Purchase preference policy for MSMEs soon, says Modi

Patna: Bihar Deputy CM Sushil Kumar Modi said Wednesday that the government will soon present an effective procurement policy preference for the purchase of manufactured goods by micro, small and medium enterprises (MSMEs).

The development of MSMEs create employment opportunities in the state, Modi said, stressing entrepreneurship and capacity development program, particularly for first generation entrepreneurs to create huge opportunities for self employment. The last three years, banks have somewhat increased funding for the industry, he said, but hastened to add that we need to improve the ratio of their CD. It was a plan addressing the Indian Chamber of Commerce on «MSME linkages and partnerships for the empowerment of small businesses.

Modi said the banks should be wary of lending to industry, at least 0.8 of the loan is protected by Guarantee Trust central government to small and medium enterprises, and a third party guarantee was not needed . In case of closure of industries, at least 0.8 of the loan amount given to them should be returned to the banks, he said. Supporting agriculture, industry association, Industry Minister Renu Kumari Kushwaha said about adding value to agriculture produce through processing.

He said the steps the government to promote industries were disappointed when the banks failed to provide timely loans to entrepreneurs, despite the low proportion of CD 32%.

Principal secretary, industries, CK Mishra, said that in Bihar, from 1.9 lakh small and micro and small units of craftsmen and weavers, about one lakh units operating and the rest were either sick or closed due to non-financial and based financing from banks. He said that of 126 patients of small industrial units, three were recommended for the revival of a committee top. Proposals for the creation of 117 rice mills were. All these may be functional, but poor funding by the banks comes in the way, he said.