‘Credit Guarantee Fund Trust for MSMEs’
22 Sept 2014 4:52 AM IST
With the objective of giving a boost to new entrepreneurs, the Narendra Modi-led National Democratic Alliance (NDA) Government at the Centre is mulling the introduction of a Credit Guarantee Fund Trust, (CGFT), which will help in providing financial assistance to budding moguls.
Informing about the new plan, Micro, Small and Medium Enterprises Minister Kalraj Mishra on Saturday said, ‘Allocation of funds at state level is on the anvil through the Credit Guarantee Fund Trust is going to provide adequate financial assistance to budding MSME entrepreneurs and will eventually lead to a higher growth rate and more employment generation in the sector.’
Addressing the inaugural session at the national conference and round table meetings on MSME Financing & Strengthening, Mishra, who was the chief guest at the function, spoke about the crucial role played by the MSME sector to restructure the Indian economy and to take forward the country at global stage.
Mishra mentioned that though several policies have been undertaken till now to tackle the problems of credit availability, incidences of default and other related obstacles, a number of problems still exist. Thus, a comprehensive policy needs to be formulated which will take care of the existing problems in an in depth manner. The minister also said that his ministry intends to come up with new policies to provide a concrete solution. In its maiden Budget, the Modi Government announced allocation of funds of Rs 10,000 crore for facilitation of MSME industries.
He mentioned that the Centre has started taking initiatives to promote the MSME sector like China, Japan and other Asian countries.
Mishra announced that an industrial park will be established in Ahmedabad by the Centre in collaboration with the Chinese government, which will pave a new way for the Indian manufacturing industry. The Centre has realised the importance of foreign investment for promotion of MSME activities in India, he observed.
Informing about the new plan, Micro, Small and Medium Enterprises Minister Kalraj Mishra on Saturday said, ‘Allocation of funds at state level is on the anvil through the Credit Guarantee Fund Trust is going to provide adequate financial assistance to budding MSME entrepreneurs and will eventually lead to a higher growth rate and more employment generation in the sector.’
Addressing the inaugural session at the national conference and round table meetings on MSME Financing & Strengthening, Mishra, who was the chief guest at the function, spoke about the crucial role played by the MSME sector to restructure the Indian economy and to take forward the country at global stage.
Mishra mentioned that though several policies have been undertaken till now to tackle the problems of credit availability, incidences of default and other related obstacles, a number of problems still exist. Thus, a comprehensive policy needs to be formulated which will take care of the existing problems in an in depth manner. The minister also said that his ministry intends to come up with new policies to provide a concrete solution. In its maiden Budget, the Modi Government announced allocation of funds of Rs 10,000 crore for facilitation of MSME industries.
He mentioned that the Centre has started taking initiatives to promote the MSME sector like China, Japan and other Asian countries.
Mishra announced that an industrial park will be established in Ahmedabad by the Centre in collaboration with the Chinese government, which will pave a new way for the Indian manufacturing industry. The Centre has realised the importance of foreign investment for promotion of MSME activities in India, he observed.
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