Focus on jobs
: According to ministry data reviewed by Business Standard
, the number of new MSMEs
being registered through the Prime Minister’s Employment Generation Programme (PMEGP) doubled to 73,427 in 2018-19, from 48,398 in 2017-18. Direct employment generated as a result was 570,000, up from 387,000 the year before.
"These are sustainable employment generation, with relatively low level of exposure to business shock and high potential for growth, mostly in the rural areas," the official said.
According to a ministry study, Rs 96,000 is the mean investment currently entering a unit. On average, a unit employs 7.62 people.
Aimed at setting up micro enterprises in the non-farm sector, the PMEGP allows manufacturing units to get a loan up to Rs 25 lakh from the Centre. The Cabinet has since approved a second dose of loan up to Rs 1 crore, on a maximum interest rate of 15 per cent a year, for units paying back in time, senior sources confirmed.
The new rules are under implementation, they added. The ministry is also targeting the setting up of 400 MSME
clusters, in both manufacturing and services, up from 98 last year. According to official statistics, the overall sector comprises nearly 63.39 million units, according to the 73rd round of the National Sample Survey (2015-16). It had created 111 mn jobs (49.8 mn in rural areas and 61.2 mn in urban areas).
Wider credit: Gadkari has told officials to expand the total coverage under the government’s Credit Guarantee Trust for MSEs (CGTMSE) scheme to Rs 50,000 crore this financial year, from Rs 30,168 crore in 2018-19. This is the biggest direct credit guarantee scheme being run by a ministry.
"Our credit guarantee coverage had hovered around Rs 19,000 crore (annually) for three years till 2017-18. Last year, it crossed Rs 30,000 crore. There was a 58 per cent increase in credit guarantee support and 65 per cent in number of beneficiaries," said the official quoted earlier. The number of beneficiaries, currently estimated at 435,000 units, is expected to touch an estimated 600,000 by the end of 2019-20. The ministry has also targeted at least Rs 50,000 crore worth of procurement by the government from MSMEs
This figure was Rs 40,326 crore in 2018-19.
The government had on Friday announced quick clearance of all GST refunds
due to MSMEs.
Finance Minister Nirmala Sitharaman has assured that all pending dues would be cleared within 30 days. In the future, all such dues — estimated to be as high as Rs 7,000 crore by the MSME
ministry — would be cleared within 60 days of application.