Category: MSME

Expansion and Increase in Capacity of MSMEs

Posted on by Business So Simple in MSME

The Government of India has announced Fund of Funds with the nomenclature Self Reliant India (SRI) Fund to infuse  Rs. 50,000 crore as equity funding in those MSMEs which have the potential and viability to grow and become large units. Under this scheme total size of fund of Rs. 50,000 Crore has a provision of Rs.10,000 Crore from Government of India and Rs.40,000 Crore leverage through Private Equity / Venture Capital funds.The guidelines of the fund have been issued. This initiative is aimed at providing growth capital to the deserving and eligible units of MSME sector.

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 Press release dated 19 July 2021

Cabinet approves Revising and Realigning various components of Department of AnimalHusbandry & Dairying Schemes and Special livestock package for leveraging investment of Rs.54,618 crore

Posted on by Business So Simple in Entrepreneurship, MSME

The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Shri Narendra Modi has approved implementation of special livestock sector package consisting of several activities by revising and realigning various components of Government of India’s schemes for next 5 years starting from 2021-22 in order to further boost growth in livestock sector and thereby making animal husbandry more remunerative to 10 crore farmers engaged in Animal Husbandry Sector. This package envisages Central Government’s support amounting to Rs.9800 crore over duration of 5 years for leveraging total investment of Rs.54,618 crore for 5 years.

Financial Implication:

The financial commitment of Rs.9800 crore by Government of India over next 5 years starting 2021-22 for these schemes would leverage total investment of Rs.54,618 crore in livestock sector including share of investments by State Governments, State Cooperatives, Financial institutions, External funding agencies and other stakeholder.

Details:

As per this, all the schemes of the Department will be merged into three broad categories as Development Programmes which includes Rashtriya Gokul Mission, National Programme for Dairy Development (NPDD), National Livestock Mission (NLM) and Livestock Census and Integrated Sample Survey (LC & ISS) as sub-schemes, Disease Control programme renamed as Livestock Health and Disease Control (LH & DC) which includes the present Livestock Health and Disease Control (LH & DC) scheme and National Animal Disease Control Programme (NADCP) and Infrastructure Development Fund wherein, the Animal Husbandry Infrastructure Development fund (AHIDF) and the Dairy Infrastructure Development Fund (DIDF) are merged and the present scheme for support to Dairy Cooperatives and Farmer Producer Organizations engaged in Dairy activities is also included in this third category.

Impact:

The Rashtriya Gokul Mission will help in development and conservation of indigenous breeds and would also contribute in improving the economic condition of the rural poor. The National Programme for Dairy Development (NPDD) scheme is targeted towards installation of about 8900 bulk milk coolers, thus providing benefit to more than 8 lakh milk producers and 20 LLPD milk will be additionally procured. Under NPDD, financial assistance from Japan International Cooperation Agency (JICA) will be availed thus strengthening and creating fresh infrastructure in 4500 villages.

****

Government approves continuation of Rebate of State and Central taxes and Levies (RoSCTL) on Export of Apparel/ Garments and Made-ups

Posted on by Business So Simple in Entrepreneurship, MSME, Startups

Government approves continuation of Rebate of State and Central taxes and Levies (RoSCTL) on Export of Apparel/ Garments and Made-ups


RoSCTL extended till 31st March 2024 at existing rates

Ensures a stable and predictable policy regime

Fillip for exports of globally competitive Indian textiles

Promote exports by start-ups and entrepreneurs

Creation of lakhs of jobs and boost economic growth

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated 8th march 2019, on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters. The scheme will continue till 31st March 2024.

The other Textiles products (excluding Chapters-61, 62 & 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, under RoDTEP along with other products as finalised by Department of Commerce from the dates which shall be notified in this regard. 

Continuation of RoSCTL for Apparel/Garments and Made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters. Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs.

Tax Refund for Exported Products

It is a globally accepted principle that taxes and duties should not be exported, to enable a level playing field in the international market for the exporters. In addition, to import duties and GST which are generally refunded, there are various other taxes/duties that are levied by Central, State and Local Government which are not refunded to the exporters.  These taxes and levies get embedded in the price of the ultimate product being exported. Such embedded taxes and levies increase the price of Indian Apparel and Made-ups and make it difficult for them to compete in the international market.

