Now universal enterprise IDs for small firms

24 Jan 2023 CW Team

According to an internal document, the Union government is working on a Universal Enterprise ID system to help strengthen the credit ratings of small businesses, which are the engines of the Indian economy.

A group of MSMEs will form a special purpose vehicle (SPV) under the proposal, which may be announced in the Union budget, to borrow from banks in a single transaction and on-lend to its members.

Credit rating agencies are also expected to develop new models for assessing the creditworthiness of MSMEs.

In 2019, an expert committee on micro, small, and medium enterprises (MSMEs) led by former Sebi chairman U.K. Sinha proposed the enterprise ID to improve credit availability to these entities. According to the 73rd round of the National Sample Survey, India has approximately 63.39 million MSMEs (NSS).

The Sinha committee recommended making MSME rating products more relevant and predictive of credit performance by encouraging rating agencies to build more 360-degree scoring models using newer data sources such as utility bills and tax payments, among others.

"The implementation of a Universal Enterprise ID will help this market. Rating agencies may need to develop newer offerings to encourage the growth of cash flow-based lending. "Banks must specify the workflow in their credit appraisal process if the MSME has a credit rating available to it," the committee stated in a report.

The Sinha committee report found that there is no common identifier through which an entity or enterprise can be recognised, referenced, and electronically verified, and enterprises "face problems when they approach other authorities for any permissions".

The panel sought to implement enterprise ID using PAN on a mission-mode basis in order to ensure credit availability to MSMEs.

Emails sent to the ministries of micro, small, and medium enterprises and finance went unanswered as of press time.

Infrastructure Energy

16 Sep 2025

Udangudi Thermal Plant’s First Unit Synced to Grid

The first 660 MW unit of the Udangudi Supercritical Thermal Power Project in Tamil Nadu has finally been synchronised with the grid, marking a long-awaited milestone for the state’s power sector. The project, being developed at a cost of Rs 13,076 crore by Tamil Nadu Power Generation and Distribution Corporation Ltd (TNGPCL), was originally scheduled for commissioning in 2021 but faced repeated delays due to court disputes and the COVID-19 pandemic.The synchronisation took place at 7.56 pm on Thursday, when the unit produced 42 MW during its initial trial run. Officials noted that the plant ..

Kandla Port to Expand Operations Beyond Gujarat

In a strategic shift, Kandla Port, managed by the Deendayal Port Authority (DPA), is preparing to expand its operations beyond Gujarat for the first time. The authority has confirmed that it is exploring opportunities to manage both public and private terminals in Maharashtra and Karnataka.Kandla Port, located in Gujarat’s Kutch district, has traditionally been one of India’s busiest ports, handling more than 150 million tonnes of cargo in the last financial year. About 60 per cent of this was petroleum, oil, and lubricants, while the remainder included timber, food grains, chemicals, and ..

Mumbai Port Seeks Nod to Reclaim Sea at Jawahar Dweep

The Mumbai Port Authority (MbPA) has proposed reclaiming 4.14 hectares of sea at Jawahar Dweep, also known as Butcher Island, to build additional crude oil storage facilities. The proposal, which will be placed before the Maharashtra Coastal Zone Management Authority for clearance, aims to improve turnaround times for ships handling petroleum and chemical cargo.Officials argue that the move is essential, as liquid petroleum and chemicals account for nearly 70 per cent of the port’s cargo. Currently, oil unloaded at Mumbai Port is piped to refineries in Mahul, but limited storage capacity has..