Govt considering support measures for the MSME sector seems to be giving hope to many businesses having MSME Registration.
According to the people, The second Covid-19 wave impacted the MSME sector hard while it was recuperating from the previous wave’s devastation. In this article, we will read about the statements of government officials considering the support measures for those having MSME Registration.
Measures for the MSME Sector under consideration by the government
As we know, due to the lockdown, many micros, small, and medium enterprises (MSMEs) are experiencing serious business losses.
Therefore, the government is exploring multiple solutions, including liquidity support, lighter compliance rules, and tax exemption on online transactions.
However, figuring out details of support measures is under process.
Govt considering support measures for the MSME
According to the officials, small businesses are suffering since their operating cash is blocked. Experts estimate that at least ₹15,000 crores worth is pending.
Providing liquidity assistance by broadening the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) and releasing delayed payments are the two primary considerations by the government.
Furthermore, the government says about 50 percent of the pending payment is stuck with public sector firms.
Emergency Credit Line Guarantee Scheme (ECLGS) by Govt
As we know, The Rs. 3 lakh crore ECLGS is one of the primary components of the Rs. 20 lakh crore economic stimulus package launched in May.
Consequently, it provided small businesses with additional working wealth in the form of a readily accessible credit facility.
Furthermore, It was extended until June 30 by the Centre on March 31.
However, the industry wants it prolonged till March 31, 2022, with an extra corpus of Rs. 3 lakh crore as per the government officials.
Govt considering support measures for the MSME Sector by providing online solutions
To slow the second wave, the majority of the country is still under lockdown. That’s why government officials believe that MSME’s should promote and do online business.
Furthermore, the difference between essential and non-essential goods and services online might need reconsideration.
However, the focus should also be on safe delivery to give MSMEs access to a larger online marketplace.
What is MSME Registration or Udyam Registration?
It is important to note that MSME Registration and Udyam Registration are the same. MSME Registration is the government scheme if someone wants to avail benefits from the Central or State Government and the Banking Sector.
Udyam Registration provides several benefits. For instance, the low-Interest rate on loans, faster loans, Credit Support Schemes, the low registration fee for Trademark Registration, etc.
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