Tag: MSME ministry

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MSME

Udyam Registration Portal: GSTIN No Longer Mandatory for Registering MSMEs

MSME (Photo Credit: Wikimedia Commons)
MSMEs (Representational Image)

The government is taking several steps to provide impetus to the enterprises in the MSME sector. Over the last few years, various projects and schemes have been launched by the central and state governments in order to promote and develop the Micro, Small and Medium Enterprises. In lines with the Narendra Modi-led government’s visionary ‘Digital India’ initiative, several efforts have been put in  by the Nitin Gadkari-led MSME Ministry to digitise processes involved in registration of firms under the micro, small and medium enterprises. In order to promote ‘ease of doing business’, steps have been undertaken to streamline all the procedures related MSMEs’ interaction with the government to reduce unnecessary wastage of time and resources and   increase business’ efficiency.

One such initiative by the central government to simplify the registration process for the MSMEs is the launch of the Udyam Registration Portal. Launched in July last year, it was aimed to eliminate the excessive paperwork involved in the registering process and make the work more streamlined. The objective of the portal is to provide a single-page registration, consume less time and simplify processes of registering any enterprise under MSME. RBI Extends Deadline For Udyog Aadhaar Memorandum of MSME Registrations Till March 31, 2021.

However, the major issue with the portal being, that as per a notification dated November 26,2020, GSTIN was made  a mandatory condition to register the firm through the Udyam Registration Portal with effect fro April 1, 2021. Following complaints and criticism by various MSME owners and businessmen, the Union Ministry of Micro, Small and Medium Enterprises, have done away with this requirement. MSMEs in India: Over 11 Lakh MSMEs Registered So Far on Udyam Online System Since July; Here’s How You Can Register Your MSME Online.

As per a notification dated March 5, 2020 the MSME Ministry examined the matter related tothe mandatory requirement for filing Udyam Registration with those for filing GST Returns, in the interest of those enterprises that are exempted from filing returns. The business owners can now register under the MSME sector through the portal by using their PAN (Permanent Account Number) cards only,  the GSTIN is no longer a mandatory requirement for the same.

Following the notification last year, various MSME associations said that the measure of making GSTIN mandatory is impacting the registration process as many enterprises are exempt from the mandatory requirement of filing GST Returns as per the Goods and Service Tax Act. They also stated that the annual turnover for several MSME might be less than the threshold limit for exemption from registration under said act.

The Udyam Registration Portal has been a welcomed move by various existing MSMEs and the business owners who have been planning to get their firms registered under the sector. It is has simplified the entire process of registration, making it more user friendly and transparent. It also aims to support several  micro-enterprises, including skilled craftsmen and artisans and other enterprises in the informal sector and unorganised sector, by easing the process of registration.

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MSME

MSMEs Should Avail Concessional Finance and Install Rooftop Solar System to Increase Business Efficiency, Says Union Minister Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

The central government and its various agencies are undertaking various steps to promote and develop the Micro, Small and Medium Enterprises in the country. Several schemes and programmes have been initiated under different developments plans to enhance the MSME sector, thereby helping firm establish themselves, sustain and grow. The MSME Ministry spearheaded by Nitin Gadkari has also issued certain guidelines and road map for the successful and progressive running of the businesses in the Micro, Small and Medium Enterprises. In a recent event also, Gadkari provided certain advisory for various firms in the sector. Champions: MSME Ministry’s Grievances Redressal Portal Resolves 26,693 Complaints in 9 Months.

The Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways  Nitin Gadkari have urged the business owners to install rooftop solar for enhancing the efficiency of the firm and bring down the cost of operations substantially. He 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,” said Union Minister Nitin Gadkari while addressing an event virtually. He added that a large amount (average Rs 8 and higher per unit) is being paid by the firms in the MSME sector for power consumption, which contributes to up to one-fifth of the overall production costs. Major Boost to MSME Sector: Govt Trying to Make 5,000 MSME Clusters Under SFURTI Initiate, Says Union Minister Nitin Gadkari.

“To assist MSMEs in implementing rooftop solar projects, the ministry is working with the World Bank on a credit guarantee program to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record INR 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses,” said Nitin Gadkari.

