Clarification on existing Entrepreneurs Memorandum (EM) Part-III Udyog Aadhaar Memorandum (UAM)I New Udyam Registration-regarding
This refers to Notification No. S.O. 2119(E) dated 26.06.2020 issued by Ministry of Micro, Small & Medium Enterprises(MSME) regarding criteria for classification of enterprises as Micro, Small & Medium Enterprises and their registration in Udyam Portal. Thereafter, Government has received some representations seeking clarifications on certain issues necessitating the issuing of this Office Memorandum (O.M.).
2. Validity of EM Part II and UAMs as issued till 30”’ June, 2020:
(i) There are representations whether the existing EM Part II and lor UAMs ofthe·MSMEs are
valid or not.
(ii) It is to be clarified that at present they are valid. Para (3) of Clause 7 of the above
Notification No. S.O. 219 (E) dated 26.6.2020, reads as follows:
“The existing enterprises registered prior to 30”’ June, 2020, shall continue to be valid
onlyfor aperiod up tothe srday ofMarch, 2021″.
(iii) Therefore, it is clarified and emphasized that all the existing EM Part II and UAMs obtained
till 30.06.2020 shall remain valid till 3l.03.2021.
3. Editing lupdating of the existing registration details:
There are also doubts whether existing UAM holders may edit or amend their details on the UAM
portal. It is clarified that the same can be done till 31.3.2021. Those enterprises that have not entered their Aadhaar or PAN number so far in the UAM portal are hereby advised to obtain” Udyam Registration Number” well before 3l.3.2021.

4. Action to be taken before 31st March 2021 by Entrepreneurs:
(i) Since the existing registrations as EM Part II and lor UAMs will not remain valid
after 31st March, 2021 it is strongly recommended that their holders file fresh
registration in the new Udyam Registration Portal (
(ii) Attention is also drawn to Para (2) of Clause 7 of the above ~ otification No. S.O.
2119 (E) dated 26.6.2020 which reads as under:
“All enterprises registered till 3r1hJune, 2020, shall be re-classified in accordance with
this notification”.
(iii) To make the re-classification proper and realistic, it is necessary that the latest details
are entered by the MSMEs.
(iv) It is preferable that the entrepreneur files new registration in the Udyam Registration
Portal. Therefore, all enterprises with EM Part II and/or UAMs are advised to register themselves on the Udyam Registration well before 31.03.2021 in the Udyam Registration portal (www.udyamr
5. Value of Plant and Machinery or Equipment;
(i) There are clarifications sought by the entrepreneurs regarding valuation of plant and machinery or equipments on cost or purchase price while filing the Udyam Registration.
(ii) Para 3 of clause 4 Notification No. S.O. 2119(E) dated 26.6.2020 reads as follows:
“The expression plant and machinery or equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings)”.
(iii) It is clarified that online Form for Udyam Registration captures depreciated cost as on 31st March each year of the relevant previous year. Therefore, the value of Plant arid Machinery or Equipments for all purposes of the Notification No. S.O. 2119(E) dated 26.6.2020 and for all the enterprises shall mean the Written Down Value (WDV) as at the end of the Financial Year as defined in the Income Tax Act and not the cost of acquisition or original price, which was applicable in the context of the earlier classification criteria.
6. RBI’s Circular:
In the light of the above, RBI is being requested to revisit their Circular NO.RBI/2020- 2021110/FIDD.MSME & NFS.BC.No.3/06.02.3112020-21 dated 2.7.2020.

Taking this opportunity, it is further reiterated that the entire registration process is free of cost. Also, it should be done only on and through the Government Portal as above.
This issues with the approval of competent authority.



    Credit flow to Micro, Small and Medium Enterprises Sector

    Please refer to our circular RPCD.PLNFS.BC.No.63/06.02.31/2006-07 dated April 4, 2007 containing definition of Micro, Small and Medium Enterprises as per Section 7 (I) of the Micro Small and Medium Enterprises Development Act, 2006.

    2. In this connection, we inform that Government of India (GoI), vide Gazette Notification S.O. 2119 (E) dated June 26, 2020, has notified new criteria for classifying the enterprises as Micro, Small and Medium enterprises. The new criteria will come into effect from July 1, 2020. The details are as under:

    2.1 Classification of enterprises

    An enterprise shall be classified as a Micro, Small or Medium enterprise on the basis of the following criteria, namely:

    1. a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;

    2. a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and

    3. a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees

    2.2 Composite criteria of investment and turnover for classification

    1. A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium.

    2. If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.

    3. All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

    2.3 Calculation of investment in plant and machinery or equipment

    1. The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.

    2. In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.

    3. The expression ‘’plant and machinery or equipment’’ of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings).

    4. The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR.

    5. The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.

    2.4 Calculation of turnover

    1. Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.

    2. Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.

    3. The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN shall be mandatory.

    2.5 In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise will maintain its prevailing status till expiry of one year from the close of the year of registration. In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place. Other aspects relating to registration of enterprises, grievance redressal, etc. are mentioned in the Gazette Notification S.O. 2119 (E) dated June 26, 2020.

    3. The above instructions supersedes our earlier guidelines dated April 4, 2007, except paragraph 6 relating to delayed payment to micro and small enterprises.

    4. We advise you to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard, at the earliest.

    New Process of MSME Registration takes off in the name of Udyam Registration from 1st July, 2020 as planned earlier – a new portal for Udyam Registration launched by the MSME Ministry

    The portal guides the entrepreneurs step by step as to what they should know, what they should do

    Government has organized a full system of Facilitation for Registration Process

    Posted On: 30 JUN 2020 5:41PM by PIB Delhi

    As already declared by the Union Ministry of Micro, Small and Medium Enterprises (MSME), vide the Notification Dated 26th June, 2020, the new process of Classification and Registration of enterprises is starting from 1st July, 2020. An enterprise for this purpose will be known as Udyam and its Registration Process will be known as ‘Udyam Registration’.


