The government has sought comments to be submitted on or ahead of November 30, 2020.
Ease of Doing Business for MSMEs: The MSME Ministry has invited comments from stakeholders on the draft Environmental and Social Systems Assessment (ESSA) by the World Bank needed as component of their joint programme – Raising and Accelerating MSME Productivity (RAMP). The programme intended to increase the productivity and competitiveness of Indian MSMEs is developed primarily based on the UK Sinha led Reserve Bank of India’s Expert Committee report of June final year. The report had advisable different regulatory, economic, and implementation reforms along with “firm-level access reforms to provide targeted interventions to MSMEs across recognized challenge areas,” the MSME Ministry stated on Tuesday. The programme is at present in an sophisticated stage of formulation and finalization, the ministry added, when the draft was released on November 11, 2020.
The ESSA is needed to confirm compliances to environmental and social requirements by the final mile enterprises covered beneath the different scheme of the MSME Ministry. The essential findings of ESSA in terms of environmental requirements noted that when the centre and state governments have effectively-created atmosphere legislations, the implementation setup to address environmental challenges of RAMP demands to be additional strengthened. Further, non-compliance with the environmental permits, poor monitoring and enforcement by government authorities, and improper technologies choice might have an effect on the atmosphere negatively, and so forth.
The probably environmental dangers described incorporated contamination of water bodies due to polluting industrial wastewater discharges, occupational overall health, and security practices of MSME workers, neighborhood overall health and security dangers arising from poor management of MSME emissions such as waste disposal, air emissions, and so forth. On the other hand, with respect to social requirements, the findings claimed that there is restricted awareness amongst enterprises on occupational overall health security problems. It also stated that state-level departments do not have a consolidated database disaggregated by social and gender status that would otherwise support in developing targeted education and capacity developing initiatives to attain SC/ST and females entrepreneurs.
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The government has sought feedback to be submitted on or ahead of November 30, 2020, via e mail. The 5-year RAMP programme is a $500 million operation to assistance the government towards enabling development for MSMEs with a counterpart funding of $500 million to be contributed by the government itself. “Indian firms are small and do not grow over time. The most common firm size in India is one worker and around 99 percent of the firms have less than 10 workers. These skewed patterns of size and growth impose huge productivity costs,” the ESSA report by World Bank noted. This is worrying because extended-term development and job creation are driven by productivity development, it added. The assistance beneath the RAMP programme would target the identified marketplace failures and institutional capacity limitations that hinder MSMEs’ development.