Lok Sabha Question No. 1901 (UNSTARRED), answered on 2025-12-11
Subject: Private Investment in MSME Clusters
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. C M Ramesh

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1901 TO BE ANSWERED ON 11.12.2025

## PRIVATE INVESTMENT IN MSME CLUSTERS

1901.  DR. C M RAMESH:

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

- (a) whether  private  investment  in  Micro,  Small  and  Medium  Enterprises  (MSME)  clusters  has increased in Andhra Pradesh during the last three years and if so, the details thereof;
- (b) the steps taken to enhance credit flow and ease of doing business for MSMEs; and
- (c) whether any Central schemes are being implemented in partnership with the State agencies to promote private participation in the growth of MSMEs and if so, the details thereof?

## ANSWER

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

- (a): Ministry  of  MSME  is  implementing  a  Micro  and  Small  Enterprises-Cluster  Development Programme  (MSE-CDP)  across  the  country.  The  Government  provides  financial  assistance  to establish Common  Facility Centers (CFCs) in the existing clusters and establish/up-grade infrastructural  facilities  in  new/existing  industrial  estates/areas/flatted  factory  complexes.  It  is  a demand driven scheme where proposals are received from State Government to address the common needs  of  existing  cluster  in  their  State/UTs.  The  CFC  proposals  follow  a  tripartite  funding  pattern with share of Government of India ranges from 60%-80% and that of SPV of participants MSMEs in the  range  of  5%-15%  while  remaining  share  is  contributed  by  respected  State  Government.  The details of projects under MSE-CDP in Andhra Pradesh in last 3 years are as follows.

|   SI. No. |   No. of Projects |   Project Cost (in Crore) |   Approved Government of India Grant (in Crore) |
|-----------|-------------------|---------------------------|-------------------------------------------------|
|         1 |                26 |                   404.025 |                                          260.98 |

(b) to (c): The Central Government Supplements the efforts of State Government to promote the growth  of  MSMEs.  The  Government  of  India,  Ministry  of  Micro,  Small  and  Medium  Enterprises (MSME)  implements  various  schemes  and  programmes  aimed  at  promotion  and  development  of MSME Sector in the country. These schemes/ programmes include Prime Minister's  Employment Generation  Programme  (PMEGP),  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises (CGTMSE), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Entrepreneurship  Skill  Development  Programme  (ESDP),  Procurement  and  Marketing  Support Scheme (PMSS), Raising and Accelerating MSME Performance (RAMP), International Cooperation scheme, Tool Rooms, Technology Centre System Programme (TCSP), National SC/ST Hub (NSSH), MSME Champions, PM Vishwakarma etc.

Further,  Government  has  taken  a  number  of  initiatives  to  support  the  MSME  Sector  for enhanced credit flow and ease of doing business for MSMEs.

- i. Collateral free loan up to a limit of Rs. 500 lakh (w.e.f. 01.04.23) to MSEs with guarantee coverage up to 90 % 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 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  higher  threshold,  based  on  Investment  and Turnover, to widen the ambit of the MSME sector.
- iv. New registration of MSMEs through ''Udyam Registration'' for Ease of Doing Business.
- v. No global tenders for procurement up to Rs. 200 crore
- vi. Inclusion of retail and whole sale trades as MSMEs w.e.f. 02.07.2021.
- vii. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- viii. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
- ix. Integration  of  Udyam  Portal  and  National  Career  Service  (NCS)  of  Ministry  of  Labour  & Employment, as an outcome registered MSMEs are able to search for jobseekers on NCS.
- x. Under Vivad se Vishwas - I, relief by way of refund of 95% of the deducted performance security,  bid  security  and  liquidated  damages  was  provided  to  MSMEs.  Relief  was  also provided to MSMEs debarred for default in execution of contracts.
- xi. Launch  of  Udyam  Assist  Platform  (UAP)  to  bring  the  Informal  Micro  Enterprises  (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
- xii. Launch of 'PM Vishwakarma' Scheme on 17.09.2023 to provide benefits to the traditional artisans and craftspeople engaged in 18 specified trades.

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