Industry body CII today said it is in the process of working with banks and other financial institutions to address concerns over access to funds for micro, small and medium enterprises (MSME). "Access to finance is one of the prime areas of concern for Indian SMEs. We are trying to address the concern along with banks and other financial institutions," said R Narayanan, Head, CII-Avantha Centre for Competitiveness for SMEs here today.
"Large companies can play a critical role in helping MSMEs access finance and technology," said Narayanan. He added that the forthcoming National Cluster Summit of CII Avantha Centre from October 18-20 at Gurgaon will deliberate in detail on this issue with industry participation from various Banks, including organisations such as Small Industries Development Bank of India (SIDBI). "In going with an OEM (Original Equipment Manufacturers) approach, we have found that it is easy to reach SMEs through OEMs.
Also large OEMs are able to visualise the benefits and get it over to the SMEs," said Narayanan, while speaking on the sidelines of visit of the international delegation to the Centre. He said such an approach leads to strengthening of the supply chain for the big companies and may open up new ways of financing for the SMEs, which the Centre is trying to chalk out in tune with big companies, banks and SME companies. A 33-member International delegation visited CII Avantha Centre in Chandigarh today to understand its various activities. The delegates were from countries, including Afghanistan, Serbia, Armenia, Oman, Mauritius, Tanzania, Ghana, Uzbekistan, Lithuania, Mongolia, Ethiopia, Syria, Sudan, Sierra Leone, Bhutan, Fiji and Zimbabwe.
The delegation was part of International Programmes on Cluster Development - Emerging Strategy/MSMSE Entrepreneurship (CDES-MSME). CII Avantha Centre works with government, especially Ministry of Small and Medium Enterprises (MSME) on improving competitiveness of Micro, Small & Medium units in Indian industry by advocating the setting up of the Lean cluster Scheme for MSMEs as well as awareness campaigns for MSME programmes.