Tag: MSME

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MSME

Credit Guarantee Scheme For MSME Sector Unlikely to be Extended Beyond October 2020

Currency (Photo Credits: Pixabay) Representational Image

New Delhi, October 19: The Narendra Modi government is unlikely to extend the Rs 3 lakh crore-Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector beyond October. According to a PTI report, this scheme is meant to provide financial support to businesses, primarily Micro, Small and Medium Enterprises (MSMEs), impacted by slowdown triggered by the coronavirus pandemic.

As per sources quoted in the report, the decision to not extend the ECLGS scheme has been taken even though the sanctioned amount so far is only nearly 65 per cent of the target.

On August 1, the government widened the scope of the Rs 3 lakh crore-scheme by doubling the upper ceiling of loans outstanding and including certain loans given to professionals like doctors, lawyers and chartered accountants for business purposes under its ambit.

The objective of the scheme is to provide support to all those affected in the coronavirus pandemic and if there are no takers for the scheme, then the scheme won’t be extended even though there is some room left.

On August 1, the government widened the scope of the Rs 3 lakh crore-scheme by doubling the upper ceiling of loans outstanding and including certain loans given to professionals like doctors, lawyers and chartered accountants for business purposes under its ambit.

 

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MSME

MSME Loans Update: Interest Subvention Scheme on MSMEs Loans Extended Till End of March 31, 2021

Mumbai, October 8: The Reserve Bank of India (RBI) announced that the two percent interest subvention scheme for micro, small and medium enterprises (MSMEs) on loans extended by co-operative banks has now been extended till March 31, 2021. Moreover, the terms of the scheme have also been tweaked. In November 2018, the government had announced the ”Interest Subvention Scheme for MSMEs 2018” for scheduled commercial banks for two financial years 2018-19 and 2019-20. With the new development in place, the scheme has now been extended for the financial year 2020-21.

According to reports, co-operative banks also became as eligible lending institutions effective from March 3, 2020 and the coverage of the scheme is limited to all term loans and working capital to the extent of Rs 100 lakh. The scheme provides for an interest relief of two per cent per annum to eligible MSMEs.

The RBI, in a notification, said certain operational guidelines for the scheme have been further modified by the government. The validity of the scheme has been extended till March 31, 2021. “Accordingly, fresh or incremental term loan / working capital limit extended by co-operative banks with effect from March 3, 2020 will be eligible for coverage under the scheme,” RBI said.

A report by PTI said that the requirement of Udyog Aadhaar Number (UAN) may be dispensed with for units eligible for GST. Units not required to obtain GST may either submit Income Tax Permanent Account Number (PAN) or their loan account must be categorised as MSME by the concerned bank, the RBI said. Moreover, RBI has asked co-operative banks to take appropriate action as envisaged in the operational guidelines and issue necessary instructions to their branches or controlling offices for successful implementation of the scheme.

Reports inform that according to the scheme, the loan accounts on the date of filing claim should not have been declared as non-performing assets (NPAs). No interest subvention would be admissible for any period during which the account remains NPA.

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Technology

‘MSME Prerana’, an Online Business Mentoring Programme Launched for MSMEs; Here’s All You Need to Know

Online Business
Online Business

Chennai, October 7: ‘MSME Prerana’, an online business mentoring programme for MSMEs by state-run Indian Bank has been launched. The initiative was launched by Union Finance Minister Nirmala Sitharaman on October 6. The online programme will be made available in local languages and is aimed at empowering entrepreneurs through skill development and capacity building workshops. Sitharaman launched the initiative at the Indian Bank’s corporate centre in Chennai.  During the launch, Sitharaman said Indian Bank has taken an out-of-the-box initiative in launching MSME Prerana which will handhold the entrepreneurs through a mentoring program.

The Finance Minister added saying that this novel initiative shall further inspire others in the banking sector to adopt similar measures. Financial Services Secretary Debashish Panda, who also participated in the launch event through video conferencing, delved on the various initiatives taken by the government to support MSMEs.

