Jaitley launches data drive for MSMEs, govt to provide incentives, funding soon
Finance Minister Arun Jaitley will launch a databank to gather information about micro, small and medium enterprises (MSMEs) on Thursday besides Online Finance Facilitation Centres to provide collective funding options for MSMEs.
Through the databank, we shall carry out a census of MSMEs online for the first time. The move to go online will help save money as the previous census conducted in 2008 cost Rs 50 crore, whereas this one is expected to be completed in just around Rs 1 crore. Moreover, this time, we will also be capturing data of MSME Associations. The census process will start formally tomorrow with the launch of the data bank," said KK Jalan.
Armed with the data, MSME Ministry will be able to plan development activities and incentive programmes in an improved manner. Government had recently notified new rules for micro, small and medium enterprises (MSMEs) to furnish information in the prescribed format.
According to the MSME Development (Furnishing of Information) Rules, 2016, MSMEs need to furnish basic details to the Central government online in the databank maintained by it on msmedatabank
Six Online Finance Facilitation Centres in Jalandhar Ludhiana, Guwahati, Lucknow, Peenia and Delhi will be opened tomorrow. We plan to unveil six more in the near future, Jalan said.
The centres will operate as a one-stop-shop by providing collective financing options for MSMEs sourced from major financial institutions. It will also aid the enterprises with documentation work and help them prepare bankable project proposals. Jaitley to launch MSME databank, finance facilitation centres
In March this year, the Reserve Bank had revised rules pertaining to revival of advances to small businesses and asked lenders to form district-level committees to resolve stressed loans to MSMEs.
The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India, is the apex body for the formulation and administration of rules, regulations and laws relating to MSMEs in India.