Tag: Indian MSMEs

Categories
MSME

Bank of Maharashtra Aims To Resolve About 25 Stressed MSME Loans Under Pre-Packaged Insolvency Resolution Process

Mumbai, April 24: In a bid to help the stressed micro, small and medium enterprise (MSME) sector, the State-owned Bank of Maharashtra is looking out to roll out a plan at resolving 20-25 stressed MSME accounts under the pre-packaged insolvency resolution process. The news was announced by a senior bank official, a report by PTI said. Earlier this month, the government had introduced a pre-packaged insolvency resolution process for stressed MSMEs by amending the insolvency law.

With the coronavirus pandemic, several sectors have taken a major hit. Bank of Maharashtra’s general manager (credit – large and mid-corporate, MSME) Sanjay Rudra said with the outbreak of the COVID-19 crisis, the stress on hospitality, luxury retail, tour operators, lodging and restaurant operators has increased considerably. “I expect around 20-25 stressed MSME accounts to be resolved under the pre-packaged insolvency resolution regime in the coming months,” he said.

Rudra said this during a webinar organised by MVIRDC World Trade Center, Mumbai and All India Association of Industries.

Here’s how to stressed MSME would benefit:

  1. Under a pre-packaged process, main stakeholders such as creditors and shareholders come together to identify a prospective buyer and negotiate a resolution plan before approaching the National Company Law Tribunal (NCLT).
  2. Rudra said under the pre-packaged insolvency resolution system, the government has given an opportunity for MSMEs to resolve their stress at an early stage while holding control over their business.
  3. “Now, MSMEs should maintain complete transparency in the whole resolution process to regain trust and confidence of lenders,” Rudra said.

Meanwhile, AZB & Partners cofounder Bahram N Vakil said MSME promoters should file for resolution with the NCLT only after having a robust base plan. According to a report by PTI, Vakil said that if the promoters could come out with a resolution plan with a minimum possible haircut for operational creditors and if it is also acceptable to the committee of creditors, then the chances of such plans being challenged in the Swiss challenge auction are less.

 

 

Categories
Startup

CHUNAUTI Startup Challenge: STPI Receives Over 6,500 Applications For The Challenge Hunt

startup ipo india

With an aim to encourage innovation and entrepreneurship in the key sectors across India, the Software Technology Parks of India (STPI) announced that it has received 6,708 applications for the Challenge Hunt under Next Generation Incubation Scheme (NGIS) by Advancing Uninhibited Technological Intervention (CHUNAUTI). In August 2020, CHUNAUTI was launched by Electronics and IT Minister Ravi Shankar Prasad. The program aims to identify around 300 startups working in selected areas and provide them with a seed fund of up to Rs 25 lakh and other facilities.

According to a report by PTI, the government has earmarked an amount worth Rs 95.03 crore over three years for the programme. About 1,820 applications qualified and 111 applicants were selected for the presentation round, a statement said. The consolidation of scores and the finalisation of results is underway. The final list of selected startups will be announced soon that will be incubated by STPI and be provided with stipends/seed funding and other facilities to set up their venture, it said.

The report said that maximum applications were received for edtech, agri-tech and fintech sectors (767), followed by jobs and skilling, linguistic tools and technologies and healthcare sectors at (312) and (308) applications, respectively. In terms of regions, Maharashtra leads the tally with 215 applicants followed by Uttar Pradesh (199), Odisha (138) and Madhya Pradesh (129).

“The initiative aligns with our vision to foster an innovative ecosystem for the development of indigenous software products. The selected startups will receive end-to-end support through financial assistance and mentorship that will encourage innovation and entrepreneurship in the key sectors,” Omkar Rai, Director General of STPI, said.

Categories
MSME

MSME Sector in India Has Huge Potential To Become World’s Largest Manufacturing Hub, Says Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, March 13: Union Minter Nitin Gadkari on Saturday said that the micro, small and medium enterprises (MSMEs) sector in India has a huge potential to become the world’s largest manufacturing hub. During a webinar on ‘Aatmanirbhar Bharat – Opportunities in Solar & MSME’ on Friday, Gadkari said that the government is committed to promoting renewable energy resources in the country, especially in the MSMEs sector.

The Minister, who holds the MSME portfolio along with road transport, said by making solar energy available, “we will create big market for electric vehicles”.  He said that the solar power rate in India is Rs 2.40 per unit and commercial rate of power is Rs 11 per unit and the cheap power generated through solar energy can be used for automobiles and other developmental works.

He expressed confidence that within five years, India will be a top manufacturing hub for automobiles in the world. While speaking about the businesses in India, the minister highlighted that India has tremendous potential and capacity for electricity generation. Gadkari invited investors abroad to invest in Indian MSMEs.

During his address, he expressed hope that this will provide a number of opportunities to the MSME sector in the country to become the world’s largest manufacturing hub. Talking about the growth of MSMEs in India, Gadkari said that the MSMEs with good track record are now being encouraged for capital market, adding that there exists a huge opportunity for investment in scrapping policy.