Context :
July 15,
2020, 08:18 IST
Extract
:
The government is discussing ways to boost consumer demand in the
economy, with one option being the possibility of providing salary support of up to Rs 1
lakh crore over the next three years to MSMEs which employ a certain minimum number of employees, as
a way to boost demand in the economy
“This is one way to boost the demand in the economy which has been
suffering,” a senior government official told ET.
At present there are close to 6 crore MSME’s in the country and they form the backbone of
the economy, the official said.
The official added that a minimum number of employees hired by the unit could serve as selection criteria and
the support could be extended for up-to three years.
=========================================================
Dear Shri Nitin Gadkariji
{ Minister for MSME },
Many thanks for this critical support to 6 crore MSME
As far as those “ conditions for eligibility “ for the
proposed “ salary support “ is
concerned, I have, in the past, sent following emails :
====================
=====================================
How
to Boost Economy ……………………………………………………………………[ 20 Sept 2017 ]
Extract :
I suggest following :
# Allow MSME
Exporters to engage TRAINEES ( under the Apprentice Act ) , up
to 25 %
of their current employee-strength
# Increase training duration to 4 years , without obligation for “ absorbing “
# Let the central government subsidize 75 % of the monthly stipend paid to trainees
( indirectly subsidizing the exporters from
that Rs 23,500 crore saved – without
violating our WTO obligations )
=========================================================
No
mere Relief : A Game Changer ………………………………………………………..[ 20 Dec 2017 ]
Extract :
While welcoming this initiative , I urge the Union Government to
take following steps simultaneously , in order to generate , not just 5 million
but 50 MILLION new jobs in the MSME
sector ( and without additional funds ! ) :
# Abolish all visits by Inspectors ( Labour + Shop &
Establishment Departments )
# Allow MSMEs to engage Apprentices under the recently revised
Skills Development
Regulations / Apprentice Act
# For them , remove the upper
limit ( of Apprentices ) which is maximum of 10 % of
employee strength
# Let them engage Apprentices up
to 100 % of their existing employees
# Let them keep these trainees for 3 years under " Retail
Establishment Trainee
Scheme "
# Let the stipend be 100 % (
instead of currently prescribed 60-70-80 % ) of semi
Skilled Minimum wages
( Minimum Semi Skilled Wages are approx
Rs 6,000 per month - so Shopkeeper need
to pay Rs 6000 pm )
# Concerned State Governments to subsidize 50 % of this stipend (so, Shopkeeper's
burden to be Rs 3,000 pm )
[ Stipend Subsidy does not violate WTO ! ]
# To
ensure fool-proof compliance with the number of Trainees engaged and
Stipends
paid , this Scheme,
( 24 hr open + 100 % trainees + 100 % Stipend
+ 50 % Subsidy + 3 year training
program + No inspectors ),
will apply ONLY to those Shops which implement , mobile app MAD outlined
in my
following blog :
=========================================================
Foundation
of Economy ………………………………………………………………………[ 03 Nov 2018 ]
Extract
:
Then on 2 Nov , Shri
Modi laid the foundation of a low cost economy, by announcing a
slew of measures to boost our MSME sector
I am referring to the announcements made by Shri Modi with
regard to boosting MSME sector
My suggestion :
Reduce " Cost of Inflation " by limiting
" Annual Wages-Salaries Increases " to 75 % of
the preceding year's GDP number ( ie: if GDP for 2015, is 8 % , maximum salary /
wage increase that can be granted on 01
April 2016 , will be 6 % ) .
===================================================================================
Organizing
the Unorganized ………………………………………………………………………[ 04 Feb 2019 ]
Extract
:
Transform millions of MSME into “ Skill Training Centres “
Some of these may be VR based training, requiring VR headsets (
to be provided
FREE to MSME by this Ministry ) . These can be used not
only by the apprentices
but also by the MSME’s own workers
As an incentive / motivation for the MSME to undertake to
train at least 2
apprentices per year ( under the Apprentice Act ) , following
may be considered :
> Government subsidizing the stipend
payable to the trainees by 50 %
Ø No obligation to
absorb the trainees after completion of training
======================================================
Wages
during Corona Lockdown ? …………………………………………………..[ 30 April 2020 ]
Extract
:
Ø Reconsider the MHA order re payment
of wages
Ø Consider my suggestion re Govt subsidizing 25 % of wages
paid during July-Aug-Sept
Ø Convert this threat into an
opportunity to revolutionize the system for compilation of EMPLOYED –SELF EMPLOYED – JOBLESS statistics , by motivating employers to
implement From BAD to MAD , not by any law
but by offering irresistible BENEFITS to companies which implement this
=========================================================
MGNREGA
: Can it morph into UBI ? ……………………………………………………….[ 11 May 2020 ]
Extract
:
If an Urban establishment provides work to any of the REGISTERED
UNEMPLOYED
For them, the wages
will get paid directly by the Ministry subsidizing , at rates prescribed under
Any wages paid in excess , will have to be borne by the establishment
concerned
This “ Wage
Subsidy “ will be available ONLY to those establishments, who install in
their
From BAD to MAD [ 01 June 2016 ]
MAD goes to
Mandi [ 02 Jan 2020 ]
Because of this Wage Subsidy ( better name it CORONA EMPATHY – so as not to run foul of WTO ) , MSME will revive
faster , with less worry for Cash Flow . Products will become cheaper
=====================================================================================
With regards,
Hemen Parekh / hcp@RcruitGuru.com / 15
July 2020
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