Indian Government Launches New Units of MSMEs and Other Benefits

The Indian government simplified the process of registration of MSMEs by replacing the UdyogAadhaar Memorandum (UAM) with Udyam Registration
  • BY BEx Bureau
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  • Jul 20, 2021
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  • 5 Mins Read

The Indian government simplified the process of registration of MSMEs by replacing the UdyogAadhaar Memorandum (UAM) with Udyam Registration (UR) on 1st July 2020. UR is free of cost, transparent, online, hassle free and is based on self-declaration. It does not require any documents and has an automatic integration with ITR and GSTIN. During the second wave of Covid -19 pandemic, MSMEs continued to register on UR Portal.

MSMEs can avail the benefits of schemes such as Prime Minister Employment Generation Programme (PMEGP)/Rural Employment Generation Programme (REGP)/Micro Units Development Refinance Agency (MUDRA) and the announcements made to provide relief to MSMEs from the problems faced due to COVID-19 pandemic. The number of Projects and Employment generation under PMEGP during 2020-21 as on July, 2021 are 91,054 and 7,28,432, respectively.

In addition to that, the Indian government has announced a Fund of Funds with the nomenclature Self Reliant India (SRI) Fund to infuse INR 50,000 crore as equity funding in those MSMEs which have the potential and viability to grow and become large units. Under this scheme, the total size of the fund INR 50,000 crore has a provision of INR 10,000 crore from the government and INR 40,000 crore leverage through Private Equity or Venture Capital funds. The guidelines of the fund have been issued. This initiative is aimed at providing growth capital to the deserving and eligible units of the MSME sector.



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