    Further highlights of this process are:


    • MSME registration process is fully online, paperless and based on self-declaration. No documents or proof are required to be uploaded for registering an MSME;
    • Adhaar Number will be requiredfor registration;
    • A Registration number will be given after registration;
    • After completion of the process of registration, an Udyam Registration Certificate will be issued; 
    • This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed;
    • There will be no need for renewal of Registration;
    • PAN & GST linked details on investment and turnover of enterprises will be taken automatically from the respective Government data bases;
    • MSME Ministry’s  online system will be fully integrated with Income Tax and GSTIN systems;
    • Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will also have to re-register themselves;
    • No enterprise is supposed to file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration;
    • Government ‘s Facilitation mechanism in the name of single window systems at Champions Control Rooms and at DICs will help people in this process;
    • Registration Process is totally free. No Costs or Fees are to be paid in this regard.


    Ministry has expressed confidence that this process will be extremely simple,  seamless entrepreneur friendly. It will set an example in Ease of Doing Business, not only in India but internationally. It will reduce transaction time and costs. Entrepreneurs and Enterprises can focus on their real work and become globally competitive.

    At the same time, looking to some private websites projecting as Government website,  Ministry has clarified that except this portal of Government of India ( and Government’s Single Window Facilitation Systems, no other private online or offline system, service, agency or person is authorized or entitled to do MSME Registration or undertake any activity related with that process.


    Ministry of Micro,Small & Medium Enterprises

    Cabinet approves Upward revision of MSME definition and modalities/ road map for implementing remaining two Packages for MSMEs (a)Rs 20000 crore package for Distressed MSMEs and (b) Rs 50,000 crore equity infusion through Fund of Funds

    Fully paved way for Energising the MSME Sector through entire gamut of ‘Atmanirbhar Bharat Package’

    Posted On: 01 JUN 2020 5:46PM by PIB Delhi

    In line with Government of India’s top focus on energising MSMEs in the country, a special meeting of Cabinet Committee on Economic Affairs (CCEA) was convened under the Chairmanship of Prime Minister Shri Narendra Modi, here today, which approved the upward revision of MSME definition and modalities/ road map for laying down effective implementation mechanism for the remaining two announcements under the Atmanirbhar Bharat Package. These include:


    • In the package announcement, the definition of micro manufacturing and services unit was increased to Rs. 1 crore of investment and Rs. 5 crore of turnover. The limit of small unit was increased to Rs. 10 crore of investment and Rs 50 crore of turnover. Similarly, the limit of a medium unit was increased to Rs 20 crore of investment and Rs. 100 crore of turnover. It may be noted that this revision was done after 14 years since the MSME Development Act came into existence in 2006. After the package announcement on 13th May, 2020, there were several representations that the announced revision is still not in tune with market and pricing conditions and it should be further revised upwards. Keeping in mind these representations, it was decided to further increase the limit for medium manufacturing and service units. Now it will be Rs. 50 crore of investment and Rs. 250 crore of turnover. It has also been decided that the turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium. This is yet another step towards ease of doing business. This will help in attracting investments and creating more jobs in the MSME sector. The following table provides the details of revised limits:













    25 Lakh

    10 Lakh

    1 Crore

    5 Crore


    5 Crore

    2 Crore

    10 Crore

    50 Crore


    10 crore

    5 Crore

    50 Crore

    250 Crore

    • Approval for provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs. This will benefit 2 lakh stressed MSMEs.


    • Approval for equity infusion of Rs. 50,000 crore for MSMEs through Fund of Funds (FoF). This will establish a framework to help MSMEs in capacity augmentation. This will also provide an opportunity to get listed in stock exchanges.


    With today’s approval, implementation Modalities and Road Map for entire components of the Atmnirbhar Bharat Abhiyan package are in place. This will help in attracting investments and creating more jobs in the MSME sector.


    In the aftermath of COVID-19 pandemic, Prime Minister Shri Modi was quick to recognise the role of MSMEs in building the Nation. As such, MSMEs formed a very prominent part of the announcements made under the Atmanirbhar Bharat Abhiyaan. Under this package, the MSME sector has not only been given substantial allocation but has also been accorded priority in implementation of the measures to revive the economy. To provide immediate relief to MSME sector, various announcements have been made under the Package. The most important ones also included:


    • Rupees Three lakh crore collateral-free automatic loans for MSMEs to meet operational liabilities, buy raw material and restart businesses.
    • Revision of MSME definition to render maximum benefits to the sector;
    • Disallowing global tenders in procurements uptoRs. 200 crores- to create more opportunities for domestic players,
    • And clearing of MSME dues by the Government and Public Sector Units within 45 days.


    Government of India has been taking all necessary steps to ensure that the benefit of these landmark decisions reaches to the MSMEs at the earliest. In this regard, following necessary policy decisions have been already taken and the implementation strategy has been put in place.


    • The scheme for Rs. Three lakh crore col lateral-free automatic loans was earlier approved by CCEA and has been formally launched.
    • Modalities have been worked out for Upward revision of MSME Definition making it more inclusive broad-based providing greater avenues to MSMEs to harness their potentials.
    • Similarly, amendments in General Financial Rules mandating no global tenders for procurement upto 200 crore have been carried out. The new rules have already been issued and effected. This will open up new business avenues for Indian MSMEs.
    • To ensure that MSME payments are released within the timeframe of 45 days, directions have been issued at the level of Cabinet Secretary, Expenditure Secretary and Secretary, MSME.
    • To further ease the burden on MSMEs, RBI has extended moratorium on repayment of loans for another three months.


    To manage all this, a robust ICT based system called CHAMPIONS has also been launched by the Ministry of MSME. The portal is not only helping and handholding MSMEs in the present situation, but is also providing guidance to grab the new business opportunities and in the long run, become national and international Champions.


    MSME Ministry is committed to support the MSMEs, and the people who depend on them. All efforts are being made to encourage MSMEs to take benefit of the initiatives under the Atmanirbhar Bharat package and our other schemes.



    Micro, small and Medium Enterprises (MSMEs) popularly called as MSMEs are the backbone of Indian economy. Silently operating in different areas across the country, more than 6 crore MSMEs have a crucial role to play in building a stronger and self-reliant India. These small economic engines have a huge impact on the country’s GDP-making a contribution of 29 percent. They contribute to almost half of exports from the country. Additionally, more than 11 crore people are employed in the MSME sector.


