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The Hindu
a day ago
- Business
- The Hindu
Efforts on to revive effluent plant project in Edayar industrial area
The government is exploring options to revive the project to set up a common effluent treatment plant (CETP) for industrial units along the Eloor-Edayar stretch of the Periyar. The much-delayed project was expected to get a push after the government had earmarked around ₹30 crore towards a ₹250-crore assistance promised by the Small Industries Development Bank of India (SIDBI) for setting up CETPs in various industrial estates in the State. However, the Centre's borrowing restrictions on the State had delayed its implementation. Industries Minister P. Rajeeve said on Tuesday that the restrictions on taking loans had impacted the CETP project under assistance from the SIDBI. However, the government was looking at whether it could be included under the Guarantee Redemption Fund (GDR), which was meant to cover government guarantees offered for loans availed by public sector entities and cooperatives, he said. The monthly progress report on the updated status of the short- and long-term projects for the rejuvenation of the Periyar submitted before the Ministry of Jal Shakthi for May had quoted a decision taken at a meeting called by the Chief Secretary on February 9, 2023 saying that the CETP project might be dropped. All the units may be advised to have their own facilities for treatment of effluents. The fund allotted for the project may be utilised for any other liquid waste treatment project, it said. According to the detailed project report for the CETP in Edayar, the proposed plant will have the capacity to treat two million litres per day. A preliminary report prepared by the Kerala Water Authority said that the site identified for the project was close to the north-western portion of the industrial estate, which was previously occupied by the now defunct Periyar Chemical Industries. There was sufficient land with a facility to discharge to the downstream of the Pathalam regulator-cum-bridge of the Periyar, it said.
Time of India
04-06-2025
- Business
- Time of India
Pune to host conference on banking and MSMEs on Sunday
Pune: Sahakar Bharati and the Global Indian Origin Network, an accountants' collective, have organized 'Banking and MSME Sector Conclave 2025' in the city on Sunday to fill the gaps in awareness regarding banking among micro and small enterprises. "Several MSMEs do not have a clear understanding of presenting their financials or collateral while taking a loan from a bank. Creditors, on the other hand, lack data on MSMEs, which makes providing loans much more difficult," Dinesh Gandhi, chairperson of Sahakar Bharati, said on Wednesday. A recent study by the Small Industries Development Bank of India (Sidbi) stated that the MSME sector has an addressable credit gap of up to Rs 30 crore. The credit gap is higher for women-led MSMEs. The study suggested policy changes to address the issues. Additional concerns such as provisions related to goods and services tax (GST), single window clearance and Mudra loans, will also be addressed in the conference, Gandhi said. The report stated that Maharashtra leads in the number of registered MSMEs at 80 lakh units, followed by Uttar Pradesh at 65 lakh, Tamil Nadu at 49 lakh, West Bengal at 43 lakh and Karnataka at 41 lakh. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The price of dental implants may surprise you Dental Implants | Search Ads Search Now Undo Around 400 entrepreneurs are expected to attend the conference, while experts including Satish Marathe, founding member of Sahakar Bharati, Vidyadhar Anaskar, chairperson of Maharashtra State Cooperative Bank and Abhay Firodia, chairperson of Force Motors, will guid the businesspersons. Maharashtra industries minister Uday Samant is expected to attend the event. Pune: Sahakar Bharati and the Global Indian Origin Network, an accountants' collective, have organized 'Banking and MSME Sector Conclave 2025' in the city on Sunday to fill the gaps in awareness regarding banking among micro and small enterprises. "Several MSMEs do not have a clear understanding of presenting their financials or collateral while taking a loan from a bank. Creditors, on the other hand, lack data on MSMEs, which makes providing loans much more difficult," Dinesh Gandhi, chairperson of Sahakar Bharati, said on Wednesday. A recent study by the Small Industries Development Bank of India (Sidbi) stated that the MSME sector has an addressable credit gap of up to Rs 30 crore. The credit gap is higher for women-led MSMEs. The study suggested policy changes to address the issues. Additional concerns such as provisions related to goods and services tax (GST), single window clearance and Mudra loans, will also be addressed in the conference, Gandhi said. The report stated that Maharashtra leads in the number of registered MSMEs at 80 lakh units, followed by Uttar Pradesh at 65 lakh, Tamil Nadu at 49 lakh, West Bengal at 43 lakh and Karnataka at 41 lakh. Around 400 entrepreneurs are expected to attend the conference, while experts including Satish Marathe, founding member of Sahakar Bharati, Vidyadhar Anaskar, chairperson of Maharashtra State Cooperative Bank and Abhay Firodia, chairperson of Force Motors, will guid the businesspersons. Maharashtra industries minister Uday Samant is expected to attend the event.
