Prime Minister Narendra Modi on Friday launched a 59-minute loan programme and other moves to help small businesses as part of the centre’s “support and outreach initiative” for micro, small and medium enterprises (MSMEs) in New Delhi.
PM Modi termed it as a ‘Diwali gift’ and deemed the policies would enhance credit access to the micro, small and medium businesses and will give a boost to the employment in the sectors.
Here are the key take- aways from PM Modi’s speech-
1. PM Modi announced the launch of 59-minute loan portal for sanction of up to Rs 1 crore for small and medium enterprises. “I dedicate 59-minute loan approval portal to you and it has started benefiting the MSMEs businessmen already”, he said.
2. GST-registered MSMEs will get 2% rebate on an incremental loan of up to Rs 1 crore.
3. The government has decided to increase interest Subvention on pre and post shipment credit for exports by MSMEs from 3% to 5%.
4. 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 doesn’t face trouble in cash flow.
5. PM Modi said that mandatory sourcing by PSUs from MSMEs increased to 25% from the previous limit of 20%.
6. PM Modi said that government companies to buy at least 3 per cent of their purchases from women entrepreneurs.
7. It is now mandatory for the companies to take Government e-Marketplace (GeM) membership now. The companies will now register its all MSME vendors on this platform, which will also benefit the MSME.
8. PM Modi announced Rs 6000 crore package for the technological upgradation in connection with MSME. 20, 000 hubs and 100 tool rooms will be developed around the country for this.
9. PM Modi also announced MSME sector’s ease of doing business to pharmaceuticals companies.
10. He announced Environment clearance and ease of self-certification.
11. MSMEs will have to file just one annual return on eight labour laws and 10 central rules.
12. PM Modi announced that the government has made a big change to Companies Act and provided relief to MSMEs from legal complications.
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