Lok Sabha Question No. 5394 (UNSTARRED), answered on 2025-04-03
Subject: Capacity Building for MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri  Chhotelal, Shri Zia Ur Rehman

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK  SABHA UNSTARRED QUESTION NO. 5394 TO BE ANSWERED ON 03.04.2025

## CAPACITY BUILDING FOR MSMEs

5394.     SHRI CHHOTELAL:

SHRI ZIA UR REHMAN:

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

- (a) whether  the  Government  is  aware  that  a  large  number  of  Micro,  Small,  and  Medium Enterprises (MSMEs) are facing difficulties in growth and expansion due to lack of capital/affordable credit and financial support;
- (b) if  so,  the  details  of  the  steps  taken  by  the  Government  to  provide  easy  loans  and  financial assistance to these enterprises; and
- (c) whether the Government proposes to introduce any special/targeted scheme to help MSMEs to adopt new technologies and enhance their production capacity and if so, the details thereof?

## ANSWER

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

- (a) and (b): The Government implements various measures, which inter-alia include measures for enhancing,  access to affordable credit and providing financial support. Some of these measures are as under:
- (i)  Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs): CGS has a provision of collateral free loans of up to a limit of Rs. 500 lakh to MSEs with guarantee coverage of up to 90%. The details of the number of guarantees provided and the amount of guarantees approved for MSEs under CGS are given below:
- (ii) Prime Minister's Employment Generation Programme (PMEGP) provides Margin Money subsidy upto 35% for setting up of new micro enterprises in the non-farm sector with project cost of Rs. 50 lakh and Rs. 20 lakh for Manufacturing and Services enterprises, respectively.
- (iii)  Special  Credit  Linked  Capital  Subsidy  Scheme  (SCLCSS)  provides  25%  subsidy  to  SC/ST MSEs on institutional finance for procurement of Plant & Machinery/Equipment.

| Duration                                     | 2000-01 to 2019-2020   | 2020-2021 to 2024-2025 (upto 28.02.2025)   |
|----------------------------------------------|------------------------|--------------------------------------------|
| Number of Guarantees Approved                | 43,53,591              | 64,81,482                                  |
| Amount of Guarantees Approved (In Rs. crore) | 2,28,704               | 6,55,987                                   |

- (iv) PM Vishwakarma Yojana provides end-to-end support to artisans and craftspeople of 18 trades who work with their hand and tools. The Scheme components include recognition through the PM Vishwakarma Certificate and ID Card, Skill Upgradation, Toolkit Incentive, Credit Support, Incentives for Digital Transactions and Marketing Support.
- (v) Pradhan Mantri Mudra Yojana provides loans up to Rs. 20 lakh to the non-corporate, non-farm small/micro enterprises.

(c): Ministry of Micro,  Small and Medium Enterprises (MSME) implements MSME Champions scheme  with  the  objective  to  modernize  MSMEs'  manufacturing  processes,  reduce  wastages, encourage innovativeness, sharpen business competitiveness and facilitate their National and Global reach and excellence. Various financial incentives are being provided to MSMEs under the scheme. Components under the MSME  Champions  scheme are MSME-Sustainable  (ZED),  MSMECompetitive  (Lean)  and  MSME-Innovative  (Incubation,  IPR,  Design  and  Digital  MSME).  The network of Technology Centres / Tool Rooms in the country supports MSMEs in providing access to advance manufacturing technologies, training & skilling and business consultancy services to  make them competitive. ZED 2.0 Scheme has been launched for improved efficacy of certification levels and for enhancing quality and competitiveness.

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