Program and Policy initiatives to provide relief to MSMEs due to Covid-19 pandemic

Second wave of Covid-19 pandemic MSMEs continued to register on UR Portal

The Government of India simplified the process of registration of MSMEs by replacing the Udyog Aadhaar Memorandum (UAM) with Udyam Registration (UR) on 1st July 2020. UR is free of cost, transparent, online, hassle-free, and is based on self-declaration. It does not require any documents and has automatic integration with ITR and GSTIN. During the second wave of Covid-19, pandemic MSMEs continued to register on UR Portal.

MSMEs can avail the benefits of schemes such as the Prime Minister’s Employment Generation Programme (PMEGP)/Rural Employment Generation Programme (REGP)/Micro Units Development & Refinance Agency (MUDRA) and the announcements made to provide relief to MSMEs from the problems faced due to COVID-19 pandemic. The number of Projects and Employment generation under PMEGP during 2020-21 in July 2021 are 91,054 and 7,28,432, respectively.

The Ministry of Micro, Small, and Medium Enterprises (MSME) does not set up any MSME in any state including Karnataka, Maharashtra, and Tamil Nadu. The MSME sector consists of private players and the investments in this sector are made by the entrepreneurs themselves. The promotion and development of enterprises is a State subject. However, the Central Government supplements the efforts of the State/UT Governments through various schemes, programs, and policy initiatives for promotion, development, and enhancing the competitiveness of MSMEs in the country.

A number of schemes are being implemented by the Ministry of MSME for MSMEs, including Prime Minister’s Employment Generation Programme (PMEGP), Credit Linked Capital Subsidy for Technology Upgradation Scheme (CLCS-TUS), Schemes for Khadi & Village Industries and Coir, International Cooperation Scheme, Procurement and Marketing Support Scheme, Scheme for Credit Guarantee Fund for Micro and Small Enterprises, National SC/ST Hub, etc. Benefits under these schemes are available to all eligible MSMEs, including those belonging to SC and ST communities. The Public Procurement Policy for Micro and Small Enterprises Order 2012 mandates 4% procurement from SC/ST-owned MSEs and 3% from women-owned MSEs.

This information was given by Minister for Micro. Small and Medium Enterprises Shri Narayan Rane in a written reply in the Lok Sabha today.