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Govt. re-aligning schemes & making investments to leverage opportunities in leasing industry: Additional secy, MSME Ministry

 

Friday, May 04, 2018

Civil Aviation Ministry trying to put in place financing structure


 
New Delhi, May 4, 2018: The Union Government is re-aligning its schemes and is making lots of investments to leverage humongous opportunities in the leasing industry, a top official said at an ASSOCHAM event held in New Delhi today.
 
“There will be opportunities for PPP (public private partnership), we are working on it, we can bring investments, you can just come up with small bit of investments, we can set up an infrastructure, let it be given on lease,” said Mr Ram Mohan Mishra, additional secretary in Union Ministry for Micro, Small and Medium Enterprises (MSMEs) while inaugurating an ASSOCHAM Global Summit on Leasing, hire purchase & consumer credit.
 
“Depending on the appetite of medium enterprises, we would like to invest along with you in the micro and small enterprises, so their capabilities are at a par with you and it is a pleasure for you to carry them along with you, this is the foundation of inclusive growth,” said Mr Mishra.
 
He added that there are so many government infrastructure lying unused or not being used fully. “We can aggregate them, and warehouses, cold storages and everything, all those can be given on lease to somebody, it is possible.”
 
He further said that there is huge demand countrywide for power tiller, tractors and various such equipments in the farm sector which provides major opportunity for leasing industry as though farmers can get working capital from MFIs (micro finance institutions) but there is lack of term loans.
 
“There is a need for improvement in the way we finance businesses for sure and this is where leasing can be a path-breaking input,” said Mr Mishra.
 
Earlier, in her address at the ASSOCHAM conference, Ms Vandana Aggarwal, economic adviser in Union Civil Aviation Ministry said that the ministry is trying to put in place a financing structure, the regulatory, policy environment, the entire finance ecosystem which could work.
 
“Now is the time to set even the lease terms and may be rest of the sectors can piggy bank on the aviation growth and we can together make a big force before the government to get some of the regulatory issues sorted out,” said Ms Aggarwal.
 
Adding that with about 30 per cent decline in export credits as a route to procure aircrafts in value, she said that Civil Aviation Ministry would also be looking at direct loans. “This is something that the aviation sector has been indicating to us.”
 
Ms Aggarwal also said that civil aviation sector is looking for strong financial support from banks, lessors, private equity or any other form of financial intermediation as the demand for growth in the sector is to be met through $15 trillion worth of investments in the next 10-15 years.
 
She further said that the Government looks forward to creating a lease asset management entity in India which could be a partner with domestic airlines in procuring aircrafts from overseas and equally how individual transactions could be creatively crafted so that it’s a win-win not only for the leasing entity but India at large.
 
 
About ASSOCHAM:
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
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ASSOCHAM
ASSOCHAM   
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