Union Minister of State for MSME, Pratap Chandra Sarangi has said that new composite criteria of classification of MSMEs are expected to bring about many a benefit for this sector.
As a measure to help the MSMEs grow, the government has notified composite criteria of classification of MSMEs based on investment in plant and machinery or equipment and turnover of the enterprise.
Even as the new criteria are effective from 1 July, to provide hassle free transition from the old system of Udyog Aadhaar Memorandum to Udyam Registration, 31 March 2021 has been fixed as the deadline.
The New criteria provide that the turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium.
There is no difference between manufacturing and service sector enterprises. The actual figures for turnover with different investment limits depend upon a variety of socio-economic factors such as demand from consumers, inflation, availability of labour and raw materials, price fluctuations, etc in different cases. There is no uniform investment / turnover ratio.
This will also help in attracting investments and creating more jobs in the MSME sector. Moreover, the Udyam registration portal developed by this Ministry has facilitated MSMEs by providing the MSMEs to link themselves with GeM portal for ensuring their participation in government procurements, linkages with TReDS platform for helping the MSEs in realizing their delayed payments and in case of change in status as a result of re-classification due to changes in investment or turnover, the benefit associated with the status would be effective from 1April of the financial year following the year in which such change took place.
Detailing out various programmes for promotion and development of Micro, Small and Medium Enterprises (MSMEs) throughout the country, the Minister said Prime Minister’s Employment Generation Program (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), a scheme for promoting innovation, rural industry and entrepreneurship (ASPIRE), Entrepreneurship and Skill Development Program (ESDP), Credit Guarantee Fund Scheme for Micro and Small Enterprises, Credit Linked Capital Subsidy - Technology Up-gradation Scheme (CLCS-TUS), Micro & Small Enterprises - Cluster Development Program (MSE-CDP), National Scheduled Caste and Scheduled Tribe Hub (NSSH) are implemented across the country.
Under Atmanirbhar Bharat, the government recently announced a special economic and comprehensive package of Rs. 20 Lakh crore for all the sections of the society including industries and MSMEs.
He said the Union Government has taken a number of initiatives to support the MSME sector in the country which include, Rs 20,000 crore subordinate debt for MSMEs, Rs 3 lakh crores collateral free automatic loans for business, including MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, new revised criteria for classification of MSMEs, New Process of MSME registration through ‘Udyam Registration’, no global tenders for procurement up to Rs. 200 crores, which will help MSMEs.
The Prime Minister has launched an online portal “Champions”, which covers many aspects of e-governance including grievance redressal and handholding of MSMEs. Through the portal, 19,593 grievances have been redressed up to 17 September, 2020.
Minister said under the MSMED Act, 25 percent of annual procurement by Central Ministries /Departments/Public Sector Enterprises (CPSEs) has to be made from Micro & Small enterprises. This includes 4 percent from MSEs owned by SC/STs and 3 percent from MSEs owned by Women entrepreneurs. 358 items are reserved for exclusive procurement from MSEs.
Ministry of MSME has launched SAMADHAAN portal to enable Micro & Small Enterprises (MSEs) to directly register their cases on the portal relating to delayed payments by Central Ministries, Departments, CPSEs, State Government & other buyers.
The Ministry of MSME implemented a scheme namely “Building Awareness on Intellectual Property Rights (IPR)” to encourage registration of IPR by MSMEs and under the scheme, financial assistance is provided to MSMEs on grant of IPR.
During the FY 2019-20, Rs. 9.41 crore was released under the scheme, said Mr.Sarangi in a written reply in Parliament.