MSME Achievements

Major Achievements of the Ministry of Micro, Small & Medium
Enterprises 2015-16

1. Udyog Aadhaar Memorandum (UAM)

Udyog Aadhaar Memorandum (UAM) scheme was notified in September 2015 under section 8 of the MSME Development Act 2006. This the path breaking step to promote ease-of-doing-business for MSMEs in India. UAM replaces the cumbersome filing of Entrepreneurs Memorandum (EM Part-I &II) with the respective States/UTs. MSME entrepreneurs just need to file online, a simple one page UAM on to instantly get a unique Udyog Aadhaar Number (UAN). The information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM.

The UAM has emerged from the vision of Honourable Prime Minister of India shared with the Nation through “Mann Ki Baat” telecast on 03.10.2014 and the recommendations for Universalization of Registration in the Report of the Kamath Committee on Financial Architecture of MSME sector. Within a short time of three months, more than 1,14,435 UAMs have been filed in the country.

2. Public Procurement Policy

Procurement data from CPCUs was collected : compiled and subsequent communication was made. The procurement of goods and services worth Rs.13,119 crore has been made by CPCUs from MSEs in year 2014-15. 38 CPSUs has made more than 20 % procurement from MSEs against the stipulated target of 20%. For effective implementation of the Public Procurement Policy and Particularly the mandatory provision of 20 percent procurement from 1st April, 2015, “ Public Procurement Facication Cell” has been established at MSME-DIs.

Letters from Hon’ble Minister of MSME to all Central Ministers for effective implementation of the Policy and enhancing procurement from MSEs have been issued. Buyer-Supplier Match making software and web enabled platform MSMECONNECT has been developed.

For developing MSE vendors and facilitating effective linkages between Govt. Procuring Agencies and MSE Suppliers, in the year 2015 (Upto 28th December 2015), 20 National Level Vendor Development. Programmes and 108 State Level Vendor Development Programmes have been organized by the field offices of DC-MSME veiz. MSME Development Institutes.

3. Framework for Revival and Rehabilitation of MSMEs
A Framework for Revival and Rehabilitation of MSMEs was notified in May 2015 under section 9 of the Micro, Small and Medium Enterprises Development Act, 2006. It provides for identification of incipient stress in the MSMEs. All the banks have to constitute a Committee for Distressed MSME enterprises at zonal/district level. The Committee has to prepare a Corrective Action Plan(CAP) for the MSME unit that approaches it.

4. Training for Skill Development and Entrepreneurship

Various institutions, organizations under the Ministry such as KVIC, NSIC,MSME Development Institutes(DIs), Tool Rooms and NIMSME impart entrepreneurship/ Skill development trainings. 2,59,570 persons have completed their trainings in the current financial year till November 2015.

5. Tool Rooms & Technology Centres for MSMEs

In 18 Technology Centres, (Tool Room & Technology Development Centres), 1,16,693 persons have been trained in short term (Period up to 6 months ), medium term (6-12 months ) and long term (more than one year)up to November 2015. The courses are designed for school drop outs to M.Tech. Level. Technology Centres have assisted 23,941 MSMEs for catering to their need of skilled manpower, precision & highly sophisticated components, tools & dyes.

Technology Centres participated in the International Exhibitions at Guangzhou, China, Dusseldorf, Germany, EMO-Milan and also in National exhibitions at New Delhi, Bangalore, to showcase their core competence in the area of Tool engineering and related fields and skill development activities. An MOU has been signed with Samsung electronics India Pvt. Ltd on 13.05.2015 for starting of MSME Samsung Digital Academy for development of Mobile Apps at the 10 locations where MSME Samsung technical Schools are working. 17 nos. Of Management Courses have been developed in order to further enhance the employability of educated youth.

Under Technology Centre System Programme (TCSP), 15 New Technology Centres (Tool Rooms)would be set up and existing Tool Rooms would be upgraded with support of World Bank. The expanded and upgraded network would be supplied by (a) Technology partners to strengthen technical capabilities of MSMEs (b) Clusters Network Managers to establish linkages amongst all key stakeholders of entire ecosystem and (c) National portal for creating a vibrant and interactive platform to meet various needs of MSMEs. Loan agreement between GOI and World Bank has been signed on 10.11.2014 and the loan has become effective w.e.f 19.12.2014. Location in 12 States approved for new Technology Centres. Construction Management Consultant(CMC) engaged. Contract for procurement of 6 Machines awarded.

