MSME Minister Inaugurates the Seminar on SMEs “the Growth Drivers of the Economy” and SMEs Excellence Award, 2013

The Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, Shri K. H. Muniyappa inaugurated a Seminar on SMEs and SMEs Excellence Award, 2013 here today. Speaking at the inaugural address the Minister said that worldwide, MSMEs have been regarded as the engine of economic growth and a tool for promoting equitable development. Their contribution to the national economy stands at about 45 per cent share of the manufacturing output and 43 per cent of the total exports of the country, contributing with 8% to India’s GDP. The sector employs an estimated 80 million people spread over 36 million enterprises that produce a diversified product basket. The 12th Plan allocation of funds has been more than doubled from around Rs. 11000 Crore during 11th Plan to around Rs. 24000 Crore in 12th Plan to accelerate the development of MSME sector in India.

Highlighting the flagship programmes of MSME Ministry, the Minister said that under Skill Development Programmes for the entire value chain of manufacturing. During the current year the Ministry will be training at least 6 Lakh persons and in 12th plan the Ministry plans to train around 42 lakh persons through various programmes.

The Minister said that PMEGP is a major credit linked subsidy scheme and a flagship employment generation programme for the unemployed implemented through banks. So far more than 2.22 lakh first generation entrepreneurs have been assisted since 2008-09 thus creating employment for over 20.42 lakh persons. The Ministry has now targeted over 100 new enterprises per district every year under PMEGP in all the 650 districts in the country. During 12th Plan period, the Ministry intends to create around 5 lakh such enterprises under PMEGP creating employment opportunities for around 40 lakh persons in the country.

Addressing about innovation and technology Shri K H Muniyappa said that 18 Tool Rooms and technology development centres under the Ministry are providing both long and short term training to more than 1 lakh youth at present and additional 15 Technology Centres are being set up all over the country with investment of Rs. 2200 crore.

The Ministry of MSME is also implementing National Manufacturing Competitiveness Programme (NMCP) covering entire gamut of manufacturing. National Manufacturing Competitiveness Programme (NMCP) has specific components aimed at enhancing the competitiveness of the enterprise in this sector so as to withstand global and organized competition and to thrive through better technologies and skills, the Minister added.

The Minister said that towards facilitating Technology Upgradation of Micro and Small Enterprises, under the Credit Linked Capital Subsidy Scheme (CLCSS) the Ministry is providing 15% capital subsidy on institutional finance availed by micro and small enterprises for induction of well-established and improved technologies.

To create awareness among small enterprises on the strengths and weaknesses of their existing operations and to enhance their organizational strength “Performance & Credit Rating Scheme”(PCRS) was introduced in 2006. Through this scheme, Enterprises are rated by third party national or international agency. Financial assistance to the extent of 75% of the cost of rating to all the rated units is provided. This rating benefits the units in many ways like establishing their creditworthiness which helps them in accessing credit from the bank quicker and cheaper and thus economizing the cost of credit, the Minister added.

Addressing the availability of the credit to the MSMEs, Shri K H Muniyappa highlighted that under the “Credit Guarantee Scheme”, the Ministry have facilitated collateral free loan to more than 11 lakh Micro and Small Enterprises with the total sanctioned loan amount of Rs. 54,322 crore and is also following up with RBI to achieve 20% year on year growth in the credit to MSME Sector as recommended by Prime Minister’s Task Force’.

The Minister appreciated ASSOCHAM for its continuous efforts to develop growth and development of MSME sector in the country.