The government on Monday said it would take steps to enhance credit flow to the country’s cash-strapped small and medium enterprises, on the lines suggested by a government-appointed task force.
“The government will take necessary steps to expeditiously implement the recommendations of the task force on micro, small and medium enterprises,” President Pratibha Patil said. “These include improved credit access, development of infrastructure, strengthening of the district industries centres, improved raw material supply, facilitating product marketing, and institutional reforms.”
The task force, headed by TKA Nair, Principal Secretary to the Prime Minister, has recommended an additional public spending of Rs 5,000 crore to Rs 5,500 crore over the next three to five years to target deficiencies in the infrastructure set up. The funds would be used to support the establishment of rehabilitation funds in states for the revival of potentially viable sick units and help small and medium companies in acquiring the latest technology.
“The MSME sector is vital for sustained and inclusive growth,” Patil said. “We will work to create an environment which encourages investments, including in micro, small, and medium enterprises.”