MSME: Performance and Credit Rating Scheme Latest Developments

The Ministry of Micro, Small, and Medium Enterprises has launched the Performance & Credit Rating Scheme (PCR) to ascertain the strengths and weaknesses of MSMEs’ existing operations and take corrective measures to enhance the organizational strength. Under the PCR scheme, empanelled rating agencies carry out the rating of MSE. The rating makes credit available at attractive interest rates and will ensure better unit productivity. As part of this scheme, based on the turnover of the MSE, the Rating Agency charges will be reimbursed by the Ministry of SSI.

The Government has taken various measures including ongoing schemes to ensure sufficient financial accessibility and seamless credit to Micro, Small, and Medium Enterprises (MSMEs). Contemplating the role of this sector in Employment generation, promotion of entrepreneurship, regional development, export promotion, innovation, reduction of income disparities, and support for large industries, the Government of India and the Reserve Bank of India launched the following initiatives.

1. MSME Samadhaan,
2. Atmanirbhar Bharat,
3. Udyog Aadhaar,
4. Mudra,
5. ZED scheme,
6. Make in India,
7. Stand up India,
8. Startup India,
9. Udyam Assist Platform,
10. RAMP scheme,
11. Support and Outreach Program: This program includes initiatives such as increasing the interest rebate for exporters, requiring public sector companies to buy more from MSMEs, and setting up tool rooms.
12. Entrepreneurship Awareness Programme (EAP): This one-day training program is for entrepreneurship and self-employment awareness.
13. Entrepreneurship cum Skill Development Programme (E-SDP): This six-week training program is for entrepreneurship and skill training.
14. Advanced E-SDP: This one-week program is conducted by IIMs, IITs, ICAR, CSIR, BARC, IISC, NIT, and the Agricultural University of Central and State government.
15. Government Process Reengineering (GPR): This exercise reviews schemes, the role of line agencies, and organizational review.

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