Letter to Honourable Minister for industry & commerce

Honourable Minister for industry & commerce

Govt of India

New Delhi

Dear sir,

Attention: Sri Suresh Prabhu.

                     Thanks for addressing the sickness in MSME and trying to solve some part of the problem.

The origin of sickness in MSME has been seeded in 1969 itself when directional lending has come into.

                    Also, the attitude of bankers at a lower level is not to solve the problem head-on. As every committee formed by Govt of India/RBI has repeatedly said that timely action is required and they(bankers) on one pretext or other, avoid decisions, (many times it is under their power) and as this is not punishable, they go scotfree.

          M/S Growth Idea Lab for last 30 months working on a different model which is highlighted here.

Highlights of the proposed model for the revival of sick MSME units Only Turnaround


  1. Neither bank nor entrepreneur is bringing any funds
  2. We bring in funds from our sources


What is selection criteria


1.Unit shall have loan liability of 1 to 10cr

2.Shall be running

3.His bankers shall be willing to revive/restructure

4.Entrepreneur shall have passion/desire to revive and ready to work smart

5.EBID(Earnings Before Interest Depreciation Amortization) Zero or positive.


What we bring to the table


1.We will bring fund and short-term funding and equity

2.We also bring short-term manpower


What we will do


We will depute one full time dedicated person, an initial phase to resolve entrepreneurs dilemmas according to his priorities and help to increase cash flow by balancing activity.

Identify idle assets and inventory and help him to use/liquidate.

Our back office will prepare a market development plan and be using his manpower execute or get it executed.

Data mining and use/strategies to use towards the desired goal.

Prepare ageing statement and priorities payment to various suppliers.

How do we make money


The unit will be strengthened so that it reaches 10x growth in 3 to 5 years and it can be listed on SME exchange so our equity will be encased or any other exit route will be predetermined.

During last 30 months, I have tried meeting Sri Kalraj Mishra, Sri Jalan, Sri Tripathi, Dr.Sivaji, Sri Nath(NSIC) and many more and tried to high light with similar solutions, but it has not been moving further.

Also, I met FICCI, ASHOCHAM, FISMSME and Many University in the country. I have met many GM MSME in PSU banks but everybody seems to be aware of the problem till they are on the podium but in office, they do not want to listen to the proposed model.

Thanks to Sri Narendra Modi Honourable PM of India ( I am proud that he is taking many right steps) with the strong council of ministers.

I am ready to come to Delhi for further discussion as I feel, you and your team will create another white elephant like BIfR as the solution does not lie there.


NP Desai

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