Interviewtimes 
BB Swain, Union Secretary, MSME
BB Swain, a diligent and above-board administrator, is wedded to the cause of the development of MSMEs. He feels that MSMEs need to be formalized to realize the vision of inclusive Ease of Doing Business (EoDB). Presently, most of the MSME units are operating in the informal sector, and this scenario makes it profoundly challenging for them to partake in the country’s booming industrial growth story. Swain intends to reverse this scenario through a multi-pronged approach.
“The multiplicity of issues which we face in the MSME sector, it is probably a multi-pronged approach which is more suitable. The first obvious step here, which is also kind of the biggest ambition of the MSME Ministry, is to identify micro, small and medium entrepreneurs and to bring them under a formal structure. Formalization is our primary target and the biggest ambition,” he said at a recent conclave.
There are over six crore MSMEs in the country, most of which are unorganized. Udyog Aadhaar Memorandum (UAM), the former platform for MSME registration in India, had only 1.02 crore MSMEs registered between September 2015 and June 30, 2020, according to the ministry’s annual report. The government introduced the Udyam registration portal on July 1, 2020, replacing UAM to simplify the registration process.
Compared to 1 crore UAM registrations over five years, the Udyam portal has crossed 90 lakh registrations in two years.
“Soon, we’ll be crossing the one-crore mark. The Udyam database is going for integration with that of NCS, e-Shram and ASEEM portals. We are working towards bringing the tiniest of the micro-enterprises into the formal framework,” said Swain at FE MSME Business Conclave. Currently, the total MSMEs registered on the Udyam portal are around 95 lakh”, Swain added.
The Union secretary has shown great concern over the issue of delayed payments to the MSMEs.
“The MSME Ministry has been in constant touch with the state governments to address this issue. The government has asked states to set up more Micro Small Enterprise Facilitation Councils (MSEFCs) — delayed payment dispute settlement units. I’m very happy to know that a lot of states have started setting up more councils,” said Swain.
“Cash-strapped MSMEs are driven to use up their limited resources on chasing collections instead of being able to invest in business development. Often, they are forced to borrow at high-interest rates to offset their cash flow deficit, making the situation even more problematic. We must strive for fairer and ethical business practices. Prompt payment to MSME figures on top of that plan”, he added.
Led by the result-driven secretary, nearly 50,000 queries have been received, and over 48,000 have been resolved through Champions’ dispute resolution portal since it launched in June 2020. During the previous financial year, over 1 lakh new manufacturing and service units were established under the Prime Minister Employment Generation Programme.
Moreover, under the Self-Reliant India (SRI) Fund, 22 daughter funds have already been given funding, and 75 MSMEs have also got equity participation. “What made me happier was that compared to what we (government) had planned that for every rupee that we put in, Rs 4 will be brought in by the daughter fund, while we had put in Rs 155 crore, what had gone in equity was Rs 1,540 crore,” said Swain.
He also added that although last year was full of challenges, coordinated efforts of all stakeholders have made it possible to take on the pandemic crisis. Both fiscal and monetary measures have been taken to get back on the growth trajectory of the economy in general and MSME’s in particular.
The actual achievement of Public procurement policy for MSMEs in 2021-23 is 35 per cent. Over the last few years, more and more enterprises are coming from which CPSESs are buying, Swain informed.
The MSME ministry has been working to ease credit access for MSMEs through various schemes.
“Total loan guaranteed under ECLGS is Rs 3.47 lakh crore out of which amount earmarked to MSME is Rs 3.1 lakh crore. The performance of the credit guarantee scheme has achieved a milestone with a guarantee coverage of Rs 56,000 crore. This is the highest ever since its inception,” Swain said.
The pandemic has seen MSMEs face innumerable challenges. The government reacted quickly to support MSMEs in the hour of crisis. They responded by focusing on business continuity and innovation.
Swain said that the stimulus announced under Aatma Nirbhar Bharat Packages had made a significant difference to MSMEs across sectors. While there have been many big and small initiatives, the more noteworthy ones include the Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs. Rs 50,000 crore equity infusion through MSME Fund of Funds and Redefining MSMEs.
Before this, Shri Swain served as Special Secretary in the Commerce Ministry. He is a 1988-batch IAS officer of the Gujarat cadre.
