MSMEs, start-ups, women entrepreneurs looking for funds? GeM, SIDBI to help
GeM and SIDBI will take steps to ensure payments within a guaranteed time frame to sellers, enhance working capital availability through bill discounting and control NPAs through control of end use, a government statement stated.
Government e-Marketplace (GeM) has tied up with Small Industries Development Bank of India (SIDBI) to help micro, small and medium enterprises (MSMEs); women entrepreneurs; Self Help Groups (SHGs); women self-help groups and various other beneficiaries to get loans under MUDRA and Stand-up India scheme.
This MoU will enable the promotion of government's special initiatives of GeM like Womaniya and Start-up Runway with SIDBI stakeholders. GeM and SIDBI will take steps to ensure payments within a guaranteed time frame to sellers, enhance working capital availability through bill discounting and control NPAs through control of end use, stated a statement from Ministry of Commerce & Industry.
GeM CEO, Talleen Kumar, said that partnership with financial institutions like SIDBI is necessary in GeM’s journey towards outreach to MSMEs, micro enterprises, start-ups, and artisans, who can now also sell their products to the government on an open, transparent and technology-driven platform.
"The government marketplace wants to empower these sellers through the payments within a guaranteed time frame by auto-debiting GeM Pool Account, provide working capital by giving the choice of Bill Discounting to MSMEs – with only PSU banks initially, by linking cost of working capital to the performance and rating of the seller, and by providing creditors better visibility on end-use of working capital loans. This will contribute tremendously to the growth of MSMEs and Start-ups," said Kumar.
Mohammad Mustafa, Chairman and MD of SIDBI, said that the MoU would strengthen capacity building through GeM-specific training programmes of personnel from partner agencies, value-added services through networking, workshops, marketing events, awards and recognition of MSMEs with special focus on SHGs, women entrepreneurs, artisans, NGOs, start-ups and micro-enterprises.