Question : INVESTMENT IN MSMES



(a) whether the Government provides modern technology and required investment to the Micro, Small and Medium Enterprises (MSMEs);

(b) if so, the details thereof;

(c) the share of the MSMEs in the total industrial production and export of the country during each of the last three years and the current year, State-wise; and

(d) the steps taken by the Government to increase the share of MSMEs in the industrial production and exports?

Answer given by the minister


MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI VAYALAR RAVI)


(a)&(b): The Government provides support for facilitating technology upgradation and required investments to micro, small and medium enterprises under the schemes viz. Credit Linked Capital Subsidy Scheme (CLCSS) and National Manufacturing Competitiveness Programme (NMCP). Under CLCSS, capital subsidy of 15% of the cost of plant and machinery is provided subject to the ceiling of Rs.15 lakh for technology upgradation. Under the NMCP, there is a provision of subsidy of 25% of the project cost subject to maximum of Rs.10 lakh for implementation of energy efficient technology.

(c): As per latest data available, share of Micro and Small Enterprises (MSEs) in total industrial production, at 1999-2000 prices, has been 45.62%, 45.24% and 44.86% during 2006-07, 2007-08 and 2009-10 respectively. Share of MSMEs in total export of the country has been 32.92%, 31.92% and 30.80% during 2005-06, 2006-07 and 2007-08 respectively (latest data available). State-wise data of share of MSMEs in the industrial production and exports is not maintained centrally.

(d): The Ministry of Micro, Small and Medium Enterprises has been implementing various Schemes for promotion and development of the Micro, Small and Medium Enterprises (MSMEs) in the areas of credit, infrastructure, technology- upgradation, marketing etc. The Ministry has also launched a National Manufacturing Competitiveness Programme (NMCP) to improve the competitiveness of the MSMEs through its 10 components namely Lean Manufacturing Competitiveness Scheme, Enabling Manufacturing Sector to be Competitive through Quality Management Standards/Quality Technology Tools, Promotion of Information and Communication Technology, Technology and Quality Upgradation Support, Marketing Assistance and Technology Upgradation Scheme, Marketing Support/Assistance (Bar Code), Design Clinic Scheme, Setting up of Mini Tool Rooms, Building awareness on Intellectual Property Rights and Support for Entrepreneurial and Managerial Development through Incubators. Implementation of these schemes/programmes, inter-alia, aims to facilitate the growth of MSMEs.