Lok Sabha Question No. 916 (UNSTARRED), answered on 2016-11-21
Subject: Promotion of MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAVINDRA KUMAR RAY, BHARATI DHIRUBHAI SHIYAL, CH. MALLA REDDY, B. S. YEDDYURAPPA, P.R. SUNDARAM, MANOJ RAJORIA, RAVINDRA VISHWANATH GAIKWAD, RAHUL KASWAN

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. † 916

## TO BE ANSWERED ON 21.11.2016

## PROMOTION OF MSME SECTOR

## † 916.  DR. RAVINDRA KUMAR RAY:

DR. BHARATIBEN D. SHYAL:

SHRI CH. MALLA REDDY:

SHRI B.S. YEDIYURAPPA:

SHRI P.R. SUNDARAM:

DR. MANOJ RAJORIA:

PROF. RAVINDRA VISHWANATH GAIKWAD:

SHRI RAHUL KASWAN:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (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

## 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-onyear  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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## Annexure-I referred to in reply to part (a) of Lok Sabha Unstarred Question No. 916 for answer on 21.11.2016

| State / UTs                | Udyog Aadhaar Regd.   | Entrepreneur Memorandum (Part-II) filed   | SSI Registered   | Total     |
|----------------------------|-----------------------|-------------------------------------------|------------------|-----------|
| ANDHRA PRADESH             | 69,339                | 22,128                                    | 45,692           | 1,37,159  |
| ARUNACHAL PRADESH          | 194                   | 483                                       | 417              | 1,094     |
| ASSAM                      | 296                   | 13,864                                    | 19,864           | 34,024    |
| BIHAR                      | 4,84,074              | 27,288                                    | 50,036           | 5,61,398  |
| CHHATTISGARH               | 8,689                 | 11,392                                    | 22,768           | 42,849    |
| GOA                        | 1,548                 | 862                                       | 2,621            | 5,031     |
| GUJARAT                    | 1,51,259              | 3,21,785                                  | 2,29,830         | 7,02,874  |
| HARYANA                    | 17,887                | 6,068                                     | 33,150           | 57,105    |
| HIMACHAL PRADESH           | 2,306                 | 6,395                                     | 11,931           | 20,632    |
| JAMMU AND KASHMIR          | 2,323                 | 8,395                                     | 14,993           | 25,711    |
| JHARKHAND                  | 52,469                | 15,885                                    | 18,190           | 86,544    |
| KARNATAKA                  | 42,550                | 1,66,267                                  | 1,36,186         | 3,45,003  |
| KERALA                     | 25,546                | 1,02,868                                  | 1,50,188         | 2,78,602  |
| MADHYA PRADESH             | 91,383                | 1,45,167                                  | 1,06,997         | 3,43,547  |
| MAHARASHTRA                | 1,59,133              | 1,36,878                                  | 86,586           | 3,82,597  |
| MANIPUR                    | 5,549                 | 1,074                                     | 4,492            | 11,115    |
| MEGHALAYA                  | 199                   | 4,501                                     | 3,010            | 7,710     |
| MIZORAM                    | 184                   | 2,146                                     | 3,715            | 6,045     |
| NAGALAND                   | 107                   | 5,624                                     | 1,332            | 7,063     |
| ODISHA                     | 21,133                | 17,105                                    | 19,606           | 57,844    |
| PUNJAB                     | 16,827                | 17,531                                    | 48,110           | 82,468    |
| RAJASTHAN                  | 82,758                | 1,24,280                                  | 54,885           | 2,61,923  |
| SIKKIM                     | 97                    | 199                                       | 122              | 418       |
| TAMIL NADU                 | 1,89,437              | 5,80,169                                  | 2,33,881         | 10,03,487 |
| TELANGANA                  | 49,910                | 40,728                                    | -                | 90,638    |
| TRIPURA                    | 1,496                 | 1,530                                     | 1,343            | 4,369     |
| UTTAR PRADESH              | 2,44,414              | 2,89,360                                  | 1,87,742         | 7,21,516  |
| UTTARAKHAND                | 4,827                 | 16,240                                    | 23,765           | 44,832    |
| WEST BENGAL                | 65,751                | 1,03,276                                  | 43,259           | 2,12,286  |
| ANDAMANAND NICOBAR ISLANDS | 1,093                 | 653                                       | 750              | 2,496     |
| CHANDIGARH                 | 993                   | 1,365                                     | 996              | 3,354     |
| DADAR AND NAGAR HAVELI     | 580                   | 943                                       | 1,716            | 3,239     |
| DAMAN AND DIU              | 451                   | 923                                       | 594              | 1,968     |
| DELHI                      | 19,668                | 2,309                                     | 3,754            | 25,731    |
| LAKSHADWEEP                | 21                    | 99                                        | 2                | 122       |
| PUDUCHERRY                 | 1,173                 | 1,122                                     | 1,451            | 3,746     |
| Total                      | 18,15,664             | 21,96,902                                 | 15,63,974        | 55,76,540 |

