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PM Modi announced “Diwali gift” loans up to Rs 1 crore in 59 minutes

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New Delhi.  Prime Minister Narendra Modi announced his “Diwali gift” for small and medium enterprises on Friday said that loans of up to Rs 1 crore will be sanctioned in 59 minutes through a special portal as part of the Centre’s Micro, Small and Medium Enterprises (MSME) Support and Outreach programme.

“I dedicate the 59-minute loan approval portal to you. All GST-registered small and medium enterprises can now avail a loan of up to Rs 1 crore in just 59 minutes,” PM Modi said while addressing the crowd at the launch of the programme at Vigyan Bhavan in the national capital.

“Also, GST-registered MSMEs will get two per cent interest subvention or rebate on an incremental loan of up to Rs 1 crore,” the prime minister said.

The programme was announced as part of a slew of measures by the Centre to give a boost to the country’s second largest employing sector.

Besides this, the government, the PM said, has decided to increase interest subvention on pre and post-shipment credit from three to five per cent.

“Interest subvention on pre and post shipment credit for exports by MSMEs has been increased from three per cent to five per cent,” he said.

Modi also announced that inspections of factories in the sector will be sanctioned only through a computerised random allotment and inspectors will have to upload reports on the portal within 48 hours.

“No inspector can now go anywhere. He will be asked why he went to a factory,” he said as reported by Indian Express.

PM also said that MSMEs will have to file just one annual return on eight labour laws and 10 central rules. He added that an ordinance has been promulgated to simplify levy of penalties for minor offences under the Companies Act.

Public sector companies, which were mandated to source 20 per cent of their annual procurement from MSMEs, will now source at least a quarter of their requirement (25 per cent) from the sector; three per cent of sourcing by PSUs would have to be done from MSMEs run by women, Modi said.

Hailing India’s improvement on World Bank’s latest ‘Ease of Doing Business’ ranking, Modi said in four years, his government has achieved what many did not believe and achieved what no other nation in the world has done – leaping from 142 rank in 2014 to 77th rank.

“It is a matter of pride for us that India has taken a high jump of 23 ranks in ‘Ease of Doing Business’ ranking this time. Four years ago, when this government wasn’t in power, we were at the 142th position.

Today, we are at the 77th rank and I believe that “top 50″ isn’t too far from our reach,” he told the audience.

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