Prime Minister unveiled 12 key initiatives for expansion of MSMEs - (02 Nov 2018)
Commercial
The Prime Minister launched a historic support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector. Twelve key initiatives unveiled for the growth, expansion and facilitation of MSMEs across the country. MSMEs are one of the principal employment generators in India. The Prime Minister said that, 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. The Prime Minister said that, there are five key aspects for facilitating the MSME sector which include access to credit, access to market, technology upgradation, ease of doing business, and a sense of security for employees.
Now, public sector companies have to compulsorily procure 25 percent, instead of 20 percent of their total purchases, from MSMEs. To enable easy access to credit for MSMEs, 59 minute loan portal introduced. Two percent interest subvention for all GST registered MSMEs, on fresh or incremental loans is announced. For exporters who receive loans in the pre-shipment and post-shipment period, interest rebate enhanced from 3 percent to 5 percent. All companies with a turnover more than Rs. 500 crore, must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS). Joining the portal would enable entrepreneurs to access credit from banks, based on their upcoming receivables.
As part of establishing a unit, an entrepreneur needs two clearances namely, environmental clearance and consent to establish. It is announced that, under air pollution and water pollution laws, now both these have been merged as a single consent. On simplification of government procedures, now the return under 8 labour laws and 10 Union regulations must now be filed only once a year. Further, 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. The decision would strengthen the MSME sector in India.
Tags : MSMES EXPANSION INITIATIVE LAUNCH
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