JAWAHAR UDAYABHANU

We felt that the banks have the tendency to accept External Commercial Borrowing (ECB) project with minimum ticket size. It is unpracticable for MSME (particularly in Manufacturing Sector) to look ECB way of funding for their expansion project in India. Similarly the data of RBI also reveals that only limited number of MSME in manufacturing sector have used this ECB opportunity. SO what can be done for getting the low cost funding (ECB)

I guess that forming cluster of MSME particularly in manufacturing sector can solve this issue. Form a cluster of two and more companies in MSME manufacturing sector, there by the total exposure will come more than the caps prescribed by the different banks. The formed cluster can go through the approval route for getting ECB by offering Banking Collateral to the foreign lender. It will be a great advantage to these MSME

Faithfully
CA Jawahar