Category: MSME

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MSME

SIDBI Collaborates with NSE to Develop Debt Capital Platform for Firms in MSME Sector

NSE and SIDBI | Representational Image (Photo Credits: Wikimedia Commons)
NSE and SIDBI | Representational Image (Photo Credits: Wikimedia Commons)

The micro, small and medium enterprises are blooming in the country with various government and non-government agencies undertaking several schemes and programmes to increase the investment flow for the firms in the sector. Massive inflow of funds has also helped the sector to stay afloat in even as major business industries suffered and incurred losses owing to the economic slowdown induced by the lockdown imposed to curtail the spread the coronavirus. The MSME sector frayed pretty well in the COVID-19 era as well.

There are various initiatives by public and private sector banks offer equity-based finance to the micro, small and medium enterprises. Even the non-banking financial institutions have extended schemes to support the firms in the MSME sector. However, the need to develop to additional debt and equity instruments to create more financial solvency and soundness in the sector. It is important for the overall development of the sector- capital intensive and labour incentive both. Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses.

Recently, the National Stock Exchange (NSE) entered into an agreement with the Small Industries Development Bank of India (SIDBI) to explore the feasibility of a debt capital platform for the micro, small and medium enterprises. “Keeping in view the large and diversified MSME sector in the country, there is a continuous need for various institutions to co-ordinate and co-operate with each other for the benefit of MSME sector,” V Satya Venkata Rao, Deputy Managing Director of the Small Industries Development Bank of India told the reporters in this contest. MSMEs in Haryana Get Major Boost! Products Manufactured by MSMEs in the State To Get Global Market, Talented Artisans To Benefit.

Taking about the collaboration he said that both the institutions (NSE and SIDBI) run several programmes for the enterprises in the MSME sector, adding that the co-operation will help increase the impact and reach of these programmes. Rao also said that an expert committee on MSMEs, headed by U K Sinha, the former Chairman of Securities and Exchange Board of India (SEBI) has made several recommendations for the micro, small and medium enterprises, including the need to develop additional instruments for debt and equity, which will help crystallise new sources of funding for MSMEs.

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MSME Startup

Piyush Goyal Tells BIS To Cut Quality Testing Charges for MSMEs, Startups and Women Entrepreneurs in India To Encourage Ease of Doing Business

Women Entrepreneurship (Photo Credits: Pexels)

In a bid to encourage MSMEs, startups, and women entrepreneurs in India, the charges for testing quality of products should be reduced, Food and Consumer Affairs Minister Piyush Goyal said. The Minister said that once the charges are minimised, it will help them to get their products certified and meet standard norms. Goyal said this at the 3rd Governing Council meeting of the Bureau of Indian Standards (BIS). During his address, Goyal said that there is a need to change the approach of the country towards standardisation and instructed BIS to create a customer charter to usher in highest transparency in its certification process and inspections.

The Minister added saying that the fee for testing of standards should be reduced drastically ‘throughout’ for the MSMEs and in the initial years for the startups and for women entrepreneurs. Goyal said that this will encourage them to get their products certified and also encourage the ease of doing business. During his address, Goyal said that it is a challenge for BIS to fast track the standard setting processes, especially for these programmes of national priority.

BIS must therefore ensure that its technical Committees develop the required new standards in the quickest possible time for products where presently none exist, or review and revise existing standards whenever required, the minister said. Goyal reviewed the process of making Indian Standards and their implementation with officials from BIS, different ministries and regulators, among others.

Goyal directed the BIS to go in for massive expansion and modernisation of testing labs so that entrepreneurs don’t have to travel far to get the testing and certification of standards. Talking about PM Narendra Modi’s mantras for economic development, Goyal said, “Prime Minister Shri Narendra Modi has given the three mantra for faster economic development i.e. Speed, Skill and Scale. Now it is time to add fourth dimension of ”Standard” in to this”.

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MSME

MSMEs Should Avail Concessional Finance and Install Rooftop Solar System to Increase Business Efficiency, Says Union Minister Nitin Gadkari

Nitin Gadkari (Photo Credits: Facebook)

The central government and its various agencies are undertaking various steps to promote and develop the Micro, Small and Medium Enterprises in the country. Several schemes and programmes have been initiated under different developments plans to enhance the MSME sector, thereby helping firm establish themselves, sustain and grow. The MSME Ministry spearheaded by Nitin Gadkari has also issued certain guidelines and road map for the successful and progressive running of the businesses in the Micro, Small and Medium Enterprises. In a recent event also, Gadkari provided certain advisory for various firms in the sector. Champions: MSME Ministry’s Grievances Redressal Portal Resolves 26,693 Complaints in 9 Months.

The Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways  Nitin Gadkari have urged the business owners to install rooftop solar for enhancing the efficiency of the firm and bring down the cost of operations substantially. He said that the roof top solar system  offers an excellent value proposition to Micro, Small and Medium Enterprises  by significantly bringing down cost of electricity consumption, which on an average, is up to one-fifth of their operations cost. He also asked the people in the sector to avail concessional debt finance to do the same.

“I believe there is a strong business case for MSMEs to install rooftop solar and achieve significant savings to achieve the cost-competitiveness. I am confident that MSMEs will stand together in generating and consuming solar power using their rooftops,” said Union Minister Nitin Gadkari while addressing an event virtually. He added that a large amount (average Rs 8 and higher per unit) is being paid by the firms in the MSME sector for power consumption, which contributes to up to one-fifth of the overall production costs. Major Boost to MSME Sector: Govt Trying to Make 5,000 MSME Clusters Under SFURTI Initiate, Says Union Minister Nitin Gadkari.

“To assist MSMEs in implementing rooftop solar projects, the ministry is working with the World Bank on a credit guarantee program to make financing accessible to unrated MSMEs. Considering the rates of solar power from large utility power plants have come down to a record INR 1.99/kWh, MSMEs must leverage this opportunity to bring down their energy expenses,” said Nitin Gadkari.

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MSME

MSME Sector ‘Growth Engine’ of Indian Economy, Contributes around 30% to GDP, Says RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das (Photo Credits: Wikimedia Commons)

The Micro, Small and Medium Enterprises have been gaining momentum in past few years. Government at various levels, the MSME Ministry, Public Sector Banks, and NBFCs among other state agencies have been implementing several initiatives for the development of the sector and encourage more and more people to establish their businesses in the MSME sector. The sector did suffer owing to the coronavirus outbreak and the subsequent lockdown, which lead to curb on all the economic activities across the country. However, the various micro, small and medium enterprises are now on the path of revival and will soon bloom to its full potential soon again. Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector.

Addressing the 185th Foundation Day Celebration of Bombay Chamber of Commerce and Industry, Governor of the Reserve Bank of India Shaktikanta Das said that the Micro, Small and Medium Enterprises (MSME) sector has emerged as the growth engine of the economy and is showing signs of revival after the COVID-led degrowth in early part of the current financial year (2020-21). Das added that the sector has been rendered vulnerable by the pandemic necessitating concerted effected effects to combat the stress and focus on the revival of the sector.

He informed that MSME sector -a vast network of around 6.33 Crore enterprises- is contributing about 30 per cent of the nominal Gross Domestic Product (GDP) of the country and 48 per cent to the total exports of India. “As digital capabilities improve and connectivity becomes omnipresent technological innovation and technology-driven revolution are poised to quickly and radically change India’s economy,”said Das. Adding that the Reserve Bank of India has also made necessary intervention to support economy’s critical sector- referring to the micro, small and medium enterprises. Major Boost to MSME Sector: Govt Trying to Make 5,000 MSME Clusters Under SFURTI Initiate, Says Union Minister Nitin Gadkari.

Meanwhile, the central government on its end has also been contributing towards the development of the MSME sector. In the Union Budget for the upcoming financial year 2021-22, Finance Minister Nirmala Sitharaman has proposed an allocation of a fund of over Rs 15,000 Crore to the Micro, Small and Medium Enterprises, which stands at double the amount apportioned to the sector last fiscal. A reduction in the custom duties has also been proposed, with duties on semis, flat, and long products of non-alloy, alloy, and stainless steels has been reduced to 7.5 per cent uniformly.

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MSME

Major Boost to MSME Sector: Govt Trying to Make 5,000 MSME Clusters Under SFURTI Initiate, Says Union Minister Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

In an attempt to boost the Micro, Small and Medium Enterprises, Union MSME Minister Nitin Gadkari has inaugurated 50 artisan-based Scheme of Fund for Regeneration of Traditional Industries (SFURTI) clusters across over 18 States. At its launch the MSME Minister also said the central government is making efforts to establish at least five thousand MSME clusters under the SFURTI scheme. For the development of these clusters, the MSME Ministry spearheaded by Nitin Gadkari has funded Rs 85 Crore. Under the scheme, various small and medium scale traditional industries and artisans into clusters with the aim to improve their earnings and make them more competitive. MSME Credit Moves Towards Pre-Pandemic Levels, Witnesses a Growth of 5.7%: Report.

