New Delhi: The government is setting up a high-level Task Force to address the problems of Micro, Small and Medium Enterprises (MSMEs) which have been demanding adequate financing and other incentives to tide over the economic slowdown.
The Task Force will submit its report within three months.
The Minister of State, MSME (Independent Charge), Dinsha
Patel disclosed this after calling on Prime Minister Manmohan
Singh along with industry representatives.
"Prime Minister has announced setting up of a high level
Task Force to look into the problems and demands of the
sector," Patel told reporters after the meeting.
Patel did not give other details of the Task Force.
The minister, who led a delegation of industry bodies like
CII, ASSOCHAM and FISME, apprised Singh of the difficulties
faced by the MSMEs because of the global economic slowdown and
put forth suggestions that would help them tide over the
problems.
He said Singh assured the delegation that the government
would provide all support to the sector, which contributes 45
per cent of the industrial output and employs 60 million
people.
On making adequate credit available to the MSME sector,
Patel said the prime minister had been apprised of the
industry demand for earmarking 6 per cent of priority sector
lending for micro enterprises.
At present, 4.9 per cent of the priority sector lending
is reserved for the sector. The increase in net bank credit
would translate into about Rs 17,000 crore.
Bureau Report
First Published: Wednesday, August 26, 2009, 22:08