Question : INVESTMENT IN MSMES

(a) whether the Government proposes to increase the plan expenditure in order to boost the growth of the Micro, Small and Medium Enterprises (MSMEs) sector during the Twelfth Five Year Plan;

(b) if so, the details thereof and the number of MSME units operating in the country along with the capital investment involved therein;

(c) whether the Government proposes to open credit facilitation centres for MSMEs clusters existing in the country;

(d) if so, the details thereof including the role of these centres; and

(e) the other steps taken/ being taken by the Government to boost the MSME sector?

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI KALRAJ MISHRA)

(a) & (b): Yes, Madam. An outlay of Rs.24,124.00 crore has been allocated for Ministry of Micro, Small and Medium Enterprises (MSME) for XIIth Five Year Plan period. This XIIth Plan allocation represents an increase of 133.53% over the XIth Five Year Plan allocation of Rs.10,330.00 crore. As per Fourth All India Census of MSMEs and Economic Census (2005), the estimated number of enterprises operating in the country and capital investment involved therein, are 361.76 lakh and Rs.6,89,954.88 crore respectively.

(c)&(d): There are 2887 specialised SME branches of Public Sector Banks operational as on 31.03.2014, including those operational in existing Micro Small Enterprises (MSE) clusters, which provide, inter-alia, credit facilitation services to MSEs. In addition, Small Industries Development Bank of India (SIDBI) has set up Credit Advisory Centres (CACs) in partnership with cluster level industry associations to provide a number of escort services to MSMEs at the cluster level which includes guiding new/existing entrepreneurs regarding availability of schemes of commercial banks, government subsidies/benefits, provide borrowers with debt counselling, answering queries raised by banks etc. So far,50 CACs have been set up at various centres all over India in partnership with Industry Associations covering 306 clusters.

(e): To promote MSMEs in the country, the Government is implementing various schemes/programmes relating to credit, technology upgradation and skill development amongst others. Some of the major schemes / programmes being implemented are (i) Prime Minister’s Employment Generation Programme; (ii) Credit Guarantee Scheme; (iii) Performance and Credit Rating Scheme; (iv) Credit Linked Capital Subsidy Scheme; (v) National Manufacturing Competitiveness Programme (NMCP); (vi) Skill Development Programme to provide skilled manpower for MSMEs; (vii) Providing Infrastructure and Common Facilities Centres to MSME clusters; (viii) Providing Raw material and marketing support through NSIC; and (ix) Marketing Development Assistance Support to MSME etc.