    Prime Minister’s Office

    PM Modi Launches CHAMPIONS: Technology Platform to empower MSMEs

    Posted On: 01 JUN 2020 5:04PM by PIB Delhi

    Prime Minister Shri Narendra Modi today launched the technology platform CHAMPIONS which stands for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength.


    As the name suggests,the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding.It is a real one-stop-shop solution of MSME Ministry.


    This ICT based system is set up to help the MSMEs in present difficult situation and also to handhold them to become national and international champions.


    Detailed objectives of CHAMPIONS:

    1. Grievance Redressal: To resolve the problems of MSMEs including those of finance, raw materials, labor, regulatory permissions etc particularly in the Covid created difficult situation;
    2. To help them capture new opportunities:  including manufacturing of medical equipments and accessories like PPEs, masks, etc and supply them in National and International markets;
    3. To identify and encourage the sparks:  i.e. the potential MSMEs who are able to withstand the current situation and can become national and international champions.

    It is a technology packed control room-cum-management information system. In addition to ICT tools including telephone, internet and video conference, the system is enabled by Artificial Intelligence, Data Analytics and Machine Learning. It is also fully integrated on real time basis with GOI’s main grievances portal CPGRAMS and MSME Ministry’s own other web based mechanisms.The entire ICT architecture is created in house with the help of NIC in no cost. Similarly, the physical infrastructure is created in one of ministry’s dumping rooms in a record time.


    As part of the system a network of control rooms is created in a Hub & Spoke Model. The Hub is situated in New Delhi in the Secretary MSME’s office. The spokes are in the States in various offices and institutions of MSME Ministry. As of now, 66 state level control rooms are createdand made functional. They are connected through video conference also in addition to the portal of Champions. A detailed standard operating procedure (SOP) has been issue to the officers and staff have been deployed and training has been conducted for them.


    On this occasion, Minister of MSME and Road Transport and Highways Shri Nitin Gadakari was also present.


    CA Aspirant


    Article Assistant in SAG & Company

    1. What is the definition of MSME?

    The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:

    • MSMEs will now be called Micro units if they have investments upto Rs 1 crore and turnover of less than Rs 5 crore. The definition earlier was on investment criteria of up to Rs 10 lakh for Service MSMEs earlier and Rs 25 lakh or manufacturing.
    • For an MSME to be defined as a Small unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of less than 50 crore. This applies to all MSMEs including the Service enterprises which earlier came under investment of up to Rs 2 crore.
    • Enterprises with investments up to Rs 20 crore with a turnover of less than Rs 100 crore will now be called Medium Earlier, the investment limit for Medium units was up to Rs 10 crore and Service enterprises up to Rs 5 crore.
    1. What is the support available for collateral free borrowing?

    The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the MSE sector without the need for collaterals/ third party guarantees. The main objective of the scheme is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of an MSE unit, which availed collateral- free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 per cent of the outstanding amount in default. The CGTMSE would provide cover for credit facility up to Rs. 100 lakh which have been extended by lending institutions without any collateral security and /or third party guarantees. A guarantee and annual service fee is charged by the CGTMSE to avail of the guarantee cover. Presently the guarantee fee and annual service charges are to be borne by the borrower.

    1. What is the support available for technology upgradation?

    Ministry implements a scheme called Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small enterprises in the country. Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh (12 per cent prior to 29.09.2005 limited to maximum of Rs 4.8 lakh) is provided to the eligible MSEs for upgrading their technology with the well-established and improved technology as approved under the scheme. 48 products/sub-sectors have been approved under the CLCSS till date. If you are an MSE manufacturing a product and want to upgrade the technology of manufacturing the product with the well-established and improved technology as approved under the Scheme, then you may have to approach to the nodal agencies/eligible financial institution for sanction of term loan for purchase of eligible machinery.

    1. What is the support available for cluster development?

    The Ministry is implementing the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) wherein support is provided for Diagnostic Study; Soft Interventions like general awareness, counseling, motivation and trust building, exposure visits, market development including exports, participation in seminars, workshops and training programmes on technology upgradation etc, Hard Interventions like setting up of Common Facility Centers (Common Production/Processing Centre, Design Centre, Testing Centre etc.) and creation/upgradation of infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.

    1. What is the support available for Skill Development?

    The Ministry conducts various types of training Programme through its various organization’s for self-employment as well as wage employment. The training programmes are primarily focused to promote self-employment in the country. Thus all type of programmes have input which provide necessary information and skills to a trainee to enable him to establish his own micro or a small enterprises. The programmes include two week Entrepreneurship Development Programme (EDP), Six Week Entrepreneurship Skill Development Programme (ESDP). One weak Management Development Programme (MDP), One Day Industrial Motivation Campaign (IMC) etc. For Monitoring of the Programme a web based system has been developed where coordinator of the Programme is bound to feed all details of trainees including his photo and phone no. on the website. The same will be linked to the call center of Ministry where real time feedback is obtained from trainees.

    1. What benefits do the Tool Rooms of Ministry of MSME provide to MSMEs?

    Tool Rooms are equipped with state-of-the-art machinery & equipment. They are engaged in designing and manufacturing of quality tools, which are necessary for producing quality products, and improve the competitiveness of MSMEs in national and international markets. They also conduct training programmes to provide skilled manpower to industries specially MSMEs. The placement of trainees trained in Tool Room is more than 90%. There are 18 Autonomous Bodies (10 MSME Tool Rooms and 8 Technology Development Centre’s) under DC (MSME).


    1. What support is provided by the Ministry for improving manufacturing competitiveness?

    The National Manufacturing Competitiveness Programme (NMCP) is the nodal Programme of the Government to develop global competitiveness among Indian MSMEs. The Programme was initiated in 2007-08. This Programme targets at enhancing the entire value chain of the MSME sector through the following schemes:(a) Lean Manufacturing Competitiveness Scheme for MSMEs (b) Promotion of Information & Communication Tools (ICT) in MSME sector (c) Technology and Quality Upgradation Support to MSMEs (d) Design Clinics scheme for MSMEs (e) Enabling Manufacturing Sector to be Competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT) (f) Marketing Assistance and Technology Up gradation Scheme for MSMEs (g) Setting up of Mini Tool Room under PPP Mode (h) National campaign for building awareness on Intellectual Property Rights (IPR) (I) Support for Entrepreneurial and Managerial Development of SMEs through Incubators (j) Bar Code under Market Development Assistance (MDA) scheme.


