What is the News?
The Ministry of Micro, Small and Medium Enterprises (MSME) has undertaken several important initiatives during the year 2021.
Some of the important initiatives are
Credit Guarantee Scheme for Subordinated Debt(CGSSD) for MSMEs
Self Reliant India(SRI) Fund: It is a Category-II Alternative Investment Fund registered with SEBI with Mother Fund / Daughter Fund structure. The fund is aimed at providing growth capital to the deserving and eligible units of the MSME sector. The total size of the fund is Rs. 50,000 Crore where Rs.10,000 Crore will come from the Government of India and Rs.40,000 Crore through Private Equity / Venture Capital funds.
Udyam Registration (UR) Portal: It provides a faceless, fully online, paperless and transparent MSME registration process fully integrated with Income Tax and GSTIN systems.
Inclusion of Retail & Wholesale Trade and Urban Street Vendors in MSME Category: Government has included retail, wholesale trades and urban Street Vendors as MSMEs. They are allowed to be registered on Udyam Registration Portal. Benefits to them are restricted to Priority Sector Lending only.
MSME Champions Scheme: The scheme aims to pick up clusters and enterprises and modernize their processes, reduce wastages, sharpen business competitiveness and facilitate their National and Global reach and excellence. There are 3 components under the scheme:
1. MSME-Sustainable (ZED): It aims to create awareness amongst MSMEs about Zero Defect Zero Effect(ZED) practices and motivate and incentivize them for ZED Certification.
2. MSME-Competitive (LEAN): It is aimed at enhancing the competitiveness of MSME Sectors through the implementation of Lean Tools and Techniques.
3. MSME-Innovative(for Incubation, IPR, Design and Digital MSME): It is a new concept for MSMEs with a combination of innovation in incubation, design intervention and protecting IPR in a single-mode approach.
Project on “Promoting Market Transformation for Energy Efficiency in MSMEs”: The project has been launched by the Ministry of MSME, United Nations Industrial Development Organization(UNIDO), Global Environment Fund (GEF). The project intends to develop and promote a market environment for MSMEs by introducing energy-efficient technologies and enhancing the use of identified technologies in the clusters. The programme focuses on ten clusters from seven sectors (Pulp & Paper, Textile, Food Processing, Pharma, Chemical & Dye, Foundry & Forging, Iron & Steel). The key executing partner for the project is Energy Efficiency Services Ltd (EESL).
Prime Minister’s Employment Generation Programme (PMEGP)
Credit Guarantee Fund Trust for Micro and Small Enterprises(CGTMSE)
Cluster Development Programme: The scheme aims to form clusters of enterprises having similar activities. A cluster would be defined as a group of enterprises situated within an identifiable, contiguous and practical area that produce similar products or render similar services.
Technology Center Systems Programme (TCSP): It was launched to create an innovative ecosystem for the MSMEs in the country.
Entrepreneurship and Skill Development Programme (ESDP): The objective of the programme is to motivate youth representing different sections of the society including SC/ST/Women, differently-abled, Ex-servicemen and BPL persons to consider self-employment or entrepreneurship as one of the career options.
Coir Vikas Yojana: The scheme facilitates the development of domestic and export markets, skill development and training, empowerment of women, employment/entrepreneurship creation and development, enhanced raw material utilization, trade-related services, welfare activities for the coir workers.
International Cooperation (IC) Scheme
Source: This post is based on the article “Year End Review- 2021 Ministry of Micro, Small & Medium Enterprises” published in PIB on 11th January 2022.