‘‘With the Central and State governments doubling down on their efforts to make access to formal finance easy for Micro Small and Medium Enterprises (MSMEs), and robustness in the sector in recent years, hassle-free finance may no longer be a problem for the MSMEs, according to Canara Bank General Manager (Madurai Circle) T.V.K. Mohan .
Speaking at the third edition of Madurai MSME summit 2023 organised by the Confederation of Indian Industry (CII) here on Friday, he said that banks would be more willing to grant loans to MSMEs at competitive interest rates, provided the companies have a clear intention, clean records of financial transactions, and enjoy a good credit score from the rating agencies.
He said that there are about 630 lakh registered MSMEs in the country. They contributed about 30% of India’s GDP. The sector provides employment to over 11 crore people and directly contribute to or support about 40-45% of the country’s exports. Considering the significance of the contribution, both the State and Central governments are keen to remove structural bottlenecks in finance and infrastructure in order to facilitate the growth of the sector.
The GM pointed out that Canara Bank in the Madurai region alone currently manages advances of about ₹ 6,500 crore in the MSME sector. Citing the recent rise in the power cost, he urged the entrepreneurs to go for captive power generation, especially in the renewable sector, involving solar and wind power to meet their energy needs in a sustainable and cost-effective manner.
As renewable energy projects in Tamil Nadu are financially sound, have long periods of yields, and require less maintenance, obtaining loans for these projects will not be difficult, he added.
In his address CII TN MSME convenor RV Chari said the State is home to about 8% of India’s registered MSMEs. But if TN has to achieve its US$ 1 trillion economy target, it should take every step to increase the presence of MSMEs, and Startups.
‘‘The focus should be on increasing the participation of women and the younger generation in the sector, as over 80% of the MSMEs is run by men, and most of them are over 40 years of age,’’ he added.
Earlier, PGS Dinesh Davidson, chairman, CII, Madurai zone, welcomed. CII Madurai zone vice-chairman Sounder Kannan proposed a vote of thanks.
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