The center includes retail and wholesale businesses in the MSME category
Micro, Small and Medium Enterprises Minister Narayan Rane, in a written response to Lok Sabha on Thursday, said the Center has included retail and wholesale under the MSME category from July 2, 2021. He added that the government had notified the composite criteria for classifying MSMEs based on investment in plant and machinery or equipment and the company’s turnover.
“With the introduction of a new classification of MSMEs from 01.07.2020, a new free online Udyam registration system based on self-declaration has replaced the old filing of the Udyog Aadhaar memorandum,” wrote Rane in the response. . Filing of Udyog Aadhaar Memorandum (UAM) or Udyam registration is required to receive the benefits of MSME Ministry plans and programs.
Rane explained that the Center launched the Credit Guarantee System (CGS) to strengthen the credit granting system and facilitate the flow of credit to the MSE sector without the hassle of third party collateral and guarantee.
Under the CGS, the credit guarantee is given to member lending institutions (MLIs) for loans up to 2 crore rupees. The number of guarantees is 53 86739. Also, Rs. A guarantee amount of 272,007.42 crore has been approved under the CGS since its inception, according to data received from the Credit Guarantee Fund Trust for Micro and small businesses (CGTMSE), Mumbai.
The minister added that to strengthen the economy and help future entrepreneurs, the center has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector, especially during the COVID-19 pandemic. Rane listed some of these initiatives. They were:
- Rs 20,000 crore Subordinated debt for MSMEs
- Rs 3 lakh crores Automatic unsecured loans for businesses including MSMEs.
- Rs 50,000 crore capital infusion through the Indian Autonomous Fund for MSMEs
- New revised classification criteria for MSMEs.
- New MSME registration via “Udyam registration” for ease of doing business.
- No global tenders for purchases up to Rs 200 crore
The MSME Minister added that an online “champions” portal had been launched by Prime Minister Narendra Modi on June 1, 2020. This portal covers many aspects of e-governance, including grievance resolution and support of MSMEs.
Rane also said that the Reserve Bank of India has also announced several measures to reduce the financial stress on MSMEs in the country.
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