Lok Sabha Question No. 1857 (UNSTARRED), answered on 2022-07-28
Subject: MSME Schemes
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Hemant Tukaram Godse

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

## LOK SABHA UNSTARRED QUESTION NO. 1857 TO BE ANSWERED ON 28.07.2022

## MSME SCHEMES

## 1857.              SHRI HEMANT TUKARAM GODSE:

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

- (a) the details of schemes under the Ministry which helps common people to set up enterprises using easy credit;
- (b) the  details  of  schemes  under  the  Ministry  and  the  funds  allocated  and  utilized  under  those schemes during the last three years;
- (c) whether MSME Schemes have helped to increase the number of start-ups in the country and if so, the details thereof;
- (d) the details of different schemes available to launch a start-up/business; and
- (e) the details of employment generated through above schemes during the last three years?

## ANSWER

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

- (a) & (b): Ministry of Micro, Small and Medium Enterprises (MSME) is implementing Prime Minister's Employment Generation Programme (PMEGP) and Credit Guarantee Scheme (CGS) for Micro and Small Enterprises which help common people to set up enterprises using easy credit. The detail of PMEGP and CGS are as under:
- (i) Prime Minister's Employment Generation Programme (PMEGP): The Ministry of MSME, is implementing  a  major  credit-linked  programmed  named  Prime  Minister's  Employment Generation  Programme  (PMEGP)  through  Banks  since  2008-09  with  Khadi  and  Village Industries  Commission  (KVIC) as the nodal  agency  at  the  national  level.  The  objective  of PMEGP is to generate employment in the country by setting up micro-enterprises in the nonfarm  sector.  The  maximum  cost  of  projects  is  Rs.50  lakh  in  the  manufacturing  sector  and Rs.20 lakh in the services sector. The details of Margin Money allocated, sanctioned by banks and disbursed to beneficiaries during the last three years are as follows:

| Financial year   | Margin Money allocated (Rs. lakh)   | Margin Money sanctioned by Bank (in lakh)   | Margin Money Disbursed (in lakh)   |
|------------------|-------------------------------------|---------------------------------------------|------------------------------------|
| 2019-20          | 2,39,644.00                         | 1,88,315.12                                 | 1,95,082.15                        |
| 2020-21          | 2,28,968.52                         | 2,72,927.33                                 | 2,18,880.15                        |
| 2021-22 (P)      | 2,85,000.00                         | 3,19,676.23                                 | 2,97,765.91                        |

- (ii) Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises:  The  Ministry  of  MSME, Government of  India  is  also  implementing  Credit  Guarantee  Scheme  for  Micro  and  Small Enterprises 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 50% to 85% for various categories of loans. The details of no. of Guarantees and amount approved under the Credit Guarantee Scheme for the last three year are as under:
- (c) & (d): As informed by Department for Promotion of Industry & Internal Trade (DPIIT), the Government with an intent to build a strong eco-system for nurturing innovation and startups in the country launched Startup India initiative on 16 th January 2016. The Government, as part of Startup India initiative, is implementing Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund  Scheme  (SISFS)  to  provide  financial  assistance  to  startups  through  Alternative  Investment Funds (AIFs) and incubators respectively. The details of the two schemes are as under:
- (i) Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The  total  corpus  of  Rs.  10,000  crore  is  envisaged  to  be  provided  over  the  14 th and  15 th Finance Commission cycles based on progress of the scheme and availability of funds. As on 30th June 2022, SIDBI has committed Rs. 7,260 crore to 87 AIFs. Further, Rs. 2,803 crore has been distributed to 60 AIFs.
- (ii) Startup  India  Seed  Fund  Scheme  (SISFS):  Easy  availability  of  capital  is  essential  for entrepreneurs at the early stages of growth of an enterprise. The capital required at this stage often presents a make-or-break situation for startups with good business ideas. The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22. Under SISFS, as on 30th June 2022, 97 incubators have been approved for a cumulative funding of Rs. 360.75 crore.
- (e): The  detail  of  employment  generated  in  last  three  years  in  country  under  Prime  Minister's Employment Generation Programme (PMEGP) and Startups recognised by DPIIT is as under:

| Financial year   | No. of Guarantee Approved   | Approved Amount (Rs. in Crore)   |
|------------------|-----------------------------|----------------------------------|
| 2019-20          | 8,46,650                    | 45,851.22                        |
| 2020-21          | 8,35,592                    | 36,899.39                        |
| 2021-22          | 7,17,020                    | 56,171.87                        |

| (i)           | Prime Minister's Employment Generation Programme (PMEGP)   | Prime Minister's Employment Generation Programme (PMEGP)   |
|---------------|------------------------------------------------------------|------------------------------------------------------------|
| Year          | Year                                                       | Employment (No.)                                           |
| 2019-20       | 2019-20                                                    | 5,33,224                                                   |
| 2020-21       | 2020-21                                                    | 5,95,320                                                   |
| 2021-22 (P)   | 2021-22 (P)                                                | 8,25,752                                                   |
| (ii)          | Startups recognised by DPIIT                               | Startups recognised by DPIIT                               |
| Calendar Year | Number of Employees                                        | Number of Employees                                        |
| 2019          | 2019                                                       | 1,38,747                                                   |
| 2020          | 2020                                                       | 1,63,654                                                   |
| 2021          | 2021                                                       | 2,01,657                                                   |