New industrial policy to simplify procedures

By Our Special Correspondent

BANGALORE, MARCH 9. The State Government will soon announce a new industrial policy with the focus on simplifying procedures for faster clearance of papers, the Minister for Large- and Medium- scale Industries, Mr. R.V. Deshpande, has said.

The Government would remove all bottlenecks to help small and medium enterprises (SMEs) prepare themselves to meet growing global competition, Mr. Deshpande said here on Friday. Addressing a seminar on "Factoring and Forfaiting -- Customised Solutions for Indian Exporters", organised by the EximBank and other organisations, the minister referred to the importance of Factoring and Forfaiting, which helped the trade sector in managing the risks inherent in cross-border transactions. With the free trade regime after the WTO agreement coming into force soon, these two media would go a long way in enabling SMEs realise their export potential to the maximum extent, he said. These were important to Karnataka, and Bangalore in particular, where many non IT export-oriented industries were coming up fast.

Ms. Margrith Lutschg-Emmenegger, Managing Director of WestLB (Westdeutsche Landesbank, London branch), said in her presentation that the bank would be launching the Factoring Service in India through a joint venture with EximBank and IFC. Factoring, a $500 million business across the world, was growing at an annual rate of 12 per cent and had good potential in India. Forfaiting also had a good market in India, with current volumes touching $50 to $75 million, she explained. Forfaiting was the discounting of international "Bills Receivable" on a "without recourse" basis.

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