Clipped from: https://www.financialexpress.com/industry/sme/msme-eodb-nearly-5-lakh-informal-micro-units-formalised-in-a-month-via-new-udyam-assist-platform-msme-min/2981452/?utm_source=sme_landing_page&utm_medium=article_listing_widget&utm_campaign=Tags
Ease of doing business for MSMEs: The portal intends to ‘assist’ informal micro units, which are not registered with GST authorities, through a digital and paperless medium, according to the information available on the UAP portal.
The UAP is part of the government’s move to formalise the MSME sector which has over 99 per cent representation from micro enterprises out of overall around 6.3 crore businesses.
Ease of doing business for MSMEs: The new Udyam Assist Platform (UAP) launched by the MSME Ministry to formalise micro enterprises has turned 4.7 lakh informal micro enterprises (IMEs) into formal businesses in less than a month. Launched on January 11, 2023, with 8 lakh registered IMEs, the platform had an overall 12.7 lakh registered micro units as of February 9, 2023.
Sharing the data in the Lok Sabha, the minister of state in the MSME ministry Bhanu Pratap Singh Verma said the platform was launched “to bring IMEs under the formal ambit for availing the benefits under Priority Sector Lending.”
These registered units are beneficiaries of the government’s scheme for street vendors PM SVANidhi scheme which provides a collateral-free working capital loan of up to Rs 10,000 to formalise street vendors. Launched in June 2020, the scheme had disbursed 41.34 lakh loans involving Rs 4,921 crore out of 46.88 lakh loans sanctioned as of Tuesday, according to the scheme’s data available on its portal.
Also read: Udyam Assist Platform: MSME Min launches new platform to boost registration of informal micro units
The UAP is part of the government’s move to formalise the MSME sector which has over 99 per cent representation from micro enterprises out of overall around 6.3 crore businesses. The portal intends to ‘assist’ informal micro units, which are not registered with GST authorities, through a digital and paperless medium, according to the information available on the UAP portal.
The portal requires financial institutions called Designated Agencies (DAs) such as banks, non-banking financial companies (NBFCs), micro finance institutions (MFIS), small finance banks, regional rural banks, scheduled cooperative banks, etc., to share data — of their informal micro enterprise customers — required for their registration. The portal then validates the data and registers the enterprise on the Udyam registration portal and generates the registration number along with an Udyam Assist Certificate (UAC).
Also read: Explained: How new Udyam Assist Platform for micro enterprise registration works? Check details
Importantly, a report by the standing committee on finance headed by Jayant Sinha, Member of Parliament and former Minister of State for Finance had discussed developing the portal to formalise IMEs in April last year. According to the report, “Apart from making the registered entities eligible for benefits under government schemes, they can also be seamlessly connected to the fast-emerging digital ecosystem including platforms like GeM, TReDS, Invoicemart, other digital marketplaces, etc.”
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