Annexure-III referred to in reply to part (a) of Lok Sabha Unstarred Question No. 916 for answer on 21.11.2016(As per Fourth All India Census of MSME with base year 2006 and Economic Census, 2005)

| State / UTs                | Sample Survey 4 th All India Census   | EC-2005   | Total     |
|----------------------------|---------------------------------------|-----------|-----------|
| ANDHRA PRADESH             | 14.90                                 | 10.6      | 25.50     |
| ARUNACHAL PRADESH          | 0.25                                  | 0.16      | 0.41      |
| ASSAM                      | 2.14                                  | 4.28      | 6.42      |
| BIHAR                      | 7.48                                  | 6.72      | 14.20     |
| CHHATTISGARH               | 2.78                                  | 2.19      | 4.97      |
| GOA                        | 0.56                                  | 0.27      | 0.83      |
| GUJARAT                    | 13.03                                 | 6.46      | 19.49     |
| HARYANA                    | 4.87                                  | 3.46      | 8.33      |
| HIMACHAL PRADESH           | 1.60                                  | 1.15      | 2.75      |
| JAMMU AND KASHMIR          | 1.18                                  | 1.68      | 2.86      |
| JHARKHAND                  | 4.25                                  | 2.32      | 6.57      |
| KARNATAKA                  | 11.12                                 | 7.7       | 18.82     |
| KERALA                     | 12.94                                 | 7.69      | 20.63     |
| MADHYA PRADESH             | 11.50                                 | 6.76      | 18.26     |
| MAHARASHTRA                | 14.45                                 | 15.31     | 29.76     |
| MANIPUR                    | 0.44                                  | 0.42      | 0.86      |
| MEGHALAYA                  | 0.47                                  | 0.38      | 0.85      |
| MIZORAM                    | 0.10                                  | 0.16      | 0.26      |
| NAGALAND                   | 0.16                                  | 0.21      | 0.37      |
| ODISHA                     | 9.77                                  | 5.76      | 15.53     |
| PUNJAB                     | 9.66                                  | 4.32      | 13.98     |
| RAJASTHAN                  | 9.14                                  | 6.96      | 16.10     |
| SIKKIM                     | 0.06                                  | 0.1       | 0.16      |
| TAMIL NADU                 | 18.21                                 | 12.58     | 30.79     |
| TRIPURA                    | 0.26                                  | 0.7       | 0.96      |
| UTTAR PRADESH              | 22.34                                 | 19.82     | 42.16     |
| UTTARAKHAND                | 2.00                                  | 1.51      | 3.51      |
| WEST BENGAL                | 20.80                                 | 13.41     | 34.21     |
| ANDAMANAND NICOBAR ISLANDS | 0.07                                  | 0.07      | 0.14      |
| CHANDIGARH                 | 0.28                                  | 0.2       | 0.48      |
| DADAR AND NAGAR HAVELI     | 0.04                                  | 0.03      | 0.07      |
| DAMAN AND DIU              | 0.01                                  | 0.04      | 0.05      |
| DELHI                      | 1.75                                  | 3.74      | 5.49      |
| LAKSHADWEEP PUDUCHERRY     | 0.01 0.13                             | 0.01 0.21 | 0.02 0.34 |
| Total                      | 198.74                                | 147.38    | 346.12    |

Annexure-III referred to in reply to part (e) of Lok Sabha Unstarred Question No. 916 for answer on 21.11.2016

## List of Schemes of the Ministry of Micro, Small and Medium Enterprises

1. Ministry  of  Micro, Small and Medium Enterprises:
2.  International Cooperation
3.  Assistance to Training Institutions (ATI)
4.  Marketing Assistant
5.  Prime Minister Employment Generation Programme (PMEGP)
6.  Janshree Bima Yojana for Khadi Artisans
7.  Market Development Assistance (MDA)
8.  R&D Activities of Coir Board under Central Sector Plan of Science & Technology (S&T)
9.  Rejuvenation, Modernisation and Technology Upgradation of Coir Industry (REMOT)
10.  CSS of Export Market Promotion
11.  Skill Upgradation & Quality improvement and Mahila Coir Yojana
2. Office of the Development Commissioner (MSME)
13.  Credit Linked Capital Subsidy Scheme
14.  MSE - Cluster Development Programme
15.  Tool Rooms & Tech. Institutions
16.  Credit Guarantee Scheme
17.  Technology Upgradation and Quality Certification (TEQUP)
18.  Lean Manufacturing Scheme
19.  Incubation Centre
20.  Design Clinics Scheme for MSME Sector
21.  Intellectual Property Facilitation Centre (IPFC)
22.  TREAD
23.  Technology Centres Systems Programme (TCSP) - EAP
24.  QMS/QTT including Zero Defect Zero Effect: ZED
25.  Domestic Market (MATU)
26.  National Award (Entrepreneur & Quality)
27.  ISO 9000/14001 Reimbursement
3. National Small Industries Corporation (NSIC)
29.  Performance and Credit Rating
30.  Bank Credit Facilitation
31.  Raw Material Assistance
32.  Single Point Registration
33.  Infomediary Services
34.  Marketing Intelligence Services Lease
35.  Bill Discounting
36.  NSIC Infrastructure
- i. Exhibition cum Marketing Development Business Park
- ii. Exhibition Hall, Hyderabad
- iii. IT Incubator
- iv. Exhibition Grounds, New Delhi
- v. Software Technology and Business Parks.