Indian Express
25-05-2025
- Business
- Indian Express
P Chidambaram writes: Why no jobs for most youth?
There are two recent reports on the Micro, Small, Medium Enterprises (MSME) sector, one by the Small Industries Development Bank of India (SIDBI) and the other by NITI Aayog. Both are official reports. There is also the Annual Survey of Unincorporated Sector Enterprises (ASUSE). What are the basic facts about the Micro, Small and Medium Enterprises (MSME) sector that can be gathered from the two reports? 🔴 Under the current classification, Micro enterprises have an investment limit of up to Rs 2.5 crore and turnover limit of up to Rs 10 crore; Small have up to Rs 25 crore and up to Rs 100 crore; and Medium have up to Rs 125 crore and up to Rs 500 crore. By this classification, it will be clear that all but a few thousand enterprises in India are MSME. 🔴 The distribution of the total number of MSMEs is skewed in favour of Micro: the shares are Micro — 98.64 per cent; Small — 1.24 per cent; and Medium — 0.12 per cent only. 🔴 Ownership is proprietorship (59 per cent), partnership (16), LLP (1), private limited company (23) and public limited company (1). 🔴 There are approximately 7,34,00,000 MSMEs in India. Of these, about 6,20,00,000 are registered on the Udyam Portal as on March 2025. 🔴 There is a credit gap of about 24 per cent in the MSME sector (about Rs 30 lakh crore); in the services sub-sector the gap is 27 per cent and in women-owned enterprises it is 35 per cent. 🔴 MSMEs contributed approximately 45 per cent of India's merchandise exports in 2023-24. In absolute terms, the number of exporting MSMEs was 1,73,350 in 2024-25 (that is a fraction of 1 per cent of the total number of MSMEs). The key goods that are exported are ready-made garments, gems and jewellery, leather goods, handicrafts, processed foods and auto components — all but one, low technology goods. 🔴 There is a plethora of credit support schemes and development schemes for MSMEs. Reading the reports, I counted at least two subsidy schemes, four credit guarantee schemes and at least thirteen development schemes. The Budget for 2025-26 announced a scheme for first-time entrepreneurs and a credit card scheme. It also announced a new Fund of Funds, a Deep Tech Fund of Funds and a revamped Street Vendors Nidhi (PM SVANidhi). 🔴 MSMEs are the primary source of employment generation. It is claimed that the total employment generated by the sector is around 26 crore. Now, let's come to the central question of this essay. Among the major challenges in the MSME sector, the reports list — ** Skilled labour shortages, skill gaps and difficulty in attracting talent. These findings tell the whole story of unemployment in the country. It is fair to assume that larger industries (with investment of over Rs 125 crore and turnover of over Rs 500 crore) employ persons with higher educational qualifications and higher skills which the bulk of the unemployed do not possess. On the other hand, MSMEs need labour; yet, if they have labour shortages and difficulty in attracting talent, why? The regrettable but inescapable conclusions are, firstly, that the applicants for jobs do not have the education or the skills to fill the jobs. And, secondly, that the jobs on offer are not attractive because of the structure of the enterprise or the emoluments. Matching the structural facts and the employment outcomes, it is not difficult to infer the reasons why there is high unemployment among the youth of India. 🔴 the population of India in April 2025 was 146 crore. 🔴 the labour force participation rate (LFPR) is the percentage of the population that is either working or actively seeking employment. It is 55.6 per cent or about 81 crore. 🔴 the worker population ratio (WPR) defines the proportion that is employed among the total population. It is 52.8 per cent or about 77 crore. 