From Our Special Correspondent

Daijiworld Media Network

Bengaluru, Jun 2: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has welcomed the Centre’s decision to support the MSME sector, which includes upward revision of the sector’s definition to help a wider section of companies to avail sops announced for the sector.

With this decision for the first time in the history of the Indian economy, FKCCI said, viable stressed Micro, Small, Medium Enterprises (MSME’s) will be able to come out of the non-performance assets (NPA) stigma and be able to get additional funding too in the form of subordinated debt.

FKCCI president C R Janardhana in a press statement issued in Bengaluru on Tuesday stated that the Centre has made provisioning of Rs 20,000 crore as subordinated debt to provide equity support to stressed MSME’s which is expected to benefit 2,00,000 stressed units.

Equity infusion of another Rs 50,000 crore for MSME’s through funds of funds will establish a framework to help MSME’s in managing debt-equity ratio and in their capacity augmentation, he said. 

Ministry of MSME has also created a champion website by setting up of State Champion Control rooms at MSME DIs to assist Micro Small Enterprises to become champion entrepreneurs. 

All these measures along with stimulus package announced by the Centre, the MSMEs are bound to grow in days to come with renewed vigour, FKCCI added.

FKCCI extended thanks to the Union Minister for MSME Nitin Gadkari for taking such initiatives during this difficult period, the statement said.