The government has sought information from most public sector enterprises (CPSEs) in their procurements from micro, small and medium businesses, particularly those owned by women, to estimate their service for these tiny companies.
The authorities had led all departments and public sector businesses to buy at least 25 percent of the merchandise and services from these businesses. It’d asked the state-owned organizations to get on board the Trade Receivables Discounting System (TReDS), an electronic platform geared toward fixing the critical financial needs of micro, small and medium enterprises (MSMEs).
“The government is seeking to advertise the MSME sector, and it has accepted a series of measures to encourage them. CPSEs may play an important part in promoting such ventures,” said an official with the department of public enterprises, the nodal agency for many CPSEs.
The credit outstanding to the MSME sector contracted by 1.4percent in September although total bank grew 11.3%, based on Reserve Bank of India data. The authorities will assume the problem of providing more relief to the MSME sector in the RBI board meeting scheduled on November 19. ET reported before the authorities had initiated discussions with an RBI about a dozen problems following invoking Section 7 of the RBI Act.
Prime Minister Narendra Modi established the MSME service programme earlier this month, providing advantages such as loans at 59 minutes and 2 percent interest subvention or lien on incremental loans up to Rs 1crore to get GST-registered MSMEs.
The government has amended the Public Procurement Policy and hopes to enhance market availability and improve competitiveness of MSMEs, the official added. CPSEs are led to likewise offer a minimum 3 percent reservation for all these enterprises owned by women.
The government has requested public sector banks to enroll themselves to the TReDS platform to enable faster payments to small companies. It’ll update udaymitra.in, an internet portal site where MSMEs can record their banks and projects can compete to fund them.
As a way to aggregate products and services of MSMEs, a driveway was initiated to place them on the Authorities e-Marketplace (GeM), in which they may be bought online by ministries, PSUs and autonomous bodies.