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Tuesday, November 5, 2024

Incentive to Establish MSMES

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The promotion and development of enterprises is a State subject. However, the Central Government supplements the efforts of the State/UTs Government through various schemes, programs, and policy initiatives for all-around development of Micro, Small, and Medium Enterprises (MSMEs) in the country. Udyam Registration is a pre-requisite for availing the benefits of schemes/programs of the Ministry of MSME and for availing the benefits under Priority Sector Lending of RBI. Total Udyam Registration till December 3, 2021 (at 1.47 P.M.) is more than 60 Lakh.

The Government has taken a number of recent initiatives under the Aatma Nirbhar Bharat Abhiyan to support the MSME sector in the country. Some of them are:

  1. Rs. 20,000 crore Subordinate Debt for MSMEs.
  2. Rs.3 lakh crores Collateral free Automatic Loans for business, including MSMEs (The existing overall guarantee limit under ECLGS has been enhanced from Rs. 3 lakh crore to Rs. 4.5 lakh crore)..
  3. Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund
  4. New Revised criteria of classification of MSMEs.
  5. New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.
  6. No global tenders for procurement up to Rs. 200 crores.

An Online Portal “Champions” has been launched on 01.06.2020 by Prime Minister. This covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.

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