Technology Centres for MSME




Technology Centres for MSME

Government has approved ‘Technology Centre Systems Programme (TCSP)’ under which 15 new Technology Centres are to be established in the country, and the existing Technology Centres are to be upgraded. The programme is to be implemented over a period of 6 years. The Programme Steering Committee (PSC) has identified the following 9 locations for establishment of new Technology Centres as on date, where the State Governments have offered land:




The total estimated cost of the programme is Rs. 2200 crore including World Bank Loan assistance of USD 200 million. The establishment of new Technology Centres under World Bank assisted TCSP is under process.  Further, a list of 18 Technology Centres already existing prior to commencement of TCSP is:



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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Modernisation of MSME Units


It is generally believed that a large number of Micro, Small and Medium Enterprises (MSMEs) are using outdated technology because of lack of sufficient finance,  lack of access to modern technology, absence of in-house research & development etc.  The State/UT-wise details regarding the use of outdated technology is not maintained.

For upgradation of technology, this Ministry is implementing Credit Linked Capital Subsidy Scheme (CLCSS). Under CLCSS, 15% upfront subsidy (subject to maximum of Rs.15.00 lakhs) is given to micro and small enterprises for upgradation of technology.   For more transparency and better implementation of CLCSS, Online Application and Tracking System was introduced for submission of applications with effect from  01.10.2013.   The State/UT-wise details of subsidy released and number of units assisted under CLCSS during last 3 years is:



To facilitate technology upgradation and enhance competitiveness of MSMEs, the Ministry, under the flagship scheme of National Manufacturing Competitiveness Programme (NMCP), is implementing schemes such as Lean Manufacturing Competitiveness Scheme, Design Clinic, Technology and Quality Upgradation Programme (TEQUP) and Quality Management Standards (QMS) and Quality Technology Tools (QTT).  The expenditure details of these schemes during last three years and current year are given at Annexure-II.
(Rs.  in crore)



Further, this Ministry is implementing Micro & Small Enterprises Cluster Development Programme (MSE-CDP) for promotion / development of infrastructure to develop infrastructure, improve productivity and competitiveness of MSEs  by way of  preparing Diagnostic Study Report, Soft Intervention, Detailed Project Report, Hard Intervention/ Common Facility Centers (CFCs) and Infrastructure Development.   The State/UT-wise status of funds released under MSE-CDP in the last 3 years and current year is:

(Rs.  in crore)



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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Use of Hazardous Chemicals

The Ministry of MSME is aware of the use of hazardous chemicals in industrial activities of Small Scale Sector. The hazardous waste generated by these units is disposed as per the norms fixed by the State Pollution Control Boards of respective States.

The data of such industries are not maintained centrally in this Ministry as the disposal of hazardous waste is done in conformity with the norms laid by the State Governments.

The Government of India has taken a number of steps to ensure safety and health of the workers through enactment of various statutes in the form of the factories Act 1948 and the Model Factories Rules framed thereunder for the manufacturing sector. For observing safety in industrial plants, Hazardous Chemical Rules 1989 are laid down for Manufacture, Storage and Import and under The Chemical Accidents (Emergency, Planning, Preparedness and Response) Rules 1986, Ministry of Environment, Forest and Climate Change has prescribed various safety and environment standards for chemical plants.

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 Coir Industry

Coir Sector is developing in all coconut growing States, through the process of mechanization and modernization. Coir industry is getting better remuneration as there is zero wastage and all its by products are also used for value addition. The minimum wages are ensured in coir industry as per concerned state government’s norms.    Coir board is implementing Coir Udyami Yojana with 40% subsidy, 5% beneficiary contribution and 55% composite loan with working capital of 25% of project cost upto Rs.10 lakh.  This Scheme helps the traditional industry to gear up towards mechanization by adopting all new technologies developed by State Governments and Central Research Institute.  This will enhance the productivity and also result in better remuneration to the artisans.

Coir Board is also implementing various programme in all the coconut growing States in order to ensure the better productivity through mechanization and to improve quality to get better price for Coir products. These include:

a)                 Science & Technology
b)                 Skill Upgradation and Quality Improvement & Mahila Coir Yojana
c)                 Development of Production Infrastructure (DPI)
d)                 Domestic Market Promotion (DMP)      
e)                 Export Market Promotion (EMP)
f)                  Welfare Measure (Insurance to Coir Workers)
g)                 Trade and Industry Related Functional Support Services (TIRFSS)
h)                 Coir SFURTI Clusters

Coir workers are getting fair rates for their products which is fixed from time to time taking into account fluctuations in the market rate of raw material, wages enhancement etc. Coir Board has introduced a Human Resource Development Programme for the enhancement of entrepreneurship which include different areas such as quality management, salesmanship, marketing networks, consortium approach etc. A Group Personal Accident Insurance Scheme for Coir workers is being implemented by the Coir Board for the welfare of the Coir Workers.
                         
