Lok Sabha Question No. 4521 (UNSTARRED), answered on 2025-03-27
Subject: MSE-SPICE Scheme
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Haribhai Patel

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

## LOK  SABHA UNSTARRED QUESTION NO. 4521 TO BE ANSWERED ON 27.03.2025

## MSE-SPICE SCHEME

## 4521. SHRI HARIBHAI PATEL:

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

- (a) whether  the  Government  has  launched  the  MSE-SPICE  Scheme  to  enable  Micro  and  Small Enterprises (MSEs) to adopt Circular Economy solutions, if so, details thereof;
- (b) the details of  the objectives, target sectors and strategies adopted under the scheme;
- (c) the total budget allocated for the scheme and the expected benefits for the MSE sector;
- (d) the number of MSEs assisted under the scheme so far and the total expenditure incurred as on March 2025; and
- (e) whether the Government has identified specific initiatives to encourage recycling and resource reprocessing in key sectors like plastic, rubber and electronic waste, if so, details thereof?

## ANSWER

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

(a) and (b): The Government of India launched the MSE-Scheme for Promotion and Investment in Circular Economy (MSE-SPICE) to enable UDYAM registered Micro and Small Enterprises (MSEs) to adopt  Circular  Economy  solutions  focusing  on  sectors  like  Plastic,  Rubber,  Electronics waste, Municipal solid waste and liquid waste, Compressed biogas, End-to-life vehicles, Scrap metal- ferrous and  non-ferrous,  Solar  panels,  Gypsum,  toxic,  Hazardous  industrial  waste,  used  oil  waste  to  comply with  Extended  Producer  Responsibility  (EPR)  and  Waste  Recycling  targets  set  for  industries  and international  environmental  goals  and  improve  operational  efficiency.  The  loan  size  under  the  MSESPICE Scheme varies based on the project cost. For Brownfield projects in MSEs, the maximum project cost admissible under the scheme is ₹ 50 Lakhs, with a 25% subsidy on the cost of Plant and Machinery only. However, projects costing more than ₹ 50 Lakhs are also admissible under the scheme, but the subsidy  would  be  limited  to  a  maximum  of  ₹12.5  Lakhs/unit.  The  objectives  of  the  Scheme  are  as under:

-  To promote Circular Economy (CE) and incentivize MSEs to adopt CE in the sector with a focus on notified regulations such as Plastic, Rubber and Electronics Waste Management etc.
-  Enable  MSE  units  to  comply  with  Extended  Producers  Responsibility  (EPR)  and  Waste Recycling targets set for industries.
- (c): MSE-SPICE Scheme having total budget outlay of ₹ 472.50 Crore to enable more than 3400 Nos. of MSEs to adopt Circular Economy (CE) solutions.
- (d):     Total 6 Nos. of   Micro and Small Enterprises (MSEs) have been assisted under the scheme and total expenditure incurred is ₹ 124.54 lakh.
- (e):          The  scheme  encourages  recirculation  of  resources  by  adopting  the  strategies  of  Circular Economy,  which  interalia  includes;  reducing,  reusing  and  recycling  in  the  key  sector  like  Plastic, Rubber and Electronic waste.

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