Filings to set up MSMEs grow 19% in 2011-12

The micro, small and medium enterprise (MSME) sector reported a growth of 19.06 per cent in 2011-12, in terms of Entrepreneurs’ Memoranda (EMs), filed at the all-India level.

The number of EMs filed in 2011-12 was 282,496, compared to 237,263 in 2010-11 and 213,894 in 2009-10. Growth in 2011-12 was almost twice the rate posted in 2010-11 (10.93 per cent) and 2009-10 (10.78 per cent), according to a written reply by K H Muniyappa, minister of state for MSME, to a question in the Lok Sabha.

The prime minister’s task force had made 85 recommendations, of which 77 were accepted and eight were dropped or delinked by the steering group. Of these 77 recommendations, action on 39 has been completed and action on the remaining 38 is in progress.

The ministry has been implementing various schemes for the development of MSMEs in the areas of credit, infrastructure and technology upgradation. It has also notified the Public Procurement Policy, to improve market access.

The credit linked capital subsidy scheme for technology upgradation of MSMEs provides for a capital subsidy of 15 per cent of value of plant and machinery on loans of up to Rs 1 crore. The scheme is implemented through 11 nodal banks and agencies.