INSUBCONTINENT EXCLUSIVE:
PM Modi termed the 12 new measures as "historic" that will make Diwali brighter for the sectorPrime Minister Narendra Modi Friday announced
sanction of loans of up to Rs 1 crore in 59 minutes, relaxation in labour laws, easier compliance with environmental rules and changes in
company laws for small and medium enterprises as a 'Diwali gift' to give a boost to the sector, the country's second-biggest
sanctioned a loan in just 59 minutes through a new portal www.psbloanin59min.com.Also, GST-registered MSMEs will get a 2 per cent subvention
or subsidy on a new loan or incremental loan of up to Rs 1 crore, PM Modi said, adding interest subvention on pre- and post-shipment credit
for exports by MSMEs has been increased to 5 per cent from 3 per cent
"Now the GST portal will ask MSME, do you need a loan Now the government is coming forward to provide loans to MSMEs
Now no one has to run from one bank to other for loans
In new India, no one should be compelled to visit a bank branch repeatedly," he said
Besides, he said, "honest taxpayers will get the benefit
Registering with GST and filing of tax will become your strength
in the sector will be sanctioned only through a computerised random allotment and inspectors will have to upload reports on portal within 48
"No inspector can now go anywhere
He will be asked why he went to a factory
water clearance and just one consent to establish a factory
MSMEs will have to file just one annual return on eight labour laws and 10 central rules, he said, adding that an ordinance has been
promulgated to simplify levy of penalties for minor offences under the Companies Act
PM Modi termed the 12 new measures as "historic" that will make Diwali brighter for the sector and its millions of entrepreneurs and
Observing that MSME play an important role in the economy, he said, "These are not just Diwali gift to them but this will herald a new era
for them which provide the highest employment after agriculture." Public sector companies, which were mandated to source 20 per cent of
their annual procurement from MSMEs, will now source at least a quarter of their requirement (25 per cent) from the sector, he said, adding
membership of the Government e-Marketplace (GeM) to facilitate online procurement of common use goods and services by various government
departments and organisations
PM Modi announced Rs 6,000 crore for creation of 20 hubs and 100 tool rooms for technology upgradation
Clusters for MSMEs in the pharma sector will be created to boost production in the sector, he said
All companies with a turnover of more than Rs 500 crore would have to now come on Trade Receivables e-Discounting System (TReDS) platform so
that there is no cash flow problem for MSMEs.Joining this portal will enable entrepreneurs to access credit from banks, based on their
upcoming receivables, he said, adding this will resolve their problems of cash cycle
"The important benefit of this would be that cash problem of the sector would be addressed I would request big corporates to clear their
bill and make payment without delay
In case they have a problem they can register their complaint on Samadhan Portal of MSME Ministry for the redressal," he said
Noting that MSMEs are one of the principal employment generators in India, he recalled the glorious Indian traditions of small-scale
Doing Business' ranking, PM Modi said in four years his government has achieved what many did not believe and what no other nation has done
-- leaping from 142nd rank in 2014 to 77th position
Breaking into top 50 rank is not far away, he added
Reform of processes will help MSMEs, PM Modi said
PM Modi also spoke of social security for the MSME sector employees
a long way in strengthening the MSME sector in India," he said
He said the implementation of this outreach programme will be intensively monitored over the next 100 days
Speaking at the occasion, Finance Minister Arun Jaitley said various steps taken by the government will benefit the SME sector.The finance
minister said that the Mudra Scheme of the government has benefitted over 13 crore people and also helped in generating jobs
Talking about the loan portal, Jaitley said over 72,000 loan application has been approved by the portal
"We have just started the portal two weeks back and around 70,000 loans application has been sanctioned," he said
MSME Minister Giriraj Singh said there are 6.5 crore units which provide employment to about 12 crore people
