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Important

Government’s Support and Outreach Initiative for MSME sector     PM unveils 12 key initiatives     59 minute loan portal to enable easy access to credit for MSMEs     Interest equalisation rate on pre-shipment & post shipment credit increased for export  from 3% to 5%     Environmental clearance and consent to establish to be merged     Mandatory 25 percent procurement from MSMEs by CPSEs     Ordinance for simplifying procedures for minor offences under Companies Act     Others

Dear Members,   We are pleased to inform you that the Hon’ble Prime Minister, Shri Narendra Modi-ji, has launched a historic support and outreach programme on 02/11/2018  for the Micro, Small and Medium Enterprises (MSME) sector.   As part of this programme, the Prime Minister has  unveiled 12 key initiatives which will help the growth, expansion and facilitation of MSMEs across the country. The Prime Minister said that there are five key aspects for facilitating the MSME sector. These include access to credit, access to market, technology upgradation, ease of doing business, and a sense of security for employees.     For the convenience of the exporters,  the important points are highlighted as follows:     1 Launch of 59-minute loan portal (https://www.psbloansin59minutes.com)  for sanction of up to Rs 1 crore for small and medium enterprises.     2 GST-registered MSMEs will get 2 per cent rebate on an incremental loan of up to Rs 1 crore.     3 Increase in  interest Subvention on pre and post shipment credit for exports by MSMEs from 3 per cent to 5 per cent.   4 Mandatory that all the companies with a turnover of more than Rs 500 crore will have to join TReDS platform, that is Trade Receivables e- Discounting System, so that MSMEs doesn’t face trouble in cash flow.   5. Mandatory sourcing by PSUs from MSMEs increased to 25 per cent from the previous limit of 20 per cent.   6. Government companies to buy at least 3 per cent of their purchases from women entrepreneurs.   7. Mandatory for the companies to take GeM (Government e-Marketplace) membership now. Not only this, but the companies will now register its all MSME vendors on this platform, which will also benefit the MSME.   8.   Regarding  technological upgradation, 20 hubs will be formed across the country and 100 spokes in the form of tool rooms will be established.   9.  Announced MSME sector’s ease of doing business to pharma companies. Clusters will be formed of pharma MSMEs. He said 70 percent cost of establishing these clusters will be borne by the Union Government.   10. Now the establishments to be visited by an Inspector will be decided through a computerised random allotment.   11. Environmental Clearances: As  part of establishing a unit, an entrepreneur needs two clearances namely, environmental clearance and consent to establish. Now both these have been merged as a single consent. Further,  the return will be accepted through self-certification.   12. An Ordinance has been brought, under which, for minor violations under the Companies Act, the entrepreneur will no longer have to approach the Courts, but can correct them through simple procedures.   Members are requested to take note of the same above announcement which are meant to boost MSME sector.  Further notifications for above announcements shall be conveyed to you in due course. In the interim, members may refer to the PIB release for this program: http://pib.nic.in/PressReleseDetail.aspx?PRID=1551771     Thanking You,   Yours faithfully,   ( S.G. BHARADI ) EXECUTIVE DIRECTOR CHEMEXCIL