New Delhi, Dec 14 (NationPress) - The Central Government is implementing targeted initiatives to foster the growth of Micro, Small, and Medium Enterprises (MSMEs) by simplifying regulations to improve the ease of doing business and enhancing their access to credit for business expansion, as stated in an official announcement released on Sunday.

The Bureau of Indian Standards (BIS), responsible for enforcing Quality Control Orders (QCOs) from various ministries, is granting specific exemptions and relaxations to MSMEs to prevent disruptions in domestic production, the announcement highlighted.

Among the significant relaxations and exemptions are extensions ranging from 3 to 6 months for Micro and Small Enterprises (MSEs) and exemptions for imports by local manufacturers producing goods meant for export.

Furthermore, there is an exemption on the import of up to 200 units for research and development, along with provisions for clearing legacy stock (produced or imported before new regulations) within six months of implementation.

The BIS has introduced financial and technical relaxations for the MSME sector, which include discounts of 10 to 80 percent on the annual minimum marking fee. An additional 10 percent concession is available for enterprises operating in the northeast region or those run by women entrepreneurs.

Moreover, the requirement for MSME units to maintain an in-house laboratory has been made optional. MSMEs can now utilize services from BIS-recognized laboratories, NABL-accredited labs, or share resources with cluster-based labs or other manufacturing units. The 'Levels of Control' in the Scheme of Inspection and Testing (SIT) have also been made recommendatory, allowing manufacturers to define their own control unit/batch/lot and Levels of Control and communicate this to the BIS.

Additionally, the BIS has made the product certification process guidelines accessible online and is releasing product-specific manuals to aid in conformity assessment according to various Indian Standards.

To enhance monetary policy transmission, the Reserve Bank of India (RBI) has advised banks to link MSME loans to an external benchmark. The reset clause for these loans has been shortened to three months. Furthermore, banks are encouraged to offer existing borrowers a switch option to the new external benchmark interest rates on mutually agreed terms.

The RBI has also initiated various other measures to boost credit flow to the MSME sector, such as the Mutual Credit Guarantee Scheme, which provides a credit guarantee to facilitate loans for purchasing essential equipment and machinery. This scheme covers lenders (Scheduled Commercial Banks, All India Financial Institutions, NBFCs) for term loans up to Rs 100 crore for MSME projects.

Additionally, Scheduled Commercial Banks are now prohibited from requiring collateral for loans up to Rs 10 lakh for MSE units, further easing their access to credit and supporting business growth.