Budget 2014: MSME Ministry for Single-Window Clearance, Time-Bound Loans
The Ministry of Micro, Small and Medium Enterprises (MSME) will seek to put in place a single-window clearance mechanism along with setting specific timeframes for grant of loans, easier labour laws and simplification of processes as a part of roadmap to revitalise the sector, Union Minister Kalraj Mishra has said.
The above suggestions will be part of the 10-slide presentation by the ministry before Prime Minister Narendra Modi on June 27.
"Several small industries have turned sick because they have to approach several departments to attain no-objection certificate (NOC) from state governments for electricity, water, etc. Despite talk of collateral-free loans, MSMEs face difficulties in availing loans," MSME Minister Kalraj Mishra said on the sidelines of an NSIC event.
"Moreover, there is scarcity of land, and labour laws are complicated. We are preparing a plan to simplify processes and accord single-window clearance. We will decide a timeline of say 15 days, one month for entrepreneurs to acquire necessary clearances and to get loans within a specified timeframe. The presentation (to the PM) will contain all these suggestions."
The minister visited the rapid incubation centre of National Small Industries Corporation (NSIC) and lauded its efforts to create self-employment opportunities in the country.
The Prime Minister is slated to meet ministers and secretaries of mines, steel and MSME ministries, among others, on June 27 to discuss sectoral problems and draw roadmap to rejuvenate the sectors.
The MSME Ministry is presently being governed by the industrial policy as it does not have a policy of its own.
It may also highlight the need for a separate policy in the presentation.
"We shall design policies to enable the youth to attain self-employment through entrepreneurship and create jobs," Mr Mishra said.
The 10-slide presentation by each ministry is likely to highlight their role and functions, current scenario of the respective sectors, achievements, concerns arising out of the recent developments, gap between aspiration and outcome and the next five-year agenda.
The Cabinet Secretariat had earlier asked the Secretaries to prepare a 10-slide presentation for the Prime Minister listing success and failures of the past regime as well as points of action for the next five years.
Asked about the recent hike in railway passenger fares and freight rates by the government, Mr Mishra said, "We are committed to provide good governance, to fast-rack growth and to provide jobs to the youth. We may have to take tough decisions to fulfil these commitments. We have hiked rail fares taking into consideration all these things".
Mr Mishra also hoped for higher funds allocation for the MSME Ministry from the upcoming budget.
