MSME Minister Interacts with DICCI and assures complete support to SC-ST entrepreneurs amidst COVID19 pandemic

Hon’ble Minister for MSME  Nitin Gadkari, addressed an exclusive online meeting organised by Dalit Indian Chamber of Commerce and Industry (DICCI) on ‘Impact of COVID19 Pandemic on SC-ST MSMEs & Way Forward for Revival’. The meeting was presided by Founder-Chairman of DICCI, Dr. Milind Kamble and moderated by National Working President of DICCI, Shri. Ravi Kumar Narra, in which 350+ SC-ST Entrepreneurs, Industry experts and MSME officials participated.

Hon’ble Minister discussed the various aspects of measures being taken by Govt. of India to meet the challenges of COVID19 with the panellists comprising of all regional heads of DICCI representing all Indian states and across business sectors. The meeting was also attended by international DICCI members from Japan and UK.

The highlights of the discussions for which the Hon’ble Minister has assured his immediate consideration are,

  • The Govt. will consider DICCI’s proposal of including services sector into the ambit of Special Capital Linked Credit Subsidy Scheme (SCLCSS). Proposals for creating alternative different types of incentives that can be extended to SC-ST entrepreneursto be considered. The projects – Bulk LPG transportation by Road and Mechanisation of Sewer Cleaning Activities – has created 2,800+ SC-ST entrepreneurs. The ministry to consider the inclusion of these services into SCLCSS.
  • The possibility of revising thecompounding interest burden due to moratorium under the announced COVID19 relief package and possibilities of increasing the ambit of interest subvention for MSMEs through the ministry.
  • For North East Region, proposals have been invited by ministry for developing SC-ST entrepreneurship and assistance required thereof.
  • Consideration of relief initiativesby Ministry for SC-ST MSMEs through NSSH like extending interest free working capital to increase liquidity, special interest rates for NSIC’s Raw Material Assistance Scheme, priority procurement of masks, sanitisers & gloves from SC-ST MSMEs through GeM portal to fulfil 4% procurement policy and special medical insurance scheme for employees of SC-ST MSMEs
  • Pertaining to SC-ST entrepreneurs in LPG transportation under Stand Up India initiative to be exempted from toll payments for 2 months, extension of National Permits of which are expiring for a period of 3 months or until lock down whichever is earlier & insurance extension for 3 months.
  • Restructuring the MSME loans by extending the moratorium period for 2 years.
  • Special incentives for SC-ST entrepreneurs working in tribal areas & the necessity of incentivising the rural &tribal entrepreneurship. Decentralisation of industries & opening up of industrial clusters across the upcoming national highways&corridors, especially in tribal and backward areas including the aspirational districts.
  • Identification of Technology Upgradation in MSMEs and support in procuring the technology transfer to boost businesses.
  • To explore the possibility of collaborating with foreign funds, at a cheaper cost, for investment and development of MSME sector in India.

. Kishore Kharat, Financial Advisor to DICCI & Former MD &CEO of Indian Bank, IDBI Bank, proposed the change of business credit cycle through financial institutions from 90 days to 180 days. This will help in creation of much needed liquidity for MSMEs. He also advised the reassessment of Working Capital requirements of MSMEs and loan restructuring with 2 years moratorium.

Dr. Milind Kamble requested the creation of Special COVID19 Relief Package for SC-ST Entrepreneurs from the Special Central Assistance (SCA) to Scheduled Castes Sub Plan (SCSP) and Tribal Sub Plan (TSP).He also requested earmarking 10% of, soon to be announced, Fund of Funds of Rs.10,000 Crore for SC-ST MSMEs.

 Nitin Gadkari-ji assured the MSME Ministry’s complete support in sailing through the impact of COVID19 and emerging the MSME sector as a stronger contributor to India’s GDP.He also said that, the development of new international trend of looking for industrial set ups beyond China presents an opportunity for Indian MSMEs to develop India into next power engine of world economy.