Announcement of 12 key Initiatives for MSME Sector by Hon’ble Prime Minister

Circular No. ES/ 273/2018-19 November 5, 2018

To: Members of the Council

Sub: Announcement of 12 key Initiatives for MSME Sector by Hon’ble Prime Minister

Dear Member,

As you are aware, the Hon’ble Prime Minister of India, Shri Narendra Modi had launched the historic Support and Outreach Programme for MSMEs on 2^nd November, 2018 (Friday) at Vigyan Bhavan in New Delhi.

The following five key aspects facilitates the MSME sector;

Access to credit,
Access to market,
Technology upgradation,
Ease of doing business,
Social security for employees.

As part of this programme, the Prime Minister announced following 12 key initiatives which will help the growth, expansion and facilitation of MSMEs across the country.

Grant of loans upto Rs. 1 crore to MSMEs in-principle approval through this portal, in just 59 minutes without visiting a bank branch repeatedly.
2% interest subvention for all GST registered MSMEs, on fresh or incremental loans. An increase in interest rebate from 3% to 5% for exporters who receive loans in the pre-shipment and post-shipment period will provide competitiveness and a level-playing field to MSME exporters.
Companies with a turnover more than Rs. 500 crore, must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS), as it will enable entrepreneurs to access credit from banks, based on their upcoming receivables.
Mandatory procurement of 20 per cent from MSMEs by Public Sector Undertakings has now been increased to 25 per cent.
3% out of 25% procurement mandated from MSMEs must now be reserved for women entrepreneurs.
All public sector undertakings of the Union Government must now compulsorily be a part of Government e-Marketplace (GeM).
20 hubs of technology upgradation will be formed across the country, and 100 spokes in the form of tool rooms will be established.
Clusters will be formed of pharma MSMEs. 70% cost of establishing these clusters will be borne by the Union Government.
The Return under 8 labour laws and 10 Union regulations must now be filed only once a year.
The establishments to be visited by an Inspector will be decided through a computerised random allotment.
Laws related to air pollution and water pollution have been merged as a single consent, and the return will be accepted through self-certification.
The entrepreneur will no longer have to approach the Courts, but can correct them through simple procedures.