PM feels MSMEs pulse, launches fast credit
In a bid to attract the myriad number of MSMEs in the country the Modi government announced a slew of initiatives that are aimed at giving a fillip to this coveted sector.
As part of the support and outreach programme launched by the Prime Minister he unveiled 12 key initiatives which are to help the growth, expansion and facilitation of MSMEs across the country.
Among the most lionized initiatives is providing much needed capital to the SMEs in less than an hour.
Prime Minister Mr. Narendra Modi announced the launch of the 59 minute loan portal to enable easy access to credit for MSMEs. He said that loans upto Rs. 1 crore can be granted in-principle approval through this portal, in just 59 minutes. He said a link to this portal will be made available through the GST portal.
The PM said that a 2 percent interest subvention would be made available for all GST registered MSMEs, on fresh or incremental loans. For exporters who receive loans in the pre-shipment and post-shipment period, the Prime Minister announced an increase in interest rebate from 3 percent to 5 percent.
One of the other initiatives declared by the Prime Minister was that all companies with a turnover more than Rs. 500 crore, must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS). He said that joining this portal will enable entrepreneurs to access credit from banks, based on their upcoming receivables. This will resolve their problems of cash cycle said the PM.
Mr Modi further informed that on access to markets for entrepreneurs, the Union Government has made public sector companies to compulsorily procure 25 percent, instead of 20 percent of their total purchases, from MSMEs.
For women entrepreneurs he said that out of the 25 percent procurement mandated from MSMEs, 3 percent must now be reserved for women entrepreneurs.
The Prime Minister also informed that more than 1.5 lakh suppliers have now registered with GeM, out of which 40,000 are MSMEs. He said transactions worth more than Rs. 14,000 crore have been made so far through GeM. He said that all public sector undertakings of the Union Government must now compulsorily be a part of GeM. He said they should also get all their vendors registered on GeM.
There was also something for MSMEs in the pharma sector. It was informed that clusters will be formed of pharma MSMEs and that seventy percent cost of establishing these clusters would be borne by the government.
The Prime Minister said that the 12 decisions he announced, will mark a new chapter for the MSME sector. Noting that MSMEs are one of the principal employment generators in India, the Prime Minister recalled the glorious Indian traditions of small scale industry, including Ludhiana’s hosiery, and Varanasi’s sarees.
The Prime Minister also spoke of social security for the MSME sector employees. He said that a mission will be launched to ensure that they have Jan Dhan Accounts, provident fund and insurance.
He said the implementation of this outreach programme will be intensively monitored over the next 100 days. For more information on the loan programme you can visitpsbloansin59minutes.com