SMALL FIRMS CAN GET `1CR LOAN IN 59 MIN
In a Diwali bonanza, Prime Minister Narendra Modi on Friday announced a slew of measures, including sanction of loans of up to `1 crore to small and medium enterprises in 59 minutes through a special portal, to give a boost to the nation’s second biggest employing sector.
The 12 new decisions announced will enhance small industries’ credit access, a move seen as a part of the government’s political outreach ahead of the Lok Sabha polls just months away.
The decisions, which he termed as “historic”, were announced to boost MSMEs by improving their access to market, hand-holding and offering facilitation support. The decisions also include relaxation in labour and company laws as well as easier compliance with environmental rules for MSMEs.
The Prime Minister on Friday said the government’s move will make Diwali brighter for the sector and its millions of entrepreneurs and employees.
In a Diwali bonanza, Prime Minister Narendra Modi on Friday announced a slew of measures, including sanction of loans of up to `1 crore to small and medium enterprises in 59 minutes through a special portal, to give a boost to the nation’s second biggest employing sector.
GST-registered MSMEs can now avail of loan of up to `1 crore in just 59 minutes, he said announcing the measures. Also, GST-registered MSMEs will get 2 per cent interest subvention or rebate on incremental loan of up to `1 crore, he said.
Interest subvention on pre and post shipment credit for exports by MSMEs has been increased from 3 per cent to 5 per cent, Modi informed.
The Prime Minister also announced `6,000 crore for creation of 20 hubs and 100 tool rooms for technology upgradation. Talking of India jumping 23 places on World Bank’s “Ease of Doing Business” ranking, Mr Modi said in four years his government has achieved what many did not believe and achieved what no other nation in the world has done — leaping from rank 142 in 2014 to 77 now. “Breaking into the top-50 rank is not far away,” Mr Modi claimed.
To rid the sector of inspector raj, he announced that inspections of factories will be sanctioned only through a computerised random allotment and inspectors will have to upload reports within 48 hours. “No inspector can now go anywhere. He will be asked why he went to a factory,” he said.
Easing compliance with environmental rules, MSMEs will need single air and water clearance to establish a factory. MSMEs will have to file just one return on eight labour laws and 10 central rules, he said, adding that an ordinance has been promulgated to simplify levy of penalties for minor offences.