Oct 072015

Simplified Registration of MSME Based on Aadhar Gets Good Response

In a press release dated 6th October, 2015, the Central Government of India has revealed that the new simplified registration method for MSMEs based on Aadhar has recorded unexpectedly good response. According to the Shri Kalraj Mishra, MSME Minister, more than 800 new registrations have been recorded within a very short time frame. The minister also revealed that for year 2015-2016, 118,196 new employment opportunities have been generated under PMEGP or Prime Minister’s Employment Generation Programme.

Shri Kalraj Mishra stated that the Central Government is committed towards promotion of Khadi industry in India and that encouragement of PM Modi alongside different measures taken by GOI has given a good boost to the Khadi sector for the period October 2014-2015. The sector, according to the minister, took a 17.55% growth leap during the mentioned period.

Simplified Registration of MSME Based on Aadhar Gets Good Response


During his press release brief, minister Kalraj Mishra gave the following information:

Doing Business Becomes Easy

(a) Registration of MSME using Udyog Aadhar Memorandum

The minister said that PM Modi expressed his wish on 3rd October, 2014 on the popular radio show ‘Mann Ki Baat’ that the registration process be simplified for the MSMEs. Because of this, Udyog Aadhar Memorandum – a simplified registration form, which is just a page long was notified in Gazette of India under Notification Number S.O 2576 (E) on September 18, 2015. The minister said that the new form was a result of consultation with stakeholders and states and has the following important features:

  • Udyog Aadhar requires no fees.
  • Documents are not required.
  • Multiple Udyog Aadhar forms can be filed.
  • Allows self-certification.
  • Online and mobile-friendly one-page registration.

(b) MSME rehabilitation and revival framework

The minister also said that MSME rehabilitation and revival framework under 2006 MSMED Act’s Section 9 has been notified on 29th of May, 2015. According to the minister, this framework calls out to the entrepreneurs and strike a balance between creditor and debtor interests. According to the minister, this framework allows the creditors (banks) to identify the MSMEs which are developing stress and take measures which will ensure that these MSMEs do not turn into NPAs. Troubled MSMEs can reach out for help to a committee formed by state government representatives, banks and other experts.

Prime Minister’s Employment Generation Programme

The PMEGP which was introduced back in 2008-2009 has, according to the minister, has met with great response from youth segment that is unemployed. The minister stated that 28.88 lakh new opportunities have been created since the inception of PMEGP program, under which 3.37 lakh new enterprises have been setup. He revealed that a total of 6712.97 crore rupees in subsidy has been paid out. A table which shows 10 times improvement during 2015-2016 over 2013-2014 was also provided by the minister. The table is given below:

Year – only first half i.e. April to September Subsidy disbursed Units that have received assistance Number of people employed
2013-2014 ₹ 36.94 crores 1717 12951
2014-2015 ₹233.70 crores 10657 74871
2015-2016 ₹365.63 crores 16355 118196

Social Media developments

According to the minister, Twitter and Facebook has helped to connect with public at large. He mentioned that with over 36,000 followers on two platforms, the government has been able to share information about government initiatives and schemes which has helped to gather public opinion that has been utilized by the government.

Development of Skills

Under PM Modi’s Skill India Mission, MSME ministry, according to the minister, has been providing skills training to nearly 9 lakh youth every year, which has helped then to become entrepreneurs or industry-ready job-seekers. He mentioned that the ministry is in process of making all these training programs NSQF compliant which will have a uniform pattern of funding. The minister disclosed that GOI and Samsung Electronics have signed a Memorandum of Understanding under which the electronics giant will be setting up Samsung Digital School for training people on mobile application development. Also, Samsung Technical Schools have already been set up in 10 different locations in India to deal with the growing demands for skills development. These 10 locations include Kolkata, Mumbai, Chennai, Bhubaneshwar, Varanasi, Aurangabad, Ahmedabad, Hyderabad, New Delhi and Ludhiana.

Employment through Talent Mela

NI-MSME (National Institute for Micro, Small and Medium Enterprises) of Hyderabad, according the minister, had organized a total of 46 talent melas through April-September in 2015. These melas offered a platform where employers and job seekers came together. In total 29,066 job seekers and 332 employers came together in these talent melas where 9,121 job seekers were hired. Similar talent mela was also organized at Karnataka’s Davangere in September, 2015 where 3104 job seekers out of 9141 registered job seekers were hired by 85 companies.

Initiatives taken for Khadi Sector

On October 3, 2014 on Mann Ki Baat, PM Modi made an appeal to all Indians to help revive the Khadi Sector of the nation and asked them to purchase a minimum of 1 Khadi garment. The result, according to the minister, was outstanding and the Khadi productions increased. The minister reported 6.38% growth in sales of Khadi garments during October 2013-March 2014 compared to October 2012-March 2013. However, after the appeal made by PM, Khadi sector sales increased to 17.55% for the period October 2014-March 2015. This was about 3 time more growth compared to the previous period.

Similarly, when looked at the production side, the growth from October 2012-March 2013 to October 2013-March 2014 was just 5.82% and after the appeal from PM, there was a 31.1% growth in Khadi production for October 2014-March 2015. This was nearly 6 times the growth registered in previous period.

According to minister, Khadi productions registered 880 crore rupees for 2014-2015. Compared to 2013-2014, this was nearly 8.5% growth.

The minister also revealed that Indian Government created what is known as MDA or Market Development Assistance in which government did not intervene with the Khadi producers and allowed them to decide the steps that were necessary for maximizing productions as well as sales because they had proper knowledge of market demand and supply. The GOI came up with INR 324.64 Crore of assistance to the Khadi Institutions during the period 2014-2015. This amount was disbursed through several schemes. The minister stated that this aid registered a 36% growth compared to aid provided to the Khadi Institutions during fiscal year 2013-2014. In previous fiscal year, total Government Support was INR 239.17 crores.

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