Ease of Doing Business for MSMEs: Setting up a stop-shop for businesses and investors to get updated information around Covid-19 gains importance as MSMEs and small businesses are likely to take maximum hit.
Ease of Doing Business for MSMEs: The government’s investment promotion and facilitation body Invest India on Tuesday announced a partnership with Small Industries Development Bank of India (SIDBI) to set up a Covid-19 helpdesk for “responding and resolving queries for MSMEs,” Commerce Ministry said in a statement. Invest India also set-up a similar help desk to assist and resolve queries of startups in tie-up with TiE Delhi NCR. The partnerships are part of the Invest India Business Immunity Platform launched on Tuesday for providing the latest information on Coronavirus in India, steps taken by the government against it and also resolving queries on a real-time basis for businesses and investors.
The platform will track “developments with respect to the virus, provides the latest information on various central and state government initiatives, gives access to special provisions, and answers and resolves queries through emails and on WhatsApp,” the ministry said. “This platform also provides the ability to join the dots to find matching suppliers with required supplies and for innovators, startups and MSMEs to showcase their solutions,” said Deepak Bagla, MD and CEO, Invest India.
Setting up a one stop-platform for businesses and investors to get updated information around Covid-19 gains importance as MSMEs and small businesses are likely to take maximum hit amid possible working capital challenges, broken supply chain, and blocking of export finance etc. Industry body FICCI had on Monday asked the government for clearing all payments and dues including GST refunds to MSMEs at the earliest and interest rate subvention at 3 per cent instead of 2 per cent on loans that are healthy and not NPAs etc.
Finance Minister Nirmala Sitharaman on Monday gave respite to MSMEs from “being forced into insolvency proceedings amid Coronavirus outbreak,” according to a press note issued by the Finance Ministry. The minister announced raising the threshold of default under section 4 of the IBC 2016 to Rs 1 crore from the existing limit of Rs 1 lakh to “prevent triggering of insolvency proceedings against MSMEs.” The government may also suspend section 7, 9 and 10 of the IBC 2016 for six months to avoid businesses from insolvency proceedings if the current situation continues beyond April 30, 2020. Sitharaman also extended the last date of filing GST return due in March, April and May 2020 by the last week of June 2020 without any penalty charged.