About ‘MSME Prerana’ Programme:

  1. The ‘MSME Prerana’ initiative is in collaboration with Poornatha & Co, a firm that designs entrepreneurial development programs in vernacular languages using online web-based interactive sessions and case studies.
  2. The first two programs will be in Tamil for the Coimbatore clusters of Indian Bank. It will then be scaled up across the country in Hindi, Telugu, Kannada, Bengali and Gujarati, the Bank statement said.
  3. Spread over 12 sessions, the program enables MSME entrepreneurs to acquire expertise in handling finance and managerial skills, capacity to handle crises in business, understand the dynamics of credit rating and risk management.
  4. While the sessions on managerial and financial skills will be conducted by Poornatha & Co, the banking related topics will be handled by Indian Bank.
  5. MSME Prerana is our effort to bridge this gap in the skill sets. It is a business mentoring program that gives inputs in simple terms (no jargon) and in the local vernacular.
  6. On successful completion of the online programme, all participants would get a certificate, issued jointly by Indian Bank, Poornatha & Co and MADE (Michigan Academy for Developing Entrepreneurs), USA.

The lender’s Managing Director and CEO Padmaja Chunduru said during its outreach programs, webinars and interaction with the bank”s MSME units, one main takeaway was that there is still a lot of dependence on chartered accountants or agents to access bank loans.

Chunduru added that the barriers these MSMEs face include language, confusion about what the bank looks for when they approach for loans, how to manage cash flows, which government schemes are available and suitable for them and how to register themselves for these schemes.

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MSME Startup

Foreign Firms Flouting MSME Tendering Norms, Highlights CEAI in a Letter to Nitin Gadkari

Ministry of MSME
Ministry of MSME (Photo Credit: PIB)

New Delhi, October 7: An engineering professionals body-the Consulting Engineers Association of India (CEAI), in a letter to Nitin Gadkari, has alleged that foreign companies are flouting the MSME tendering norms.

The letter has drawn the attention of the government towards flouting of the MSME tendering norms by “the powerful foreign companies”. The body mentioned that the government has changed the tendering system to benefit the small and medium enterprises in the country by limiting tenders below Rs 200 crore for Indian companies only.

However, the provisions are being flouted by powerful foreign companies wherein they set up business operations in India by incorporating a company under Companies Act 2013 either as Joint Ventures or Wholly owned subsidiaries or a Liaison/Representative Office.

According to an IANS report, the body’s President highlighted that these entities operate as an Indian Company, duly complying with the provisions of the Indian Company Law and Indian tax laws. The current definition allows such companies to enjoy all benefits provided to Indian companies, especially the MSME’s.

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MSME

MSME Sector to Grow and Contribute to Job Creation With the Help of Structural Reforms Taken by Modi Govt, Says Finance Ministry Report

Business in India | Representational Image Only (Photo Credits: Pexels)

New Delhi, October 6: The Finance Ministry on Monday said that the major structural reforms launched by the Modi government in agriculture markets, labour laws provide unparalleled opportunity for the MSME sector to grow and prosper. These reforms will in turn contribute to job creation in the primary and secondary sectors. A report by the Finance Ministry stated that the historic labour reforms will benefit MSMEs to increase employment, enhance labour productivity and thereby wages in MSMEs.

According to a report by PTI, the Finance Ministry said that important structural reforms that have been taken by the government to ease the risks posed by COVID-19 pandemic will strengthen India’s economic fundamentals and ensure long-term sustained growth. “The enabling policy environment and initiatives taken by all stakeholders to seize the available opportunities will actualise the growth potential of the Indian economy,” the monthly economic report prepared by the Economic Affairs Department of the Finance Ministry said.

The report further said that the sustained spread of the virus poses a downside risk to short-term and medium-term growth rate, adding that the government has strategically undertaken various important structural reforms, encompassing various sectors, to combat these risks. Meanwhile, the implementation of ‘Atmanirbhar Bharat’ package and unlocking of the economy have ensured that economic recovery in India has gained momentum.

The PTI report adds that as on September 25, India’s foreign exchange reserves stood at USD 542.02 billion, equivalent to more than 13 months of imports. India”s probable growth path is visible in this assessment.

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Business motivation Strategy

Bada Business ‘Retail Ka Mahakumbh’ 2020 Live Streaming: Watch Dr Vivek Bindra Share His Business Expansion Strategies During World’s Largest Webinar on Sept 27

Bada Business Retail ka Mahakumbh. (Photo Credit: Bada Business)
Bada Business Retail ka Mahakumbh. (Photo Credit: Bada Business)

Mumbai, September 26: The virtual event of Bada Business’ ‘Retail Ka Mahakumbh’ is all set to begin virtually on Sunday, i.e. on September 27. This is touted as the world’s largest webinar and will be held for a duration of 1.5 hours from 12 noon to 1.30 pm. Bada Business founder Dr Vivek Bindra will guide the event attendees on how to expand their business in the time of economic crisis and COVID-19 pandemic. The event will be broadcast live on Youtube. Interested entrepreneurs and budding professionals can watch the live session at Dr Vivek Bindra YouTube channel.

