59 minute loan portal for MSMEs
PM
launches historic Support and
Outreach
Initiative for MSME sector
Portal
to enable easy access to credit for MSMEs
Ordinance
for simplifying procedures
For
minor offences under Companies Act
The
Prime Minister, Shri Narendra Modi, today launched a historic support and
outreach programme for the Micro, Small and Medium Enterprises (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.
The
Prime Minister 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 Ludhiana’s
hosiery, and Varanasi’s sarees.
The
Prime Minister said that the success of economic reforms are being 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. The Prime Minister said that
there are five key aspects for facilitating the MSME sector.
These
include access to credit, access to market, technology up-gradation, 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.
Access to Credit: www.psbloansin59minutes.com
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 up to Rs. 1 crore can be granted in-principle approval through this portal,
in just 59 minutes. He said a link to this portal will be made available
through the GST portal.
The
Prime Minister asserted that in New India, no one should be compelled to visit
a bank branch repeatedly.
The
Prime Minister 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 Rs500crore, must now compulsorily be brought on the Trade
Receivables e-Discounting System (TReDS). He said that 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 Markets:
The
Prime Minister said that on access to markets for entrepreneurs, the Union
Government has taken a number of steps already. In this context, he made his
fourth announcement that public 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. The Prime Minister said that more
than 1.5 lakh suppliers have now registered with GeM, out of which 40,000 are
MSMEs.
He
said transactions worth more than Rs. 14,000 crore have been made so far
through GeM. He said the sixth announcement is that all public sector
undertakings of the Union Government must now compulsorily be a part of GeM. He
said they should also get all their vendors registered on GeM.
Technology Up-gradation:
Coming
to technological up-gradation, the Prime Minister said that tool rooms across
the country are a vital part of product design. 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.
Ease of Doing Business:
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 announcement is 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. The Prime Minister noted that as part of establishing a unit, an
entrepreneur needs two clearances namely, environmental clearance and consent
to establish.
He
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.
Social Security for MSME Sector
Employees:
The
Prime Minister also spoke of social security for the MSME sector employees. He
said that a mission will be launched to ensure that they have Jan Dhan
Accounts, provident fund and insurance. The Prime Minister said that these
decisions would go a long way in strengthening the MSME sector in India. He said
the implementation of this outreach programme will be intensively monitored
over the next 100 days.
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