MSMEs Can Tap TReDS Platform to Tide Over Working Capital Crunch: Minister P Rajeeve

THIRUVANANTHAPURAM:
Noting that Micro, Small and Medium Enterprises (MSME) sector has emerged as key segment of Kerala’s industrial landscape, Minister for Industries, Law and Coir P Rajeeve said promoters of such ventures can now tap TReDS platform to raise functional capital and avoid credit risk as receivables from marketed goods and services may take some time to reach their accounts.

Rajeeve was inaugurating a workshop on leveraging TReDS (Trade Receivables Discounting Electronic System) organised by the Department of Industries and Commerce (DI&C) on the sidelines of Keraleeyam festival here.

TReDS is an electronic platform for facilitating the financing/ discounting of trade receivables for MSMEs through multiple sources.

Rajeeve said TReDS has proved a reliable supportive mechanism that comes handy for MSMEs to tide over interim financial crunch and sustain their enterprises without running into liquidity crisis.

The Government has given permission for public sector enterprises, companies, local self government institutions and various state institutions to make use of TReDS. Already, a large number of ventures have registered themselves with TReDS and MSMEs especially should make use of this facility, the Minister said.

The state government has bolstered the MSME ecosystem in the state through path-breaking policy initiatives and projects which have yielded good results, he said.

S Harikishore, Director, DI&C, said TReDS has already proved a helpful mechanism for MSMEs who often run into constraints due to delay in getting financial returns from the market for their products and services.

Executive Chairman of Board For Public Sector Transformation K Ajith Kumar, KINFRA Managing Director Santhosh Koshi Thomas, State Level Bankers Committee Kerala Division Manager Prashanth, KSSIA state vice president Fasiludeen, Additional Director of DIC G Rajeev, M1 Exchange South Regional Head Tirumaran Murukesan, RXIL Senior manager Justin Jose and Invoice Mart Tamil Nadu and Kerala Regional Head Gouri Manwani spoke on various features of the system.