MSME - Current Affairs Questions and Answers

ANSWER: MSME Sambandh

Explanation:
The Ministry of Micro, Small and Medium Enterprises (MSME) launched Public Procurement Portal 'MSME Sambandh' for Public Procurement Portal for MSMEs.

The objective of the portal is to monitor the implementation of the Public Procurement from MSEs by Central Public Sector Enterprises (CPSEs).

It will help MSMEs in participating in the procurement process. Besides, it will help Ministries and the CPSEs can assess their performance in procurement process as stipulated in Procurement Policy, 2012.

The Procurement Policy launched in 2012 mandates the Central Government Departments, CPSEs to procure necessarily from MSEs.

It means that every Central Ministry, Department, PSU shall set an annual goal for procurement from MSE sector at beginning of year.

Its objective is to achieve overall procurement goal of minimum of 20% of the total annual purchases of the products or services produced or rendered by MSEs.

ANSWER: National SC ST Hub

Explanation:
The Vice President, Shri Venkaiah Naidu was the Chief Guest of National SC ST Hub (NSSH) Confluence organized by Ministry of Micro, Small and Medium Enterprises (MSME) and also released first ever radio jingle for National SC ST Hub.

A collective, coordinated action is needed to strengthen the eco-system for promoting SC & ST Entrepreneurs in the country.

Capacity building is important; credit availability is important, technology up-gradation is also important, he added.

Micro, Small and Medium Enterprise Sector (MSME) is the bulwark of the Indian economy and one of the largest employers after agriculture. He further said that it is also one of the major contributors to the country’s GDP.

With Make in India envisaging to push contribution of the manufacturing sector to 25 per cent of the GDP by 2022, the MSME sector will be required to play a critical role in achieving the goal, he added.

Skill up gradation is one area that requires top attention for the overall development of SC/ST entrepreneurs.

National SC/ST Hub was lauded for signing MoUs with Sector Skill Councils to skill over 2,000 entrepreneurs, as these associations and incubators have a huge role to play in supporting the objectives of National SC/ST Hub.

Each association must extend support in building capacities and mentoring entrepreneurs in its respective sector.

National SC ST Confluence: Know More

• The confluence brought various insights from Industry Association and Incubators to understand the gaps in realizing the mandate of Public Procurement Policy.
• It put forth innovative strategies for holistic development of MSEs owned by SC/ST Entrepreneurs.
  The discussion held was extremely fruitful and intend to go a long way in meeting the objectives of the National SC ST Hub.
• Interactive session was held with over 150 industry associations and incubators with representation of over 400 participants, focussing on collaboration with NSSH, to augment the capabilities of existing SC/ST entrepreneurs.
• Several excellent suggestions were made with respect to market access; capacity building, tender challenges, technology upgradation, etc. were made.
• The session also focused on future action plan along with role to be played by each stakeholder to achieve the objectives of the hub.
• In addition, MOUs were signed with 3 Sector Skill Councils to provide skill development trainings of SC-ST Entrepreneurs under capacity building initiatives of NSSH.

Background:

• The Government of India formulated the Public Procurement Policy, 2012 which states that 20% of total procurement of goods and services by Central Ministries, Departments and CPSEs shall be made from MSEs and 20% of such procurement (4% of total) shall be from SC & ST owned MSEs.
• NSSH is a unique initiative launched by Prime Minister Shri Narendra Modi on 18th October 2016. This initiative is aimed empowering SC ST owned MSEs in order to achieve the 4% mandate of the Public Procurement Policy.
• In view of the above, the NSSH initiative has the potential to work on ground and have an impact till the last mile. Due to the social and economic bearing the programme can have, it requires a strategy that delivers sustained and measurable impact, on the entire MSME ecosystem.
• Therefore, there have been continual efforts to include all relevant stakeholders including state, industry associations, incubators, CPSEs to identify synergies and work collaboratively and cohesively towards a shared goal.

