Executive Summary:
The Ministry of MSME addresses issues concerning MSMEs, including delayed payments, market access, cluster performance, and support during economic disruptions. Key initiatives include the SAMADHAAN Portal for payment monitoring, the Public Procurement Policy mandating MSE procurement, and the MSECDP for cluster development. Financial support and credit schemes are provided to mitigate the impact of economic challenges.
Key Points / Main Content:
Delayed Payments to MSMEs:
* SAMADHAAN Portal monitors outstanding dues to MSEs (launched 30.10.2017).
* Sub-portal created on 14.06.2020 for reporting dues and monthly payments by Central Ministries/Departments/Public Sector Enterprises to MSMEs.
* 161 Micro Small Enterprises Facilitation Councils (MSEFCs) established in States/UTs.
* Monetary limit for onboarding on Trade Receivables Discounting System reduced to a turnover of Rs. 250 Crore (Notification S.O. 4845E dated 07.11.2024).
Enhancing Market Access and Export Opportunities:
* Public Procurement Policy mandates 25% annual procurement from MSEs by Central entities, including set-asides for SC/ST and women-owned MSEs.
* Rs. 93,911.23 Crore procurement done from MSEs in F.Y. 2024-25 via MSME SAMBANDH Portal.
* Procurement and Marketing Support Scheme aids market access through trade fairs, vendor development, modern packaging, and e-commerce.
* International Cooperation Scheme provides financial assistance for MSME participation in international events.
* 65 Export Facilitation Centres (EFCs) established to support export promotion.
* Enhanced credit guarantee cover for exporter MSMEs for term loans up to Rs. 20 crore (Budget 2025-26).
MSME Cluster Development:
* Micro and Small Enterprises Cluster Development Programme (MSECDP) is implemented nationwide.
* 229 Common Facility Centres (CFCs) and 361 Infrastructure Development (ID) projects approved.
* 111 CFCs and 251 ID projects completed.
Support for MSMEs Affected by Disruptions:
* Emergency Credit Line Guarantee Scheme of Rs. 5 lakh crore (operational until 31.03.2023) saved approximately 14.6 lakh MSME accounts from NPA classification.
* Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) provides collateral-free credit.
* Rs. 9,000 crore infused into the Credit Guarantee Fund Trust for MSEs.
* Rs. 50,000 crore equity infusion through Self Reliant India Fund.
* Retail and Wholesale traders included as MSMEs w.e.f. 02.07.2021 for priority sector lending.
* Non-tax benefits extended for 3 years upon upward change in MSME status.
* Udyam Assist Platform (UAP) launched on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefit under Priority Sector Lending.
* No global tenders for procurement up to Rs. 200 crores.
* Mutual Credit Guarantee Scheme for MSMEs in manufacturing sector and Credit Guarantee Scheme for MSMEs in Special Mention Account SMA in Budget 2024
* Government revised the definition of MSMEs and enhanced the guarantee coverage under CGS from Rs. 5 Crore to Rs. 10 Crore through Budget Announcement 2025.
Impact Analysis:
MSMEs:
* Impact: Benefit from timely payments, enhanced market access, cluster development support, and financial assistance during disruptions.
* Action Required: Utilize SAMADHAAN Portal, participate in procurement opportunities, engage with Export Facilitation Centres, and leverage available credit schemes.
Large Corporations and Government Departments:
* Impact: Required to ensure timely payments to MSEs and adhere to procurement mandates.
* Action Required: Monitor and report dues on the SAMADHAAN Portal, comply with Public Procurement Policy, and onboard on Trade Receivables Discounting System (TReDS).
Central Ministries/Departments/Public Sector Enterprises:
* Impact: Required to report dues and monthly payments to MSMEs
* Action Required: Report dues and monthly payments to MSMEs via the sub-portal created on 14.06.2020 within SAMADHAAN Portal.
State/UT Governments:
* Impact: Responsible for establishing and supporting MSEFCs and proposing projects under MSECDP.
* Action Required: Facilitate MSEFC operations and submit proposals for CFCs and ID projects.
Member Lending Institutions:
* Impact: Can provide collateral-free credit to MSEs with guarantee coverage.
* Action Required: Utilize the Credit Guarantee Scheme for MSEs and extend credit to MSMEs without collateral security.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The central ministry responsible for policies related to micro, small, and medium enterprises in India.
MSME Clusters: Groups of geographically proximate MSMEs in related sectors.
SAMADHAAN Portal: A portal launched by the Ministry of MSME for monitoring outstanding dues to MSEs from buyers.
Micro, Small and Medium Enterprises Development Act, 2006: The Act that provides the legal framework for the development and regulation of MSMEs in India.
Public Procurement Policy for Micro and Small Enterprises MSEs, Order, 2012: A policy mandating a certain percentage of annual procurement from MSEs by Central Ministries/Departments/CPSEs.
Emergency Credit Line Guarantee Scheme: A scheme to provide guaranteed collateral-free loans to MSMEs to mitigate the impact of economic disruptions.
Credit Guarantee Fund Trust for MSEs: The trust that implements the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs), providing guarantees to lending institutions.
