Tag: Atmanirbhar Bharat Package

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Business motivation

Ease of Doing Business and Ease of Living Among Government’s Priority for India’s Economic Growth, Says PM Narendra Modi

Business Tips | Representational Image Only (Photo Credits: Pexels)

New Delhi, February 20: Prime Minister Narendra Modi on Saturday stressed the need for a coordinated approach among the states and the Centre to achieve the ‘Atmanirbhar Bharat’ (self-reliant India) goal. Speaking at the sixth meeting of the Governing Council of NITI Aayog, the Prime Minister said that ‘ease of doing business and ease of living’ is also among the government’s priority to a strong country’s economy. He made a strong case for repealing archaic laws for ease of doing business in India and said the centre and states need to work closely to boost economic growth.

Praising the Union Budget 2021-22 which was presented by Finance Minister Nirmala Sitharaman earlier this month, the Prime Minister said that people have made up their minds about what they want. He stressed on ‘zero defect, zero effect’ mantra which he gave in August 2014 to Indian entrepreneurs for better products–a direct reference to the need to make things without causing environmental harm.

During his address, the Prime Minister said that ‘Atmanirbhar Bharat’ campaign is the way to build an India that produces not only for its needs but also for the world, and these productions will also stand the test of world superiority. To achieve the goal, the Prime Minister added there is need for a better coordination among Centre as well as states and increase export.

The Prime Minister stressed on the policy framework and cooperation between the Centre and states, saying “coastal states are a fine example”. “Exports from the blue economy have unlimited opportunities. Why shouldn’t our coastal states take extra initiatives for the same?” He added saying that India managed to build a good image internationally during the Covid-19 period because the central and state governments worked together for the betterment of people.

 

 

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MSME

MSME Sector in India Gets Major Boost As Banks Sanction Rs 2.05 Lakh Cr Loans to 81 Lakh MSMEs Under Credit Guarantee Scheme

New Delhi, December 12: With an aim to help the MSME sector which was impacted by disruptions caused due to the coronavirus pandemic, the Finance Ministry on Friday said banks have sanctioned loans worth Rs 2,05,563 crore to about 81 lakh accounts under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector. In a series of tweets, the Finance Ministry said that as many as 40 lakh MSME accounts have received Rs 1,58,626 crore till December 4. Another tweet informed that Rs 3 lakh cr Collateral-Free Guaranteed Loans – Budgetary provision of Rs 4,000 crore made for the Scheme in First Supplementary Demand for Grants for FY 2020-21.

While announcing the Aatmanirbhar Bharat Package 3.0, Finance Minister Nirmala Sitharaman had said that Rs 2.05 lakh crore sanctioned and Rs 1.52 lakh crore disbursed under ECLGS 1.0. “As part of the Atmanirbhar Bharat Abhiyan 3.0 (announced on November 12), ECLGS Scheme has been extended through ECLGS 2.0 for the 26 stress sectors and health care sector with credit outstanding of above Rs 50 crore and up to Rs 500 crore as on February 29, 2020,” a tweet said. Credit Guarantee Scheme: Banks Sanction Rs 1.86 Lakh Cr to 50 Lakh MSMEs Impacted by Slowdown Amid COVID-19 Pandemic.

The Finance Ministry said that under ECLGS 2.0, entities with outstanding credit above Rs 50 crore and not exceeding Rs 500 crore as on February 29, 2020, which were less than or equal to 30 days past due as on February 29, 2020 are eligible. The loans provided under ECLGS 2.0 will have a five-year tenor, with a 12-month moratorium on repayment of principal. Meanwhile, the entire Scheme (ECLGS 1.0 and ECLGS 2.0) valid till March 31, 2021, it said.

As part of the Aatmanirbhar Bharat Package, the government has announced to cover 2.5 crore farmers under the KCC scheme with a credit boost of Rs 2 lakh crore through a special saturation drive.

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Strategy

Atmanirbhar Bharat Is About Creating Globally Competitive Enterprises, Says PM Narendra Modi

Narendra Modi (Photo Credits: Facebook)

New Delhi, October 28: In a major boost to the government’s ‘Atmanirbhar Bharat’ initiative, Prime Minister Narendra Modi called upon exporters to create ‘globally competitive’ enterprises in India in the spirit of his flagship mission. In his message to the EEPC India, Modi said that the ‘Atmanirbhar Bharat’ is about creating globally competitive enterprises in India. The four-day virtual expo opened on Tuesday.

