Lok Sabha Question No. 1791 (UNSTARRED), answered on 2021-07-29
Subject: Vendor Development Programmes
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sanjay Jaiswal

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

## LOK SABHA UNSTARRED QUESTION NO. 1791 TO BE ANSWERED ON 29.07.2021

## Vendor Development Programmes

## 1791.  DR. SANJAY JAISWAL:

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

(a) whether the Government  proposes to introduce scheme for developing industrial  corridor  or  cluster  only  for  the  Micro,  Small  and  Medium  Enterprises (MSMEs) and if so, the details thereof;

(b) the  policies  and  schemes  available  for  the  entrepreneurs  to  develop  clusters under PPP model;

(c) the  details  of  Vendor  Development  Programmes  (VDPs)  conducted  by  the Government at National and State level along with the outcome thereof during each of the last three years;

(d) the  details  of  the  initiative  taken  under  VDPs  by  the  leading  PSUs  in  the country; and

(e) the  steps  taken  by  the  Government  to  provide  business  opportunities  to MSMEs to expand their market base?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

(a): For  development of clusters,  Ministry  of  MSME  is  implementing  Micro  and Small Enterprises - Cluster Development Programme (MSE-CDP). The objective of the  scheme  is  to  enhance  the  productivity  and  competitiveness  of  Micro  and  Small Enterprises (MSEs) by extending financial assistance for establishment of Common Facility  Centers  (CFCs)  in  the  existing  clusters.  The  scheme  also  extend  support  to project  of  State  Government  to  create  /  upgrade  Infrastructural  facilities  in  new  / existing  industrial  areas.  MSE-CDP  is  a  demand  driven  scheme  wherein  financial assistance is provided as Government of India's grant.

(b): There is no scheme to develop clusters under PPP model.

(c) & (d): The  details  of  National  Level  and  State  Level  Vendor  Development Programmes (VDPs) conducted during 2018-19 to  2020-21  under  Procurement  and Marketing  Support  (PMS)  scheme  of  this  Ministry,  Special  VDPs  conducted  under NSIC  for  SC/ST  entrepreneurs  and  State  VDPs  conducted  by  CPSEs  as  per  the MSME Sambandh Portal are as under:

| S. No.   | Year    | VDPs conducted under PMS   | VDPs conducted under PMS   | Special VDPs conducted under NSIC for SC/ST entrepreneurs   | State VDPs conducted by CPSEs   |
|----------|---------|----------------------------|----------------------------|-------------------------------------------------------------|---------------------------------|
| S. No.   | Year    | National Level             | State Level                | Special VDPs conducted under NSIC for SC/ST entrepreneurs   | State VDPs conducted by CPSEs   |
| 1.       | 2018-19 | 04                         | 30                         | 76                                                          | 2578                            |
| 2.       | 2019-20 | 03                         | 53                         | 70                                                          | 2728                            |
| 3.       | 2020-21 | --                         | 05                         | 91                                                          | 2933                            |

As  a  result,  procurement  from  Micro  and  Small  Enterprises  has  increased  from 26.32% in FY 2018-19 to 28.12% in FY 2020-21 benefitting 1,28,150 and 1,74,546 MSEs respectively.

(e): Ministry  of  MSME  provides  business  opportunities  to  Micro  and  Small Enterprises to expand their market base through Procurement and Marketing Support Scheme,  Coir  Vikas  Yojana  (CVY),  Scheme  for  International  Corporation,  Public Procurement Policy for Micro and Small Enterprises (MSEs) and MSME Global Mart Portal  by  The  National  Small  Industries  Corporation  Ltd.  Under  Government  eMarket Place (GeM), a special window is for MSE Sellers and Service providers. As on 26.07.2021, MSEs registered on GeM portal are 7,08,962 nos.

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