JAMSHEDPUR: As part of its initiative to empower small and medium enterprises by addressing their financing needs and facilitate access to finance and credit for SMEs and MSMEs, the Confederation of Indian Industry (CII) has set up an Online SME Finance Facilitation Centre (CII FFC).
CII FFC has helped in sanctioning loan value of 150 crores to SMEs all over the country within 8 months of its launch The aim of the centre, which operates as a one-stop shop, aggregating financing options from various major financial institutions, including, is to provide advisory and credit facilitation support to SMEs.
CII Jharkhand in order to facilitate SMEs access to financial requirements, time bound delivery mechanism, sharing information about the new SME schemes by banks and financial institutions and create financial literacy among SMEs organised a Seminar on Empowering SMEs by addressing their financial needs at Centre for Excellence.
On the occasion of the launch of the CII FFC at Jharkhand , Tarun Daga, chairman CII Jharkhand State Council in his welcome address mentioned that the growth in the MSME sector ensures industrialization in backward areas and therefore helps in more equitable growth.
It has made significant contribution to industrial production, export and employment generation. He also highlighted that MSMEs are today exposed to greater opportunities for expansion and diversification across the sectors but they also face a number of challenges at various stages, which are majorly concerned with their financial requirements.
Adarsh Agrawal, chairman CII Jamshedpur Zonal Council during his address mentioned that the total gap in MSME funding is estimated to be around USD 126 Billion. He highlighted that MSMEs in India also rely heavily on private money lenders and the unorganized financial sector for their requirements, where the terms of financing are unclear and interest rates are high.
This small pool of funding providers often forces many potentially viable and growth focused MSMEs out of operation. He further mentioned that Banks and other NBFCs have been successful in making inroads and have made successful strides in order to bridge this gap and CII FFC is a welcome step in this direction.
S.K.Behera, chairman MSME Subcommittee Eastern Region mentioned that such outreach programmes in partnership with the ministry of MSME and seven partner financial institutions will be organized across the country through CII’s network of offices .
He mentioned that CII FFC will subsequently be launched in all five states in the Eastern Region which are – Chhattisgarh, Bihar, West Bengal ,Orissa and Jharkhand . He emphasized that financial requirement both Debt and Equity are major determinants for the successful operation of the SMEs and banks therefore should be seen and perceived as partners for providing financial assistants .
Amit Tripathi, deputy director, CII addressing the gathering he laid down the pivotal role played by SMEs on India’s economy and stressed upon the gap existing in demand supply in SMEs sector. He elaborated upon the need for the Finance Facilitation Centre as it bridges the gap between the financing sector and SMEs.
He also illustrated the role played by FFC in helping SMEs secure time bound finance by partnered banks.
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