Over 95000 Udyog Aadhar
Memorandums for ease of doing Business filed within a Short Period of 3 Months
Aspire Scheme Launched to Promote
Rural Entrepreneurship
During the year 2015,
Ministry of MSME launched various initiatives to improve the ease of doing
business and to make Micro, Small and Medium Enterprises more globally
competitive. These initiatives include ease of registration of the business in
the form of Udyog Aadhar Memorandum, Framework to revive sick MSMEs, promoting
innovation in rural entrepreneurship through ASPIRE scheme, fund for
regenerating traditional industries, financial support in the form of credit
guarantee and credit linked capital subsidy. Some of the programmes launched
during the year include
Udyog
Aadhaar Memorandum (UAM)
The Ministry in September-2015
under the MSME Development Act, 2006 has notified that every MSME unit shall
file Udyog Aadhaar Memorandum (UAM). This is a path
breaking step to promote ease-of-doing-business for MSMEs in India as the UAM
replaces the filing of Entrepreneurs’ Memorandum (EM part-I & II) with the
respective States/UTs. While some of the States/UTs had made the process
online, either by themselves or through the portal created by this Ministry,
several States/ UTs were still relying on the manual way of filing EM. The
cumbersome filing of EM has now been dispensed with and the entrepreneurs in
the MSME sector just need to file online, a simple one-page UAM on http://udyogaadhaar.gov.in to instantly
get a unique Udyog Aadhaar Number (UAN). The information sought is on self-certification basis and
no supporting documents are required at the time of online filing of UAM.
The Union Minister
for Micro, Small and Medium Enterprises, Shri Kalraj Mishra
address a press conference on “Udyog Aadhar Memorandum” a simplified
registration format for MSMEs, in New Delhi on October 06, 2015. The Secretary,
Ministry of Micro, Small & Medium Enterprises and Steel, Dr. Anup K. Pujari
and the Director General (M&C), Press Information Bureau, Shri A.P. Frank
Noronha are also seen.
The UAM can be filed online by
individuals themselves in case they have an Aadhaar Number. However, in all exceptional
cases, including those of not having an Aadhaar Number, the UAM can be filed in
offline mode (i.e. on paper form), with the General Manager (GM) of the
concerned District Industries Centre (DIC).
The UAM has emerged from the
vision of Honorable Prime Minister of India shared with the Nation through
“Mann Ki Baat” telecast on 03-10-2014 and the recommendations for
Universalization of Registration in the Report of the Kamath Committee on
Financial Architecture of MSME sector. Wide-ranging consultation exercise has
been done in the matter in the National Board of MSMEs and the Advisory
Committee for MSME Act. It is expected that this simplified one-page
memorandum to be filed online shall unlock the potential of MSMEs, besides
improving our international ranking in Doing Business Index. Within a short
time of three months, more than 95,650 UAMs have been filed in the country.
Framework
for Revival and Rehabilitation of MSMEs
The
existing mechanism for addressing revival, rehabilitation and exit of small
enterprises is very weak in the country. The most recent Doing Business (DB)
Report ranks India 137 out of the 189 economies for resolving insolvencies. It
notes that resolving insolvency takes 4.3 years on average and costs 9.0% of
the debtor’s estate, with the most likely outcome being that the company will
be sold as piecemeal sale.
Pending
a detailed revision of the legal framework for resolving insolvency/bankruptcy,
there was a felt need for special dispensation for revival and exit of MSMEs.
The MSMEs facing insolvency/bankruptcy need to be provided legal opportunities
to revive their units. This could be through a scheme for re-organization and
rehabilitation, which balances the interests of the creditors and debtors.
a
Framework for Revival and Rehabilitation of MSMEs has thus been notified in
May-2015 under section 9 of the Micro, Small and Medium Enterprises Development
Act, 2006. The salient features of the same are as follows:
·
Identification
of incipient stress
·
Committees
for Distressed Micro, Small and Medium Enterprises
·
Corrective
Action Plan (CAP) by the Committee with various Options
·
Restructuring
Process
·
Prudential
Norms on Asset Classification and Provisioning
·
Identification
of Willful Defaulters and Non-Cooperative Borrowers
Prime
Minister’s Employment Generation Programme (PMEGP)
PMEGP
is the flagship programme of the government offering credit linked subsidy to
establish new enterprises for generating continuous and sustainable employment
opportunities in Rural and Urban areas of the country.
