Easier loan norms, single-window clearance for MSMEs on anvil

Tags: News
The government is working on simplifying procedures related to obtain loans, raw material, marketing, labour laws, and acquiring approvals through a single-window clearance mechanism to encourage participation of small entrepreneurs in the MSME sector.

"As has been advised by the Prime Minister (Narendra Modi), we will put in place a single-window clearance mechanism for the MSMEs and make all efforts to address the significant issues of raw material, marketing, capital and others in a specific timeframe," Union MSME Minister Kalraj Mishra today said here at an Assocham conference.

On the issue of revising the definition of micro, small and medium enterprises (MSMEs) so that they can adapt to the dynamic economic scenario, he said the need has been felt to increase the limit of capital investment by various stakeholders and the Government will hold discussions to ascertain the new investment limit.

"Everyone feels that the (investment) limit at present must be enhanced. We will discuss and decide the new ceiling," Mishra said.

At present, the definition of MSMEs in India is based on their capital investment. A micro enterprise belonging to the manufacturing sector must have capital investment of up to Rs 25 lakh in plant & machinery, while the same investment should be up to Rs 10 lakh for service sector micro enterprises.

To be categorised as a small enterprise, the investment in plant & machinery should be between Rs 25 lakh to Rs 5 crore for manufacturing units whereas service sector units should invest between Rs 10 lakh to Rs 2 crore.

Similarly, to fall in the medium enterprises category, manufacturing units must invest Rs 5 crore and Rs 10 crore in plant & machinery whereas service sector units must invest Rs 2 crore to Rs 5 crore.

The new definition will also seek to resolve the issue of unregistered MSMEs which are not getting the benefits of the government policies at present.

The Minister also said that the Government will make efforts to revive sick industrial units in the MSME sector.

With the new government on the verge of completing one- month in office, Mishra said: "We have been successful in giving the message about a creative and positive work culture that was expected of us, we are going forward in that direction while taking things seriously".

Hinting towards the recent hike in rail passenger fares and freight rates, he said, "Though we do experience that certain recent steps being taken by us might be causing problems to the masses but we have done that keeping in mind the long-term results and those will prove to be fruitful as we go ahead".

EDITORIAL OF THE DAY

  • It makes sense to highlight PM’s achievements with little noise to attract greater attention

    Are prime minister Narendra Modi and the BJP going over the top?

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Can Hefa actually become a reality?

The ministry of human resource development (MHRD) is actively wo­rking ...

Kuruvilla Pandikattu

The India of our dreams

The speech “I have a dr­eam,” that Martin Luther King ...

Shona Adhikari

Head to Tate Modern for a refresher course on Bhupen Khakhar

India’s celebrated artist Bhupen Khakhar’s exhibition, titled You Can’t Please ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture