MSME Scheme for marketing & Aid during Financial Crisis –

MSME Scheme for marketing & Aid during Financial Crisis –
To protect a SME from going bankrupt during a financial crisis, SIDBI or NSIC may launch a scheme similar to Japan’s Mutual Aid System, in which an interest-free loan is offered with a 7-year repayment period (which could include customer going bankrupt and a national or global crisis which threatens the business towards closure).
Banks should form an MSE Rehabilitation Cell (MRC) at their Zonal/Circle Head Quarters, as directed by the RBI, to supervise the prompt rehabilitation of sick MSE units.
The Department of Financial Services may re-examine the SARFAESI Act in order to postpone the start of recovery procedures against sick Micro and Small Enterprise debtors in order to give these small businesses more time to recover. This is important because no remedial mechanism exists, either within or outside the Act, to assist in the revival of potentially viable MSMES.
The Ministry of MSME may move quickly to establish a National Portal, which would allow MSME suppliers to provide competitive deals via a web interface. This must be done in a unique way to meet future needs, with interconnections between service providers in both communications and logistics embedded into the business model.
Through programme intervention and advocacy by promotional departments, appropriate collaborations with B2C (Business to Customers) e commerce platforms to significantly upscale e-commerce in the country and enable the buyer on the virtual market to access both niche and mass consumption products in various quantities may be encouraged.
The Department of Electronics and Information Technology may take required steps, such as prohibiting the admission of technically inferior items into the country, to promote domestically created products and counter imports in the ESDM sector. The government may establish a Technology Development Fund to fund R&D by the automotive industry in order to facilitate import substitution and increase exports.
To aid international marketing, the Department of Commerce/DGFT may conduct a product-by-product analysis of export potential in various destination countries. This would not only assist MSME suppliers, but it would also provide a visible foundation for the Department of Commerce’s focus product and focus market programmes.

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