With a view to allay the trade finance woes of micro, small and medium enterprises (MSMEs), the Union Government has planned to more than double the credit guarantee up to Rs 50,000 crore for 2018-19 under the Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE) scheme set up by MSME Ministry, a top official said at an ASSOCHAM event held in New Delhi.
“We have taken some decisions, we are allowing NBFCs (non-banking financial companies) partial collateral and this year, unlike previous years where, from fund we used to guarantee a credit flow of Rs 19,000-20,000 crore every year for last three years, we plan to cross Rs 40,000 crore, it may touch Rs 50,000 crore,” said MSME secretary Mr A.K. Panda while inaugurating an ASSOCHAM conference on ‘Role of Trade Finance.’
He also said that MSME Ministry has taken certain concrete steps as part of structural reforms and is thus expecting about four lakh such credit proposals.
To ensure credit availability to MSMEs for inclusive growth, the Ministry is also holding discussions with all banks and NBFCs and is planning that 70,000 units giving employment generation to almost 5 lakh people be taken up this year itself.
Noting that MSMEs comprise almost 95-96 per cent out of the one crore entities registered in the Goods and Services Tax Network (GSTN), the secretary said that it is more than the 47 lakh MSMEs registered under the Ministry’s Udyog Aadhaar Memorandum. Thus there is need for a database to communicate with them and to tell them about the facilities that they can avail.
“In the Ministry we are trying to work with GSTN so that we can have an integrated database where we can communicate with MSMEs if we have their details and work on the problems faced by them,” he added.