The government is setting up a high-level Task Force to address the problems of Micro, Small and Medium Enterprises (MSMEs) which have been demanding adequate financing and other incentives to tide over the economic slowdown.
The Task Force will submit its report within three months.
The Minister of State, MSME (Independent Charge), Dinsha Patel disclosed this after calling on Prime Minister Manmohan Singh along with industry representatives.
"Prime Minister has announced setting up of a high level Task Force to look into the problems and demands of the sector," Patel told reporters after the meeting.
Patel did not give other details of the Task Force.
The minister, who led a delegation of industry bodies like CII, ASSOCHAM and FISME, apprised Singh of the difficulties faced by the MSMEs because of the global economic slowdown and put forth suggestions that would help them tide over the problems.
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He said Singh assured the delegation that the government would provide all support to the sector, which contributes 45 per cent of the industrial output and employs 60 million people.
On making adequate credit available to the MSME sector, Patel said the prime minister had been apprised of the industry demand for earmarking 6 per cent of priority sector lending for micro enterprises.
At present, 4.9 per cent of the priority sector lending is reserved for the sector. The increase in net bank credit would translate into about Rs 17,000 crore.