Question : Promotion of MSME Sector

(a) the total number of registered and unregistered Micro, Small and Medium Enterprises (MSMEs) in the country at present, State/UT-wise;

(b) whether the Government has made any assessment regarding the problems faced by the MSMEs in the country in obtaining loans, if so, the details and the outcome thereof along with the corrective steps taken/being taken by the Government in this regard;

(c) whether the Confederation of Indian Industry has requested for simplification and rationalization of inspection and regulations of the MSMEs;

(d) if so, the details thereof and the action taken by the Government thereon; and

(e) the other steps including new schemes/programmes being taken by the Government for promotion of MSME sector in the country along with the funds provided for the purpose during the last three years and the current year ?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF
MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI HARIBHAI PARTHIBHAI CHAUDHARY)

(a): The Total Number of registered micro, small and medium enterprises (MSMEs) in the country as on 10.11.2015 is 55,76,540. The number of MSME units registered as Udyog Aadhar Memorandum till 10.11.2016 is 18,15,664. Earlier till 29.09.2006, MSME units were registered as small scale industry and from 29.09.2006 to 18.09.2015 as Enterprise Memorandum II (EM II). The total number of MSME units with SSI registration is 15,63,974 and as EM-II registration 21,96,902. The State-wise number of registered MSMEs as on 10.11.2016 in the country is given at Annexure –I.

As per the last MSMEs Census (Fourth) of Micro, Small & Medium Enterprises data collected with reference to base year 2006-07, as well as data extracted from the Economic Census 2005 conducted by Central Statistical Office (CSO), Ministry of Statistics & Programme Implementation (MoSPI), for activities excluded from Fourth Census, namely wholesale / retail trade, legal, educational and social services, hotel & restaurants, transports and storage & warehousing (except cold storage), the total Number of unregistered MSMEs in the country is 346.12 lakh. The State-wise number of Unregistered MSMEs as per the data sources mentioned above, in the country is given at Annexure –II

(b): The Government is conscious of the problems being faced by MSMEs in availing loan facilities under various schemes of the Ministry. The micro, small and medium enterprises (MSMEs) face constraints in accessing credit facilities from institutional sources which include inadequate and timely credit, high cost of credit, collateral requirements, etc. MSMEs do have the disadvantage of being perceived as high risk category by Banks.

The Reserve Bank of India (RBI) has issued detailed guidelines to all scheduled commercial banks on lending to micro, small and medium enterprises (MSME) sector which, inter alia, provide for a time frame for disposal of loan applications, loan limit for dispensing the collateral requirement and sub-targets for micro enterprises within the MSE lending. In terms of the recommendations of the Task Force on MSMEs under the chairmanship of the Principal Secretary to the Prime Minister, the RBI has advised the banks, inter alia, to achieve a 20 per cent year-on-year growth in credit to micro and small enterprises. Further, the Government is implementing schemes like Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Scheme, etc., throughout the country (including North-Eastern Region), and for all segments of the people including vulnerable sections like SCs/STs, women to facilitate enhanced flow of credit to the MSME sector, especially for micro and small enterprises

(c) & (d) The Ministry has not, so far, received any concrete, actionable request for simplification and rationalization of inspection and regulations of the MSMEs from the Confederation of Indian Industry. Many of the issues of the MSME sector are under the jurisdiction of the State Governments and other Central Government Ministries. Hence, such a comprehensive exercise would have to take into account the concerns of all stakeholders and authorities.

(e): All the promotional activities undertaken by the Ministry of Micro Small and Medium Enterprises (MSME), Govt. of India are in pursuance of the MSME Development Act, 2006. All the schemes of the Ministry of MSME are geared towards promotion, development and enhancement of competitiveness of MSME engaged in manufacturing and services. List of the major such schemes of the Ministry {including those of Office of Development Commissioner (MSME)} is given as Annexure-III.

For implementing various schemes for the development of MSMEs, Government allocated Rs. 2600.00 Crore, Rs. 2500.00 Crore and Rs. 2620.00 Crore for 2013-14 (RE), 2014-15 (RE) and 2015-16( RE), respectively. Plan Outlay for the year 2016-17 (BE) is Rs. 3000.00 Crore.

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