MSMEs provide employment to around 8.05 crore people

New Delhi, Dec 10 (KNN)  Micro, small and medium enterprises play a major role in employment generation in the country, having provided employment to around 8.05 crore people, according to the latest census.
 
On its part, the MSME Ministry has in place a credit-linked subsidy programme named Prime Minister’s Employment Generation Programme (PMEGP) since 2008-09 with Khadi and Village Industries Commission (KVIC) as nodal agency at the national level for generating employment in the country by setting up of micro-enterprises in the non-farm sector, said MSME Minister K H Muniyappa in the Rajya Sabha today.
 
He highlighted the benefits under each scheme.  “Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25 per cent of the project cost in rural areas and 15 per cent in urban areas.  For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to North Eastern Region, hill and border areas, etc.,  the margin money subsidy is 35 per cent in rural areas and 25 per cent in urban area.  While the maximum cost of project is Rs. 25 lakh in the manufacturing sector, it is Rs. 10 lakh in the service sector,” he said.  
 
Meanwhile, the Ministry has also been involved in various R&D upgradation activities to benefit the MSME sector.  These include the Credit Linked Capital Subsidy Scheme (CLCSS) and National Manufacturing Competitiveness Programme (NMCP) for supporting research and technology upgradation activities.  Further, MSME Tool Rooms and MSME Technology Development Centres of the Ministry also provide technological support and services to MSMEs.
 
The government, according to Muniyappa also has a purchase policy in place for MSMEs. 

“Public Procurement Policy for Micro and Small Enterprises Order, 2012 mandates that 20 per cent procurement of their total annual procurement in value shall be made by all the Central Ministries/ Departments/CPSUs from the goods produced and services rendered by Micro and Small Enterprises (MSEs) and 4 per cent out of this 20 per cent procurement have been earmarked from MSEs owned by Scheduled Castes/Scheduled Tribes,” he stated.
 
The Government monitors the number of micro, small and medium enterprises (MSMEs) in the registered sector by conducting All India Census of the sector periodically.
 
As per the latest census (Fourth Census) conducted (with base reference year 2006-07), wherein the data was collected till 2009 and results published in 2011-12, the number of working MSMEs, in Registered Sector is 15.64 lakh out of which 1.64 lakh MSMEs are owned by SC/ST entrepreneurs.
 
Further, the estimated contribution of manufacturing sector Micro, Small and Medium Enterprises (MSME) to GDP during 2010-11 is 7.42 per cent. The estimated contribution of manufacturing sector MSME in manufacturing output of the country during 2010-11 is 38.48 per cent, the Minister said.