MICRO, SMALL AND MEDIUM ENTERPRISES SECTOR WILL BE REVAMPED

msmeTECHNOLOGY CENTRE NETWORK TO BE ESTABLISHED

The Union Finance Minister Shri Arun Jaitley while presenting the General Budget 2014- 15 in Parliament today said that the financial structure of Micro, Small and Medium Enterprises  (MSME) sector, mainly owned or run by SCs, STs and OBCs which is of critical importance, has  to be strengthened. For this purpose, he proposed to appoint a committee with representatives  from Finance Ministry, Ministry of MSME and RBI to give concrete suggestions in three  months.

The Finance Minister stated that the promotion of entrepreneurship and start-up  companies remains a challenge. In order to create a conducive eco system for the venture capital  in the MSME, he proposed to establish a Rs. 10,000 crore fund to act as a catalyst to attract  private Capital by way of providing equity, quasi equity, soft loans and other risk capital for  start-up companies.

The Finance Minister also announced to establish Technology Centre Network to  promote innovation, entrepreneurship and agro-industry. He proposed in the Budget to set-up a  corpus fund of Rs. 200 crore.

The Finance Minister has announced to develop an entrepreneur friendly legal  bankruptcy framework for SMEs to enable easy exit. He said that a nationwide “District level  Incubation and Accelerator Programme” would be taken up for incubation of new ideas and  providing necessary support for accelerating entrepreneurship.