Parliament Question: Expansion of MSMEs

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO.885 TO BE ANSWER ON 24.07.2025 EXPANSION OF MSMEs 885. SHRI RAJESH RANJAN: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) whether the Ministry of Micro, Small and Medium Enterprises (MSME) has implemented any schemes so far for the expansion of small and medium enterprises and promotion of self employment among local youth in eastern parts of the country especially in the Seemanchal region of Bihar such as Purnia, Kishanganj and Katihar; (b) whether the Government has any proposal to develop this region as a MSME cluster; (c) whether the Ministry of Micro, Small and Medium Enterprises (MSME) has any specific plan to implement schemes such as Entrepreneurship Development Centres (EDCs), industrial training programmes or easy credit facilities in this region and if so, the details thereof; and (d) the details of the expenditure incurred, beneficiaries registered, strategy chalked out for the next five years, region-wise? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a), (c) & (d): The Central Government supplements the efforts of the States/UTs through various schemes, programmes and policy initiatives for promotion, development of MSMEs in the country including Bihar. The schemes are operational in all the states and UTs of the country. These schemes/ programmes include Prime Minister's Employment Generation Programme, Credit Guarantee Scheme for Micro and Small Enterprises, PM Vishwakarma scheme, Entrepreneurship & Skill Development Programme scheme, Micro and Small Enterprises - Cluster Development Programme, Raising and Accelerating MSME Performance, MSME Champions Scheme, etc. The Schemes implemented by Ministry of MSME are Central Sector and demand driven Schemes and funds are not allocated state-wise. The brief Scheme-wise details are at Annexure. (b): Micro and Small Enterprises Cluster Development Programme (MSE-CDP) is a demand driven scheme and proposals are received from the State/UT Governments to address the common needs of existing cluster in their States/UTs. There is no proposal under MSE-CDP scheme has been received at Ministry level. ******Annexure Annexure referred in part (a), (c) & (d) of answer to Lok Sabha Unstarred Question No. 885 on ‘Expansion of MSMEs’ due for reply on 24.07.2025. Scheme-wise details are as under: A. Prime Minister’s Employment Generation Programme (PMEGP) Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new micro enterprises in the non-farm sector. It aims to provide self- employment opportunities to traditional artisans/ rural and urban unemployed youth at their doorstep. PMEGP Performance in Bihar during last 5 years i.e. from FY2020-21 to FY2024-25: Margin Money Estimated S. No. of Units District Subsidy Employment No. Assisted (Rs. Lakh) Generated 1 Katihar 484 1,334.40 3,872 2 Kishanganj 369 900.94 2,952 3 Purnia 607 1,546.72 4,856 4 Bihar 21,000 61,721.78 168,000 B. Entrepreneurship and Skill Development Programme (ESDP) Scheme The Entrepreneurship and Skill Development Programme (ESDP) Scheme is a Central Sector continuing scheme, which was up scaled in November 2019. The objective of the programme is to motivate young persons (Men and Women) representing different sections of the society including SC/ST women, physically handicapped, Ex-servicemen, and BPL persons to consider self- employment or entrepreneurship as one of the career options. The ultimate objective is to promote new enterprises, build capacity of existing MSMEs and inculcate entrepreneurial culture in the country. The Progress of ESDP scheme in Purnia, Kishanganj & Katihar Districts in Bihar so far:- S. Financial No. of No. of No. of No. of No. of No. of No. Year Programmes Beneficiaries P r o g r a m mes Beneficiaries P r o g r a m mes Beneficiaries Conducted (In Purnia Conducted (In Conducted (In Katihar (In Purnia District) (In Kishanganj (In Katihar District) District) Kishanganj District) District) District) 1. 2021-22 1 57 1 60 0 0 2. 2022-23 8 292 0 0 0 0 3. 2023-24 5 240 3 170 1 27 4. 2024-25 8 306 2 79 2 84 Total 22 895 6 309 3 111ESDP scheme in Bihar :- S. Financial No. of No. of Beneficiaries Expenditure (In Rs.) No. Year Programmes Conducted 1. 2021-22 49 3929 900145 2. 2022-23 132 6079 8028274 3. 2023-24 232 12265 11036018 4. 2024-25 288 13454 14355086 Total 701 35727 34319523 C. Credit Guarantee Scheme Credit Guarantee Scheme for Micro and Small Enterprises: The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly instituted Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) in the year 2000, to provide credit guarantees for loans extended by Member Lending Institutions (MLIs) to Micro and Small Enterprises (MSEs), without requiring collateral security or third-party guarantees. CGTMSE implements the Credit Guarantee Scheme (CGS) for MSEs. The details of the guarantees approved under CGS in the Seemanchal Region of Bihar are given below: CGS - Guarantee Approved Cumulative since inception in 2000 till 30/06/2025 No of Guarantees approved Amount Approved (in Rs. crore) Katihar 14,547 763 Kishanganj 8,228 335 Purnia 20,532 1,420 Bihar 6,66,919 42,105