New Delhi, Jan 3 (KNN) In a bid to highlight the key achievements and measures taken throughout the year 2018 to push the India’s Micro, Small and Medium Enterprises (MSMEs) sector, Ministry of Finance has come out with the year-end review report.

The report lists down the number of measures that had been taken in the year 2018 to reform the sector.

With regard to access to credit, the Prime Minister announced the launch of the 59 minute loan portal to enable easy access to credit for MSMEs. Through this portal, loans up-to Rs 1 crore will be granted in- in just 59 minutes

For all GST registered MSMEs, Prime Minister announced 2 percent interest subvention 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.

Besides, to resolve the problem of cash cycle, companies with a turnover more than Rs. 500 crore, have been asked to join Trade Receivables e-Discounting System (TReDS) to enable entrepreneurs to access credit from banks, based on their upcoming receivables.

On access to markets for entrepreneurs, the Prime Minister made an announcement that Public Sector Companies have now been asked to compulsorily procure 25 percent, instead of 20 percent of their total purchases, from MSMEs.

To support women entrepreneurs, the government has mandated 3 percent procurement from women entrepreneurs, out of the 25 percent procurement mandated from MSMEs.

With 1.5 lakh suppliers have now registered with Government e Marketplace (GeM), out of which 40,000 are MSMEs, Modi further made it clear that all Public Sector Undertakings of the Union Government must now compulsorily be a part of GeM. He reiterated that all such PSUs should also get their vendors registered on GeM. 

Keeping in account the importance of technological up-gradation in tool rooms, Modi announced that the 20 hubs across the country and 100 spokes in the form of tool rooms will be established. 

On Ease of Doing Business, the Prime Minister said clusters will be formed for pharma MSMEs. He said 70 percent cost of establishing these clusters will be borne by the Union Government.

With regard to simplification of government procedures to create business friendly environment, Modi announced that the return under 8 labour laws and 10 Union regulations must now be filed only once a year.

Further for inspection purposes, 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.

Also, Prime Minister mentioned that an ordinance had 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. 

Not leaving social security of MSMEs under the table, Modi emphasized on the need for introducing social security for the MSME sector employees. The finance ministry note says 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. 

The Indian Government has made significant strides in the last 4 years in taking India to new heights in terms of the welfare of the citizenry, the overall structure& growth of the economy, and creating a strong presence as an emerging global power, said release.

Not only financial security, but also the financial independence of the women was taken care of through Stand Up India Scheme, which expands its ambit to Schedule Castes and Schedule Tribes. Stand Up India gives subsidized loans to harness and ignite the latent entrepreneurial zeal of the hitherto disadvantaged communities, it added.

Financial needs of all the stakeholders ranging from the budding entrepreneurs to the hard-working farmers have also been catered to through various initiatives, said Ministry.

It said “Reforms and initiatives like GST, Demonetization, Operation Clean Money and Insolvency and Bankruptcy Code have made the Indian economy more efficient and transparent and have ensured financial discipline along with better compliance.”