New Delhi: The authorities is working on a coverage to enable a microfinance institution to help fund even the smallest of companies, a transfer that may generate employment within the nation, Union Minister for Micro, Small and Medium Enterprises Nitin Gadkari said.
“We are now preparing, we need to get approval from finance (ministry) and Cabinet also, a social microfinance institution that can finance up to Rs 10 lakh. Now, this can be a game changer,” Gadkari said on the Hero Mindmine summit on Monday.
“To get finance to the small people, it is going to create more employment potential. Now we are planning for that. We are expecting more cooperation from banks, that is very important,” Gadkari added.
The Indian financial system is at the moment dealing with liquidity points and the federal government will want to provide you with a response to deal with the issue, he said.
“I feel we need to plan in a way to increase liquidity in the market by which we will create more employment potential and increase growth rate,” he said.
Gadkari, who can be Union Minister for Road Transport and Highways, said the federal government was working on making a nationwide land financial institution which might be a registry of land at state and district ranges and may be utilised for numerous growth works, together with industrial clusters.
On the Rs 8,000-crore Chambal expressway that was introduced not too long ago, Gadkari said he had recommended to the Madhya Pradesh chief minister that firms prepared to arrange industries in backward areas must be given authorities land free-of-cost.
“We need to reduce land cost, logistics cost, and capital cost. Without that we cannot be internationally competitive,” Gadkari said.