The Prime Minister made this announcement during the inauguration of the engineering exporters’ apex body, EEPC India’s first virtual exhibition, ‘India Subcontracting Expo 2020’ for overseas buyers. During his message, the Prime Minister conveyed that science and engineering have a major role in realising the objectives of the ‘Aatmanirbhar Bharat’ programme.

The Prime Minister said that India is creating the right ecosystems for local manufacturing and supply chain. Modi said that technology has become an enabler in the wake of challenges posed by the COVID-19 pandemic.” Digital tools have guided and helped in transforming such challenges into opportunities. The world requires skilled hands and we in India have the talent to cater to these global needs,” he said.

According to EEPC India, as many as 100 engineering exporters would be showcasing their products and technologies to major buyers from Europe, including the UK through a virtual exhibition, seeking to bag manufacturing contracts, giving a boost to the ‘Make In India’ and ‘Aatmanirbhar Bharat’ programmes.

According to a report by IANS, the virtual exposition platform sports several features like 24×7 access for buyers and sellers, virtual B2Bs, chat rooms, among other. Besides, the CXO Forum would be held with a theme-India-EU advanced opportunities for business cooperation in COVID-19 world.

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MSME

MSME Sector to Grow and Contribute to Job Creation With the Help of Structural Reforms Taken by Modi Govt, Says Finance Ministry Report

Business in India | Representational Image Only (Photo Credits: Pexels)

New Delhi, October 6: The Finance Ministry on Monday said that the major structural reforms launched by the Modi government in agriculture markets, labour laws provide unparalleled opportunity for the MSME sector to grow and prosper. These reforms will in turn contribute to job creation in the primary and secondary sectors. A report by the Finance Ministry stated that the historic labour reforms will benefit MSMEs to increase employment, enhance labour productivity and thereby wages in MSMEs.

According to a report by PTI, the Finance Ministry said that important structural reforms that have been taken by the government to ease the risks posed by COVID-19 pandemic will strengthen India’s economic fundamentals and ensure long-term sustained growth. “The enabling policy environment and initiatives taken by all stakeholders to seize the available opportunities will actualise the growth potential of the Indian economy,” the monthly economic report prepared by the Economic Affairs Department of the Finance Ministry said.

The report further said that the sustained spread of the virus poses a downside risk to short-term and medium-term growth rate, adding that the government has strategically undertaken various important structural reforms, encompassing various sectors, to combat these risks. Meanwhile, the implementation of ‘Atmanirbhar Bharat’ package and unlocking of the economy have ensured that economic recovery in India has gained momentum.

The PTI report adds that as on September 25, India’s foreign exchange reserves stood at USD 542.02 billion, equivalent to more than 13 months of imports. India”s probable growth path is visible in this assessment.

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Finance Strategy

MSME Ministry Rolls Out New Guidelines for Pottery, Beekeeping Activities to Rejuvenate Grass Root Economy in India

Pottery (Photo Credits: Pexels)

The Ministry of Micro Small and Medium Enterprises (MSME) on Thursday announced new guidelines for two more schemes which include ‘Pottery Activity’ and ‘Beekeeping Activity’. The Ministry said that for pottery activity, the government will provide assistance of pottery wheel, clay blunger, and granulator. A total of 6,075 traditional and others (non-traditional) pottery artisans/rural unemployed youth or migrant labourers will be benefited from this scheme. “It will also provide wheel pottery training for traditional pottery artisans and Press Pottery training for pottery as well as non-pottery artisans in Self Help Groups,” it added.

The Ministry had few days back announced expanding and doubling the support to Artisans who might be interested in making Agarbatti. These new initiatives of the Ministry with beneficiary oriented Self-Employment schemes, are aimed at rejuvenating the grass root economy contributing to Atmanirbhar Bharat Abhiyan.

  1. For ‘Pottery Activity’ Government will provide assistance of pottery wheel, Clay Blunger, Granulator etc.
  2. It will also provide Wheel Pottery Training for traditional pottery artisans and Press Pottery training for pottery as well as non-pottery artisans in Self Help Groups.
  3. There is also provision to provide Jigger-Jolly training programme for pottery as well as non-pottery artisan in Self Help Groups.

