Lok Sabha Question No. 767 (UNSTARRED), answered on 2020-02-06
Subject: Setting up of MSME Units
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Kaushalendra Kumar, Ashok Mahadeorao Nete, Ravindra Kushawaha, Ravi Kishan Shukla, Nishikant  Dubey

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

## LOK SABHA UNSTARRED QUESTION NO. 767 TO BE ANSWERED ON 06.02.2020

## SETTING UP OF MSME UNITS

767.    SHRI KAUSHALENDRA KUMAR:

SHRI ASHOK MAHADEORAO NETE:

SHRI RAVINDRA KUSHWAHA:

SHRI RAVI KISHAN:

DR. NISHIKANT DUBEY:

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

- (a) whether the Government has any proposal to set up Micro, Small and Medium Enterprises  (MSMEs)  units  in  most  backward  areas  in  the  country  and  specially  in Bihar State to provide permanent employment to the local youths;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government has decided to set up more MSME Units for overall development of the country and if so, the details thereof, State/UT-wise;
- (d) the details of the incentives being provided to enthusiastic entrepreneurs to set up MSMEs in the country; and
- (e) whether the MSME units have been provided with adequate capital investment and funds for their operations as per their demand and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a) to (c): Ministry of Micro, Small and Medium Enterprises (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/units  in  the non-farm sector by helping traditional artisans and unemployed youth.

State/UT-wise  target  and  achievement  under  the  PMEGP  Scheme  including Bihar during the year 2019-20 (as on 21.01.2020) are given at Annexure-I.

(d) & (e): Under the scheme, loan is being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy by Ministry of MSME through KVIC.

Margin Money subsidy to various categories of beneficiaries is detailed below:

| Categories of beneficiaries under PMEGP.                                                                           | Beneficiaries contributions (of the project cost)   | Rate of subsidy. (of the project cost)   | Rate of subsidy. (of the project cost)   |
|--------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|------------------------------------------|------------------------------------------|
| Area (location of the project/ unit)                                                                               |                                                     | Urban                                    | Rural                                    |
| General category.                                                                                                  | 10%                                                 | 15%                                      | 25%                                      |
| Special (including SC/ST/ OBC/ Minorities/Women, Ex- servicemen, Physically Handicapped, NER, Hill & Border Areas. | 05%                                                 | 25%                                      | 35%                                      |

Project upto Rs. 25 lakhs in the manufacturing sector and Rs. 10 lakhs in the service  sector  are  supported  under  PMEGP.  Further,  Ministry  of  MSME  has  also introduced  a  component  of  second  financial  assistance  for  expansion/upgrading existing  PMEGP/MUDRA units with assistance up to Rs.1 crore  for manufacturing unit and up to Rs. 25 lakhs for service/ trading unit with 15% subsidy (20% for NER and hilly state) from the year 2018-19.

In addition, incentives are provided to entrepreneurs under the following schemes:

- (i) Under Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), collateral free credit facility (term loan and/or working capital) is extended by lending  institutions  to  new  and  existing  micro  and  small  enterprises.  The guarantee cover provided is from 75% to 85% for credit up to Rs. 2 crore.
- (ii) Under Credit linked Capital Subsidy Scheme (CLCSS), 15% up front capital subsidy (limited to maximum Rs. 15 lakhs) is provided on finance availed by entrepreneurs for technology upgradation of micro and small enterprises.
- (iii)   Under  Interest  Subvention  Scheme,  2%  interest  subvention  on  fresh  or incremental loans maximum up to Rs. 1 crore are given to MSMEs who have valid GSTN number and Udyog Aadhar number.

*******

## Annexure I referred to in reply to part (a) to (c) of the Lok Sabha Unstarred Qn. No. 767 for answer on 06.02.2020

Target and Achievement under New PMEGP and 2 nd dose for existing PMEGP units During 2019-20 (as on 21.01.2020)

(Projects & Employment in Nos.)

