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Narendra Modi launches MSME support programme updates: GST-registered firms to get 2% rebate on incremental loan of up to Rs 1 crore

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Narendra Modi launches MSME support programme updates: GST-registered firms to get 2% rebate on incremental loan of up to Rs 1 crore
  • 18:03 (IST)

    Programme will strengthen MSMEs and write a new chapter for the sector: PM

    The 12 decisions taken by the government will strengthen MSMEs and write a new chapter for the sector. In the 100 district where there is a legacy of MSMEs with a specialization, there will be a review of the works which the PM said he would do himself.

    The team, which will be working on the ground, will be monitoring under the PM's supervision for the next 100 days.

  • 17:54 (IST)

    MSME sector's ease of doing business to pharma companies

    "My eighth announcement is attached to pharma companies. The MSME sector's ease of doing business to pharma companies, reaching customers directly, has decided to build a cluster now. About 70 percent spend on these clusters was also announced by the central government. Today's decision of the government will also prove to be very important to increase production in the pharma sector," Modi said

  • 18:00 (IST)

    Changes in Companies Act

    The government has made very big changes to the Companies Act, relieving MSMSEs from legal complications, Modi said.

    "There were provisions in the Companies Act, such as the laws involving minor faults or unintentionally violators, which were considered criminal. These led to MSMEs to even go to jail many times. A lot of time and money was spent on legal proceedings causing much trouble to small and medium industries. The Government has been brought in an ordinance to ease MSMEs from these troubles," the prime minister said. 

  • 17:57 (IST)

    Environment clearance and ease of self-certification

    The government has decided to have just one single consent for air pollution and water pollution laws. The government will rely on you to accept your returns on Self-certification. Labour will end inspection routine of environment like department and would just inspect 10 percent of MSME, said the prime minister. 

  • 17:55 (IST)

    Prime Minister's announcement on the removal of Inspector Raj 

    Modi said that in order to make the system transparent, the government  has been working continuously to reduce Human intervention.

    "To do away with unnecessary scrutiny, the government has decided to regulate inspector vistis 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," he added.

  • 17:46 (IST)

    Modi's announcement on tech upgradation

    "Today, the seventh declaration of my technological upgradation is associated with this important topic. The Government has decided to extend this system of toolroom to all over the region. For this, 20 hubs will be built and tool rooms such as 100 spokes will be installed all over the screen. I announce a package of Rs 6,000 crore for this important work today," Modi said 

  • 17:43 (IST)

    Govt companies to buy at least 3% of their purchases from women entrepreneurs

    "It is only today that an important decision was taken by the central government to further strengthen the system of Government e-marketplace (GeM)," Modi said.

    GeM has now been required to subscribe to all companies of the central government. Not only that, all their vendors -- MSME Nifty shall be registered on this platform, which will also greatly benefit in the procurement that MSME's are making. 

  • 17:39 (IST)

    The PM gives a boost to women entrepreneurs in MSME sector.

    The prime minister said that it is imperative for government companies to buy at least 3 per cent of their purchases from women entrepreneurs only. "Today, India is shining as a vibrant spot in the global economy. The whole world has set its sight on India," said Modi. 

  • 17:32 (IST)

    GST-registered MSMEs to get 2% rebate on incremental loan of up to Rs 1 crore, says PM Modi

    He said that GST portals will have links to such loans and there should be no problem for those who file taxes. The portals will automatically ask if loans are needed

    The prime minister said that it is now mandatory that all the companies with a turnover of more than Rs 500 crore will have to join TReDS platform, that is Trade Receivables e- Discounting System. So that MSMEs do not face trouble in cash flow.

  • 17:29 (IST)

    12 historic decisions will boost small and medium enterprises: Modi

    Modi said that rank within top 50 on ease of doing business is not far away. He announced the launch of 59-minute loan portal for sanction of up to Rs 1 cr for small and medium enterprises.

    "The government has decided to increase interest subvention on pre & post shipment credit from 3% to 5%," Modi added.

  • 17:24 (IST)

    Modi talks about India's jump in ease of doing business ranking 

  • 17:18 (IST)

    India has done what people couldn't imagine: Modi 

Prime Minister Narendra Modi on Friday launched an MSME support programme, which aims to enhance credit access to micro, small and medium businesses.

The move will give a boost to the micro, small and medium enterprises (MSME) sector and help generate employment.

Modi said this is a Diwali gift to MSME from the government. "MSME is the livelihood for many entrepreneurs. After agriculture, it is the major sector giving livelihood to many," he added.

Modi said that there is a need to take collective initiative and responsibility for the MSME sector.

The MSME 'Support & Outreach Program' was attended by finance minister Arun Jaitley and Minister of State for MSME Giriraj Singh. The Prime Minister's Office said that the progress of this programme, to be implemented in mission mode, will be monitored on a continuous basis by senior officials of Union and state governments. 

"The Central Ministers are likely to visit these Distts for further boosting MSME Sector in terms of asking entrepreneurs to take benefit of these facilities including access to credit and market," the finance ministry said on Thursday.

The MSME sector constitutes a vast network of over 63 million units and employs 111 million people, contributing around 30 per cent to the GDP. It accounts for about 45 per cent of manufacturing output and around 40 per cent to total exports.

A major obstacle for growth of MSMEs is their inability to access timely and adequate finance as most of them are in niche segments where credit appraisal is a major challenge.

As per the RBI's Mint Street Memo report, note ban imposed in November 2016 has led to further decline in the already falling credit to the MSME sector, while GST roll out has not made any significant positive impact on overall credit to the sector but has deeply dented their exports.

About 97 percent of MSMEs operate in the informal sector.

With inputs from PTI

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Updated Date: Nov 02, 2018 18:06:31 IST