The event is free for anyone who is keen to gain knowledge that would be imparted by Dr Vivek Bindra during the live session of the virtual event — ‘Retail Ka Mahakumbh’ on September 27. Dr Bindra is considered as one of the top motivational speakers of India and is an inspirational Pathfinder to various high-profile entrepreneurs. All those who are keen to attend the live session of ‘Retail Ka Mahakumbh’, can register at the official portal of Bada Business.

Here’s the Live streaming link:

About Bada Business and Dr Bindra:

Dr Vivek Bindra is Asia’s No.1 motivational speaker and business coach. He is an international motivational speaker, leadership consultant and business coach. He has also been awarded honorary PhD degree. Dr Bindra founded Bada Business (BB) with the vision to empower Indian entrepreneurs & MSME businessmen and businesswomen with the knowledge, skills and network to grow their enterprise. BB offers a world-class education in Hindi language and offers in-depth problem solving for entrepreneurs with its problem-solving courses.

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E-Commerce MSME Startup Strategy

Amazon India Helps Women Entrepreneurs, Artisans and Weavers to Double Their Sales in 10 Weeks Under ‘Stand for Handmade’ Initiative

Amazon India. (Photo Credit: Image grab)
Amazon India. (Photo Credit: Image grab)

Bengaluru, September 23: Amid the COVID-19 pandemic, Amazon India came up with ‘Stand for Handmade’ initiative, to help over 10 lakh artisans and weavers and women entrepreneurs. On Monday, the e-commerce portal stated that customers from more than 12,000 pincodes in India purchased a product from the ‘Stand for Handmade’ store front. Due to this, artisans, weavers and women entrepreneurs were helped to double their sales in the 10-week period.

Amazon further added that the ‘Stand for Handmade’ initiative enabled sellers from Amazon Karigar — for weavers and artisans and Amazon Saheli — for women entrepreneurs — to register 3.2 times and 2.1 times growth. Adding more, it said that 32 sellers crossed Rs 1 lakh in sales during the 10-week period while two sellers crossed Rs 1 crore in sales.

Issuing a statement, Director of MSME and Seller Experience at Amazon India — Pranav Bhasin — said, “We are humbled by the response to this initiative as customers from more than 12,000 pincodes purchased a product from the specially-curated store front. With the festive season coming up, we remain focused on helping our sellers further accelerate and grow their business.”

Bhasin added that more than 200 new sellers joined the Karigar programme and benefited from 100 per cent SoA (sell on Amazon) fee waiver. Categories which witnessed the highest overall sales included apparel, grocery and home decor. Also, 508 Sambalpuri weaver families from Orissa were able to seller sarees than could span over 17,738 yards while more than 4,500 Pochampally weavers from 56 villages of Telangana have recovered and were able to resume their handloom weaving business.

Amazon said, “More than 5,200 weavers from Bengal are now back to weaving exquisite weaves on their looms and the lives of 200 Banarasi weavers were positively impacted through sales of handloom Dupattas and Sarees.” It added that more than 8 lakh artisans and weavers from Amazon Karigar program and more than 2.8 lakh women entrepreneurs from Amazon Saheli program benefited from a 100 per cent SoA fee waiver for 10 weeks.

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Strategy

Bada Business ‘Retail Ka Mahakumbh’ 2020: Dr Vivek Bindra to Share Business Expansion Strategies During World’s Largest Webinar on September 27

Bada Business 'Retail Ka Mahakumbh' Event 2020 (Photo Credits: badabusiness.com)

New Delhi, September 23: Bada Business ‘Retail Ka Mahakumbh’ event will be held virtually on Sunday i.e on September 27. Touted to be the world’s largest webinar, the event would be held for a duration of 1.5 hour- i.e. from 12 Noon to 1.30 PM on September 27. During the event, Dr Vivek Bindra, who heads Bada Business, would be guiding the event attendees on how to expand their businesses in an era where global brands are making inroads and the chorus is ‘vocal for local’. On his YouTube Channel, Dr Bindra announced that he would be sharing business strategies that he would be useful for both – those who rely on an offline retail consumer base and even those who want to reap the benefits of the surging e-commerce market.

