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Union Minister Nitin Gadkari Inaugurates Technology Centres, Extension Centres To Boost MSME Sector

Nitin Gadkari (Photo Credits: Facebook)

The government is undertaking various initiatives for the development of the MSME sector. Several projects and schemes have been launched to promote the welfare of various firms in the micro, small and medium sector. In lines with this, Union MSME Minister Nitin Gadkari has has inaugurated new technology centres, one at Visakhapatnam in Andhra Pradesh and other at Bhopal in Madhya Pradesh, three extension centres of big technological centres and seven mobile Udyam Express. These centres have been inaugurated to increase the e geographic footprint of Technology Centres network through future ready new Technological Centres with vertical as well as horizontal expansion to cover more states and regions, making its reach across the country. Udyam Registration Portal: GSTIN No Longer Mandatory for Registering MSMEs.

The Technological Centres and Extension Centre are expected to boost the micro, small and medium enterprises and people involved in the sector by providing an increased capacity of training and enhancing skills of around four lakh trainees, providing assistance to around one lakh MSMEs in terms of technological, skilling and advisory support. It has been undertaken to increase the competitiveness of various MSMEs in the country. It also aims for creation and registration of more firms under the MSME sector. It also tragets to improve and enhance employment generation capacity of various firms in the micro, small and medium sector. RBI Extends Deadline For Udyog Aadhaar Memorandum of MSME Registrations Till March 31, 2021.

At the virtual inauguration event of the new technological and extension centre, the Union Minister of Micro, Small and Medium Enterprises, Nitin Gadkari said, “if the country has to overcome three biggest problems of poverty, starvation and unemployment, then we have to create jobs.” He added, “the technological centres should have coordination, cooperation and communication with the local industries.” Gadkari said, “the country has huge potential for raw material, young and skilled manpower, government is ready to support all entrepreneurs and we need to take the cooperation of IITs, engineering colleges and successful persons in the society.” He emphasised on the need of integrated development.

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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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SIDBI Collaborates with NSE to Develop Debt Capital Platform for Firms in MSME Sector

NSE and SIDBI | Representational Image (Photo Credits: Wikimedia Commons)
NSE and SIDBI | Representational Image (Photo Credits: Wikimedia Commons)

The micro, small and medium enterprises are blooming in the country with various government and non-government agencies undertaking several schemes and programmes to increase the investment flow for the firms in the sector. Massive inflow of funds has also helped the sector to stay afloat in even as major business industries suffered and incurred losses owing to the economic slowdown induced by the lockdown imposed to curtail the spread the coronavirus. The MSME sector frayed pretty well in the COVID-19 era as well.

There are various initiatives by public and private sector banks offer equity-based finance to the micro, small and medium enterprises. Even the non-banking financial institutions have extended schemes to support the firms in the MSME sector. However, the need to develop to additional debt and equity instruments to create more financial solvency and soundness in the sector. It is important for the overall development of the sector- capital intensive and labour incentive both. Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses.

Recently, the National Stock Exchange (NSE) entered into an agreement with the Small Industries Development Bank of India (SIDBI) to explore the feasibility of a debt capital platform for the micro, small and medium enterprises. “Keeping in view the large and diversified MSME sector in the country, there is a continuous need for various institutions to co-ordinate and co-operate with each other for the benefit of MSME sector,” V Satya Venkata Rao, Deputy Managing Director of the Small Industries Development Bank of India told the reporters in this contest. MSMEs in Haryana Get Major Boost! Products Manufactured by MSMEs in the State To Get Global Market, Talented Artisans To Benefit.

Taking about the collaboration he said that both the institutions (NSE and SIDBI) run several programmes for the enterprises in the MSME sector, adding that the co-operation will help increase the impact and reach of these programmes. Rao also said that an expert committee on MSMEs, headed by U K Sinha, the former Chairman of Securities and Exchange Board of India (SEBI) has made several recommendations for the micro, small and medium enterprises, including the need to develop additional instruments for debt and equity, which will help crystallise new sources of funding for MSMEs.

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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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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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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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MSME Loans: Bank of Maharashtra Ties Up With LoanTap Credit for Co-Lending to MSMEs

Mumbai, February 9: In a bid to facilitate loans to micro, small and medium enterprises (MSMEs), the state-owned Bank of Maharashtra inked a pact with LoanTap Credit on Monday. In a statement, the Bank said that it has entered into a co-lending agreement with the Pune-based non-banking financial company LoanTap Credit Products to help MSMEs in loans. Under the co-lending model, the bank will have an exposure of up to 80 percent while the rest will be borne by the LoanTap, the bank said in a release.

Bank of Maharashtra managing director and CEO AS Rajeev said that the co-lending is the system introduced by RBI in the wake of the liquidity crisis at non-banking finance companies. This is done to enhance the credit flow to the unserved and underserved sector and make available funds to the ultimate beneficiary at an affordable cost.

The RBI in September 2018, RBI had come out with a co-origination model between banks and NBFCs for providing credit to the priority sector. Last year in November, RBI rechristened the scheme as Co-Lending Model (CLM), and revised the terms to provide greater operational flexibility to the lending institutions.

