GST-registered MSMEs will be granted loans through a portal set up by the Small Industries Development Bank of India.
Micro, small and medium enterprises can avail loans up to Rs 1 crore in less than an hour, said Prime Minister Narendra Modi on Friday as he announced a host of incentives to give a boost to the MSME sector, calling them a "Diwali gift".
A 2 per cent subvention on loans, 25 per cent mandatory procurement by public sector units, special focus on pharma clusters, relaxation in compliances related to labour laws, companies law and environmental clearances are among the Centre's efforts to improve the business conditions for the sector.
GST-registered MSMEs will be granted loans through a portal set up by the Small Industries Development Bank of India. So far, Rs 23,852 crore have been cleared through this portal on a pilot project.
Factory inspections will get easier as it will be done through a computerised random allotment, said the PM. The inspectors will have to upload reports on a portal in 48 hours. "No inspector can now go anywhere. He will be asked why he went to a factory," he said at an event in the capital.
From now on, MSMEs will need single clearance for environmental issues and just one consent under laws related to air and water before setting up a factory. They have to file just one annual return on eight labour laws and 10 central rules against two earlier.
Similarly, an ordinance has been brought out to decriminalise minor corporate offences and settle them by levying penalty through an in-house mechanism. Fine for small firms and one-person companies has been reduced to half.
Modi said that the government will run an outreach programme for the next 100 days covering 100 districts throughout the country.
Modi also announced Rs 6,000 crore for creation of 20 hubs and 100 tool rooms for technology upgradation. Clusters for MSMEs in pharma sector will be created to boost production in the sector, he said, adding that 70 per cent of the cost for creating these clusters will be borne by the Centre.
Finance Minister Arun Jaitley said that the country has moved from ninth to sixth position in the list of the world's top economies after the Modi government took over four years ago. He said that India would become the world's fifth-largest economy in 2019 and among top three in the coming years.
Talking of India moving 23 places up on the World Bank's latest 'Ease of Doing Business' ranking, Modi said that many did not believe what his government achieved in four years, which no other nation has done, leaping from 142nd rank in 2014 to 77th position. Breaking into top 50 rank is not far away, he added. Reforms of processes will help MSMEs, Modi said.
In Goodie bag
- Environmental consents, factory inspections to get easier
- 1 annual common form for 8 labour laws
- Move to decriminalise minor corporate offences
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