India’s Prime Minister Narendra Modi has announced a number of measures and services for the people of our country including the most interesting and valuable one under which, the small and medium enterprises will be able to sanction loans of up to Rs 1 crore in just 59 minutes through a special portal.
This has basically been done to give a boost to the nation’s second-biggest employing sector. For a long time, the Prime minister has been looking upon and taking efforts for the startups of our country and he has launched yet another measure that will be really helpful for the small businesses.
The programme was unveiled as part of 12 new decisions to aid the sector which, the PM said, were like “Diwali gifts for MSMEs”. “As we speak, somewhere in the country your entrepreneurial brother or sister is getting a loan… sanctioned in just 59 minutes,” PM Modi said. “Think, only 59 minutes. Just 59 minutes.”
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— PMO India (@PMOIndia) November 3, 2018
The basic requirement of this is that the enterprises should be GST registered. Along with this, GST-registered MSMEs will get 2 per cent interest subvention or rebate on the incremental loan of up to Rs 1 crore. Along with this, it also included measures to increase the share of small and medium industries in total government procurement from 20 to 25%.
Modi has been taking several important steps for the development of businesses of our nation and under this, interest subvention on pre and post shipment credit for exports by MSMEs has also been increased from 3 percent to 5 percent.
Apart from this, the other measures that were announced included an increase in the share of small and medium industries in government procurement from 20 to 25 percent. He also announced a 2 percent interest relief on loans up to Rs. 1 crore for small businesses that file GST (Goods and Services Tax) returns. Also, the inspections of factories in the sector will be sanctioned only through a computerized random allotment and inspectors will have to upload reports on portal within 48 hours.
“No inspector can now go anywhere. He will be asked why he went to a factory,” he said.
Easing compliance with environmental rules, MSMEs will need single air and water clearance and just one consent to establish a factory.