New Delhi, August 23, 2014 – To simplify the process of setting up new enterprises, all States will have an online registration system for MSMEs in the next two months, Madhav Lal, Secretary, Medium, Small and Micro Enterprises Ministry said on Friday.
There will be a single registration form, as opposed to eight regulatory forms and six other forms related to tax, pollution certification, etc, that aspiring entrepreneurs need to fill in at present, the Ministry said at the first meeting of State MSME Ministers and Secretaries since the Narendra Modi Government took over.
Business ease
The meeting was called to discuss ways to enhance the ‘ease of doing business,’ as well as boost entrepreneurship and skill development. The sector, for which Finance Minister Arun Jaitley announced a corpus of Rs.10,000 crore to attract private capital, is among the key focus areas of the Government.
Most State Ministers blamed ‘non-cooperation’ by banks as the key hurdle for the sector’s growth and sought Central assistance. “The small scale industry is in deep trouble in our State, leading to lot of job losses, especially in cottage industries,” said Andhra Pradesh’s Minister, adding that about 64,000 units had closed down.
Fund Scheme
Ministers from Bihar, Odisha, Uttar Pradesh, Uttarakhand, Punjab, Telangana, Goa, Manipur, Nagaland, Mizoram and Arunahcal Pradesh also sought more Central assistance as also a need for a ‘new vibrant MSME policy.” “Symbolic discussions are not enough,” said Odisha’s Minister J Behera, urging the Centre to clear all pending proposals from States on cluster development.
Welcoming the State Ministers and Secretaries, the MSME Minister Kalraj Mishra said under the Credit Guarantee Fund Scheme, every year collateral free loans of RS.20,000 crore are provided to about 14,000 entrepreneurs. “Kerala and Chhattisgarh have taken a lead in this aspect,” he said urging other States to set up a mechanism for new entrepreneurs. “If the States provide Rs.100 crore for this, a collateral free loan of Rs.1,000 crore can be made available through all banks,” he said.
For infrastructure needs, Mishra said over 40,000 industrial plots were lying vacant in the country and over 20,000 plots were lying vacant in Special Economic Zones. “We can succeed in setting up millions of new enterprises on these vacant plots by formulating appropriate policy,” he added.
Business Line
