Monday, August 18, 2014: The government has announced an allocation of Rs 241,240 million to give a boost to the country’s micro, small and medium enterprises sector. During the 12th Five-Year Plan Period (2012-17) a huge boost has been planned for this sector, after an increase of 133.53 per cent over the Eleventh Plan, has been recorded.
Union MSME Minister Kalraj Mishra said in a written reply to the Lok Sabha, “In order to boost the growth of the micro, small and medium enterprises (MSMEs) sector during the Twelfth Five Year Plan an outlay of Rs 24,124 crore has been allocated for Ministry of MSME. This XIIth Plan allocation represents an increase of 133.53 per cent over the XIth Five Year Plan allocation of Rs 10,330 crore.” The Fourth All India Census of MSMEs and Economic Census (2005) shows that the number of enterprises who are operating in the country and also involves capital investment are 36.1 million. The investment figures are around Rs 6,89,954.88.
As on 31 March, 2014, there are 2,887 operational specialised SME brances of public sector banks including those which have been operational in existing Micro Small Enterprises (MSE), providing credit facilitation services to MSEs. Additionally, Small Industries Development Bank of India (SIDBI) has also set up Credit Advisory Centres (CACs) and they have done the same in partnership with cluster level industry associations. A number of services will be provided to MSMEs at the cluster level, including guiding new/existing entrepreneurs. But schemes should be available for commercial banks and government subsidies/benefits. Till date, there are 50 CACs at various centres across India which are functioning in collaboration with industry associations, with 306 clusters.
The government is aiming to promote MSMEs in the country and in relation to the same various schemes/programmes are getting implemented too, including credit, technology upgrdataion and skill development. Some implemented projects are Prime Minister’s Employment Generation Programme, Credit Guarantee Scheme, Performance and Credit Rating Scheme, Credit Linked Capital Subsidy Scheme, National Manufacturing Competitiveness Programme (NMCP) and Skill Development Programme to provide skilled manpower for MSMEs.