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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Performance of MSME Sector

As per the revised methodology suggested by Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation (MoSPI), on the basis of the data on Gross Domestic Product (GDP) published by CSO, MoSPI and final results of the latest Census (Fourth Census), conducted (with base reference year 2006-07), wherein the data was collected till 2009 and results published in 2011-12, the estimated contribution of MSME sector (including service segment) to GDP during 2010-11, 2011-12 &2012-13 are 36.69%, 37.97% & 37.54% respectively. The estimated contribution of manufacturing MSME output in manufacturing output of the country during 2010-11, 2011-12 & 2012-13 are 38.50%, 37.47 & 37.33% respectively.

Based on the export data maintained by Director General of Commercial Intelligence & Statistics, Ministry of Commerce and the information available with this Ministry about MSME products having significant export, the share of MSME in India’s total export, for the year 2011-12, 2012-13 and 2013-14, has been estimated as 43.00%, 43.00% and 42.40% respectively.

The Government monitors the employment in the MSME sector in the country by conducting All India Census of the sector, periodically. As per the latest Census (Fourth Census), 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 CSO, MoSPI, for activities excluded from Fourth Census, namely wholesale/retail trade, legal, educational & social services, hotel & restaurants, transports and storage & warehousing (except cold storage); the total employment in the sector increased to 805.24 lakh as compared to 249.33 lakh in the Third All India Census of Small Scale Industries, conducted with reference year 2001-02, which is seen growing at 26.42% annually, taking into account additional coverage under the sector.

Government aims to increase the growth and performance of the MSME sector by implementing various schemes / programmes on regular basis. The major schemes / programmes are Prime Minister’s Employment Generation Programme, National Manufacturing Competitiveness Programme, Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Cluster Development Programme, Market Development Assistance Scheme, and Vendor Development Programme for Ancillarisation.

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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Indian Entrepreneurs Delegation

The Ministry of MSME is implementing the International Cooperation (IC) Scheme, which is an ongoing Plan Scheme, under which financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprise associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegations to other countries for exploring new areas of technology infusion/upgradation, facilitating joint ventures, improving market of MSMEs products, foreign collaborations etc.

During the year 2013-14, 56 delegations consisting of 700 entrepreneurs were supported with financial assistance of Rs.4.44 crore under International Cooperation Scheme. The countries which the delegations have visited include Italy, South Africa, China, USA, Australia, UK, Germany, France, Spain, Japan etc.

Marketing Assistance Scheme is also an ongoing Plan Scheme of the Ministry which is being implemented by National Small Industries Corporation Ltd. (NSIC), a Public Sector Enterprise of the Ministry. NSIC acts as a facilitator to promote marketing efforts and enhance the competency of the small enterprises for capturing the new market opportunities by way of organizing/participating in various domestic and international exhibitions/trade fairs, buyer-seller meets, intensive campaigns/seminars and consortia formation.

Under International Cooperation Scheme, the beneficiaries are free to choose an international event of their choice for participation, whereas under Marketing Assistance Scheme the events of importance are identified by NSIC in advance and interested MSMEs could apply for participation. Moreover the focus of International Cooperation Scheme is on international events whereas Marketing Assistance Scheme focuses on domestic events.

NSIC has signed a MoU with Black Business Council (BBC) of South Africa on 19th January, 2015 for Cooperation in the development of Micro & Small Enterprises (MSEs) in South Africa. Black Business Council in South Africa implements programs that assist businesses owned by marginalized groups which also comprise of women and youth. The main areas of cooperation between the two organizations covers conducting feasibility studies; developing policy & institutional framework; exchange of business missions to enhance enterprise to enterprise cooperation, initiate business alliance between enterprises of the two countries; exchange of information on products, services fairs & exhibitions and conducting virtual exhibitions on each other’s web portals; facilitate technology transfers to South Africa; and consultancy to BBC, South Africa for the development of Rapid Incubation Centres, which aims at developing unemployed youth for self-employment.

