Lok Sabha Question No. 1511 (UNSTARRED), answered on 2022-12-15
Subject: Cottage and Small Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Vivek Narayan Shejwalkar

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

## LOK SABHA UNSTARRED QUESTION NO. 1511 TO BE ANSWERED ON 15.12.2022

## COTTAGE AND SMALL INDUSTRIES

## 1511. SHRI VIVEK NARAYAN SHEJWALKAR:

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

- (a) the details of schemes being run by the Government for improvement of cottage and small industries; and
- (b) the details of facilities provided by the Government for establishing cottage industries in the backward and tribal areas?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) & (b): The 'Cottage Industry' has not been defined under the Khadi and Village Industries Commission Act, 1956. However, the broad contours of 'Cottage Industry' are covered under the 'Village  Industry'  vertical  under  the  purview  of  the  Khadi  and  Village  Industries  Commission (KVIC)  and  are  broadly  classified  under  six  groups  for  the  purpose  of  implementation  of  its programmes which are as follows:

1. Agro Based & Food Processing Industry (ABFPI)
2. Mineral Based Industry (MBI)
3. Wellness & Cosmetics Industry
4. Handmade Paper, Leather & Plastic Industry (HPLPI)
5. Rural Engineering and New Technology Industry (RENTI)
6. Service Industry

Ministry of MSME is implementing Prime Minister's Employment Generation Programme (PMEGP)  scheme,  a  credit-linked  subsidy  programme  since  2008-09  with  KVIC  as nodal agency at the national level for generating self-employment opportunities through establishment of micro enterprises, including village industries, throughout the country.

The number of micro units assisted under PMEGP scheme during last three years and current year is as follows:

| Year                       |   Projects (in nos.) |   Margin Money (Rs. in crore) |   Employment (in nos.) |
|----------------------------|----------------------|-------------------------------|------------------------|
| 2019-20                    |                66653 |                       1950.82 |                 533224 |
| 2020-21                    |                74415 |                       2188.8  |                 595320 |
| 2021-22                    |               103219 |                       2977.66 |                 825752 |
| 2022-23 (up to 31.10.2022) |                34476 |                       1111.1  |                 275808 |

KVIC also  imparts  training  to  rural  and  traditional  artisans  in  various  rural  industries.  It provides  tools  and  equipment  and  hand  holding  support  through  implementation  of  various schemes/  programmes  like  Honey  Mission  for  beekeeping  industries,  Kumbhar  Sashaktikaran Programme for Pottery artisans, Leather Craft Programme for leather artisans etc.

Entrepreneurs  Development  Programme  (EDP)  training  is  imparted  to  beneficiaries  who have  established  new  micro  enterprises  under  PMEGP,  through  KVIC,  Khadi  and  Village Industries Boards (KVIBs) Training Centers as well as Accredited Training Centers run by Central Government,  National  Small Industries  Corporation Limited  (NSIC),  National Institute for Entrepreneurship  and  Small  Business  Development  (NIESBUD),  National  Institute  for  Micro, Small  and  Medium  Enterprises  (NIMSME),  Indian  Institute  of  Entrepreneurship (IIE),  and  their partner  institutions  under  the  administrative  control  of  Ministry  of  MSME.  State  Governments, Banks, Rural Development and Self Employment Training Institutes (RUDSETI) reputed NGOs, and other organizations/institutions,  identified  by  the  Government  from  time  to  time  also  impart such training.

In addition to the above, Ministry of MSME launched 'National Scheduled Caste Scheduled Tribe Hub' (NSSH) scheme in 2016, with an aim at capacity enhancement of SC-ST entrepreneurs and promoting 'entrepreneurship culture' amongst  the SC-ST  population. The  scheme  is empowering the SC/ST population to participate in the public procurement process and fulfill the mandated target of 4% procurement from SC/ST enterprises under Public Procurement Policy by the Ministries, Departments and CPSEs.

