Ministry of Finance

Posted On: 01 FEB 2019 1:33PM by PIB Delhi

The Government has taken several measures to strengthen the Medium, Small and Micro Enterprises (MSMEs). While a Scheme of sanctioning loans upto ₹ 1 crore in 59 minutes has been launched, GST-Registered SME units will get 2% interest rebate on incremental loan of ₹ 1 crore. While presenting the Interim Budget 2019-20 in Parliament today, the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal said that 25% sourcing by all the Government Undertakings will now have to be from SMEs. Of this, the material to the extent of at least 3% will be sourced from women owned SMEs, he added.

Highlighting the achievements of GeM, Shri Piyush Goyal said that transactions of over ₹ 17,500 crore have taken place, resulting in savings of 25-28% on an average. “Government e-Marketplace (GeM), created by our Government two years ago, has transformed public procurement by making it fully transparent, inclusive and efficient. MSMEs have an opportunity to sell their products through GeM”, the Finance Minister said. The GeM platform is now being extended to all CPSEs, he announced while presenting the Interim Budget.

Shri Piyush Goyal disclosed that the Government has recently assigned the subject of “promotion of internal trade including retail trading and welfare of traders, and their employees” to the Department of Industrial Policy and Promotion, which will now be renamed as the Department for Promotion of Industries and Internal Trade.

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Public procurement sourcing mandate boosts SME participation with reserved procurement and women owned enterprise targets in government purchases. The interim budget introduces credit support and procurement reforms to strengthen MSMEs: a rapid loan sanctioning scheme, an interest rebate for GST registered SMEs on incremental lending, a mandatory procurement quota for MSMEs with a sub target for women owned firms, extension of the Government e Marketplace (GeM) to all CPSEs, and reassignment of internal trade promotion to the Department for Promotion of Industries and Internal Trade.