PM Narendra Modi announces service to sanction loans for small businesses within 59 minutes
The prime minister launched the Micro, Small and Medium Enterprises Support and Outreach programme at the Vigyan Bhavan in New Delhi.
Prime Minister Narendra Modi on Friday announced a service that will allow micro, small and medium enterprises to get loans up to Rs 1 crore within 59 minutes. The prime minister made the announcement at the launch of the Micro, Small and Medium Enterprises Support and Outreach at the Vigyan Bhavan in New Delhi.
Modi also announced a 2% rebate on incremental loans up to Rs 1 crore to GST-registered Micro, Small and Medium Enterprises. He said the sector is the second biggest employer in India, after agriculture.
The prime minister also said that companies with a turnover of over Rs 500 crore will have to come under Trade Receivables e-Discounting system – a digital platform where small businesses can auction their trade receivables to raise capital.
The Bharatiya Janata Party-led government organised events at 100 locations across the country to launch the support and outreach service for small businesses, all of which were connected to the main event in Delhi.
Modi told those gathered that his administration had prioritised access to funds, loans and low interest rates, improving e-commerce transactions, ease of doing business, and a sense of security among employees.
The prime minister said India is “shining like a bright spot in the global economy”. Modi said the world has its eyes on the new India’s progress and that the nation is now at the centre of international business discussions. “The new India has the power to prove its resolve, and has the potential to fulfil the aspirations of its 130 million citizens,” he added.
He said factory inspectors will no longer be given a free-hand as inspections will be sanctioned through a computerised random allotment. “No inspector can now go anywhere. He will be asked why he went to a factory,” Modi said. Inspectors will have to submit their reports on the portal within 48 hours.
The BJP administration has also decided to relax environmental rules by reducing air and water clearances for micro, small and medium enterprises to a single procedure. Establishing a factory will also require a single consent.
Modi said Public Sector Companies will now have to source 25% instead of the mandatory 20% in annual procurement from Micro, Small and Medium Enterprises. The prime minister said PSUs need to ensure that 3% of the procurement is from women-run MSMEs.
He sanctioned Rs 6,000 crore for technology upgradation through 20 hubs and 100 tool rooms.
Modi praised his administration’s performance on the World Bank’s Ease of Doing Business index. On Wednesday, India jumped 23 spots to rank 77 out of 190 nations on the index.