Redefining the Parameters for Registration for MSME on Udyam Registration: Mr AK Sharma, MSME Secretary

New Delhi: A complete process re-engineering is being done for the registration of MSMEs as per the new definition, said the Secretary, Ministry of MSME, Mr A K Sharma while inaugurating a week long initiative of CII for liquidity infusion in the MSME Sector and a Month long loan mela . . He highlighted on digitization of the process of registration on the Ministry of MSME’s newly launched Portal of Udyam Registration which integrates the auto capturing of data through inputs of Adhaar Number, Pan Number and GSTIN number for registration on the said Portal. He mentioned, that more than 3 lakh registrations have already happened in the month of July and August and it is further picking up well. He urged the MSMEs, to register under the new definition on the Udyam Portal.

Mr Sharma , while reassuring on the effective implementation of the schemes under the Aatma Nirbhar bharat, highlighted that over Rs 1 lakh cr of loans have already been disbursed and with the change in the scope of the scheme , it is further expected to pace up.

He also mentioned about the Credit Guarantee Scheme for Subordinated Debt and invited CII and other stakeholders for sharing their feedback if any to make it more effective along with the urge to populate the other schemes for benefitting MSMEs and bridging the credit gaps. . He also alluded to Fund of funds scheme where the Ministry is targeting to bring on board the Venture Capital Firms and Private Equity Firms to participate and help MSMEs for the equity infusion.

Mr Sharma emphasized on the relevance of Credit Rating of the MSMEs for the Venture Capital and other lending institutions tor ease of lending along with the push for the Listing of MSMEs on the Stock Exchanges for exploring the alternate channels of financing.

While highlighting the relevance of finance for MSMEs, Mr Sanjiv Bajaj, Vice President, CII, stressed that for building the Competitiveness of MSMEs and helping them tap the immense amount of opportunities existing to participate in the global supply chains, there needs to be increase in the number of lending institutions that provide alternate channels of financing through the access of equity and hybrid structures to NBFCs for further lending to MSMEs.

Pertaining to the issue of delayed payments which was raised as a grave concern by Mr Sanjiv Bajaj, Vice President CII, Mr Sharma talked about the new online reporting mechanism for the clearance of the pending dues by the Government, CPSEs and PSUs. He also shared that through this mechanism, in the month of July, out of the total pending dues almost 75% have already been cleared. The Ministry further aims to replicate this mechanism at the state level as well.

Lastly, the Secretary mentioned about the encouragement to the MSMEs to on board the TReDS platform through the waiver of the registration charges worth Rs 10,000.the waiver was earlier applicable till Sep 2020 and now it is decided to be extended till March 2021

Also, as part of the registration on the Udyam Portal and backend integration, there has been a seamless mechanism of on boarding both the TReDS as well as GeM Portal with a few clicks.

Director General CII, Shri Chandrajit Banerjee, emphasized on the role of MSMEs in nation building. He highlighted on the Month-Long Loan Mela Campaign under the Money Mobility initiative for MSMEs has progressed well so far with more than 7000 applications received from Pan India level.

Mr Shreekant Somany, Chairman, CII National MSME Council, concluded the session with a strong message to the MSMEs to stay resilient and take this challenging time as an opportunity to innovate and integrate with the world.