Daily Current Affairs

Prelims Prominence - May 5, 2018

Micro, Small & Medium Enterprises (MSME) events round the year

Govt changes definition of MSMEs, bases it on annual revenue Now definition based on turnover

  • Redefinition of micro, small and medium enterprises, or MSMEs, based on their annual revenue, replacing the current definition that relies on self-declared investment on plant and machinery.
  • The move is in addition to steps being taken to stimulate the MSME sector’s growth, including a cut in corporate tax from 30% to 25%, announced in the Union budget
  • The central bank raised the repayment period before MSME loans are classified as bad loans from 90 days to 180 days.
  • According to the government’s new definition, businesses with revenue of as much as Rs 5 crore will be called a micro enterprise, those with sales between Rs 5 crore and Rs 75 crore will be deemed as small and those with revenue between Rs 75 crore and Rs 250 crore will be classified as medium-sized enterprises.
  • Finance minister Arun Jaitley proposed a 25% corporate tax rate for entities with sales of up to Rs 250 crore in the budget.

Earlier definition –

  • Manufacturers with Rs 25 lakh investment in plant and machinery were termed micro enterprises and those with investments between Rs 25 lakh and Rs 5 crore were regarded as small enterprises. Firms with investments of up to Rs 10 crore are classified as medium.

Digital MSME Scheme launched

  • The Digital MSME Scheme is revolving around Cloud Computing which is emerging as a cost effective and viable alternative in comparison to in-house IT infrastructure installed by MSMEs.
  • Package for supporting Micro and Small Enterprises (MSEs) approved – Corpus of Credit Guarantee Trust Fund for Micro, and Small Enterprises (CGTMSE) augmented:
  • Corpus of the Trust augmented from Rs. 2,500 crore to Rs. 7,500 crore and will be fully funded by the Government of India.
  • Coverage of the loans covered under the Credit Guarantee Scheme from Rs.1 crore to Rs.2 crore increased.
  • Coverage of the Credit Guarantee Scheme for loans being extended to Micro and Small Enterprises by NBFCs increased
  • Technology Centres are being established in 8 cities viz., Puducherry, Visakhapatnam, Rohtak, Durg, Baddi, Bhiwadi, Bengaluru and Sitarganj

MSME Delayed Payment Portal – MSME Samadhaan http://samadhaan.msme.gov.in launched

  • This Portal will empower Micro and Small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries/Departments/CPSEs/State Governments.
  • The Portal will give information about the pending payment of MSEs with individual CPSEs / Central Ministries, State Governments, etc.
  • The CEOs of PSEs and the Secretary of the Ministries concerned will also be able to monitor the cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues.
  • The Portal will greatly facilitate the monitoring of the delayed payment in a more effective manner.
  • The information on the Portal will be available in public domain, thus exerting moral pressure on the defaulting organizations.
  • The MSEs will also be empowered to access the Portal and monitor their cases.

Public Procurement Portal for MSEs – MSME Sambandh htttp://sambandh.msme.gov.in launched:

  • The Portal will help in monitoring the implementation of the Public Procurement from MSEs by Central Public Sector Enterprises(CPSEs).
  • MOU signed between India and United Arab Emirates (UAE) for co-operation in the field of Small and Medium Enterprises and Innovation
  • MOUs signed with 4 Sector Skill Councils to provide skill development trainings to SC-ST Entrepreneurs under National SC/ST Hub Scheme.

Ministry of Rural Development

Achievement/Initiatives during 2017-18

  • Uploading of geo tagged and time stamped photographs of beneficiaries in front of their existing dwellings, using the mobile Application viz. Awaas App, has been made mandatory for sanctioning houses under PMAY-G.
  • Under GeoMGNREGA, using space technology, more than 2 crore assets have been geotagged and made available in the public domain.
  • As per the Socio-Economic Caste Census - 2011 (SECC), around 5.40 Crore households fall under the category landless households dependent on manual casual labour for livelihood

Pradhan Mantri Gram Sadak Yojana (PMGSY)

  • A Mobile Application “Meri Sadak” launched to enable citizens to register complaints regarding the quality and pace of construction of PMGSY roads.

