59-minute quick ac­cess scheme for loan

A TO Z INDIA - - Inside - - Srivatsa. B

Prime Min­is­ter Naren­dra Modi launched the 'Sup­port and Out­reach' ini­tia­tive for Mi­cro Small and Medium En­ter­prises (MSMEs) on Fri­day, in Delhi. The PM an­nounced that 12 im­por­tant de­ci­sions have been taken by the gov­ern­ment for MSMEs. Sev­eral de­ci­sions have al­ready been im­ple­mented in the past cou­ple of days.

PM Modi an­nounced at the event that the gov­ern­ment is launch­ing a quick ac­cess scheme for a loan of up to Rs 1 crore for the MSME sec­tor. A 59-minute loan por­tal has been launched across the coun­try. He said, "To ease ac­cess to credit for the MSME sec­tor, it has been de­cided to launch a por­tal that will per­mit com­plet­ing for­mal­i­ties for grant of loan of up to Rs 1 crore in 59 min­utes." He also an­nounced that a 2% re­bate for loans of up to Rs 1 crore will be pro­vided to GST-reg­is­tered MSMEs.

A loan op­tion has been launched for GST reg­is­tered MSMEs through the GST por­tal as well, where MSMEs can ap­ply for loan. In­ter­est sub­ven­tion on pre and post ship­ment credit for ex­ports by MSMEs in­creased from 3 per cent to 5 per cent by the gov­ern­ment. Manda­tory sourc­ing by PSUs from MSMEs has been in­creased to 25 per cent from the pre­vi­ous limit of 20 per cent. He added that these in­cen­tives will help small and medium en­ter­prises.

The gov­ern­ment has also made it manda­tory for big com­pa­nies to regis­ter on trade re­ceiv­able dis­count­ing site. Large com­pa­nies are re­quested to clear the bills of MSMEs ex­pe­di­tiously. In or­der to boost fe­male en­trepreneurs in the coun­try, it is now manda­tory for gov­ern­ment com­pa­nies to buy at least 3 per cent of their pur­chases from women en­trepreneurs only.

Re­gard­ing scru­tiny on MSMEs, he said, “To do away with un­nec­es­sary scru­tiny, the gov­ern­ment has de­cided to reg­u­late in­spec­tor vis­its with a com­put­er­ized ran­dom al­lot­ment sys­tem. Now he can’t just go to any place on his own vo­li­tion and will have to en­ter the re­port on the por­tal in 48 hours. This de­ci­sion will prove to be very im­por­tant in re­duc­ing the In­spec­tor Raj to small-scale in­dus­tries. Now no In­spec­tor will come to you. He will be asked why you went to that fac­tory, what was the mo­tive.”

To ease com­pli­ance with en­vi­ron­men­tal rules, it was an­nounced that MSMEs will need a sin­gle air and wa­ter clear­ance and just one con­sent to es­tab­lish a fac­tory. It is manda­tory for cen­tral pub­lic sec­tor en­ter­prises to take mem­ber­ship of the Gov­ern­ment e-Mar­ket­place (GeM) in or­der to fa­cil­i­tate on­line pro­cure­ment of com­mon use goods and ser­vices by var­i­ous gov­ern­ment de­part­ments and or­gan­i­sa­tions.

In or­der to deal with the cash flow of MSMEs, all com­pa­nies with a turnover of more than Rs 500 crore would have to now come on Trade Re­ceiv­ables e-Dis­count­ing Sys­tem (TReDS) plat­form.

The world bank re­leased the ease of do­ing busi­ness rank­ing re­cently and In­dia showed mas­sive im­prove­ment by jump­ing 23 spots to land at 77th po­si­tion. Talk­ing about this leap, PM Modi said the break­ing into top 50 is pos­si­ble.

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