Lack of Information deprives MSMEs from availing various Government and Bank Schemes : Experts at PHDCCI Webinar

No.PR-185 July 30, 2020 New Delhi Lack of Information deprives MSMEs from availing various Government and Bank Schemes : Experts at PHDCCI Webinar Chamber of Commerce and Industry (PHDCCI) organized a webinar on Funding Schemes for MSME here today where experts opined that lack of information deprives MSMEs from availing various schemes announced for their benefit by Government and Banks. Presenting the Industry perspective, Mr. Anil Khaitan Former President and Mentor, PHD-MSME Mentoring & Guidance Centre said that finance is the basic need of every company but due to lack of awareness, MSMEs are not able to avail the benefit of funding schemes of Government and Banks. PHD Chamber has created a MSME Mentoring and Guidance Centre to enlighten MSMEs about various Government and Bank Schemes and extends help to them to avail benefit of such schemes. Mr. Khaitan added that banks prefer to play safe while extending loan. Therefore, the Bank credit growth rate is low in India In fact the credit growth rate of banks has decelerated over the past few months to 6.3% which is lowest in last 60 years leading to slowing down of economic growth in the country. Earlier, welcoming the speakers and participants, Mr. Mohit Jain, Chair, Haryana State Chapter, PHDCCI mentioned that the GOI announced 15 relief measures under the mega Rs 20 lakh crore stimulus package for the Covid hit economy to boost liquidity in MSMEs and bring them back to life and PHD Chamber is organizing this program on Funding Schemes for MSME to enlighten the industry about the schemes offered by Banks and Central government to support MSMEs to tide over the current situation. Assuring the industry members of all back support, Mr. Saurabh Sanyal, Secretary General, PHDCCI listed the various services extended by PHD MSME Mentoring and Guidance Centre. He mentioned that MSMEs form 99% of the total industries in the country, are the most vulnerable to any radical changes in the Policy as well as to natural calamities like Covid pandemic. Delivering the Key Note Address, Dr. H P Kumar, Former Chair, NSIC and Advisor, PHDCCI stated that MSMEs have been struggling since long due to shortage of funds because they lack information and knowledge of documentation required for availing credit facilities from Banks. The schemes announced by Government do not reach the intended beneficiaries. He added that PHD Chamber has taken a lead in providing hand holding assistance to MSMEs through its Mentoring and Guidance Centre. Updated details of Government and Bank Schemes are listed on this dynamic portal and PHD Chamber offers assistance to industry in registering and documentation required for availing various schemes. It also provides training facilities through virtual incubation centers and B2B meeting & networking facilities through digital platforms. Highlighting the benefits of listing on NSE, Mr. Rakesh Khurana, Regional Manager, NSE informed that many exemptions are available to small companies for issue IPOs to raise funds by listing on NSE. He mentioned after listing, companies can pledge their shares with banks and NBFCs to get credit. Speaking on the occasion, Mr. Ashok Holani, Director, Holani Consultants informed about the functions of Merchant Banks in listing of SME shares on NSE and BSE. He also highlighted the benefits that accrue to SMEs by listing stock exchanges. While giving details of various schemes for MSMEs offered by SIDBI, Mr. Rahul Priyadarshi, GM, SIDBI said that the number of companies approaching SIDBI for credit indicate that impact of lockdown is almost over. Mr. Lalit Mohan, DGM, State Bank of India, Panchkula mentioned that SBI has been pioneer in financing MSMEs and highlighted various GOI schemes available to MSMEs through SBI. He clarified that Government has reduced the stamp duty which was discouraging MSMEs from availing the benefit of GOI Schemes. Ms Rachna Tripathi, Assistant Director, MSME DI made a presentation highlighting various Funding Schemes offered by Central Government. She stated that with change in definition of MSMEs, they are required to get Udyam Registration for availing various GOI Schemes. Thanking the speakers, Mr. Ashutosh Jain, Co Chair, Haryana State Chapter, PHDCCI hoped that the Session will help industry members to benefit from various funding schemes highlighted during the Session. Ends Media Division PHD Chamber of Commerce and Industry