The PM touched upon several matters of vital interest to the MSME and announced 12 measures to boost the sector.
Prime Minister Narendra Modi on Friday launched the Micro, Small and Medium Enterprises (MSME) Support and Outreach programme. The event is taking place at Vigyan Bhavan in Delhi in presence of Union Finance Minister Arun Jaitley and Union Minister of State of MSME Giriraj Singh. The prime minister is expected to announce a slew of measures on Friday to boost credit availability for MSMEs and an “outreach” programme for units in the sector.
A similar launch will be organised at 100 locations across the country in the presence of union minister and ministers of state government. The PM will also address the locations through video conferencing and touch upon several matters of vital interest to the MSME sector.
READ | 100-day, 100-district plan: Credit a trickle, MSMEs set to get stimulus booster today
Sources said the government is working on steps to improve liquidity in the financial markets to provide relief to the Non Banking Financial Companies (NBFCs), which have a high exposure to the MSME sector along with measures to boost their access to the market as well as some hand-holding and facilitation support.
After banks, NBFCs are major lenders to the MSMEs.
Announcing his “Diwali gift” for small and medium enterprises, Prime Minister Narendra Modi on Friday said that loans of up to Rs 1 crore will be sanctioned in 59 minutes through a special portal as part of the Centre’s Micro, Small and Medium Enterprises (MSME) Support and Outreach programme.
“I dedicate the 59-minute loan approval portal to you. All GST-registered small and medium enterprises can now avail a loan of up to Rs 1 crore in just 59 minutes,” PM Modi said while addressing the crowd at the launch of the programme at Vigyan Bhavan in the national capital.
“Also, GST-registered MSMEs will get two per cent interest subvention or rebate on an incremental loan of up to Rs 1 crore,” the prime minister said. READ MORE
1. PM Modi announced the launch of 59-minute loan portal for sanction of up to Rs 1 crore for small and medium enterprises. He said, “I dedicate 59-minute loan approval portal to you and it has started benefiting the MSMEs businessmen already.”
2. The Prime Minister also said that the GST-registered MSMEs will get 2 per cent rebate on an incremental loan of up to Rs 1 crore.
3. Talking about the Interest subvention, PM Modi said the government has decided to increase interest Subvention on pre and post shipment credit for exports by MSMEs from 3 per cent to 5 per cent.
4. “It is now mandatory that all the companies with a turnover of more than Rs 500 crore will have to join TReDS platform, that is Trade Receivables e- Discounting System. So that MSMEs doesn’t face trouble in cash flow,” PM Modi said.
5. PM Modi said that mandatory sourcing by PSUs from MSMEs increased to 25 per cent from the previous limit of 20 per cent.
6. He said that government companies to buy at least 3 per cent of their purchases from women entrepreneurs.
7. “It has been made mandatory for the companies to take GeM (Government e-Marketplace) membership now. Not only this, but the companies will now register its all MSME vendors on this platform, which will also benefit the MSME,” he said.
8. Modi announced Rs 6000 crore package for the technological upgradation in connection with MSME. 20, 000 hubs and 100 tool rooms will be developed around the country for this, he said.
9. PM Modi also announced MSME sector’s ease of doing business to pharma companies. Reform of processes will help small and medium enterprises (MSMEs), he said.
10. He announced Environment clearance and ease of self-certification.
11. “MSMEs will have to file just one annual return on eight labour laws and 10 central rules,” he said.
12. Modi announced that the govt has made a big change to Companies Act and provided relief to MSMEs from legal complications.
Earlier, Finance Minister Arun Jaitley addressed the gathering at the launch event in New Delhi and said India would become the world's fifth largest economy in 2019 and among the top three in the coming years, reports PTI. Speaking at the 'Support and Outreach Initiative for the MSME sector' event here, the minister said since the Narendra Modi-led government took over about four years ago, India has moved from the ninth to sixth position in the global economic landscape.
