OFICCI Association Submits Representation on Behalf of OBC Entrepreneurs to Parliamentary Committee
Seeks whitepaper on several pressing issues
OFICCI members submitting their plea to the parliamentary panel members
Hyderabad: The Office Bearers and Association Members of the OFICCI Association (OBC Federation for Indian Chambers of Commerce and Industry) led by Rama Mohan Manamasa, CMD, MRM Group Founder and Chairman, OFICCI, called on the OBC Parliamentary Committee Chairman Ganesh Singh Ji along with Ambica G Lakshminarayana Valmiki, MP, Anantapur; here on Wednesday and gave a representation on behalf of OFICCI. Manikam Tagore, MP appreciated the efforts of OFICCI. Rama Mohan Manamasa, Founder and Chairman of the associatiation along with executive members Prabhakar Yadav, G Sreedhar and other members; explained the need for promoting OBC Entrepreneurship in India. The representation contained the following points.
1. Preferential Treatment in Public Procurement via GeM (Government e-Marketplace):
- Despite the establishment of GeM as a transparent portal for government procurement, OBC-owned enterprises often struggle to secure government tenders due to limited resources and access.
- We request the Committee to recommend measures for preferential treatment or quotas for OBC-owned MSMEs on GeM, similar to the provisions for SC/ST entrepreneurs, to ensure fair competition and equitable access to government contracts.
2. Instructing Banks to Support OBC Entrepreneurs under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises):
- While CGTMSE provides much-needed financial support to MSMEs, there is a lack of targeted support and awareness among OBC entrepreneurs.
- We request the Committee to direct banks to prioritise OBC entrepreneurs for CGTMSE loans, ensuring ease of access to credit without the burden of collateral. Additionally, banks should conduct outreach programs specifically aimed at increasing awareness of CGTMSE among OBCs.
3. Priority Lending for OBC MSMEs:
- Access to affordable credit remains a critical issue for OBC-owned businesses. Despite being a significant contributor to the MSME sector, OBC entrepreneurs face higher interest rates and bureaucratic delays in loan approvals.
- We propose that the Committee recommend guidelines to banks for prioritising lending to OBC-owned MSMEs, along with lower interest rates to facilitate their growth and reduce financial stress.
4. Reservation in Allotment of Plots in Industrial Parks Across India:
- Industrial plots in state and central industrial parks are vital for the establishment and expansion of MSMEs. However, OBC entrepreneurs often face challenges in acquiring such plots due to stiff competition and lack of reservation policies.
- We request the Committee to recommend a reservation of at least 15 per cent of industrial plots in all central and state industrial parks for OBC entrepreneurs. This would provide a level playing field and support the establishment of OBC-owned enterprises in these parks.
Meanwhile, the association requested for a whitepaper on OBC Entrepreneurs’ current share in public procurement, bank lending, and MSME schemes in India. The important areas that they wanted in the whitepaper are:
1. Enhancing Opportunities for OBC Entrepreneurs: A Roadmap for Inclusive Growth
- Brief overview of the OBC population in India and their contribution to the economy.
- Current challenges faced by OBC entrepreneurs in accessing opportunities and resources.
2. Analysis of Public Procurement (GeM)
- Data on the participation of OBC-owned enterprises in government tenders via GeM.
- Comparative analysis of the share of contracts awarded to OBCs vs. other categories.
- Recommendations for introducing quotas or preferential treatment for OBC-owned businesses.
3. Access to Financial Support through CGTMSE
- Analysis of the distribution of CGTMSE loans among different social categories.
- Challenges faced by OBC entrepreneurs in accessing CGTMSE loans.
- Data to be requested: Number of OBC beneficiaries under CGTMSE in the last 5 years, default rates, and loan disbursement trends.
- Recommendations for improving access and awareness of CGTMSE among OBCs.
4. MSME Priority Lending
- Review of RBI guidelines on priority sector lending for MSMEs and their impact on OBC entrepreneurs.
- Data to be requested: Breakdown of MSME loans provided to OBCs vs. other categories in the past 5 years, including interest rates and terms.
- Recommendations for enhanced lending support and lower interest rates for OBC-owned MSMEs.
5. Reservation in Allotment of Industrial Plots
- Current policies on industrial plot allotment and the challenges faced by OBC entrepreneurs.
- Data to be requested: Allotment of industrial plots to OBCs in central and state industrial parks over the last 5 years.
- Recommendations for implementing a reservation policy for OBC entrepreneurs in industrial parks.
6. Case Studies and Success Stories
- Highlighting success stories of OBC entrepreneurs who have benefited from government schemes.
- Analysis of best practices from other social categories that can be adapted for OBC support.
7. Conclusion and Way Forward
- Summarising the key issues and recommendations.
- Roadmap for implementing the proposed measures for supporting OBC entrepreneurs.
