Economy

PM Modi Launches CHAMPIONS: Technology Platform to empower MSMEs

 

What is CHAMPIONS Technology Platform?

This portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding. It is a real one-stop-shop solution of MSME Ministry.

Objectives of Champions technology Platform

1. Grievance Redressal: To resolve the problems of MSMEs including those of finance, raw materials, labor, regulatory permissions etc particularly in the Covid created difficult situation.
2. To help them capture new opportunities:  including manufacturing of medical equipments and accessories like PPEs, masks, etc and supply them in National and International markets;
3. To identify and encourage the sparks:  i.e. the potential MSMEs who are able to withstand the current situation and can become national and international champions.

 

Loopholes 

PAYMENT ISSUE

The basic drawback in growth of MSME sector is delayed payment or loss of payment. Laws are not strict for these issues. Defaulters are openly challenging the laws. Govt should strictly implement the payment laws.

LACK OF AWARENESS

Majority of the MSME community is not aware about govt policies for them.

 

LABOUR PROBLEM

The production capacity of industries is declined by migration of large no of employees to their hometown.Majority of the people are unable to come due to heavy payment of fares.

SOLUTION

Govt strictly implement laws for payments. Buyer must be  liable to pay the dues. There should be no room for bad pay masters in market.

Govt should run the free buses by getting some amount from industries to get back the migrant workers as soon as possible

MSME offices at district level must provide awareness program for industries.

Govt should also check on corruption in govt offices. Many industries have to pay bribe for electricity connections, water clearance and now due to COVID 19 situation corruption is enhanced.

 

Finance Minister announces Government Reforms and Enablers across Seven Sectors under Aatma Nirbhar Bharat Abhiyaan

KEY HIGHLIGHTS
 

ü  Rs 40,000 crore  increase in allocation for MGNREGS to provide employment boost

ü  Increased investments in Public Health and other health reforms to prepare India for future pandemics

ü  Technology Driven Education with Equity post-COVID

ü  Further enhancement of Ease of Doing Business through IBC related measures

ü  Decriminalisation of Companies Act defaults

ü  Ease of Doing Business for Corporates

ü  Public Sector Enterprise Policy for a New, Self-reliant India

 

BENEFITS:

• Rural economy will develop. More people will get employment in MGNREGS. It will lead to more developing activities in villages if this fund is properly used for developing activities

•  Investments in health is very crucial at this stage. Govt hospital must be able to solve the COVID 19 problem. In this present situation we are observing how private hospitals are moving away from this situation. They are avoiding to treat COVID -19. If they are doing it they are doing it at very high cost.This cost is not bearable by 90 percent of indian population.So in this situation govt should increase the public infrastructure in health sector. Capping of prices by govt is a essential decision.

 

• It will promote the digital education by launching the PM eVIDYA.

• Minimum threshold to initiate insolvency proceedings has been raised to Rs. 1 crore (from Rs. 1 lakh, which largely insulates MSMEs). Special insolvency resolution framework for MSMEs under Section 240A of the Code will be notified soon.

  Suspension of fresh initiation of insolvency proceedings up to one year, depending upon the pandemic situation. Empowering Central Government to exclude COVID 19 related debt from the definition of “default” under the Code for the purpose of triggering insolvency proceedings.

   

• Decriminalisation of Companies Act violations involving minor technical and procedural defaults such as shortcomings in CSR reporting, inadequacies in Board report, filing defaults, delay in holding of AGM. The Amendments will de-clog the criminal courts and NCLT. 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework.

 

LOOPHOLES

• Leakage of funds in MGNREGS must be avoided. It must be regulated strictly by authorities.

MGNREGA leaks as high as 50%, makes strong case for Aadhaar

Government pruning 9.3 million fake beneficiaries in FY17 alone, taking the total to 31.7 million over the last few years, or around 14% of those enrolled in MGNREGA.

• India has very poor health facilities. High population put a great burden on it. Improving health conditions in short span of time is a great challenge

Reports of overcrowding and unsanitary conditions in state-run testing and quarantine centers have been multiplying.