Gadkari also informed that the ministry is trying to fast track the approval process for the clusters, adding that these clusters would be helpful to farmers and craftspeople be independent. The clusters under the SFURTI scheme offers various programmes for the development of MSMEs including skill development, capacity building, creation of facilities such as common facility centres, rehousing facilities and marketing and e-commerce assistance to local industries. Indian SMEs Plan To Expand Businesses As Economy Revives, Restoration of Business Activities Likely To Gain Momentum Post COVID-19 Era: Survey.

Through these clusters more than 42 thousand artisans have been ensured continuous support and assistance in the traditional segments of muslin, khadi, coir, handicraft, handlooms, wood craft, leather, pottery, carpet weaving, bamboo, agro processing, tea and others. The SFURTI clusters have been inaugurated in several states including Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Nagaland, Odisha, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.

So far as many as 371 such clusters have been funded by the government under the Scheme of Fund for Regeneration of Traditional Industries initiative. A total of Rs 888 Crore have been spend for its development by the centre. Nitin Gadkari also said that the government is looking to increase the share of MSME sector in the country’s GDP to 40 per cent from the current 30 per cent and share of exports to about 60 per cent from 48 per cent.

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MSME

MSME Credit Moves Towards Pre-Pandemic Levels, Witnesses a Growth of 5.7%: Report

MSME Credit Grows at 5.7% | Representational Image (Photo Credits: Pixabay)
MSME Credit Grows at 5.7% | Representational Image (Photo Credits: Pixabay)

The latest MSME Pulse Report by TansUnion CIBIL shows that the credit in the Micro, Small and Medium Enterprises have witnessed a growth owing to the support of central government’s Emergency Credit Line Guarantee Scheme (ECLGS). As per the recent report, the MSME credit grew by 5.7 per cent YoY and around 3.5 QoQ in September 2020. The report also indicated that the Public Sector Banks are progressively taking the lead in providing quick loans and credits to the MSME sector, thereby ensuring an increased market share for themselves. Not only the PSBs, even the private sector banks are moving back to the pre-COVID-19 levels, with 22 per cent YoY growth in inquiries in December 2020. For the public sector banks, the same was recorded at 9 per cent. Indian SMEs Plan To Expand Businesses As Economy Revives, Restoration of Business Activities Likely To Gain Momentum Post COVID-19 Era: Survey.

Meanwhile, the inquiry trends in Commercial credit touched pre-COVID levels of 13 per cent in December 2020 after experiencing a sharp plunge in April 2020 owning to the coronavirus outbreak and the subsequent economic lockdown. The total on-balance sheet commercial lending exposure in India stood at Rs 71.25 Lakh Crore with a growth rate of 2.1 per cent YoY as in September 2020. As per report, for MSME sector it stood at Rs 19.09 Lakh Crore with a yearly growth rate of 5.7 per cent in all the sub segments of micro, small and medium enterprises. The Centre released the 17tth Installment of GST Compensation: What it means for States & UTs?

As per the MSME Pulse Report, the high risk MSME borrowers with a CIBIL rank between 7 to 10 secured the maximum benefits from the rise in approval rates. Meanwhile, the NPA (Non-Performing Asset) ratio saw a decline to 12.1 per cent in September 2020. It is being reasoned as a consequence of the Supreme Court order of not declaring NPAs till further notice. Moreover, as per a finance ministry release, total loans sanctioned under ECLGS stand at Rs 2.1 Lakh Crore of which Rs 1.65 Lkah Crore has already been disbursed.

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MSME

59 Minute Loan Approval Scheme: Loans Worth Rs 72,502 Crore Sanctioned to MSMEs Under Central Government’s Initiative

59-Minute Loan Approval Scheme| Representational Image (Photo Credits: Pixabay)
59-Minute Loan Approval Scheme| Representational Image (Photo Credits: Pixabay)

Government and its various agencies have undertaken several programmes and initiatives to promote the Medium, Small and Micro Enterprises and boost the sector. One such step is the 59-Minute Loan Approval Scheme for the MSME sector by the Public Sector Banks (PSBs). As per the recent data issued by the Ministry of Micro, Small and Medium Enterprises over 2 lakh loans were approved by the public sector banks till February 1, 2021 under this scheme. 2,23,501 loans worth Rs 72,502 Crore have been sanctioned by various public sector banks since the launch of the scheme in November 2018. From the total approved amount, around Rs 59,548 Crore have also been disbursed to the MSMEs as well. SMBs in India To Benefit As Google Announces Rs 109 Crore for Small and Micro Enterprises in the Country.

