Lok Sabha Question No. 4146 (UNSTARRED), answered on 2016-12-12
Subject: Self Help Group for MSME
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: JUGAL KISHORE SHARMA

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

## LOK SABHA UNSTARRED QUESTION NO. 4146 TO BE ANSWERED ON 12.12.2016

## SELF HELP GROUP FOR MSME

4146. SHRI JUGAL KISHORE:

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

- (a) whether the Government is satisfied with the development in the field of micro, small and medium enterprises (MSMEs) in Jammu & Kashmir;
- (b) if so, the details thereof along with the achievement made therein during each of the last three years;
- (c) whether the task force set up for the development of MSMEs has recommended to form  self  help  groups  by  micro-financing  institutes  and  to  provide  incentives  to  grant financial assistance to micro enterprises at reasonable rates in the State;
- (d) if so, the details thereof along with the recommendations made by the said task force; and
- (e) the  details  of  the  memoranda  of  understanding  signed  with  various  countries including Mozambique for cooperation in the MSME sector in the country including that in Jammu & Kashmir?

## ANSWER

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

(a)&(b): In  Jammu  &  Kashmir,  Ministry  of  MSME  through  Khadi  and  Village Industries  Commission  (KVIC)  is  implementing  Khadi  and  Village  Industries  (KVI) Programme.  During  the  last  three  years,  the  performances  in  Jammu  and  Kashmir  is  as follows:

## Physical performance of Khadi & V.I. in Jammu & Kashmir:

(Rs. in lakhs; employment in lakh persons)

| Year    | Khadi      | Khadi   | Khadi   | Village Industries   | Village Industries   | Village Industries   |
|---------|------------|---------|---------|----------------------|----------------------|----------------------|
| Year    | Production | Sales   | Emp.    | Production           | Sales                | Emp.                 |
| 1471.43 | 1330.45    |         | 0.21    | 61014.74             | 70240.65             | 2.74                 |
| 2646.50 | 2293.47    |         | 0.24    | 64370.55             | 74660.54             | 2.82                 |
| 4110.05 |            | 2958.80 | 0.24    | 80611.24             | 94324.36             | 2.90                 |

## Financial performance of Khadi & V.I. in Jammu & Kashmir:

(Rs. in lakh)

| Name of the Scheme         |   2013-14 |   2014-15 |   2015-16 |
|----------------------------|-----------|-----------|-----------|
| Khadi Grant                |   1005.21 |   1247.08 |   1040.36 |
| V.I. Grant including PMEGP |   3055.14 |   3459.71 |   3845.21 |
| Total                      |   4060.35 |   4706.79 |   4885.57 |

(c)&(d): Prime Minister's Task Force on Micro, Small and Medium Enterprises, in its Report,  recommends  that  the  Government  should  encourage  Micro  Finance  Institutions (MFIs)  to  form  self-help  groups  and  finance  micro  enterprises  in  unbanked/  identified excluded  rural/semi-urban  areas  at  reasonable  rates.  Banks  may  also  be  encouraged  to formulate  schemes for refinancing loans taken by the MSEs  from  non-institutional sources/moneylenders. Financial outreach is likely to prove an effective means to formalize the unorganized sector. Suitable incentives, including tax concessions, should be extended to MFIs  to  encourage  them  to  work  as  business  correspondents  and  business  facilitators  for banks to service micro enterprises.

Micro  Units  Development  and  Refinance  Agency  Bank (MUDRA  Bank),  is  a  new institution setup by the Government of India for development of micro units and refinance of MFIs to encourage entrepreneurship in India and provide the funding to  the non-corporate small business sector.  MUDRA Bank has two type of products like refinance for the micro units  having  loan  requirement  to  support  Micro  Finance  Institutions  (MFI)  for  lending. MUDRA will finance micro business under the scheme of Pradhan Mantri MUDRA Yojana. Under this,  loans  are  extended  under  the  following  three  categories  i)  Sishu-  Loans  up  to Rs.50,000/-,  ii)  Kishore-  Loans  from  Rs.  50,001/-  to  up  to  Rs.5,00,000/-  and  iii)  TarunLoans from Rs. 5,00,001/- to up to Rs.10,00,000/-.

The  Ministry  through  KVIC  implements  Prime  Minister's  Employment  Generation Programme  (PMEGP)  scheme  which  is  a  credit  linked  subsidy  programme  and  is  one  of flagship programme of Ministry of MSME.  Self Help Group are also eligible to set up their units. The rate of interest are decided by the Banks. The subsidy under the scheme is from 15% to 35%, depending upon the location of the unit and category of the beneficiary.

