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Govt aims to extend additional Rs 5 trn via credit guarantees in 2 years
Source: Business Standard
Credit Guarantee Fund Trust for Micro and Small Enterprises is jointly set up by Ministry of Micro, Small & Medium Enterprises and Small Industries Development Bank of India (SIDBI) to catalyse flow of institutional credit to micro & small enterprises. (Photo: Shutterstock)
The government aims to ramp up credit guarantees extended to micro and small enterprises through the CGTMSE scheme by another Rs 5 lakh crore in the next two years, a top official said on Tuesday.
According to Rajneesh, Additional Secretary and Development Commissioner (Micro Small and Medium Enterprises), credit guarantees worth of Rs 4 lakh crore were extended in the last two years via the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
“In a span of 22 years the cumulative credit guarantees extended by CGTMSE amount was 2.6 lakh crore. But in last two years, we have been able to give credit guarantees worth of Rs 4 lakh crore and in the next two years we intend to ramp it up to another Rs 5 lakh crore,” Rajneesh said at a FICCI event here.
He further shared that the government has bridged a large gap in formalisation of MSMEs in the last few years, with the total number of Udyam registered MSMEs rising to 5 crore from 1.65 crore units over a year ago.
“The government started concerted drive jointly with state governments and industry associations. As on date, the total number of registered MSMEs with the ministry in more than 1 year has increased from 1.65 crore to 5 crore bridging the large formalisation gap,” Rajneesh said.
Addressing the event, Chakravarthy T Kannan, Secretary General, Quality Council of India (QCI), highlighted the need to work on building a quality interface called ‘Universal Quality Interface’, like UPI, to support the decision-making process of OEMs based on the ZED progression.
“ONDC (Open Network for Digital Commerce) is getting reconstituted, and we are also collaborating with them on how ONDC can become a platform for MSMEs with quality guarantee. Indian MSMEs are poised to grow multi-fold and QCI is eager to participate with the industry to be a part of the journey to Viksit Bharat,” he added.
MSME Sustainable (ZED) Certification is an extensive drive to create awareness amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivise them for ZED Certification while also encouraging them to become MSME Champions.
Credit Guarantee Fund Trust for Micro and Small Enterprises is jointly set up by Ministry of Micro, Small & Medium Enterprises and Small Industries Development Bank of India (SIDBI) to catalyse flow of institutional credit to micro & small enterprises.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 10 2024 | 4:45 PM IST
