COSIA (Chamber of Small Industries Association) and TSSIA (Thane Small Scale Industries Association) in collaboration with FISME (Federation of Indian Micro and Small & Medium Enterprises) and GAME (Global Alliance for Mass Entrepreneurship) successfully hosted a highly engaging Roundtable Discussion on “MSME Access to Finance and Policies for Ensuring Timely Payments to MSMEs” at Thane on 14th May 2024. The event saw enthusiastic participation from representatives of Public Sector Banks, Private Commercial Banks, Multistate Cooperative Banks, SIDBI, MSMEs, large buyers, Representatives of Industry Associations, subject matter experts, and government officials.
The session commenced with a warm welcome by Mr. Ninad Jaywant, Hon. General Secretary of COSIA, who greeted the participants and special guests, including Mrs. Viju Sirsath, Joint Director of Industries for the Konkan Region. Following this, Mr. Mayank Gaur, Joint Secretary of FISME, provided the opening remarks and moderated the sessions.
Session 1: MSMEs’ Access to Finance
Mr. Ramesh Dharmaji of GAME set the stage by outlining the objectives of the roundtable discussion. His presentation on “MSMEs’ Access to Finance” highlighted the current challenges and opportunities within the sector. Key points of discussion included:
- Challenges in Obtaining Finance: An open discussion revealed common obstacles faced by MSMEs in securing financing, such as stringent lending criteria and lack of collateral.
- Government Schemes and Initiatives: Participants explored various government schemes designed to support MSME financing, emphasizing the need for greater awareness and accessibility.
- Role of Banks and Financial Institutions: The facilitated discussion focused on how banks and financial institutions can better support MSMEs, with suggestions for more flexible and tailored financial products.
FISME and GAME representatives concluded this session by summarizing the key takeaways and proposing actionable steps forward.
Session 2: Policies for Ensuring Timely Payments
The second session, focusing on policies for ensuring timely payments to MSMEs, began with joint opening remarks by Mr. Purushottam Agwan, VP of COSIA, and CA Nandan Khambete, Committee Member of TSSIA and Advisor of COSIA. Mr. Ramesh Dharmaji’s subsequent presentation covered the impact of delayed payments on MSMEs, leading to the following discussions:
- Impact of Delayed Payments: An open discussion highlighted the severe effects of delayed payments on MSME operations and cash flow.
- Legal Framework under the MSMED Act: A group analysis examined the existing legal provisions for timely payments and identified areas for improvement.
- Role of TReDS: The discussion included insights from representatives of TReDS platforms like Invoicemart and RXIL, showcasing how these platforms facilitate timely payments.
- Best Practices to manage delayed payments: Participants shared best practices and strategies for managing delayed payments.
Mr. Mayank Gaur of FISME concluded the sessions with a summary of the discussions and thanked all participants for their valuable contributions.
The roundtable discussion provided a significant platform for stakeholders to engage in meaningful dialogue on enhancing MSME access to finance and ensuring timely payments. The collaborative efforts and diverse perspectives presented during the event are expected to contribute to the development of more effective policies and support mechanisms for MSMEs. The findings of these sessions will be shared with the Ministry of MSME – Government of India for guiding policy and legislative changes to address the various issues faced by MSMEs regarding access to finance and delayed payments.