Importance of MSME Registration In Self Reliant India

Keeping  in view of Indian Prime Minister’s Vision of Self Reliant India Movement a special package to cater MSMEs, labourers, middle class and for some industries.

Following steps are taken for MSMEs Businesses In India:

1. INR 3, 00,000 Crore Collateral Free Automatic Loans for Businesses including MSMEs:

• Businesses/MSMEs have been badly hit due to COVID-19. The Additional funds to meet expenses to re-start the businesses and to buy raw material for further processing in manufacturing units.
• Borrowers with up to INR 25 crore outstanding and INR 100 crore turnover eligible.
• Loans of 4 year tenure with moratorium of 12 Months on Principal Repayment.
• Interest to be capped
• 100% credit guarantee cover to Banks and NBFCs on principal and interest.
• Scheme can be availed till 31^st Oct, 2020.
• No guarantee fee, no fresh collateral.

2. INR 20,000 Crore subordinate Debt for MSMEs:

• Stressed MSMEs need equity support.
• Eligibility: Functioning MSMEs which are NPA or are stressed will be eligible.
• Way to Avail This Facility: Promoters of MSME will be given debt by banks, which will then be infused by promoter as Equity in the Unit.

3. INR 50,000 Crore Equity Infusion through MSME Fund of Funds:

• Will provide equity funding for MSMEs with growth potential and viability.
• MSMEs face severe shortage of Equity.
• Will provide equity funding for MSMEs with growth potential and viability.
• Will encourage MSMEs to get listed on main stock exchanges.

4. New Definition of MSMEs:

Composite Criteria: Investment and Annual Turnover

5. Global Tender to be disallowed up to INR 200 crores:

• Global tenders will be disallowed in government procurement tenders up to INR 200 crores.
• Necessary amendments of General Financial Rules will be effected.
• This will help towards a self-reliant India and support Make in India.
• This will help MSMEs to increase their business and remove unfair competition from foreign companies.

6. Other Interventions for MSMEs:

• E-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.
• MSME receivables from Government and CPSEs to be released in 45 days.
• Fintech will be used to enhance transactions based lending using the data generated by the e-marketplace.

In nutshell, to avail the benefits of Government policies and to revive or boost your business plan in India, get your business MSME Registration.

You can get MSME Registration done under ease of doing business policy of Government hassle free while sitting at home. Admist COVID-19 it is also important to stay at home and be safe and healthy.

For more information or clarification you can write us on msdassociates19@gmail.com or Call us on 8375877464.