Various Schemes Rolled Out To Strengthen MSME Sector, Says Mos Shobha Karandlaje

(MENAFN- KNN India) ** New Delhi, Mar 13 (KNN)** The government has launched several schemes including Emergency Credit Line Guarantee Scheme (ECLGS) and Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) to strengthen the micro, small and medium enterprises (MSME) ecosystem in the country, Minister of State (MoS) for MSME Sushri Shobha Karandlaje said in Lok Sabha.

In written reply to a question in the Lower House of Parliament, Karandlaje outlined various schemes and institutional measures aimed at improving credit access, digital integration and market support for MSMEs.

Among the key initiatives taken by the government for the sector is the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises. The scheme provides collateral-free credit guarantee support for loans extended to micro and small businesses, with the guarantee coverage ceiling set at Rs 10 crore.

The government has also established the Self-Reliant India (SRI) Fund with a target corpus of Rs 50,000 crore to provide equity funding to MSMEs. This includes Rs 10,000 crore contributed by the Government of India and Rs 40,000 crore mobilised through private equity and venture capital funds.

In the Union Budget 2026–27, an additional Rs 2,000 crore has been announced to top up the fund to continue support for micro enterprises and maintain their access to risk capital.

The Emergency Credit Line Guarantee Scheme (ECLGS), launched in May 2020 as part of the Aatmanirbhar Bharat package, supported MSMEs and business enterprises affected by the COVID-19 pandemic. The scheme remained operational until March 31, 2023.

According to data from the Department of Financial Services, a total of 1.13 crore guarantees worth Rs 2.42 lakh crore were extended to MSMEs under the scheme during its implementation period.

To address delayed payments to MSMEs, provisions under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 mandate that payments to micro and small enterprises must be made within 45 days.

Micro and Small Enterprises Facilitation Councils (MSEFCs) have been established across states and Union Territories to resolve such disputes. Additionally, the government launched the SAMADHAAN Portal in October 2017 to enable MSMEs to file and monitor cases related to delayed payments.

The Minister said that retail and wholesale traders were included under the MSME category for the purpose of Priority Sector Lending (PSL) from July 2, 2021. To bring Informal Micro Enterprises (IMEs) into the formal financial system and enable them to access PSL benefits, the government launched the Udyam Assist Platform in January 2023.

The government has also extended non-tax benefits for three years in cases where enterprises move to a higher MSME classification.

Under the Digital India programme, various digital infrastructure and service initiatives are being implemented to support MSME digitalisation.

These include platforms such as the Udyam Portal, MSME Champions Portal, Government e-Marketplace (GeM), Trade Receivables Discounting System (TReDS), MSME Trade Enablement and Marketing Scheme, MSME Sambandh, PMEGP Portal, Khadi and Village Industries Commission Online, PM Vishwakarma Portal and the Online Dispute Resolution portal.

The Prime Minister’s Employment Generation Programme (PMEGP) provides margin money subsidy of up to 35 per cent for setting up new micro enterprises in the non-farm sector, with project costs of up to Rs 50 lakh for manufacturing units and Rs 20 lakh for service enterprises.

The government also launched the PM Vishwakarma Scheme on September 17, 2023 to provide holistic support to artisans and craftspeople engaged in 18 traditional trades. The scheme includes provisions for collateral-free loans of up to Rs 3 lakh with interest subvention of up to 8 per cent.

** (KNN Bureau)**

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