Nirmala Sitharaman to meet stakeholders for actions proposed by U.K. Sinha Committee to boost MSMEs

Finance Minister Nirmala Sitharaman will meet with the concerned stakeholders within the next week to finalise decisions to be taken and timelines for action required with respect to the Expert Committee on MSMEs

Finance Minister Nirmala Sitharaman will meet with the concerned stakeholders within the next week to finalise decisions to be taken and timelines for action required with respect to the Expert Committee on MSMEs headed by former SEBI Chairman U.K. Sinha and aimed at enhancing the competitiveness and credit accessibility for MSMEs, the Finance Ministry said in a statement however the day for the meeting wasn’t disclosed. The eight-member committee was set up in January this year by the Reserve Bank of India to review and support the sector with the economic and financial sustainability apart from locating structural problems impacting its growth etc. The committee had submitted its report in June this year.

The minister would meet representatives from various ministries, viz. MSME, Electronics and Information Technology, Rural Development, Health and Family Welfare, Corporate Affairs, apart from multiple departments including Commerce, Industrial Promotion, Telecom, Revenue, Expenditure, and SIDBI, NPCI etc., as “many of the actions proposed by the Committee involve inter-ministerial or inter-agency coordination,” the ministry said.

The U.K. Sinha committee in its report submitted had made “over a hundred far-reaching recommendations for the MSME sector,” according to the ministry, including ‘reimagining’ MSMED Act, 2006, for a holistic MSME code, ‘more focused’ role of SIDBI with state governments for MSME development, along with issues pertaining to delayed payments, venture capital financing for MSMEs, micro and small enterprises facilitation council, cluster development 2.0, encouraging technology adoption, increasing limit for non-collateral loans to Rs 20 lakh, cash-flow based lending by banks, rural MSMEs access to digital payments and commerce, restructuring of NPA accounts, making MSME Ministry the nodal ministry for all ‘interventions’ pertaining to the MSME sector etc.

Meanwhile, the ministry said that Nirmala Sitharaman will meet heads of all public and private sector banks on Monday (August 5) for reviewing matters with respect to credit growth in “important sectors of the economy such as MSMEs, retail, automobiles, affordable housing, NBFCs/ HFCs” apart from priority areas for banks in the upcoming months to boost GDP growth.

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