GeM & SIDBI sign MoU to enable growth of MSMEs, Start-ups, Women Entrepreneurs

Speed Post News Network

New Delhi : Government e Marketplace (GeM), Department of Commerce, Ministry of Commerce and Industry, has signed an MoU with Small Industries Development Bank of India [SIDBI] to benefit MSMEs, women entrepreneurs, Self Help Groups (SHGs), Women Self Help Groups and various loan beneficiaries under MUDRA and Stand-up India scheme.

The MoU was signed in New Delhi on August 29, 2019. This MoU will enable promotion of 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 timeframe to sellers, enhance working capital availability through bill discounting and control NPAs through control of end use.

Speaking on the occasion, CEO GeM, Talleen Kumar, said that partnership with financial institutions like SIDBI is necessary in GeM’s journey towards outreach to MSMEs, Micro Enterprises, Start-ups, Artisans, who can now also sell to Government on an open, transparent and technology-driven platform, according to a PIB release.

The Government eMarketplace wants to empower these sellers through the payments within a guaranteed timeframe 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.

Chairman and MD, SIDBI, Mohammad Mustafa, hailed GeM for its efforts to align SHGs, women entrepreneurs, artisans, NGOs, Start-ups and other sectors with public procurement and strengthen the existing MSME ecosystem. While highlighting various efforts of SIDBI to ensure access to finance for MSMEs in the country, he mentioned 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.

The MoU of GeM with SIDBI is yet another step towards its growing partnership with financial institutions to enable growth of MSMEs and Start-ups in the country.