Lok Sabha Question No. 3296 (UNSTARRED), answered on 2025-03-20
Subject: Financial Assistance Programmes
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Thiru Dayanidhi Maran

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

## LOK SABHA UNSTARRED QUESTION NO. 3296 TO BE ANSWERED ON 20.03.2025

## FINANCIAL ASSISTANCE PROGRAMMES

## 3296. THIRU DAYANIDHI MARAN:

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

- (a) the specific schemes and financial assistance programmes introduced for MSMEs in Tamil Nadu since 2019;
- (b) the funds disbursed to MSMEs in Tamil Nadu during the last five years;
- (c) the steps taken by the Government to develop MSME clusters and industrial parks in Tamil Nadu during the last five years;
- (d) the number of new MSME industrial estates or business incubators set up in Tamil Nadu during the last five years;
- (e) whether  the  Ministry  has  collaborated  with  the  State  Government  of  Tamil  Nadu  to  improve infrastructure for MSMEs, if so, the details thereof;
- (f) the  initiatives  undertaken  to  promote  technology  adoption  and  digital  transformation  among MSMEs in Tamil Nadu; and
- (g) the number of MSME entrepreneurs in Tamil Nadu who have received skill development training under the Ministry's programmes since 2019?

## ANSWER

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

(a): The  Central  Government  supplements  the  efforts  of  the  States/UTs  through  various  schemes, programmes  and  policy  initiatives  for  promotion,  development  of  MSMEs  in  the  country.    The 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,  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises,  PM  Vishwakarma, Micro  and  Small  Enterprises  -  Cluster  Development  Programme,  Raising  and  Accelerating  MSME Performance, MSME Champions Scheme, etc.

6,13,37,576 MSMEs are registered on Udyam Portal including Informal Micro Enterprises with an employment  of  26,09,22,301  persons  till  15.03.2025.  Out  of  this,  49,64,549  MSMEs  are  registered  in Tamil Nadu employing more than 2,59,22,629 persons .

The performance/achievements of some of the major schemes are 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. Margin Money subsidy ranging from 15% to 35% of project cost, for Projects upto Rs. 50 Lakh    in    manufacturing  sector  and  Rs.  20  lakhs  in  the  service  sector,  is  provided.  Under  the scheme,  Margin  Money  subsidy  for  general  category  beneficiaries  is  25%  in  rural  areas  15%  in urban  areas.  For  beneficiaries  belonging  to  special  categories,  including  women,  Margin  money subsidy is 35% in rural areas and 25% in urban areas.

PMEGP performance in Tamil Nadu in terms of no. of units assisted, margin money (MM) subsidy disbursed and estimated employment generated during the last 5 years is given below:

| Financial Year   | Number of Units Assisted   |   Margin Money Subsidy (Rs. Cr) | Estimated Employment Generated   |
|------------------|----------------------------|---------------------------------|----------------------------------|
| 2019-20          | 5,173                      |                          124.05 | 41,384                           |
| 2020-21          | 5,188                      |                          138.82 | 41,504                           |
| 2021-22          | 5,972                      |                          164.45 | 47,776                           |
| 2022-23          | 6,140                      |                          178.92 | 49,120                           |
| 2023-24          | 6,814                      |                          198.72 | 54,512                           |

- (ii) Progress of Credit Guarantee Scheme for Micro and Small Enterprises 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.
- (b): The Ministry of MSME implements Central Sector Schemes and funds are not allocated state-wise.
- (c) to (e): Ministry of MSME is implementing Micro and Small Enterprises Cluster Development Programme (MSE-CDP).  Under MSE-CDP, there are two components i.e establishment of Common Facility Centres  (CFCs)  &  establishment  /up-gradation  of  infrastructure  facilities  in  Industrial Estate/  Area/  Flatted  Factory  Complex.    Two  New  Industrial  Estates  under  MSE-CDP  have  been established  in  the  State  of  Tamil  Nadu  at:  (i)  New  Industrial  Estate  at  Marikundu,  Theni  and  (ii) New industrial  estate  at  Pidaneri,  Toothukudi.  Establishment  /  up-gradation  of  Infrastructure  facilities  in Industrial Estate component of MSE-CDP are being implemented in collaboration with State Government.

| CGTMSE - Overall Guarantee Approved - Tamil Nadu   | CGTMSE - Overall Guarantee Approved - Tamil Nadu   | CGTMSE - Overall Guarantee Approved - Tamil Nadu   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| Duration                                           | Number                                             | Amount ₹ Crore                                     |
| FY 2019-20                                         | 89,725                                             | 4,353                                              |
| FY 2020-21                                         | 61,535                                             | 3,344                                              |
| FY 2021-22                                         | 44,897                                             | 4,134                                              |
| FY 2022-23                                         | 61,883                                             | 7,114                                              |
| FY 2023-24                                         | 1,13,815                                           | 15,061                                             |
| FY 2024-25 Till Feb 28, 2025                       | 1,44,805                                           | 17,863                                             |
| Cumulative since inception as on Feb 28, 2025      | 8,66,672                                           | 67,499                                             |

Under MSME Innovative Scheme (Incubation Component) of the Ministry of MSME, Institutions such  as  Technical  Colleges,  Universities,  other  Professional  Colleges/Institutes,  R&D  Institutes,  NGOs involved  in  incubation  activities,  MSME-DFOs/  Technology  Centres  or  any  Institute/Organization  of Central/State  Government  may  apply  for  registration  as  an  Host  Institute  (HI)  and  act  as  a  Business Incubator (BI) for nurturing of ideas from the initial stage of conceptualization to the commercialization stage through HIs/ BIs. In the state of Tamil Nadu, there are a total of 175 approved HIs under this scheme.

(f) and (g):     The Central Footwear Training Institute (CFTI), Chennai, Tamil Nadu, was established in 1996  to  cater  to  the  needs  of  the  MSME  sector  by  providing  skilled  manpower  and  re-skilling  of  the industry workforce through various training programmes.

The number of MSMEs benefitted through specialised Skill Development training programmes conducted by CFTI Chennai in Tamil Nadu since 2019 is given below:

| Year                                                                    |   2019-20 |   2020-21 |   2021-22 |   2022-23 |   2023-24 |   2024-25 (Till February 2025) |
|-------------------------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|--------------------------------|
| Number of MSMEs Benefitted through Specialised Skill Training Programme |        56 |        68 |       178 |       286 |       521 |                            446 |

Under  the  Entrepreneurship  and  Skill  Development  Programme  (ESDP),  several  programmes  have been conducted on various topics related to skilling and promoting entrepreneurship including 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                   |                           245 |                   9433 |
| 5.       | 2023-24                   |                           319 |                  16445 |
| 6.       | 2024-25 (Till 12.03.2025) |                           272 |                  13180 |
| Total    | Total                     |                          1284 |                  59991 |

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