Commerce Minister Piyush Goyal on Thursday asked businesses and MSMEs to share specific issues with the government in accessing bank credit. The minister, at an Assocham event, said the government is open to the idea of alternate financing models for MSMEs even as he urged the industry players to become whistleblowers in cases of corruption they face.
“Give me specific details on what kinds of problems they (MSMEs) face. Is too much collateral being asked? Suppose an ECGC (Export Credit Guarantee Corporation) cover is available, do they (lenders) still ask for collateral,” said Goyal.
The minister said if the government can get more specific feedback then it will be able to take it up with the bankers.
“ECGC is looking at factor services also but my own personal view is that being costlier, people will still prefer to go to the bank and take a loan but we are open to the idea of alternate financing models,” he said.
Goyal said he would seriously wish that “all of us could also become whistleblowers (as) there is a point about corruption among challenges. If the officer is not moving your file quick enough or if the proposal having merit is not getting acted upon in time, you need to raise your voice.”
The minister also noted that the government can earmark particular areas for MSMEs in the 20 smart industrial townships under construction. Of the 20, 12 cities received approval from the cabinet in August under the National Industrial Corridor Development Programme (NICDP).
“I am happy to commit to a particular area earmarked for MSMEs because without MSMEs no large industries will survive. If Toyota is investing Rs 20,000 crore in one of our industrial cities at Shendra-Bidkin at Sambhaji Nagar (Maharashtra), clearly they will need 100s of MSMEs in their support ecosystem,” Goyal said.
He said the ministry can also examine whether MSMEs can be given land at concessional rates in these cities.
The industrial cities are based in Uttrakhand, Rajpura-Patiala in Punjab, Dighi in, Maharashtra, Palakkad in Kerala, Agra and Prayagraj in UP, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in AP and Jodhpur-Pali in Rajasthan.