Lok Sabha Question No. 34 (UNSTARRED), answered on 2017-07-17
Subject: Setting up of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: MEKAPATI RAJAMOHAN REDDY

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 34 TO BE ANSWERED ON 17.07.2017

## SETTING UP OF MSMES

## 34. SHRI M. RAJA MOHAN REDDY:

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

(a) whether the Government proposes to set up new Micro, Small and Medium Enterprises (MSMEs) sector in various States of the country including Andhra Pradesh during the current year and in near future; and

- (b) if so, the details thereof, State/UT-wise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a) & (b): Government of India does not set up MSME units in the States.  However, Ministry of MSME is implementing Prime Minister's Employment Generation Programme (PMEGP)  which  is  a  major  credit-linked  subsidy  programme  aimed  at  generating  selfemployment opportunities through establishment of micro-enterprises in the non-farm sector. The maximum cost of projects is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. General category beneficiaries can avail of margin money subsidy of 25 % of  the  project  cost  in  rural  areas  and  15%  in  urban  areas.  For  beneficiaries  belonging  to special categories such as SC/ST/OBC/  minorities/women, ex-serviceman, physically handicapped, NER, Hill and Border areas etc. the margin money subsidy is 35% in rural areas and  25%  in  urban  areas.  Khadi  and  Village  Industries  Commission  (KVIC)  is  the  nodal implementing agency at the national level. KVIC, Khadi & Village Industry Boards (KVIB) and District  Industry  Centres  (DIC)  are  the  implementing  agencies  in  the  States.  Financial assistance/loans is provided through Banks, Government pays margin money subsidy to the beneficiaries through KVIC at the above mentioned rates for different categories.

Government of India has fixed target under the PMEGP Scheme for various States of the  country  including  Andhra  Pradesh    for  the  current  year  to  set  up  new  projects  by entrepreneurs is placed at Annexure-I.

Ministry of MSME through Coir Board is also implementing various Schemes/programmes  through  its  field  level  offices  to  assist  entrepreneurs  to  set  up  new Micro, Small  and Medium Enterprises (MSMEs) in all coconut producing states including Andhra Pradesh. The details of schemes being implemented by the Board are as follows:

1. Mahila Coir Yojana (MCY) is an exclusive scheme for rural women artisans, training is given  in  spinning  of  coir  yarn/various  coir  processing  activities  to  rural  women  in  regions producing  coir  fibre  in  the  country,  through  all  training  centres  of  the  Coir  Board.  The scheme  envisages  distribution  of  motorized  ratts/motorized  traditional  ratts  and  other  coir processing equipments at 75% subsidy subject to a maximum of Rs. 7500/- to set up their coir  unit  which  can  be  operated  by  women  after  completion  of  the  2  months  training programme. During the training period, the women artisans are given stipend amounting Rs. 1000 per month.
2.  Scheme  for  the  Development  of  Production  Infrastructure  (DPI)  -  The  Scheme envisages provision of financial assistance for the development of infrastructure and setting up new coir units and modernization of existing units for the sustainable growth of the coir sector.  The  quantum  of  assistance  eligible  to  the  unit  is  at  the  rate  of  25%  of  the  cost  of equipment and infrastructure facilities, subject to a maximum of Rs.6,00,000/- for setting up of  new  unit  and  Rs.  2,00,000/-  for  modernization  of  existing  unit.    In  the  case  of  units producing multiple items the maximum amount of subsidy admissible is Rs. 9,00,000/-.
3. Coir Udyami Yojana (CUY) is a credit linked subsidy scheme providing assistance for setting up of any type of coir units with a maximum admissible cost of project upto Rs.10 lakhs plus working capital, which shall not exceed 25% of the project cost. The pattern of assistance under the scheme is 40% of the project cost as Government of India subsidy, 55% as loan from Banks and 5% as beneficiary contribution.

Number of beneficiaries/units benefited by financial assistance under MCY, DPI and CUY schemes for commencement of enterprises during the last three years is placed at AnnexureII.

