Lok Sabha Question No. 1484 (UNSTARRED), answered on 2025-02-13
Subject: MSME Sector in Tamil Nadu
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Thiru D M Kathir Anand

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

## LOK SABHA UNSTARRED QUESTION NO. 1484 TO BE ANSWERED ON 13.02.2025

## MSME SECTOR IN TAMIL NADU

## 1484. THIRU D M KATHIR ANAND:

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

- (a) whether  the  Government  has  taken  a  keen  note  of  the  issues  and  problems  pertaining  to  the MSME sector  in  Tamil  Nadu  especially  in  Vellore  Parliamentary  Constituency  and  if  so,  the  details thereof; and
- (b) whether the Government has any plans to provide adequate financial support and technology and trade support to various MSMEs including leather and textile sector in the said Constituency and if so, the details thereof?

## ANSWER

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

- (a) and (b): The Government of India has taken a number of steps to address the challenges and issues pertaining to MSME sector in the country, including Vellore Parliamentary Constituency in the State of Tamil Nadu. Some of these steps are as under:
- i. New revised criteria for defining MSMEs adopted in 2020.
- ii. Udyam Registration for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
- iii. Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 2.7.2021.
- iv. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- v. Launch of Udyam Assist platform on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Landing.
- vi. Operationalisation of Self Reliant India Fund for equity infusion into MSMEs.
- vii. Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme, for businesses, including MSMEs. The  scheme  was  operational  till  31.03.2023.  As  per  a  research  report  dated  23.01.2023  of  the State  Bank  of  India  on  Emergency  Credit  Line  Guarantee  Scheme,  almost  14.6  lakh  MSME accounts,  of  which  about  98.3%  of  the  accounts  were  in  the  Micro  and  Small  Enterprises categories, were saved from slipping into non-performing asset classification.
- viii. Union Budget 2024-25 announced various measure like Credit Guarantee Scheme for MSMEs in the Manufacturing Sector, New assessment model for MSME credit, Credit Support to MSMEs during Stress Period and Mudra Loans limit enhancement from Rs. 10 lakh to 20 lakh.

For uninterrupted flow of credit and financial support to the MSME sectors, including leather and textile sector,  a series of measures have been undertaken, which inter-alia include schemes such as Prime Minister's Employment Generation Programme for setting up of new micro enterprises in the non-farm sector  by  providing  Margin  Money  subsidy  on  the  Bank  loan,  Special  Credit  Linked  Capital  Subsidy Scheme with a provision of 25% subsidy to  SC/ST  MSEs on institutional finance for procurement of Plant & Machinery / Equipment, Credit Guarantee Scheme for collateral free loans for Micro & Small Enterprises,  collateral  free  loans  upto  Rs  20  Lakh  for  Informal  Micro  Enterprises,  PM  Vishwakarma Yojana, Mudra Loan, etc.

MSME  Champions  Scheme  has  been  formulated  with  an  end  objective  to  modernize  the processes, reduce wastages, sharpen business competitiveness of enterprises, and facilitate their National and Global reach and excellence. Further, 18 Tool Rooms & Technical Institutions (Technology Centres) under the Ministry are imparting skilling and assisting MSMEs.