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Norms fixed for implementation of Ease of Doing Business (EoDB) in country to enable state-specific reforms

Posted on 26th Jul 2021 by Business So Simple in Entrepreneurship, MSME, Startups

Norms fixed for implementation of Ease of Doing Business (EoDB) in country to enable state-specific reforms

20 States allowed additional borrowing of Rs 39,521 crore during 2020-21 for implementation of EoDB reform

The Union Government has fixed norms for implementation of Ease of Doing Business (EoDB) in the country to enable state-specific reforms. This was stated in a written reply by Union Minister of State for Finance Shri Pankaj Chaudhary to a question in Lok Sabha today.

The Minister stated that in order to strengthen resources in the hands of State Governments in the wake of unprecedented COVID-19 pandemic, the Union Government addressed to all the States, laid out an additional borrowing of 0.25% for each reform of the Gross State Domestic Product (GSDP) to the States for FY 2020-21 subject to implementation of following specific state level reforms:

Implementation of One Nation One Ration Card System;
Ease of Doing Business reform;
Urban Local body/ utility reforms and
Power Sector reforms.

The Minister stated that twenty (20) states were allowed additional borrowing of Rs 39,521 crore during 2020-21 for implementation of EoDB reform and it is a continuous process and its outcome would be visible in due course. The list of States that have completely implemented the reform on EoDB are below: –

S. No.

State /UT

Status on Implementation of EoDB Reforms -Fully implemented.

Andhra Pradesh

Fully Implemented.

Karnataka

Madhya Pradesh

Tamil Nadu

Telangana

Rajasthan

Kerala

Odisha

Himachal Pradesh

Haryana

Assam

Gujarat

Punjab

Arunachal Pradesh

Uttar Pradesh

Uttarakhand

Meghalaya

Chhattisgarh

Tripura

Goa

Ministry of Finance Press Release dated 26 July 2021

In 2020-21, India exported fruits and vegetables valued at Rs 11,019 crore compared to Rs 10,114 crore worth of exports in 2019-20

Posted on 26th Jul 2021 by Business So Simple in Entrepreneurship, MSME, Science & Technology, Startups

In a big boost to AgriBusiness, First consignment of vegetables exported to UAE from Uttarakhand

In 2020-21, India exported fruits and vegetables valued at Rs 11,019 crore compared to Rs 10,114 crore worth of exports in 2019-20

In a major boost to agricultural produce exports from Uttarakhand, first consignment of vegetables including curry leaf, okra, pear and bitter gourd sourced from the farmers of Haridwar, was exported today to Dubai, United Arab Emirates.

The exports of vegetables come after a consignment of millets grown in Uttarakhand was exported to Denmark in May, 2021.

APEDA, in collaboration with Uttarakhand Agriculture Produce Marketing Board (UKAPMB) & Just Organik, an exporter, sourced & processed ragi (finger millet), and jhingora (barnyard millet) from farmers in Uttarakhand for exports, which meets the organic certification standards of the European Union.

The Uttarakhand government has been supporting organic farming. UKAPMB, through a unique initiative, has been supporting thousands of farmers for organic certification. These farmers produce mainly millets such as Ragi, Barnyard millet, Amaranthus etc.

Agricultural and Processed Food Products Export Development Authority (APEDA) has been carrying out promotional activities to bring Uttarakhand on the agricultural and processed food products export map of India. APEDA is planning to provide financial assistance for setting up a pack house in Uttarakhand which would fulfil the mandatory requirement or infrastructure for export of fresh fruits and vegetables to the international market.

APEDA would continue to focus on the Uttarakhand region both in terms of capacity building, quality upgradation, and infrastructure development by linking buyers to farmers through strengthening the entire supply chain of agricultural produce.

In 2020-21, India exported fruits and vegetables valued at Rs 11,019 crore compared to Rs 10,114 crore worth of exports in 2019-20, which is an increase of close to 9%.

APEDA undertakes market promotion activities for export of food products, market intelligence for making informed decisions, international exposure, skill development, capacity building and high-quality packaging.

Ministry of Commerce & Industry 26 July 2021

Brics MSME Rountable Emphasis Upon Formulation of a Future Roadmap to Accelerate Growth of MSME Sector

Posted on 25th Jul 2021 by Business So Simple in MSME

Secretary, MSME Shri B.B. Swain has emphasized upon formulation of a future roadmap to accelerate growth of MSME sector post Covid-19 and a guide towards creating business environment for the benefit of MSMEs. Addressing the BRICS Nation’s vision of Post-Covid Roadmap for ‘the growth accelerating sector’, he called forevaluating the extent of damage of the pandemic on MSMEs and covid response policies/programs of govt. for safeguarding MSMEs.

