Lok Sabha Question No. 3778 (UNSTARRED), answered on 2023-03-23
Subject: Setting up of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ashok Mahadeorao Nete

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3778 TO BE ANSWERED ON 23.03.2023

## SETTING UP OF MSMEs

## 3778. SHRI ASHOK MAHDEORAO NETE:

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

- (a) whether the Government has decided to set up more number of Micro, Small and Medium Enterprises (MSMEs) with a view to ensure overall development of the country and if so, the details thereof;
- (b) the details of the steps being taken by the Government to set up MSMEs on a large scale in the country; and
- (d) the incentives being given to the entrepreneurs who are willing to set up MSMEs?

## ANSWER

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

(a), (b) & (d): The MSME sector consists of private enterprises 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 overall development and promotion of MSMEs in the country. A number of recent steps have been taken by Government including AatmaNirbhar Bharat Abhiyaan to promote the MSME sector in the country. These include:

- 1) Rs.  5  lakh  crore  Emergency  Credit  Line  Guarantee  Scheme,  for  businesses, including MSMEs.
- 2) Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- 3) New revised criteria for classification of MSMEs.
- 4) No global tenders for procurement up to Rs. 200 crores.
- 5) 'Udyam Registration' for MSMEs, for Ease of Doing Business w.e.f. 1.7.2020
- 6) Launching of an online Portal 'Champions' in June, 2020 to cover many aspects of e-governance including grievance redress and handholding of MSMEs.
- 7) Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 2.7.2021 for availing benefits under Priority Sector Lending.
- 8) Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs w.e.f. 18.10.2022.
- 9) Launch  of  Udyam  Assist  platform  on  11.1.2023  to  bring  Informal  Micro Enterprises  under  the  formal  ambit  for  availing  benefits  under  Priority  Sector Lending.

- 10) Field  offices  of  Ministry  of  MSME  organize  various  awareness  campaign  for UDYAM  registration and  benefits  of  Government  schemes  /programmes,  in coordination  with  MSME/  Industry  Departments  of  States/UTs  concerned  and other  MSME  stakeholders  through  physical  workshops,  social  media,  print media & electronic media for creating wide publicity for increasing participation from all stake holders.
- 11) Budget 2023 announcement :
- 1) Infusion  of  Rs  9,000  crore  Credit  Guarantee  Trust  for  Micro,  Small  & Medium Enterprises (CGTMSE) with reduced credit cost by about 1 per cent.
- 2) PM VIshwakarma KAushal Samman (PM VIKAS): Financial Assistance for traditional artisans and craftspeople to improve the quality, scale and reach of their  products,  integrating  them  with  the  MSME  value  chain,  access  to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments, and social security.
- 3) Vivad  se  Vishwas  -  Relief  for  MSMEs:    In  cases  of  failure  by  MSMEs  to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance  security, will be returned to them  by government and government undertakings.
- 4) Under  Section  43B  of  Income  Tax  Act:  Deduction  has  been  allowed  for expenditure  incurred  on  payments  only  when  payment  is  actually  made  to MSMEs.

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