6. Prime Minister’s Employment Generation Programme(PMEGP)

PMEGP is the flagship programme of the Government offering credit linked subsidy to establish new enterprises for generating continuous and sustainable employment opportunities in Rural and Urban areas of the country. To enable greater coverage of micro enterprises and to ensure inclusive growth, target of 75 projects per district has been fixed for PMEGP. Under PMEGP 25489 enterprises set up and employment opportunity for 183983 youths created. Loans up to Rs.25 lakh with subsidy ranging from 15 to 35% is provided to entrepreneurs under this scheme implemented through KVIC and banks.

Khadi and Village Industries commission(KVIC) has executed an MoU with Monitoring Cell of RSETI (Rural Self Employment training Institutes) to impart EDP training through RSETI/RUDSETI under PMEGP.

7. A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship(ASPIRE)

ASPIRE was launched on 16 March 2015 with an objective to set up a network of technology centers and incubation centres to accelerate entrepreneurship and to promote start-ups for innovation and entrepreneurship in rural and agriculture based industry. The planned outcomes of ASPIRE are setting up Technology Business Incubators (TBI), Livelihood Business Incubators(LBI) and creation of a Fund of funds with SIDBI. 1st LBI set up in April 2015 under ASPIRE, within a month of launching the scheme.

22 LBIs and 2 TBIs have been approved till December 2015 and within the first year of the Scheme, 12 States including NER have been covered. Ministry has released an amount of Rs.70.91 Crore as on 30 December 2015.

8. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

The objectives of the SFURTI is to organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability by way of enhancing the marketability of products, improving the skills of artisans, making provision for common facilities and strengthening the clusters governance systems. The target under SFURTI was to develop 71 clusters during 12th Plan period. 67 clusters have been assigned in-principle-approval out of which 26 have been finally approved. An amount of Rs. 10.76 Crore has already been released.

9. Lean Manufacturing Competitiveness Scheme(LMCS)

The scheme is up scaled with a Total Project cost of Rs. 240.94 cr. (GOI contribution Rs.204.94 cr. for 12th Five year Plan for 500 Mini Clusters. ). In approximately 2200 Units manufacturing interventions have been initiated. Total 585(85 as reserve) Mini Clusters have been identified & selected for Lean intervention across the country for sectors such as Auto Components, General Engineering & Fabrication, Textile, Hosiery & Readymade Garments, Pharmaceuticals, Chemical & allied Products, White Goods, Food Processing, Leather and Footwear etc.

Total 515 awareness programmes have been organized in order to spread awareness of the Lean Concept. Total 4 National Workshops have been organized at Delhi, Mumbai. Kolkata and Chennai. Total 441 Lean Manufacturing Consultant Empanelled with NMIUs (National Monitoring and Implementing Units). Total 263 Mini Clusters/SPV have been formed for Lean Manufacturing (LM) interventions.

10. Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)

CGTMSE has been set up to strengthen credit delivery system and facilitate flow of credit to the MSE sector. The Credit Guarantee under CGTMSE seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender; the CGMSE would make good the loss incurred by the lender up to 85% of the credit facility. Credit guarantee coverage was provided in the year 2015-16(as on 30th November 2015) under CGTMSE guarantee to 280321 proposals of MSEs covering an amount of Rs. 12838.24 crore.

11. Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation

CLCSS aims at facilitating technology upgradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy (limited to maximum Rs.15 lakhs) for purchase of Plant & Machinery. Maximum limit of eligible loan for calculation of subsidy under the scheme is Rs.100 lakhs. More than 1500 well established/ improved technologies under 51 sub-sectors have been approved under the Scheme for availing the subsidy. Under Credit Linked Capital Subsidy Scheme (CLCSS), up to December 2015 3,142 MSEs availed subsidy amounting to Rs. 203.72 crore through nodal banks. Two new banks Corporation Bank and Indian Bank have also been incorporated as nodal banks under CLCSS.

12. Performance and Credit Rating(PCR)Scheme for Micro and Small Enterprises

The PCR scheme envisages to create awareness among micro and small enterprises about the strengths and weakness of their existing operations and to encourage them to obtain a credit rating from one of the established Rating Agencies empanelled under the Scheme. The rating fee payable by the micro and small enterprises is subsidised by the Government to the extent of 75 % of the rating fee up to a maximum of Rs.40000/-. During current financial year 2015-16, 10,886 units have been rated under the scheme.

13. Credit Facilitation of MSMEs

NSIC, a public sector enterprise under this Ministry, has entered into a Memorandum of Understanding (MOU) with various Nationalized and Private Sector Banks for meeting the credit requirements of MSME units. Credit support(funds of non funds based limits) is arranged through syndication with these banks without any cost to MSMEs. During the current financial year 2015-16, Credit Facilitation of Rs. 3291 crore has been made to MSMEs.

