state as well as to the talented artisans.

The pacts with ”eBay”, Power2SME”, India’s first ”buying club” for SMEs and TradeIndia.com, price and product discovery platform, was signed by Haryana MSME Department Director General Vikas Gupta and the representatives of the companies. The memoranda of understanding (MoUs) by Haryana’s Micro, Small, and Medium Enterprises (MSME) Department with three companies was signed in his presence, a state government statement said. Industries and Commerce Department Principal Secretary Vijayendra Kumar was also present on the occasion.

  • The products being manufactured by the MSMEs of the state will now be able to be purchased in any corner of the world; this will also increase the export of our country.
  • Haryana government’s primary focus is to promote entrepreneurship, to enhance inclusive and balanced regional development in the state.
  • The strategic collaboration will help MSMEs, artisans in remote parts of the state, to overcome challenges restricting their access to domestic and international markets. This will not only give a boost to sales of existing entrepreneurs but also create unprecedented opportunities for new entrepreneurs.
  • Through this initiative, we are aiming at significantly enhancing visibility of indigenous and specialised products from the state, be it industrial products, or traditional handicraft products, and further strengthening ”brand Haryana”.

Chautala said these MoUs will also create unprecedented opportunities for new entrepreneurs. On the occasion, Kumar said MSMEs are becoming the backbone of the economy. He said the state government is committed to strengthening the existing ecosystem of over 2 lakh MSMEs in the state. Chautala said that in the current competitive era, it is important for MSMEs to adopt new and strategic approaches and added that e-commerce has the potential to take MSMEs to new markets. Gupta said the directorate of MSME is providing all possible help to its entrepreneurs so that they can generate good income from their enterprises and more youth can get employment.

Gupta said the directorate of MSME is providing all possible help to its entrepreneurs so that they can generate good income from their enterprises and more youth can get employment. He added that this pact will help our MSMEs transcend geographic boundaries and reach out to newer markets. “We look forward to creating impact and generate larger market opportunities for our MSMEs.”

He added that this pact will help our MSMEs transcend geographic boundaries and reach out to newer markets. “We look forward to creating impact and generate larger market opportunities for our MSMEs.”

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MSME

MSMEs in India: Govt Aims To Raise MSME Sector’s Share in GDP to 40% From the Current 30% To Benefit Rural Poor, Says Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, February 7: Union Minister Nitin Gadkari said on Saturday said that the government aims to increase the MSME sector’s share in the GDP to 40 per cent to benefit the rural poor. At present, around 6.5 crore micro, small and medium enterprises (MSMEs) contribute 30 percent to the GDP. While addressing a workshop at the Mahatma Gandhi International Hindi University at Wardha in Maharashtra, Gadkari emphasised that a policy has to be made to empower the poor.

The MSME Minister added saying that village industries and Khadi generate as much as Rs 88,000 crore on an annual basis. “We are not in favour of westernization, but we are in favour of modernization, in the villages. This is the time for socio-economic transformation”, Gadkari said. He said this can be increased if policy is flexible and innovative, and is aimed at improving the life of people living in villages. The minister also stressed that goods produced by village industries can be sold better if they are marketed better.

Gadkari stressed on the point that migration of as much as 30 percent of the country’s population from rural areas has taken place since independence due to lack of growth of the village economy. Gadakri recalled the philosophy of Mahatma Gandhi, Vinoba Bhave, Pandit Deendayal Upadhyaya, Ram Manohar Lohia and Jayaprakash Narayan and said that their aim was the same – to improve the lives of the poor living in villages. “Unless solutions are found to ensure that employment is generated in villages, and they are clean and have enough facilities, the dreams of these leaders will not be fulfilled”, he said.