Lok Sabha Question No. 27 (STARRED), answered on 2018-02-05
Subject: Generation of Jobs in MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: B.V. NAYAK, KIRIT SOMAIYA

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

## LOK SABHA STARRED QUESTION NO. *27 TO BE ANSWERED ON 05.02.2018

## GENERATION OF JOBS IN MSME SECTOR

## *27.     SHRI B.V. NAIK: DR. KIRIT SOMAIYA:

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

- (a) whether  it  is  fact  that  the  Micro,  Small  and  Medium  Enterprises  (MSME)  sector  is  going through a tepid phase with regard to job generation in the country;
- (b) if so, the details thereof and the reasons therefor along with the number of jobs generated in this sector during each of the last three years and the current year, State/UT-wise; and
- (c) the steps taken/proposed to be taken by the Government to encourage and generate more jobs in the MSME sector?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a) to (c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (c)  OF  THE  LOK SABHA STARRED QUESTION No.*27 FOR ANSWER ON 05.02.2018

- (a): No, Madam.
- (b): Does not arise.
- (c): Job generation in MSME sector cuts across different Ministries of the Government of India.  Various  Ministries  are  implementing  Schemes  leading  to  job  creation  in  their respective verticals.  Ministry  of  MSME  is  implementing  the  following  Schemes  for enterprise creation and job generation:
- (i) Prime  Minister's  Employment  Generation  Programme  (PMEGP):  This  is  a credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth. The Scheme was launched during 2008-09. A total of 4.49 lakh micro enterprises have been assisted with a margin money subsidy of Rs 9416.02 crore providing employment to an estimated 37.57 lakh persons since PMEGP's inception till 31.12.2017.
- (ii) Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI):  It  is  a cluster-based  scheme  for  development  of  khadi,  village  industries  and  coir  clusters  by providing them with improved equipments, common facilities centers, business development services, training, capacity building and design and marketing support, etc. SFURTI Scheme has  been  revamped.    A  total  assistance  of  Rs.  139.58  crore  has  been  released  benefitting 59,900 artisans.
- (iii) A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE): was launched on 18.3.2015 to set up a network of technology centres and to set up  incubation  centres  to  accelerate  entrepreneurship  and  also  to  promote  start-ups  for innovation  and  entrepreneurship  in  agro-industry.  Under  ASPIRE,  62  Livelihood  Business Incubation (LBI) centres have been approved.
- (iv) Khadi  and  Village  Industry  Commission  (KVIC):  Ministry  of  MSME  through KVIC  is  implementing  various  schemes  to  encourage  Khadi  and  village  industry  sector. During the FY 2017-18, employment generated in the Khadi and Village Industry sector is estimated at 138.74 lakhs.
- (v) Coir Board: 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. More than 7 lakh employment has been generated in the Coir Sector.

(vi) Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  (CGTMSE):  The scheme facilitates credit to the MSE units by covering collateral free credit facility (term loan and /or working capital) extended by eligible lending institutions to new and existing micro and small enterprises. The corpus of CGTMSE has been enhanced from Rs. 2500 crore to 7500 crore. The Scheme has extended guarantee cover to over 28 lakh enterprises leading to huge employment generation. (vii) Micro  &  Small  Enterprises  Cluster  Development  Programme  (MSE-CDP)  Ministry  launched  MSE-CDP  for  holistic  development  of  selected  MSEs  clusters.  Scheme provides for creation of tangible 'assets' as Common Facility Centers (CFCs) like Common Production/Processing Centre (for balancing/correcting/improving production line that cannot be undertaken by individual units), Design Centres, Testing Facilities, Training Centre, R&D Centres,  Effluent  Treatment  Plant,  Marketing  Display/Selling  Centre,  Common  Logistics Centre, Common Raw Material Bank/Sales Depot, etc. (viii) MSME-Tool  Rooms/Technology  Development  Centre  (MSME-TRs/TDCs):  18 MSME-Tool Rooms/TDCs have been setup across the country to assist enterprises in their technological upgradation by providing precision toolings, trained manpower & consultancy in the area of tool & die making etc. During FY 2017-18 upto 31.12.2017, these centres have trained 1,07,070 persons with commensurate employment generation. Credit  linked  Capital  subsidy  Scheme  (CLCSS):  CLCSS  facilitates  technology upgradation  of  small  scale  industries,  including  agro  &  rural  industrial  units  by  providing inception and  upto  30.11.2017,  a  total  of  48,618  units  have  been  assisted  utilizing  subsidy  of  Rs.

(ix) 15% upfront capital subsidy (limited to maximum of Rs.15.00 lakhs). Since 2904.53 crore.

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