PM task force on MSMEs to conclude work on Saturday

The Prime Minister's Task Force on micro, small and medium enterprises will meet here on Saturday to finalise its recommendations for the upliftment of the sector employing 42 million people.

"The task force would have its last meeting on the weekend after which its report will be submitted to the Prime Minister," Secretary in the Ministry of Micro, Small and Medium Enterprises (MSME) Dinesh Rai told reporters on the sidelines of a CII event today.

Though he did not disclose the details of the several meetings which the task force has held since August 2009 when it was formed, it is learnt that easy bank finance and preference in public sector purchases have been recommended.

Prime Minister Manmohan Singh had formed a task force last year to suggest measures for helping the MSME industry which came under severe pressure following global economic crisis that hit Indian exports most of which are sourced from the sector.

A Committee of Secretaries is also looking into the issue of preferences for MSMEs in the PSUs. The panel will meet in the first week of February, Rai said.

The industry has been demanding minimum 20 per cent reservation for them in the non-strategic PSU purchases.

MSME sector contributes about 45 per cent of India's total manufactured output and close to 40 per cent to the country's exports.