<p>The MSME (Ministry of Micro Small and Medium Enterprises) sector accounts for about 20% of the country's GDP. It is also the largest employment provider in the country. Most MSMEs are exempted from maintaining detailed audit records. But after demonetisation, that might change. In the last Union Budget, the government raised tax exemptions for small business units with a turnover of up to <span class='webrupee'>₹</span>2 crore from the earlier <span class='webrupee'>₹</span>1 crore. However, PM Narendra Modi has assured these MSMEs that there will be no harassment caused to them on the basis of their previous balance sheets. </p>

The MSME (Ministry of Micro Small and Medium Enterprises) sector accounts for about 20% of the country's GDP. It is also the largest employment provider in the country. Most MSMEs are exempted from maintaining detailed audit records. But after demonetisation, that might change. In the last Union Budget, the government raised tax exemptions for small business units with a turnover of up to 2 crore from the earlier 1 crore. However, PM Narendra Modi has assured these MSMEs that there will be no harassment caused to them on the basis of their previous balance sheets.

Uttar Pradesh government says 42,700 crore loan given to about 13 lakh MSMEs in FY21

About 14 per cent of the country's micro small and medium enterprises (MSME) are operational in Uttar Pradesh.
PTI | , Lucknow
PUBLISHED ON FEB 27, 2021 06:56 PM IST

As many as 13 lakh MSME units in Uttar Pradesh have been given loans worth 42,700 crore in the financial year 2020-21, the state government said on Saturday.

This is also for the first time in the history of the state that such a large amount of loan has been given to the MSME sector in a year. This has also generated 65 lakh direct and indirect employment opportunities in the private sector, an official release issued here said on Saturday. About 14 per cent of the country's micro small and medium enterprises (MSME) are operational in Uttar Pradesh, the release noted.

Navneet Sehgal, additional chief secretary, MSME, recently reviewed the steering sub-committee of the State Level Banker's Committee (SLBC) and gave instructions for early disposal of pending applications for acceptance and distribution at the bank-level under various government schemes including Prime Minister Employment Generation Programme (PMEGP), ODOP, Mukhyamantri Yuva Swarojgar Yojana (MYSY), the release said.

Instructions have also been given to take necessary action for the disposal of cases related to banks on the MSME Sathi app. About 41.16 per cent of bank accounts have been covered under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) against the total Jan Dhan accounts in UP. "The state government's one Gram Panchayat, one Bank Correspondent' programme has started under which the process of appointment of 58,000 Bank Correspondent (BC) Sakhi is underway,” Brajesh Kumar Singh, convener of SLBC said.

In the review meeting, Amil Agarwal, under-secretary in the Union Ministry of Finance, also suggested the banks and the NABARD to take necessary steps to reach out to potential projects and entrepreneurs for the use of agricultural infrastructure funds.

“NBFCs should also be included in the SLBC meetings from time to time so that they can share their suggestions and progress,” Agarwal said.

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