National Manufacturing Competitiveness Programme





National Manufacturing Competitiveness Programme

The Government has announced formulation of a National Manufacturing Competitiveness Programme (NMCP) with an aim to support the Micro, Small and Medium Enterprises (MSMEs) in their endeavor to become competitive. The objective of NMCP is to develop global competitiveness among Indian MSMEs. This programme targets at enhancing the entire value chain of the MSME sector through the following components:

      (1)        Lean Manufacturing Competitiveness Scheme for MSMEs; 
      (2)        Promotion of Information & Communication Tools (ICT) in MSME sector;
      (3)        Technology and Quality Up gradation Support to MSMEs;
      (4)        Design Clinics scheme for MSMEs;
(5)        Enabling Manufacturing Sector to be Competitive through Quality  Management   Standards (QMS) and Quality Technology Tools (QTT);
      (6)        Marketing Assistance and Technology Up gradation Scheme for MSMEs;
      (7)        National campaign for building awareness on Intellectual Property Rights (IPR);
            (8)        Support for Entrepreneurial and Managerial Development of SMEs through         Incubators.    
      (9)        Bar Code under Market Development Assistance (MDA) scheme.
The NMCP programme is still under implementation. Total expenditure of about    Rs. 122.00 crore has been made so far, since inception of the programme. 
The various programmes of this Ministry in general and NMCP programme in particular are expected to enhance competitiveness of Indian MSMEs to face stiff competition from other countries including China and other neighbouring countries.
As per the data compiled by the Reserve Bank of India (RBI) from the scheduled commercial banks, the state-wise position in respect of sick
MSME in the country at the end of  March, 2011, March, 2012, March, 2013 and March, 2014 (latest available) is:
State-wise  Sick Small Enterprises    
States / Union Territories
TOTAL SICK UNITS


March 2011
March 2012
March 2013
March 2014

UNITS




A.N. Islands
8
0
68
98

Andhra Pradesh
0
0
12231
41845

Arunachal Pradesh
109
0
74
157

Assam
506
3
1292
5325

Bihar
4872
17
5652
16146

Jharkhand
1476
78
5017
8211

Manipur
23
1
148
353

Meghalaya
276
0
69
158

Mizoram
7
0
159
48

Nagaland
23
0
147
453

Orissa
4967
22
11751
18267

Sikkim
21
0
63
197

Tripura
13
0
16
2166

West Bengal
7904
113
11243
22838

Chandigarh
147
0
624
1324

Delhi
4250
76
2702
4430

Haryana
344
47
3327
9280

Himachal Pradesh
575
5
1934
2224

J & K
1631
12
1321
2186

Punjab
1478
267
3715
6550

Rajasthan
1743
15
20336
27665

Uttar Pradesh
4674
105
19049
63268

Uttaranchal
362
3
4568
15780

Chattisgarh
1052
7
2988
4806

D & N Haveli
0
0
22
87

Daman & Diu
0
0
25
12

Goa
155
13
194
1352

Gujarat
4321
107
20452
48055

Madhya Pradesh
8124
44
11254
17642

Maharashtra
8815
175
32200
43000

Andhra Pradesh
11305
33
12231
41845

Karnataka
7034
50
16
34131

Kerala
5363
34
15627
21786

Pondicherry
1457
0
188
1904

Tamil Nadu
7106
495
23373
43743


Rehabilitation package for the revival of viable sick MSEs is provided by primary lending institutions (PLIs), including commercial banks, which provide credit to the MSEs. The rehabilitation package is determined as per the guidelines issued by RBI from time to time.  The latest guidelines were issued by RBI in November, 2012, based on the recommendations of the Committee set up by Ministry of MSME to examine the definition of sickness and the procedure for assessing the viability of sick MSEs. The guidelines, inter alia, provide for:



 (i)    Early detection of sickness;

(ii)   A viability study to form the basis of rehabilitation package to potentially viable sick MSEs; and

(iii)  A non-discretionary one time settlement scheme for the MSE sector.  
This information was given by the Union Minister for Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Lok Sabha here today.
***
MSME in North-East Region
Information on the number of Micro, Small and Medium Enterprises (MSMEs) in the sector is collected by conducting All India Census of the sector periodically. The latest Census (Fourth Census) was conducted (with base reference year 2006-07), wherein the data was collected till 2009 and results published in 2011-12, as well as data extracted from Economic Census 2005 conducted by Central Statistics Office (CSO), the Ministry of Statistics and Programme Implementation (MoSPI), for activities excluded from Fourth Census, namely wholesale/retail trade, legal, educational & social services, hotel & restaurants, transports and storage & warehousing (except cold storage). As per this census the numbers of MSMEs in the North- East Region, including Sikkim in the MSME Sector are:
Sl.
No.
State
Number of MSME (in lakh)
1
SIKKIM                  
0.17
2
ARUNACHAL PRADESH       
0.41
3
NAGALAND                
0.39
4
MANIPUR                 
0.91
5
MIZORAM                 
0.29
6
TRIPURA                 
0.98
7
MEGHALAYA               
0.88
8
ASSAM                   
6.62
Total
10.64

