Laghu Udyog Bharati is one of India’s largest MSE Industry Networks in India, with branches in every state and members in every district of India, working towards the welfare of MSEs in India. We have grass-root level insights into the challenges faced by the MSEs as well as changing industry trends & practices on the ground.
2. An Executive & Abhyas Verg both
Conducted by Gwalior Unit of Madhya
Pradesh for Office Bearers in the Special
Presence of National Organizing Secretary
Shri Prakash Chandra and National
General Secretary Shri Ghanshyam Ojha
on 11-12 June, 2022.
LUB’s Women Wind of Kota Unit of Rajasthan
State organized a Camp for Free Eye, Dental
& Blood Testing on 27th June, 2022.
Minister of Tourism & Culture Shri Jaiveer
Singh Discussed Core Issues of MSMEs
with LUB’s Entrepreneurs of Kashi on 22nd
June, 2022.
An Important Meeting was held for Discussion with Delegation of Industrialists
of Delhi NCR and LUB’s Members of North-East on initiative of Governor Assam
Shri Mukhi on 10th June, 2022.
A Seminar was organized on ‘Creation of New Entrepreneurship’ by Mandor Unit, Jodhpur of
Rajasthan State in presence of National General Secretary Shri Ghanshyam Ojha, Joint
Secretary DIC Shri Paliwal and Unit President Smt. Manju Saraswat on 25th June, 2022.
3. 3
UDYOG TIMES
GDP Data…
Encouraging the Economy
Editorial
Áflfl⁄UÁáÊ∑§Ê
Editorial 03-03
How UP can Achieve $1-Trillion Economy..... 04-05
Indian Railways Innovation Policy, ..... 05-05
LUB's Jaipur Anchal submitted Grivencess... 06-07
S≈UÊ≈U¸-•¬ •ı⁄U ∞‚∞◊߸ ∑§Ê ∑Ò§‚ ∑§⁄U¥ ‚¥øÊ‹Ÿ... 08-09
∞◊∞‚∞◊߸ ∑§Ù ¬Ê⁄UŒ‡Ê˸ ’Ò¥Á∑§¥ª ‚ÈÁflœÊ... 10-11
≈UÒÄU‚ ◊¥ ¿Í≈U ¬⁄U ÁflûÊ ◊¥òÊË Ÿ Á∑§ÿÊ ’«∏Ê ∞‹ÊŸ... 12-12
Revised Guidelines for PMEGP Scheme .... 13-14
LUB's News in Brief.... 14-16
Price - 10/- Life Membership 1000/-
An In-House Monthly Magazine of Laghu Udyog Bharati
published by Om Prakash Mittal
Mail: opmittal10256@gmail.com Web : www.lubindia.com
Corporate Office & Head Office :
Plot No. 48, Deendayal Upadhyay Marg,
New Delhi-110002
Ph.: 011-23238582
Registered Office :
Plot No. 184, Shivaji Nagar, Nagpur-440011
Ph.: 0712-2533552
Dr. Kirti Kumar Jain
kkjain383@gmail.com
The National Statistical Office came out with the
provisional Gross Domestic Product (GDP) data for
2021-22, along with growth data for the January-March
quarter of the financial year. According to the estimate,
India's GDP growth is seen at 8.7 percent against 6.6
percent contraction in the year 2020-21 and at 4.1 per-
cent growth in Q4 against 1.6 percent during the
January-March period of FY21. This data set appears
encouraging, at least on the surface.
A deeper look into the GDP data shows that growth
of gross value added (GVA)- a basic constituent of
GDP- stands at an impressive 8.1 percent for the year
2021-22, but GVA growth during Q4 stands only at 3.9
percent. Even during the third quarter of the financial
year, GVA growth was 4.7 percent, and the 'encourag-
ing' 8.1 percent GVA growth for 20121-22 was driven
mainly by 18.1% GVA growth in the first quarter for
FY22.
Now, look at the growth in taxes receipts (taxes
received minus subsidies paid) which stands at Rs. 11.3
trillion for FY22, which combining with GVA of Rs.
136.05 trillion, pushes our GDP to Rs. 147.35 trillion in
FY22. While growth in taxes receipts looks encourag-
ing, one should not overlook the fact that growth in
taxes receipts had been higher at Rs. 12.9 trillion in
2019-20. Also, with food, fuel and fertilizer subsidies
likely to go up in the current year, it seems growth in
taxes receipts will be a challenge area even in 2022-23.
