The Centre will impart vocational training to 40 lakh young people during the 12 Plan period, of which six lakh will be trained during this year, said Micro, Small and Medium Enterprises (MSME) Secretary, R.K. Mathur on Monday.
Addressing the ‘India MSME Communication Programme 2012’ and the launch function of ‘India MSME Report 2012,’ prepared by ISED Small Enterprises Observatory, he said during the 12 Plan period his Ministry would focus on five heads — skill development, marketing, technology, finance, infrastructure and database.
“Though it is five heads, we have added database in which we are still poor in utilising it. State government is the prime mover of infrastructure and we are providing necessary intervention, wherever it is possible. MSME has to bring in technology to be competitive or acquire overseas firms with technology,” he said.
Elaborating about the skill development programme, Mr. Mathur mentioned that the Centre had drawn up plans to train 50 crore people by 2022.
He invited suggestions and proposals from the industry associations to train youths in the respective cluster and said that Centre would provide some grants and rest has to be raised by the industry associations.
Procurement policy
Regarding the procurement policy, which states that 20 per cent has to be reserved for MSME, he said that at present the procurement from MSMEs were low and the Ministry was working out ways to improve it.
While asking the banks to lend more funds to MSMEs, he asked the officials to refrain from publishing the names and photographs of entrepreneurs who failed to repay their dues.
“It is highly undesirable and aberrant. We should not denigrate a man. There are better methods of doing it. Funding will not be a problem once Factoring Services comes into force. We are pushing banks to roll it out on a larger scale and quickly,” he said.
Tamil Nadu commended
TANSTIA president K.R. Thangaraj said MSME faced major challenges — the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, increasing bank lending rates, fuel and raw material prices and urged the Centre to bail them out.
Yerram Raju, senior fellow ISED, said Tamil Nadu ranked first in auto components, spinning textiles, leather and pharma, while Gujarat in other fields.
He commended the State government for releasing a separate policy on MSME within Industrial policy and said that Tamil Nadu was able to attain unique position in this sector as industrial clusters were spread throughout the State.
R. Balakrishnan, Additional Chief Secretary and EDI Director, said funds were indeed available to MSME, but the crux was inability of the sector to access it.
He urged the ISED to collate and analyse details of MSMEs in each sector, level of sickness, region-wise and industry-wise and distribute it to entrepreneurs and banks.
