On Friday, 2nd November 2018, Prime Minister Narendra Modi launched the ‘Support & Outreach’ initiative which is a 59-minute loan authorization process. The Prime Minister said that this collective initiative is a big step in shining small and medium enterprises.
HIGHLIGHTS
- PM Narendra Modi launched ‘Support & Outreach’ programme with 12 important decisions.
- Reduction in labour laws for small enterprises
- This initiative is taken for the enhancement in Micro Small and Medium Enterprises (MSMEs),
Get loans up to Rs 1 crore in 59 minutes: PM Modi announces ‘Diwali gift’ for MSMEs
The initiative is taken for Micro Small and Medium Enterprises (MSMEs) where twelve important decisions are taken by government and some of them are already implemented few days back.
PM Modi announced at the event that the government is going to sanctioned a loan of up to Rs 1 crore in just 59 minutes and 2% allowance for loans of up to 1 crore for GST-registered MSMEs.
PM Narendra Modi said “Minimum government and maximum governance is the core principle of our government. This is new India where no one needs to go around government offices”.
As part of government’s ‘Support & Outreach’ initiative for MSMEs, PM Narendra Modi also announced a reduction in labour laws, easier agreement with environmental regulations and alterations in company rules and regulations.
About unnecessary scrutiny on MSMEs PM Narendra Modi, said that from now onwards inspections of factories in the MSMEs will be authorized only through a computerised random allotment. If any inspector visit any such kind of factory in this sector, he will be asked the reason for visiting the factory and also the inspectors have to upload their reports within 48 hours after their allotment.
Through GST portal MSMEs can apply for loan. Interest also increased from 3 per cent to 5 per cent by the government on pre and post shipment credit exports by MSMEs. Obligatory sourcing by Public Sector Undertakings from MSMEs has also increased from 20 percent to 25 percent. He added that these incentives will help small and medium enterprises.
It is compulsory for big companies to register on trade receivable discounting site and are also demanded to clear the bills of MSMEs with speed and efficiency. It is now compulsory for government companies to buy at least 3 per cent of their purchases from women tycoons in order to boost female entrepreneurs in India.
All businesses corporations that have more than Rs 500 crore turnovers would have to register on Trade Receivables e-Discounting System (TReDS) website in order to deal with the cash flow of MSMEs.
PM Modi initiative of 12 new significant procedures will make Diwali happier and brighter for the MSME sector and its millions of tycoons and employees in India.
PM Narendra Modi also added by saying that India on the World Bank’s has leaped from 142nd to 77th position in his 4 year governance from 2014 and our country has achieved that position that many of us did not believe. Soon we will break into top 50 also.