Milestones in the Hub

Some of the milestones achieved by the hub are as follows -

1. Data analysis completed for 5 lakh SC/ST units to identify suppliers to CPSEs

2. Physical verification of over 4,900 SC/ST entrepreneurs completed that had potential to supply to CPSEs

3. Telephonic interaction with over 2,590 SC/ST MSMEs completed to understand challenges in securing PSUs’ tenders

4. Information of 1,003 SC/ST enterprises mapped with 42 CPSEs for vendor empanelment and procurement

5. Appointment of nodal officers in 67 CPSEs. Discussion with over 60 CPSEs conducted

6. Special Marketing Assistance Scheme - 950 units participated in domestic and international fairs/exhibition

7. 2,107 units facilitated with CPSE linkages under Special Vendor Development Programme

8. 512 SC/ST units benefitted under Special Performance & Credit Rating Scheme

9. Training programme conducted in IIM Noida (Satellite institute of IIM Lucknow), IIM Lucknow, IIM Raipur, IIM Kolkata and XLRI Jamshedpur (on pilot basis) for SC/ST entrepreneurs for over 100 SC/ST entrepreneurs.

ANSWER: Zero Defect Zero Effect

Explanation:
The Government has launched a new scheme namely “Financial Support to MSMEs in ZED Certification Scheme”.

The objective of the scheme for promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst micro, small and medium enterprises (MSMEs).

It also involves ZED Assessment for their certification so as to:

• Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
• Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
• Enable MSMEs for manufacturing of quality products.
• Encourage MSMEs to constantly upgrade their quality standards in products and processes.
• Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.
• Support ‘Make in India’ campaign.
• Develop professionals in the area of ZED manufacturing and certification.

There are 50 parameters for ZED rating and additional 25 parameters for ZED Defence rating under ZED Maturity Assessment Model.

The MSMEs are provided financial assistance for the activities to be carried out for ZED certification i.e., Assessment / Rating, Additional rating for Defence angle, Gap Analysis, Handholding, Consultancy for improving the rating of MSMEs by Consultants and Re-Assessment / Re-Rating.

Under the scheme 22,222 MSMEs will be rated & certified under ZED Maturity Assessment Model, 5,000 MSMEs will be rated & certified under the ZED Defence Model, 7368 MSMEs will be supported for Gap Analysis, Handholding, Consultancy for improving their rating, etc.

The total cost of the project is INR 491.00 crores (Government contribution Rs 365.00 crores, beneficiary MSMEs contribution Rs 126.00 crores).

Quality Council of India (QCI) has been appointed as the National Monitoring & Implementing Unit (NMIU) for implementation of ZED.

QCI has reported that 3217 MSMEs has been registered as on25.07.2017 for ZED Certification.

The MSME-wise details are Micro: 1332, Small: 1522 & Medium: 363 and financial assistance to MSMEs is yet to commence.

MSME Schemes

• The Ministry of MSME is implementing a number of schemes to promote MSMEs namely:
• (i) Credit Guarantee Fund Scheme for Micro and Small Enterprises to facilitate collateral free credit to new and existing micro and small enterprises (MSEs);
• (ii) Scheme for Raw Material Assistance implemented by National Small Industries Corporation Limited under the Ministry;
• (iii) National Manufacturing Competitiveness Programme (NMCP) and Credit Linked Capital Subsidy Scheme implemented to facilitate upgradation of technology, improve processes and design;
• (iv) Management Development Training Programmes (MDPs) for enhancing managerial skills;
• (v) Micro and Small Enterprises-Cluster Development Programme to facilitate infrastructure upgradation and setting up of Common Facility Centres; and
• (vi) Marketing Development Assistance Support to MSME;
  
• (vii) Ministry of MSME has introduced online MSME Data Bank on 29.07.2016 for creating comprehensive database of MSMEs and
  
• (viii) Ministry of MSME has introduced simplified online registration “Udyog Aadhar Memorandum (UAM) for MSMEs”. 33,25,159 MSMEs registered with UAM from September, 2015 till 25.07.2017.

