MSME: Government readies loan, social security plan for MSMEs – The Economic Times

The government is set to announce a package of benefits for micro, small and medium enterprises (MSMEs) spread across 80 clusters that will cover credit flow, steps to improve market access and ensuring social security benefits for workers through a targeted approach like the one for aspirational districts.

A detailed scheme is to be announced by PM Narendra Modi in what is seen as a pre-election push for a sector that employs over a 100 million people in 63 million units.

The list of clusters range from food processing units in Vishakapatnam to steel ancillary in Bokaro (Jharkhand), large cardamom in Sikkim, sports goods in Meerut and leather goods in Agra with joint secretary and additional secretary-rank officers from the Centre designated as ‘prabharis’. They will work with officers from banks, EPFO, ECIS, SIDBI, state government and district administration to meet the targets.

The government is following a similar approach for 117 aspirational or backward districts with prabharis working with the district and state authorities in meeting targets related to health, education, sanitation and farming.

Government officials said the recently-launched portal to sanction loans in 59 minutes will be pushed under the scheme. Similarly, an attempt will be made to get the MSMEs on to the government e-marketplace (GeM) portal so that departments and other agencies can buy directly from the small units. Key thrust is also being given to quality certification, officials said.

The latest move is seen to be targeted at boosting jobs in the employment intensive sectors. Besides, it is being seen as a means to appease small businessmen.