PM Modi makes 12 big announcements for MSMEs at the launch of ‘MSME Support and Outreach Program’
New Delhi, Nov 3 (KNN) Prime Minister Narendra Modi launched the Micro, Small and Medium Enterprises (MSME) Support and Outreach program at Vigyan Bhawan yesterday in the presence of Union Minister of Finance Arun Jaitley and MSME Minister Giriraj Singh.
During the occasion he made 12 key decision for the growth and development of MSMEs including 59-minute loan portal for sanction of up to Rs 1 crore for small and medium enterprises.
He said the move will boost small and medium enterprises.
Making the big announcements, he said “12 major decisions taken by the Central government for MSMEs Sector are proof that when after breaking silos, collective initiatives are taken, collective responsibilities are fulfilled and collective decisions are taken, it creates a comprehensive impact."
The first big announcement he made was 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."
GST-registered MSMEs will get 2 per cent rebate on an incremental loan of up to Rs 1 crore, said Modi.
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.
Further, he announced “It is now mandatory that all the companies with a turnover of more than Rs 500 crore will have to join TReDS platforms (Trade Receivables e- Discounting System). So, MSMEs doesn’t face trouble in cash flow."
Adding more in the bucket for MSMEs, he announced mandatory sourcing by PSUs from MSMEs increased to 25 per cent from the previous limit of 20 per cent.
Not excluding women entrepreneurs from the list, he added that government companies to buy at least 3 per cent of their purchases from women entrepreneurs.
“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 it’s all MSME vendors on this platform, which will also benefit the MSME,” he said.
Prime Minister announced Rs 6000 crore package for the technological up-gradation in connection with MSME.
20, 000 hubs and 100 tool rooms will be developed around the country for this, he added.
Modi also announced MSME sector’s ease of doing business to pharma companies.
About the same, he added that reform of processes will help small and medium enterprises (MSMEs).
He further announced environment clearance and ease of self-certification.
“MSMEs will have to file just one annual return on eight labour laws and 10 central rules,” he said.
Besides, Modi announced that the government has made a big change to Companies Act and provided relief to MSMEs from legal complications.