To assess the capabilities and credit worthiness of the industries in the sector, MSME Ministry launched performance and credit rating scheme, Lok Sabha was informed today. Minister for Micro, Small and Medium Enterprises Kalraj Mishra said during Question Hour.
The Ministry of MSME through National Small Industry Corporation Limited is implementing Performance and Credit Rating Scheme for MSMEs to provide a trusted third party opinion on their capabilities and creditworthiness so as to create awareness about the strengths and weaknesses of their existing operations.
Mishra said recently, a new scheme of Financial Support to MSMEs in Zero Defect Zero Effect Certification has been approved in which the MSMEs will be assessed on ZED Maturity Model on 50 parameters which will strengthen or facilitate the Make in India initiative.
The Minister said in order to ensure quality production, the government encouraged MSMEs by organising awareness programmes, providing financial assistance for product certification as per national and international standards.
Under the Financial Support to MSMEs in ZED certification scheme, the MSMEs will be assessed on a Zero Defect Zero Effect maturity model which shall rate MSMEs in five levels, he said.
A few months back, according to a report MSME’s was all set to receive incremental business worth around Rs 2 trillion out of the Rs 3 trillion allocated to the sector in the Budget. The Rs 3,02,885 crore allocated towards the MSME sector can lead to a direct benefit of Rs 2,00,000 crore to the sector, according to domestic rating agency Smera Ratings. These benefits are roughly 10.5 per cent of the total expenditure of the Budget estimate for 2016-17, the agency said in a note.
It also added that, the Rs 60-trillion contributed by MSME covers a whopping 37.5 per cent of GDP and employs the most number of people. This allocation is divided between consumption and investment categories. A sum of Rs 95,638 crore will go into consumption and Rs 2,07,247 crore to investment, it said.
Want to make your startup journey smooth? YS Education brings a comprehensive Funding and Startup Course. Learn from India's top investors and entrepreneurs. Click here to know more.