Often described as the ‘backbone’ of economic growth, the Micro, Small and Medium Enterprises (MSME) sector in India, which contributes 8 per cent to the country’s GDP, continues to be dogged by funding and marketing constraints, among others. Tasked with boosting about 46 million such enterprises in India, MSME Minister Kalraj Mishra said complaints on the banks’ reluctance to give collateral-free loans continue. Back in Delhi after a hectic election campaign in Bihar, Mishra spoke to BusinessLine about new funding initiatives by the government, as also the status on getting the international trademark for Khadi. Excerpts:
What is the status of Khadi and Village Industries Commission’s application contesting the international registration of the ‘Khadi’ trademark?
The trademark KHADI has been filed for goods and services, included in 16 classes of international classification of goods and services, based on 16 basic applications which were filed on November 27, 2014. The international application was submitted through the Trade Mark Authority in India on December 2, 2014.
The World Intellectual Property Organisation (WIPO) had found irregularities in some classes, to which the Trade Mark Authority in India had replied satisfactorily on September 14, 2015. The last date of submission was October 30, 2015, as communicated by WIPO. We are awaiting WIPO’s decision.
What about marketing of Khadi products online domestically and internationally?
An application was submitted in December 2014 to the Trade Mark Authority in India for 27 classes under Khadi Word Mark and Khadi India Trade Mark. Out of those, five applications were submitted for expeditious processing for Khadi Word Mark. Three out of five applications have already been advertised in Trade Marks Journal Publication for four months, which is expected to expire in February 2016.
For the remaining two applications, which were advertised and objected to, the replies have been uploaded in the Registry’s Web-site.
Now we are waiting for an update on the three applications, else a show-cause hearing notice will be issued by the Trade Mark Authority of India.
This year’s Budget had announced a ₹10,000- crore venture capital fund to act as a catalyst to attract private capital in the sector. How much of it has come so far?
The Make in India Soft Loan Fund for Micro, Small & Medium Enterprises was formally launched on August 18, 2015. The ₹10,000-crore fund has been allocated to SIDBI by the RBI for three years. The objective is to provide soft loans, in the nature of quasi-equity, and term loan on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishing an MSME and also for pursuing opportunities for growth for existing MSMEs. Our focus is on the identified 25 sectors of Make in India, or other sectors, as may be added.
Has there been a rise in mandatory government purchases from the sector in recent years?
Yes, data from Central public sector undertakings (CPSUs) indicate an improved trend. So far, just 58 CPSUs have reported procurement amounting to ₹11,841.33 crore during 2014-15 (NDA rule), compared with 103 CPSUs reporting purchases of ₹12,425.56 crore in 2013-14.
Coming to politics, you are a leader from Uttar Pradesh. What is your view on the setback to your party (BJP) in the recent panchayat elections, especially in Varanasi?
There is no setback… the panchayat results are as expected… But had we won more seats, it would have been better. However, this should not be considered a sample for future elections.