Credit and finance for MSMEs: Principal financial institution for the promotion, financing and development of MSMEs SIDBI on Wednesday signed a memorandum of understanding (MoU) with the Madhya Pradesh (MP) government to set up Project Management Units (PMU) in the state, SIDBI announced on Twitter. The PMUs set up in the state would work in close coordination with the state government and local banks to identify projects beneficial for MSMEs and would assist with financing, policy, scheme-level formulations and recommendations, the tweet said.
The bank had earlier entered into similar partnerships with other states including Assam, Rajasthan, Haryana, Maharashtra, Delhi, Uttar Pradesh, Uttarakhand, and more to set up PMUs. According to SIDBI, PMUs design programmes related to equity support, resolution for stressed units, interest subvention and suggest changes to existing schemes and projects in the respective state, if required, to remove barriers to MSMEs’ growth.
Importantly, SIDBI in September this year had brought out profiles of 16 states with respect to their enterprise/industrial policies and good practices adopted to promote MSMEs through PMUs set up by the bank. These profiles (of Andhra Pradesh, Assam, Delhi, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, Uttarakhand, Uttar Pradesh, Telangana, Jammu and Kashmir, West Bengal, Odisha and Bihar), according to SIDBI were to be provided to state governments to take advantage of the information and spread the best practices followed for the benefit of MSMEs.
According to the MSME Ministry’s annual report of 2021-22, MP was the 10th biggest state in terms of MSME count. The state had 26.74 lakh MSMEs, with a 4 per cent share in the 6.33 crore all-India MSME count while Uttar Pradesh, West Bengal, and Tamil Nadu were the top three states with 89.99 lakh, 88.67 lakh, and 49.48 lakh MSMEs respectively.
MP had earlier this year launched its Startup Policy and Implementation Plan-2022 to boost the local startup ecosystem along with a Startup Centre to provide mentors and experts from relevant fields to every startup.