Funds for MSMEs under-utilized: RK Mathur | SupportBiz

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Funds for MSMEs under-utilized: RK Mathur

India's 12th Five-Year Plan is still in the process of finalization and the MSME Ministry is open to new ideas, said RK Mathur, Secretary of the Ministry for Micro Small Medium Enterprises. Mathur is enthusiastic about the growth trajectory of this sector but highlighted some critical issues dogging the sector. On the sidelines of the National Summit on Energy Efficiency in Micro, Small and Medium Enterprises, recently organized in New Delhi, the secretary pointed out some critical challenges that the MSME segment faces.

Mathur said: "At the government level, we understand the challenges and opportunities that this segment is facing. The Government of India has initiated several schemes including 10 under the National Manufacturing Competitiveness Program. We understand the role of technology in today’s business, so we have Technology Upgradation Fund scheme for the MSMEs which want to enhance their level of business through newer technologies. There are several other schemes for MSMEs in the food processing, leather, textiles and garments, automotive and several others. There is also Green Loan scheme from SIDBI which motivates organizations to adopt green and eco-friendly technologies and methods for their business operations.”

Having said this, the secretary admits that funds under these schemes are not adequately utilized.

“The 12th Plan proposes around INR3,000 crore for supporting MSMEs in technology acquisition. The effective utilization of these funds requires synergy among agencies like TERI, SDC, and through initiatives like SAMEEEKSHA. Infact, awareness is needed and I believe that we are moving towards the right direction.” Mathur commented.

Above all, the major need of the hour from the perspective of Indian MSMEs is understanding the ground level issues that MSMEs are facing with regards to technology, finance. Policy makers should come forward and address them, he asserted.

For MSMEs to become successful in their roadmap they need a supporting hand and positive business environment. Although the policy makers, Government and every stakeholder of Indian MSMEs are trying to create this kind of positive business environment but a strong synergy between all the stakeholders is required.