It is also discouraging that manufacturing activities
registered a modest growth of 9.9 percent in FY22, and
with global demand slowing on geopolitical issues,
India's manufacturing sector may decelerate further in
the coming months. In addition, export curbs on steel
and other commodities may hit the sector further. In
this situation, it is imperative that the government steps
in with some strategic plan to safeguard the economy.
I invite your opinions.
c c c
OFFICIAL PUBLICATION OF LAGHU UDYOG BHARATI
Volume -5 Issue - 08 June, 2022
Editorial Board
g Patron
Shri (Dr.) Krishna Gopal ji, Sampark Adhikari
Shri Prakash Chandra, National Org. Secretary 094685-78166
Shri Baldevbhai Prajapati National President 098241-55666
Shri Ghanshyam Ojha, National Gen. Secretary 098290-22896
g Publisher
Om Prakash Mittal, Past President 094140-51265
g Editor
Dr. Kirti Kumar Jain 094141-90383
g Associate Editor
Mahendra Kumar Khurana 098290-68865
g Co-Editor
Dr. Sanjay Mishra 098295-58069
UDYOG
TIMES
4. A day after being sworn in as Chief Minister of Uttar
Pradesh for a second successive term, Yogi
Adityanath directed officials to prepare a blueprint
detailing how the state can achieve its target of
becoming a $1 trillion economy.
"The roadmap for the future should be prepared
with teamwork and inter-departmental coordination.
For this work, 'Team UP' will have to be engaged with
full commitment. To make the state's economy $1 tril-
lion, 10 primary sectors should be identified," said
Adityanath.
Days ahead of the swearing-in ceremony, the state
government reinitiated efforts to appoint a consultant
to suggest measures to achieve the target by 2027.
Last year in March, a similar tender seeking a con-
sultant to boost the size of the UP economy to that
level by 2025 was cancelled. The five-year target has
now shifted from 2020-25 to 2022-27.
Target set by PM Modi in 2018
The trillion-dollar economy target for Uttar
Pradesh was suggested by Prime Minister Narendra
Modi when he inaugurated the UP Investors' Summit
in Lucknow on February 21, 2018.
"Can Maharashtra and Uttar Pradesh compete with
each other to become a trillion-dollar economy? Will
the UP government compete with other states? More
the competition, more will be the investment," the PM
said.
The PM's observation set the ball rolling and the
state government began holding discussions to pre-
pare a roadmap. The UP government floated a tender
on June 19, 2020, came up with a revised request for
proposal (RFP) on October 9, 2020 and decided to
hire a consultant with 2020-2025 as the timeline for
achieving the target.
At least eight firms, including Deloitte, Boston
Consulting Group, Indian Institute of Management-
Lucknow and Grant Thornton, submitted bids,
according to reports. But after
opening the financial bids, the state government
decided to cancel the process on March 22, 2021.
The Adityanath government is now planning to
meet the target by 2027, and recently published an
advertisement seeking to engage a new consultant for
the purpose.
A consultant can be "any training and research
institutes or universities or consulting firms or gov-
ernment departments or subject matter specialists or
entity or person or associations of person that may
4
UDYOG TIMES
Vision
Udyog Times Desk
How UP can Achieve $1-Trillion
Economy Target?
India's most populous state needs to boost the size of GSDP four-five
times to achieve the target by 2027. The state government says it needs
to take some 'Giant Steps' to reach the goal.
5. 5
UDYOG TIMES
provide or provides the services" to the government's
planning department, the RFP document said.
The Scope of Work
The consultant will have its work cut out. The gov-
ernment has divided the scope of work into five cate-
gories-understanding the status of the economy,
developing the strategic framework, creating an
implementation roadmap, designing institutional
reforms and developing a monitoring, learning and
evaluation framework.
Among other things, the consultant will carry out a
critical analysis of macro and micro-economic sec-
toral data around the Gross State Domestic Product
(GSDP), trade, investment, expenditure, savings,
workforce participation, inflation, imports and exports
in the state for 2016-17, 2017-18, 2018-19, 2019-20,
2020-21 and 2021- 22(E) based on data from govern-
ment and credible institutional sources.
The analysis should include all key sectors, includ-
ing agriculture, infrastructure, rural development,
education and tourism, to name a few. Additionally,
key factors that have contributed to each sector's
growth in the last four years have to be identified,
together with how these factors were aided by central
and state policies.
The consultant will also have to compare the struc-
tural, financial and governance reforms and outcomes
achieved in the top three states in India and top three
countries across the globe with similarities to Uttar
Pradesh.
