Govt includes retail and wholesale trade under MSME category

Our Bureau New Delhi | Updated on July 22, 2021

Narayan Rane, former CM, Maharashtra

Narayan Rane, Minister for MSME, has in a written reply informed in the Lok Sabha.

The Government has included Retail and Wholesale Trade under the Micro Small and Medium Enterprises (MSMEs) category from July 2, 2021.

This was stated by Minister for Micro. Small and Medium Enterprises Narayan Rane in a written reply in the Lok Sabha on Thursday.

“With the introduction of new classification of MSMEs with effect from July 1, 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 (UAM”, the minister added.

The Government has launched the Credit Guarantee Scheme (CGS) to strengthen the credit delivery system and facilitate the flow of credit to the MSME sector without collateral and third-party guarantee. Under the scheme, Credit Guarantee is given to the Member Lending Institutions (MLIs) for loans up to ₹200 lakh. As per the data received from Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Mumbai, there are 53,86,739 numbers of guarantee and ₹ 2,72,007.42 crore amount of guarantee approved under Credit Guarantee Scheme since inception.

Meanwhile, the minister in a written reply in the Lok Sabha, also said that MSMEs could avail the benefits of schemes such as Prime Minister’s Employment Generation Programme (PMEGP)/Rural Employment Generation Programme (REGP)/Micro Units Development & Refinance Agency (MUDRA) and the announcements made to provide relief to MSMEs from the problems faced due to Covid-19 pandemic. The number of projects and employment generation under PMEGP during 2020-21 in July 2021 are 91,054 and 7,28,432, respectively.

A number of schemes are being implemented by Ministry for MSMEs, including Prime Minister’s Employment Generation Programme (PMEGP), Credit Linked Capital Subsidy for Technology Upgradation Scheme (CLCS-TUS), Schemes for Khadi and Village Industries and Coir, International Cooperation Scheme, Procurement and Marketing Support Scheme, Scheme for Credit Guarantee Fund for Micro and Small Enterprises, National SC/ST Hub etc. Benefits under these schemes are available to all eligible MSMEs, including those belonging to SC and ST communities. The Public Procurement Policy for Micro and Small Enterprises Order 2012 mandates 4 per cent procurement from SC/ST owned MSEs and 3 per cent from women owned MSEs, the minister added.

Published on July 22, 2021

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