The Uttar Pradesh government is exhorting the Micro, Small and Medium Enterprises (MSME) to register on the Udyam portal to avail of a slew of benefits.
These benefits pertain to insurance cover and easy institutional financing for expanding business operations.
The UP MSME and Export Promotion Department today started a 15-day registration campaign across the state.
The state Directorate of Industries will organise camps for the registration of MSMEs in each district, while the MSMEs can also self register by visiting the portal.
The objective is to provide a platform to the MSMEs so that they can benefit from the schemes implemented by the Yogi Adityanath government for the sector.
According to officials, there are more than 9 million active MSMEs in UP, yet only 1.4 million are registered since a bulk of these enterprises operate in the unorganised sector.
All the active MSMEs need to be registered to avail of the benefits of government schemes, since they collectively contribute to the Gross State Domestic Product (GSDP) of UP.
The intended registration would provide MSMEs with an identity that is crucial for operating their enterprises. Additionally, there is a provision for a facilitation council to resolve payment-related disputes, which will benefit only registered units.
The greatest relief is the accident insurance of up to Rs 5 lakh for micro entrepreneurs, which can be provided after obtaining approval from the cabinet.
The following enterprises will be eligible for registration: –
a) In the micro-enterprise category, those with an investment of up to Rs 1 crore and a turnover of up to Rs 5 crore will be registered.
b) In the small enterprise category, eligible enterprises will have an investment of up to Rs 10 crore and a turnover of up to Rs 50 crore.
c) In the medium category, enterprises with an investment of up to Rs 50 crore and a turnover of up to Rs 250 crore will be able to register.
The registration would provide the following benefits to the MSMEs: –
- Free insurance coverage up to Rs 5 lakh under the soon-to-be-implemented accident insurance scheme.
- Exemptions in government procurement through EMD and benefits in government tenders.
- Ease of obtaining loans from banks.
- Convenience in the payment of pending dues through the Facilitation Council.