Question : USE OF MODERN TECHNOLOGY IN MSMES SECTOR

(a): the percentage of micro, small and medium enterprises (MSMEs) using modern technology in the country;

(b): whether a large number of MSMEs have not been able to use modern technology due to the paucity of funds;

(c): if so, the details of the financial assistance provided to MSMEs for the purpose during each of the last three years and the current year, State-wise;

(d): whether the World Bank/Foreign agencies have approved any loan for MSMEs in the country; and

(e): if so, the details of the funds granted and utilized by the States including Bihar for this purpose during the said period, State-wise; and

(f): the extent to which MSMEs sector has been benefited in term of its growth by such assistance?

MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES(SHRI K.H.MUNIYAPPA)

(a): Madam, based on the Fourth All India Census of Micro, Small and Medium Enterprises (MSMEs) with reference year 2006 – 07, it is estimated that around 12.31% of MSMEs were using ‘Technical Know-how’ obtained from abroad or through Domestic Collaborating companies/Domestic R & D institutions/specialized agencies/ organizations.

(b) & (c): Due to insufficient investment and lack of awareness about quality standards and modern technologies, a large percentage of MSMEs continue with outdated technologies and plant & machineries. In this regard, Ministry of Micro, Small and Medium Enterprises is operating a scheme for technology upgradation of SMEs called “Credit Linked Capital Subsidy Scheme” (CLCSS), which aims at facilitating technology upgradation by providing 15% upfront capital subsidy (maximum up to Rs.15.00 lakh) on institutional finances availed by them. The State-wise details of financial assistance given to MSMEs during each of the last three years and the current year are given in Annexure – I.

(d) & (e): World Bank has sanctioned a loan of US$400 million to SIDBI during referred period to provide financial assistance to Micro, Small and Medium Enterprises (MSMEs). As on 31.10.2012, an amount of US$370 million was utilized, out of said World Bank loan. The State-wise utilization of the said World Bank loan is given in Annexure – II.

(f): Micro, Small and Medium Enterprises are set up by individuals. The Central Government provides assistance for the promotion and development of MSMEs through implementation of various schemes/ programmes relating to credit, infrastructural development, technology upgradation, marketing, entrepreneurial/skill development, etc. As per the Fourth All India Census of Micro, Small and Medium Enterprises (MSMEs) with reference year 2006 – 07, wherein the data was collected till 2009, the number of enterprises in the MSME sector has grown to 361.76 lakhs in 2006 – 07 from 105.21 lakhs in 2001 – 02 (Third Census).