🔴 the absolute number of persons who are unemployed is the difference, namely, 4 crore. That's a large number but, remember, it is out of the number 'actively seeking employment'. There are many millions who have given up seeking employment for different reasons. the official unemployment rate is 4 crore/81 crore which equals 5.0 per cent. The overwhelming number of MSMEs are 'micro'— 98.64 per cent. Together with the fact that proprietorship and partnership constitute 75 per cent of all MSMEs, it is abundantly clear that the bulk of the 26 crore 'employed' are family members and relatives working in family-run enterprises. It is the 'small' and 'medium' (1.36 per cent of MSMEs or about 10,00,000) that actually employ people where there is a master-and-servant relationship. 🔴 The 'supply' side of jobs has to come from the 10,00,000 MSMEs. 🔴 The 'demand' side for jobs has to come from the young men and women who are school drop-outs or have a school education or have a basic arts or science degree. The potential employers are hit by lack of credit, the oppressive regulations, and the multiple schemes and compliances. The potential employees are hindered by the lack of quality education, lack of skills and absence of training — in short, there is little 'talent'. Governance should focus on these shortcomings. The first stop is school education with skills training. The next stop is helping SMEs (note that I have dropped the M) with just one liberal credit-cum-interest subsidy scheme. Keep it simple.
Time of India
13-05-2025
- Business
- Time of India
Sector-specific policies must to bridge credit gap for MSMEs: SIDBI
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The Small Industries Development Bank of India (Sidbi) has called for sector-specific policy interventions to bridge the credit gap in the micro, small and medium enterprises (MSMEs) sector, while also highlighting the potential of digital lending in addressing the a report, Sidbi said the sector has a credit gap of ₹30 lakh crore, with the gap being higher for a few pockets within the sector, such as service and women-owned report titled "Understanding Indian MSME Sector: Progress and Challenges" points out that sectors such as readymade garments (RMG), grocery retailers, food processing and IT/ITeS have a higher credit gap and need interventions specifically designed for the report, Sidbi surveyed 2,097 MSMEs across 19 sectors in manufacturing, services and report underscores the high degree of borrowing from informal sources by micro enterprises, which is at 12% compared with small and medium enterprises at 3% and 2%, states that although 90% of the survey respondents have reported accepting digital payment, only 18% have taken advantage of digital lending. Formalisation still poses a challenge, "with 35% of respondents remaining unregistered, reflecting lack of awareness and fear of scrutiny", the report said.
The Hindu
13-05-2025
- Business
- The Hindu
Lack of access to credit, manpower shortage major challenges to MSMEs, shows SIDBI study
Lack of access to 'timely and adequate' credit and shortage of manpower are among the key challenges that Micro, Small and Medium-scale Enterprises (MSMEs) face, according to a Small Industries Development Bank of India (SIDBI) report titled 'Understanding the Indian MSME Sector: Progress and Challenges'. The report, which is based on a survey of 2,000 MSMEs in 19 sectors, says that despite comprehensive policy initiatives, MSMEs do not have access to adequate credit when they need it. About 3% of the total borrowings of MSMEs is from informal sources while the numbers stand at 2% for small and medium enterprises and 12% for micro enterprises. A press release said the study broadly estimates 'the sector still has an addressable credit gap of about 24% or ₹30 lakh crore.' The gap is higher in the services sector at 27% and is estimated to be higher at 35% for women-owned MSMEs too, indicating a need for targeted policy actions, the release added. More number of MSMEs are likely to adopt digital tools for credit access when supported by platforms such as UPI as 18% of MSMEs use digital lending platforms and 90% accept digital payments. Around a fourth of the surveyed MSMEs cited lack of skilled manpower as one of their major challenges. The shortage is high in defence equipment, readymade garments, hotel sectors, and tiles and sanitaryware, the report said.