Based on the present status and recent trends, the
consultant needs to determine multipliers between
sectoral growth and impact on GSDP, assign targets
for each sector and spell out how it can achieve the
goal to propel UP towards becoming a $1 trillion
economy.
c c c
I ndian Railways has taken a major initiative in
the field of innovation through the participation
of start-ups as well as other entities. Railway
Minister Ashwini Vaishnaw launched a policy-
"StartUps for Railways" in Rail Bhavan, New
Delhi, which will bring scale and efficiency in the
field of operation, maintenance as well as the cre-
ation of infrastructure through the participation of
very large and untapped startup ecosystem.
According to Vaishnaw, through this platform, start
ups will get an opportunity to connect with the
national transporter. Out of more than 100 problem
statements received from various divisions, field
offices or zones of Indian Railways, eleven prob-
lem statements such as rail fracture, headway
reduction, etc., have been taken up for this pro-
gram's phase-1.
The Railway Minister further said these will be
presented before the start ups to find innovative
solutions. Vaishnaw requested the startups to use
this opportunity as well as ensured them support
from the national transporter in form of a 50% cap-
ital grant, scale, assured market, and ecosystem.
Following are some of the salient details of
Indian Railways' Innovation Policy:
1) Grant up to an amount of Rs. 1.5 crore to inno-
vator on basis of equal sharing with provision
of milestone-wise payment.
2) Entire process from floating of problem state-
ment to prototype development is online with
defined time line to make it objective and trans-
parent.
3) Prototypes' trials will be done in Indian
Railways. On successful performance of proto-
types, enhanced funding will be provided to
scale up deployment.
4) Innovators will be selected by a transparent and
fair system which will be dealt through online
portal.
5) Developed Intellectual property rights will only
remain with the innovator.
6) Assured developmental order to innovator.
7) De-centralization of the complete process of
product development at divisional level in order
to avoid delays. c c c
Indian Railways Innovation Policy, StartUps for Railways
launched to Improve Operational Efficiency & Safety
6. 6
UDYOG TIMES
1. That Laghu Udyog Bharati acts as a bridge
between the Government of India and LUB members
who belong to various spectrums of trade and indus-
tries. Some of our members have raised some objec-
tions regarding the policies.
2. That FSSAI vide its notification dated
21.04.2022, has proposed Food Safety and Standards
(Food Products Standards and Food Additives)
Amendment Regulations, 2022, in FSS (FPS & FA)
Regulations, 2011. Through the said proposed
amendment, Fssai under the food category system
"15.2 processed nuts including coated nuts and nut
mixtures" has introduced "(Only Pan Masala and are-
canut based mouth fresheners)".
3. That FSSAI vide its notification dated
21.04.2022, has also invited objections or suggestions
(if any) with respect to the said amendment draft,
from all the persons likely to be affected thereby, for
consideration. The copy of the draft notification dated
21.04.2022 is annexed herewith and marked as
Annexure-1.
4. That FSSAI vide its previous notification dated
02.05.2019, has issued clarification pertaining to cat-
egorization of pan masala, mouth fresheners and
mukhwas in the Food Licensing Registration System
(FLRS) by categorizing Pan Masala and areca nut
based mouth fresheners under food category system
15.2 of the Food Safety and Standards (Food Prouct
Standards and Food Additives) Regulations, 2011.
The said notification was subsequently withdrawn
with effect from 13.05.2019. The copy of the notifi-
cation dated 02.05.2019 is annexed herewith and
marked as Annexure- 2.
5. That FSSAI vide its subsequent notification
dated 22.09.2021, issued clarification to facilitate the
licensing for some traditional mouth fresheners such
as Dried Fruits/vegetables/nut based mouth freshen-
ers, spice based mouth fresheners and other tradition-
al mouth fresheners by introducing a new sub-cate-
gory as "5.2.4 Mouth Fresheners" under the food cat-
egory '5.2 Confectionary'. The copy of the notifica-
tion dated 22.09.2021 is annexed herewith and
marked as Annexure- 3.
6. That various industries in the business of man-
ufacturing mouth fresheners and mukhwas have
obtained their licenses under food category system
5.0 'Confectionery' of the Food Safety and Standards
(Food Product Standards and Food Additives)
Regulations, 2011. The additives available in the
main food category "5.2 confectionery including hard
and soft candy, nougats etc. other than food cate-
gories 5.1, 5.3, and 5.4" are applicable for the mouth
fresheners and mukhwas manufacturing industries.