ANSWER: Odisha

Explanation:
Odisha Government and Invest India on 1 March 2017 signed an agreement to promote start-ups and MSME sector of the state.

The agreement was signed with an aim to help the start-ups and MSME sector to gain access to best practices of the world.

According to reports, Odisha became the first state to sign MoU with Invest India for working on startups.

Invest India is a National Investment Promotion and Facilitation Agency of the Union ministry of commerce and industries.

Startup Odisha Initiative and Startup India Hub run by the Invest India will help in achieving the Mission-1000 startups by the year 2020. The mission will help the youth in realising their dreams.

A toll-free start-up helpline, 1800-345-7100, was also launched.

The Prime Minister’s initiative Start-up India has the objective of making India a country of job creators. The vision is to make India the No. 1 start-up nation in the world.

Invest India, which is the official investment promotion and facilitation agency of India, is mandated to facilitate investments into India.

Specifically, the agency is the first point of reference for potential investors.

They provide sector and state-specific inputs and other supports to investors through the complete investment cycle.

ANSWER: IBRD

Explanation:
India on 13th Dec 2016 signed a grant agreement of USD 5.19 million with International Bank for Reconstruction and Development for Additional Financing for Financing Energy Efficiency at MSMEs Project- Programmatic Framework for Energy Efficiency.

IBRD is acting as an implementing agency of the global environment facility.
The additional financing will be used to scale up initiatives taken under parent project.

It will bridge the gap in understanding among different stakeholders mainly energy professionals or technology suppliers, banks and financial institutions.

It will be implemented by a three pronged approach- capacity building, direct involvement to augment EE investments at MSME level and escalation of the EE Knowledge base to scale up and replicate the project initiatives such as by establishing KPIs.

FEEMP- Financing Energy Efficiency at MSME Project

• Initiated in: Sept 2010.
• Grant amount: USD 11.3 million
• Objective: Increase energy efficiency investments in MSME clusters.
• Attained satisfactory rating of Project Development Objective and implementation performance.

ANSWER: Both of the above

Explanation:
Arun Jaitley, India’s Finance Minister launched two important MSME initiatives: MSME Databank Portal and Online Finance Facilitation Web Portal at the sidelines of the 14th Meeting of the National Board of MSME.

• MSME Ministry is also making an online census of the MSMEs in the country for the first time by launching a comprehensive databank ; This will save effort and resources for census
• Databank will provide information and be used for public procurement purposes.
• No grant or subsidy will be given to any MSME until the data is captured on the MSME databank.
• Portal will also allow MSMEs to apply for loans from various banks on the NSIC portal and MoUs have been signed with 33 banks, 14 of which are going to work with the online Finance Facilitation Web Portal

ANSWER: Performance and Credit Rating Scheme

Explanation:
A performance and credit rating scheme has been launched by the MSME industry to assess credit worthiness and capabilities of industries in the sector.

• Ministry of MSME through the National Small Industry Corporation Limited is implementing the Performance and Credit Rating Scheme for MSMEs to provide trusted third party opinion on capabilities and creditworthiness to create awareness about strengths and weaknesses of existing operations.
• A new scheme of Financial Support to MSMEs in Zero Defect Zero Effect Certification had been approved in which the MSMEs will be assessed on ZED Maturity Model on 50 parameters to strengthen or facilitate the Make in India initiative.
• To ensure quality production, government is encouraging MSMEs by organising awareness programmes, providing financial assistance for product certification as per international and national standards.
• Under Financial Support to MSMEs in ZED certification scheme, MSMEs will be assessed on Zero Defect Zero Effect maturity model to raise MSMEs in 5 levels.

ANSWER: MSME

Explanation:
Reserve Bank of India has revised rules in relation to revival of advances to small businesses and asked lenders to establish district level communities to resolve bad loans to MSMEs or micro, small and medium enterprises. Restricting of loan accounts with exposure of more than INR 25 crore will be governed by CDF or JLF mechanism/ Corporate Debt Restructuring or Joint Lenders’ Forum.