Growth of MSMEs – Bada Business

Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!

The Ministry of Micro, Small, and Medium Enterprises (MSME) has extended the validity of Entrepreneurs Memorandum (EM) Part-II and Udyog Aadhaar Memorandums (UAMs) from March 31 to December 31, 2021.

This extension will provide a sigh of relief as it will facilitate the holders to avail the benefits of the provisions under various existing schemes and incentives. The numerous benefits will also include Priority Sector Lending benefits for MSMEs.

All enterprises registered until June 30, 202, were earlier required to file a new registration on the Udyam Registration Portal before March 31, 2021.

UAM is a single-page registration form that involves a self-declaration format. In this form, the MSME entrepreneur will have to self-certify the existence of his/her enterprise, bank account details, owner`s AADHAR details, and other required official information.

According to an IBEF report, India has about 6.3 crore MSMEs majorly dominated by micro-enterprises, and the number of registered MSMEs grew 18.5 percent Y-o-Y to reach 25.13 lakh (2.5 million) units in 2020 from 21.21 lakh (2.1 million) units in 2019.

As of June 17, 2021, the portal has facilitated the registration and classification of more than 33 lakh enterprises, as per the official data.

According to the official statement issued by the MSME ministry, “the said amendment has been carried out considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions, and government departments dealing with the interest of MSME Sector”.

The MSME ministry expects the smooth migration of the existing UAM holders to the new system of Udyam registration, which was launched in July 2020. They would avail the benefits of the government schemes, thereby paving the way for empowering & strengthening MSMEs and leading to their faster recovery, boost to their economic activity and creation of jobs.

It is a one-time registration, and hence, no renewal is necessary. A permanent registration number is provided post the registration, and after completion of the process, an online certificate will be issued.

The enterprises can register for free on https://udyamregistration.gov.in and without any documents. However, they will require PAN and Aadhaar cards for registering on the Udyam portal.

The government and its various enterprises have taken several initiative to promote and develop the micro, small and medium enterprises. Several schemes and programmes have been implemented with the aim to boost the MSME sector in the country and improve its competitiveness at par with the global competitors. There are have certain steps undertaken by the Nitin Gadkari-Led Union MSME Ministry to reduce the cost of operations and increase the efficiency of its functioning. At a recent event, Nitin Gadkari said that the government is committed to promote the use of renewable resources in the country, especially for the enterprises in the micro, small and medium sector. MSMEs Should Avail Concessional Finance and Install Rooftop Solar System to Increase Business Efficiency, Says Union Minister Nitin Gadkari.

Addressing a webinar, Union Minister Nitin Gadkari said that the firms in the micro, small and medium sector with good track record are now being encouraged for capital market. Gadkari added there exists a huge opportunity for investment in scrapping policy. The MSME Minister also invested foreign investors to invest in the Indian MSMEs and expressed hope that it will drive the sector to become the world’s largest manufacturing hub, by providing numerous opportunities.Union Minister Nitin Gadkari Inaugurates Technology Centres, Extension Centres To Boost MSME Sector.

He also promoted the use of solar energy for the micro, small and medium firms in another recent event. Gadkari had earlier urged the MSME owners to install rooftop solar for enhancing the efficiency of the firm and bring down the cost of operations substantially. He had said that the roof top solar system offers an excellent value proposition to Micro, Small and Medium Enterprises by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost. He also asked the people in the sector to avail concessional debt finance to do the same.

“I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops,” Union Minister Nitin Gadkari had said while addressing an event virtually earlier this month.