Virtual Conference on Credit Facilities for MSMEs & Start- ups during COVID – 19

No.PR-202 August 11, 2020 New Delhi Virtual Conference on Credit Facilities for MSMEs & Start- ups during COVID - 19 The Uttar Pradesh Chapter of PHD Chamber of Commerce and Industry (PHDCCI) organized a Virtual Conference on “Credit Facilities for MSMEs & Start- ups during COVID- 19” in association with Bank of Baroda on 10th of August 2020. The objective of the Webinar was to focus on promoting and boosting investment in MSME Sector. The interactive webinar also aimed to discuss about the guidelines and procedure for financing facilities available for MSME and to facilitate networking of MSME with banks, other financial agencies and institutions. The Chief dignitaries of the session included Mr. Brajesh Kumar Singh, GM, Bank of Baroda & Convenor SLBC; Mr. Anil Khaitan, Former President & Mentor MSME Mentoring & Guidance Centre, PHDCCI; Dr. H.P Kumar, Former CMD, NSIC & Advisor, PHDCCI; Mr. Saurabh Sanyal, Secretary General, PHDCCI; Mr. Manoj Gaur, MD, Gaurs Group & Chair, UP State Chapter, PHDCCI; Mr. Gaurav Prakash, Co-Chair, UP State Chapter, PHDCCI; Dr. Ranjeet Mehta, Principal Director, PHDCCI & Mr. Atul Srivastava, Resident Director, UP State Chapter, PHDCCI. In his welcome address Mr. Manoj Gaur, Chair, UP State Chapter & MD, Gaurs Group greeted and welcomed all the dignitaries and participants in the interactive webinar Session and said that banks are considered as the prime source of finance for MSME Sector. He added that MSME sector plays an important role in sustaining economic growth of the country and the same can be seen in the 20 Crore Atmanirbhar Bharat package announced by Government where government declared to provide great support to stresses MSMEs. He also suggested that during this pandemic situation if we promote MSME sector by source of financing then it would of great help for the country’s socio-economic development. He said that this webinar is a great platform where we can discuss the relief measures and policies introduced by banks which can not only help MSME sector immensely but also to entrepreneurs. Mr. Anil Khaitan, Former President, PHDCCI & Mentor MSME Mentoring & Guidance Centre, PHDCCI gave the industry perspective & said that in current scenario Indian MSME Sector needs massive speed & massive execution, where execution defines as implementation. He discussed some of the relief measures announced by Chief Minister of UP State in order to give boost to MSMEs, which were, 9 crore of loan amount has been disbursed to 2 Lakhs and 70 thousand of new MSME units to ensure the growth rate of 12% per annum in the MSME sector, doubling the export of MSME goods from UP in the next 5 years, qualitative development in the MSME Sector through export infrastructure development scheme, cluster development scheme and technical upgradation scheme; promotion of handicrafts; E- Commerce Portal for products of MSME and handicraft units marketing through buyer and seller meet and lastly modernization of enterprise promotion centres. He also shared an example of financial model based on the practical experience being practiced in his company, describing how a MSME company should look at its balance sheet. He discussed about the Current Light and Equity Heavy Model, this model comprises of current assets and current liabilities. He said that the main problem being faced by the MSMEs are because of debtors. He told that nowadays bankers look for the liquidity & viability a company can generate which gives them the confidence funding. He added that realizing how the bankers are reviewing MSMEs is also an important aspect. He also mentioned few important points which MSMEs must remember – customers, suppliers, maximum capacity utilization and minimum wastage & minimize fixed expenses. In order to improve the quality of the produce and market share MSMEs need to constantly engage with their customers & suppliers. In his address Mr. Saurabh Sanyal, Secretary General, PHDCCI welcomed all the eminent speakers and said that MSME Sector is the most ideal sector for entrepreneurship driven by the individual creativity and innovation. He mentioned due to pandemic, MSME sector has got a great push back, therefore in this challenging situation MSME sector should focus on demonstrating data competitiveness and position itself strategically in the global markets. He also highlighted the role of PHDCCI in promoting MSMEs and described about the PHDCCI’s MSME Mentoring & Guidance Centre which provides complete hand holding and mentoring support to MSMEs and also knowledge and guidance about Entrepreneurship and how to start a new business venture or how to scale-up their existing business enterprises and empower them to become equally competitive. He also told the services offered by the Chamber which were policy advocacy, highlighting the problems of MSMEs. He also discussed about the new definition of MSME. He suggested few measures on how MSMEs can be benefitted which were - improvement and changes in the Government Assistance Schemes for MSMEs, render advice and mentoring support to MSMEs through the MSME guidelines, conduct capacity building programs for the MSMEs, guide and mentor first generation of entrepreneurs, virtual incubation centres to the students who wants to become entrepreneurs. In his address Dr. H.P Kumar, Former CMD, NSIC & Advisor, PHDCCI discussed about the importance of PHD Chamber’s MSME Mentoring & Guidance Centre in helping MSMEs avails all the necessary services needed for their progressive growth and also said that out of the total 6.3 Crore enterprises only 1.3 Crore registered enterprises were able to avail the credit facilities from the bank while the rest of them were not able to avail then credit for falling in the non-eligibility area and for not been able to prepare and produce the right set of papers required for availing the Credits and that is why several entrepreneurial development programs are run by the Government that is where PHDCCI’s MSME mentoring & Guidance Centre can play a pivotal role in. Dr. Kumar later emphasized on lack of awareness amongst MSMEs and said that more than half of the existing MSMEs are not even well aware of the Credit Facilities Banks are offering and about the Government Schemes available for MSMEs. He said that proper mentoring and guidance is required to be given to the MSMEs for them to prosper in full strength. Dr. Kumar later highlighted about the Virtual Incubation Program started by PHDCCI by the help of which any budding entrepreneur, startup or unemployed youth can avail several business ideas, project reports and guidance to give his/her business the jump start in the right direction. He concluded by suggesting a MoU to be signed between PHDCCI & Bank of Baroda in order to facilitate credit facilities for MSMEs. Mr. Brajesh Kumar Singh, GM, Bank of Baroda & Convenor SLBC in his keynote address said that though the Banks have liquidity in terms credit corpus but the same is disbursed in very low percentage because of non-qualifying applications and unawareness amongst MSMEs about these facilities. He said that though this pandemic has jeopardized the Economic system of the Nation where the demand and supply both have been affected but there are still areas which can be worked upon in increasing the income part of the enterprises in order to re-stabilize the Ecosystem. He later spoke about the Atma Nirbhar Package announced by the GOI in the wake of this pandemic and mentioned about the Emergency Credit Scheme which came as a big relief for enterprises especially at these torrid times and he informed that 92% of the total accounts in the State of UP has been accorded sanction with the same. He briefed about the salient features of the debt Scheme by Bank of Baroda by which many eligible enterprises can avail the credits easily. He concluded by thanking PHDCCI for organizing such an informative session where almost all the vital points and concerns were addressed and spoken about. He also showed keen interest in signing a meaningful MoU with PHDCCI in this direction further. Mr. Gaurav Prakash, Co-Chair, UP State Chapter, PHDCCI gave the formal vote of thanks to all the dignitaries for attending the session and sharing their valuable insights without which the webinar could not have been so meaningful and interactive. Dr. Ranjeet Mehta, Principal Director, PHDCCI moderated the entire session and took questionnaires from the audiences to the panellists. The Interactive Webinar was well attended by more than 100 participants comprising of Entrepreneurs, Bankers, Start-ups Enterprises, Senior Industrialists, academicians, students, policy makers and other stakeholders working in this area. Ends Media Division PHD Chamber of Commerce and Industry