This document summarizes the Indian government's response to a parliamentary question regarding MSME investment in Punjab's border districts. The Ministry of Micro, Small and Medium Enterprises (MSME) clarifies that while industrial development is primarily the responsibility of the State Government, the Union Government supports these efforts through various national schemes and programs available to all eligible MSMEs, including those in Punjab. These include the 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, National SCST Hub Scheme, and MSME Champions Scheme.
The Ministry highlights the Department for Promotion of Industry and Internal Trade (DPIIT)'s approval of an integrated manufacturing cluster in Rajpura-Patiala, under the Amritsar Kolkata Industrial Corridor (AKIC) of the National Industrial Corridor Development Programme (NICDP). This project, located in Patiala district, encompasses 1,098 acres with a total project cost of Rs. 1,367 crores. The Government of India's contribution, through NICDIT, has been approved for Rs. 385 Crore as equity and Rs. 458 Crore towards debt. The statement addresses concerns about attracting private and MSME investment in Punjab's border districts, tax incentives, and consultations with the State Government, clarifying the existing support mechanisms and a major infrastructure project.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
Punjab: A state in India, specifically mentioned in the context of attracting private and MSME investment, particularly in border districts.
Gurdaspur: A district in Punjab, India, identified as a potential industrial zone.
Batala: A city in Gurdaspur district of Punjab, India, identified as a potential industrial zone.
Prime Minister's Employment Generation Programme: A scheme implemented by the Ministry of MSME to generate employment opportunities.
Credit Guarantee Scheme for Micro and Small Enterprises: A scheme implemented by the Ministry of MSME to provide credit guarantee support to micro and small enterprises.
PM Vishwakarma scheme: A scheme implemented by the Ministry of MSME.
Amritsar Kolkata Industrial Corridor: An industrial corridor project under the National Industrial Corridor Development Programme, including the development of an integrated manufacturing cluster in Rajpura Patiala.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 2051
TO BE ANSWERED ON: 31.07.2025
MSME INVESTMENT IN PUNJAB
2051. SHRI SUKHJINDER SINGH RANDHAWA:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government proposes to introduce a special capital subsidy scheme, tax holidays
and exemptions to attract private and MSME investment in Punjab’s border districts, especially those
within 50 km of the international border;
(b) whether any consultation has been held with the State Government of Punjab to identify
potential industrial zones in districts like Gurdaspur and Batala; and
(c) if not, whether the Government would consider a long-term industrial package (minimum
tenure of 25 years) to boost employment and deter youth migration from these sensitive areas?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): The primary responsibility of developing the industrial sector rests with State
Government. The Union Government supplements efforts of State Governments through
various schemes, programmes and policy initiatives for promotion, development of MSMEs in the
country including Punjab. The MSME sector consists of private player and the investments in this
sector are made by the entrepreneurs themselves. A number of schemes/programmes including
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, National SC/ST Hub Scheme, MSME Champions Scheme,
etc.; are being implemented by the Ministry of MSME. Benefits under these schemes are available
to all eligible MSMEs.
Further, Department for Promotion of Industry and Internal Trade (DPIIT), Government of
India has approved the proposal for development of integrated manufacturing Cluster Rajpura-Patiala
on 28th Aug, 2024 as part of Amritsar – Kolkata Industrial Corridor (AKIC) under National Industrial
Corridor Development Programme (NICDP). The project located in Patiala district has an activation
area of 1,098 acre with a total project cost of Rs. 1,367 crores. Share of GoI’s contribution (through
NICDIT) has been approved for Rs. 385 Crore as equity and Rs. 458 Crore towards debt.
****