In 'Diwali Gift' For Small Businesses, PM Modi Launches 59-Minute Loans

Prime Minister Narendra Modi on Friday launched a 59-minute loan programme and other moves to help small businesses as part of the centre's "support and outreach initiative" for micro, small and medium enterprises (MSMEs) in New Delhi. "Loan requests for up to Rs. 1 crore will be cleared in about the same time it takes for your morning commute," he said.

The programme was unveiled as part of 12 new decisions to aid the sector which, the PM said, were like "Diwali gifts for MSMEs".

The announcement is a counter to overtures to small businesses already made by the opposition Congress. Party chief Rahul Gandhi said in August he would seek to shift the focus of the country's economic policy towards supporting small and medium-sized firms if the opposition won power in next year's election.

Know how an ordinance makes things much better for the MSME sector. pic.twitter.com/O0e8rY03HJ

— Narendra Modi (@narendramodi) November 2, 2018

"As we speak, somewhere in the country your entrepreneurial brother or sister is getting a loan... sanctioned in just 59 minutes," PM Modi said. "Think, only 59 minutes. Just 59 minutes."

The other measures announced today included an increase in the share of small and medium industries in government procurement from 20 to 25 per cent. He also announced a 2 per cent interest relief on loans up to Rs. 1 crore for small businesses that file GST (Goods and Services Tax) returns.

Placing unparalleled faith in our MSME sector.

Simplifying processes for Environmental Clearances and 'Consent to Establish’ through steps such as self-certification. pic.twitter.com/Ng3t1jTG4x

— Narendra Modi (@narendramodi) November 2, 2018

PM Modi also announced that inspections of factories in the sector will be sanctioned only through a computerised random allotment and inspectors will have to upload reports on portal within 48 hours. "No inspector can now go anywhere. He will be asked why he went to a factory," he said.

Easing compliance with environmental rules, MSMEs will need single air and water clearance and just one consent to establish a factory.

"These 12 decisions are not just Diwali gifts for MSMEs but will also herald a new age and new chapter for small enterprises," PM Modi told a gathering at Delhi's Vigyan Bhawan.

Freeing the MSME sector from Inspector Raj. pic.twitter.com/uXbpuBcfr7

— Narendra Modi (@narendramodi) November 2, 2018

Simplifying processes, making business easier.

Now, returns due to 8 Labour Laws and 10 rules to be filed only once instead of the earlier twice pic.twitter.com/omapi1SeDO

— Narendra Modi (@narendramodi) November 2, 2018

I hope this decision makes the Diwali for MSMEs working in the Pharma Sector even more special. pic.twitter.com/tJCu0Jln4o

— Narendra Modi (@narendramodi) November 2, 2018

Comprehensive package of Rs. 6000 crore to ensure 20 hubs, state-of-the-art tool-rooms and more. pic.twitter.com/m9K5LPzPgF

— Narendra Modi (@narendramodi) November 2, 2018

A boost to Nari Shakti, creating favourable opportunities for women entrepreneurs. pic.twitter.com/SU1utkZZQ8

— Narendra Modi (@narendramodi) November 2, 2018