OSFC to be revived to improve credit for MSMEs: Minister

In a bid to improve credit guarantee for the micro, small and medium enterprises sector, the state will soon revive the Odisha State Financial Corporation (OSFC), MSME Minister Prafulla Samal said.
Addressing a seminar on Initiatives to develop the sector at Utkal Chamber of Commerce and Industry (UCCI) here yesterday, Samal admitted that MSMEs were not getting the support it should from the banking system.
"The MSME sector is not getting adequate support from banks. As a result, this vital sector, which provides substantial opportunity for employment, is gasping for financial support," the minister said.
He also said the state government has constituted a committee to revive the OSFC, since it had a good track record of providing hand-holding support to entrepreneurs in the state.

Taking into account the contribution of the MSME sector to the GDP, exports and employment generation, the Odisha government had formed a separate department for it, he said.
"I will ensure more and more interaction with entrepreneurs in future to know their difficulties," he said.

More efforts are being made to provide women entrepreneurs all necessary facilities to grow, Samal said.
The state government, which is laying stress on skill development, has formed the Odisha Skill Development Authority, he said.
A MoU has been signed with Singapore-based ITE Education Services (ITEES) for training of ITI instructors, Samal said.
Steps will soon be taken to fill up all posts in district industrial centres that facilitate the process for setting up of new enterprises in the state, he said.

Speaking on the occasion, Ramesh Mohapatra, president of the UCCI, said finance is one of the major problems plaguing the sector in the state.
The MSME space is responsible for about 40 per cent of the exports and 45 per cent of the total manufacturing output in the country, Mohapatra added.