The Prime Ministers Office (PMO) is working on the report presented by the task force
, which was constituted to make recommendations in order to help the MSME sector.
The PMO is taking a final view on the task force suggestions and is likely to act on it. The recommendations will be put forth before Prime Minister Manmohan Singh very soon, said a senior official who along with other officials of different ministries and nationalised banks attended the meeting held by the task force, headed by PMs principal secretary, TKA Nair.
The task force has also sought intervention of the Ministry of Finance and the Reserve Bank of India (RBI) to increase credit support to the MSME sector that employs 42 million people. It has asked for a mechanism at the district level for early identification of sick units.
Stepping up bank credit and undertaking adequate measures for the revival of sick units will promote the growth of the MSME sector, said Pankaj Bakshi, director of Suvan Steel, a small-sized steel supplier in Jamshedpur, Jharkhand.
The clearance of recommendations such as facilitating SMEs with easy access to credit from banks and other financial institutions and ensuring greater reservation in public sector procurement for MSMEs can help resolve some of the problems being faced by the sector.