    1. What support is provided by the Ministry to promote energy conservation in the manufacturing process for SMEs?

    The Ministry implements the “Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises (TEQUP)” which focuses on two important aspects, namely, enhancing competitiveness of MSME sector through Energy Efficiency and Product Quality Certification. The basic objective of this scheme is to encourage MSMEs in adopting energy efficient technologies and to improve product quality of manufacturing in MSMEs. It is a well-known fact that energy consumption is a significant component in the cost structure of almost any manufacturing/ production activity. Adopting energy efficient technologies curtails the cost of energy there by reducing production cost and increasing competitiveness. Under this scheme, a capital subsidy of 25% of the project cost subject to a maximum of Rs. 10.00 lakh shall be provided to the registered MSME units. While 25% of the project cost will be provided as subsidy by the Government of India, the balance amount is to be funded through loan from SIDBI/banks/financial institutions. The minimum contribution as required by the funding agency will have to be made by the MSME unit.

    1. What support is provided by the Ministry to improve quality of products produced in MSME sector?

    The TEQUP scheme envisages another activity, namely, Product Quality Certification. The main objective of this scheme is to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness. The primary objective of this activity is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National / International standardization Bodies. Under this Activity, MSME manufacturing units will be provided subsidy to the extent of 75% of the actual expenditure, towards licensing of product to National/International Standards. The maximum GOI assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing /Marking to National Standards and Rs. 2.0 lakh for obtaining product licensing /Marking to International standards. One MSME unit can apply only once under the scheme period.

    1. What support is provided by the Ministry to improve design of products produced in MSME sector?

    The Ministry implements the Design Clinic Scheme for Design Expertise to Micro, Small and Medium Enterprises (MSME) Sector is to improve the design of the product to meet global challenges and compete with similar products domestically and internationally. It is launched to benefit MSMEs by creating a dynamic platform to provide expert solutions to real time Design problems and add value to existing products. The goal of this scheme is to help MSME manufacturing industries move up the value chain by switching the production mode from original equipment manufacturing to original design manufacturing and hence original brand manufacturing. In the Design Clinic scheme, the value additions to an idea or a concept are imparted through interaction at a lesser cost to a specific industry/sector. The expected outcome of such interventions is new product development by design improvement and value addition for existing products.

    1. What support is provided by the Ministry to adopt latest Quality Management Standards and Quality Technology Tools (QMS/QTT)?

    Under the National Manufacturing Competitiveness Programme (NMCP) Scheme, one component is “Enabling MSME manufacturing sector to be competitive through Quality Management Standards/Quality Technology Tools (QMS/QTT)” was initiated in the XIth Five year plan. The main objective of the scheme is to sensitize and encourage MSEs to adopt latest Quality Management Standards/Quality Technology Tools (QMS/QTT) and to keep a watch on sectoral developments by undertaking the stated activities. The major activities under the Scheme are as a) Introduction of appropriate course modules for technical institutions

    1. b) Organizing awareness campaigns for micro & small enterprises.
    2. c) Organizing competition–watch (c-watch).
    3. d) Implementation of quality management standards and quality technology tools in selected micro & small enterprises.
    4. e) Monitoring international study missions.
    1. What support is provided by the Ministry for promotion of Information & Communication Tools (ICT) in MSME Sector?

    The Ministry implements the Information and Communication Technology (ICT) scheme to encourage and assist Indian MSMEs to adopt ICT Tools and Applications in their production and business processes, and thereby improve their productivity and competitiveness in National and International Market.

    1. What support is provided by the Ministry for setting up Business Incubators?

    The Ministry implements the Support for Entrepreneurial and Managerial Development of SME’s Through Incubators”. The main purpose of the scheme is to nurture innovative business ideas (new/indigenous technology, processes, products, procedures, etc), which could be commercialized in a year. Under the Scheme, financial assistance between 75%-85% of the project cost upto maximum of Rs. 8 lakh per idea/unit, provided to Business Incubators (BIs). The BIs are also eligible to avail Rs. 3.78 lakh for infrastructure and training expenses for incubating 10 ideas. Any individual or Micro and Small Industries (MSEs) that has innovative business idea at near commercialization stage can approach the Business Incubators approved under the scheme. Under the scheme, various institutions like Engineering Colleges, Management Institutions, Research labs, etc. that have in-house incubation facilities and faculty for providing handholding support to new idea/entrepreneur can apply in the prescribed application form.

    1. Whether there is any scheme for assisting MSMEs for Intellectual Property Rights?

    Under the National Manufacturing Competitiveness Programme (NMCP) to enhance the competitiveness of the SMEs sector, DC (MSME) is implementing a scheme “Building Awareness on Intellectual Property Rights (IPR)” for the MSME. The objective of the scheme is to enhance awareness of MSME about Intellectual Property Rights (IPRs) to take measure for the protecting their ideas and business strategies. Accordingly, to enable the MSME sector to face the present challenges of liberalization, various activities on IPR are being implemented under this scheme.

    1. Is there support available for obtaining ISO certification?

    The Ministry is implementing the Certification Reimbursement Scheme for Micro & Small Enterprises (MSEs) for reimbursement of certification expenses, only to those MSEs which have acquired Quality Management Systems (QMS) and /or Environment Management Systems (EMS) or Food Safety Systems (HACCP) Certification. Under the scheme provides reimbursement of 75% of the certification expenses up to a maximum of Rs.75,000/- (Rupees seventy five thousand only) to each unit as one-time reimbursement only to those MSEs which have acquired Quality Management Systems (QMS) or Environment Management Systems (EMS) and or Food Safety Systems (HACCP) Certification.

