Events in News: The Prime Minister participated in the ‘Udyami Bharat’ programme and launched key initiatives like ‘Raising and Accelerating MSME Performance’ (RAMP) scheme, ‘Capacity Building of First-Time MSME Exporters’ (CBFTE) scheme and new features of the ‘Prime Minister’s Employment Generation Programme’ (PMEGP) to ramp up the MSME sector.
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PM participates in ‘Udyami Bharat’ programme
- The Prime Minister participated in the ‘Udyami Bharat’ programme and launched key initiatives like ‘Raising and Accelerating MSME Performance’ (RAMP) scheme, ‘Capacity Building of First-Time MSME Exporters’ (CBFTE) scheme and new features of the ‘Prime Minister’s Employment Generation Programme’ (PMEGP) to ramp up the MSME sector.
Highlights from Event
- He announced results of the MSME Idea Hackathon, 2022 and issued Digital Equity Certificates to 75 MSMEs in the Self Reliant India (SRI) Fund.
- The Prime Minister said that Pradhanmantri Rozgar Srijan Karykram was revamped after 2014 as it was not able to achieve its goals in the period between 2008-2012. Since 2014, more than 40 lakh jobs have been created under this programme.
- He said that MSME is a major medium for achieving the pledges of ‘Amrit Kaal’ of India’s independence.
- The Prime Minister pointed out that in GeM, MSME has got a very strong platform to provide goods and services to the government.
- The Prime Minister noted that now for the first time, the turnover of Khadi and Village Industries has crossed Rs 1 lakh crore.
- Mudra Yojana, he said, has a huge role to play in making entrepreneurship easy for every Indian.
- This scheme of bank loans without guarantee has created a large section of women entrepreneurs, Dalit, backward, tribal entrepreneurs in the country. So far, about Rs 19 lakh crore has been given as a loan under this scheme.
- Among the borrowers, there are about 7 crore such entrepreneurs, who have started an enterprise for the first time.
- He also noted that on Udyam Portal too, more than 18 percent of those registered are women entrepreneurs.
Raising and Accelerating MSME Performance (RAMP) scheme:
- The scheme aims to scale up the implementation capacity and coverage of MSMEs in the states, with impact enhancement of existing MSME schemes.
- It has an initial outlay of Rs.6000 crores.
- It will complement the Aatmanirbhar Bharat Abhiyan by fostering innovation, encouraging ideation, incubating new business and entrepreneurship by developing quality standards, improving practices and processes, enhancing market access, deploying technological tools and Industry 4.0 to make MSMEs competitive and self-reliant.
Capacity Building of First-Time MSME Exporters (CBFTE) scheme
- The scheme aims to encourage MSMEs to offer products and services of international standards for the global market.
- This is expected to enhance the participation of Indian MSMEs in the global value chain and help them realise their export potential.
New Features of the PMEGP Scheme:
- An increase in the maximum project cost to Rs 50 lakhs (from Rs 25 lakhs) for the manufacturing sector.
- An increase in the maximum project cost to 20 lakhs (from Rs 10 lakhs) in the service sector.
- Inclusion of applicants from Aspirational districts & Transgenders in the Special Category applicants for availing higher subsidies.
- Handholding support for applicants/entrepreneurs through the engagement of banking, technical & marketing experts.
Prime Minister’s Employment Generation Programme (PMEGP)
- Continuation of the on-going Plan Scheme - Prime Minister’s Employment Generation Programme (PMEGP), over the 15th Finance Commission cycle for five years from 2021-22 to 2025-26 with an outlay of Rs.13554.42 Crore
- Ministry of MSME, Government of India is implementing Prime Minister’s Employment Generation Programme (PMEGP), to facilitate generation of employment opportunities for unemployed youth across the country by assisting setting up of micro-enterprises in non-farm sector.
- The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level.
- Since its inception in 2008-09, about 7.8 lakh micro enterprises have been assisted with a subsidy of Rs 19,995 Crore generating estimated sustainable employment for 64 lakh persons.
Following major modifications/improvements have been made in the existing Scheme:
- Increasing the maximum project cost from existing Rs.25 lakh to Rs. 50 lakh for manufacturing units and from existing Rs.10 lakh to Rs.20 lakh for service units.
- Modify definition of village industry and Rural Area for PMEGP. Areas falling under Panchayti Raj institutions to be accounted under rural area, where as areas under Municipality to be treated as urban area.
- All Implementing Agencies are allowed to receive and process applications in all areas irrespective of the rural or urban category.
- PMEGP applicants under aspirational districts and transgender will be treated as Special category applicants and entitled for higher subsidy.
Major impact: Scheme will create sustainable estimated employment opportunities for about 40 lakh persons in five financial years.
States/districts covered: All the States/UTs will be covered under the Scheme.
Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost)
Area (location of project/unit):
- General category 15% (Urban), 25% (Rural)
- Special 25% (Urban), 35%(Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, physically handicapped, NER, Hill and Border areas, etc.)
- The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
Who can apply?
- Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.
- Only new projects are considered for sanction under PMEGP.
- Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
Cabinet approves USD 808 million for “Raising and Accelerating MSME Performance”
- The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today approved a USD 808 million or Rs 6,062.45 crore, World Bank assisted programme on “Raising and Accelerating MSME Performance” (RAMP).
- RAMP is a new scheme and would commence in FY 2022-23.
- The total outlay for the scheme is Rs.6,062.45 crore or USD 808 Million, out of which Rs.3750 crore or USD 500 Million would be a loan from the World Bank and the remaining Rs.2312.45 crore or USD 308 Million would be funded by the Government of India (GoI).
- RAMP programme will address the generic and COVID related challenges in the MSME sector by way of impact enhancement of existing MSME schemes, especially, on the competitiveness front.
- The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs.
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