CII steps up for SMEs in AP
CII Vijayawada organised a seminar on Saturday on ‘Empowering SMEs’ through addressing their financing needs. The CII also launched the SME Finance Facilitation Centre in the city to help SMEs (Small and Medium Enterprises) in this part of the State.
Unveils SME Finance Facilitation Centre
CII Vijayawada organised a seminar on Saturday on ‘Empowering SMEs’ through addressing their financing needs. The CII also launched the SME Finance Facilitation Centre in the city to help SMEs (Small and Medium Enterprises) in this part of the State. Krishna District Industries Center general manager G Rajendra Prasad, while addressing CII, said that listing of the company on BSE or NSE and the MSME credit rating are important to get finance from banks or other institutions.
He also highlighted the Credit Guarantee for MSME with no collateral and the Credit Linked Capital Subsidy Scheme, offered by the MSME Ministry. Under this scheme, each unit could avail 15 per cent of capital subsidy up to Rs 1 crore investment, he added. He also mentioned that the MSME Ministry was currently focusing on Cluster Development and Vendor Development Schemes.
CII Vijayawada past chairman YV Krishna Mohan, said that the Micro, Small and Medium sector is of critical importance in reviving growth. “While the government of India has been taking several measures to promote SMEs, access to finance always remains an issue which requires major attention, he said.
The SMEs are facing lot of issues due to raise in cost of raw material and lower demand and also high cost of accessing finance,” he said. Krishna Mohan added that the SMEs were the backbone of CII’s membership and it is CII’s endeavour to address the issues faced by SMEs, enable them to function effectively.
“In CII membership, there is a pressing need for setting up a support centre to ensure that SMEs are provided with credit at cost effective and affordable rates, to meet their demands for working capital and expansion,” he added. Krishna Mohan said that the CII has established an online SME Finance Facilitation Centre (FFC) to provide advisory and credit facilitation to such companies. This facilitation centre helps the CII SME members to link them to financial institutions.
He also added that since its launch in June 2014, the CII FFC facilitated sanctioning of around Rs 70 crore loan to SMEs through the partnering banks and financial institutions in the sectors of infrastructure, agro, IT, manufacturing, etc. CII is also planning a similar facilitation centre for SMEs in the insurance sector, he added.
Federal Bank chief manager Venu Pillai, Muthoot Fincorp vice-president AL Narasimha Rao, Indian Bank assistant general manager CA Narayana Naik, IFFCO Tokio Vijayawada head K Venu Babu, DHFL sales head R Ganesh Reliance Capital representative Phani Kumar, Indian Overseas Bank chief manager P Gopalasamy, SIDBI manager E Dakshina Murthy and others spoke at the event.