Govt to address credit needs of small units

The government will address the credit needs of the tiny and small firms, while a separate fund for enterprises in the unorganised sector is proposed, new Minister for Micro, Small and Medium Enterprises Dinsha Patel said after taking charge.

"In the coming months, our focus area would be to evolve mechanism and structures for addressing the credit need of the sector which is largely unorganised," he said.

The 72-year-old minister said the Ministry of Micro, Small and Medium Enterprises (MSME) would push for a separate fund for enterprises in the unorganised sector.

The ministry would also propose a 'Procurement Policy', which would set targets for the government departments and institutions to source their requirement from the tiny and small units.

Patel would interact with the state governments on the issues and problems faced by the MSME sector. A review of the Khadi sector would be carried out and reforms brought in production and marketing of the Khadi products.

"An overall review of the Khadi sector will be carried out to bring in reforms...with the aim of empowering artisans," he said. The schemes recommended by the National Manufacturing Competitiveness Council for enhancing productivity of the MSME units would be operationalised.

Employing 42 million people, the MSME contributes to about 45 per cent of the country's total industrial output and 40 per cent of exports.