MSME ministry has integrated its recently launched portal for MSMEs to share their innovation, ideas, and research in respective sectors for the public reviews regarding vetting before launching them within the Champions portal.
Moreover, it has added the information and knowledge bank for MSMEs. The Government took steps for MSMEs to fight COVID, RBI’s relief measures, delayed payments monitoring, all MSME schemes, lists of government notifications, the support provided by SIDBI, and Grievances redressal for MSMEs has been added.
MSMEs Grievances redressal for MSMEs pertaining to Covid-19
- MSME Ministry announced a grievance registration and management system for issues around finance, raw materials, labor, regulatory permissions, etc. particularly due to the COVID impact faced by small businesses.
- The portal – champions.gov.in – will allow MSME associations, units, employees, and aspiring entrepreneurs to register their complaints, suggestions, or seek information around the support provided to MSMEs.
- Grievances registered by MSMEs either on the Government’s Centralized Public Grievance Redress and Monitoring System (CPGRAMS) or any other MSME Ministry portal will be automatically pulled into the Champions portal.
- The grievances will then be diverted subject-wise to the concerned branch/bureau/office heads under the MSME Ministry to attend them within three days. The matter should not remain inconclusive after seven days.
The Government took Steps for Grievances Redressal for MSMEs
Concept of a Single-Window System
The Government can think of building some single window system at district/zonal level to co-ordinate all MSME related activities that inter-alia may include linking MSMEs with different government schemes. Those might link small units with different marketing platforms, GST regulations, loan approval and disbursement, rehabilitation of sick units, disseminating various MSME related information, helping them be more digitalized, and so forth.
This window will act as an interface of the Government to assess the groundwork reality, intermittently review. It is considered the building of a wide network of different MSME related bodies/organizations/institutions so that an inclusive and comprehensive response can be meted out.
The Spread of Digital Awareness
Many people believe that there will be a noticeable change in the mode of doing business after this pandemic is over. Businesses will try to shed their physical activities and movements as much as possible and heavily depend on their digital platform.
The Government’s role is to build up the necessary logistics and infrastructure so that MSME of the smallest size and at the remotest corner of the country can take advantage of it. The Government should make wide publicity among the MSMEs for adopting the new regime’s order, and proper training facilities for this purpose are also a need of the day.
Relief from the burden of Compliances and Ease of doing business
The Government has assessed that an MSME Registration requires only two clearances as a part of establishing its unit, namely environmental clearance and consent to establish. The Government has introduced an ordinance that gives the entrepreneurs respite to approach the court, who can take remedial measures themselves through simple procedures.
Raising the turnover threshold for an audit of accounts of MSME borrowers to Rs.5 crores is also an enabling step in this direction. An MSME is required to shoulder in starting and continuing its business and suggest remedial measures to simplify/eliminate/merge them. These should be implemented at the earliest possible time.
Social security for MSME employees
The program highlighted by the finance ministry regarding launching a mission aimed at MSME employees to get Jan Dhan Accounts, Provident Fund, and Insurance should gather required momentum immediately. It should be meticulously monitored how this outreach program of the Government can be strengthened and what more measures can be adopted to provide social security to the MSME employees.
Technology will be the most determining factor in the coming days for MSME to reign in the market. For this purpose, the Government has to create 20 hubs and 100 spokes in the form of tool rooms across the country. A bit of stewardship on the part of the Government harnessing these resources with provisions of required incentives, facilities, logistic support, foreign collaboration, import of need-based high-end technology, etc. can do a miracle.
Address to the right information
Many of the MSMEs, usually at the country’s remotest parts, suffer from ignorance and lack of information regarding the documentation and other formalities for obtaining licenses and registrations. Government portals and websites should be updated with all information to reach the unreached in the country’s remotest part to remove unnecessary confusion amongst the entrepreneurs. Here the Government can moot over in launching a centralized online system of licensing with the right use of technology to resolve the issue.
While the MSME sector has been impacted due to this lockdown because of Covid-19, the plight of MSME exporters is more deplorable. It has estimated that MSMEs cater more than 50% of the country’s total outbound shipments. The problem seems to be gloomier in the sense that global trade in goods is set to decline steeply in the coming days due to this global pandemic.
In this respect, the Government’s initiative to drive e-commerce platforms for pushing exports, emphasizing small enterprises located in remote areas, should gather the enhanced steam, and the Government should consider allowing greater export incentives for the exports effected through e-commerce platforms. The Government should initiate the calibrated opening up of various export-oriented MSMEs to start production under strict safety guidelines.
The Champions (Creation & Harmonious Application of Modern Processes for Increasing the Output and National Strength) portal makes the smaller units big by solving their grievances, supporting, encouraging, helping, and handholding. It is a real solution to the MSME Ministry. For MSMEs to take the support of the government schemes, Champion Control Rooms have been set up at MSME Development Institutes across the country that will provide handhold small businesses in accessing help.
Read our article:CHAMPIONS: Newly Launched Portal for MSME