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Centre includes retail, wholesale trades under MSMEs category

The MSME Minister said that the government had notified the composite criteria of classification of MSMEs based on investment in plant and machinery or equipment and turnover of the enterprise

Minister for Micro, Small and Medium Enterprises Narayan Rane (Source: PTI) Minister for Micro, Small and Medium Enterprises Narayan Rane (Source: PTI)

Minister for Micro, Small and Medium Enterprises Narayan Rane, in a written reply in the Lok Sabha on Thursday, stated that the Centre has included retail and wholesale trades under the MSMEs category from July 2, 2021, onwards. He added that the government had notified the composite criteria of classification of MSMEs based on investment in plant and machinery or equipment and turnover of the enterprise.

"With the introduction of new classification of MSMEs with effect from 01.07.2020, a new cost - free  system  of  online Udyam Registration which is based on self-declaration, has replaced the erstwhile filing of Udyog Aadhaar Memorandum," Rane wrote in the reply. Filing of Udyog Aadhaar Memorandum (UAM) or Udyam Registration is necessary for availing benefits of the schemes and programmes of the Ministry of MSME.

Rane explained that the Centre has launched the Credit Guarantee Scheme (CGS) to strengthen the credit delivery system and facilitate the flow of credit to the MSE sector without the hassles of collateral and third-party guarantee.

Under CGS, Credit Guarantee is given to the Member Lending Institutions (MLIs) for loans up to Rs 2 crore. The number of guarantees is 53,86,739. Also, Rs. 2,72,007.42 crore amount of guarantee has been approved under CGS since its inception, according to data received from Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mumbai.

The Minister added that to strengthen the economy and to provide help to upcoming entrepreneurs, the centre has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector, especially during the COVID-19 pandemic. Rane listed some of these initiatives. These were:

  • Rs 20,000 crore Subordinate Debt for MSMEs
  • Rs 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
  • Rs 50,000 crore equity infusion through MSME Self-Reliant India Fund
  • New Revised criteria of classification of MSMEs.
  • New Registration of MSMEs through 'Udyam Registration' for Ease of Doing Business.
  • No global tenders for procurement up to Rs 200 crore

The MSME Minister added that an online portal "champions" was launched by Prime Minister Narendra Modi on June 1, 2020. This portal covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.

Rane also stated that the Reserve Bank of India has also announced several measures to reduce the financial stress put on MSMEs in the country.

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