Government to assist SMEs with micro-finance facilities: Nitin Gadkari

Union Minister Nitin Gadkari said the govt is engaged in creating a national land bank for various development works, including industrial clusters

The Union Minister for Road Transport, Highways and Micro, Small & Medium Enterprises, Nitin Gadkari, virtually addressed the annual flagship Mindmine Summit event of Hero Group. He stated the government is functioning on a policy to empower microfinance institution to assist fund to even the smallest of company, a move that will create employment within the country.

The minister informed that the government subject to clearance from finance ministry and union cabinet are working on creating social micro-finance institutions which will finance up to Rs. 10 lakhs and this will be a game-changer as it will create employment potential. The role of small financial institutions is vital and has requested more cooperation from them.

 He admitted the economy is currently facing a credit crunch and this trend isn’t restricted to only India but across the world. We should always attempt to bring positivity and self-confidence within the minds of individuals. The govt will come up with a response to deal with this problem.

He continued stating leadership is all about converting opportunities into a problem. With positivity, we will overcome it and, the policies planned accordingly. The Government priority is rural, agricultural and tribal sector. Presently the MSME sector contributes 30% to the GDP growth of India, we’ve created 11 crore jobs and, 48% of our exports constitutes from MSME domain.

For MSME the govt is providing a fund of funds of Rs 50,000 crore. The MSMEs are going to be graded as per a simplified process based on its track record that shall include turnover, exports, GST, Banking and Income-Tax record. If these firms approach the capital marketplace for raising funds, we’ll be supporting them by providing them with the initial Rs. 15 crores as equity, aside from localities even foreign investors can invest through the stock market as we’ve allowed 100% FDI in Infrastructure projects.

Gadkari also informed we are working on the thought of making a vacant national land bank which will be a registry of land at state and district levels. All the key industries need to visit smaller areas and find vacant land. He quoted an example of the Chambal Express Highway beginning from Kota, Rajasthan to Itawa, Madhya Pradesh (MP). 80% of the region here is vacant and suggested to the chief minister of MP to supply land free cost and offer sops to investors thereby, generating employment for people and become life engine of the state.