Government Policy Regarding Micro, Small and Medium Enterprises

The Government through the Ministry of Micro, Small and Medium Enterprises (MSME) has been implementing a number of schemes with the objective of having a vibrant MSME sector through the promotion of growth and development of micro, small and medium enterprises including khadi, village and coir industries in cooperation with concerned Ministries/Departments, State Governments and other stakeholders by providing support to existing enterprises and encouraging creation of new enterprises.

The major thrust among the MSME segments include providing assistance in the form of margin money subsidy to first generation entrepreneurs to set up new micro enterprises through bank credit under Prime Minister’s Employment Generation Programme (PMEGP), facilitating adequate availability of bank credit through Credit Guarantee Fund scheme, promotion of MSMEs through cluster based approach and adequate skill development. Details of funds allocation and release by the Ministry during 2008-09 and funds allocated for 2009-10 under some specific and relevant schemes are:

DETAILS OF FUNDS ACTUAL RELEASED AGAINST ALLOCTION IN RE 2008-09 ANDALLOCTION IN BE 2009-10

(Rs. crore)

The estimated production, sale and employment of khadi and village industries during last three years are given below, which shows an increasing trend.

In order to promote khadi, the Government through Khadi and Village Industries Commission (KVIC) has introduced three new schemes in the recent past namely, ‘WorkshedScheme for Khadi Artisans’ for providing assistance for construction of worksheds for better work environment and the ‘Scheme for enhancing productivity & competitiveness of KhadiIndustries and Artisans’ to assist 200 khadi institutions to make khadi industry competitive with more market driven and profitable production by replacement of obsolete and old machinery and equipment and ‘Strengthening of Infrastructure of existing Weak KhadiInstitutions and Assistance for Marketing Infrastructure’ which envisages renovation of selected 30 khadi sales outlets and providing assistance for strengthening of infrastructure of existing 100 weak selected khadi institutions.  In addition, the Government through KVIC implements  Interest Subsidy Eligibility Certificate (ISEC) scheme for providing bank loans to khadi and polyvastra units at subsidized rates of interest, Janashree Bima Yojana (JBY) to provide insurance to khadi artisans and weavers, Scheme of Fund for Regeneration of Traditional Industries (SFURTI) for development of clusters in khadi, village industries and coir  sectors, Product Development, Design Intervention & Packaging (PRODIP) for  improved design and packaging of khadi garments, Research & Development and other support services, viz., marketing, export promotion, exhibitions at district, State, zonal & national level, design facility, brand building, etc.This information was given by Shri Dinsha Patel, Minister of State (Independent Charge) for Micro, Small and Medium Enterprises in a written reply to a question in the RajyaSabha.