New Delhi: The Prime Minister, Shri Narendra Modi, today launched a support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector. As part of this programme, the Prime Minister unveiled 12 key initiatives which will help the growth, expansion and facilitation of MSMEs across the country.

-The launch of the 59 minute loan portal to enable easy access to credit for MSMEs. Loans upto Rs. 1 crore can be granted in-principle approval through this portal, in just 59 minutes. A link to this portal will be made available through the GST portal.

-2 percent interest subvention for all GST registered MSMEs, on fresh or incremental loans. For exporters who receive loans in the pre-shipment and post-shipment period, an increase in interest rebate from 3 percent to 5 percent.

-All companies with a turnover more than Rs. 500 crore, must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS).

-Public sector companies have now been asked to compulsorily procure 25 percent, instead of 20 percent of their total purchases, from MSMEs.

-25 percent procurement mandated from MSMEs, 3 percent must now be reserved for women entrepreneurs. Public sector undertakings of the Union Government must now compulsorily be a part of GeM. They should also get all their vendors registered on GeM.

-20 hubs will be formed across the country, and 100 spokes in the form of tool rooms will be established.

-He said clusters will be formed of pharma MSMEs. He said 70 percent cost of establishing these clusters will be borne by the Union Government. The return under 8 labour laws and 10 Union regulations must now be filed only once a year. The establishments to be visited by an Inspector will be decided through a computerised random allotment.

-An entrepreneur needs two clearances namely, environmental clearance and consent to establish. Under air pollution and water pollution laws, now both these have been merged as a single consent. The return will be accepted through self-certification.

-As the twelfth announcement, the Prime Minister mentioned that an Ordinance has been brought, under which, for minor violations under the Companies Act, the entrepreneur will no longer have to approach the Courts, but can correct them through simple procedures.

-The Prime Minister said that these decisions would go a long way in strengthening the MSME sector in India. He said the implementation of this outreach programme will be intensively monitored over the next 100 days.

PIB