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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Financial Assistance to MSME

As per the Prime Minister’s Task Force Report on MSMEs (2010), the banks shall have to achieve 20 per cent year-on-year growth in credit to micro and small enterprises (MSEs), 10 per cent annual growth in the number of micro enterprise accounts and also have to allocate 60 per cent of the MSE advances to the micro enterprises. The fulfillment of these provisions is being regularly monitored by the Reserve Bank of India and Government of India. In addition, to facilitate easy flow of Collateral free credit to Micro, Small and Medium Enterprises (MSMEs), the Government has been operating Credit Guarantee Fund Scheme for Micro and Small Enterprises. The Reserve Bank of India (RBI) has also issued guidelines for banks to mandatorily dispense with collateral requirement for loans upto Rs.10.00 lakh to MSEs. The Ministry also implements Prime Minister’s Employment Generation Programme and Credit Linked Capital Subsidy Scheme, wherein margin money and capital subsidy are given to bring down the effective cost of loan. The Government is promoting MSME sector units which are self financed or funded by non-institutional sources through Marketing Development Programme, Cluster Development Programme, Entrepreneurship Development Programmes and National Manufacturing Competiveness Programme etc.

Ministry of Micro, Small and Medium Enterprises does not have a proposal to extend the Joint Liability Mechanism to MSMEs. Joint Liability Mechanism has utility in a set up of Micro Finance Programmes and Ministry of MSME does not currently have a Scheme on Micro Finance.

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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Study on MSME Sector

The Ministry of Micro, Small and Medium Enterprises (MSME) is implementing a number of schemes and programmes aimed towards increasing the share of contribution of MSME manufacturing and service sectors. These Schemes and Programmes are related to credit, infrastructure development and technology upgradation, etc. The major schemes include Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Performance and Credit Rating Scheme, Cluster Development Programme, National Manufacturing Competitiveness Programme and Prime Minister’s Employment Generation Programme.

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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India’s Rank in Solar and Wind Energy Generation

India ranks 4th in the world in terms of power generation. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (IC) in a written reply to a question in the Rajya Sabha today.

The Minister further stated that in terms of wind energy, India ranks 5th and in terms of solar energy, India ranks 11th in the world.


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Setting up of Non-Conventional Power Plants

The Ministry of New and Renewable Energy (MNRE) has set a target of capacity addition of 29,800 MW from various renewable energy sources during 12th Five Year Plan period. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today. The target comprises of 15,000 MW from wind, 10,000 MW from solar, 2,100 MW from small hydro and 2,700 MW from bio-power. During the period 2012-13 to 2014-15 (upto 31.01.2015), an aggregate capacity of 9124 MW of renewable energy projects have been installed in the country.

In reply to another question, Sh. Piyush Goyal stated that the Government is providing a range of fiscal and financial incentives for promotion of renewable energy under various schemes. These include capital and/or interest subsidy, 100 per cent tax holiday on the earnings for 10 years, generation based incentive, accelerated depreciation, financing solar rooftop systems as part of home loan, and concessional excise and custom duties, preferential tariff for power generation from renewables and National Clean Energy Fund (NCEF) support for on-lending to viable renewable energy projects by Indian Renewable Energy Development Agency (IREDA). In addition, foreign direct investment up to 100 per cent under the automatic route is permitted, the Minister added.


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Subsidy on Rooftop Solar Power Plants

The Ministry has proposed to reduce the subsidy on rooftop solar power plants to 15% from the present level of 30% due to decline in price of solar panels, large target set for rooftop solar power plant and limited availability of funds for subsidy. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today.

            The Minister further stated that several steps are being taken by the Government which are as follows:

(i) The Ministry is implementing a ‘Grid Connected Rooftop and Small Solar Power Plants Programme’ that encourages the installation of solar rooftop systems across the country.

(ii) There are provisions of concessional import duty/excise duty exemption, accelerated depreciation and tax holiday for setting up of grid connected rooftop power plants.

(iii) Department of Financial services has instructed to all Public Sector Banks  to encourage home loan/ home improvement loan seekers to install rooftop solar PV plants and include cost of system in their home loan proposals.

(iv)   With constant effort of the Ministry, State Electricity Regulatory Commissions of seventeen States have notified regulatory framework on net-metering/feed-in-tariff to encourage rooftop solar plants.

(v)     Public awareness is being created through electronic & print media, workshops, seminars and capacity building programmes.

