Here's how much funding Nitin Gadkari has allocated for MSME and small business schemes
The MSME Minister has revealed how much funding has been allocated for schemes like PMEGP, SFURTI, ASPIRE, and others to boost small businesses and MSMEs.
MSMEs form the backbone of the Indian economy and contributes 29 percent of the country’s GDP. MSME Minister Nitin Gadkari has set a target to up the contribution to 50 percent by 2025 as India becomes a $5 trillion economy.
To boost the capabilities of MSMEs and small businesses, the MSME Ministry implements various schemes and programmes.
These schemes and programmes include Prime Minister’s Employment Generation Programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).
A government press release reported Nitin Gadkari replying to a question in the Lok Sabha by revealing how much funds are allocated to these schemes for the financial year 2019-20:
More about the schemes:
ASPIRE is aimed at promoting entrepreneurship culture in India, boosting grassroots economic development at the district level, facilitating innovative business solutions for unmet social needs, and promoting innovation to further strengthen the competitiveness of the MSME sector.
It does this by implementing incubation and commercialisation of Business Ideas Programme through technical/research institutes, including those in the field of agro-based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation.
This is as a cluster-based scheme for development of khadi, village industries, and coir clusters by providing them with improved equipment, common facilities centres, business development services, training, capacity building and design, and marketing support, etc.
The scheme invites applicants from non-government organisations (NGOs), institutions of the Central and State governments and semi-government institutions, field functionaries of State and Central government, Panchayati Raj institutions (PRIs), private sector bodies by forming cluster-specific special purpose vehicles/entities (SPVs), corporates, and corporate scial responsibillity (CSR) foundations with expertise to undertake cluster development
Started in 2008, is a credit-linked subsidy programme which aims to generate self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the State level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.
This scheme facilitates credit to MSME units through collateral-free credit facility (term loan and/or working capital) extended by eligible lending institutions to new and existing micro and small enterprises.
The MSME Ministry and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises in order to implement Credit Guarantee Scheme for Micro and Small Enterprises.
CLCS-TUS scheme aims to boost the competitiveness of MSMEs by integrating ongoing technology upgradation efforts with the Credit Linked Capital Subsidy (CLCS), hand-holding zero defect zero effect manufacturing (ZED), increasing productivity through waste reduction, design intervention, cloud computing, facilitation of intellectual property, and nurturing new ideas.
Special provisions have been made in this scheme to promote entrepreneurship for SC/STs and women-led SMEs, and focusing on hill states such as Jammu and Kashmir, Himachal Pradesh and Uttarakhand, island territories such as Andaman and Nicobar Islands and Lakshadweep, and the aspirational districts.
This scheme aims to encourage manufacturing and service enterprises to increase productivity. It provides incentives to MSMEs to get onboard the GST platform. On a large scale, this in accordance with the formalisation of the economy while reducing the cost of credit.
This two percent interest relief will be calculated on the incremental amount of working capital credit or incremental/new term loan. It will apply on loans disbursed to MSMEs from the date of disbursal/draw or date of notification of this scheme, whichever is later. It will be computed on the outstanding balance from time to time and received/recovered by the lending institution.
The scheme was initiated by the MSME Ministry and aims to support the sustainability and growth of small businesses in clusters by boosting their technological capabilities, market access, skills, access to capital, and more. The programme also aims to build capacity of small businesses for common supportive action through the formation of self help groups, consortia, upgradation of associations, etc.
It also focuses on creating and upgrading infrastructural facilities, flatted factory complexes, and common facility centres (CFCs) for testing, training, effluent treatment, improving production processes, and more.
(Edited by: Palak Agarwal)