For the last couple of days, union FM has been holding review meetings. Initially, to check the pending Micro, Small, and Medium Enterprises payments. Finance Minister Nirmala Sitharaman said, “I am personally monitoring and assisting in the case.” MSME registration portal is open to all MSMEs. In this article, we will discuss Government committed to clear MSME dues within 45 days.
The government committed to clear MSME dues within 45 days
• Micro, Small, and Medium Enterprises act as a supporting pillar in nation-building. They boost economic strength.
• MSMEs are responsible for employing more than 11 crores of the Indian population. They furnish 29 percent to the country’s Gross Domestic Product (GDP).
Government’s relief strategy for pandemic stricken MSMEs
• Government ordered to clear all dues to provide relief to MSMEs in the pandemic situation.
• RBI has proclaimed significant long-term repo operations (SLTRO) of 10,000 crore rupees for three continuous years. Order is explicitly issued to support MSMEs and other public sectors.
• Likewise, a new facility of fresh lendings has been declared. Moreover, it states the utilization of funds for new lendings. Allowed up to rupees 10 lakhs per borrower. The scheme is valid up to October 31, 2021.
Further Information by Finance Ministry
On Monday, Sitharaman was talking about the Goods and Service Tax in the Lok Sabha. Despite this, she gave assurance regarding the central government’s proclamation. Furthermore, she said, “The GST council has to take the final decision regarding the MSME payments. The MSMEs will receive their pending payments before the deadline. The deadline set by the central government is 45 days, consequently engaged in a year’s (2020) deep study of central government and its various departments.
State as well Central undertakings
All sorts of central as well as state dues, including public sector undertakings. Additionally, it includes both state-owned and private. Pending dues from the time of pandemic come under this statement.
Benefits of MSMEs and other public sectors
• In last week’s Rajya Sabha session, MSME minister Narayan Rane said, “Approximately 1.09 crore MSME lenders have been furnished with guaranteed support. It worths Rs 2.73 lakh crore as of July 2, 2021, as per the Emergency Credit Line Guarantee Scheme (ECLGS).
• In addition, a 100 percent government backup guarantee is ensured. It includes an emergency credit line of up to 4.5 lakh crore to various businesses, including MSMEs.
• MSME loan accounts with a compound amount of ₹55,333 crores. Certainly have been recast by public sector banks till June 25, 2021.
• 6,97,612 units have been set up (including those by farmers) with a margin money subsidy of worth rupees 16,688.17 crores till July 9. Data stated applies since the commencement of the Prime Minister’s Employment Generation Programme,
Fostering the use of digital platforms with a speedy auction mechanism
• Government is encouraging the use of the digital platform from where the MSME payments can be deducted.
• Accordingly platform devised is Trade Receivables Discounting System (TReDS). • Deduction of invoices/bills of exchange of MSME sellers against massive corporate firms.
• It includes central and state government departments with public sector undertakings.
• Technique of auction has been finalized for proper functioning. Especially to safeguard swift receivables at competitive market rates.
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