Promotion of Cottage Industries



Promotion of Cottage Industries



The Ministry of Micro, Small and Medium Enterprises (MSME) supplements the efforts of State Governments by implementing a number of schemes for the development of khadi, village industries and coir through Khadi and Village Industries commission(KVIC) and Coir Board. These include a major credit-linked subsidy programme named Prime Minister’s Employment Generation Programme (PMEGP) being implemented through Banks since 2008-09 with KVIC as nodal agency at the national level for generating employment in the Country including in Uttar Pradesh by setting up of micro-enterprises in the non-farm sector. State-wise release of margin money subsidy which is treated as target, as also the achievements in term of the margin money subsidy utilized, the corresponding number of projects assisted and estimated employment generated during the last two years is as blow:

2012-13


 #  including un-utilized  balance funds of previous year.
        * including Daman & Diu.                                                                      
       ** including Dadra & Nagar Haveli
2013-14



#  including un-utilized  balance funds of previous year
         * including Daman & Diu                                                                      
         ** including Dadra & Nagar Haveli

The Ministry of MSME through KVIC and the Coir Board has also been implementing a cluster-based scheme named Scheme of Fund for Regeneration of Traditional Industries (SFURTI), under which khadi, village industries and coir clusters have been taken up for development by providing them with improved equipments, common facilities centres, business development services, training, capacity building and design and marketing support, etc. 101 clusters (29 Khadi, 47 Village Industries and 25 Coir clusters) have been developed under this scheme. SFURTI Scheme has been revamped in XII plan and 71 clusters with an outlay of Rs. 149.44 crore are proposed to be developed in the Ist phase.

Under PMEGP, the target to set up 1.03 lakh micro enterprises with a margin money subsidy of Rs 1380 crore creating employment opportunities to an estimated 8.25 lakh persons has been fixed in 2014-15 for the country including backward regions of Uttar Pradesh. State-wise target for 2014-15 under PMEGP is:



  * including Daman & Diu.          
                     ** including Dadra & Nagar Haveli
This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Lok Sabha here today.


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Make in India Policy for MSME Sector

The Make in India Policy aims to facilitate investment, foster innovation, enhance skill development and build an Eco-system for manufacturing infrastructure in the country. Ministry of Micro, Small and Medium Enterprises has been implementing a number of programmes and schemes in the areas of finance, technology, infrastructure, marketing and skill development to facilitate aims of the Make in India Policy. The Ministry is proposing to rise to the challenge through action plans directed at enhancement of the provision of collateral free credit through creation of state verticals for extending guarantees to the entrepreneurs of particular state with financial support from state governments, creation of similar verticals for women entrepreneurs and youth among SC/ ST and NE Regions. Augmentation of 18 existing Technology Centres (TCs) is to be supported by cluster network Mangers and a National Portal. Efforts are on to bridge the gap between Research Institutions and Industries through signing of MOUs with IISc and CSIR. Defence offset policy is being leveraged for creating ecosystem of defence manufacturing by MSMEs. A comprehensive skill mapping is also proposed as a first step towards alleviating the existing skill deficit. The funds are allocated to the Schemes as a whole, and it is difficult to delineate the amount earmarked for the ‘Make in India’ component. Moreover, all the Schemes of the Ministry are Central Sector Schemes and specific data on allocation to States/UTs are not maintained.

The Ministry of Micro, Small and Medium Enterprises has been receiving numerous comments and suggestions at various fora, but none of the comments and suggestions related to ‘Make in India’ has taken the shape of any concrete proposal.

This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Lok Sabha here today.

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Grading System for MSME Sector

The Ministry of Micro, Small and Medium Enterprises is implementing a Plan Scheme titled “Performance and Credit Rating Scheme” with the objective to provide a trusted third party opinion on the capabilities and creditworthiness of the MSEs and to create awareness amongst them about the strengths and weakness of their existing operations. Rating under the scheme is being carried out through empanelled rating agencies i.e. CRISIL, CARE, ONICRA, SMERA, ICRA, Brickwork Ratings and India Ratings. Under this Scheme, rating fee payable by the micro & small enterprises is subsidized for the first year only and that is subject to maximum of 75% of the fee or Rs. 40000/-, whichever is less.

This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Lok Sabha here today.

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Promotion of Cottage Industries Promotion of Cottage Industries Reviewed by Ajit Kumar on 11:33 PM Rating: 5

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