Electronic platform TReDS, which facilitates in financing or discounting trade receivables for MSMEs, has proved a reliable supportive mechanism for the small enterprises to tide over interim financial crunch and sustain themselves, state Industries Minister P Rajeeve said on Sunday.
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, Rajeeve said MSMEs can now tap the TReDS platform to raise functional capital. TReDS is an electronic platform for facilitating the financing/discounting of trade receivables for MSMEs through multiple sources.
“TReDS has proved a reliable supportive mechanism that comes in handy for MSMEs to tide over interim financial crunch and sustain their enterprises without running into liquidity crisis,” Rajeeve said. Noting that the Micro, Small and Medium Enterprises (MSME) sector has emerged as a key segment of Kerala’s industrial landscape, 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.
“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 that have yielded good results, he said. S Harikishore, the Director, DI&C, said TReDS has already proved a helpful mechanism for MSMEs which often run into constraints due to delay in getting financial returns from the market for their products and services. Executive Chairman of the 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.