Sunday, August 14, 2016

India - New MSME Initiatives

11 August 2016
MSME Databank and Finance Facilitation Launched at 14th Meeting of National Board

Online Census of MSMEs and Finance Facilitation Centres Launched

Shri Arun Jaitley, Union Minister of Finance & Corporate Affairs launched two important initiatives of the Ministry of MSME, viz. MSME Databank Portal and Online Finance Facilitation Web Portal on the sidelines of 14th Meeting of the National Board of MSME at Vigyan Bhawan, today. Shri Kalraj Mishra, Union Minister for MSME, Shri Giriraj Singh and Shri Haribhai Parthibhai Chaudhary, Minister of State for MSME were present on the occasion.

Shri Mishra speaking on the occasion said that the Ministry of MSME is making online Census of the MSMEs in the country for the first time by launching a comprehensive databank on This will not only save the efforts and money required for physical Census but will also enable the MSME units and the various Associations to furnish data on click of the button and sitting in their units. The MIS dashboard of the databank will provide real time information on various types of the MSMEs registered on the databank. The databank will eventually will be used for public procurement purposes and the PSUs will make use of the data for procuring from MSMEs. MSME Development (Furnishing of Information) Rules, 2016 have also been notified making it compulsory for MSMEs to give the required information.

Shri Kalraj Mishra also stated that the objective of the databank is to have one-stop source of information of MSMEs of India, including their credit and technology, requirement in terms of raw material and marketing, etc. A decision has also been taken that no grant or subsidy will be given to any MSMEs unless the data is captured on the MSME Databank.

The NSIC, which provides suitable credit support to the various MSME units for purchase of raw material, has started an online Finance Facilitation Centre on To start with, the Finance Facilitation Centres will become operational at Jalandhar, Peenya, Ludhiana, Guwahati, Lucknow and Delhi from today onwards. The portal will allow the MSMEs to apply for loans from the various banks on the NSIC portal itself. NSIC has also signed MoUs with 33 banks, 14 of whom have agreed to associate with online Finance Facilitation Web Portal.

Shri Arun Jaitley, Union Finance Minister appreciated the efforts of Shri Kalraj Minister in taking various initiatives towards ease of doing business. He also appreciated that the main scheme of the Ministry, namely, Prime Ministers Employment Guarantee Programme has also been brought online. He also congratulated Shri Kalraj Mishraji on early implementation of National SC/ST Hub, which was announced in the Union Budget.

Shri Jaitley stated that the Government of the day is committed to Ease of Doing Business and passing of GST will also be a step towards this direction. He also stated that all financial support will be provided to MSMEs to improve their competency in various fields. He welcomed the suggestions of MSME fraternity on the issue.


(Release ID :148729)

3 August 2016

Status of Cottage and Agro-Based Rural Industries

Ministry of Micro, Small and Medium Enterprises (MSME) through Khadi and Village Industries Commission (KVIC) and Coir Board is implementing the following schemes to promote cottage and agro-based rural industries:

·         Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy scheme, for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through KVIC, State Khadi & Village Industries Board (KVIB) and District Industries Centre (DIC).  General category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.  Since inception and up to 2016-17 (upto 30.6.2016), 3.80 lakh micro enterprises have been set up by utilizing margin money amounting to Rs.7735.13 crore.  32.13 lakh jobs have been created from these units.

·         Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was launched in 2005-06 for making Traditional Industries more productive and competitive by organizing the Traditional Industries and artisans into clusters. Upto 31.07.2016, 45 clusters have been granted final approval with a total project cost of Rs.86.12 crore benefiting around 37356 artisans.  9 clusters out of these have already been established till May 2016, benefitting more than 14000 artisans.

·         Coir Udyami Yojana (formerly known as REMOT Scheme) is a credit linked subsidy scheme, which provides assistance for setting up of coir units with a maximum cost of project upto Rs.10 lakhs plus working capital, which shall not exceed 25% of the project cost. The pattern of assistance is 40% as Govt. subsidy, 55% as loan from Banks and 5% as beneficiary contribution. Scheme is open to all individuals, companies, SHGs, NGOs, Institutes, etc. Upto 26.7.2016, 6606 units have been set up by utilizing subsidy amounting to around Rs.88.04 crore.

·         Mahila Coir Yojana (a component of Coir Vikas Yojana-CVY) is an exclusive skill development programme for rural women artisans in coir sector.  Training is provided in spinning of coir yarn/various coir processing activities. The scheme envisages distribution of motorized ratts/motorized traditional ratts and other coir processing equipments at 75% subsidy subject to a maximum amount of Rs.7500/- on successful completion of the training programme.  During the training period, the women artisans are given a stipend amounting to Rs.1000/- per month.  Coir Vikas Yojana also includes Skill Development & Training Programme in coir sector, Domestic & Export Market Promotion and Development of Production Infrastructure.  Rs.21.67 crore has been released under CVY during 2015-16 and Rs.3.375 crore has been released upto 31.7.2016 during 2016-17.

This Press Release is based on information given by the Minister of State in the Ministry of Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply in Rajya Sabha today.


(Release ID :148232)

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