1. BENEFITS TO MSME
1. Central Government reserved three hundred fifty (350) items for purchase from MSMEs, under the Government Stores Purchase Programme.
2. MSE sector now has greater access to credit as a result of its classification as a priority lending sector. The banks are required to compulsorily ensure that specified percentage of their overall lending is made to priority sectors.
2. SME Division Scheme
3. Scheme for ‘Marketing Assistance and Technology Up-gradation of MSMEs’- an NMCP Scheme – Provide marketing platform to manufacturing MSMEs through enabling their participation in State/ District level exhibitions being organized by State/District Authorities/Associations.
Reimbursement of 50% of to and from actual fare by shortest distance/direct train (limited to AC II tier class) from the nearest railway station/bus fare to the place of exhibition and 50% space rental charges for MSMEs (General category entrepreneurs).
4. Reimbursement of registration fee for Bar coding – The financial assistance is provided towards 75% reimbursement of only one-time registration fee and 75% of annual recurring fee for first three years paid by MSEs to GS1 India for using of Bar Coding
5. Funding support for ‘Product Certifications. – The objective is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National Standardization Bodies or International Product Certifications.
6. Loan related assistance to women. – Mudra Yojana Scheme, TREAD (Trade Related Entrepreneurship Assistance and Development) scheme, Mahila Udyam Nidhi Scheme, Annapurna Scheme…etc
7. Fewer Electricity Bills – This concession is available to all the Enterprises that have the MSME Registration Certificate by providing an application to the department of the electricity along with the certificate of registration by MSME.
8. Protection against Payments (Delayed Payments)
9. Benefits to MSME Disclosure requirements of unpaid dues to MSME
10. CGTMSE Credit Guarantee Trust for Micro and Small Enterprise
REVISED MSME CLASSIFICATION
|< Rs. 1 Crore
< Rs. 5 Crore
|< Rs. 10 Crore
< Rs. 50 Crore
|< Rs. 50 Crore
< Rs. 250 Crore
As part of new definition, Exports will not be counted in turnover for any enterprises whether micro, small or medium.
Atmanirbhar Bharath Abhiyan
1. Loans to promoters of NPA accounts
2. Purchase of 15% equity
3. No global tenders upto Rs.200Cr.
4. e-market linkage
To manage all the benefits mentioned above, a new ICT based system called CHAMPIONS has been launched. The portal is not only helping and handholding MSMEs in the present situation, but is also providing guidance to grab the new business opportunities in the long run, become national and international Champions.
Detailed objectives of CHAMPIONS:
Benefits offered to MSME by RBI:
Priority sector lending include only those sectors as part of the priority sector, that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises. Detailed guidelines on Priority sector lending are available in our Master Direction on Priority sector lending no. FIDD.CO.Plan.1/04.09.01/2016-17 dated July 7, 2016
1. Interest Subvention Scheme – GST registered MSMEs can get 2% interest subvention from Government for incremental loans of Rs 1 crores under the MSME Credit Scheme. SIDBI has been nominated as the nodal agency. Operational guidelines issued. SIDBI has written to all the Scheduled Commercial Banks and NBFCs to operationalize the order. Launch of 59-minute loan portal to enable easy access to credit for MSMEs. In-principle approval of loans up to Rs. 1 crore through the portal. Portal link through GST portal.
2. Increase in interest rebate from 3% to 5% for exporters who receive loans in the pre-shipment and post-shipment period
Trade Receivables Discounting System (TReDS)
In terms of our circular RPCD.SME&NFS.BC.No.79/06.02.31/2009-10 dated May 6, 2010, banks are mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the MSE sector
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. The observations of the author are personal views and the authors do not take responsibility for the same and this cannot be quoted before any authority without the written permission of the Author.
|Atma Nirbhar Bharat: Part-1: Businesses including MSMEs||Text of Press Release by FM on 13th May 2020|
|Atma Nirbhar Bharat: Part-2: Poor, including migrants and farmers||Text of Press Release by FM on 14th May 2020|
|Atma Nirbhar Bharat: Part-3 – Agriculture||Text of Press Release by FM on 15th May 2020|
|Atma Nirbhar Bharat Part-4: New Horizons of Growth||Text of Press Release by FM on 16th May 2020|
|Atma Nirbhar Bharat- Part-5: Government Reforms and Enablers||Text of Press Release by FM on 17th May 2020|