About 95% of the industries in Bihar fall under the Micro, Small and Medium Enterprises (MSMEs) category, of which, according to a recent RBI report, only 5% were exposed to banks.
Difficulty in obtaining capital, inadequate and unreliable power supply, zero access to modern technology, dearth of latest information and lack of market and infrastructure were outlined as the major reasons for the dismal growth of MSMEs in the state, at a conference for "Facilitating Finance for MSMEs in Bihar".
"MSME sector is at a very nascent stage in Bihar and needs much more aid than just finance", said, Satyajit Singh, CEO, Shakti Sudha Makhana, at the meeting of entrepreneurs and bankers of the state. He suggested the formation of a task force of stakeholders of MSMEs under the government that would address the reasons of sickness in the sector and recommend solutions for its development in a time-bound manner.
Minister of industry and disaster management, Bihar, Renu Kumari Kushwaha, who was the chief guest on the occasion, assured the delegates of the state government's help and said, "These conferences enable us to deliberate various aspects of MSMEs. However, it's time to take such coffee-table assemblage to villages and districts so that the actual stakeholders are be able to benefit from it."
The minister lambasted the financial institutions who assure of help at such platforms but get into "technicalities and formalities" when entrepreneurs approach them to seek finance. Kushwaha said, "We have also sent a proposal (to the Centre) for establishment of an institute in the state that would be a skill development and training centre for food processing industries."
Also present on the occasion was RBI general manager C S Azad, who informed the participants about the customer-friendly "Application Tracking System" by the Union government, where loan applications and their status tracking could be done online and the banks would have to give reasons if they decline finance. "However, only a few banks have started it and it is still in pipeline at most banks," said Azad. He added that RBI had altered the definition of "sickness" on November 1 to recognize sick MSME units early and take necessary action to revive them.
MSME Development Institute director Pradeep Kumar said, "Credit-Linked Capital Subsidy Scheme (CLCSS) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) are two schemes of the government where bank loans up to Rs 1 crore are given without any collateral. However, even bankers are not quite aware about the schemes." He added that awareness programmes for bankers would be held in four districts, including Patna, Bhojpur and Bhagalpur.
The daylong conference was organized by the PHD Chamber of Commerce of Industries (PHDand Central Bank of India. Also present at the conference were Debjit Talapatra, director (states), PHDCCI, Pushpa Chopra, president, Bihar Mahila Udyog, K P S Keshri, president, BIA, A K Mallik, director, department of industry, Bihar and S C Singh, zonal manager, Central Bank of India.
Difficulty in obtaining capital, inadequate and unreliable power supply, zero access to modern technology, dearth of latest information and lack of market and infrastructure were outlined as the major reasons for the dismal growth of MSMEs in the state, at a conference for "Facilitating Finance for MSMEs in Bihar".
"MSME sector is at a very nascent stage in Bihar and needs much more aid than just finance", said, Satyajit Singh, CEO, Shakti Sudha Makhana, at the meeting of entrepreneurs and bankers of the state. He suggested the formation of a task force of stakeholders of MSMEs under the government that would address the reasons of sickness in the sector and recommend solutions for its development in a time-bound manner.
Minister of industry and disaster management, Bihar, Renu Kumari Kushwaha, who was the chief guest on the occasion, assured the delegates of the state government's help and said, "These conferences enable us to deliberate various aspects of MSMEs. However, it's time to take such coffee-table assemblage to villages and districts so that the actual stakeholders are be able to benefit from it."
The minister lambasted the financial institutions who assure of help at such platforms but get into "technicalities and formalities" when entrepreneurs approach them to seek finance. Kushwaha said, "We have also sent a proposal (to the Centre) for establishment of an institute in the state that would be a skill development and training centre for food processing industries."
Also present on the occasion was RBI general manager C S Azad, who informed the participants about the customer-friendly "Application Tracking System" by the Union government, where loan applications and their status tracking could be done online and the banks would have to give reasons if they decline finance. "However, only a few banks have started it and it is still in pipeline at most banks," said Azad. He added that RBI had altered the definition of "sickness" on November 1 to recognize sick MSME units early and take necessary action to revive them.
MSME Development Institute director Pradeep Kumar said, "Credit-Linked Capital Subsidy Scheme (CLCSS) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) are two schemes of the government where bank loans up to Rs 1 crore are given without any collateral. However, even bankers are not quite aware about the schemes." He added that awareness programmes for bankers would be held in four districts, including Patna, Bhojpur and Bhagalpur.
The daylong conference was organized by the PHD Chamber of Commerce of Industries (PHDand Central Bank of India. Also present at the conference were Debjit Talapatra, director (states), PHDCCI, Pushpa Chopra, president, Bihar Mahila Udyog, K P S Keshri, president, BIA, A K Mallik, director, department of industry, Bihar and S C Singh, zonal manager, Central Bank of India.
