CII Communique July 2011

msmesprogramme to identify and help acquire US SMEs byIndian mid-sized firms would be a win-win for both parties,and will be possible once an institutional mechanismis set up between MSMEs in the two countries. India’snational manufacturing policy envisages the setting up ofa special fund to help Indian firms acquire firms abroadwith specifically these objectives, he added.Mr Ramesh Datla, Chairman, CII National MSME Council,noted that US MSMEs have long expertise in theirdomestic market, and Indian MSMEs are already lookingto invest/acquire them as they develop supply chainslinking India and the US. Such JVs and acquisitionsare helping Indian firms to build on their US partners/acquisitions business networks and get a better idea ofproduct development for the US market, he observed.The contribution of MSMEs in trade engagement as wellas cross border M&A is increasing. Involving companiesfrom both sides will help in achieving bilateral tradetargets. CII is strongly in favour of constituting anMSMEs CEO Forum to address the specific needs andinterests of small and mid sized companies, said MrGurpal Singh, Deputy Director General, CII.The CII delegation, during their visit to WashingtonDC, also met with Mr Aaron Brickman, Director, InvestAmerica, Ms Holly Vineyard, Deputy Assistant Secretary,US Department of Commerce, Mr. Joe Bhatia, President& CEO, ANSI, Mr. Mark Pearl, President & CEO,Homeland Security and Defense Business Council.They also visited the US Green Building Council andthe International Finance Corporation.MSME Conclave: Challenges & SustainabilityFinance, Marketing,Exports, Technology, Quality,and Skill up-gradation, arethe major challenges facingthe MSME sector, which isconsidered the backboneof industrialization in India.To brainstorm and discussthese challenges, the CIIHimachal Pradesh StateCouncil organized the MSME Conclave with the theme‘Challenges and Sustainability’ on 17 June in Baddi,Himachal Pradesh. The Conclave was organized jointlywith the BBN Industries Association.Mr Virbhadra Singh, Union Minister for MSMEs, and MrKishan Kapoor, Minister for Industries, Himachal Pradesh,participated in the Conclave, which was attended bymore than 150 MSME representatives from throughoutthe state.Mr Singh accepted the long-pending demand for settingup a Tool Room for skill development, and sanctioneda Tool Room to be established with 90% funding by theMSME Ministry to a maximum limit of Rs. 9.0 crore, withthe remaining 10% to be borne by industry through aSpecial Purpose Vehicle. Land for this was committedby the State Government.Mr Singh also spoke about the implementation of theCredit Linked Capital Subsidy scheme for assistingMSMEs for technology upgradation. The schemeprovides 15% capital subsidy on institutional loans up toRs one crore. To facilitate credit for MSMEs, he said thatRajiv Malhotra, Chairman, CII HP State Council; Virbhadra Singh, Union Minister for MSME; andKishan Kapoor, Minister for Industries, Himachal Pradesh, at the MSME Conclave in Baddithe government is implementing the Credit GuaranteeScheme which covers up to 85% on collateral-free creditfacility for loans up to Rs 100 lakh to ensure better flowof credit, by minimizing the risk perception of financialinstitutions in lending without collateral security.The Conclave was also addressed by Ms Harinder Hira,Additional Chief Secretary, Industries, Himachal Pradesh,and Dr Shyam Aggarwal, Development Commissioner,Union Ministry of MSME. Mr Raman Saluja, Chairman,Regional Committee on MSME, CII (NR), Mr RajivMalhotra, Chairman, CII Himachal Pradesh StateCouncil, and Mr Arun Rawat, President, BBN IndustriesAssociation, and Convenor – MSME Panel, CII HimachalPradesh, also spoke.There were thorough discussions on financing and creditratings with representatives of the country’s leadingfinancial institutions and rating agencies. The Conclavealso featured presentations by representatives of theNational Institute of Design, highlighting the importanceof design, and describing the Design Clinic Scheme forMSMEs, initiated by the Union Ministry of MSME.36 | July 2011 Communiqué