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Major Boost to MSME Sector: Govt Trying to Make 5,000 MSME Clusters Under SFURTI Initiate, Says Union Minister Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

In an attempt to boost the Micro, Small and Medium Enterprises, Union MSME Minister Nitin Gadkari has inaugurated 50 artisan-based Scheme of Fund for Regeneration of Traditional Industries (SFURTI) clusters across over 18 States. At its launch the MSME Minister also said the central government is making efforts to establish at least five thousand MSME clusters under the SFURTI scheme. For the development of these clusters, the MSME Ministry spearheaded by Nitin Gadkari has funded Rs 85 Crore. Under the scheme, various small and medium scale traditional industries and artisans into clusters with the aim to improve their earnings and make them more competitive. MSME Credit Moves Towards Pre-Pandemic Levels, Witnesses a Growth of 5.7%: Report.

Gadkari also informed that the ministry is trying to fast track the approval process for the clusters, adding that these clusters would be helpful to farmers and craftspeople be independent. The clusters under the SFURTI scheme offers various programmes for the development of MSMEs including skill development, capacity building, creation of facilities such as common facility centres, rehousing facilities and marketing and e-commerce assistance to local industries. Indian SMEs Plan To Expand Businesses As Economy Revives, Restoration of Business Activities Likely To Gain Momentum Post COVID-19 Era: Survey.

Through these clusters more than 42 thousand artisans have been ensured continuous support and assistance in the traditional segments of muslin, khadi, coir, handicraft, handlooms, wood craft, leather, pottery, carpet weaving, bamboo, agro processing, tea and others. The SFURTI clusters have been inaugurated in several states including Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Nagaland, Odisha, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.

So far as many as 371 such clusters have been funded by the government under the Scheme of Fund for Regeneration of Traditional Industries initiative. A total of Rs 888 Crore have been spend for its development by the centre. Nitin Gadkari also said that the government is looking to increase the share of MSME sector in the country’s GDP to 40 per cent from the current 30 per cent and share of exports to about 60 per cent from 48 per cent.

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MSME

59 Minute Loan Approval Scheme: Loans Worth Rs 72,502 Crore Sanctioned to MSMEs Under Central Government’s Initiative

59-Minute Loan Approval Scheme| Representational Image (Photo Credits: Pixabay)
59-Minute Loan Approval Scheme| Representational Image (Photo Credits: Pixabay)

Government and its various agencies have undertaken several programmes and initiatives to promote the Medium, Small and Micro Enterprises and boost the sector. One such step is the 59-Minute Loan Approval Scheme for the MSME sector by the Public Sector Banks (PSBs). As per the recent data issued by the Ministry of Micro, Small and Medium Enterprises over 2 lakh loans were approved by the public sector banks till February 1, 2021 under this scheme. 2,23,501 loans worth Rs 72,502 Crore have been sanctioned by various public sector banks since the launch of the scheme in November 2018. From the total approved amount, around Rs 59,548 Crore have also been disbursed to the MSMEs as well. SMBs in India To Benefit As Google Announces Rs 109 Crore for Small and Micro Enterprises in the Country.

The  59-Minute loan approval scheme primarily focuses on individuals and the MSMEs with the aim to ensure easy credit to both of them. It undertakes the automation and the digitisation of the the various steps involved with the loan sanction activity to speed up the entire process and the credit gets approved by the public sector bank in less than 59 minutes. Terms and conditions are flexible and the borrower has the option to choose from various public sector banks. It provides various types of loans including working capital loan, mudra loan, term loan among others are offered to MSMEs under this scheme.

Business loan with the principal amount ranging between from Rs 1 Lakh to Rs 5 Crore are offered under the scheme. The borrower may or may not be asked to provide for collateral depending upon the loan amount. A minimum interest rate starting from 8.5 per cent is charged on the principal amount. Mudra loan are currently being provided for Rs 10,000 to Rs 10 Lakh. It is integrated with the government’s Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to check borrower’s eligibility. Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses.

In order to avail the loans under this scheme, an MSME is required to provide its GST Identification Number, Income Tax Returns, six-month bank statements, and owner’s details including personal, educational information and the ownership details of the enterprise. If an MSME is able to furnish all the required documents, it can easily apply for credit through the 59 Minute Loan Approval Scheme.

