SME Times News Bureau | 03 Nov, 2018
With just a few days to go for Diwali, Prime Minister
Narendra Modi on Friday launched a "historic" Support and Outreach
Initiative for the micro, small and medium enterprise (MSME) sector.
As part of this programme, the Prime Minister
unveiled12 key initiatives which will help the growth, expansion and
facilitation of MSMEs across the country.
Modi said that the 12
decisions that he is announcing today, will mark a new chapter for the MSME
sector.
Noting that MSMEs are
one of the principal employment generators in India, the Prime Minister
recalled the glorious Indian traditions of small scale industry, including
Ludhianaâs hosiery, and Varanasiâs sarees.
He added that the
success of economic reforms launched by the Union Government, can be gauged
from the rise in India's âEase of Doing Business Rankings,â from 142 to 77 in
four years.
The Prime Minister said
that 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.
He said that as a
Diwali gift for the sector, the 12 announcements he is making, will address
each of these five categories.
As the first
announcement, the Prime Minister announced the launch of the 59 minute loan
portal to enable easy access to credit for MSMEs. He said that loans uptoRs. 1
crore can be granted in-principle approval through this portal, in just 59
minutes.
Modi mentioned the
second announcement as 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, the Prime Minister announced an increase
in interest rebate from 3 percent to 5 percent.
The third announcement
made by the Prime Minister was that all companies with a turnover more than Rs.
500 crore, must now compulsorily be brought on the Trade Receivables
e-Discounting System (TReDS).
He made his fourth
announcement, thatpublic sector companies have now been asked to compulsorily
procure 25 percent, instead of 20 percent of their total purchases, from MSMEs.
The Prime Minister said
his fifth announcement is related to women entrepreneurs. He said that out of
the 25 percent procurement mandated from MSMEs, 3 percent must now be reserved
for women entrepreneurs.
His seventh
announcement was that 20 hubs will be formed across the country, and 100 spokes
in the form of tool rooms will be established.
On Ease of Doing
Business, the Prime Minister said his eighth announcement is related to pharma
companies. He said clusters will be formed of pharma MSMEs. He said 70 percent
cost of establishing these clusters will be borne by the Union Government.
The Prime Minister said
that the ninth announcementis on simplification of government procedures. He
said the ninth announcement is that the return under 8 labour laws and 10 Union
regulations must now be filed only once a year.
The Prime Minister said
that the tenth announcement is that now the establishments to be visited by an
Inspector will be decided through a computerised random allotment.
Modi said that the
eleventh announcement is that under air pollution and water pollution laws, now
both these have been merged as a single consent. He further said that the
return will be accepted through self-certification.
As the twelfth
announcement, the Prime Minister mentioned that 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.
