The ministry of micro, small and medium enterprises (MSMEs) has hinted that it has no objections regarding the Khadi and Village Industries Commission’s (KVIC) plans for private participation in managing eight outlets, though a formal proposal is yet to come from the commission.
“No such proposal has come to me so far, will examine one it is submitted. For this proposal, KVIC has to take an approval from the government. However, I have no hang ups,” said Virbhadra Singh, Union minister for MSMEs. This comes after a Business Standard report that Fabindia, Shoppers Stop and four others have shown interest in a public-private partnership with Khadi Bhawans to manage eight outlets.
According to it, three Mumbai-based retailers have submitted a joint expression of interest (EoI) for the PPPs with the Khadi Bhawans. The proposal is for a 51-49 per cent partnership, where 51 per cent will be with the corporate entity. The eight outlets include Delhi, Mumbai, Kolkata, Ernakulam, Goa, Bhopal, Patna and Agartala. Singh later clarified that the ministry will decide it according to the merit.
The minister also extended the Centre’s support to the new West Bengal government led by Mamata Banerjee. “I hope the new government would revive the industry in the state, which was on a stagnant mode for some time,” he added.
BSE’s SME Exchange on track
The Bombay Stock Exchange (BSE), which is awaiting a final nod from the Securities and Exchange Board of India (Sebi), will meet the regulator on July 18 for seeking clarity on some regulatory issues.
“We are meeting the Sebi officials to seek clarification on who can be the sub-syndicate members or who can do the sub-underwriting. Secondly, there is no mechanism for providing 5 per cent inventory to the market makers if they run short of the shares,” said Lakshman Gugulothu, CEO, BSE SME Exchange in Kolkata today.
The CEO further added that BSE SME is expecting SEBI’s approval in a couple of weeks to set up the SME exchange. “We have already started our campaigns. Here we have to mobilise the small and medium enterprises (SMEs). If we get the final approval by July end, we can start the SME trading in bourses from September this year,” added Gugulothu.