Ministry of MSME has hosted BRICS MSME Roundtable which focused on BRICS Nation’s vision of Post-Covid Roadmap for ‘the growth accelerating sector’. The roundtable conference witnessed participation from the Government, private sector of all BRICS nations and there was also 200+ attendees from industry associations, MSME tool rooms, DIs etc.

Deputy Managing Director- Export-Import Bank of India, and President- India SME Forum referred to Integration of MSMEs in Global and regional value chains; role of digitalization for MSMEs in post covid-19 scenario and govt. measures for their digital transformation; leveraging BRICS forum for accelerated development of MSMEs.

This was followed by a series of presentations from the Government and private sector of BRICS Nations, scheduled in separate sessions, made by the concerned senior officials from the Government and private sector.

The BRICS partners appreciated the activities planned by India, being timely and relevant in the current context and expressed their support for working together on the various initiatives proposed by India.

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Ministry of Micro,Small & Medium Enterprises Press Release dated 23 July 2021

Agri exports registered an increase of 17.37% in 2020-21

Posted on 25th Jul 2021 by Business So Simple in Entrepreneurship, MSME

India’s agriculture exports during 2020-21 have registered an increase of 17.37% as compared to exports during 2019-20.

Commodity-wise details of India’s agriculture exports, during 2019-20 and 2020-21, are at Annexure-I.

of exports of agricultural products is an ongoing process. To promote agricultural exports, the Government has introduced a comprehensive Agriculture Export Policy (AEP) to harness export potential of Indian agriculture and raise farmers’ income. Department of Commerce has taken several steps to implement AEP at State/ District level. State Level Monitoring Committees (SLMCs), Nodal Agencies for agricultural exports and Cluster Level Committees have been formed in a number of States and State-specific Action Plans have been prepared. Country and product-specific action plans have also been formulated to promote exports.

A Farmer Connect Portal has been set up for providing a platform for farmers, Farmer-Producer Organizations (FPOs) and cooperatives to interact with exporters. Buyer-Seller Meets (BSMs) have been organized in the clusters to provide export-market linkages. Regular interactions, through video-conferences, have been held with the Indian Missions abroad, to assess and exploit export opportunities. Country specific BSMs, through Indian Missions, have also been organized.

The Department of Commerce provides assistance through several other schemes to promote exports, including agriculture export viz. Trade Infrastructure for Export Scheme (TIES), Market Access Initiatives (MAI) Scheme, etc. In addition, assistance to the exporters of agriculture products is also available under the export promotion schemes of Marine Products Export Development Authority (MPEDA), Agricultural & Processed Food Products Export Development Authority (APEDA), Tea Board, Coffee Board and Spices Board.

The Government has also introduced a Central Sector Scheme – ‘Transport and Marketing Assistance for Specified Agriculture Products’ – for providing assistance for the international component of freight, to mitigate the freight disadvantage for the export of agriculture products.

Ministry of Commerce & Industry Press release dated 23 July 2021

E-commerce portal of MSME to enable all businesses to enhance global reach

Posted on 22nd Jul 2021 by Business So Simple in MSME

National Small Industries Corporation, a PSU under the Ministry of MSME has a B2B MSME Global Mart Portal and efforts have been made to further strengthen activities under it. The salient features of the portal include online registration, web store management, multiple payment options, customer support through Call Centre and enhanced security features.

Khadi and Village Industries Commission (KVIC), a statutory body under the Ministry of Micro, Small and Medium Enterprises has ekhadiindia.com for B2C outreach, which enables all businesses to have a global reach with Interactivity, Immediacy and Ease of Adaptation.

The revenue generation from the portal depends on membership of the portal.

This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Lok Sabha today.

Ministry of Micro,Small & Medium Enterprises Press Release dated 22 July 2021

Stand Up India Scheme extended up to the year 2025

Posted on 20th Jul 2021 by Business So Simple in Financial Prudence, MSME, Startups

Key Highlights:

Stand Up India Scheme was launched by the Prime Minister on 05^th April, 2016 and extended up to the year 2025.
Stand Up India Scheme facilitates loans to Scheduled Caste, Scheduled Tribe and women borrowers.
A total of 1,16,266 loans amounting to Rs. 26204.49 crore extended under the Scheme since inception.
Margin Money requirements for Scheme loans reduced in the Budget Speech for FY 2021-22
Activities allied to agriculture included in the Scheme in the Budget Speech for FY 2021-22.