    1. What support is provided by the Ministry for enabling MSMEs to get credit rating?

    The Ministry is implementing the Performance & Credit Rating Scheme, the main objective of the is to provide a trusted third party opinion on the capabilities and creditworthiness of the MSEs so as to create awareness amongst them about the strengths and weakness of their existing operations. This is to provide them an opportunity to improve and enhance their organizational strengths and credit worthiness, so that they can access credit at cheaper rates and on easy terms.NSIC was appointed as nodal agency to implement the scheme on behalf of the Government. Rating under the scheme is being carried out through empaneled rating agencies i.e. Credit Rating Information Services of India Limited (CRISIL), Credit Analysis & Research Limited (CARE), Onicra Credit Rating Agency of India Ltd. (ONICRA), Small and Medium Enterprises Rating Agency of India Ltd. (SMERA), ICRA limited and Brickwork India Ratings. Under this Scheme, rating fee payable by the micro and small enterprises is subsidized for the first year only and that is subject to maximum of 75% of the fee or Rs. 40000/-, whichever is less.

    1. What support is provided by the Ministry for assisting training institutions?

    The Ministry is implementing the Assisting to Training Institutions Scheme which envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas, by providing training to first generation entrepreneurs and assisting them in setting up of enterprises. The assistance shall be provided to these training institutions in the form of capital grant for creation/strengthening of infrastructure and Programme support for conducting entrepreneurship development and skill development programmes.

    1. What support is provided by the Ministry for participation of MSMEs in international events?

    Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines.

    1. What scheme does the Ministry have for providing marketing support to MSMEs?

    The Ministry implements the Marketing Assistance scheme through National Small Industries Corporation (NSIC) Limited for providing marketing support to MSMEs. The main objectives of the scheme is to enhance the marketing competitiveness of MSMEs; to provide them a platform for interaction with the individual/institutional buyers to update them with prevalent market scenario and to provide them a form for redressing their problems. MSMEs are supported under the Scheme for capturing the new market opportunities through organizing/ participating in various domestic & international exhibitions/ trade fairs, Buyer-Seller meets intensive-campaigns and other marketing events.

    1. Does the Ministry have any scheme for providing handholding support and assistance to potential entrepreneurs?

    The Ministry implements the Rajiv Gandhi Udyami Mitra Yojana (RGUMY), objective of which is to provide handholding support and assistance to the potential first generation entrepreneurs, who have already successfully completed Entrepreneurship Development / Skill Development Training. Selected lead agencies i.e. ‘Udyami Metra’s’, provide information and guidance to first generation entrepreneurs regarding various promotional schemes of the Government, procedural formalities required for setting up and running of the enterprises and help them in accessing Bank credit etc. A ‘Udyami Helpline’ (a Call Centre for MSMEs) with a toll free No. 1800-180-6763 has also been set up to assist the entrepreneurs.

    1. What is the status of lending by banks to this sector?

    Bank’s lending to the Micro and Small enterprises engaged in the manufacture or production of goods specified in the first schedule to the Industries (Development and regulation) Act, 1951 and notified by the Government from time to time is reckoned for priority sector advances. However, bank loans up to Rs.5 crore per borrower / unit to Micro and Small Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006 are eligible to be reckoned for priority sector advances. Lending to Medium enterprises is not eligible to be included for the purpose of computation of priority sector lending.

    1. What is meant by Priority Sector Lending?

    Priority sector lending include only those sectors, as part of the priority sector that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises

    1. Are there any targets prescribed for lending by banks to MSMEs?

    As per extant policy, certain targets have been prescribed for banks for lending to the Micro and Small enterprise (MSE) sector. In terms of the recommendations of the Prime Minister’s Task Force on MSMEs banks have been advised to achieve a 20 per cent year-on-year growth in credit to micro and small enterprises, a 10 per cent annual growth in the number of micro enterprise accounts and 60% of total lending to MSE sector as on preceding March 31st to Micro enterprises. In order to ensure that sufficient credit is available to micro enterprises within the MSE sector, banks should ensure that:40 per cent of the total advances to MSE sector should go to micro (manufacturing) enterprises having investment in plant and machinery up to Rs. 10 lakh and micro (service) enterprises having investment in equipment up to Rs. 4 lakh, 20 % of the total advances to MSE sector should go to micro (manufacturing) enterprises with investment in plant and machinery above Rs. 10 lakh and up to Rs. 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 4 lakh and up to Rs. 10 lakh. Thus, 60 per cent of MSE advances should go to the micro enterprises


    1. Are there specialized bank branches for lending to the MSMEs?

    Public sector banks have been advised to open at least one specialized branch in each district. The banks have been permitted to categorize their MSME general banking branches having 60% or more of their advances to MSME sector, as specialized MSME branches for providing better service to this sector as a whole. As per the policy package announced by the Government of India for stepping up credit to MSME sector, the public sector banks will ensure specialized MSME branches in identified clusters/centers with preponderance of small enterprises to enable the entrepreneurs to have easy access to the bank credit and to equip bank personnel to develop requisite expertise. Though their core competence will be utilized for extending finance and other services to MSME sector, they will have operational flexibility to extend finance/render other services to other sectors/borrowers.

    1. How do banks assess the working capital requirements of borrowers?

    The banks have been advised by RBI to put in place loan policies governing extension of credit facilities for the MSE sector duly approved by their Board of Directors. Banks have, however, been advised to sanction limits after proper appraisal of the genuine working capital requirements of the borrowers keeping in mind their business cycle and short term credit requirement. As per Nayak Committee Report, working capital limits to SSI units is computed on the basis of minimum 20% of their estimated turnover up to credit limit of Rs.5crore.

    1. What is Cluster financing?

    Cluster based approach to lending is intended to provide a full-service approach to cater to the diverse needs of the MSE sector which may be achieved through extending banking services to recognized MSE clusters. A cluster based approach may be more beneficial (a) in dealing with well-defined and recognized groups (b) availability of appropriate information for risk assessment (c) monitoring by the lending institutions and (d) reduction in costs.  The banks have, therefore, been advised to treat it as a thrust area and increasingly adopt the same for SME financing. United Nations Industrial Development Organization (UNIDO) has identified 388 clusters spread over 21 states in various parts of the country. The Ministry of Micro, Small and Medium Enterprises has also approved a list of clusters under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and Micro and Small Enterprises Cluster Development Programme (MSE-CDP) located in 121 Minority Concentration Districts. Accordingly, banks have been advised to take appropriate measures to improve the credit flow to the identified clusters.  Banks have also been advised that they should open more MSE focused branch offices at different MSE clusters which can also act as counseling. Centre’s for MSEs Each lead bank of the district may adopt at least one cluster.

