by Rajen KumarMiddlemen Rule PSU Banks
The Union Finance Ministrys recent advisory to the public sector banks to take a tough stand while sanctioning loans to the corporate houses is, to say the least, amusing. The advisory,...
Special ReportsOct 2013
Association of Healthcare Providers India AHPI represents the vast majority of healthcare providers in India to work as not for profit organization for advocacy with...
Have a look at the Government Schemes for Entrepreneurs
To tackle the “C” thing
No problem is more pressing for the entrepreneur than credit. To make the Credit Linked Capital Subsidy Scheme (CLCSS) more attractive, several amendments have been made with effect from 29 September 2005. The ceiling on loans has been raised from Rs.40 lakh to Rs.1 crore and the rate of subsidy has been raised from 12 per cent to 15 per cent. The admissible capital subsidy has now been based on the purchase price of plant and machinery, instead of the term loan disbursed to the beneficiary unit.
Most significantly, the practice of categorisation of MSMEs in different slabs on the basis of their present investment for determining the eligible subsidy has been dispensed with.
No Collateral? No Problem
For entrepreneurs unable to provide collateral for obtaining loans, the Credit Guarantee Fund promises some help. The loan limit for this purpose has been increased from Rs.25 lakh to Rs.50 lakh. Added to this the one time guarantee fee has been reduced from 2.5% to 1.5%. This awareness has increased the number of loan proposals from 40 000 (for loans upto Rs.1000 crore) at the end of March 2004 to more than 1.20 lakh proposals (for loans of Rs3500 crore) at the end of October 2008.
The Best of all Packages
The Policy Package for Stepping up credit to SMEs was announced in 2005 for doubling the credit flow to this sector within a period of five years. This has resulted in a significant increase in flow of credit to enterprises from Public Sector Banks, from Rs.58, 278 crore at the end of March 2004 to Rs.1, 48, 651 crore at the end of March 2008. Capacity building for SMEs and support to women entrepreneurs are the main features of this package.
Administering the skill pill:
The agencies under the ministry of MSME conducted programmes for skill development for nearly 1 lakh trainees during 2007-08 and the targets set for 2008-09 is 3 lakh persons. Such training programmes for skill development are also being organized for women and other weaker sections of the society free of cost. A monthly stipend of Rs.500 is provided during the training period.
In order to enhance the competitiveness of SMEs, the government has launched the National Manufacturing Competitiveness Programme. The programme will enable the enterprises to Develop Quality Management Systems and Quality Technology Tools, besides providing them assistance for Marketing and entrepreneurial development.
Enabling Development through Clusters
As part of the MSMEs cluster development initiative, the MSME clusters can avail of benefits such as exposure to skill development, credit, marketing, technological upgradation and better designs and products. At present there are 412 clusters availing government interventions. Among these 50 clusters have been earmarked for hard interventions, 152 clusters for soft interventions and 210 clusters for diagnostic studies.
- Winner of appreciation award for promoting SMEs in India.
- 1st ever Indian magazine to penetrate tier II, III cities & the rural belt.
- Industry Partnerships include CII, FICCI, ASSOCHAM, PHDCC, AIMA, ITPO, SME Network, Federation of Indian Micro Small Enterprises (FISME)
- Official Magazine Partners for several national & international MSME events.
The Last Word
Of the 80 odd seasons that he has been through, he savoured less springs and suffered more rains, proverbially. Not that time took a toll on his age, it was his own siblings who dumped, nay disowned,...
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