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Rs 24,000 crore allocated for MSME sector in 12th Plan

Kanpur, Oct 10 (KNN)  The MSME sector is considered the engine of economic growth, playing a significant role in promoting equitable development.  To further promote the sector, the Ministry has allocated Rs 24,000 crore for the 12thPlan period.
 
“The Ministry’s 12th Plan allocation of funds has been more than doubled from around Rs 11000 crore during 11th Plan to around Rs 24000 crore in 12th Plan to accelerate the development of MSME sector in India,” said Minister of Micro, Small and Medium Enterprises, K H Muniyappa during the valedictory session of the International Trade Fair 2013 that concluded here yesterday. 
 
The Minister also highlighted the importance of infrastructural development.  “Under Cluster Development programme of the Government, infrastructure upgradation with assistance upto Rs 10 crore and common facility centres with assistance upto 12 crore for small and medium industries are being supported,” he said.


Over the last six months under Cluster Development Programme, the Ministry of MSME had approved interventions in over 300 industrial clusters of the country. 
 
The ‘Credit Guarantee Scheme’ under Ministry of MSME provides guarantee cover of upto 85 per cent on collateral-free credit facility subject to a ceiling of Rs 1 crore and till April 2013 more than 11 lakh proposals have been approved under the schemes providing guarantee cover for total sanctioned loan amount of Rs 54,322 crore, Muniyappa added. 
 
He also underlined the Ministry’s initiatives under the National Skill Development Programme.  In 2012-13, the Ministry had imparted skill training to about 6 lakh persons in different trades and activities.
 
In addition, 15 new Tool rooms and Technology Development centres are being set up with World Bank assistance and a sum of Rs 2,200 crore will be provided during the 12th Plan period to the existing 10 Tool Rooms in the country.   

As far as PMEGP is concerned, it is a major credit linked subsidy scheme and a flagship employment generation programme of the Ministry for the unemployed.  So far, more than 2.22 lakh first generation entrepreneurs have been assisted since 2008-09 thus creating employment for over 20.42 lakh persons.
 
The Ministry has now targeted over 100 new enterprises per district every year under PMEGP in all the 650 districts in the country.
 
Further, during 12th Plan period, the Ministry intends to create around 5 lakh such enterprises under PMEGP creating employment opportunities for around 40 lakh persons in the country. For this, in the 12th Plan around Rs 8060 crore as margin money subsidy has been allocated by the Ministry. 

Muniyappa applauded the activities of NSIC which has been organising International level exhibitions in various parts of the country to promote marketing avenues.  “NSIC has been performing an instrumental role for MSMEs in terms of providing raw material support,” he said. 

The International Trade fair 2013 at Kanpur saw over 278 stalls which included leather and leather products, textile and readymade garments, artificial jewellery, handlooms and handicrafts, agro and food processing, IT & ITES, ceramics and plastics.
 
A prominent commercial city of UP, Kanpur is a gateway to trading centres in the state.  With a total population of 62.71 lakh including rural, it has a huge market potential for MSMEs.
 
It is also an industrial hub with a large number of MSMEs.  Its exportable items are leather and leather products, textiles, chemicals, saddlery, spices, plastic parts etc.
 
As on March 2011, the total registered SMEs in Kanpur are 17,444 which have generated employment to 74,980 people.