Micro and Small Enterprises Cluster Development Programme: A program implemented by the Ministry of MSME to support the development of MSME clusters across the country.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 826
TO BE ANSWERED ON 24.07.2025
MSME CLUSTERS
826. MS. S JOTHIMANI:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the measures being taken to address the issue of delayed payments to MSMEs from large
Corporations and Government Departments;
(b) the steps being taken to enhance market access and export opportunities for MSMEs;
(c) whether there is any update on the performance of MSME clusters and their role in
employment generation and if so, the details thereof; and
(d) the support being provided to MSMEs affected by economic disruptions or global supply chain
challenges?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): The Government of India has taken a number of measures to ensure timely payment
settlements for Micro and Small Enterprises (MSEs) across the country. The Ministry of MSME
launched SAMADHAAN Portal on 30.10.2017
(https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx) for monitoring of the
outstanding dues to the MSEs from the buyers of goods and services. The Ministry also created a
special sub-portal within SAMADHAAN Portal on 14.06.2020, for reporting the dues and monthly
payments by Central Ministries/Departments/Public Sector Enterprises to MSMEs. 161 Micro &
Small Enterprises Facilitation Councils (MSEFCs) have been set-up in States/UTs in accordance with
the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. The
monetary limit for onboarding on Trade Receivables Discounting System for Corporates and CPSEs
has been reduced to a turnover of Rs. 250 Crore vide Notification S.O. 4845(E) dated 07.11.2024.
(b): With the objective of enhancing market access for MSMEs, the Ministry of MSME,
Government of India notified the Public Procurement Policy for Micro and Small Enterprises (MSEs),
Order, 2012 (as amended in 2018), which mandates 25% annual procurement from MSEs by Central
Ministries/Departments/Central Public Sector Enterprises (CPSEs), including 4% from MSEs owned
by SC/ST and 3% from MSEs owned by Women entrepreneurs. As per MSME SAMBANDH Portal, a
procurement of Rs. 93,911.23 Crore was done from MSEs in F.Y. 2024-25. Procurement and
Marketing Support Scheme extends benefits to MSEs for market access through participation in Trade
Fairs/ Exhibitions, Vendor Development Programmes, adoption of Modern Packaging Technique, e-
Commerce platforms, etc.: 2 :
Under International Cooperation Scheme of the Ministry, financial assistance is provided on
reimbursement basis to the eligible Central/State Government organizations and Industry Associations
to facilitate participation of MSMEs in the international exhibitions/fairs/buyer-seller meets held
abroad. The Scheme includes a component of ‘Capacity Building of First Time Exporters’. Further, to
enhance export opportunities for MSMEs, the Ministry of MSME has developed a dedicated support
system for export promotion in MSME Sector by establishing 65 Export Facilitation Centres (EFCs) in
its field organizations namely MSME-Development and Facilitation Offices, MSME Technology
Centres and MSME Testing Centres.
To further promote export opportunities for MSMEs, the credit guarantee cover for exporter MSMEs,
for term loans up to Rs. 20 crore, has been enhanced through Budget announcements 2025-26.
(c): Ministry of MSME implements Micro and Small Enterprises Cluster Development Programme
(MSE-CDP) across the country. Since inception, 229 Common Facility Centres (CFCs) and 361
Infrastructure Development (ID) projects have been approved under the programme and out of this
111 CFCs and 251 ID projects have been completed. The proposals under the scheme are received
from the State/UT Governments and financial assistance as Government of India grant is provided to
establish Common Facility Centers (CFCs) in the existing clusters and establish/up-grade
infrastructural facilities in new/existing industrial estates/areas/flatted factory complexes.
(d): The Ministry of Micro & Small Enterprises has taken various steps to strengthen and support
the MSMEs affected by economic disruptions or global supply chain challenges. Some of these steps
are as under:
i. Emergency Credit Line Guarantee Scheme of Rs.5 lakh crore, as part of Aatmanirbhar Bharat
Abhiyan to support eligible MSMEs and business enterprises in meeting their operational
liabilities and restarting their businesses. The Scheme was operational till 31.03.2023. As per a
research report dated 23.01.2023 of the State Bank of India on Emergency Credit Line
Guarantee Scheme, almost 14.6 lakh MSME accounts, of which about 98.3% of the accounts
were in the Micro and Small Enterprises categories, were saved from slipping into Non-
Performing Asset (NPA) classification.
ii. Under the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) of Ministry of
MSME, guarantee is provided to Member Lending Institutions for the credit extended by them
to MSEs without any collateral security or third-party guarantee. Additional corpus fund of Rs.
9,000 crore was infused into the corpus of Credit Guarantee Fund Trust for MSEs, as
announced in the Union Budget 2023-24 to enable an additional credit of Rs. 2.00 lakh crore, at
a reduced cost of credit.
iii. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
iv. Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 02.07.2021 for priority sector
lending.
v. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
vi. Launch of Udyam Assist platform (UAP) on 11.01.2023 to bring Informal Micro Enterprises
under the formal ambit for availing the benefit under Priority Sector Lending.
vii. No global tenders for procurement up to Rs.200 crores.
To further support the MSME Sector, Government of India announced Mutual Credit Guarantee
Scheme for MSMEs in manufacturing sector and Credit Guarantee Scheme for MSMEs in Special
Mention Account (SMA) in Budget 2024. Further, the Government revised the definition of MSMEs
and enhanced the guarantee coverage under CGS from Rs. 5 Crore to Rs. 10 Crore through Budget
Announcement 2025
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