Over Rs 24,000 cr allocation to boost MSME sector in 12th Plan

The government has allocated Rs 24,124 crore to boost the country's micro, small and medium enterprises sector during the Twelfth Five-Year Plan period (2012-17), an increase of 133.53 per cent over the Eleventh Plan, Parliament was today informed.
"In order to boost the growth of the micro, small and medium enterprises (MSMEs) sector during the Twelfth Five Year Plan an outlay of Rs 24,124 crore has been allocated for Ministry of MSME. This XIIth Plan allocation represents an increase of 133.53 per cent over the XIth Five Year Plan allocation of Rs 10,330 crore," Union MSME Minister Kalraj Mishra said in a written reply in the Lok Sabha.

As per Fourth All India Census of MSMEs and Economic Census (2005), the estimated number of enterprises operating in the country and capital investment involved therein, are 3.61 crore and Rs 6,89,954.88 crore respectively.
There are 2,887 specialised SME branches of public sector banks operational as on March 31, 2014, including those operational in existing Micro Small Enterprises (MSE) clusters, which provide credit facilitation services to MSEs.
In addition, Small Industries Development Bank of India (SIDBI) has set up Credit Advisory Centres (CACs) in partnership with cluster level industry associations. This will provide a number of services to MSMEs at the cluster level which includes guiding new/existing entrepreneurs regarding availability of schemes of commercial banks, government subsidies/benefits, provide borrowers with debt counselling, answering queries raised by banks etc.

So far, 50 CACs have been set up at various centres all over India in partnership with Industry Associations covering 306 clusters.
To promote MSMEs in the country, the government is implementing various schemes/programmes relating to credit, technology upgradation and skill development, amongst others.
Some of the major schemes/programmes being implemented are Prime Minister's Employment Generation Programme; Credit Guarantee Scheme; Performance and Credit Rating Scheme; Credit Linked Capital Subsidy Scheme; National Manufacturing Competitiveness Programme (NMCP); Skill Development Programme to provide skilled manpower for MSMEs; among others.