Ø
Rs. 860.51
crore has been released by the Ministry as margin money under PMEGP out of
which Rs. 528.32 crore has already been disbursed by the banks.
Ø
24126 new
enterprises providing employment to 170983 persons have been benefited under
the Scheme.
Ø
There is more
than 50% increase over the previous year in terms of funds disbursed by the
banks, no of projects with funds disbursed and the employment generated.
A
Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE)
ASPIRE has been launched on 16.03.2015
with an objective to set up a network of technology centers, incubation centres
to accelerate entrepreneurship and also to promote start-ups for innovation and
entrepreneurship in rural and agriculture based industry with a fund of Rs.210
crores.
Ø
The planned
outcomes of ASPIRE are setting up Technology Business Incubators (TBI),
Livelihood Business Incubators (LBI) and creation of a Fund of Funds for such
initiatives with SIDBI.
Ø
1st
LBI set up in April-2015 under ASPIRE within a month of launching the Scheme. The first batch of 107 youth has
been trained and skilled through it.
Ø
19 LBIs have
been approved till September 2015 and another 9 LBIs & 2 TBI is ready to be
approved.
Scheme
of Fund for Regeneration of Traditional Industries (SFURTI)
The
objectives SFURTI is to organize the traditional industries and artisans into
clusters to make them competitive and provide support for their long term
sustainability by way of enhancing the marketability of products, improving the
skills of artisans, making provision for common facilities and strengthening
the cluster governance systems.
Ø The Scheme guidelines of SFURTI
have been revamped in 2015 and the Scheme has taken giant strides in 2015.
Funds to the tune of Rs.62 Crore have been sanctioned under the Scheme in 2015
as against Nil in 2014.
Ø 68 clusters have already been
approved in 2015 itself against the target of 71 clusters during 12th
Plan period with more than a year of the plan period to spare.
The Union Minister
for Micro, Small and Medium Enterprises, Shri Kalraj Mishra
addressing at the inauguration of the National Level Workshop on Revamped
SFURTI, in New Delhi on March 22, 2015.
Lean
Manufacturing Competitiveness Scheme (LMCS)
LMCS
is being implemented across the country to enhance the competitiveness of
manufacturing MSMEs. The Objective of the Scheme is to enhance the
manufacturing competitiveness of MSMEs through application of various Lean
Manufacturing Techniques (e.g. Total Productive Maintenance (TPM), 5S, Visual
control, Standard Operation Procedures, Single Minutes Exchange of Dies or
Quick Changeover (SMED), Value Stream Mapping, Just in Time, Kanban System,
Kaizen, Cellular Layout, Poka Yoke).
Ø 188 New Clusters identified and
selected for LM (Lean manufacturing) interventions.
Ø Lean manufacturing Interventions
have been initiated in 359 Units.
Ø
Organised 63
Awareness Programmes across the country.
Credit
Guarantee Trust Fust for Micro and CGTMSE Scheme
CGTMSE
was set up to strengthen credit delivery system and facilitate flow of credit
to the MSE sector. The Credit Guarantee under CGTMSE seeks to reassure the
lender that, in the event of a MSE unit, which availed collateral free credit
facilities, fails to discharge its liabilities to the lender; the CGMSE would
make good the loss incurred by the lender up to 85 per cent of the credit
facility.
Ø
During the
current financial year (April to October 2015), total number of proposals
approved under the scheme was 2,31,774 involving a guarantee amount of
Rs.11,446 crore.
Credit
Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation
CLCSS
aims at facilitating technology upgradation of Micro and Small Enterprises
(MSEs) by providing 15% capital subsidy (limited to maximum Rs.15 lakhs) for
purchase of Plant & Machinery. Maximum limit of eligible loan for
calculation of subsidy under the scheme is Rs.100 lakhs. Presently, more than
1500 well established/improved technologies under 51 sub-sectors have been
approved under the Scheme.
Ø
During the
current financial year (April to October 2015), 1,195 units benefitted and
total subsidy released to the tune of Rs. 75.57 crore.
***
AK