As informed by the Department of Financial Services, Ministry of Finance, the Stand Up India Scheme was launched by the Prime Minister on 05^th April, 2016 and has been extended up to the year 2025. The objective of the Stand Up India Scheme is to facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch for setting up a green field enterprise in manufacturing, services or trading sector. As on 28.06.2021, a total of 1,16,266 loans amounting to Rs. 26204.49 crore have been extended under the Scheme since inception.

Pursuant to an announcement made by the Finance Minister in the Budget Speech for F.Y.2021-22, the margin money requirement for loans under the Scheme has been reduced from ‘upto 25%’ to `upto 15%’ and activities allied to agriculture have been included in the Scheme. Apart from this, no other change is contemplated in the scheme.

Government does not allocate funds for loans under the Stand Up India Scheme. Loans under the Scheme are extended by SCBs as per commercial parameters, Board approved policies of respective banks and extant RBI guidelines. An amount of Rs. 500 crore each was however released by Government in FY 2016-17 and FY 2017-18 and Rs 100 crore in FY 2020-21 towards the corpus of Credit Guarantee Fund for Stand Up India (CGFSI).

The Government has taken various steps towards effective implementation of the Scheme, these, inter alia, include provision for submission for online applications by potential borrowers through http://www.standupmitra.in portal, hand-holding support, intensive publicity campaign, simplified loan application form, Credit Guarantee Scheme, convergence with State and Central government Schemes wherever feasible, reduction in margin money and inclusion of activities allied to agriculture etc.

This information was given by Minister of State for Social Justice and Empowerment Sushri Pratima Bhoumik in a written reply in Lok Sabha today.

Ministry of Social Justice & Empowerment Press release dated 20 July 2021

Disbursal of Loans to Msmes Under ECLGS

Posted on 19th Jul 2021 by Business So Simple in MSME

Ministry of Micro,Small & Medium Enterprises posted Date:- Jul 19, 2021

Emergency Credit Line Guarantee Scheme (ECLGS) is under the operational domain of Ministry of Finance, Department of Financial Services (DFS). As informed by DFS, as on 2.07.2021, guarantees have been issued for loan granted to around 1.09 crore Micro, Small and Medium Enterprises (MSMEs).

ECLGS being a demand driven scheme, sanctions/disbursements are made by lending institutions based on assessment of borrower’s requirement and their eligibility.

The eligibility criteria for availing credit under ECLGS are:

For ECLGS 1.0, MSME units, Business Enterprises, Mudra Borrower and individual loans for business purpose having loan outstanding upto Rs.50 crore and days past due upto 60 days as on 29.02.2020.
For ECLGS 2.0, Borrower belonging to 26 stressed sectors identified by Kamath Committee & Healthcare sector having loan outstanding above Rs.50 crore and upto Rs.500 crore and days past due upto 60 days as on 29.02.2020.
For ECLGS 3.0 Borrower belonging to Hospitality, Travel & Tourism, Leisure & Sporting and Civil Aviation sector having days past upto 60 days as on 29.02.2020.
For ECLGS 4.0 Existing Hospitals/Nursing Homes/Clinics/Medical Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having credit facility with a lending institution with days past due upto 90 days as on March 31, 2021.

As on 2.07.2021 an amount of Rs.2.73 lakh crore have been sanctioned under the scheme of which an amount of Rs.2.14 lakh crore has been disbursed.

The scheme was designed to support existing borrowers meet the liquidity crisis due to Covid-19 pandemic. Ministry of MSME has launched Credit Guarantee Scheme for Subordinate Debt (CGSSD) to extend financial assistance to stressed MSMEs including NPA accounts. The credit needs of the first time bowers belonging to the Micro and Small Enterprises are catered to by the Credit Guarantee Scheme for Micro and Small Enterprises.

This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Rajya Sabha today.