"Next year, India will become the fifth largest economy," he said, adding hopefully in the coming years the country would be among the top three economies of the world. India emerged as the world's sixth largest economy in 2017, surpassing France, and is likely to go past the United Kingdom, which is at the fifth position, according to an analysis of data compiled by the World Bank.
'My eighth announcement is attached to pharma companies. The MSME sector's ease of doing business to pharma companies, reaching customers directly, has decided to build a cluster now. About 70 per cent spend on these clusters was also announced by the central government. Today's decision of the government will also prove to be very important to increase production in the pharma sector,' Modi said.
Modi said that in order to make the system transparent, the government has been working continuously to reduce Human intervention.
"To do away with unnecessary scrutiny, the government has decided to regulate inspector visits with a computerized random allotment system. Now he can't just go to any place on his own volition and will have to enter the report on the portal in 48 hours.
This decision will prove to be very important in reducing the Inspector Raj to small-scale industries. Now no Inspector will come to you. He will be asked why you went to that factory, what was the motive," he added.
"Today, the seventh declaration of my technological upgradation is associated with this important topic. The Government has decided to extend this system of toolroom to all over the region. For this, 20 hubs will be built and tool rooms such as 100 spokes will be installed all over the screen. I announce a package of Rs 6,000 crore for this important work today," Modi said.
"Today, the seventh declaration of my technological upgradation is associated with this important topic. The Government has decided to extend this system of toolroom to all over the region. For this, 20 hubs will be built and tool rooms such as 100 spokes will be installed all over the screen. I announce a package of Rs 6,000 crore for this important work today," Modi said.
PM Modi's 6th decision related to Government e-Marketplace (GeM)
?? ?????? ????? ?? ??? ???????? ?? ??? GeM ?? ??????? ???? ?????? ?? ???? ??? ??? ???? ?? ???? ?? ???? ??? Vendors-MSME’s ?? ?? ?? ?????????? ?? ??????? ???????, ????? ???? ?????? ?? ?? ??? ???? ??? ?? MSMEs ?? ???? ?? ???? ??? ??????: PM @narendramodi
Today's 5th decision is related to the women workers in MSMEs. 3 per cent of total business from the MSME sector will be reserved for women workers.
It's a matter of pride for us that India has taken a high jump of 23 ranks in "Ease of Doing Business" ranking this time. 4 yrs ago, when this govt wasn't in power, we were at 142nd position. Today we are at 77th rank & I believe that "top 50" isn't too far from our reach, says PM Modi
Every MSME registered under GST will get 2 per cent rebate on the incremental loan of up to Rs 1 crore, says PM Modi
All those companies, whose turnover is over Rs 500 crore, will have to come under Trade Receivables e-Discounting system i.e., TReDS Platform
GST Portal will also give loans in 59 mins now, as per the scheme
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PM Modi to touch upon 12 major decisions for MSME sector
PM Modi while speaking at the event said that the government has taken a collective decision to improve liquidity in the financial markets. He said the MSME outreach programme is a Diwali gift to small business enterprises.
Amid tepid credit growth for the Micro Small & Medium Enterprises (MSMEs), and this being one of the key points in the standoff between the Government and the Reserve Bank of India, Prime Minister Narendra Modi is expected to announce a slew of measures on Friday to boost credit availability for MSMEs and an “outreach” programme for units in the sector.
Sources said the government is working on steps to improve liquidity in the financial markets to provide relief to the Non Banking Financial Companies (NBFCs), which have a high exposure to the MSME sector along with measures to boost their access to the market as well as some hand-holding and facilitation support. READ MORE
Watch PM Modi LIVE as he launches Support and Outreach Initiative for MSMEs
In recent years, the union government has accorded high priority to the MSME sector. As per PMO India Twitter, this outreach and support programme, which will run for the next 100 days, covering the entire country, is expected to provide even greater synergy to the efforts being made for this sector.