A 15-member committee has been announced by Finance Ministry to look into the financial structure of the MSME sector. The committee will submit its report in three months. ICICI Bank Chairman KV Kamath will head the committee. Other members of the committee are: Rajni Bector of Cremica Foods, Nilesh Shah of Axis Capital, Sushil Muhnot of Bank of Maharashtra, R Vaidyanathan, of IIM Bangalore and Saurabh Srivastava of India Angel Network.
The committee will look into the financial framework of MSMEs and would suggest to improve the institutional investment climate for the sector. The committee will examine in detail the flow of funds to the sector, make a comparative study with other developed and emerging economies and would suggest measures to improve the policy environment accordingly.
The measure has been seen as a major landmark in improving the finance climate for the MSMEs.