(vi)     Subsidy is being provided to make the scheme more attractive and online submission of proposals is being encouraged.

(vii)     Implementation is being done through State Nodal Agencies, Multi Government Agencies, Solar Energy Corporation of India, Distribution Companies etc. to ensure better reach across the country.


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Renewable Energy for Boosting Agriculture

The Ministry of New and Renewable Energy (MNRE) has launched solar pumping programme for irrigation and drinking water under off-grid and decentralized solar applications scheme for 1,00,000 pumps during 2014-15. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today.

The Minister further stated that for this purpose, Rs.400 Crores have been allocated for current Financial Year. So far, 19,501 Solar pumps for irrigation have been installed in the country, state-wise details are given below:- .

            Statewise cumulative installation of Solar Pump systems (31.01.2015)


Sl.No.
States
Pumps Nos.
1
Andhra Pradesh
613
2
Arunachal Pradesh
18
3
Assam
45
4
Bihar
139
5
Chhattisgarh
240
6
Goa
15
7
Gujarat
85
8
Haryana
469
9
Himachal Pradesh
6
10
Jammu & Kashmir
39
11
Karnataka
551
12
Kerala
810
13
Madhya Pradesh
87
14
Maharashtra
239
15
Manipur
40
16
Meghalaya
19
17
Mizoram
37
18
Nagaland
3
19
Orissa
56
20
Punjab
1857
21
Rajasthan
11603
22
Tamil Nadu
829
23
Tripura
151
24
Uttar Pradesh
1348
25
Uttarakhand
26
26
West Bengal
48
27
Andaman & Nicobar
5
28
Chandigarh
12
29
Delhi
90
30
Puducherry
21

Total
19,501
The Minister further stated that farmers are also eligible for financial support for biogas plants, solar lights and solar driers.


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Share of Solar Energy

With an installed capacity of about 3000 MW solar power, the share of solar energy is about 2% in the power sector of the country. Ministry of New and Renewable Energy (MNRE) has proposed to scale up Grid Connected Solar Power targets from 20,000 MW to 1,00,000 MW by 2022. The target includes 40,000 MW roof-top solar photovoltaics, 57,000 MW large solar projects and 3,000 MW already installed. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) in a written reply to a question in the Rajya Sabha today.

The Minister further stated that India already has installed capacity of over 34 GW from various renewable energy sources which is 13% of the total installed capacity of power generation in the country. As per Global Status Report, REN 21, India’s global position in renewable energy capacity installation is 5th in the world. The investment in renewable energy are mainly by private sector. The Government has approved an outlay of Rs. 33,003 crore for Ministry of New and Renewable Energy for promotion of new and renewable energy during 12th Plan period. This includes Rs. 19,113 crore as Budgetary Support and Rs. 13,890 crore from Internal and Extra Budgetary Support (IEBR). MNRE has organized First Global Renewable Energy Investors Promotion Meet (RE-INVEST 2015) during February 15-17, 2015 in New Delhi. As part of RE-INVEST 2015 initiative, 387 companies/firms (both private and public sectors) have submitted Green Energy Commitment Certificates (GEC), aggregating to about 270 GW power generation capacity during the next five years.


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Generation Based Incentive for Wind Power Producers


            The Ministry of New & Renewable Energy has so far released a total of Rs. 957 crore towards Generation Based Incentive (GBI) for wind power producers. This was stated by Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (IC) in a written reply to a question in the Rajya Sabha today.

Year-wise break-up of GBI is given below:-

S.No.
Year
Amount (Rs. in crore)
1.
2010-11
25.00
2.
2011-12
21.18
3.
2012-13
44.46
4.
2013-14
300.00
5.
2014-15
566.00
                              TOTAL                       956.64 

The Minister further stated that wind energy installation after re-introduction of Generation Based Incentive (GBI) and Accelerated Depreciation (AD) benefit has increased in last year.  As compared to installation of 1700 MW in 2012-13 when AD and GBI were not available, the installation during the last year (2013-14) was 2079 MW.

In a reply to another question, the Minister further stated the Government is promoting wind power projects through private sector investment by providing fiscal and promotional incentives including Generation Based Incentive (GBI) for the projects not availing Accelerated Depreciation benefit, under which Rs 0.50 per unit of electricity generated is provided with a ceiling of Rs 1.00 crore per MW. Further, technical support including wind resource assessment and identification of potential sites is provided by the National Institute of Wind Energy (NIWE), Chennai, the Minister added.





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