Lok Sabha Question No. 1749 (UNSTARRED), answered on 2024-12-05
Subject: Capital Investment Subsidy Scheme
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Muhammed Hamdullah Sayeed

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

## LOK SABHA UNSTARRED QUESTION NO. 1749 TO BE ANSWERED ON 05.12.2024

## CAPITAL INVESTMENT SUBSIDY SCHEME

1749. SHRI MUHAMMED HAMDULLAH SAYEED:

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

- (a) the details of timelines and targets set under the 25 per cent capital investment subsidy scheme for establishing Micro and Small enterprises, State/UT-wise;
- (b) the mechanism established for monitoring the progress of this scheme; and
- (c) the number of enterprises set up under the scheme, State/UT-wise?

## ANSWER

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

(a)to(c): The Ministry of Micro, Small and Medium  Enterprises (MSME)  has been implementing National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme since October, 2016  to  promote  entrepreneurship  amongst  the  SCs/STs  and  to  fulfill  the  mandated  4%  of procurement  from  SC/ST  MSEs  under  the  Public  Procurement  Policy  for  Micro  and  Small Enterprises,  Government  of  India.  The  implementation  of  the  scheme  is  being  monitored  in  the Ministry at various level at regular interval. The scheme has been continued for 15 th Finance Cycle i.e FY 2021-22 to FY 2025-26.

Under the 'Special Credit Linked Capital Subsidy Scheme (SCLCSS)' component of NSSH Scheme,  25%  capital  subsidy  is  provided  to  SC-ST  owned  MSEs  for  procurement  of  plant  and machinery/equipment (i.e. subsidy cap of Rs. 25 lakh) without any sector specific restrictions. The beneficiary  unit  will  have  to  remain  in  commercial  production/service  for  three  years  after installation & commissioning of the plant & machinery and equipment, on which subsidy under the SCLCSS has been availed.  To ensure this, the subsidy released by the Government under SCLCSS is being kept  in the form of Term Deposit Receipt (TDR).  On expiry of retention period of three years, bank liquidate the TDR and credit the proceeds into loan account of beneficiary after being satisfied that the requisite terms and conditions of  SCLCSS are duly adhered to.

The  State-wise  SC-ST  owned  MSEs  assisted  under  SCLCSS  till  date  is  enclosed  at Annexure-I

Further,  under  the  Prime  Ministers  Employment  Generation  Programme  (PMEGP)  of  this Ministry assists  General  Category beneficiaries  with  Margin  Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, transgenders, beneficiaries belonging to North Eastern Region, hill and border areas, and aspirational districts, the margin money subsidy is 35% in rural areas and 25% in urban areas. The  maximum  cost  of  project  is  Rs.  50  lakh  in  the  manufacturing  sector  and  Rs.  20  lakh  in  the service sector.

Since 2018-19, existing PMEGP/MUDRA enterprises are also supported based on past good performances with 2nd loan for upgradation and expansion. Under 2 nd Loan, maximum project cost admissible for margin money subsidy under Manufacturing sector is Rs. 1.00 crore and for Service sector is Rs. 25 lakh. Eligible subsidy on 2 nd loan for all categories is 15% of project cost (20% for NER and Hill States).

State-wise details of beneficiaries assisted under PMEGP since its inception i.e. FY2008-09 to FY2024-25 (up to 02.12.2024) is enclosed at Annexure-II.

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## Annexure-I

Annexure-I referred  to  parts  (a)  to  (c)  of  Lok  Sabha  Unstarred  Question  No.  1749  for  answer  on 05.12.2024

## State-wise SC-ST MSEs assisted under SCLCSS of NSSH Scheme since its inception to till date

| S. No   | State Name       |   No. of Beneficiaries |   No. of claims |
|---------|------------------|------------------------|-----------------|
| 1       | Andhra Pradesh   |                    190 |             190 |
| 2       | Assam            |                      3 |               4 |
| 3       | Chandigarh       |                      2 |               3 |
| 4       | Chhattisgarh     |                      3 |               3 |
| 5       | Delhi            |                    171 |             171 |
| 6       | Gujarat          |                    541 |             548 |
| 7       | Haryana          |                     19 |              22 |
| 8       | Himachal Pradesh |                      5 |               7 |
| 9       | Jharkhand        |                      8 |               8 |
| 10      | Karnataka        |                    153 |             158 |
| 11      | Ladakh           |                      8 |               8 |
| 12      | Madhya Pradesh   |                     17 |              19 |
| 13      | Maharashtra      |                    790 |             868 |
| 14      | Manipur          |                      1 |               1 |
| 15      | Mizoram          |                      5 |               5 |
| 16      | Odisha           |                      6 |               6 |
| 17      | Punjab           |                     23 |              31 |
| 18      | Rajasthan        |                    180 |             222 |
| 19      | Tamil Nadu       |                     31 |              32 |
| 20      | Telangana        |                    163 |             166 |
| 21      | Tripura          |                     11 |              16 |
| 22      | Uttar Pradesh    |                      4 |               5 |
| 23      | Uttarakhand      |                      7 |               7 |
| 24      | West Bengal      |                      5 |               5 |
|         | Grand Total      |                   2346 |            2505 |

Annexure-II referred to parts (a) to (c) of Lok Sabha Unstarred Question No. 1749 for answer on 05.12.2024

## State-wise details of beneficiaries assisted under PMEGP since its inception i.e. FY 2008-09 to FY 2024-25 (up to 02.12.2024)

| Sr. No.   | State             | No of Units Assisted   |
|-----------|-------------------|------------------------|
| 1         | Andaman Nicobar   | 2,615                  |
| 2         | Andhra Pradesh    | 35,159                 |
| 3         | Arunachal Pradesh | 4,177                  |
| 4         | Assam             | 65,608                 |
| 5         | Bihar             | 46,737                 |
| 6         | Chandigarh        | 511                    |
| 7         | Chhattisgarh      | 29,496                 |
| 8         | Delhi             | 1,959                  |
| 9         | Goa               | 1,277                  |
| 10        | Gujarat*          | 34,390                 |
| 11        | Haryana           | 21,171                 |
| 12        | Himachal Pradesh  | 16,107                 |
| 13        | Jammu Kashmir     | 92,302                 |
| 14        | Jharkhand         | 26,561                 |
| 15        | Karnataka         | 50,163                 |
| 16        | Kerala            | 32,107                 |
| 17        | Ladakh            | 824                    |
| 18        | Lakshadweep       | 93                     |
| 19        | Madhya Pradesh    | 48,997                 |
| 20        | Maharashtra**     | 54,452                 |
| 21        | Manipur           | 12,030                 |
| 22        | Meghalaya         | 6,543                  |
| 23        | Mizoram           | 9,221                  |
| 24        | Nagaland          | 10,524                 |
| 25        | Odisha            | 45,658                 |
| 26        | Puducherry        | 1,067                  |
| 27        | Punjab            | 20,295                 |
| 28        | Rajasthan         | 32,658                 |
| 29        | Sikkim            | 1,045                  |
| 30        | Tamil Nadu        | 62,759                 |
| 31        | Telangana         | 18,142                 |
| 32        | Tripura           | 16,174                 |
| 33        | Uttar Pradesh     | 105,201                |
| 34        | Uttarakhand       | 22,798                 |
| 35        | West Bengal       | 56,226                 |
| Total     | Total             | 985,047                |