| Sr.             |                   | Target 2019-20   | Target 2019-20       | Achievement 2019-20   | Achievement 2019-20   |
|-----------------|-------------------|------------------|----------------------|-----------------------|-----------------------|
| No.             | State/UT          | No. of projects  | Estimated Employment | No. of projects       | Estimated Employment  |
| I. NORTH ZONE   | I. NORTH ZONE     | I. NORTH ZONE    | I. NORTH ZONE        | I. NORTH ZONE         | I. NORTH ZONE         |
| 1               | Jammu &Kashmir    | 2110             | 16877                | 2714                  | 21712                 |
| 2               | Him. Pradesh      | 1181             | 9449                 | 818                   | 6544                  |
| 3               | Punjab            | 1983             | 15860                | 992                   | 7936                  |
| 4               | U.T. Chandigarh   | 32               | 255                  | 10                    | 80                    |
| 5               | Haryana           | 2008             | 16061                | 1190                  | 9520                  |
| 6               | Delhi             | 96               | 764                  | 57                    | 456                   |
| 7               | Rajasthan         | 3398             | 27184                | 1619                  | 12952                 |
|                 | Total -I          | 10808            | 86450                | 7400                  | 59200                 |
| II CENTRAL ZONE | II CENTRAL ZONE   | II CENTRAL ZONE  | II CENTRAL ZONE      | II CENTRAL ZONE       | II CENTRAL ZONE       |
| 8               | Uttarakhand       | 1318             | 10542                | 986                   | 7888                  |
| 9               | Uttar Pradesh     | 8591             | 70728                | 2491                  | 19928                 |
| 10              | Chhattisgarh      | 2778             | 22228                | 1385                  | 11080                 |
| 11              | Madhya Pradesh    | 5215             | 41716                | 958                   | 7664                  |
|                 | Total -II         | 17902            | 145214               | 5820                  | 46560                 |
| III. N.E.ZONE   | III. N.E.ZONE     | III. N.E.ZONE    | III. N.E.ZONE        | III. N.E.ZONE         | III. N.E.ZONE         |
| 12              | Sikkim            | 76               | 612                  | 39                    | 312                   |
| 13              | Arunachal Pradesh | 191              | 1529                 | 112                   | 896                   |
| 14              | Nagaland          | 1330             | 10638                | 300                   | 2400                  |
| 15              | Manipur           | 1098             | 8781                 | 360                   | 2880                  |
| 16              | Mizoram           | 815              | 6517                 | 277                   | 2216                  |
| 17              | Tripura           | 981              | 7851                 | 266                   | 2128                  |
| 18              | Meghalaya         | 1153             | 9224                 | 153                   | 1224                  |
| 19              | Assam             | 4382             | 35059                | 978                   | 7824                  |
|                 | Total -III        | 10026            | 80211                | 2485                  | 19880                 |
| IV. EAST ZONE   | IV. EAST ZONE     | IV. EAST ZONE    | IV. EAST ZONE        | IV. EAST ZONE         | IV. EAST ZONE         |
| 20              | Bihar             | 4943             | 39540                | 990                   | 7920                  |
| 21              | West Bengal       | 2902             | 23220                | 1315                  | 10520                 |
| 22              | Jharkhand         | 2762             | 22093                | 663                   | 5304                  |
| 23              | Odisha            | 3436             | 27485                | 1251                  | 10008                 |
| 24              | A &NIslands       | 96               | 768                  | 43                    | 344                   |
| Total -IV       | Total -IV         | 14139            | 113106               | 4262                  | 34096                 |

| V. WEST ZONE   | V. WEST ZONE   |       |        |       |        |
|----------------|----------------|-------|--------|-------|--------|
| 25             | Gujarat*       | 3367  | 26937  | 2938  | 23504  |
| 26             | Maharashtra**  | 3970  | 31756  | 2712  | 21696  |
| 27             | Goa            | 96    | 764    | 49    | 392    |
|                | TOTAL - V      | 7433  | 59457  | 5699  | 45592  |
| VI. SOUTH ZONE | VI. SOUTH ZONE |       |        |       |        |
| 28             | Andhra Pradesh | 1741  | 13927  | 1361  | 10888  |
| 29             | Telangana      | 3211  | 25686  | 1195  | 9560   |
| 30             | Karnataka      | 2967  | 23730  | 2155  | 17240  |
| 31             | Lakshadweep    | 16    | 127    | 0     | 0      |
| 32             | Kerala         | 1634  | 13231  | 1384  | 11072  |
| 33             | Tamil Nadu     | 3302  | 26408  | 3071  | 24568  |
| 34             | Puducherry     | 48    | 382    | 41    | 328    |
|                | TOTAL -VI      | 12919 | 103491 | 9207  | 73656  |
|                | GRAND TOTAL    | 74276 | 594208 | 34873 | 278984 |

* including Daman& Diu ** including Dadra & N. Havali