The  59-Minute loan approval scheme primarily focuses on individuals and the MSMEs with the aim to ensure easy credit to both of them. It undertakes the automation and the digitisation of the the various steps involved with the loan sanction activity to speed up the entire process and the credit gets approved by the public sector bank in less than 59 minutes. Terms and conditions are flexible and the borrower has the option to choose from various public sector banks. It provides various types of loans including working capital loan, mudra loan, term loan among others are offered to MSMEs under this scheme.

Business loan with the principal amount ranging between from Rs 1 Lakh to Rs 5 Crore are offered under the scheme. The borrower may or may not be asked to provide for collateral depending upon the loan amount. A minimum interest rate starting from 8.5 per cent is charged on the principal amount. Mudra loan are currently being provided for Rs 10,000 to Rs 10 Lakh. It is integrated with the government’s Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to check borrower’s eligibility. Startups and MSMEs in India Get Major Boost As Indian Bank Signs MoU With SID of IISc for Extending Exclusive Credit Facility to Businesses.

In order to avail the loans under this scheme, an MSME is required to provide its GST Identification Number, Income Tax Returns, six-month bank statements, and owner’s details including personal, educational information and the ownership details of the enterprise. If an MSME is able to furnish all the required documents, it can easily apply for credit through the 59 Minute Loan Approval Scheme.

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MSME

Tamil Nadu Unveils New Industrial, MSME Policies To Boost Industrial Growth and Create Employment in the State; All You Need To Know About the New Policies

Chennai February 17: With an aim to boost industrial growth by attracting more investments, the state government of Tamil Nadu launched new industrial and MSME policies. The new policies are aimed at providing further impetus to the growth of industries in the state by attracting more investments and also offering sops for development in the industrially backward districts. Tamil Nadu  Chief Minister K Palaniswami launched new industrial and MSME policies on Tuesday. Under the new Industrial Policy 2021, the Tamil Nadu government targets to attract Rs ten lakh crore investments in four years and create employment opportunities for 20 lakh people by 2025 in the state.

All you need to know about the new MSME policies in Tamil Nadu:

  1. The MSME (Micro, Small & Medium Enterprises) Policy targets new investments worth Rs 2 lakh crore and job opportunities for 20 lakh people by 2025.
  2. The Chief Minister said that the MSMEs capital subsidy will be increased to Rs 1.5 crore from the present Rs 50 lakh, adding that the state has attracted a total investment of Rs 6.85 lakh crore in 10-year period.
  3. Apart from achieving an annual growth rate of 15 percent in the manufacturing sector during the policy period, the policy has set a target to increase the contribution of the manufacturing sector to 30 percent of Gross State Value Added (GSVA) by 2030.
  4. The scope of projects extends to industrial units, sunrise sectors, R & D projects, industrial park developers, warehousing and logistics, and FDI investments (relocation projects).
  5. Among the numerous benefits, the policy encourages investors to choose their structured incentive package model providing higher flexibility Apart from encouraging balanced regional industrial development, it encourages higher participation of women, differently-abled, and transgenders in the workforce, according to the policy document.
  6. Speaking on the occasion, the Chief Minister said the Industrial Policy would further reinforce Tamil Nadu as an ideal global investment destination while the MSME policy would give a further fillip to entrepreneurs in the next five years.

Adding further, Palaniswamai said that several concessions including land at 50 percent discounted price, will be provided to the entrepreneurs starting ventures in the 22 industrially backward districts, including the southern districts, Dharmapuri, Perambalur and Nagapattinam.

Meanwhile, the chief minister laid foundation stones for six industrial estates of TANSIDCO in various districts that would help generate employment to 13,300 people, besides SIPCOTs four new industrial parks on an extent of 3,977 acres at Manapparai, Manallur, Oragadam, and Dharmapuri.

As many as eight completed projects were inaugurated eight with an investment of Rs 3,377 crore and employment potential for 7,139 people, an official release said. Totally 46 projects for an investment of Rs 33,465 crore that would ensure jobs to 2,19,714 people were launched.

Also, MoUs for 28 projects entailing an investment of Rs 28,053 crore were signed, it said. These projects, including a Rs 4,684 crore project to manufacture mechanical enclosures for mobile phones by Tata Electronics project in Krishnagiri, announced earlier will create employment for 68,775 people, the release said.

