Lok Sabha Question No. 3197 (UNSTARRED), answered on 2025-12-18
Subject: MSME Sector in Uttar Pradesh
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Anurag Sharma

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

## LOK SABHA UNSTARRED QUESTION NO. 3197 TO BE ANSWERED ON 18.12.2025

## MSME SECTOR IN UTTAR PRADESH

## 3197.          SHRI ANURAG  SHARMA:

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

- (a) the  total  funds  allocated  by  the  Union  Government  for  the  Micro,  Small  and  Medium Enterprises (MSME) sector in Uttar Pradesh for the financial year 2024-25, including the schemes under which such funds have been earmarked;
- (b) whether  any  proposals  for  the  establishment  of  MSME  clusters  in  the  Bundelkhand  regioncovering Jhansi, Lalitpur, Banda, Hamirpur, Mahoba and Chitrakoot-have been approved and if so, the details of these clusters and their expected benefits for local entrepreneurship;
- (c) whether the Government is considering declaring Bundelkhand as an MSME Priority Region in  view  of  its  backwardness  and  employment  potential,  if  so,  the  criteria  being  considered  for  such classification; and
- (d) whether additional incentives, such as credit facilitation, subsidised land or marketing support are proposed to encourage MSMEs to set up units in Bundelkhand and if so, the details thereof?

## ANSWER

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

- (a): The Government of India supplements the efforts of the States/UTs through various schemes, programmes and policy initiatives for promotion, development of MSMEs in the country. The Ministry of MSME implements Prime Minister's Employment Generation Programme, Credit Guarantee Scheme for Micro and Small Enterprises and International Cooperation Scheme etc. Status of implementation of these schemes in Uttar Pradesh implemented by the Ministry is as under:
- (i)  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  is  a  credit  linked  subsidy programme aimed at generating self-employment opportunities through establishment of microenterprises  in  the  non-farm  sector  by  helping  traditional  artisans  and  rural/urban  unemployed youths through Margin Money subsidy.

Details of Funds allocated to Uttar Pradesh State during the year 2024-25 is as under:

| Name of Scheme                                           |   Funds allocated/disbursed/released (Rs. In lakh) 2024-25 |
|----------------------------------------------------------|------------------------------------------------------------|
| Khadi Gramodyog Vikas Yojana (KGVY)                      |                                                    6962.11 |
| Prime Minister's Employment Generation Programme (PMEGP) |                                                   24113.3  |

- (ii) Under Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs), credit guarantee is  provided  for  loans  extended  to  MSEs  without  collateral  security  and  third-party  guarantee through  Credit  Guarantee  Fund  Trust  for  MSEs  (CGTMSE).  The  details  of  credit  guarantees extended to MSEs under CGS in Bundelkhand region, Uttar Pradesh as per Annexure -I .
- (iii)The  Ministry  is  implementing  Micro  and  Small  Enterprises  -Cluster  Development  Programme (MSE-CDP) across the country. The objective of these scheme is to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs) for their holistic development adopting cluster development approach by providing financial assistance as GoI grant 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.

During FY 2024-25, one project for flatted factory complex at UPSIC Industrial Area, Amausi, Lucknow, is  approved  at  total  project  cost  of  ₹34.30  crore  and  Government  of  India  grant  of ₹10.50 crore.

- (iv)  Under  International  Cooperation  Scheme  (IC)  Scheme,  financial  assistance  is  provided  on reimbursement  basis  to  the  eligible  Central  /  State  Government  organizations  and  Industry Associations to facilitate participation of MSMEs in international exhibitions/ fairs/ buyer-seller meets  held  abroad  and  for  organizing  international  conferences/  seminars/  workshops  in  India, etc. Reimbursement is also provided to the first-time Micro & Small Enterprises for various costs involved  in  export  of  goods  and  services.  158  MSMEs  from  Uttar  Pradesh  have  been  assisted over the last five years.

(b): No proposal for establishment of MSME clusters in the Bundelkhand region has been received from State Government under MSE-CDP scheme.

(c) and (d): There is no proposal to declare Bundelkhand as an MSME Priority Region and no criteria for such a declaration are presently under consideration. There is no proposal for additional incentives to encourage MSMEs to setup units in Bundelkhand.

****

Annexure  referred  to  in  reply  to  part  (a)  of  the  Lok  Sabha  Unstarred  Question  No.  3197  replied  on 18.12.2025.

| CGS - Guarantee Approved - Overall   | CGS - Guarantee Approved - Overall   | CGS - Guarantee Approved - Overall   | CGS - Guarantee Approved - Overall   | CGS - Guarantee Approved - Overall   |
|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
|                                      | FY 2025-26 as on Nov 30, 2025        | FY 2025-26 as on Nov 30, 2025        | Cumulative as on Nov 30, 2025        | Cumulative as on Nov 30, 2025        |
|                                      | No. of guarantees approved           | Amount approved (in Rs. crore)       | No. of guarantees approved           | Amount approved (in Rs. crore)       |
| Jhansi                               | 4,272                                | 253                                  | 24,350                               | 1,356                                |
| Lalitpur                             | 2,127                                | 89                                   | 9,891                                | 424                                  |
| Banda                                | 2,257                                | 111                                  | 9,400                                | 555                                  |
| Hamirpur                             | 1,152                                | 66                                   | 6,162                                | 346                                  |
| Mahoba                               | 961                                  | 70                                   | 4,432                                | 317                                  |
| Chitrakoot                           | 1,049                                | 48                                   | 5,116                                | 255                                  |
| Uttar Pradesh                        | 3,19,951                             | 26,779                               | 17,47,395                            | 1,22,498                             |
| All India                            | 15,52,645                            | 2,50,001                             | 1,30,63,982                          | 11,84,872                            |