Lok Sabha Question No. 1831 (UNSTARRED), answered on 2024-08-01
Subject: Raw Material Assistance Scheme
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Satpal Brahamchari, Shri Hanuman Beniwal, Shri Pradeep Kumar Singh

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1831 TO BE ANSWERED ON 01.08.2024

## RAW MATERIAL ASSISTANCE SCHEME

1831.   SHRI PRADEEP KUMAR SINGH: SHRI HANUMAN BENIWAL: SHRI SATPAL BRAHAMCHARI:

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

- (a) whether  National  Small  Industries  Corporation  Limited  (NSIC),  a  public  sector  undertaking under the Ministry to provide facilities to Micro, Small and Medium Enterprises (MSMEs), has taken action  to  provide  financial  support/standing  against  bank  loans  to  enable  them  to  make  payment  to suppliers  of  raw  material  to  these  industries  under  Raw  Material  Assistance  Scheme  and  if  so,  the details thereof;
- (b) the  details  of  the  assistance  provided  to  the  industrialists  in  Rajasthan,  Bihar  and  Haryana, particularly in Sonipat Lok Sabha Constituency;
- (c) whether the Government proposes to provide assistance by offering concession for machinery investment for the MSMEs indulged in manufacturing; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a) and(b): National  Small  Industries  Corporation  Limited  (NSIC),  a  Public  Sector  Undertaking under  this  Ministry,  facilitates  Micro,  Small  and  Medium  Enterprises  (MSMEs)  to  meet  their  raw material requirement by making arrangements with bulk manufacturers like NALCO, SAIL, RINL etc. for procuring and supplying material to MSMEs. NSIC also provides financial assistance to MSMEs under their Raw Material Assistance (RMA) Scheme, against bank guarantee for payment to suppliers. Credit  support  is  also  provided  for  procurement  of  material  from  suppliers/sources  identified  by MSMEs as per their requirement, against bank guarantee.

The details of  assistance provided by NSIC to industries in Rajasthan, Bihar and Haryana in FY 2023-24 are as under:

| Name of State   |   Amount of Assistance (Rs. in crore) |
|-----------------|---------------------------------------|
| Rajasthan       |                                938.46 |
| Bihar           |                                 41.52 |
| Haryana         |                                197.41 |

District-wise data is not maintained centrally.

(c) and (d): Government  has  taken  several  measures  through  various  schemes,  programmes  and policy initiatives for development and promotion of Micro, Small and Medium Enterprises (MSMEs). These schemes and programmes include MSME Champions Scheme, Credit Guarantee Fund Trust for Micro  and  Small  Enterprises  (CGTMSE),  Prime  Minister's  Employment  Generation  Programme (PMEGP), Micro and Small Enterprises - Cluster Development Programme (MSE-CDP) and Raising and Accelerating MSME Performance (RAMP). Further, Government has taken a number of initiatives to support the MSME sector. Some of them are: -

- (i) Collateral free loan up to a limit of Rs. 500 lakh to MSEs with guarantee coverage up to 85 % for various categories of loan through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) under Credit Guarantee Scheme.
- (ii) Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund. This scheme has a provision for corpus of Rs.10,000 crore from Government of India.
- (iii) New criteria for classification of MSMEs with enhanced thresholds.
- (iv) Free  registration  of  MSMEs  through  ''Udyam  Registration  Portal''  for  Ease  of  Doing Business.
- (v) No global tenders for procurement up to Rs. 200 crore.
- (vi) Non-tax benefits extended for 3 years in case of an upward change in status of SMEs.
- (vii) Launch of Udyam Assist Platform (UAP) to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Lending.
- (viii) Launch  of  'PM  Vishwakarma'  Scheme  on  17.09.2023  to  provide  end  to  end  holistic support to the artisans and craftspeople engaged in 18 traditional trades.

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