Lok Sabha Question No. 1970 (UNSTARRED), answered on 2022-07-28
Subject: Setting up of MSME Units in Backward Areas
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Bheemrao Baswanthrao Patil

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1970 TO BE ANSWERED ON 28.07.2022

## SETTING UP OF MSME UNITS IN BACKWARD AREAS

## 1970.       SHRI B.B.PATIL:

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  especially  in Zahirabad of Telangana 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 STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) to (c): The Ministry of Micro, Small and Medium Enterprises (MSME) does not set up MSMEs in any State. The MSME sector consists of private players and investments in this  sector  are  made  by  the  entrepreneurs  themselves.  Promotion  and  development  of enterprises  is  a  State  subject.  The  Central  Government  supplements  the  efforts  of  the State/UT  Governments  through  various  schemes,  programmes  and  policy  initiatives  for promotion and development of MSMEs in the country, including Zahirabad of Telangana State.

(d) & (e): The Ministry  of  MSME  implements  various  schemes and programmes for the  promotion  and  development  of  MSME  Sector  in  the  country.  These  schemes  and programmes  inter  alia  include  Prime  Minister's  Employment  Generation  Programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP), etc. Benefits under these schemes are available to all eligible MSMEs throughout the country. Besides, the Government has taken a number of  recent  initiatives  under  the  Aatma  Nirbhar  Bharat  Abhiyan  to  mitigate  the  negative impact of Covid-19 on small businesses in the country. Some of them are:

- i. Credit Guarantee Scheme (CGS) Subordinate Debt for stressed MSMEs.
- ii. Guaranteed  Emergency  Credit  Line  (GECL)  /  Emergency  Credit  Line  Guarantee Scheme (ECLGS) for Businesses, including MSMEs.

- iii. Equity infusion through Self-Reliant India Fund.
- iv. New revised criteria of classification of MSMEs.
- v. New  registration  of  MSMEs  through  'Udyam  Registration'  for  Ease  of  Doing Business.
- vi. No global tenders for procurement up to Rs. 200 crores.

In addition, the Government had announced the following initiatives for MSMEs in the Budget 2022-23:-

- (i)  Udyam,  e-Shram,  NCS  and  ASEEM  portals  will  be  interlinked  for  credit facilitation, skilling and recruitment.
- (ii)  GECL / ECLGS to be extended up to March 2023 and its guarantee cover to be expanded  by  Rs.  50,000  crore,  with  the  additional  amount  being  earmarked exclusively for the hospitality and related enterprises.
- (iii)Credit  Guarantee  Trust for Micro and Small Enterprises scheme to be revamped with required infusion of funds to facilitate additional credit of Rs. 2 lakh crore for MSEs and expand employment opportunities.
- (iv)  Roll  out  of  Raising  and  Accelerating  MSME  Performance  (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.

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