Government Schemes Current Affairs - 2020

PM launches Support and Outreach Programme for MSME Sector

Prime Minister Narendra Modi launched Micro, Small and Medium Enterprises (MSME) Support and Outreach Programme. As part of this programme, PM unveiled 12 key initiatives which will help the growth, expansion and facilitation of MSMEs across the country. There are five key aspects for facilitating the MSME sector. These include access to credit, access to market, technology upgradation, ease of doing business, and sense of security for employees.

MSME Outreach Programme

It aims to boost MSME sector it is one of important sector for major generations of employment opportunities. It will run for 100 days covering 100 Districts throughout the country. Various Central Ministers will visit these districts in order to apprise entrepreneurs about various facilities being extended to MSME Sector by Union Government and financial institutions. Under it, entrepreneurs will be encouraged to come forward and make best use of these facilities including access to credit and market, etc.

Under Access to Credit aspect of this porgramme, Government will launch 59 minute loan portal to enable easy access to credit for MSMEs. Loans upto Rs. 1 crore will be granted in-principle approval through this portal, in just 59 minutes. The link to this portal will be available at GST portal.

Government will give 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans. For exporters who receive loans in pre-shipment and post-shipment period will get increase in interest rebate ranging from 3% to 5%.

All MSMEs or companies with turnover more than Rs. 500 crore will now be compulsorily brought on Trade Receivables e-Discounting System (TReDS). This will enable entrepreneurs to access credit from banks, based ontheir upcoming receivables. This will help to resolve their problems of cash cycle.

For access to markets for entrepreneurs, Union Government has taken number and now it is mandatory for public sector companies to procure 25 %t, instead of 20% of their total purchases from MSMEs. Out of the 25% procurement mandated from MSMEs, 3% is reserved for women entrepreneurs. It is mandatory for all PSUs of Union Government to be part of GeM.

For Technology Upgradation, Government will form 20 hubs and 100 spokes in the form of tool rooms will be established vital part of product design. For ease of doing business, government will establish clusters of pharma MSMEs. 70% cost of establishing these clusters will be borne by the Union Government.

For simplification of government procedures, the return under 8 labour laws and 10 Union regulations will be now filed only once year. Now establishments to be visited by an Inspector will be decided through computerised random allotment.

Air pollution and water pollution laws now have been merged, and henceforth under them single consent and will be required, besides return will be accepted through self-certification. Government has promulgated ordinance under which, for minor violations under the Companies Act, entrepreneur will no longer have to approach Courts, but can correct them through simple procedures. For Social Security for MSME Sector Employees, government will launch mission to ensure that they have Jan Dhan Accounts, provident fund and insurance.

Odisha Government launches Saura Jalnidhi scheme

Odisha Government has launched Saura Jalnidhi scheme to encourage use of solar energy in irrigation by farmers. Under this scheme, farmers will be given 90% subsidy and 5,000 solar pumps. This will provide irrigation benefits in 2,500 acres of the state. The beneficiary of this scheme will be farmers who have valid farmer identity cards and have minimum 0.5 acres of agricultural land.

Saura Jalnidhi scheme

The scheme was launched as part of state government’s endeavor to increase the use of solar photovoltaic pump sets in those areas so that irrigation facilities can be provided where power system is bad. For this scheme, state government has made a provision of Rs 27.18 crore in the financial year 2017-18.

In the first phase, this scheme will be available in those areas where electricity is not available for running the pump set. This scheme will generate 1.52 lakh human day employments annually and provided livelihood to around 5,000 families and also reduce carbon footprints.

Under this scheme, farmers will be provided with a well-equipped solar pump irrigation system in convergence mode. It will help to reduce burden of input cost on farmers and also increase agricultural income. It will promote the use of green energy and reduce pollution.