Lok Sabha Question No. 638 (UNSTARRED), answered on 2025-02-06
Subject: Schemes/Programmes to Support MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Selvam G

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

## LOK SABHA UNSTARRED QUESTION NO. 638 TO BE ANSWERED ON 06.02.2025

## SCHEMES/PROGRAMMES TO SUPPORT MSMEs

## 638. SHRI SELVAM G:

Will the MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the  details  and  overview  of  the  ongoing  schemes  and  programmes  specifically  supporting MSMEs in Tamil Nadu including objectives and target beneficiaries;
- (b) the key initiatives under the MSME  Ministry  currently  aimed  at promoting growth, sustainability, and technological advancement of MSMEs in Tamil Nadu;
- (c) the details of total funds disbursed to MSMEs in Tamil Nadu under credit guarantee schemes, loan subsidies and working capital support programmes; and
- (d) whether there are any new proposals under consideration to support the MSME sector in Tamil Nadu and if so, the details thereof?

## ANSWER

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

(a) and (b): Government implements various Central Sector and demand driven schemes, programmes for MSMEs in the country including Tamil Nadu. These schemes/ programmes include Prime  Minister's  Employment  Generation  Programme  (PMEGP),  Credit  Guarantee  Fund  Trust  for Micro  and  Small  Enterprises  (CGTMSE),  PM  Vishwakarma  (PMV),  Micro  and  Small  Enterprises  Cluster  Development  Programme  (MSE-CDP)  and  Raising  and  Accelerating  MSME  Performance (RAMP), MSME Champions Scheme, etc.

The Government has taken a number of steps for promoting growth, sustainability, technological advancement and  access  to  market  for  the  MSME  sector  through  various  schemes,  programmes  and policy initiatives. Some of these are as follows:

- i. New revised criteria for classification of MSMEs.
- ii. 'Udyam Registration' for MSMEs, for Ease of Doing Business w.e.f. 1.7.2020.   As many as 5,92,90,255 MSMEs are registered on Udyam Portal including Informal Micro Enterprises with an employment of 25,16,94,698 persons till 3.2.2025.
- iii. Launch  of  Udyam  Assist  Platform  on  11.1.2023  to  bring  Informal  Micro  Enterprises  (IMEs) under the formal ambit for availing the benefits under Priority Sector Lending.
- iv. To  facilitate  the  flow  of  credit  to  the  Micro  and  Small  Enterprises,  without  the  hassles  of collateral and third party guarantee up to a maximum of Rs. 5 crore, Credit Guarantee Scheme for Micro and Small Enterprises has been implemented.

- v. A network of Technology Centres/Tool Rooms has been established by Government across the country  to  provide  access  to  advance  manufacturing  technologies  to  MSMEs,  and  to  impart training to youths in partnership with academia and industry.
- vi. Other  initiatives  to  provide  new  and  indigenous  technologies  to  MSME  include  Green Investment and Financing for Transformation Scheme to help MSEs adopt green technology and Scheme for Promotion and Investment in Circular Economy to promote circularity among MSEs are under implementation.
- vii. Inclusion of Retail and Wholesale traders as MSMEs for the purpose of availing Priority Sector Lending benefits, w.e.f. 02.07.2021.
- viii. The  Ministry  of  Micro,  Small  and  Medium  Enterprises  implements  the  Public  Procurement Policy for Micro and Small Enterprises Order, 2012 under the MSMED Act, 2006. The Policy mandates  25%  annual  procurement  from  Micro  and  Small  Enterprises  by  Central  Ministries/ Departments/ Central Public Sector Enterprises, including 4% from Micro and Small Enterprises owned by SC/ST entrepreneurs and 3% from Micro and Small Enterprises owned by women entrepreneurs.
- ix. The Ministry of MSME implements Procurement and Marketing Support Scheme for enhancing market  access  of Micro  and  Small  Enterprises. The  Scheme  facilitates participation in National/International Trade Fairs/Exhibitions/MSME Expo, etc.
- x. The  Ministry  of  Micro,  Small  and  Medium  Enterprises  implements  International  Cooperation Scheme to encourage MSMEs to export their products and facilitates participation of MSMEs in international exhibitions/fairs/buyer-seller meets held abroad and organizes international conferences/seminars/workshops in India.
- xi. For  Capacity  Building  of  First  Time  Exporters  (CBFTE),  reimbursement  is  provided  to  new Micro  and  Small  Enterprises  which  are  exporters  for  costs  incurred  on  Registration  cum Membership Certification (RCMC) with Export Promotion Councils, Export Insurance Premium and Testing & Quality Certification for exports.
- xii. The  Ministry  has  launched  the  MSME  TEAM  initiative  under  the  RAMP  Programme  to proliferate and propagate e-commerce among MSMEs in India.  The objectives of the MSME TEAM Initiative include formalization of MSMEs, Digitization and consequent enhancement in competitiveness, reduction in cost of doing business, expanding market reach of MSMEs.
- xiii. The services provided by the TCs/ECs are to enhance competitiveness of MSMEs, employability of skilled manpower to MSMEs. Currently, 25 ECs are in operation and during last three years, 84,025 trainees have been trained and about 1676 No. of MSMEs given assistance in business/ technical services by these Extension Centres (ECs).  The details of projects in Tamil Nadu are as under:
- i. Extension  Centre(EC)  -  Madurai    has  provided  training  to  4,442  trainees  and  given assistance in business/ technical services to 14 No. of MSMEs till January 2025.
- ii.  The Extension Centre(EC) - Vaniyambadi has been established and catering to the local needs of MSMEs in the catchment area. The Extension Centre(EC) has provided training to  2,283  trainees  and  given  assistance  in  business/  technical  services  to  882  No.  of MSMEs till January 2025.

- xiv. Under the ESDP scheme, several programmes have been conducted on various topics related to skilling  and  promoting  entrepreneurship  in  the  state  of  Tamil  Nadu.  The  details  of  the programmes and beneficiaries in Tamil Nadu are as follows:

| S. No.   | Financial Year           |   No. of Programmes Conducted |   No. of Beneficiaries |
|----------|--------------------------|-------------------------------|------------------------|
| 1.       | 2019-20                  |                           383 |                  16284 |
| 2.       | 2020-21                  |                            34 |                   1647 |
| 3.       | 2021-22                  |                            31 |                   3002 |
| 4.       | 2022-23                  |                           235 |                   9433 |
| 5.       | 2023-24                  |                           319 |                  16445 |
| 6.       | 2024-25 (as on 3.2.2025) |                           175 |                   8761 |
| Total    | Total                    |                          1177 |                  55572 |

## (c): Progress of CGTMSE scheme in Tamil Nadu:

The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly instituted Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) in the  year  2000,  to  provide  credit  guarantee for  the  loans  extended  by  Member  Lending  Institutions  to Micro and Small Enterprises (MSEs) without collateral security and third-party  guarantee. CGTMSE implements the Credit Guarantee Scheme (CGS) for MSEs.  Since inception, a total of 8,30,685 number of credit guarantees for an amount of Rs. 62,606 crores have been extended under CGS in Tamil Nadu till 31.12.2024.

(d): State Government has provided 13.76 acres of land on long term lease basis. For Coimbatore district in Tamil Nadu, the total estimated project cost for TC -Coimbatore is Rs. 201.71 Cr.

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