In case of the Pottery improvements in the Scheme are:

  • Skill-development training on focused products like garden pots, cooking-wares, khullad, water bottles, decorator products, mural, etc. to SHGs of pottery-artisans has been introduced
  • Focus of the new Scheme is to enhance the production, technical know-how of pottery artisans and efficiency of potter energy kilns to reduce cost of production
  • Efforts will be made to develop necessary market linkages by tying up with exports and large buying houses

For ‘Beekeeping Activity’:

  1. In case of the Scheme for ‘Beekeeping Activity’, the government will provide assistance of Bee boxes, Tool kits etc.
  2. Under this scheme, Bee boxes, with Bee colonies, will also be distributed to Migrant workers in Prime Minister Gareeb Kalyan Rozgar Abhiyaan (PMGKRA) districts.
  3. A 5 days’ beekeeping training will also be provided to the beneficiaries through various Training Centres /State Beekeeping Extension Centres/ Master Trainers as per prescribed syllabus.

A total of 6,075 traditional and others (non-traditional) pottery artisans/Rural Un-employed youth/Migrant Labourers will get benefitted from this Scheme. As Financial support for the year 2020-21, an amount of Rs.19.50 crore will be expended to support 6,075 artisans with a Centre of Excellence, with MGIRI, Wardha, CGCRI, Khurja, VNIT, Nagpur and suitable IIT/NID/ NIFT etc, for product development, advance skill programme, and quality standardization of products.

Additional amount of Rs 50.00 crore has been provisioned for setting up of clusters in Terracotta, Red clay pottery, with new innovative value added products to build pottery to crockery/ tile making capabilities, under ‘ SFURTI’ scheme of the Ministry.

To begin with, Scheme proposes to cover, during 2020-21, a total of 2,050 Beekeepers, Entrepreneurs, Farmers, Unemployed Youth, Adivasis will get benefitted from these projects/programme.

For this purpose a financial support of Rs 13 crore during 2020-21 has been provisioned to support 2,050 artisans ( 1250 people from Self Help Groups and 800 Migrant labourers), with a Centre of Excellence with CSIR/ IIT Or other Top class Institute to develop honey based new value added products. Additional amount of Rs. 50.00 crore has also been kept for developing Beekeeping honey clusters under the ‘ SFURTI scheme of the Ministry.

It may be recalled that the initiative to rejuvenate Agarbatti making at grass-root level few days back, is a step which also directed towards make India Aatmnirbhar in supply of this household consumption item. The interventions include the support to the artisans through training, raw material, innovation in the fragrance & packaging, use of new / alternate raw materials, marketing and financial support.

The program will immediately benefit about 1500 artisans, in providing sustainable employment with increased earnings. Artisans living in rural areas, Self Help Groups (SHGs) and ‘Migrant workers’ will particularly benefit from the program. In addition to enhancing employment opportunities locally, the programme will also help in capturing the export market in such products.

Categories
Finance

MSMEs in Maharashtra: State Government Mulling Relief Package For Lockdown-Hit Sector, Says Industries Minister Subhash Desai

MSME (Photo Credits:
Emergency Credit Facility Under ECLG for small businesses hiked from Rs 25 crore to Rs 50 crore by NCGTC. | Representational Image.

In what is believed to be a move to revive the Micro Small and Medium Enterprises (MSME) sector in Maharashtra, the state government is planning to provide some relief to the sector which has been severely impacted due to coronavirus lockdown. Maharashtra industries minister Subhash Desai was quoted in a TOI report saying that the MSME sector has asked for relief which includes interest subvention, relief in electricity duty and support for wages to be dispensed during the lockdown.

Desai said that the state government will consider providing a relief package to MSME sector after this issue comes up in the cabinet. The state has 20 lakh units registered as MSMEs, of which, six lakh are in the manufacturing sector, while the others are in service sector.

Indian Merchants Chamber president Rajiv Podar said that the biggest challenge for MSMEs is a fund crunch and a large chunk is blocked by PSUs. “In addition, 65% of MSMEs are below the investable grade and are therefore, not able to access the Centre’s relief package,” he said. Podar said the RBI’s interest rate transmission has not trickled to MSMEs adding that the government will need to stimulate demand in the economy.

Meanwhile, Anant Singhania, director of J K Organisation and CEO of J K Enterprises was quoted in the report saying that the Centre’s Atmanirbhar package catered more to MSMEs, who were already borrowers, to able to borrow more. He said the rest got excluded from the package and are in need of help. “The industrial sector on the whole, “faces a funding challenge since cash flow has come to a grinding halt,” said Singhania, adding that the industry is functioning at a sub-optimal level, facing a lack of demand and lack of workers.

Further, Singhania said that the governments had to give some assurance to the large number of migrants who left the cities so that they would return. “There also needs to be some monetary infusion in the market from the government and public sentiment needs to change on the ground,” he said.