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Loans to MSMES Industries under CGS

Posted on 19th Jul 2021 by Business So Simple in MSME

Ministry of Micro,Small & Medium Enterprises posted Date:- Jul 19, 2021

All new and existing Micro and Small Enterprises engaged in manufacturing or services including trading activity are eligible to be covered under Credit Guarantee Scheme (CGS) implemented by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). No eligible proposal is denied. Upto June 30, 2021 CGTMSE has approved 53,86,739 guarantees cumulatively for an amount of Rs. 2,72,007 crore. During the first quarter of Financial Year 2021-22 CGTMSE has reported that guarantee approvals with respect to Banks and NBFCs are Rs. 6,693 crore and Rs. 6,603 crore respectively during first quarter of Financial Year 2021-22 as against Rs. 6,041 crore and Rs. 2,934 crore respectively during first quarter of Financial Year 2020-21.

During Financial Year 2020-21, CGTMSE has approved 22,021 guarantee applications amounting Rs. 1,408 Crore for the State of Telangana.

Government of India has announced a relief package to support Indian Economy including the MSME Sector. This package inter-alia also includes measures such as Rs 1.1 lakh crore loan guarantee scheme for covid affected sectors, additional Rs 1.5 lakh crore for Emergency Credit Line Guarantee Scheme, Credit Guarantee Scheme to facilitate loans to approximately 25 lakh small borrowers through Micro Finance Institutions etc.

This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Rajya Sabha today.

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Setting UP New Units of MSMES

Posted on 19th Jul 202119th Jul 2021 by Business So Simple in MSME

Ministry of Micro,Small & Medium Enterprises

Setting UP New Units of MSMES

Posted Date:- Jul 19, 2021

The Government of India simplified the process of registration of MSMEs by replacing the UdyogAadhaar Memorandum (UAM) with Udyam Registration (UR) on1^st July 2020. UR is free of cost, transparent, online, hassle free and is based on self-declaration. It does not require any documents and has an automatic integration with ITR and GSTIN. During the second wave of Covid -19 pandemic MSMEs continued to register on UR Portal.

MSMEs can avail the benefits of schemes such as Prime Minister Employment Generation Programme (PMEGP)/Rural Employment Generation Programme (REGP)/Micro Units Development & Refinance Agency (MUDRA) and the announcements made to provide relief to MSMEs from the problems faced due to COVID-19 pandemic. The number of Projects and Employment generation under PMEGP during 2020-21 as on July, 2021 are 91,054 and 7,28,432, respectively.

This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Rajya Sabha today.

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Encouragement to MSMES

Posted on 19th Jul 2021 by Business So Simple in MSME

The Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector in the country. These schemes and programmes include Prime Minister’s Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

Post Covid-19, Government has taken a number of initiatives under AatmaNirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 pandemic. Some of them are:

i) Rs 20,000 crore Subordinate Debt for MSMEs.

ii) Rs. 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.

iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.

iv) New revised criteria for classification of MSMEs.

v) New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.

vi) No global tenders for procurement up to Rs. 200 crores, this will help MSME.

An online Portal “Champions” has been launched on 01.06.2020 by Hon’ble Prime Minister. This covers many aspects of e-governance including grievance redressal and handholding of MSMEs. Through the portal, total 35,361 grievances have been redressed upto 12.07.2021.

Studies have been conducted by National Small Industries Corporation (NSIC) and Khadi and Village Industries Commission (KVIC) to assess the impact of COVID-19 Pandemic on MSMEs including units set up under Prime Minister’s Employment Generation Programme (PMEGP).

The main findings of the online study conducted by NSIC to understand the operational capabilities and difficulties faced by the beneficiaries of NSIC schemes amid Covid-19 pandemic are as follows:

91% MSMEs were found to be functional.
Five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Material (8% units.)

The findings of the study conducted by KVIC are as under:

i. 88% of the beneficiaries of PMEGP scheme reported that they were negatively affected due to Covid-19 while the remaining 12% stated that they were benefitted during Covid-19 Pandemic.

ii. Among the 88% who were affected, 57% stated that their units were shut down for some time during this period, while 30% reported drop in production and revenue.

iii. Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sector and around 25% stated that their units benefitted as they were dealing with essential commodities or services.

iv. On the question of regular payment of salaries to the employees, around 46.60% respondents stated that they had paid the salaries in full, 42.54% reported to have partially paid and 10.86% reported to have not paid salary for some time during this period.

v. Majority of the beneficiaries expressed the need for additional financial support, relaxation of waiver of interest and marketing support for their products.

This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Rajya Sabha today.

Ministry of Micro,Small & Medium Enterprises

Posted Date:- Jul 19, 2021

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