7. That the food category 5.2 allows the industries
into manufacturing of mouth fresheners, to include
mainly the following permitted artificial sweeteners
in their manufacturing processes:-
Food category system Food category name Food
additives Recommended maximum level
5.2 confectionery including hard and soft candy,
nougats etc. other than food categories 5.1, 5.3, and
5.4 Saccharins 500 Mg/Kg
Neotame 330 Mg/Kg
Sucralose (Trichlorogalactosucrose) 1800 Mg/Kg
8. That the aforesaid artificial sweeteners avail-
able with the 5.2 food category enables the industries
to manufacture the confectionery items like various
kinds of candies, nougats etc., which are consumed in
large quantities by people of all age groups including
children. It is also pertinent to mention here that the
LUB's Jaipur Anchal submitted
Grivencess regarding Food Safety Act
Laghu Udyog Bharati, Jaipur Anchal presented this representation
cum objections, on the following facts and grounds:
Special Report
Udyog Times Desk
7. 7
UDYOG TIMES
confectionery items are usually consumed in larger
quantities in single serving as oppose to mouth fresh-
eners and mukhwas. The change in the food category
system from 5.2 to 15.2 will amount to discrimination
with the Food Business Operators, working with the
mouth freshener industries.
9. That the new food category system "15.2
Processed nuts including coated nuts and nut mix-
tures" will allow the industries which are into manu-
facturing of mouth fresheners, to include only the fol-
lowing permitted artificial sweetener in their manu-
facturing processes:-
Food category system Food category name Food
additives Recommended maximum level
15.2 Processed nuts including coated nuts and nut
mixtures Neotame 32 Mg/Kg.
10. That without the availability of the required
additives like artificial sweeteners with the recom-
mended maximum level as prescribed in the food cat-
egory system 5.2, the Food Business Operators will
not be able to manufacture their products with the
same consistency and taste, which will be a huge set-
back for the aforesaid industries.
11. That the ingredients used in the preparation of
food products like Pan Masala and other areca nut
based mouth fresheners like sweet scented supari &
mukhwas, are altogether different and as such cate-
gorizing them under the same food category 15.2 will
cause misunderstanding among the enforcement
authorities and the members of the trade.
12. That the GST rate applicable on pan masala is
28% plus cess @ 60%, coming to a total of 88%, as
oppose to mouth fresheners which is only 18%. The
Government levies higher rate of taxes on pan masala
which is detrimental to people's health in comparison
to mouth fresheners and mukhwas, which are tradi-
tional Indian snacks. Categorizing areca nut based
mouth fresheners along with pan masala into 15.2
food category system will be equivalent to holding
both the products, similar in nature.
13. That mouth fresheners like sweet scented
supari and mukhwas use permitted artificial food col-
ors and sweeteners that provide them their enhanced
and enriched flavor and color. Categorizing pan
masala and other arecanut based mouth fresheners
like sweet scented supari & mukhwas under the same
food category system 15.2 and prohibition of use of
synthetic food color in arecanut based mouth fresh-
eners, will lead to the difficulties in the manufactur-
ing processes of mouth fresheners like sweet scented
supari and mukhwas, which will eventually be detri-
mental to the Food Business Operators working with
the mouth freshener industry.
It is therefore prayed that in the light of aforesaid
grounds, an appropriate order/notice/direction may
be issued and:-
1. The draft notification dated 21.04.2022, bearing
no. F. No. Stds/Pan Masala Issue/FSSAI/2019, may
be withdrawn.
2. A further clarification may be issued pertaining
to the categorization of arecanut based mouth fresh-
eners like sweet scented supari, mukhwas and other
similarly situated mouth fresheners.
c c c
M CA is set to launch random electronic
scrutiny of corporate filing later this year.
There will be stratified random sampling of the
returns. The computer driven scrutiny will be sim-
ilar to the one that will be taken by income tax
department that take few returns.
Scrutiny work will begin earlier, version 3 of
MCA21 with system of RED Flags.
*Red Fags* system will include:
1) Frequent resignation by Auditors or directors;
2) Companies with Low paid up capital but with
high turnover; and
3) High related party transactions.
Govt. is now seeking to improve oversight as well
as compliance.
The new module will immediately send out an
alert to the companies if they miss the deadline for
filing returns or other compliances. Non fillers
will be tracked and prodded to file. MCA is mov-
ing to pre filling (Pre field) and auto filing regime
for returns.
Web based form is being implemented replacing
current system of filing. Nearly 90% prefilling
will happen. Key focus is to improve compliance
and make life easy for businesses including
through decriminalization of laws.
Burden on small companies will be reduced.
c c c
Govt. to Launch Random E-scrutiny of Corp Filings
13. Q. What is maximum project cost allowed under
PMEGP?
A. Rs.25.00 lakhs for manufacturing unit and
Rs.10.00 lakhs for Service Unit
Q. Whether cost of land includes in the project
cost?