    1. Why is credit rating of the micro small borrowers important?

    With a view to facilitating credit flow to the MSME sector and enhancing the comfort-level of the lending institutions, the credit rating of MSME units done by reputed credit rating agencies and it should be encouraged

    1. Is credit rating mandatory for the MSE borrowers?

    Credit rating is not mandatory but it is in the interest of the MSE borrowers to get their credit rating done as it would help in credit pricing that is cost of funds (interest and other charges etc.) of the loans taken by them from banks.

    1. What are the guidelines for delayed payment of dues to the MSE borrowers?

    With the enactment of the Micro, Small and Medium Enterprises Development (MSMED), Act 2006, for the goods and services supplied by the MSEME units, payments have to be made by the buyers as under: The buyer is to make payment on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day. The agreement between seller and buyer shall not exceed more than 45 days. If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank. For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the interest as advised at above. In case of dispute with regard to any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council, constituted by the respective State Government. To take care of the payment obligations of large corporate borrowers to MSEs, banks have been advised that while sanctioning/renewing credit limits to their large corporate borrowers (i.e. borrowers enjoying working capital limits of Rs. 10 crore and above from the banking system), to fix separate sub-limits, within the overall limits, specifically for meeting payment obligations in respect of purchases from MSEs either on cash basis or on bill basis

    1. What is debt restructuring of advances?

    A viable/potentially viable unit may apply for a debt restructuring if it shows early stage of stickiness. In such cases the banks may consider to reschedule the debt for repayment, consider additional funds etc. A debt restructuring mechanism for units in MSME sector has been formulated and advised to all commercial banks.

    1. What is the definition of a sick unit?

    As per the extant guidelines, a Micro or Small Enterprise may be said to have become Sick, if· any of the borrower account of the enterprise remains NPA for three months or more. OR ·There is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year. This criterion enables banks to detect sickness at an early stage and facilitate corrective action for revival of the unit.

    1. Are all sick units put under rehabilitation by banks?

    No. If a sick unit is found potentially viable it can be rehabilitated by the banks. The viability of the unit is decided by banks. A unit should be declared unviable only if such a status is evidenced by a viability study.

    1. Can the MSE borrowers get collateral free loans from banks?

    Banks are mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the MSE sector. Further banks may, on the basis of good track record and financial position of MSE units, increase the limit of dispensation of collateral requirement for loans up to Rs.25 lakh with the approval of the appropriate authority.

    1. Is MSME updated to Udyog Aadhaar?

     Yes, MSME registration has been replaced with the Udyog Aadhaar registration. If any micro, small and medium industries want to start any business; they need to get the registration with MSME/Udyog Aadhaar

    1. Is Aadhaar card compulsory?

    Yes. For registration under the Udyog Aadhaar scheme, Aadhaar card is compulsory for a Sole Prop. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.

    1. Can existing and new businesses both apply?

    Yes, an existing and new business can apply for MSME/Udyog Aadhaar registration. Provided the existing unit is functioning and meets the threshold limits for registration under MSME – Criteria for an MSME has been revised now – Check

    1. What is the validity of the certificate?

    There is no expiry of the Udyog Aadhaar Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.



    1. Can trading companies (Who just buy and Sell) can register under MSME?

    No. MSME covers only manufacturing and service industries. Trading companies are not covered by the scheme. MSME is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme.

    1. Do I need multiple registrations for manufacturing plants in different cities?

    No. The MSME/Udyog Aadhaar certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.

    1. What are the activities specifically excluded from coverage under MSME?

    Ministry of Micro, Small and Medium Enterprises (MSME) has clarified that the activities that would be specifically not included in the manufacturing or production of commodities or rendering of services as per Section 7 of the said Act.

    1. Forest and Logging
    2. Fishing and aquaculture
    3. Wholesale, retail trade and repair of motor vehicle and motorcycles
    4. Wholesale trade except for motor vehicles and motorcycles.
    5. Retail Trade except of Motor Vehicles and motor cycles.
    6. Activities of households as employees for domestic personnel.
    7. Undifferentiated goods and services producing activities of private households for own.
    8. Activities of extraterritorial organization’s and bodies.

    Documents Required

    • Aadhaar card
    • Rent agreement
    • Property paper
    • Cancelled Cheque
    • Company Registration i.e., Sale or Purchase Bill and PAN card
    • Business Address Proof
    • For self-owned premise:Lease deed, property tax receipt, possession letter, allotment letter, etc.
    • For rented premise:NOC from the landlord, rent receipts, utility bills or document evidencing the landlord’s ownership, etc.

    Additional Documents

    • Copies of Sale and Purchase Bills
    • Partnership Deed
    • Memorandum of Association (MoA)
    • Articles of Association (AoA)
    • Copies of Licenses and Bills of Machinery Purchased.

    To get all the MSME benefits one has to get registered first and apply for a Udyog Aadhaar.