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MSME

Champions: MSME Ministry’s Grievances Redressal Portal Resolves 26,693 Complaints in 9 Months

MSME Ministry (Photo Credits: Wikimedia Commons)
MSME Ministry (Photo Credits: Wikimedia Commons)

Champions, Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength, the online portal started by the MSME Ministry to resolve and redress grievances pertaining to the Micro, Small and Medium Enterprises has been able to resolve over 26,000 complaints in a span of nine months. Through the online portal 26,693 issues were resolved uptill January 31, 2021, MSME Minister Nitin Gadkari recently said in the Parliament session. The redressal forum was launched in May last year. Its was undertaken to function as a a grievance registration and management system for MSME issues pertaining to finance, raw materials, labour, regulatory permissions, among others especially after the COVID-19 outbreak and the subsequent lockdown.

The web portal allows various micro, small and medium enterprises, its employees, associates and other stakeholders to register their complaints, suggestions or seek information around the support provided to MSMEs. Grievances that are registered by MSMEs either on the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) or any other portal of the MSME Ministry automatically gets taken up by the portal at- champions.gov.in. MSMEs in Haryana Get Major Boost! Products Manufactured by MSMEs in the State To Get Global Market, Talented Artisans To Benefit.

The grievances registered on this portal are then diverted to relevant government office, agency depending upon the nature of the complaint and are attended within three days. The matter “should not remain inconclusive after seven days” the MSME Ministry’s Secretary AK Sharma had said during the launch of Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength in May 2020. For unresolved complaints, the “top leadership of the MSME Ministry” will “pro-actively take up,” he had added. Credit Guarantee Trust for MSEs: Over 8 Lakh Entrepreneurs Get Credit Guarantee Under Scheme Run by MSME Ministry and SIDBI.

Enhancing the usage of portal, the MSME Ministry had also integrated its ideas.msme.gov.in portal to the redressal portal. It was done to share ideas and innovation for public reviews for vetting before sharing them on the Champions portal. Along with it, the ministry had set-up a Champion Control Rooms at MSME Development Institutes across India to handhold MSMEs in accessing support available through the portal.

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Credit Guarantee Trust for MSEs: Over 8 Lakh Entrepreneurs Get Credit Guarantee Under Scheme Run by MSME Ministry and SIDBI

MSME Ministry (Photo Credits: Wikimedia Commons)
MSME Ministry (Photo Credits: Wikimedia Commons)

The central government has launched several schemes to promote women entrepreneurship in the country as well as boost the Micro, Small and Medium Enterprises. One such schemes is the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). It has operated by the MSME Ministry in collabroation with the Small Industries Development Bank of India (SIDBI). Under this scheme, the agencies offer credit guarantee to financial institutions to provide collateral-free loans to MSEs. As per the recent government data, under this scheme guarantee of Rs 45,215.35 crore in 8,38,947 loan accounts have been approved in fiscal year 2020. 4,35,520 accounts were extended guarantee under the scheme in the previous financial year. Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector.

As many as 67,171 loan accounts of female entrepreneurs totaling to Rs 3,366.63 Crore have been approved under the scheme in the current financial year. Women entrepreneurs in Tamil Nadu got the maximum approval of Rs 394.50 crore on 8,593 accounts. It was followed by Uttar Pradesh where 6,289 accounts were approved for Rs 334.59 crore). Madhya Pradesh with 5,927 accounts approvals for Rs 215.42 crore and , Andhra Pradesh with 5,208 approvals for Rs 143.16 crore stood third and forth respectively. Meanwhile, 4,776 accounts were provided guarantee for Rs 295.22 crore in Karnataka . MSMEs in India: Govt Aims To Raise MSME Sector’s Share in GDP to 40% From the Current 30% To Benefit Rural Poor, Says Nitin Gadkari.

