MSME sector facing uncertain future in Bengal: Minister

Despite being in a leading position, the micro, small and medium enterprises (MSME) sector in West Bengal is looking at an uncertain future mainly because of infrastructural deficiencies, union MSME Minister Kalraj Mishra said Saturday.

Addressing a Merchant Chamber of Commerce and Industry-organised event here, he said a new policy providing the necessary fillip to the sector will be introduced in two months.

"There are 25 lakh MSME units in Bengal but 94 percent of them don't have access to financial aid. Bengal might be leading in the sector but the condition is alarming and future is uncertain as a large number of units are getting sick. This is because of the infrastructural deficiency... units are not getting land, power, water, communication et al," said Mishra.

"Besides, there are the procedural impediments where you have to satisfy so many conditions under various laws to get the requisite permission and registration. While land is a big problem for the industry across India, the condition of West Bengal in that respect is alarming," he said.

Observing that the MSME sector will play a vital role in India's pursuit to become a developed economy, Mishra talked about several initiatives that are on the anvil to give the sector the desired boost.

The new MSME policy likely to be introduced within two months will widen the access of these enterprises to bank financing, simplification of general as well as procurement procedures as well as introduction of online registration, he said.

"The new policy will also focus on giving a boost to women and rural entrepreneurship and encourage start-ups," said Mishra.

The minister added that a Credit Guarantee Trust Fund to extend liberal packages to MSME with contribution from state governments is also being introduced.

"If you provide Rs.100 crore for this, a collateral free loan of Rs. 1,000 crore would be offered for promotion of MSME under the Credit Guarantee Fund Scheme," he said explaining the working of the scheme.