'Grant more funds to meet SMEs' credit concerns'

BANGALORE, INDIA: To address the credit concerns of the Small and Medium Enterprises in the country, minister of Micro, Small and Medium Enterprises (MSME) Virbhadra Singh has urged finance ministry to allocate more funds in the coming budget.

In his letter to finance minister Prnab Mukherjee, Virbhadra Singh said that financing should be more transparent. Hurdles which are being experienced by the sector at present to get finances from the banks should be smooth.

He informed this on the sidelines of the Signing Ceremony of Memorandum of Understanding between the National Institute for Entrepreneurship & Small Business Development (NIESBUD) & World Bank arm, International Finance Corporation (IFC) in the national capital on Monday.

The MSME minister asked for three important points; more equity formation, lowering the interest rate and easy exit system.

MSMEs are facing challenges in getting funds from banks and alternate source of capital like private equity, venture capital and angel funds.

The two institutes have joined hands for undertaking a pilot project relating to entrepreneurship development in India. As a sequel, the NIESBUD will collaborate with the IFC in conducting Training of Trainers (TOT) programme, based upon their vast experience in the area, for strengthening the training skills of MSME trainers so that they are in a better position to impart training and thus facilitate sustenance of this vital sector of the Indian economy.