MSMEs can get loans in 59 minutes

“There are five key aspects for facilitating the MSME sector,” he said. “These include access to credit, access to market, technology upgradation, ease of doing business, and a sense of security for employees. As a Diwali gift for the sector, the 12 announcements will address each of these five categories.”

According to Mr. Modi, all companies with a turnover of more than Rs. 500 crore must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS).

“Joining this portal will enable entrepreneurs to access credit from banks, based on their upcoming receivables,” he said. “This will resolve their problems of cash cycle.”

More than 1.5 lakh suppliers, he said, had now registered on the government e-marketplace (GeM), out of which 40,000 are MSMEs, and that transactions worth more than Rs. 14,000 crore had been made so far through the GeM. He further announced that all central public sector undertakings must now compulsorily be a part of GeM.

On technological upgradation, the Prime Minister said 20 tool hubs would be formed across the country, and 100 spokes in the form of tool rooms would be established.

The other measures announced were establishing clusters of pharma MSMEs, the easing of return filing, the allotment of inspectors for routine inspections of factory units, the merging of air and water pollution permits, and the simplification of the process to address minor violations under the Companies Act.

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