    Benefits of MSME Registration (IN SHORT)

    • MSME registration helps in getting government tenders.
    • Under bank loan, 15% import subsidy on fully automatic machinery.
    • Becomes easy to get licenses, approvals and registrations, irrespective of field of business.
    • Compensation of ISO certificate expenditure.
    • Helps in getting low interest rates.
    • Registered MSMEs gets tariff subsidies and tax and capital subsidies.
    • Gets exemption under Direct Tax Laws.
    • Credit Facilities without Collateral (Schemes discussed below)
    • Capital Subsidies for various manufacturing and service sector units
    • Incentives for various manufacturing and service sector units
    • 1 % Interest Reduction on Overdraft Loans and other loans
    • Startup India Scheme for Innovative Companies – 3 out of 10 Years – No Income Tax to be paid – Allowed as Deduction – Companies upto 10 Years in Existence are still considered Startup – This is Free
    • Generator Subsidy
    • Concessions on Electricity Bills
    • Subsidy on Patent Registration and few Trademarks
    • ISO Certification Charges Reimbursement
    • MDA Scheme for Registration for Bar Coding
    • Special Incentives for Companies Manufacturing COVID-19 Products like – Covid Testing Kits, Sanitizers (Alcohol Based), Ventilators, PPE Kits, 3Ply Surgical Masks, KN95 Masks/ N95 Masks, Hospital Mattresses & Pillows, Multipara Monitors, Medical Oxygen
    • Allows credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
    • There are many government tenders which are only open to the MSME Industries
    • Business registered under MSME are given higher preference for government license and certification.
    • Support if you are starting an Incubation Center.
    • Incentives for Employment Generation

    (Apply if you are facing issue with Non Payment on MSME SAMADHAAN Portal – Government will help in recovering the amount outstanding)



    1. Prime Minister’s Employment Generation Programme (PMEGP)
    2. Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)


    1. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
    2. MSE Cluster Development Programme (MSE-CDP)


    1. Design Clinic Scheme
    2. Lean Manufacturing Competitiveness Scheme (LMCS)
    3. Digital MSME Scheme
    4. Financial Support to MSMEs in ZED Certification Scheme
    5. Support for Entrepreneurial and Managerial Development of MSMEs through Incubators
    6. Tool Rooms & MSME Technology Centre’s




    Finance Minister announces short term and long-term measures for supporting the poor, including migrants, farmers, tiny businesses and street vendors

    • Free food grains supply to Migrants for 2 months.

    • Technology system to be used enabling Migrants to access PDS(Ration) from any Fair Price Shops in India by March,2021-One Nation one Ration Card

    • Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched

    • 2% Interest Subvention for 12 months for Shishu MUDRA loanees- Relief of Rs. 1500 crore

    • Rs 5000 crore Credit facility for Street Vendors.

    • Rs70,000 crore boost to housing sector and middle income group through extension of Credit Linked Subsidy Scheme for MIG under PMAY(Urban)

    • Rs 6,000 crore for Creating employment using CAMPA funds

    • Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD

    • Rs 2 lakh crore concessional credit boost to 2.5 crore farmers under Kisan Credit Card Scheme

    Posted On: 14 MAY 2020 6:59PM by PIB Delhi

    Hon’ble Prime Minister announced a Special economic and comprehensive package of Rs 20 lakh Crore – equivalent to 10% of India’s GDP on 12th May 2020. He gave a clarion call for आत्मनिर्भर भारत अभियान or Self-Reliant India Movement. He also outlined five pillars of Aatmanirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.

    Announcing the 2nd Tranche of measures to ameliorate the hardships faced specifically by migrant labours, street vendors, migrant urban poor, small traders self-employed people, small farmers and housing, Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman today in her press conference detailed the short term and long-term measures for supporting the poor, including migrants, farmers, tiny businesses and street vendors.

    Smt. Sitharaman stated that Hon’ble Prime Minister Shri Narendra Modi is always concerned about the difficulties faced by poor, including migrant workers and farmers. Farmers and workers are the backbone of this nation. They serve all of us with their sweat and toil. Migrant workers need affordable and convenient rental housing in urban areas in addition to social security. There is also a need to create employment opportunities for the poor, including migrant and unorganised workers. Farmers need timely and adequate credit support.

    Smt. Sitharaman said that the Government is attentive to the needs to all the segments of economy and society.She also mentioned that small business set ups, especially those run by street vendors, support dignified livelihoods through Shishu MUDRA loans. They also need our patronage by way of business as well as caring attention in the form of social security and enhanced credit.

    Following short term and long-term measures for supporting the poor, including migrants, farmers, tiny businesses and street vendors were announced today:-

    1. Free food grains supply to migrants for 2 months

    For the migrant labour, additional food grain to all the States/UTs at the rate of 5 kg per migrant labourer and 1 kg Chana per family per month for two months i.e. May and June, 2020 free of cost shall be allocated. Migrant labourers not covered under National Food Security Act or without a ration card in the State/UT in which they are stranded at present will be eligible. States/UTs shall be advised to put a mechanism for targeted distribution as envisaged in the scheme. 8 Lakh MT of food-grain and 50,000 MT of Chana shall be allocated. The entire outlay of Rs. 3500 crore will be borne by Government of India.


    1. Technology system to be used enabling Migrants to access PDS (Ration) from any Fair Price Shops in India by March,2021-One Nation one Ration Card


    Pilot scheme for portability of ration cards will be extended to 23 states. By that, 67 crore beneficiaries covering 83% of PDS population will be covered by National portability of Ration cards by August, 2020. 100% National portability will be achieved by March, 2021. This is part of PM’s Technology Driven System Reforms This scheme will enable a migrant worker and their family members to access PDS benefits from any Fair Price Shop in the country. This will ensure that the people in transit, especially migrant workers can also get the benefit of PDS benefit across the country.


    1. Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched


    Central Government will launch a scheme for migrant workers and urban poor to provide ease of living at affordable rent. Affordable Rental Housing Complexes will provide social security and quality life to migrant labour, urban poor, and students etc.This will be done through converting government funded houses in the cities into Affordable Rental Housing Complexes (ARHC) under PPP mode through concessionaire; manufacturing units, industries, institutions, associations to develop Affordable Rental Housing Complexes (ARHC) on their private land and operate; and Incentivizing  State Govt agencies/Central Government Organizations on similar lines to develop Affordable Rental Housing Complexes (ARHC) and operate. The exact details of the scheme will be released by the Ministry/Department.



    1. 2% Interest Subvention for 12 months for Shishu MUDRA loanees- Relief of Rs. 1,500 crore


    Government of India will provide Interest subvention of 2% for prompt payees for a period of 12 months to MUDRA Shishu loanees, who have loans below Rs 50,000.The current portfolio of MUDRA Shishu loans is around Rs 1.62 Lakh crore. This will provide relief of about Rs 1,500 crore to Shishu MUDRA loanee.


