The Revival Of Pharma MSMES

Effective implementation of the recently launched MSME Support and Outreach Programme could prove to be the catalyst for the sector's progress

- Swati Rana

The Modi government recently launched theMSME Support and Outreach Programme to boost the growth of the sector in India. Under the programme, the government has made various announcements and deliverables that focus on access to credit, access to market, hand holding and facilitation support measures etc. for the MSME sector.

The 12 point agenda With the launch of the programme, the government has also announced 12 point agenda for MSMEs. In its announcement, Prime Minister Narendra Modi said, “To resolve the issue of cash cycle in MSMEs, all companies with a turnover more than 500 crores, 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.”

1) Launch of 59-minute loan portal to enable easy access to credit for MSMEs. In principle approval of loans upto 1 crore through the portal. Portal link through GST portal.

2) Two per cent interest subvention for all GST registered MSMEs, on fresh or incremental loans. Increase in interest rebate from three to five per cent for exporters who receive loans in the pre-shipment and post-shipment period.

3) Companies with turnover more than 500 crores to be compulsorily brought on the Trade Receivables e-Discounting System (TReDS) to enable entrepreneurs to access credit, based on upcoming receivables.

4) Central Public Sector Undertaking (CPSUs) units to make mandatory procurement of 25 per cent instead of 205 from MSMEs.

5) CPSUs to make mandatory procurement of three per cent from women entrepreneurs out of 25 per cent mandatory procurement.

6) CPSUs to compulsorily be part of Public Procurement Portal GeM- Government e-Marketplace. CPSUs to get their vendors registered on GeM portal.