Continuing its efforts to develop and promote the MSMEs in India, the Union Budget 2021 also provided a share fair of public expenditure to the sector. In the budget for the upcoming financial year, Finance Minister Nirmala Sitharaman has allocated a fund of over Rs 15,000 Crore to the Micro, Small and Medium Enterprises, which stands at double the amount apportioned to the sector last fiscal. “We have taken a number of steps to support the MSME sector in this budget. I have provided Rs 15,700 crore more than double the previous year,” said the Finance Minister

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MSME

MSME Ministry Plans to Lease Technology Centres to Engineering Colleges, IITs, Industry Associations to Encourage Research & Innovation in India

Nitin Gadkari (Photo Credits: Facebook)

With an aim to encourage research and innovation in India, the MSME ministry plans to lease technology centres to engineering colleges, IITs, polytechnic colleges and industry associations. The announcement was made by MSME Minister Nitin Gadkari on Wednesda during the MSME Finance Week. Gadkari said micro, small and medium enterprises are the backbone of the economy and there is a need to create employment using surplus resources. The MSME Finance Week was a virtual event organised by the Global Alliance for Mass Entrepreneurship (GAME).

Under the MSME Ministry, the facilities of the technology centres allow designing and manufacture of sophisticated tools, parts, components and products in conformity with international standards. Reports inform that the latest hardware and software available at these centres ensures professional design and 3D solid modelling. The production facilities at the technology centres offer an array of cutting edge production services to MSMEs.

Moreover, these institutes provide technical services such as design of parts and components, materials testing, heat treatment, quality control, and technical consultancy related to the product & process improvement. The technology centres, apart from extending design, development & manufacturing support to MSMEs for complex tools, parts and components (many that serve as import substitutes), have also supported the strategic sectors such as aerospace, defence, atomic energy etc. of the country for their R&D requirements.

Gadkari observed that Rs 6,000 crore have been invested in technology centres until now. “Now we are planning to give these technology centres on a lease basis to engineering colleges, IITs, polytechnic colleges and industry associations with a good track record”, he said. He added saying that a key reason for most MSMEs to turn into non-performing assets (NPAs) is delayed reconciliation of their receivables and bills that creates liquidity constraints hence affecting their sustainability.

While delivering the keynote address at the event, Gadkari said at present, there is an import of Rs 8 lakh crore crude oil in the country. “Instead, we can build Rs 2 lakh crore ethanol economy by tapping into domestic resources. The gap between India and Bharat is still wide but with our motto of reform, perform and transform, we can definitely overcome the challenges,” he added.

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MSME

MSMEs in India: Over 11 Lakh MSMEs Registered So Far on Udyam Online System Since July; Here’s How You Can Register Your MSME Online

A worker at an MSME firm
A worker at an MSME firm. | Representative image.

New Delhi, November 11: As many as 11 lakh MSMEs in India have registered on the new online system of Udyam Registration so far in just less than 5 months. The Udyam Registration was launched in July by the government. Of the 11 lakh MSMEs, as many as 3.72 lakh enterprises have registered under manufacturing category whereas 6.31 lakh enterprises under service sector. The five leading states for Udyam registrations are Maharashtra, Tamil Nadu, Rajasthan, Uttar Pradesh and Gujarat.

The MSME ministry stated that the top five industrial sectors of registrations are food products, textile, apparel, fabricated metal products and machinery & equipment. 1,01,03,512 persons have been given employment by these registered units. Registration without PAN and GST number is permitted on the system up to March 31, 2021 as a transitional arrangement.

Reports inform that the share of micro enterprises is 93.17 percent whereas small and medium enterprises are 5.62 percent and 1.21 percent, respectively. Adding further, an official statement said that 7.98 lakh enterprises are owned by male whereas 1.73 lakh enterprises by female entrepreneurs, and 11,188 enterprises are owned by divyangjan entrepreneurs.

Here’s How MSMEs Can Register:

  1. MSMEs can register on the official website of Udyam Registration- i.e. udyamregistration.gov.in
  2. An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as ‘Udyam Registration’.
  3. A permanent registration number will be given after registration. After completion of the process of registration, a certificate will be issued online.
  4. This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
  5. There will be no need for renewal of Registration.
  6. The single window systems at Champions Control Rooms and at DICs will help you in the process. Registration Process is totally free. No Costs or Fees are to be paid to anyone.