Since  inception  of  the  NSSH  scheme,  several  interventions/sub-schemes  have  been introduced in consultation with various stakeholders for capacity building, financial assistance, and market linkage of the SC-ST entrepreneurs is placed at Annexure.

To  help  SC-ST  aspiring  and  existing  entrepreneurs  increase  their  capabilities,  skill  and enhance their participation in the public procurement, various skill and entrepreneurship development  training  programs  are  organized  under  National  SC-ST  Hub  across  the  country through  different  institutions  like  Tool  Rooms  of  Ministry  of  MSME,  Rural  Self  Employment Training Institutes (RSETIs), Entrepreneurship Development Institute of India (EDII)-Ahmedabad, Central Institute of Petrochemicals Engineering & Technology (CIPET)-Chennai, Institute of Rural Management-Anand (IRMA),  National Institute for Micro, Small and Medium  Enterprises (NIMSME)-Hyderabad, Indian Institute of Technology (IIT)-Patna, etc. The primary objective of these  training  programs  is  to  bridge  the  existing  skill  gap,  increase  the  technical  as  well  as managerial capabilities of the entrepreneurs and develop entrepreneurship among target beneficiaries.

* * * * *

## Annexure referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No.1511 for answer on 15.12.2022

The details of the interventions/sub-schemes introduced under National Scheduled Caste Scheduled Tribe  Hub  (NSSH)  for  capacity  building,  financial  assistance,  and  market  linkage  of  the  SC-ST entrepreneurs.

1. Special  Credit  Linked  Capital  Subsidy  Scheme:  25%  capital  subsidy  to  SC-ST  owned MSEs for procurement  of  Plant  &  Machinery  /  Equipment  through  institutional  finance (i.e. a subsidy cap of Rs.25 Lacs) without any sector specific restrictions.
2. Special Marketing Assistance  Scheme  (SMAS):  Marketing  support to the  SC-ST enterprises by  way  of  facilitating their participation in domestic  and  international exhibitions/trade fairs in a financial year.
3. Single Point  Registration  Scheme (SPRS): There is 100% subsidy for registration under Single Point Registration Scheme of National Small Industries Corporation (NSIC) and the applicant unit has to pay token amount of Rs.100 plus GST.
4. Reimbursement of Bank Loan Processing Fee: 80% or Rs. 1,00,000/-, whichever is less, on Bank loan processing charges paid by SC-ST MSEs.
5. Reimbursement of Bank charges on Performance Bank Guarantee: 80% or Rs. 1,00,000/-, whichever is less, on Performance Bank guarantee charges paid by SC-ST MSEs.
6. Reimbursement of Testing Fee: 80% or Rs 1,00,000/- on testing charges, whichever is less for  availing  testing  services  from  Government  laboratories  or  National  Accreditation Board for Testing and Calibration Laboratories (NABL)/Bureau of Indian Standards (BIS) accredited  laboratories  &  license  or  certification  fee  from  BIS,  in  a financial year.
7. Reimbursement  of  annual  membership  fee  of  Export  Promotion  Council:  80%  of  the annual Membership fee of various Export Promotion Councils with ceiling of Rs.20,000/-.
8. Reimbursement  of  annual  membership  /  subscription  fee  of  Government  promoted  ecommerce  portals:  80%  or  maximum  of  Rs.  25,000/-  whichever  is  less,  on  annual membership fee of Government promoted e-commerce portals such as GeM, e-Khadi, The Tribal  Cooperative  Marketing  Development  Federation  of  India  Ltd.  (TRIFED),  Tribes India, MSME Mart, etc. to SC-ST MSEs.
9. Top 50 National Institutional Ranking Framework (NIRF) Ranked Management Institution's Short-Term Training Program Fee Reimbursement Scheme: Reimbursement of 90% up to Rs 1,00,000/- for attending up to 2 short term training courses from top 50 NIRF ranked Management Institutes.