Modi announces quick loans, relaxation in labour laws for MSMEs as Diwali gift, 2 November 2018

Prime Minster Narendra Modi Friday [2 November] announced [approval of quick loans], relaxation of labour laws, easier compliance with environmental rules and changes in company laws for [micro, small and medium enterprises (MSMEs)] as a “Diwali gift” to give a boost to the sector, the country’s second-biggest employer…

To rid the sector of inspector raj [over regulation and/or supervision by government], Modi announced that inspections of factories in the sector will be sanctioned only through computerised random allotment and inspectors will have to upload reports on portal within 48 hours…Easing compliance with environmental rules, MSMEs will need single air and water clearance and just one consent to establish a factory.

MSMEs will have to file just one annual return on eight labour laws and 10 central rules, he said, adding that an ordinance has been promulgated to simplify levy of penalties for minor offences under the Companies Act…The prime minister also spoke of social security for the MSME sector employees. He said that a mission will be launched to ensure that they have Jan Dhan Accounts [a government financial inclusion program], provident fund [pension fund] and insurance…