Year 2017 for MSME Ministry: A Review

Ministry of Micro, Small & Medium Enterprises (MSME) envisions a vibrant MSME Sector by promoting growth and development of the MSME Sector, including Khadi, Village and Coir Industries, in cooperation with the concerned Ministries/Departments, State Governments and other Stakeholders, through providing support to existing enterprises and encouraging setting-up of new enterprises.

The year 2017 has been very significant for the Ministry of MSME during which it took various initiatives to promote MSME Sector including launching of Digital MSME Scheme, augmented the package for supporting MSEs, took various initiatives to support MSMEs in the backdrop of demonetization, work started to establish Technology Centers in eight cities, launched MSME Delayed Payment Portal and Public Procurement Portal among others.

The Major Initiatives of the Ministry during this year are mentioned below:

Digital MSME Scheme launched:

The Digital MSME Scheme is revolving around Cloud Computing which is emerging as a cost effective and viable alternative in comparison to in-house IT infrastructure installed by MSMEs. In Cloud Computing, MSMEs use the internet to access common as well as tailor-made IT infrastructure including software for managing their business processes. Cloud Computing is free from the burden of investment on hardware/software and infrastructural facilities. This Scheme would encourage MSMEs towards this new approach i.e. Cloud Computing for ICT adoption.

Package for supporting Micro and Small Enterprises (MSEs) approved – Corpus of Credit Guarantee Trust Fund for Micro, and Small Enterprises (CGTMSE) augmented:

1. Corpus of the Trust augmented from Rs. 2,500 crore to Rs. 7,500 crore and will be fully funded by the Government of India.

2. Coverage of the loans covered under the Credit Guarantee Scheme from Rs.1 crore to Rs.2 crore increased.

3. Coverage of the Credit Guarantee Scheme for loans being extended to Micro and Small Enterprises by NBFCs.

Package for supporting Micro and Small Enterprises (MSEs) approved – Corpus of Credit Guarantee Trust Fund for Micro, and Small Enterprises (CGTMSE) augmented:

1. Corpus of the Trust augmented from Rs. 2,500 crore to Rs. 7,500 crore and will be fully funded by the Government of India.
2. Coverage of the loans covered under the Credit Guarantee Scheme from Rs.1 crore to Rs.2 crore increased.
3. Coverage of the Credit Guarantee Scheme for loans being extended to Micro and Small Enterprises by NBFCs increased

Initiatives taken for MSMEs in the backdrop of Demonization:

1. The coverage of the loans covered under the Credit Guarantee Scheme for MSEs implemented by CGTMSE has been increased from Rs. 1 crore to Rs. 2 crore
2. The credit Guarantee scheme has also been extended for loans given to MSMEs by NBFCs.
3. Department of Financial Services (DFS), Ministry of Finance has issued an advisory to Banks regarding raising of working capital/cash credit limit for MSEs.

Technology Centres are being established in 8 cities viz., Puducherry, Visakhapatnam,  Rohtak, Durg,  Baddi, Bhiwadi, Bengaluru and Sitarganj

MSME Delayed Payment Portal – MSME Samadhaanhttp://samadhaan.msme.gov.in launched:

This Portal will empower Micro and Small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries/Departments/CPSEs/State Governments.  The Portal will give information about the pending payment of MSEs with individual CPSEs / Central Ministries, State Governments, etc.  The CEOs of PSEs and the Secretary of the Ministries concerned will also be able to monitor the cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues.  The Portal will greatly facilitate the monitoring of the delayed payment in a more effective manner.  The information on the Portal will be available in public domain, thus exerting moral pressure on the defaulting organizations.  The MSEs will also be empowered to access the Portal and monitor their cases.

Public Procurement Portal for MSEs – MSME Sambandh htttp://sambandh.msme.gov.inlaunched:

The Portal will help in monitoring the implementation of the Public Procurement from MSEs by Central Public Sector Enterprises(CPSEs).  Using this Online Portal, the Ministries and CPSEs can assess their performance.

MOU signed between India and United Arab Emirates (UAE) for co-operation in the field of Small and Medium Enterprises and Innovation:

The MoU would benefit Indian SMEs and lead to equitable and inclusive development.  The exposure to best practices in SME sector abroad would provide an opportunity to Indian SMEs to improve upon them and innovate further.  It would also provide to Indian SME sector an opportunity to have a mutually beneficial relation with SME sector of the United Arab Emirates and to explore their markets.