Some of the cess, duties for which taxes and levies are not refunded and are part of embedded taxes directly and indirectly, are as follows:-

  1. Central & statetaxes, duties & cesses on fuel used for transportation of goods, generation of power and for the farm sector.
  2. Mandi Tax
  3. Duty on electricity charges at all levels of the production chain
  4. Stamp duty
  5. GST paid on input such as pesticides, fertilizers, etc.
  6. GST paid on purchases from unregistered dealers, etc.
  7. Cess on coal or any other products

Realizing the importance of refund of embedded taxes, cesses and duties, the Ministry of Textiles first launched a scheme by the name of Rebate of State Levies (ROSL) in 2016. In this scheme the exporters of apparel, garment and made-ups were refunded embedded taxes and levies through the budget of the Ministry of Textiles. In 2019, the Ministry of Textiles notified a new scheme by the name Rebate of State and Central Taxes and Levies (RoSCTL). Under this scheme, the exporters are issued a Duty Credit Scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic Customs duty for the import of equipment, machinery or any other input.

Just one year after launch of RoSCTL the pandemic set in and it has been felt that there is a need to provide some stable policy regime for the exporters.  In the textiles industry, buyer places long term orders and exporters have to chalk out their activities well in advance, it is important that the policy regime regarding export for these products should be stable. Keeping in view the same, the Ministry of Textiles has decided to continue the scheme of RoSCTLupto 31st March, 2024 independently as a separate scheme.

Continuation of RoSCTL scheme will help generate additional investment and give direct and indirect employment to lakhs especially women.

Ministry of Textiles Press release dated 14th July 2021

Government announces inclusion of Retail and Wholesale trades as MSMEs

Posted on by Business So Simple in MSME

Ministry of Micro,Small & Medium Enterprises issued Press release today 02 July 2021 on inclusion of Retail and Wholesale trades as MSMEs.

Minister of MSME and Road Transport and Highways Shri Nitin Gadkari today announced revised guidelines for MSMEs with inclusion of Retail and Wholesale trades as MSMEs. In a Tweet he said under the leadership of PM Shri Narendra Modi Ji, we are committed to strengthening of MSME and make them engines for economic growth. Shri Gadkari said the revised guidelines will benefit 2.5 Crore Retail and Wholesale Traders. He said Retail and wholesale trade were left out of the ambit of MSME, now under the revised guidelines, retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines.

With the revised guidelines the Retail and wholesale trades will be now be allowed to register on Udyam Registration Portal.

Manufacturing sector needs to be strengthened for employment generation

Posted on by Business So Simple in Entrepreneurship, MSME

Ministry of Micro,Small & Medium Enterprises Press Release dated 29th June 2021

Shri Nitin Gadkari says Manufacturing sector needs to be strengthened for employment generation

Posted Date:- Jun 29, 2021

Minister for MSME and Road Transport and Highways Shri Nitin Gadkari has said that the Manufacturing sector needs to be strenghtened for employment generation and eradicate poverty. Addressing the commerce and industry fraternity of Maharashtra during  the 16th Dr Gadgil Memorial lecture he said we have to make vision for the future in an integrated manner where conversion of knowledge into wealth takes place.

Shri Gadkari said talented young skilled manpower is the strength of the country. He said we need to reduce our imports and increase our exports. The Minister said policies have to be planned for socially and  econimically  backward areas to support entrepreneurs. He said decentralisation of industry is very important for development.

Full event link https://youtu.be/XFxoJYqWGW4

*****

Micro food processing Enterprises (PMFME) Scheme

Posted on by Business So Simple in Entrepreneurship, Miscellaneous, MSME

Ministry of Food Processing Industries Press release dated 29th June 2021

Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme under Aatmanirbhar Bharat Abhiyan Completes One Year


Seed Capital worth Rs. 25.25 Cr. disbursed to State Rural Livelihood Mission under the scheme

‘One District One Product’ of 707 districts approved for 35 States/UTs

54 Common Incubation Centres approved in the 17 States/UTsPosted Date:- Jun 29, 2021

The centrally sponsored Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme, launched under the Aatmanirbhar Bharat Abhiyan, to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector, marks the completion of its one year.

