Lok Sabha Question No. 826 (UNSTARRED), answered on 2025-07-24
Subject: MSME Clusters
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Ms. S Jothimani

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

## LOK SABHA UNSTARRED QUESTION NO. 826 TO BE ANSWERED ON 24.07.2025

## MSME CLUSTERS

## 826. MS. S JOTHIMANI:

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

- (a) the  measures  being  taken  to  address  the  issue  of  delayed  payments  to  MSMEs  from  large Corporations and Government Departments;
- (b) the steps being taken to enhance market access and export opportunities for MSMEs;
- (c) whether  there  is  any  update  on  the  performance  of  MSME  clusters  and  their  role  in employment generation and if so, the details thereof; and
- (d) the support being provided to MSMEs affected by economic disruptions or global supply chain challenges?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): The  Government  of  India  has  taken  a  number  of  measures  to  ensure  timely  payment settlements  for  Micro  and  Small  Enterprises  (MSEs)  across  the  country.  The  Ministry  of  MSME launched SAMADHAAN Portal on 30.10.2017 (https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC\_Welcome.aspx)  for  monitoring  of  the outstanding  dues  to  the  MSEs  from  the  buyers  of  goods  and  services.  The  Ministry  also  created  a special  sub-portal  within  SAMADHAAN Portal on 14.06.2020, for reporting the dues and  monthly payments  by  Central  Ministries/Departments/Public  Sector  Enterprises  to  MSMEs.    161  Micro  & Small Enterprises Facilitation Councils (MSEFCs) have been set-up in States/UTs in accordance with the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. The monetary limit for onboarding on Trade Receivables Discounting System for Corporates and CPSEs has been reduced to a turnover of Rs. 250 Crore vide Notification S.O. 4845(E) dated 07.11.2024.
- (b): With  the  objective  of  enhancing  market  access  for  MSMEs,  the  Ministry  of  MSME, Government of India notified the Public Procurement Policy for Micro and Small Enterprises (MSEs), Order, 2012 (as amended in 2018), which mandates 25% annual procurement from MSEs by Central Ministries/Departments/Central Public Sector Enterprises (CPSEs), including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs. As per MSME SAMBANDH Portal, a procurement  of  Rs.  93,911.23  Crore  was  done  from  MSEs  in  F.Y.  2024-25.  Procurement  and Marketing Support Scheme extends benefits to MSEs for market access through participation in Trade Fairs/ Exhibitions, Vendor Development Programmes, adoption of Modern Packaging Technique, eCommerce platforms, etc.

Under  International  Cooperation  Scheme  of  the  Ministry,  financial  assistance  is  provided  on reimbursement basis to the eligible Central/State Government organizations and Industry Associations to  facilitate  participation  of  MSMEs  in  the  international  exhibitions/fairs/buyer-seller  meets  held abroad. The Scheme includes a component of 'Capacity Building of First Time Exporters'. Further, to enhance export opportunities for MSMEs, the Ministry of MSME has developed a dedicated support system for export promotion in MSME Sector by establishing 65 Export Facilitation Centres (EFCs) in its  field  organizations  namely  MSME-Development  and  Facilitation  Offices,  MSME  Technology Centres and MSME Testing Centres.

To further promote export opportunities for MSMEs, the credit guarantee cover for exporter MSMEs, for term loans up to Rs. 20 crore, has been enhanced through Budget announcements 2025-26.

- (c): Ministry of MSME implements Micro and Small Enterprises Cluster Development Programme (MSE-CDP)  across  the  country.  Since  inception,  229  Common  Facility  Centres  (CFCs)  and  361 Infrastructure  Development (ID) projects have been approved under the programme and out of this 111 CFCs and 251 ID projects have been completed. The proposals under the scheme are received from the State/UT Governments and financial assistance as Government of India grant is provided to establish Common  Facility Centers (CFCs) in the existing clusters and establish/up-grade infrastructural facilities in new/existing industrial estates/areas/flatted factory complexes.
- (d): The Ministry of Micro & Small Enterprises has taken various steps to strengthen and support the MSMEs affected by economic disruptions or global supply chain challenges. Some of these steps are as under:
- i. Emergency Credit Line Guarantee Scheme of Rs.5 lakh crore, as part of Aatmanirbhar Bharat Abhiyan  to  support  eligible  MSMEs  and  business  enterprises  in  meeting  their  operational liabilities and restarting their businesses. The Scheme was operational till 31.03.2023. As per a research  report  dated  23.01.2023  of  the  State  Bank  of  India  on  Emergency  Credit  Line Guarantee Scheme, almost 14.6 lakh MSME accounts, of which about 98.3% of the accounts were  in  the  Micro  and  Small  Enterprises  categories,  were  saved  from    slipping  into  NonPerforming Asset (NPA) classification.
- ii. Under the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) of Ministry of MSME, guarantee is provided to Member Lending Institutions for the credit extended by them to MSEs without any collateral security or third-party guarantee. Additional corpus fund of Rs. 9,000  crore  was  infused  into  the  corpus  of  Credit  Guarantee  Fund  Trust  for  MSEs,  as announced in the Union Budget 2023-24 to enable an additional credit of Rs. 2.00 lakh crore, at a reduced cost of credit.
- iii. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- iv. Inclusion  of  Retail  and  Wholesale  traders  as  MSMEs  w.e.f.  02.07.2021  for  priority  sector lending.
- v. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- vi. Launch of Udyam Assist platform (UAP) on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Lending.
- vii. No global tenders for procurement up to Rs.200 crores.

To  further  support  the  MSME  Sector,  Government  of  India  announced  Mutual  Credit  Guarantee Scheme for MSMEs in manufacturing sector and Credit  Guarantee  Scheme  for  MSMEs  in  Special Mention Account (SMA) in Budget 2024. Further, the Government revised the definition of MSMEs and enhanced the guarantee coverage under CGS from Rs. 5 Crore to Rs. 10 Crore through Budget Announcement 2025

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