Activities Round Up

Date : 03 Nov to 03 Nov 2015
Place : New Delhi
Organised by : FISME

FISME delegation meets Shri Jayant Sinha, Minister of State for Finance to MSME Finance

A delegation of senior office bearers of FISME including Shri Anil Aggarwal, Shri Dinesh Singhal, Shri ChanderShekharGoel and Shri Pankaj Bansal,met Shri Jayant Sinha, in his office at North Block on 3rd November, 2015. The purpose of the meeting was to bring to the Minister’s notice the hurdles in access to finance and credit by the MSMEs.

During the meeting the delegation mentioned specific cases where Banks are asking for additional collaterals and putting additional conditionalities on the existing MSME accounts, which are good and free from default. It was also  questioned  how the Make in India dream of the Prime Minister will be fulfilled when it has become nearly impossible for a new manufacturing MSME to get Bank finance. The delegation also brought to the Minister’s notice the failure of the present public procurement system to ensure quality and cost effective supplies to the Government.

Reacting to the issues raised, Shri Jayant Sinha mentioned about the rising non -performing assets of the Banks and advised the MSMEs to approach alternative sources and private sector Banks to create a competitive market for MSME finance. He also mentioned that no Banker will refuse a loan with a good rate of return and opined that most of the MSME loan proposals show very low rate of return. He also mentioned that with the present weak budget conditions, Government cannot ensure additional allocations for the sector.

To further clarify the issues, the delegation informed the Minister that MSMEs are not  asking for Government subsidies and doles but a transparent, supportive credit environment to survive and grow. It was specifically mentioned that Banks have shut the door for interaction to  MSME federations  and even the letters written with specific  case studies of arbitrariness by the Bank managers remain unreplied. The delegation also confided that with present ‘Doing Business’ environment, no manufacturer can match the rate of return of the service sector.

Finally, the honourable Minister agreed to chair an interactive workshop with all stakeholders where   issues relevant to credit flows to MSMEs may be discussed and appropriate action taken.