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PM unveils 12 key initiatives to support MSME s

The Prime Minister unveiled 12 key initiatives which will help the growth, expansion and facilitation of MSMEs across the country.

The Prime Minister said that the 12 decisions that he is announcing, will mark a new chapter for the MSME sector. Noting that MSMEs are one of the principla employment generators in India.

He said, the success of economic reforms launched by the Union government, can be gauged from the rise in India’s “Ease of doing Business Rankings” from 142 to 77 in four years.

There are five key aspects for facilitating the MSME sector. These include access to credit, access to market, technology upgradation, ease of doing business and a sense of security for employees.

Access to Credit

 As the first announcement, Government launched a 59 Minute Loan Portal to enable easy access to credit for MSMEs. According to the plan, loans up to Rs 1 Crore can be granted in-principle approval through this portal, in just 59 Minutes.

A link to this portal will be made available through the GST Portal.

As the Second Announcement,  a 2 percent interest subvention for all GST registered MSMEs, on fresh or incremental loans. For exporters who receive loans in the pre-shipment and post-shipment period, for them an increase in interest rebate from 3 percent to 5 percent.

As the third announcement, All companies with a turnover more than Rs. 500 Crore, must now compulsorily be brought on the Trade Receivables e-discounting System (TReDS).
Joining this portal will enable entrepreneurs to access credit from banks, based on their upcoming receivables. This will resolve their problems of cash cycle.

Access to Market

As the fourth announcement, The public sector companies have now been asked to compulsorily procure 25 percent, instead of 20 percent of their total purchases, from MSMEs.

As the Fifth announcement, Our of 25% procurement mandated from MSMEs, 3 percent must now be reserved for woman entrepreneurs.

As the Sixth announcement,  All public sector undertakings of the Union Government must now compulsorily be a part of GeM.

According to PM, More than 1.5 lakh suppliers have now registered with GeM, out of which 40,000 are MSMEs, also transactions worth more than Rs. 14,000 crore have been made so far through GeM.

Technology Upgradation

As the seventh announcement, 20 hubs will be formed across the country, and 100 spokes in the form of tool rooms will be established. 

Ease of Doing Business

The Eighth announcement is related to pharma companies. According to this-  Clusters will be formed of pharma MSMEs.
70% cost of establishing these clusters will be borne by the Union Government.

The ninth announcement is on simplification of government procedures. The return under 8-labour laws and 10 Union regulations must now be filed only once a year.

The tenth announcement says that now the establishments to be visited by an Inspector will be decided through a computerized random allotment.

The 11th Announcement says that under air pollution and water pollution laws, now both these have been merged as a single consent.

The Return will be accepted through self-certification.

As twelfth and final announcement, An Ordinance has been brought, under which, for minor violations under the Companies Act, the entrepreneur will no longer have to approach the Courts, but can correct them through simple procedures.

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