Lok Sabha Question No. 501 (UNSTARRED), answered on 2024-07-25
Subject: Viksit Bharat 2047 under MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Godam Nagesh

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

## LOK SABHA UNSTARRED QUESTION NO. 501 TO BE ANSWERED ON 25.07.2024

## VIKSIT BHARAT 2047 UNDER MSMEs

501. SHRI GODAM NAGESH:

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

- (a) whether it is a fact that it is an important policy priority for the Government to ensure timely and adequate  finances,  relevant  technologies  and  appropriate  training  for  the  Micro,  Small  and  Medium Enterprises (MSMEs) to grow and also compete globally and in orienting the regulatory environment to facilitate their growth which will also be an important element of this policy mix and aligning with the 'Panchamrit' goals and if so, the steps taken by the Government in this regard; and
- (b) the  steps  being  taken  to  achieve  the  goal  of  Viksit  Bharat  2047  under  MSMEs  and  funds sanctioned/spent therefor till now?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

(a) and (b): A  number  of initiatives  have  been  taken  by  Ministry  of Micro,  Small  and  Medium Enterprises    for  creating  an  enabling  environment  for  MSMEs.  Government  has  a  policy  priority  to ensure timely and adequate finances, relevant technologies and appropriate training for MSMEs. Some of the initiatives taken by Government include the following:

-  Collateral  free  loan  up  to  a  limit  of  Rs.  500  lakh  (w.e.f.  01.04.2023)  to  micro  and  small enterprises.
-  Rs. 50,000 crore equity infusion through Self Reliant India Fund for providing growth capital to the deserving and eligible units of MSME sector.
-  Under Prime Minister's Employment Generation Programme, credit linked subsidy for setting up new micro-enterprise in non-farm sector is provided. Margin Money subsidy ranging from 15% to 35% of project cost, for projects up to Rs. 50 Lakh in manufacturing sector and Rs. 20 Lakh  in  the  service  sector,  is  provided.  For  beneficiaries  belonging  to  Special  categories, including women,  Margin Money subsidy is 35% in rural areas and 25% in urban areas.
-  Under the Tool Rooms & Technical Institutions, Ministry of MSME has set up 18 Tool Rooms &  Technical  Institutions  known  as  Technology  Centres  (TCs)  in  the  sectors  like  general engineering,  automation,  hand  tools,  plastics,  auto  parts,  electrical  &  electronics,  forging  & foundry, sports goods, leather & footwear, fragrance & flavors, etc. to support MSMEs with the  relevant  technologies.  Apart  from  the  technological  development  activities,  TCs  provide skilling to youth and re-skilling the working manpower of the industry.

-  The  Entrepreneurship  and  Skill  Development  Programme  (ESDP)  Scheme  aims  to  support young  persons  representing  different  sections  of  the  society  including  SC/ST  women, physically  handicapped,  Ex-servicemen,  and  BPL  persons  to  consider  self-employment  or entrepreneurship as one of the career options.
-  Further  Ministry  of  MSME  has  launched  MSE  Green  Investments  and  Financing  for Transformation  (MSE-GIFT)  and  MSE  Scheme  for  Promotion  and  Investment  in  Circular Economy (MSE-SPICE) Schemes on 20.12.2023 that align with the 'Panchamrit' goals.
- i. MSE-GIFT  Scheme  has  an  objective  to  provide  institutional  finance  to  MSEs  at  a concessional cost to minimize or overcome the incremental cost of clean/green technologies coupled with adequate technical handholding support for adopting environment sustainable projects and climate change adaptation and mitigation technologies  while  ensuring  growth  and  competitiveness  of  MSMEs.  Projects  like production  of  energy  from  renewable  sources,  clean  transportation  that  involve  lower greenhouse gas emissions; energy-efficient projects like green building; waste management that include recycling, etc. are included the Scheme.
- ii. MSE-SPICE  has  a  primary  goal  to  promote  resource  efficiency,  reduce  environmental impact,  and  enhance  the  competitiveness  of  MSEs.  Eligible  MSEs  are  eligible  for  25% capital subsidy on the cost of plant and machinery, subject to a cap of Rs. 12.5 lakh per MSE.

MSMEs  play  a  crucial  role in driving economic  growth,  innovation,  and  employment generation.  Through  the  above  measures,  the  goal  of  Viksit  Bharat  2047  through  MSME  sector  is expected to be achieved. The fund sanctioned for MSE-GIFT and MSE-SPICE Schemes are Rs. 478 crore and Rs. 472.5 crore for years 2023-26 and 2023-27, respectively.

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