Promotion of MSMES- (Press Information Bureau) (09 Dec 2021)

MANU/PIBU/4899/2021

Commercial

As informed by Department for Promotion of Industry & Internal Trade (DPIIT), as part of the 'Start-up India' initiatives the Government has provisioned the following financial assistance and incentives for start-ups across the country including in the state of Tamilnadu:

i. Start-up India Seed Fund Scheme (SISFS)

ii. Fund of Funds for Start-ups (FFS) Scheme

iii. Ease of Procurement

iv. Income Tax Exemption for 3 years

v. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act

vi. National Start-up Awards

As informed by Small Industries Development Bank of India (SIDBI), SIDBI has entered into a collaboration with Google India Private Limited (GIPL) on November 18, 2021, for having a pilot social impact lending programme with a corpus of approx. Rs. 110 crore (equivalent to USD $15 million) targeted at Micro enterprises with a turnover upto Rs. 5.00 crore.

As informed by SIDBI, the following programmes were launched by SIDBI to help and revive the MSME sector across the country including the State of Tamil nadu:

Special Liquidity Facility for MSMEs:- In April 2020, RBI provided special refinance facilities for a total amount of Rs. 50,000 crore to NABARD, SIDBI and NHB to enable them to meet sectoral credit needs, of which SIDBI received Rs. 15,000 crore to continue lending to MSMEs.

In April 2021, another tranche of Rs. 15,000 crore was granted by RBI to meet the funding requirements of micro, small and medium enterprises (MSMEs) in FY 2022.

Initiatives under Direct Finance: - Direct Lending operations of the Bank primarily focuses on ensuring uninterrupted flow of credit to MSMEs, especially to those engaged in fighting the pandemic.

Cluster Development: - The Bank has launched SIDBI Cluster Development Fund (SCDF) of Rs. 6,990 crore to support the State Governments / State Government sponsored Organizations to attend to cluster development from both soft and hard infrastructure.

Financing micro-entrepreneurs:- The b PRAYAAS Initiative of the Bank is aimed to facilitate access to low-cost finance for micro-entrepreneurs/ micro-enterprises, in the "Missing Middle Segment" by providing loans ranging from Rs. 0.50 lakh to Rs. 5.00 lakh at a cheaper rate through Partner Institutions.

Virtual Ecosystem:- The Udyamimitra Portal of the Bank is a universal digital platform that aims to provide end-to-end solutions for not only credit delivery, but also a host of credit-plus services by way of handholding support to the MSMEs.

Implementing PMSVA Nidhi:- The Scheme was announced by Ministry of Housing and Urban Affairs, Government of India to facilitate working capital loan up to Rs. 10,000 to provide financial aid to Street vendors during the situation of COVID-19 pandemic.

Digital Lending to MSMEs:- PSBLoansin59minutes is the first contact less lending platform for MSMEs developed under consortium of PSBs led by SIDBI.

Swavalamban Connect Kendra (SCKs):- The Bank under its umbrella program "Mission Swavalamban" has initiated setting up of 100 SCKs in 100 districts across 5 states viz., U.P., Bihar, Jharkhand, Odisha & Telangana.

Swavalamban Crisis Responsive Fund (SCRF):- The Bank has set up SCRF with the support of FCDO, Govt. of United Kingdom, to support free on boarding of MSMEs on the TReDS platform.

The Ministry of MSME implements various schemes and programmes for the growth and development of MSME Sector in the country including Tamil Nadu. These schemes and programmes include Prime Minister's Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP).

Tags : PROMOTION MSMES INCENTIVES