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In our country, medium and small enterprises contribute heavily to the economy. The MSME sector alone contributes 29% in the GDP of India. A large population associated with it provides it a link in upper class, middle class and lower class. This sector requires a lot of funds and proper management to flourish properly. The Government of India has initiated many schemes like PMEGP (PM Employment Generation Programme), SFURTI (Scheme of Fund for Regeneration of Traditional Industries), ASPIRE scheme, CHAMPIONS portal are some of the examples of such schemes. The Rajasthan Financial Corporation is an institution which provides credit to these small enterprises and boosts them up in the market.
Body
There are two types of enterprises, one is private sector enterprises and another is public sector enterprises. As the name itself explains, private sector enterprises are set up by a private company for the sake of profits. Public Sector Enterprises is owned by the government. Other shareholders might also be part of the company, but the government holds a majority of shares in them. There are 3 types of Public Sector Enterprises –
It can be a departmental undertaking, statutory body or simply a government company. Rajasthan Financial Corporation is a body composed for providing aid and assistance to small and medium enterprises. This body was created by the government of Rajasthan through a notification which was released in 1955 under an act called SFC Act of 1951. The departmental undertaking is a body which works under a ministry or a department. The Rajasthan Financial Corporation in the same way accelerates the policies of Rajasthan by making them reach to the people who need it. The MSME sector has a lot of potential in India, if utilized properly, it can be proved to be the main wheel of growth of the Indian Economy.
The public sector enterprises is a company whose majority stakes are under the government. These are the government owned entities working for the welfare of people. The public sector enterprises of Rajasthan including the Rajasthan Financial Corporation have a lot of schemes for the MSME sector in the state. Some of them are listed here –
Saral scheme – The public sector enterprise of Rajasthan is offering the loans beginning from the amount of 0.2 million to 10 million for the MSME sector of Rajasthan. This scheme is expected to benefit the hotel, tourism sector, retail and wholesale businesses also.
Service sector- The service sector mainly consists of the hospitality, tourism, hotel, construction material business etc. Along with it, the IT industry has been affected due to the pandemic and crisis of production and import or export of goods has aggravated the issue. The public sector enterprises are trying to help them in acquiring loans on easy terms.
Textile sector- This sector has been hit by pandemic. It is in dire need of assistance from public sector enterprises. The scheme offers interest subvention for the loans which are offered to the small and medium enterprises.
Also, the single window clearance system has increased the feasibility of official work. To open or register a new MSME has been a cumbersome process which requires a lot of time and energy. Now, a single window system will be quite helpful for people in the MSME sector.
To facilitate loans in a quick and easy manner, a top-up loan scheme has been launched which just looks at the previous repayment pattern of a borrower and if the previous payments have been done timely, it gives loan on easy conditions.
Conclusion
We see that the public sector enterprises are designed for the welfare of people by the government. The Rajasthan Financial Corporation is one such public sector enterprise which gives financial support to the MSME sector of Rajasthan. It manages and controls various schemes for the hospitality sector, retailers and wholesalers, textile and marble traders also. The MSME sector plays a major role in the development of that respective state as well as of the country. Service sector was badly shaken by the pandemic, so the government has initiated schemes like Saral and also a single window system to do the whole process easily and in a time efficient manner.