A. No.
Q. How much Margin Money (Govt. Subsidy)
admissible?
Categories of beneficiaries under PMEGP
Rate of (Margin Money) Subsidy
(of project cost)
Area (location of project/unit) Urban Rural
General Category 15% 25%
Special (including SC/ST/OBC/Minorities/Women,
Ex-servicemen/Physically handicapped/NER/Hill and
Border areas etc. 25% 35%
Q. What is the component of project cost?
A. Capital Expenditure Loan, one cycle of working
capital and 10% of project cost as own contribution in
case of General category and 5% of project cost in
case of weaker section.
Q. Who are the beneficiaries?
A. Individual Entrepreneurs, Institutions, Co-opera-
tive Societies, Self Help Groups, Trusts
Q. Which are the financial agencies?
A. 27 Public Sector Banks ,Regional Rural
Banks(RRB), Co-operative Banks and Private
Scheduled Commercial Banks approved by respective
State Task Force Committee.
Q. How the capital expenditure loan / Cash Credit
Limit be utilized ?
A. Working Capital at least once should touch 100%
limit of Cash Credit within three years of Lock-in
period of M.M. and not less than 75% of the utiliza-
tion of the sanction limit on an average.
Q. Where the beneficiary has to submit his/her
application/ Project?
A- Beneficiary can submit his/her application/Project
online on kvic website www.kvic.org.in / kvicon-
line.gov.in/pmegpeportal. List of office addresses of
KVIC/KVIB/DIC are available at our website.
Q. What is Village Industry ?
A. Any Village Industry (except those mentioned in
the negative list) located in the Rural Area which pro-
duces any goods or renders any service with or with-
out the use of power and in which the fixed capital
investment for head of a full time artisans or worker
does not exceed Rs.1.00 lakh in plain area and Rs.1.50
lakhs in hilly areas and for A & N Island and Laxdeep
Rs.4.5 Lakhs.
Q. What is rural area ?
A. Any area classified as Village as per the revenue
record of the State, irrespective of the population. It
also includes an area even if classified as town pro-
vided its population does not exceed 20000
Q. What is Age limit ?
A. Any adult beneficiary above 18 years is eligible for
financing under PMEGP.
Q. What are the main criteria of project?
A. It should fulfil the criteria of rural area (for Rural
Area project), per capita investment, own contribu-
tion, negative list and the unit should be new one
Q. Whether EDP training is compulsory?
A. Before MM Claim through PMEGP eportal, EDP
training of 10 working days for Project cost More than
5.00 lakhs and 6 Working days training for up to
Project Cost 5.00 lakhs to the beneficiary is compul-
sory
13
UDYOG TIMES
Revised Guidelines for PMEGP Scheme
Frequently asked questions on Prime Minister's Employment
Generation Program /PMEGP Scheme
20. 20
UDYOG TIMES
UDYOG OFFICIAL PUBLICATION OF
LAGHU UDYOG BHARATI
Registration No. RAGBIL/2016/69093
Postal Reg. No. : Jaipur City/433/2020-22
An In House Monthly Magazine of Laghu Udhog Bharti, Published by Om Prakash Mittal Printed at
RAJ BLOCKS, B-81, Road No. 4, 22 Godown Industrial Area Kartapura, JAIPUR-302019
TIMES
30 June, 2022
LUB’s Maharashtra Unit conducted an Executive Meeting on ‘Expansion of Organization with
Quality and Quantity’. On this Occasion, National Organizing Secretary Shri Prakash Chandra,
State In-charge Shri Ravindra Sonawane, NWC Member Smt. Smita Ghaisas and other Office
Bearers were present at Pune on 20th June, 2022.
Industry Minister, Gujarat Shri Jagdish
Bhai Panchal Visited LUB’s Headquarter
at Delhi. National President Shri
Baldevbhai Prajapati, NWC Members Shri
Naresh Pareek, Smt. Smita Ghaisas and
MSME Board Member Smt. Anju Singh
were also present on 30th June, 2022.
Union Labor Minister Shri Bhupendra Yadav and LUB’s National Vice President Shri Hariharan
attended the 188th Meeting of Employees' State Insurance Scheme (ESIC) at Telangana on
18-19 June, 2022.
LUB's Team Tamil Nadu with Union
Minister of Commerce and Industry Shri
Piyush Goyal.
LUB’s Bhiwadi Unit of Rajasthan State was
reorganized in the presence of National
Organizing Secretary Shri Prakash Chandra,
National General Secretary Shri Ghanshyam
Ojha & Jaipur Anchal President Shri Sudhir
Garg on 10th June, 2022.