Small Businesses, Start-ups, SME Owners! Many of our Budget suggestions have been addressed, some in total, some partially. We are grateful to the Honble Prime Minister, Finance Minister and Union Minister for MSMEs for accepting most of our suggestions and appeals. Heres a brief note: FOR MSMEs…. POSITIVES FROM THE BUDGET: • The government has proposed to set up a ` 10,000 crore fund to provide capital for start-up companies and business companies. # (IamSMEofIndia & FSIA have suggested setting up of such a fund) • Set up of “Start Up Village Entrepreneurship Programme” to encourage rural youth to take up local entrepreneurship programmes. # (IamSMEofIndia & FSIA suggested setting up of Entrepreneurship Development Centres in each District) • The government will set up a committee to examine the financial architecture for MSME sector, remove bottlenecks and create new rules and structures to be set up and give concrete suggestions in three months. # (IamSMEofIndia & FSIA suggested to bring in Ease of doing business and Timely Availability of adequate credit) • eBiz platform will be set up, which aims to create a business and investor friendly ecosystem in India by making all business and investment related clearances and compliances available on a 24x7 single portal, with an integrated payment gateway. # (IamSMEofIndia & FSIA suggested on one-stop information and business facilitation approach) • Finance Minister indicated that definition of MSME Sector shall be revised soon. At present it is as follows: Investment in Plant & Machinery (Excluding Land, Building and non-production Machinery): Micro: Rs.10 lacs (Service Sector); Rs.25 lacs (Manufacturing) Small: Rs. 25 lacs (Service Sector); Rs.5 crore (Manufacturing) Medium: Rs.2 Crore (Service Sector); Rs.10 Crore (Manufacturing) # (IamSMEofIndia and FSIA suggested review of definition limits as present limits were set in 2006, eight years back) • Entrepreneur friendly legal bankruptcy framework will also be developed for SMEs to enable easy exit. # (IamSMEofIndia & FSIA suggested to bring in measures for Ease of doing business) • A nationwide “District level Incubation and Accelerator Programme” would be taken up for incubation of new ideas and providing necessary support for accelerating entrepreneurship. # (IamSMEofIndia & FSIA suggested setting up of Entrepreneurship Development Centres in each District) PARTIALLY SUCCESSFUL: • Investment allowance (80 I) limit has been brought down from Rs.100 crore to Rs.25 crore. Which means that Micro and Small Enterprises shall still not benefit as the minimum investment limit is Rs.25 crore within 3 years. # (IamSMEofIndia and FSIA suggested that this investment allowance should be made applicable to all all manufacturing units, including Micro and Small by removing the minimum limit on CAPEX so that every manufacturing unit gets incentive to add to capacity. This benefit, therefore, remain only for those willing to invest Rs.25 crores plus.) HOW TO BENEFIT FROM THE BUDGET: • The government has initiated several measures for start-up companies, including helping them to raise the capital, setting up technology centre and several other initiatives, which will encourage them to take up entrepreneurship. # IamSMEofIndia & FSIA heartily thank the Govt. for this focus. Our slogan… Be-Rozgaar Se Swarozgaar… बेरोज़गार से स्व-रोज़गार … Lets do it! • Entrepreneurs setting up new Projects at IMT or elsewhere should invest Rs.25 crore plus within 3 years and get upto 15% Investment Allowance benefit • All those who got their Industrial Plots allotted in Haryana under the Privilege Category (promise to invest minimum Rs.30 crore or more) can get this benefit if they are serious about setting up their projects • When definition of MSMEs is revised and investment limit raised, various subsidies available only to Micro & Small Sector shall be available even to those who are presently in Medium Category. Entrepreneurs Facilitation Centre- I am SME of India ℅. Faridabad Small Industries Association - FSIA FSIA Park, Opp. Plot No. 23, Sector 24, Faridabad- 121005 info@iamsmeofindia ; +91- 9711123111
Posted on: Fri, 11 Jul 2014 02:40:37 +0000
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