Page 44 - Banking Finance April 2021

ARTICLE

(Source: Annual Report 2018-19, MSME, GOI)

With the government 'Make in India' push, along with a push Benefits of Udyog Aadhaar/ MSME/ SSI
to attract greater FDI, MSMEs sector is set for rapid growth Registration
and integration with major global value chains.
Y Collateral Free Loans from Bank

But one major problem is very low registration of MSME, Y Protection against delay in payment
as maximum units are operating as an unorganized sector. Y Reservation policies to manufacturing/production
As per the National Sample Survey Office, Ministry of sector
Statistics & Programme Implementation, there are 633.88 Y Reduction in rate of Interest from banks
lakh unincorporated non-agriculture MSMEs in the country Y Easy to get Licenses, approvals and registrations
engaged in different economic activities (196.65 lakh in
Y 15% CLCSS subsidy. Octroi Benefits
Manufacturing, 0.03 lakh in Non-captive Electricity
Y Special consideration on international trade fairs.
Generation and Transmission, 230.35 lakh in Trade and
206.85 lakh in Other Services). As per data only 137.62 lacs Y Waiver in Security Deposit in Government- Exemption
unit have registered themselves in the portal. from payment of Earnest Money, Issue of tender sets
free of cost, Waiver of Security Deposit up to the
Monetary Limit for which at the unit is registered.
Registering as MSME will help these units to avail various
Y Concession in electricity bills
benefits/scheme of the government from time to time. To
encourage MSME registration in India, the ministry of MSME Y Waiver of Stamp Duty and Registration Fees
has notified a simple one-page registration form called Y Reimbursement of ISO Certification
'Udyog Aadhaar Memorandum'. Y Exemption under Direct Tax Laws

Y 1% exemption on the interest rate on OD
The entrepreneurs in the MSME sector can file the form
Y Bar Code registration subsidy
online, and instantly get a unique Udyog Aadhaar Number
Y Excise Exemption Scheme
(UAN). The information sought includes personal Aadhaar
number, industry name, address of the business, bank Y Subsidy on NSIC Performance and Credit ratings
account details, and other general information. Applicants Y 50% subsidy for patent registration
can provide this information on a self-certification basis and Y Enterprises having MSME Registration are eligible for
do not need any supporting documents. Industrial Promotion Subsidy (IPS)

44 | 2021 | APRIL | BANKING FINANCE