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MSME

Champions: MSME Ministry’s Grievances Redressal Portal Resolves 26,693 Complaints in 9 Months

MSME Ministry (Photo Credits: Wikimedia Commons)
MSME Ministry (Photo Credits: Wikimedia Commons)

Champions, Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength, the online portal started by the MSME Ministry to resolve and redress grievances pertaining to the Micro, Small and Medium Enterprises has been able to resolve over 26,000 complaints in a span of nine months. Through the online portal 26,693 issues were resolved uptill January 31, 2021, MSME Minister Nitin Gadkari recently said in the Parliament session. The redressal forum was launched in May last year. Its was undertaken to function as a a grievance registration and management system for MSME issues pertaining to finance, raw materials, labour, regulatory permissions, among others especially after the COVID-19 outbreak and the subsequent lockdown.

The web portal allows various micro, small and medium enterprises, its employees, associates and other stakeholders to register their complaints, suggestions or seek information around the support provided to MSMEs. Grievances that are registered by MSMEs either on the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) or any other portal of the MSME Ministry automatically gets taken up by the portal at- champions.gov.in. MSMEs in Haryana Get Major Boost! Products Manufactured by MSMEs in the State To Get Global Market, Talented Artisans To Benefit.

The grievances registered on this portal are then diverted to relevant government office, agency depending upon the nature of the complaint and are attended within three days. The matter “should not remain inconclusive after seven days” the MSME Ministry’s Secretary AK Sharma had said during the launch of Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength in May 2020. For unresolved complaints, the “top leadership of the MSME Ministry” will “pro-actively take up,” he had added. Credit Guarantee Trust for MSEs: Over 8 Lakh Entrepreneurs Get Credit Guarantee Under Scheme Run by MSME Ministry and SIDBI.

Enhancing the usage of portal, the MSME Ministry had also integrated its ideas.msme.gov.in portal to the redressal portal. It was done to share ideas and innovation for public reviews for vetting before sharing them on the Champions portal. Along with it, the ministry had set-up a Champion Control Rooms at MSME Development Institutes across India to handhold MSMEs in accessing support available through the portal.

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MSME

Credit Guarantee Trust for MSEs: Over 8 Lakh Entrepreneurs Get Credit Guarantee Under Scheme Run by MSME Ministry and SIDBI

MSME Ministry (Photo Credits: Wikimedia Commons)
MSME Ministry (Photo Credits: Wikimedia Commons)

The central government has launched several schemes to promote women entrepreneurship in the country as well as boost the Micro, Small and Medium Enterprises. One such schemes is the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). It has operated by the MSME Ministry in collabroation with the Small Industries Development Bank of India (SIDBI). Under this scheme, the agencies offer credit guarantee to financial institutions to provide collateral-free loans to MSEs. As per the recent government data, under this scheme guarantee of Rs 45,215.35 crore in 8,38,947 loan accounts have been approved in fiscal year 2020. 4,35,520 accounts were extended guarantee under the scheme in the previous financial year. Union Budget 2021: Here Is What the First Paperless Budget Has In Store for the MSME Sector.

As many as 67,171 loan accounts of female entrepreneurs totaling to Rs 3,366.63 Crore have been approved under the scheme in the current financial year. Women entrepreneurs in Tamil Nadu got the maximum approval of Rs 394.50 crore on 8,593 accounts. It was followed by Uttar Pradesh where 6,289 accounts were approved for Rs 334.59 crore). Madhya Pradesh with 5,927 accounts approvals for Rs 215.42 crore and , Andhra Pradesh with 5,208 approvals for Rs 143.16 crore stood third and forth respectively. Meanwhile, 4,776 accounts were provided guarantee for Rs 295.22 crore in Karnataka . MSMEs in India: Govt Aims To Raise MSME Sector’s Share in GDP to 40% From the Current 30% To Benefit Rural Poor, Says Nitin Gadkari.

Continuing its efforts to develop and promote the MSMEs in India, the Union Budget 2021 also provided a share fair of public expenditure to the sector. In the budget for the upcoming financial year, Finance Minister Nirmala Sitharaman has allocated a fund of over Rs 15,000 Crore to the Micro, Small and Medium Enterprises, which stands at double the amount apportioned to the sector last fiscal. “We have taken a number of steps to support the MSME sector in this budget. I have provided Rs 15,700 crore more than double the previous year,” said the Finance Minister