सूक्ष्म उद्यमों के संबल की कहानी #PMFME योजना कह रही है अपनी ज़ुबानी।

आत्मनिर्भर भारत अभियान के तहत @MOFPI_GOI की महत्वकांक्षी योजना @PMFMEScheme के एक वर्ष पूरे होने पर, योजना से जुड़े सभी लोगों को ढेर सारी बधाई।#OneYearofPMFMEScheme pic.twitter.com/AGCpETnKxp— FOOD PROCESSING MIN (@MOFPI_GOI) June 29, 2021

Launched on 29th June 2020, the PMFME Scheme is currently being implemented in 35 States and Union Territories. The online portal for the application of the PMFME Scheme was made live on 25th January 2021. More than 9000 individual beneficiaries have registered on the portal, out of which more than 3500 applications have been successfully submitted under the scheme.

Milestones achieved under the PMFME Scheme

  1. One District One Product

Under the One District One Product (ODOP) component of the PMFME Scheme, the Ministry of Food Processing Industries approved ODOP for 707 districts for 35 States and UTs, including 137 unique products as per the recommendations received by States/UTs. 

The GIS ODOP digital map of India has been launched to provide details of ODOP products of all the States and UTs. The digital map also has indicators for Tribal, SC, ST, and aspirational districts. It will enable stakeholders to make concerted efforts for its value chain development.

  1. Convergence

Under the PMFME Scheme, the Ministry signed three joint letters with the Ministry of Rural Development, the Ministry of Tribal Affairs, and the Ministry of Housing and Urban Affairs. 

The Ministry of Food Processing Industries has signed six Memorandum of Understanding (MoUs) with the Indian Council of Agricultural Research (ICAR), the National Cooperative Development Corporation (NCDC), the Tribal Cooperative Marketing Development Federation of India (TRIFED), the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), National Scheduled Castes Finance and Development Corporation (NSFDC), and Rural Self Employment Training Institutes (RSETI).

An agreement has been signed with the Union Bank of India as the Nodal Bank of the scheme and MoUs with 11 banks as official lending partners for the PMFME Scheme.

  1. Capacity Building and Incubation Centres

Under the Capacity Building component of the PMFME Scheme, the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) and the Indian Institute of Food Processing Technology (IIFPT) have been performing a key role in providing training and research support to selected enterprises/groups/clusters in partnership with the State Level Technical Institutions. The training of 371 Master Trainers has been conducted under the Entrepreneurship Development Programme (EDP) & various food domains.

NIFTEM & IIFPT have prepared training modules on 137 ODOPs which include 175 Presentations, 157 Videos, 166 DPRs, and 177 Course Content/Handbooks. Training of 469 District Level Trainers has been conducted in 18 States/UTs and in progress in other States. 491 District Resource Persons have been appointed across 302 districts. 

Under the scheme, 54 Common Incubation Centres have been approved in the 17 States and UTs like Karnataka, Uttar Pradesh, Rajasthan, J&K, Madhya Pradesh, Tamil Nadu, Telangana, Chhattisgarh, Himachal Pradesh, Kerala, Sikkim, Andaman & Nicobar, Andhra Pradesh, Meghalaya, Mizoram, Odisha, and Uttarakhand. The Ministry of Food Processing Industries in collaboration with the IIFPT has developed an online portal for submission of Common Incubation Centre proposals and an online common incubation centre map for the facilitation of details of incubation centres across the country.

  1. Seed Capital

The component under PMFME for providing seed capital to SHGs is being implemented with the support of the National Rural Livelihood Mission (NRLM) and its network of State Rural Livelihood Mission (SRLMs) operating at the state level. The PMFME Scheme envisages financial support of Rs. 40,000 for working capital and purchase of small tools for each member of SHGs engaged in food processing activities. To date, NRLM has recommended 43,086 SHG members to State Nodal Agencies (SNA) for an amount of Rs. 123.54 Cr. SNA has approved the seed capital of 8040 members and disbursed the amount of Rs. 25.25 Cr. to SRLM.  

