Page 32 - Banking Finance December 2021

ARTICLE

producers by expanding the industrial world to recreate the NSIC, etc. This leads to cumbersome registration process
lost productive manufacturing and creative process. and duplication of efforts. It is, therefore, recommended
that the Government should make PAN as a Unique
ODOP has four schemes to provide access to acquire financial Enterprise Identifier (UEI) and the same should be used
assistance from recognized banks, fair pricing and provide for various purposes like procurement, availing
training to improve technological skills to compete with government sponsored benefits, etc
marketers globally. The mission and vision of the scheme is
Y Knowledge centers are to be established at various DIC
to create MSME hubs that produce traditional products level so as to popularize government incentive schemes.
related to ODOP scheme across all 75 districts in Uttar
Pradesh. Y Presently, MSME clusters are inadequately equipped in
areas such as tool rooms, innovation centres, testing
facility, etc. It is recommended that ways and means
The mission and vision of the scheme is to create MSME
hubs that produce traditional products related to ODOP to enhance private sector contribution must be found,
scheme across all 75 districts in Uttar Pradesh. viz., through debt instruments like bonds, CDs, etc., with
tax incentives through SIDBI, so that larger number of
ODOP Scheme has four components. They are: clusters can be supported.
1. Common facility Scheme Y The Government should deploy the PSL shortfall to
SIDBI on the lines of RIDF fund of NABARD, for lending
2. Marketing Development Assistance Scheme.
to State Governments as soft loans for infrastructural
3. Finance Assistance Scheme and cluster development.
4. Skill Development Scheme. Y Government should take active efforts to provide
insurance coverage to MSME employees on the lines of
Challenges and Way forward: PMSBY and PMJJBY schemes. Workers at urban and
Micro, Small & Medium Sector has a potential to strengthen rural formalized MSEs need to be specifically covered
the socio-economic growth of the nation by providing under Ayushman Bharat - PMJAY.
solution to the unemployment problem of the country at Y The PSBLoansIn59Minutes portal should be popularized
local. This will further lessen the inequalities between the and specific incentives should be provided through a
geographical areas in terms of economic imbalances. common platform.
Further, the inclusive pattern of sustainable growth of MSME
Y As there is a mapping gap among various MSME
sector will provide employment opportunities at the local
level which will lessen the population load at megacities. schemes, it is recommended that the Ministry of MSME
should be the Nodal Ministry for all interventions
However, meeting the diverse skill requirements of MSMEs
pertaining to the MSME Sector, rather than multiple
spread across various sectors horizontally and vertically is a
schemes being run by different Ministries for promotion
challenge. As a way forward the following recommendations
of MSMEs in their respective domain.
may be beneficial for a strong growth and development of
MSMEs. Y All new Credit Guarantee Funds set up by the
Y Along with incentivizing MSMEs, special incentives are Government should be run by NCGTC, where expertise
also to be designed for entities procuring for 90% & on risk management, fund management and compliance
more from MSMEs in India. Government should make can be built up. It is necessary that the top
it mandatory for PSUs/ Government Department to management of both CGTMSE & NCGTC are
procure from MSEs up to the mandated target of 25% professionalized and sourced from a wider pool
through the GeM portal only. Y The level of collateral free lending must be increased

Y There is a need to increase the number of Facilitation from present level of Rs 10 lacs.
Councils particularly in larger States. Y Schemes like CGTMSE, CGSSI are overlapping. Hence

Y Presently, MSMEs must do multiple registrations with efforts should be made to put all these schemes under
various entities such as Udyog Aadhaar portal, GSTN, a blanket scheme. T

32 | 2021 | DECEMBER | BANKING FINANCE