Categories
Finance

MSME Credit Guarantee Scheme: Banks Disburse More Than Rs 1 Lakh Crore Under ECLGS as Part of Atmanirbhar Bharat Package

रुपया
Money

The banks have disbursed more than Rs 1 lakh crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, the finance ministry said. The loans have been disbursed fall under Atmanirbhar Bharat Package. The latest numbers on ECLGS, as released by the finance ministry has disbursements by all 12 public sector banks (PSBs), 24 private sector banks and 31 non-banking financial companies (NBFCs). The total amount sanctioned under the scheme by banks now stands at Rs 1,50,759.45 crore, of which Rs 1,02,245.77 crore has already been disbursed as of August 18. “Under the 100 per cent ECLGS backed by a Government of India guarantee, banks from public and private sectors have sanctioned loans worth over ₹1.5 lakh crore as of August 18, 2020, of which more than ₹1 lakh crore has already been disbursed,” the Finance Ministry said in a statement.

The disbursement will largely help the MSME sector that has been impacted by the economic slowdown due to COVID-19. The ECLGS was announced by the Government as a part of Atmanirbhar Bharat Package, to mitigate the distress caused by lockdown due to coronavirus lockdown by providing credit to different sectors, especially MSMEs.

Meanwhile, the sanctioned amount too have surged past Rs 1.50 lakh crore at the end of August 18 under the 100 per cent ECLGS for micro, small and medium enterprises. The scheme is the biggest fiscal component of the Rs 20-lakh crore Atmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May.

Key Highlights:

1. Business units of Maharashtra have got the highest cumulative sanction of Rs 7,756 crore from banks, while disbursement stood at Rs 6,007 crore at the end of August 18.
2. Tamil Nadu is the second state which has received a sanction of Rs 7,740 crore, and disbursement of Rs 5,693 crore.
3. The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till the amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.
4. The top lenders under the scheme are State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Bank of India, Union Bank of India and HDFC Bank.
5. The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till the amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.

The Finance Ministry said that under the ECLGS, Public Sector Banks (PSBs) have sanctioned loans of Rs 76,044.44 crore, out of which Rs 56,483.41 crore has already been disbursed whereas Private Sector Banks have sanctioned loans of Rs 74,715.02 crore out of which Rs 45,762.36 crore has already been disbursed. On May 20, the Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for MSME sector.

All MSME borrower accounts with an outstanding credit of up to Rs 50 crore as on February 29, which were less than or equal to 60 days past due as on that date, i.e., regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 250 crore, are eligible for GECL funding under the scheme.

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Finance Startup Strategy

Narendra Modi Govt Operationlises Rs 20,000 Crore Stressed Fund to Benefit Around 2 Lakh MSMEs, Issues Guidelines for CGSSD Under Atmanirbhar Bharat Package

MSMEs in India | Representational Image Only (Photo Credits: Pexels)

New Delhi, August 19: Prime Minister Narendra Modi-led Union Government on Wednesday operationalised Rs 20,000 crore stressed fund aiming to benefit around 2 lakh MSMEs. Apart from this, the Union government has also issued guidelines for Credit Guarantee Scheme for Subordinate Debt (CGSSD) which was announced under the Atmanirbhar Bharat package.

According to the plan of the government, the subordinate debt that will be provided by the banks would be fully guaranteed through the Credit Guarantee Trust for Medium and Small Entrepreneurs (CGTMSE) and be counted as quasi-equity. In the subordinate debt, support of Rs 4,000 crore would be given by the government to CGTMSE. Through the CGSSD, a guarantee coverage will be provided for MSME restructuring. Under the scheme, 90 per cent guarantee will be covered by the trust, while 10 per cent will be covered by the concerned promoter.

Here’s the MSME tweet:

Who are eligible for CGSSD?

1) MSMEs whose accounts have been standard as on March 31, 2018, with regular operations — standard or NPA — through FY 2019.

2) Stressed MSME units which were SMA-2 and NPA as of April 30, 2020.

Requirements for availing sub-debt under CGSSD:

1) After fulfilling the eligibility criteria, all the promoters of the MSME units will be given credit equal to 15 per cent of stake in the company or Rs 75 lakh.

2) A separate loan account needs to be opened. All the promoters will have to infuse sub-debt or loan amount as promoter contribution.

3) As per RBI norms, all MSME loans would be linked to an external benchmark.

4) The maximum tenor for repayment will be 10 years, with a 7-year moratorium on principal payment.

5) Following the completion of the moratorium, principal amount to be repaid within 3 years. However, no additional charge will be levied in case of pre-payment of the loan.