  1. Marketing and Branding

Under the scheme, MoUs have been signed with NAFED and TRIFED to take up the marketing and branding support for 10 products each. NAFED has selected products like Pineapple, Millet based products, Coriander, Makhana, Honey, Ragi, Bakery, Isabgol, Turmeric, and Cherry for branding and marketing support. TRIFED has selected products like Honey, Tamarind, Spices, Amla, Pulses/Grains/Millets, Custard Apple, Wild Mushroom, Cashew, Black Rice, and Wild Apple under the scheme.

  1. Institutional Mechanism

All the 35 participating States and UTs have constituted/ identified their respective State Nodal Agencies, State Level Approval Committees, District Level Committees, and State Level Technical Institutions. Moreover, a call centre has been established at NIFTEM to address queries and guide the stakeholders of the Scheme.

  1. Promotion and Publicity of the PMFME Scheme

The Ministry of Food Processing Industries in collaboration with States/UTs and Agricultural Universities is conducting nationwide promotion and publicity of the PMFME Scheme to sensitize the stakeholders via radio, print media, offline workshops, webinars, regional language brochures/booklets, outdoor publicity, and over digital media via website, apps and social media platforms. The PMFME Scheme monthly e-newsletter is being sent to more than 5 lakh stakeholders. The PMFME Podcast series has been launched to interact with Agri-business incubators, industry experts, and startups.  

To commemorate 75 years of India’s Independence, under the Azadi Ka Amrit Mahotsav initiative, the Ministry of Food Processing Industries is conducting 75 Unique One District One Product (ODOP) webinars/offline workshops across the country in collaboration with States/UTs, NIFTEM, and IIFPT. A weekly series of success stories titled “Kahaani Sukshma Udyamon Ki” has been launched to bring 75 stories of existing micro food processing enterprises.  

About the PMFME Scheme

Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.

For more details, visit:

https://pmfme.mofpi.gov.in/pmfme/#/Home-Page 

*****

APS/JKRelease Id :-1731151

Read this release in

Hindi

PM’s tweets on measures announced by FM

Posted on by Business So Simple in Entrepreneurship, MSME

PM’s tweets on measures announced by FM


Boost to private investment in medical infrastructure

Focus on strengthening healthcare facilities for the children

Multiple initiatives for farmers, small entrepreneurs and self-employed persons

The measures will help to stimulate economic activities, boost production & exports and generate employment: PM

Measures demonstrate our Government’s continuing commitment to reforms: PM

The Prime Minister , Shri Narendra Modi has said that the measures announced by the Finance Minister today will help to stimulate economic activities, boost production & exports and generate employment. He also underlined the measures taken for healthcare, healthcare facilities for children, farmers, small entrepreneurs and self-employed persons.

In a series of tweets the Prime Minister said.

“Measures announced by FM @nsitharamantoday will enhance public health facilities, especially in under-served areas, boost private investment in medical infrastructure and augment critical human resources. Special focus is on strengthening healthcare facilities for our children.

Importance has been given to helping our farmers. Multiple initiatives have been announced which reduce their costs, increase their incomes & support greater resilience and sustainability of agricultural activities.

Further support has been announced for our small entrepreneurs & self-employed persons,to enable them to sustain their business activities but & expand them further. Several initiatives, including financial assistance are being taken to help those linked with tourism.

The measures will help to stimulate economic activities, boost production & exports and generate employment. Result linked Power Distribution Scheme and streamlined processes for PPP projects and Asset Monetisation demonstrates our Government’s continuing commitment to reforms.”

Measures announced by FM @nsitharaman today will enhance public health facilities, especially in under-served areas, boost private investment in medical infrastructure and augment critical human resources. Special focus is on strengthening healthcare facilities for our children.— Narendra Modi (@narendramodi) June 28, 2021

Finance Ministry release on the package can be seen here.

https://pib.gov.in/PressReleseDetail.aspx?PRID=1730963

DS

PMO Press release dated 28 June 2021

Indian MSMEs as Growth Engines to Economy

Posted on by Business So Simple in MSME

Ministry of Micro,Small & Medium Enterprises press release dated 28 June 2021

Minister For MSME and Road Transport and Highways Shri Nitin Gadkari emphasizes on all-round efforts for implementation of various initiatives undertaken as part of Aatmanirbhar Bharat

