Lok Sabha Question No. 1376 (UNSTARRED), answered on 2023-02-09
Subject: Promotion of Entrepreneurs in MSME Sector in Ladakh
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Jamyang Tsering Namgyal

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1376 TO BE ANSWERED ON 09.02.2023

## PROMOTION OF ENTREPRENEURS IN MSME SECTOR IN LADAKH

1376. SHRI JAMYANG TSERING NAMGYAL:

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

- (a) the  progress  of  the  Micro,  Small  and  Medium  Enterprises  (MSMEs)  in  Ladakh  in  terms  of financial allocation the number of beneficiaries under MSMEs who have got the training, types of skill upgrades to beneficiaries and ratio of women participation in entrepreneurship sector-wise;
- (b) the initiatives taken by the Government to promote entrepreneurs in MSME sector in Himalayan region particularly in Ladakh and the details of number of MSMEs functional in Ladakh, district-wise; and
- (c) whether the investment has been increased or decreased in the MSME sector during the last five years in Ladakh and if so, the details thereof?

## ANSWER

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

- (a): The Government has taken a number of recent financial incentives for progress of Micro, Small and Medium Enterprises (MSMEs) in the country including Ladakh. Some of them are:
- (i) Credit Guarantee Scheme for Micro and Small Enterprises: The Ministry of MSME, Government of India is implementing Credit Guarantee Scheme for MSEs through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), for providing collateral free loan up to a limit of Rs. 200 lakh to MSEs with a guarantee coverage ranging from 75% to 85% for various categories of loans. Budget 2023-24, has announced the infusion of Rs. 9,000 crore in the corpus of CGTMSE, to enable additional credit of Rs. 2.00 lakh crore with a reduced cost of credit.
- (ii) The  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  was  announced  as  part  of  the Aatmanirbhar Bharat Package in May, 2020 to support eligible MSMEs and other business enterprises to  meet  their  operational  liabilities  and  resume  businesses  in  view  of  the  distress  caused  by  the COVID-19 crisis. This scheme covers all the sectors of the economy. Under this, 100% guarantee is provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them to eligible borrowers. The scheme is valid till 31.03.2023.
- (iii) The Ministry is implementing Entrepreneurship and Skill Development Programme (ESDP) with the objective to motivate young persons (Men & Women) representing different sections of the society including SC/ST/ Women, physically handicapped, Ex-servicemen and BPL persons to consider self employment  or  entrepreneurship  as  a  career  options.  It  is  a  Central  Sector  scheme  which  is implemented  across  country  including  Ladakh,  without  any  state  specific  allocation.  105  no.  of beneficiaries benefited from ESDP in the financial year 2019-20, of which 85% were women.

- (b): The  Government  has  taken  a  number  of  recent  incentives  to  promote  entrepreneurs  in  MSME sector in the country including Ladakh. Some of these include:
- i. Rs.  5.00  lakh  crore  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for  businesses, including MSMEs;
- ii. Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund;
- iii.   New revised criteria for classification of MSMEs;
- iv.   No global tenders for procurement up to Rs. 200 crores;
- v. 'Udyam Registration' for MSMEs, for Ease of Doing Business;
- vi.   Launching  of  an  online  Portal  'Champions'  in  June,  2020  to  cover  many  aspects  of  egovernance including redressing grievances and handholding of MSMEs;
- vii.  Inclusion of Retail and Wholesale traders as MSMEs;
- viii. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- ix.   Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Lending.
- x. Budget  2023-24  has  announced  the  infusion  of  Rs.  9,000  crore  in  the  corpus  of  Credit Guarantee Fund Trust for Micro & Small Enterprises to enable an additional credit of Rs. 2.00 lakh crore with reduced cost of credit.

The number of MSMEs currently functioning in Ladakh, district-wise is as under:

| Sl. No.                           | Name of district                  | Registered MSME under Udyam registration, since inception as on 08.02.2023   |
|-----------------------------------|-----------------------------------|------------------------------------------------------------------------------|
| 1.                                | Kargil                            | 1,762                                                                        |
| 2.                                | Leh Ladakh                        | 3,692                                                                        |
| Source: Udyam Registration Portal | Source: Udyam Registration Portal | Source: Udyam Registration Portal                                            |

- (c): On revision of criteria for classification of MSME 'Udyam Registration Portal' for MSMEs was launched on 01.07.2020. As per data available on Udyam Registration Portal, the details of investment made in MSMEs in Ladakh, since 01.07.2020 to 08.02.2023 (year-wise) is  as under:

| Sl. No.                           | Financial year                     | Investment in Rs. crore           |
|-----------------------------------|------------------------------------|-----------------------------------|
| 1.                                | 2020-21 (01.07.2020 to 31.03.2021) | 138.32                            |
| 2.                                | 2021-22                            | 275.70                            |
| 3.                                | 2022-23 (as on 08.02.2023)         | 148.92                            |
| Source: Udyam Registration Portal | Source: Udyam Registration Portal  | Source: Udyam Registration Portal |

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