    1. Rs 5,000 crore Credit facility for Street Vendors


    special scheme will be launched within a month to facilitate easy access to credit to Street vendors, who  are amongst the most adversely impacted by the present situation for enabling them to restart their businesses. Under this scheme, bank credit facility for initial working capital up to Rs. 10,000 for each enterprise will be extended. This scheme will cover urban as well as rural vendors doing business in the adjoining urban areas. Use of digital payments and timely repayments will be incentivized through monetary rewards. It is expected that 50 lakh street vendors will be benefitted under this scheme and credit of Rs. 5,000 crore would flow to them. 


    1. Rs 70,000 crore boost to housing sector and middle income group through extension of  Credit Linked Subsidy Scheme for MIG under PMAY(Urban)


    The Credit Linked Subsidy Scheme for Middle Income Group (annual Income between Rs 6 and 18 lakhs) will be extended up to March 2021. This will benefit 2.5 lakhs middle income families during 2020-21 and will lead to investment of over Rs 70,000 crore in housing sector. This will create significant number of jobs by giving boost to Housing sector and will stimulate demand for steel, cement, transport and other construction materials.


    1. Rs 6,000 crore for Creating employment using CAMPA funds

    Approximately Rs 6,000 crore of funds under Compensatory Afforestation Management & Planning Authority (CAMPA) will be used for Afforestation and Plantation works, including in urban areas, Artificial regeneration, assisted natural regeneration, Forest management, soil & moisture conservation works, Forest protection, forest and wildlife related infrastructure development, wildlife protection and management etc. Government of India will grant immediate approval to these plans amounting to Rs 6000 crore. This will create job opportunities in urban, semi-urban and rural areas and also for Tribals (Adivashis).


    1. Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD


    NABARD will extend additional re-finance support of Rs 30,000 crore for meeting crop loan requirement of Rural Cooperative Banks and RRBs. This refinance will be front-loaded and available on tap. This is over and above Rs 90,000 crore that will be provided by NABARD to this sector in the normal course. This will benefit around 3 crore farmers, mostly small and marginal and it will meet their post-harvest Rabi and current Kharif requirements.

    1. Rs 2 lakh crore credit boost to 2.5 crore farmers  under Kisan Credit Card Scheme


    A special drive to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards. Fisherman and Animal Husbandy Farmers will also be included in this drive. This will inject additional liquidity of  Rs 2 lakh crore in the farm sector. 2.5 crore farmers will be covered.

    Ministry of Finance

    Central Public Sector Enterprises (32 Maharatnas and Navratnas) due payments to MSMEs

    Posted On: 15 MAY 2020 6:08PM by PIB Delhi

    The Department of Expenditure, Ministry of Finance, has been monitoring, on a monthly basis, the performance of the 32 top Maharatna and Navratna Central Public Sector Enterprises (CPSEs) to review their capital expenditure and the dues to vendors with specific emphasis on MSME vendors since August 2019.

    Clear directions have been given that the CPSEs must ensure that regular payments are cleared expeditiously as it spurs investment cycle. Special efforts must be made to clear dues of MSMEs and resolve cases on the SAMADHAN portal of Department of MSME. Secretary (Expenditure) wrote a letter in the last week of April 2020 to the Secretaries of the Ministers and Departments requesting them to monitor the due payments by the CPSEs.

    Public procurement as a percentage of GDP in the country is estimated between 20% to 22%. The share of the gross turnover of CPSEs to the Gross Domestic Product (GDP) of India at current prices is around 15 to 16%. The Government wants the CPSEs to double their contribution to the Gross Domestic Product (GDP) and be the “third major source” of revenue for the Centre after direct and indirect taxes. CPSEs must make efforts to reduce the country’s imports bill and expanding India’s global strategic reach by 2022.

    Responding to the instructions given by the Union Minster of Finance & Corporate Affairs Smt. Nirmala Sitahraman in her meeting with the top officials of the CPSEs in September 2019 and constant monitoring by Department of Expenditure, CPSEs have reduced their payment cycle considerably for the vendors in general and MSME vendors in particular.

    Data collected from the CPSEs as on 31st March 2020 showed that they had pending bills from the MSMEs worth Rs. 775.76 crore as on 1st March 2020. Bills worth Rs. 2,730.46 crore were received during the month and a total of Rs. 2,813.39 crore were paid till 31st March 2020.  For the month of April 2020, bills worth Rs. 1,598.27 crore were received and the CPSEs made payment of Rs. 1,785.78 crore leaving a balance of Rs. 512.34 crore. It has been stated that majority of the bills were received in the last week of April and under process for payment.

    Government Changes MSME Definition, Revises Investment Limit Upwards

    A company with investment of up to Rs 1 crore and turnover of Rs 5 crore will now be a micro company, Finance Minister said.

    Government on Wednesday changed the definition of micro, small and medium enterprises (MSMEs) as part of the Atma Nirbhar Bharat Abhiyan (self-reliant India) economic relief package announced by Prime Minister Narendra Modi on Tuesday.

    “Definition of MSMEs is being changed in favour of MSMEs,” Finance Minister Nirmala Sitharaman said while providing details of the government’s Rs 20 lakh crore economic relief package to spur growth which has been hit hard by the COVID-19 induced lockdown.

    The new definition of MSMEs does not differentiate between a manufacturing enterprise and a service sector enterprise, Ms Sitharaman said.

    From now on, a company with an investment of up to Rs 1 crore and turnover of Rs 5 crore will be a micro company. Earlier, a service sector company with investment of up to Rs 10 lakh and a manufacturing company with investment of Rs 25 lakh was defined as a micro company.

    Likewise, a company with an investment of up to Rs 10 crore and turnover of Rs 50 crore has been defined as a small company and a company with investment of up to Rs 20 crore and turnover of Rs 100 crore has been defined as a medium company.

    Among other relief measures for the MSMEs, government also disallowed global tenders for government procurement of up to Rs 200 crore

    MSMEs may now get their grievances resolved within 7 days through this new govt portal

    MSME ministry has also integrated its recently launched portal —— for MSMEs to share their ideas, innovation, and research in respective sectors for public reviews for vetting before launching them within the Champions portal.

    Read more at-