14. Raw Material Distribution to MSMEs

NSIC undertakes raw material distribution to MSMEs such as iron, steel, copper, Zinc etc. 9,17,265 MT of during 2014-15. In the current financial year 4,91,175 MT of raw material distribution took place. During 2014-15 five and during the current financial year two new distribution centres were.

15. MSE- Cluster Development Programme:

The Micro and Small Enterprises- Cluster Development Programme(MSE-CDP) is being implemented for holistic and integrated development of micro and small enterprises in clusters through soft interventions. (Such as capacity building, marketing development, export promotion, skill development, technology up gradation, organizing workshops, seminars, training, study visits etc.). Hard Interventions (setting up of common Facility Centres ) and Infrastructure Up gradation (Create/upgrade infrastructural facilities in the new/ existing industrial areas/ clusters of MSEs).

Under the MSE Cluster Development Programme, the achievements during the year 2015-16 (up to December 2015) are 15 Diagnostic Studies, 9 Soft Interventions, 7 Common Facility Centres (CFCs) in various clusters and 6 Infrastructure Projects were approved. 4 Common Facility Centres and 3 Infrastructure Development Projects have been completed under MSE-CDP.

16. Technology and Quality UP-gradation Support to MSMEs (TEQUP):

Under Technology and Quality Up-gradation Support to MSMEs(TEQUP) major achievements are- 161 MSMEs assisted for Energy Efficient Technology (EET), 85 Awareness programme conducted, product Certification Reimbursement for 135 MSMEs. MOU with Six Banks besides SIDBI namely SBI, BOB,SBJJ, Canara Bank, PNB & BOB has been signed for wider outreach of the Scheme. 161 EET cases for Rs.9.98 crores have been disbursed this year, so far.

17. ISO Reimbursement Scheme

ISO Reimbursement Scheme; The application forms for claiming ISO 9000/14001/HACCP certification reimbursement has been simplified with the approval of SS&Dc (MSME) to make the reimbursement procedure simple and applicant friendly. Online application software has been developed by O/o DC (MSME) during the year 2014-15 through NIC. MSME-DIs have been instructed to educate and encourage and applicants to apply online for reimbursement. During the year 2015-16 (up to December, 2015), a total of 454 applications amounting to Rs. 2.52 Cr. have been re-imbursed under the scheme through MSME-DIs.

18. Skill gap analysis

Based upon District Industrial Profile of the districts an extensive activity has been carried out by O/o DC-MSME to assess the skill requirements and possible source for providing skill up-dation/training (soft skill as well as hard skill)District wise, across the Nation (29 states, 7 U.T.& 676 Districts) in consultation with all stake holders. This Exercise will help in a achieving the ambitions target set by Gol for providing skill enhancement training to 30 Crores youth by 2020 and make them employable.

19. Other Schemes Under NMCP :

a) Under the Design Clinic Scheme for MSMEs, till date 396 design awareness seminars have been organized in the clusters, 219 awareness programmes completed, 126 professional design projects have been completed and 89 Student Design Projects were completed from MSME units for design intervention. 76 Professional Design Projects were approved by PMAC. National Institute of Design, Ahmadabad is working as a nodal agency for the Scheme.
b) Under scheme of Support for Entrepreneurial and managerial development of SMEs through Incubators, 47 numbers of new Host Institution/ Business Incubator has been approved 97 number of Ideas approved.
c) Under the scheme of “Building Awareness on Intellectual Property Rights” established 3 IPFC (Intellectual Property Facilitation Centres at Patancheru, Telangana, Lucknow U.P and Bhubaneswar Odisha ). During the current financial year 66 Awareness/ Sensitisation programmes and 14 workshops of 2 days duration have been sanctioned. One short term training programme on IPR in agriculture sector has been organized by IARI, New Delhi.

20. Employment Exchange for Industry :

Employment Exchange for Industries was launched on 15th June 2015 to facilitate match making between prospective job seeker and employer. More than 3.42 lakh Job seekers have been registered on the portal as on 30th December 2015.

21. MSME Expo 2015 :

The MSME Expo-2015 was organized by the O/o Development Commissioner(MSME) at India International Trade Fair, 14th November 27th November at Pragati Maidan, New Delhi. This year MSME Expo was at Hall No.7-ABC. This year theme of the India International Trade Fair was ‘Make in India’. The MSME Expo-2015 was also in line with ‘Make in India’. More than 63 participants from all over India participated in the MSME Expo-2015 exhibiting their products in more than 80 stalls.