Small and Medium Enterprises in Haryana complain about having constant problem of delayed payments from their customers. The ‘MSME Act of 2006′ has prescribed that it is mandatory for customers to make payments to SMEs within the set stipulated period. The provisions of Micro, Small and Medium Enterprises Development Act, 2006 also make it essential for buyers to pay micro or small enterprises for their goods and services within 45 days of delivery.

Haryana facilitation cell is constituted to look into payment grievances. It is making it known to buyers that if they do not pay back the supplier within the stipulated period then they are liable to pay compound interest for delayed payment. The rate can then be three times compared to that of bank rate. Thus, the facilitation cell in Haryana has come to aid MSMEs and is redressing their problems. However, the cell acts only after receiving complaints from a SME enterprise.

The way of functioning of businesses has changed today as the Indian economy is writing a new growth story. Mr. Kumar says that it is important that SMEs understand the growth prospects and start adopting IT solutions. Mr. Kumar while attending a seminar titled ‘Information, Communication & Technology for Enhancing Competitiveness of Indian SMEs’ spoke about SMEs and IT solutions.

In the seminar, Mr. Kumar disclosed that the Government is going to make available high quality broadband access through ‘National Optical Fibre’ network in village Panchayats by the year 2014. Semiconductor wafer fabrication is easy to carry with no transportation charges. The project is under process and is going to be very beneficial for all.

For the sake of skill development in IT sector, the Government is going to train 10 million people in the country in coming days as part of ‘National Skill Development Programme’.

The SME Stock exchange got its clearance from Securities and Exchange Board of India (SEBI). It is believed that the stock exchange would help to resolve start-up issues of SMEs. The bourse is going to initiate talks with qualified intuitional buyers, mutual fund houses and banks so as to start investing in SME exchange.

Lakshman Gugulothu, BSE SME Exchange CEO, says that 30 to 40 companies signed mandate with merchant bankers and some are in advanced stage to hold discussions with merchant banks and merchant makers.

The minimum criteria kept for getting listed on the SME exchange is the company should have at-least 50 investors and Rs 5 million IPO paid-up capital. Listing is compulsory for companies with Rs 5 million to Rs 100 million paid-up capital. For companies having paid up capital ranging between Rs 100 million and Rs 250 million, there is the option to be listed on either the SME exchange or main board (IANS).

Bucharest saw the 17th Joint Economic Committee (JEC) meeting between India and Romania. Here, both countries decided to facilitate institutional cooperation, joint ventures, greater investment and transfer of technology. Jyotiraditya M Scindia, Commerce & Industry minister, from India attended the Joint Committee meeting along with Ion Ariton, Economy, Trade & Business minister, from Romania.

Both the ministers have talked about doubling bilateral trade and economic co-operation between the two nations by 2015. In-fact, in the current fiscal 2011-12, trade between India and Romania has already seen a hike of 6 percent. This is a good sign keeping into consideration the European Union Economic crisis.

Romania-based firms have been invited to participate in ‘India Show’ set to be organized in Czech Republic in October 2012. About 150 companies are expected to take part. The meeting saw attendees from diverse fields like oil, natural gas, IT, power equipment, textiles, supply chain management, alternative energy, pharmaceuticals, tourism and electric buses.

In a letter to finance ministry, Singh demanded better deal for SME sector and also asked for increased funds to address the concerns of the sector. Singh wants financing to become more transparent and hurdles experienced by the sector to be removed. MSME minister asked for equity formation, lowering of interest rate and for easy exit system.

The minister also asked for quantum jump in financial outlay for MSME sector in 12th five year plan. The minister, however, did not disclose the complete plan that he asked from finance minister.

Finance minister too expressed support with the hope that the program will go a long way in incorporating business skills, knowledge transfer, and in building a professional community.

When the bank management starts to monitor the loan applications then obviously more SMEs will find loans. The banking sector is not doing much for the SMEs now. Not just this, even the venture capitalists are not doing enough to boost the SME sector. Many SMEs as of now do not have expertise in financial management. They need consultancy services to manage their financial condition.

Chakrabarty said that banks should maintain transparency in interest rates and should keep disclosing the interest rate that they are charging. Top banking officials, however, say that bank officials are compassionate and are willing to grant loans to business enterprises.

The successive policy rate hikes made interest rates uncompetitive internationally and it has hit capital formation and investment. This was revealed in a statement published by ‘Federation of Indian Exporters Organization’ (FIEO). The body made a clear suggestion in its press release that interest rate for micro, small and medium enterprises (MSMEs) should be capped at 7 percent and for other businesses it should be capped at 9 percent.

For Small Business export sectors, FIEO also asked for interest subvention until March 2013. Rafeeque Ahmed, President FIEO, discussed the points during a meeting with Finance Ministry Officials in New Delhi. Ahmed also emphasized on small business tax breaks for both direct and indirect taxation.

Japan is seeking to start its operations in India though China had been its favourable destination for decades. But, now as labour cost has gone up in China, Japan is looking for a new destination and it is eyeing India. It considers India to be a valued market and India is now the most preferred destination for auto investors from Japan.

Japanese companies have started to understand the eco-system in India and despite all infrastructural challenges they are willing to make investments in India. Auto SMEs of Japan are taking immense interest to set up factories in India. Entrepreneurs from Japan are looking for plug-in factories on rent basis so as to establish their presence here. Many suppliers of Toyota are also planning to start operations in India. ‘Japan External Trade Organization’, (JETRO), is open to work with Government and agencies to start operations in India.

The establishment of Japanese auto component factories in India shall pave the way for the development of more auto part factories from other countries in India. Tamil Nadu Small Industries Development Corporation (SIDCO) has invited Japanese SMEs and also offered an area in Tamil Nadu for establishing Japanese plug-in units. JETRO is also working to find ready-to-use facilities for Japanese SMEs.

‘Tech Transfer 2012′ shall be organized in collaboration with IKP Knowledge Park (IKP) in cities like Hyderabad and Ahmedabad. The counseling for technology transfer will start on February 9th, 2012 along with BioAsia event. Ahmedabad will host the event on February 22nd, 2012 with support drawn from Gujarat State Biotechnology Mission (GSBTM).

This is an excellent opportunity and a prospective platform for SMEs where they can learn about relevant technologies directly from industry experts. The technologies are aggregated from across the globe so as to give Indian MSMEs a clear picture of what is possible. ‘Tech Transfer 2012′ is going to be the right opportunity to fulfill technology related requirements of Indian life-science MSMEs.

The fund size of ‘Pragati India Fund’ is $75-100 million. IFC has proposed an equity investment that is equivalent to 20% of the Fund’s total committed capital. The support that IFC is extending shall help Pragati form partnerships with existing businesses, entrepreneurs and managers who have demonstrated exceptional ability.

‘Pragati India Fund’ has its head office in Mauritius and is deemed to operate through subsidiaries in the Republic of Mauritius. In India it operates through its investment advisor based in Delhi.