The performance of PMEGP Scheme during the last three years is as follows:

|   Sl. No . | Year     |   Margin Money allocation (Rs. in crore) |   Margin Money utilized# (Rs. in crore) |   Units assisted (Number) |   Estimated employment generated (Number) |
|------------|----------|------------------------------------------|-----------------------------------------|---------------------------|-------------------------------------------|
|          1 | 2013-14  |                                  1145    |                                 1076.44 |                     50493 |                                    378907 |
|          2 | 2014-15  |                                  1093.06 |                                 1122.54 |                     48168 |                                    357502 |
|          3 | 2015-16  |                                  1286.2  |                                 1020.06 |                     44340 |                                    323362 |
|          4 | 2016-17* |                                  1100    |                                  627.09 |                     26885 |                                    199524 |

(e): List  of  the  Memoranda  of  Understanding  (MoU)  signed  with  various  countries including  Mozambique  for  cooperation  in  the  MSME  sector  in  the  country  is  placed  at Annexure-I.  Copy  of  the  MoU  between  India  and  Mozambique  for  cooperation  in  the MSME sector in the country is placed at Annexure-II.

## Annexure-I

## Annexure-I referred to in reply to part (e) of the Lok Sabha Unstarred Question No. 4146 for answer on 12.12.2016

## Country-wise list of the Memorandum of Understandings (MoUs) signed for cooperation in the MSME sector in the country

| Country                                    | Partner Ministry/Organisation                                                                                                                                                                                                        | Date signed   |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| Kingdom of Sweden                          | Memorandum of understanding between M/o MSME of the Republic of India & M/o Enterprise and Innovation of the kingdom of Sweden on cooperation in the field of Micro, Small &Medium Enterprises                                       | 01/06/2015    |
| Republic of Mauritius                      | Memorandum of understanding on cooperation between the M/o MSME of the Republic of India and the Ministry of Business, Enterprise and Cooperatives of the Republic of Mauritius in the field of Micro, Small and Medium Enterprises. | 02/12/2013    |
| Republic of Vietnam                        | MoU between the M/o MSME, Government of India and Ministry of Planning and Investment of the Government of Socialist Republic of Vietnam on Cooperation in the field of Micro, Small and Medium Enterprises.                         | 15/01/2013    |
| Republic of Indonesia                      | MOUbetween the M/o MSME of the Republic of India and Ministry for Cooperatives and Small and Medium Enterprises of the Republic of Indonesia.                                                                                        | 25/01/2011    |
| Republic of Mozambique                     | MoU on Cooperation in the field of Micro, Small and Medium Enterprises, Republic of India and the Ministry of Industry and Commerce, Republic of Mozambique.                                                                         | 30/09/2010    |
| Republic of Korea                          | MoU between M/o MSME of the Republic of India and Small and Medium Business Administration of the Republic of Korea.                                                                                                                 | 18/06/2010    |
| Republic of Botswana                       | MoU between the Government of the Republic of India and Government of the Republic of Botswana on Cooperation in the field of Small, Medium and Micro Enterprises.                                                                   | 17/06/2010    |
| Arab Republic of Egypt                     | Joint Action Plan on Cooperation in the field of Micro, Small and Medium Enterprises between the Ministry of Trade and Industry of Arab Republic of Egypt and the M/o MSME of the Republic of India.                                 | 29/10/2009    |
| Cote d'Ivoire                              | The Ministry of Small Scale Industries of India and Ministry of Industry and Promotion of Private Sector of Cote d'Ivoire.                                                                                                           | 14/02/2007    |
| Government of Tunisia                      | Cooperation agreement in the field of Small and Medium-Sized Enterprises between the Government of the Republic of Tunisia and the Government of the Republic of India.                                                              | 08/02/2007    |
| Government of Romania                      | The Ministry of Small Scale Industries of India and The National Agency for Small and Medium-Sized Enterprises and Co-Operatives of Romania.                                                                                         | 23/10/2006    |
| Republic of Rwanda                         | The Ministry of Commerce, Industry, Investment Promotion, Tourism and Cooperatives, Republic of Rwanda.                                                                                                                              | 30/08/2006    |
| United Mexican States                      | The Secretariat of Economy of the United Mexican States.                                                                                                                                                                             | 27/03/2006    |
| The Government of Republic of Uzbekistan   | The Government of Republic of Uzbekistan.                                                                                                                                                                                            | 05/04/2005    |
| Government of the Republic of Lesotho      | The Government of the Republic of Lesotho.                                                                                                                                                                                           | 10/09/2004    |
| Democratic Socialist Republic of Sri Lanka | Democratic Socialist Republic of Sri Lanka.                                                                                                                                                                                          | 27/01/2004    |
| Democratic Republic of Algeria             | Ministry of Small and Medium Size Enterprises and Handicraft in the People's Democratic Republic of Algeria.                                                                                                                         | 10/10/2003    |
| Republic of Sudan                          | Government of the Republic of Sudan.                                                                                                                                                                                                 | 09/04/2000    |

http://msme.gov.in/mob/Ic-Inner.aspx

## Annexure-II referred to in reply to part (e) of the Lok Sabha Unstarred Question No. 4146 for answer on 12.12.2016

Copy of the MoU between India and Mozambique for cooperation in the MSME sector

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