BoM’s executive director Hemant Tamta said the co-lending model shall help the bank to meet the priority sector lending target. It will be beneficial for all NBFCs having wider outreach and customers, who will be facilitated with low cost credit from banks.

The co-lending model provides ease of loan sanctions at borrower’s convenience through digital lending platforms, which cover end-to-end loan processing cycle without manual intervention, from on-boarding of customers to loan disbursement and monitoring.

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MSME

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

Nitin Gadkari | File Image (Photo Credits: Facebook)

New Delhi, February 7: Union Minister Nitin Gadkari said on Saturday said that the government aims to increase the MSME sector’s share in the GDP to 40 per cent to benefit the rural poor. At present, around 6.5 crore micro, small and medium enterprises (MSMEs) contribute 30 percent to the GDP. While addressing a workshop at the Mahatma Gandhi International Hindi University at Wardha in Maharashtra, Gadkari emphasised that a policy has to be made to empower the poor.

The MSME Minister added saying that village industries and Khadi generate as much as Rs 88,000 crore on an annual basis. “We are not in favour of westernization, but we are in favour of modernization, in the villages. This is the time for socio-economic transformation”, Gadkari said. He said this can be increased if policy is flexible and innovative, and is aimed at improving the life of people living in villages. The minister also stressed that goods produced by village industries can be sold better if they are marketed better.

Gadkari stressed on the point that migration of as much as 30 percent of the country’s population from rural areas has taken place since independence due to lack of growth of the village economy. Gadakri recalled the philosophy of Mahatma Gandhi, Vinoba Bhave, Pandit Deendayal Upadhyaya, Ram Manohar Lohia and Jayaprakash Narayan and said that their aim was the same – to improve the lives of the poor living in villages. “Unless solutions are found to ensure that employment is generated in villages, and they are clean and have enough facilities, the dreams of these leaders will not be fulfilled”, he said.

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MSMEs in India: Banks Can Deduct Loans to New MSME Borrowers From NDTL for CRR Purpose, Says RBI

Money (Photo Credits: Unsplash)

New Delhi, February 6: With an aim to incentivise new credit flow to the micro, small, and medium enterprise (MSME) borrowers, all the Scheduled Commercial Banks will be allowed to deduct credit disbursed to ‘New MSME borrowers’. The banks have been allowed to deduct the credit from their net demand and time liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR).

The new development comes as part of the additional measures announced by RBI Governor Shaktikanta Das after the MPC meeting. The ‘New MSME borrowers’ have been defined as those who have not availed any credit facilities from the banking system as on January 1, 2021.

The exemption will be available for exposures up to Rs 25 lakh per borrower for credit extended up to the fortnight ending October 1, 2021. According to reports, details of the scheme would be spelt out separately by the Reserve Bank of India (RBI).

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MSME Sector in India Gets Major Boost As Banks Sanction Rs 2.05 Lakh Cr Loans to 81 Lakh MSMEs Under Credit Guarantee Scheme

New Delhi, December 12: With an aim to help the MSME sector which was impacted by disruptions caused due to the coronavirus pandemic, the Finance Ministry on Friday said banks have sanctioned loans worth Rs 2,05,563 crore to about 81 lakh accounts under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector. In a series of tweets, the Finance Ministry said that as many as 40 lakh MSME accounts have received Rs 1,58,626 crore till December 4. Another tweet informed that Rs 3 lakh cr Collateral-Free Guaranteed Loans – Budgetary provision of Rs 4,000 crore made for the Scheme in First Supplementary Demand for Grants for FY 2020-21.

While announcing the Aatmanirbhar Bharat Package 3.0, Finance Minister Nirmala Sitharaman had said that Rs 2.05 lakh crore sanctioned and Rs 1.52 lakh crore disbursed under ECLGS 1.0. “As part of the Atmanirbhar Bharat Abhiyan 3.0 (announced on November 12), ECLGS Scheme has been extended through ECLGS 2.0 for the 26 stress sectors and health care sector with credit outstanding of above Rs 50 crore and up to Rs 500 crore as on February 29, 2020,” a tweet said. Credit Guarantee Scheme: Banks Sanction Rs 1.86 Lakh Cr to 50 Lakh MSMEs Impacted by Slowdown Amid COVID-19 Pandemic.

The Finance Ministry said that under ECLGS 2.0, entities with outstanding credit above Rs 50 crore and not exceeding Rs 500 crore as on February 29, 2020, which were less than or equal to 30 days past due as on February 29, 2020 are eligible. The loans provided under ECLGS 2.0 will have a five-year tenor, with a 12-month moratorium on repayment of principal. Meanwhile, the entire Scheme (ECLGS 1.0 and ECLGS 2.0) valid till March 31, 2021, it said.

As part of the Aatmanirbhar Bharat Package, the government has announced to cover 2.5 crore farmers under the KCC scheme with a credit boost of Rs 2 lakh crore through a special saturation drive.