Are you MSME? Here is Modi's diwali gift, loans up to Rs 1 crore in 59 minutes

Last Updated: Fri, Nov 02, 2018 19:58 hrs

New Delhi: The government under the leadership of PM Modi on Friday said that a new website will help micro, small and medium enterprises of the country get loans in under an hour.

A portal developed by the government will offer loans in under 59 minutes said PM Narendra Modi at an event in new Delhi.

The PM was speaking at the launch of the government's Support and Outreach initiative for Micro, Small and Medium enterprises at Vigyan Bhavan in New Delhi on Friday.

With the under-59 minute portal, MSME businesses have been promised of hand-holding as well as quicker access to credit. Besides faster credit, small businesses also stand to benefit from a two percent tax rebate on incremental loans of up to Rs 1 crore, the PM added.

The goods and services tax council had also established a panel of finance ministers to look into the issues that the country’s small businesses were facing.

"Small businesses should get easier access to loans without having to frequently visit bank branches, at a cheaper interest rate," Modi said.

The PM lavished praise for MSMEs that have made major contributions to the economy.

PM Modi said that MSMEs were the main bread-earner for millions of Indians.

If agriculture is the backbone, then MSME shows the pace of economy.

From weaving to medicine, agriculture to sports, clothes (Vastra) to defense (shastra), Wool (Oon) to Power (Urja)... There are many sectors that show the contribution of MSMEs he said.

PM Modi also heaped praise for MSME and ancillary units. He said be it Kancheepuram Sarees or Panipat Handlooms... Ludhiana's Hosiery or Moradabad's Bronze industry... Benaras' Saree or Jamshedpur and Pune's Auto ancillary units or Bharuch's chemical unit or Coimbatore's pumps... Jodhpur Handicrafts, Cuttack jewellery, Madhubani paintings... From North to South and East to West... MSMEs have expanded...

He emphasized that such activities were not just business but a major part of regular lives. The government, in the program's first phase has planned to extend the reach to 78 MSME clusters across the country. The website will process loan requests in the range of Rs 1 lakh to 1 crore and will sanction it within 59 minutes.

The website says that in cases when collaterals are not available, the borrower can avail loans via CGTMSE (Credit Guarantee Fund Scheme For Micro and Small Enterprises) scheme.

The MSME program according to the Press Information Bureau is expected to be held at 100 locations across the country. Such events will see the participation of state level leaders, Ministers and state governments. The outreach program will run for 100 days. The progress of this programme, to be implemented in mission mode, will be monitored on a continuous basis by senior officials of Union and State Governments. 

End of Inspector Raj

Modi said that inspections of factories in the sector will be sanctioned only through a computerised random allotment and inspectors will need to upload reports on portal within 48 hours. He said this will end in the era of Inspector Raj.

"No inspector can now go anywhere. He will be asked why he went to a factory," he said.

Also, MSMEs will be offered better ease of doing business by allowing easier compliance with environmental rules. MSMEs can use single consent for air and water clearance for factories.

Instead of eight labour laws and ten central rules, an ordinance has been promulgated to simplify levy of penalties for minor offences under the Companies Act.

According to PM Modi, implementation of 12 new measures will brighten "Deepawali" and help millions of entrepreuners and employees.

The Prime Minister also announced a Rs 6,000 crore package for creation of 20 hubs and 100 tool rooms for technology upgradation.

All companies with turnover of more than Rs 500 crore would have to now come on Trade Receivables e-Discounting System (TReDS) platform so that there is no cash flow problem for MSMEs.

Talking of India jumping 23 places on the World Bank's latest 'Ease of Doing Business' ranking, Modi said in four years his government has achieved what many did not believe and what no other nation has done -- leaping from 142nd rank in 2014 to 77th position.

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