No proposal on waiver of MSME loans: Minister
Ruling out any proposal for waiving loans of micro, small and medium enterprises, Union MSME Minister Kalraj Mishra on Tuesday said his ministry has come out with a scheme for revival of sick units by providing additional assistance.
"No no. There is no proposal for waiver of loans of MSME sector," said the minister when asked about loan waiver for MSMEs on the lines of <g data-gr-id="49">agricultural</g> sector.
More than four lakh MSME units in the country had been identified as sick and there was <g data-gr-id="48">possibility</g> of reviving 35,000 units, he told reporters here.
Stating that RBI had already come out with the list of sick units, he said the ministry wanted the revival of as many units as possible without making them non-performing-assets.
The Ministry had sounded various banks, which would form a committee for identifying the units and for working out the modalities to revive them, he said.
Mishra was here to lay the foundation stone for a Centre of Excellence, proposed by Coimbatore District Small Industries Association, on the concluding day of <g data-gr-id="43">five-day</g> industrial exhibition, Intec-2015.
Clarifying on the request by the association on the need for a tool room in the city, a major MSME hub, he said the ministry had identified Chennai as one of the 15 locations to set up tool rooms during this plan period.
However, the ministry would consider sanctioning an extension office in Coimbatore so that MSME in the region could benefit, he added.
He also sought land from the association for considering setting up a Technological Centre.
Earlier in his valedictory address, Mishra said MSME sector accounted for 36 per cent of total industrial production, 40 per cent of total exports and contributed very significantly to the country's GDP.
Availability of adequate credit was always a major issue for growth and sustenance of MSME sector and the Ministry had taken significant initiatives, Mishra said.
Under the Credit Guarantee Scheme, Credit Guarantee Fund trust for Micro and Small Enterprises had facilitated <g data-gr-id="42">collateral</g> free loan to about 18.5 lakh MSMEs till March 31 last, he said.
Since <g data-gr-id="40">inception</g> of the Credit Linked Capital Subsidy Scheme for technology upgradation, 35,533 units have availed subsidy of Rs 2068.18 crore till March <g data-gr-id="41">31</g> 2015, he said.
The ministry will rise to the challenge through action plans directed at providing collateral free credit, creation of state verticals for extending guarantees to entrepreneurs with financial support from State Governments, creation of verticals for women entrepreneurs and youth among SC/ST and NE Regions, he said.
The Make in India strategy was not solely meant inviting the multinationals, but it urgently emphasised on setting “our house in order” to convert the country into a manufacturing hub, he said.
The Ministry has been assigned a target of training 1.5 crore youth by 2022 and it is gearing up to train around 42 lakh youth during the 12th plan period, he said.