37 lakh informal micro enterprises registered on UAP

The Udyam Assist Platform (UAP), introduced earlier this year, has successfully registered 3.5 million units. The UAP facilitates Udyam registration for informal micro enterprises (IMEs) not registered under Goods and Services Tax (GST).

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Launched in January this year, Udyam Assist Platform (UAP) has successfully registered 3.5 million units by August 3, 2023. The UAP, aimed at providing Udyam registration certificates to informal micro enterprises (IMEs) not covered by Goods and Services Tax (GST) registration, has achieved an impressive count of 3.696 million registered IMEs within seven months since its inception, said Bhanu Pratap Singh Verma, Minister of State in the MSME Ministry.

“Government has launched Udyam Assist Platform (UAP) under the MSME formalization project on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit for availing benefits under Priority Sector Lending,” said Verma.

As per the Ministry of MSME, the platform was introduced by incorporating 8 lakh informal micro enterprises into the formal sector. These enterprises are part of the recipients of the government’s PM SVANidhi scheme, which focuses on street vendors. The scheme provides for a collateral-free working capital loan of up to Rs 10,000 in order to formalise street vendors.

In a report from April of the previous year, the standing committee on finance, led by Jayant Sinha, former Minister of State for Finance, initially deliberated on the Udyam Assist Platform (UAP).

According to that report, this platform not only renders registered entities eligible for government scheme benefits but also facilitates seamless integration into the rapidly evolving digital landscape, encompassing platforms such as GeM, TReDS, Invoicemart, and other digital marketplaces. The report further emphasizes the potential for these units to undergo KYC and credit verification, thereby granting them access to a diverse range of financial services tailored to their growth at various stages.