The Government facilitates the promotion and development of MSMEs by improving access to finance and supporting technology through implementation of various schemes/programmes viz. Credit Guarantee Scheme, Performance and Credit Rating Scheme, Credit Linked Capital Subsidy Scheme, Prime Minister’s Employment Generation Programme and National Manufacturing Competitiveness Programme etc.
The Government is facilitating Skill Development in North- East Region through its various institutions viz. Entrepreneurship Development Institute of India at Guwahati, MSME-Development Institutes at Guwahati, Agartala, Gangtok and Imphal and MSME-Tool Room ( Tool Room & Training Centre) at Guwahati.
This information was given by the Union Minister for Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Lok Sabha here today.
******
Mandatory Procurement from MSMEs
The Government has issued directions under the Public Procurement Policy for Micro and Small Enterprise (MSEs) Order 2012, to all the Central Public Sector Undertakings (CPSUs), Central Government Ministries and Departments for an overall procurement of minimum of 20 per cent of products and services from Micro and Small Enterprises (MSEs) units.  This 20 per cent procurement from MSEs will be mandatory with effect from 1st April, 2015.
The brief details of some of the efforts made by the Government to enhance procurement from MSEs are as follows:-
(i)                 The communications are being issued from Ministry of MSME to all Central Ministries/Departments/CPSUs to comply with all the provisions of the Public Procurement Policy for MSE, Order 2012.
(ii)               One to One interaction meetings with CPSUs for enhancing procurement from  MSEs by CPSUs  are organized.
(iii)                 Stakeholder consultation workshops has been conducted for the awareness and better understanding of the policy.
(iv)                 Vendor Development programme are organized by Field Institutes of this Ministry   spread all over India, as well as by CPSUs for developing of MSE Vendors.
(v)                    For facilitating Match making of buyers and suppliers, a software based upon ITC HS Code has been developed which is a copyright of this Ministry.
(vi)                 Grievance Cell has been opened in this Ministry for sorting out grievances/problems related to   procurement.
(vii)               Review Committee has been constituted    to review and monitor the achievements made under the policy.
This information was given by the Union Minister for Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Lok Sabha here today.
******
Insurance for Khadi Artisans and Workers
The Ministry of Micro, Small and Medium Enterprises has been implementing a group insurance scheme namely Khadi Karigar Janashree Bima Yojana (JBY) since 2003-04 to provide insurance cover to khadi artisans. The Scheme was formulated by Khadi and Village Industries Commission (KVIC) in association with the Life Insurance Corporation of India (LIC) with annual premium of Rs.100/- per beneficiary which is shared in the ratio of Rs. 50/- by the Central Government from Social Security Fund, Rs. 25/- by the Khadi Institution and Rs. 12.50/- each by Khadi Artisan and KVIC. The scheme is available for artisans in the age group between 18 years to 59 years. The compensation available under the Scheme are as under:       
In case of natural death                                                              :          Rs. 30,000/-
In case of accidental death                                                         :          Rs. 75,000/-
In case of full permanent disability due to accident                  :          Rs. 75,000/-
In case of part permanent disability due to accident                 :          Rs. 37,500/-
As an ‘add-on’ benefit without any additional premium, up to two school-going children of insured artisans studying in Class Nine to Twelve are eligible for a scholarship of  Rs. 100/- each per month.
The number of artisans covered under the scheme and fund allocated by KVIC during last three years and current year is given below:
Year
No. of artisans covered
Allocation*
(Rs.in lakh)
2011-12
2,74,276
1.00
2012-13
2,80,743
7.00
2013-14
2,84,056
4.00
2014-15 
  3,00,000 
90.00

*The scheme has the provision for Experience Rating Analysis (ERA) and lower allocations were made in the last 3 years as LIC of India adjusted the premium from the saving of earlier premium paid.
The number of artisans covered under the scheme and the number of beneficiaries who have been paid the insured amount during the last three years is given below:
Year
No. of artisans covered
Claims for Scholarship

Claims for natural death
Claims for accident
death
No.
Amount
(Rs. in lakh)
Nos
Amount
(Rs. in lakh)
Nos
Amount
(Rs. in lakh)
2011-12
2,74,276
17405
196.50
225
67.95
2
1.50
2012-13
2,80,743
14232
160,80
178
53.40
2
1.50
2013-14
2,84,056
6639
103.90
97
29.10
1
0.75

KVIC has conducted awareness Camps for the khadi artisans and khadi institutions to promote Jana Shree Bima Yojana.   KVIC has also appointed Nodal Officers in their State/ Divisional Offices to monitor the implementation of the scheme and ensure receipt of benefits by eligible artisans.
This information was given by the Union Minister for Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Lok Sabha here today.
******

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