'Development of MSMEs prime responsibility of States/ UTs'

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SME Times News Bureau | 07 Aug, 2014
Development of Micro, Small and Medium Enterprises (MSMEs) is the prime responsibility of States / Union Territories (UT), Union Minister of Micro, Small and Medium Enterprises, Kalraj Mishra informed in a written reply to a question in Lok Sabha in New Delhi on Wednesday.

"The responsibility of development and promotion of Micro, Small and Medium Enterprises (MSMEs) is primarily of States/ Union Territories," said Mishra.

"The Central Government however supports and supplements the efforts of State Governments and Union Territories in this regard," he added.

Ministry of MSME is implementing Prime Minister's Employment Generation Programme (PMEGP) for encouraging setting of Micro Enterprises under which General category beneficiaries can avail of margin money subsidy of 25 percent of the project cost in rural areas and 15 percent in urban areas and Scheduled Caste/Scheduled Tribe /Women beneficiaries can avail the margin money subsidy of 35 percent of the project cost in rural areas and 25percent in urban areas.

Target under PMEGP is allocated state-wise in terms of Margin Money Subsidy. During XI Plan, Margin Money subsidy of Rs. 3131.65 crore was released under PMEGP against which an utilization of Rs. 3067.69 crore has been achieved, providing employment to an estimated 16.06 lakh persons through setting up of 1.64 lakh projects.

Ministry also include variety of training and skill development programmes of short term as well as long term duration conducted through MSME-Development Institutes (MSME-DIs), Branch MSME-Development Institutes (Br MSME-DIs), Tools Rooms (TRs), Product-cum-Process Development Centers (PPDCs), Central Footwear Training Institutes (CFTIs), MSME Training Institutes (MSME-TIs), National Level Entrepreneurship Development Institutes (EDIs) i.e., National Institute for Entrepreneurship and Small Business Development (NIESBUD), Indian Institute of Entrepreneurship (IIE) and National Institute for Micro, Small and Medium Enterprises (NI-MSME) and Training Centers of the National Small Industries Corporation (NSIC).

Under the "Assistance to Training Institutions (ATI) Scheme", financial assistance is also provided for conducting Entrepreneurship Development Programmes (EDPs) and Entrepreneurship-cum-Skill Development Programmes (ESDPs) to the National level EDIs and their Partner Institutions (PIs) as well as NSIC and Central Tool Room.

In addition, the Union Government is giving concessions/incentives to the investors under the Credit Guarantee Fund Scheme and Credit Linked Capital Subsidy Scheme (CLCSS).

The Credit Guarantee Fund Scheme provides collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs. 100 lakh per borrowing unit. CLCSS provides 15 percent capital subsidy on eligible institutional loan up to Rs.100 lakh, informed Mishra.