Laghu Udyog Bharati – TN thanks the Finance Minister Nirmala Sitharaman, for a very progressive, tech-oriented and transformational budget for the development and growth of micro, small & medium enterprises.
Laghu Udyog Bharati – TN thanks the Finance Minister Nirmala Sitharaman, for a very progressive, tech-oriented and transformational budget for the development and growth of micro, small & medium enterprises.
Laghu Udyog bharati, State President, Vijayaragavan in a press release has said, following are the key salient features benefitting the MSME Industry.
PM GATI SHAKTHI SCHEME:
PM Gati Shakti is a transformative approach for economic growth, sustainable development and employment growth. PM Gati Shakti Master Plan for Expressways will be formulated in 2022-23 to facilitate faster movement of people and goods. The National Highways network will be expanded by 25,000 km in 2022-23.
One hundred PM Gati Shakti Cargo Terminals for multimodal logistics facilities and 400 Vande Bharatham Trains will be developed during the next three years.
‘One Station-One Product’ concept will be popularized to help local businesses and supply chains.
This is a welcome scheme which would support the Industry for a wider reach of markets in a shorter time and also help in speeding up the Supply Chain Management.
MSME Portal Integration:
Udyam, e-Shram, NCS and ASEEM portals will be interlinked and scope will be widened. The interlinking of the above portals will help in providing G2C, B2C and B2B services, thereby helping credit facilitation, skilling, and recruitment.
ECLGS SCHEME:
ECLGS Scheme has benefitted 130 Lakh MSMEs so far during the Pandemic period and the scheme has been further extended till 31.3.2023. The total outlay of the scheme was already extended from Rs. 3.0L crores to Rs. 4.50L crores last year and now it has further been extended by another Rs. 50K crores taking the total scheme to Rs. 5.0 Lakh crores.
The additional Rs. 50K crores shall be exclusively earmarked for the Hospitality Sector, which has been severely hit during the Pandemic.
CGTMSE SCHEME:
Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with required infusion of funds. This will facilitate additional credit of Rs. 2.0 lakh crore for Micro and Small Enterprises and expand employment opportunities.
RAMP Programme:
Raising and Accelerating MSME Performance (RAMP) programme with outlay of Rs. 6,000 crore over 5 years will be rolled out. This will help the existing MSME sector become more resilient, competitive and efficient.
Skill Development:
Skilling Programmes and partnership with the Industry will be reoriented to provide better employability which will be aligned with dynamic needs of the Industry.
Drone Technology will be introduced in select ITIs across the country to develop Drone Shakti as a service. The required courses for skilling will be aligned with Industry requirements.
Government Procurement :
Government rules have recently been modernized and Provisions have been made for payment of 75 per cent of running bills, mandatorily within 10 days.
Launch of end-to-end online e-Bill system to ensure completely paperless and enhance transparency. The system will enable the suppliers and contractors to submit online their digitally signed bills and claims and track their status from anywhere.
To reduce indirect cost for suppliers and work-contractors, the use of surety bonds as a substitute for bank guarantee will be made acceptable in government procurements. IRDAI has given the framework for issue of surety bonds by insurance companies.
AtmaNirbhar Bharat in Defence:
In order to support MSMEs in the Defence Manufacturing Sector, the Indian component of the defence needs has been increased from existing 58% to 68%.
Defence R&D will be opened up for industry, start-ups and academia with 25 per cent of defence R&D budget earmarked.
Solar Power:
Industries will be encouraged to start Integrated Manufacturing units from polysilicon to solar PV modules. In order to meet the ambitious goal of 280GW by 2030, an additional sum of Rs. 19500 crores has been allocated through PLI scheme.
Incentive for Start-ups
Eligible start-ups established before 31.3.2022 had been provided a tax incentive for three consecutive years out of ten years from incorporation. The same has been extended upto 31.3.2023.
Incentive for Newly Incorporated Manufacturing entities:
In order to make MSMEs globally competitive, a concessional tax regime of 15 per cent tax was introduced for newly incorporated domestic manufacturing companies. The last date for commencement of manufacturing under section 115BAB has been extended by one year i.e. from 31st March, 2023 to 31st March, 2024.
Battery Swapping Policy for EV Industry:
Considering the constraint of space in urban areas for setting up charging stations at scale, Government is proposing to introduce Battery Swapping Policy instead of Battery Charging Stations and inter-operability standards will be formulated. This will open up a new Business model for the Micro Units in the private sector, who will be encouraged to develop ‘Battery or Energy as a Service’. This will improve efficiency in the EV ecosystem.
Interlinking of Rivers:
Long pending project of interlinking of National rivers has been formalised by way of DPR for five river links, namely Damanganga-Pinjal, Par-TapiNarmada, Godavari-Krishna, Krishna-Pennar and Pennar-Cauvery. This would ensure economic growth & huge employment across the Country, specifically for water-starved regions of Tamilnadu Cauvery Delta.
Land Records Management:
The Government proposes to launch National Generic Document Registration System (NGDRS) with the ‘One-Nation One-Registration Software’ which will be promoted as an option for uniform process for registration and ‘anywhere registration’ of deeds & documents. This would enable ease of doing business for the MSMEs" he said.