Minister for MSME and Road Transport and Highways Shri Nitin Gadkari has emphasized that all-round efforts are required for implementation of various initiatives undertaken as part of Aatmanirbhar Bharat. Addressing, a Virtual Conference on Indian MSMEs as Growth Engines to Economy on the occasion of International MSME Day the minister mentioned that in the journey of making Aaatmanirbhar Bharat, it is imperative that special focus is laid towards Agriculture, Food Processing industry, Leather and Tribal Industries. Further he also urged to make use of technology and mentioned that research, innovation and quality improvement can play a major role in industrial development.

On this special occasion, Minister for MSME, Shri Nitin Gadkari launched the integrated services of Udyam Registration Portal with Common Service Centre (CSC) Portal to increase penetration of benefits of various Government schemes amongst MSMEs in far-flung areas.

Minister of State for MSME and Animal Husbandry, Dairying & Fisheries, Shri Pratap Chandra Sarangi stated that Ministry is supporting MSMEs through various schemes and initiatives to enhance manufacturing competitiveness and unleash the true potential of MSMEs. He also emphasized on the importance of Import substitution and encouraged MEMEs to adopt digital tools and techniquesin unprecedented times, to re-build and craft new models that will ensure speedy revival of their businesses and become future ready.

During the Panel Discussions chaired by Secretary (MSME) and Additional Secretary & Development Commissioner (MSME), special emphasis was laid on Export promotion and making use of Free Trade Agreements (FTA) for achieving India’s goal of becoming a $5 trillion economy by 2025. In another Session on Enabling MSME E-commerce for Business Beyond Borders, it was highlighted that in recent years, the emergence of online markets through e-commerce has boosted and had a positive impact on MSMEs. By adopting e-commerce, MSMEs stand to gain significant advantages such as increased revenues and margins, improved market reach, access to new markets, savings in marketing spending, customer acquisition and enhanced customer experience. Ministry of MSME is committed towards providing requisite support to the MSMEs and upcoming entrepreneurs in strengthening Indian economy and working towards vision of Aatmanirbhar Bharat.

On the occasion of International MSME Day,the Virtual Conference on Indian MSMEs as Growth Engines to Economy was organised by the Ministry of MSME in association with India SME Forum, Electronics & Computer Software Export Promotion Council, Export Promotion Council for Handicrafts, the Gem & Jewelry export promotion council, Council for Leather Exports and All India Plastics Manufacturers’ Association on role of MSMEs in fueling the growth to achieve the PM’s vision of USD 5 Trillion Economy.

******

MJPS

Ministry of Micro, Small and Medium Enterprises Extends Validity of Udyog Aadhaar Memorandum from 31st March, 2021 to 31st December, 2021

Posted on by Business So Simple in Business Consultancy, Entrepreneurship, MSME, Startups

Ministry of MSME issued Press release on Thursday, 17th June 2021 extending Validity of Udyog Aadhaar Memorandum from 31st March, 2021 to 31st December, 2021

Posted Date:- Jun 17, 2021

Ministry of Micro, Small and Medium Enterprises has issued an amendment to the original notification No. S.O. 2119 (E) dated 26.06.2020 vide 2347(E) dated 16.06.2021, extending the validity of EM Part-II and UAMs from 31.03.2021 to 31.12.2021. This would facilitate the holders of EM Part-II and UAMs to avail benefits of the provisions under various existing schemes and incentives including Priority Sector Lending benefits of MSME.

Considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions and Government departments dealing with the interest of MSME Sector, the said amendment has been carried out.

It is expected that existing EM Part-II and UAM holders would be able to migrate to the new system of Udyam Registration, which was launched on 1st July, 2020, and would avail the benefits of Government Schemes, thereby paving the way for strengthening MSMEs and leading to their faster recovery, boost to their economic activity and creation of jobs.

Interested enterprises can register on https://udyamregistration.gov.in free of cost and without any documents. Only PAN and Aadhaar are required for registration on the Udyam portal. So far, this portal has facilitated registration and classification of 33,16,210 enterprises as on 17.06.2021 (5.26.43 PM).

*****

MJPS / RR