It must be noted that the event is free for anyone who wants to gain knowledge that would be imparted by Dr Bindra during the session on September 27. Dr Bindra is also among the top motivational speakers of India. For those planning to attend the ‘Retail Ka Mahakumbh’, the registration could be made online at the official portal of Bada Business. Here’s the direct link to Register Yourself for the Mega Event.

About Bada Business

Bada Business, a firm owned by Dr. Vivek Bindra, was founded with the vision to empower Indian Entrepreneurs & MSME businessmen and businesswomen with the knowledge, skills and network to grow their enterprise. Bindra’s YouTube channel is the world’s largest YouTube channel on entrepreneurship and business, has garnered11.9 Million subscribers. Bada Business offers world class education in Hindi language, which is the largest spoken language in the Indian subcontinent. The flagship program by Bada Business is EAE (Everything About Entrepreneurship). The company also offers in-depth problem solving for entrepreneurs with its problem solving courses.

About Dr Vivek Bindra

Dr. Vivek Bindra is Asia’s No.1 motivational speaker and business coach. He is the Founder and CEO of Bada Business Pvt. Ltd. The YouTube channel of “Dr. Vivek Bindra” is the world’s largest on entrepreneurship and business in Hindi language.

 

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MSME

Now MSMEs Can Get NOCs From Single Window & Electric Connection Upto 20 KW in 3 Days of Filing the Application in Yogi Aditynath’s Uttar Pradesh Govt

MSME
MSME (Photo Credits: Wikipedia)

Lucknow, September 22: Yogi Adityanath’s government has introduced measures to provide relief to small business owners in the state, who will no longer be required to run from department to department to acquire a No Objection Certificate to start their venture.

Under the state’s new MSME (Establishment and Operations) Act of 2020, MSMEs will get NOCs from a single window, and electricity connection of up to 20 KW within three days of filing the application. Till now, MSMEs would need to get 80 types of NOCs from 29 departments.

The new law was notified on Sunday, and it seeks to ease the process of opening up businesses in the state. According to the state government, there are a total of 90 lakh MSME units, registered and unregistered, in UP. Under the new law, the small business owners will just be required to approach the district-level nodal agency (DLNA), which will be established under the Act and have several state officials including the district magistrate (DM).

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E-Commerce Legal MSME

KVIC’s Legal Action Forces Flipkart, Amazon, Snapdeal to Remove 160 Fake Khadi Products Online

KVIC. (Photo Credit: Image grab)
KVIC. (Photo Credit: Image grab)

New Delhi, September 20: The Khadi and Village Industries Commission’s (KVIC) on Sunday informed that its firmness had forced e-commerce portals like Amazon, Flipkart, Snapdeal and others to remove over 160 web links selling products in the brand name of ‘Khadi’. The new development comes days after KVIC served legal notices to over 1000 firms using the brand name ‘Khadi India’ to sell their products.

Issuing a statement, KVIC said, “These e-commerce portals were selling products like Khadi masks, herbals soaps, shampoos, cosmetics, herbal mehandi, jackets, kurta and many such products through different sellers using the brand name ‘Khadi’. This created a false impression among online buyers that these commodities were genuine ‘Khadi’ products. KVIC also stated that a majority of the products that have been removed were being sold by one Ayush E-Traders. This firm has confirmed to KVIC that it has removed 140 links for various products that were being sold as ‘Vagad’s Khadi Products’.”

Adding more, KVIC stated that there has been a steep rise in violation of Khadi trademark as the popularity of Khadi grew manifold in recent years. It added that a number of online sellers began selling random products in the name of Khadi. For the ease of online customers to buy genuine Khadi products, KVIC has launched it’s e-portal selling a range of 300 products online at www.kviconline.gov.in/khadimask.

KVIC recent action has resulted in shutting down a number of stores across the country that were selling fake Khadi products. KVIC Chairman Vinai Kumar Saxena said, “Legal notices have been issued to various firms essentially to safeguard the interest of Khadi artisans. This trademark violation has a direct bearing on the livelihood of our artisans who are making genuine handcrafted products.”

Earlier in August, KVIC had issued legal notices to two firms Khadi Essentials and Khadi Global for unauthorizedly selling cosmetics and other products in the name of Khadi. The KVIC had also sought damages to the tune of Rs 500 crore from Fabindia which is pending before the Bombay High Court.