* * *

Annexure-I

## Annexure-I referred to in reply to part (a)to(b) of the Lok  Sabha Unstarred Question No.34 for answer on 17.07.2017

Target of Projects, Margin Money and employment under PMEGP for the year 2017-18

(Rs. in lakh)

| Sl. No   | State/UT          |   Projects |   Margin Money |   Employment |
|----------|-------------------|------------|----------------|--------------|
| 1        | Jammu &Kashmir    |       1650 |        3272.84 |        13200 |
| 2        | Himachal Pradesh  |        900 |        1785.19 |         7200 |
| 3        | Punjab            |       1650 |        3272.84 |        13200 |
| 4        | Chandigarh        |        100 |         100    |          800 |
| 5        | Haryana           |       1650 |        3272.84 |        13200 |
| 6        | Delhi             |        151 |         300    |         1208 |
| 7        | Rajasthan         |       2475 |        4909.26 |        18000 |
| 8        | Uttarakhand       |        975 |        1933.95 |         7800 |
| 9        | Uttar Pradesh     |       5625 |       11157.4  |        45000 |
| 10       | Chhattisgarh      |       2025 |        4016.67 |        16200 |
| 11       | Madhya Pradesh    |       3825 |        7587.04 |        30600 |
| 12       | Sikkim            |        100 |         200    |          800 |
| 13       | Arunachal Pradesh |        250 |         500    |         2000 |
| 14       | Nagaland          |        865 |        1728.96 |         6920 |
| 15       | Manipur           |        717 |        1434.32 |         5736 |
| 16       | Mizoram           |        623 |        1245.66 |         4984 |
| 17       | Tripura           |        642 |        1283.75 |         5136 |
| 18       | Meghalaya         |        860 |        1720.32 |         6880 |
| 19       | Assam             |       2676 |        5351.99 |        21408 |
| 20       | Bihar             |       2850 |        5653.09 |        22800 |
| 21       | West Bengal       |       1500 |        2975.31 |        12000 |
| 22       | Jharkhand         |       1800 |        3570.37 |        14400 |
| 23       | Odisha            |       2250 |        4462.97 |        18000 |
| 24       | A &NIslands       |        100 |         100    |          800 |
| 25       | Gujarat           |       2475 |        4909.26 |        19800 |
| 26       | Maharashtra       |       2700 |        5355.56 |        21600 |
| 27       | Goa               |        150 |         297.53 |         1200 |
| 28       | Andhra Pradesh    |        975 |        1933.95 |         7800 |
| 29       | Telangana         |       2325 |        4611.73 |        18600 |
| 30       | Karnataka         |       2250 |        4462.97 |        18000 |
| 31       | Lakshadweep       |        100 |         100    |          800 |
| 32       | Kerala            |       1050 |        2082.72 |         8400 |
| 33       | Tamil Nadu        |       2400 |        4760.5  |        19200 |
| 34       | Puducherry        |        100 |         100    |          800 |
| Total    | Total             |      50784 |      100449    |       404472 |

## Annexure-II referred to in reply to part (a)to(b) of the Lok  Sabha Unstarred Question No.34 for answer on 17.07.2017

Number of  beneficiaries/units  benefited  by  financial  assistance  under  Mahila  Coir  Yojana (MCY), Development of  Production  Infrastructure  (DPI)  and  Coir  Udyami  Yojana  (CUY) Schemes for commencement enterprises in Coir Industry during the last three years:

(Figure in numbers)

| State                    | 2014-15   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2015-16   | 2016-17   | 2016-17   | 2016-17   |
|--------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
| State                    | MCY       | DPI       | CUY       | MCY       | DPI       | CUY       | MCY       | DPI       | CUY       |
| Kerala                   | 188       | 02        | 86        | 531       | 2         | 291       | 137       | -         | 243       |
| Tamil Nadu               | 38        | 33        | 95        | -         | 22        | 159       | -         | 17        | 136       |
| West Bengal              | 128       | -         | -         | 65        | -         | 8         | -         | -         | 12        |
| Odisha                   | -         | -         | 21        | -         | 1         | 65        | -         | -         | 42        |
| Andhra Pradesh           | -         | 02        | 28        | -         | -         | 74        | -         | -         | 77        |
| Karnataka                | -         | 06        | 38        | -         | -         | 1         | -         | -         | 42        |
| Maharashtra              | -         | -         | -         | -         | -         | -         | -         | -         | 5         |
| Andaman& Nicobar Islands | -         | -         | -         | -         | -         | -         | -         | -         | 2         |
| Gujarat                  | -         | 01        | -         | -         | -         | -         | -         | -         | 4         |
| Assam                    | -         | -         | -         | -         | -         | 13        | -         | -         | 23        |
| TOTAL                    | 354       | 44        | 268       | 596       | 25        | 611       | 137       | 17        | 586       |