National Social Assistance Programme (NSAP)

NSAP comprises of five sub-schemes namely

1. Indira Gandhi National Old Age Pension Scheme (IGNOAPS),
2. Indira Gandhi National Widow Pension Scheme (IGNWPS),
3. Indira Gandhi National Disability Pension Scheme (IGNDPS),
4. National Family Benefit Scheme (NFBS) and
5. Annapurna Scheme.

The schemes of NSAP are implemented both in urban and rural areas, by the Social Welfare Department in the States.

  • NSAP has been included under Direct Benefit Transfer (DBT) scheme and in the current year State of Gujarat and UT of Lakshadweep are using 100% transfer through DBT mechanism. DBT has been partially implemented in the States of Jharkhand, Haryana, Maharashtra and Chhattisgarh.
  • For preventing leakages of funds to unintended beneficiaries 100% records have been digitized
  • There is proposal to revamp the National Social Assistance Programme (NSAP) as Pradhan Mantri Samajik Suraksha Yojana (PMSaSY) admissible to 5.07 crore beneficiaries.

Deen Dayal Antyodaya Yojana-National Rural Livelihoods Mission

  • More than 33 lakh Mahila Kisans have been covered under Mahila Kisan Sashaktikaran Pariyojana (MKSP) in 17 States, to empower women in agriculture and enhance their participation and productivity in agriculture based livelihoods.
  • “Aajeevika Grameen Express Yojana (AGEY)” has been initiated as a sub scheme under DAY-NRLM to provide an alternative source of livelihoods to members of Self Help Groups (SHGs) under DAY-NRLM by facilitating them to operate public transport services in backward rural areas and to provide safe, affordable and community monitored rural transport services (e-rickshaws, 3 and 4 wheeler motorised transport vehicles) to connect remote villages with key services and amenities (including access to markets, education and health) for the overall economic development of the area by making use of the supports available within the framework of DAY-NRLM.
  • The sub-scheme will be implemented in 250 blocks in the country on a pilot basis for a period of 3 years from 2017-18 to 2019-20. Till date, proposals from 17 States have been approved and 153 vehicles have started operating in rural areas.

Promotion of rural enterprises

  • Start Up Village Entrepreneurship Programme (SVEP) is a sub-scheme of DAY-NRLM designed to support rural youth to take up local entrepreneurship

Deendayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

  • DDU-GKY is a placement linked skill-training programme and is uniquely placed to empower rural poor youth with employable skills and facilitate their participation in regular labour market. It is currently being implemented in 28 States.

Rural Self Employment Training Institutes (RSETIs)

  • At present RSETIs are offering training in more than 56 vocations classified under major areas like agriculture, processing, product manufacture and general EDP.
  • The National Centre for Excellence of RSETIs (NACER) was selected by ASSOCHAM for “Best NGO in Skill Development” for remarkable contribution in Entrepreneurship Development through RSETIs for the year 2016-17.
  • Another initiative "Kaushal Panjee" (Skill Register) has also been undertaken which provides a citizen centric end-to-end solution to aid mobilization of candidates for Rural Self Employment and Training Institutes (RSETIs) and DDU-GKY.

Saansad Adarsh Gram Yojana (SAGY)

  • Saansad Adarsh Gram Yojana (SAGY) was launched by Hon’ble Prime Minister on 11th October 2014 with the objective of creating model Gram Panchayats in all parts of the country.
  • The development of SAGY Gram Panchayats takes place under the guidance of Hon’ble Members of Parliament through the convergence and implementation of existing Government Schemes and Programmes without allocating any additional funds.

Sources – PIB, Ministry of Defence, Govt websites