NEW DELHI: Urging the industry to join hands in bringing innovative ways of financing, Union Minister Nitin Gadkari on Friday said there was no “trust deficit” between industry and the government, which has been constantly doing away with “red-tapism”.

Gadkari said the ban on the entry of corporates and private players in MSMEsector has been lifted to pave way for formation of 700 clusters in order to reduce dependence on imports as well as for job creation.

Addressing 100 CEOs from across the country in their first interaction with the new government at CII National Conference, the Micro, Small & Medium Enterprises Minister also said that to promote innovation a ‘Bank of Idea and Innovation’ was on the anvil.

“There is no trust deficit between the government and industry. Government is very positive and has faith and trust in the industry. We are bringing improvements as per suggestions of industry and request for more recommendations.

“Government is investor-friendly and wants to support industry for employment, growth and exports. It is constantly striving to usher in more reforms and industry should come forward to be a partner in this journey of growth,” Gadkari said.

Defining MSME as a sector with huge growth and employment potential, the minister said a decision has been taken to lift the ban on the entry of corporate and private sector in MSME clusters and urged them to come forward with suggestions and ideas which in turn would be supported by incentives like land.

“Private sector can work with us and I need your support. Clusters … we have sought proposals from the industry for this,” he said citing example that incense sticks worth Rs 4,000 crore were imported, which could be manufactured here.

The minister said the need was to move from import substitution to export promotion and this could lead to further progress of MSMEs.“We will encourage large enterprises to build an ecosystem of ancillaries and vendors so that MSME can contribute to produce at home. Government will support export of goods that MSME can produce, engage in skill development by building ITIs in all areas”, he said urging industry to join hands.

“Red-tapism has been removed and transparency is there,” he said adding quick permission will be given to private sector players to engage with MSMEs.

He also said that technology centres to enhance skill are also being planned so that the government becomes supporter and facilitator of entrepreneurs and “anyone can set up clusters anywhere”. Gadkari said the roads and highway sector had contributed 1.75 per cent to GDP.

Terming innovation the key to development, the minister said a new website by the name of ‘Bank of Idea and Innovation’ is likely to be launched next week where industry will be invited to give suggestions and ideas for anything focused on development and growth.

Ensuring easy availability of capital is of prime importance for sectors, he said and urged the industry to come forward for finding innovative sources of financing other than banks, especially for the MSME sector.

Stressing on the importance of rural and agriculture sector in India’s growth and development, he said the sector needed encouragement to adopt new technology.

“Besides the urban areas, the industry should also focus and give ideas on social-economic transformation of rural areas,” he said adding that bio-fuel generation should be stepped up to check Rs 7 lakh crore crude imports annually.

He also said stressed sectors like real estate should be taken care of first and helped to pull them out of their current predicament.

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