**Executive Summary**
This document is an answer to an unstarred question in Lok Sabha regarding private investment in MSME clusters. It outlines the Government of India's efforts, through the Ministry of MSME, to promote and develop the MSME sector, including financial assistance and various schemes. The response includes details of projects under the MSE-CDP in Andhra Pradesh over the last 3 years and initiatives to enhance credit flow and ease of doing business for MSMEs. The date of the question is scheduled for 11.12.2025.
**Key Points / Main Content**
* **Micro and Small Enterprises-Cluster Development Programme (MSE-CDP):**
* Implemented across the country to establish Common Facility Centers (CFCs) and upgrade infrastructural facilities in industrial areas.
* Financial assistance provided follows a tripartite funding pattern: 60%-80% from the Government of India, 5%-15% from SPV of participant MSMEs, and the remaining share from the respective State Government.
* In Andhra Pradesh over the last 3 years, 26 projects were undertaken under MSE-CDP with a total project cost of ₹404.0252 Crore, and a Government of India grant of ₹260.98 Crore was approved.
* **Other Central Government Schemes and Initiatives:**
* Supplements state government efforts to promote MSME growth.
* Implemented schemes/programmes: Prime Minister's Employment Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), Entrepreneurship Skill Development Programme (ESDP), Procurement and Marketing Support Scheme (PMSS), Raising and Accelerating MSME Performance (RAMP), PM Vishwakarma, etc.
* Collateral free loan up to Rs. 500 lakh with guarantee coverage up to 90% to MSEs under Credit Guarantee Scheme.
* Rs. 50,000 crore equity infusion through Self Reliant India Fund.
* New criteria for MSME classification with higher thresholds, based on investment and turnover.
* New registration of MSMEs through "Udyam Registration".
* No global tenders for procurement up to Rs. 200 crore.
* Inclusion of retail and wholesale trades as MSMEs.
* Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
* Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
* Integration of Udyam Portal and National Career Service (NCS) to search for jobseekers.
* Relief was provided to MSMEs debarred for default in execution of contracts.
* Launch of Udyam Assist Platform (UAP) to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
* Launch of 'PM Vishwakarma' Scheme on 17.09.2023 to provide benefits to the traditional artisans and craftspeople engaged in 18 specified trades.
**Impact Analysis**
**MSMEs**
* **Impact:** Benefit from financial assistance, improved access to credit, eased business operations, and growth opportunities through various government schemes.
* **Action Required:** Utilize available schemes like MSE-CDP and CGTMSE, register through Udyam Registration, leverage the Udyam Assist Platform, and stay informed about new initiatives.
**State Governments**
* **Impact:** Required to partner with the Central Government in promoting MSME growth by contributing to project costs, implementing central schemes, and facilitating proposals.
* **Action Required:** Develop proposals for MSE-CDP to address local cluster needs, implement central schemes, and support MSMEs in accessing available resources.
**Jobseekers**
* **Impact:** Have increased access to job opportunities in MSMEs through the integration of Udyam Portal and National Career Service (NCS).
* **Action Required:** Register on the NCS portal and utilize the platform to search for employment opportunities in registered MSMEs.
Key Entities Referenced
Micro and Small Enterprises-Cluster Development Programme (MSE-CDP): A scheme implemented by the Ministry of MSME that provides financial assistance to establish Common Facility Centers (CFCs) in existing clusters and upgrade infrastructural facilities.
Ministry of Micro, Small and Medium Enterprises (MSME): The central ministry responsible for implementing schemes and programs aimed at the promotion and development of the MSME sector.
Andhra Pradesh: The state where private investment in MSME clusters is being assessed, and where MSE-CDP projects have been implemented.
Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE): A scheme to provide collateral-free loans to MSEs with guarantee coverage through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
PM Vishwakarma: A scheme to provide benefits to traditional artisans and craftspeople.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 1901
TO BE ANSWERED ON 11.12.2025
PRIVATE INVESTMENT IN MSME CLUSTERS
1901. DR. C M RAMESH:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether private investment in Micro, Small and Medium Enterprises (MSME) clusters has
increased in Andhra Pradesh during the last three years and if so, the details thereof;
(b) the steps taken to enhance credit flow and ease of doing business for MSMEs; and
(c) whether any Central schemes are being implemented in partnership with the State agencies to
promote private participation in the growth of MSMEs and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): Ministry of MSME is implementing a Micro and Small Enterprises-Cluster Development
Programme (MSE-CDP) across the country. The Government provides financial assistance 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. It is a
demand driven scheme where proposals are received from State Government to address the common
needs of existing cluster in their State/UTs. The CFC proposals follow a tripartite funding pattern
with share of Government of India ranges from 60%-80% and that of SPV of participants MSMEs in
the range of 5%-15% while remaining share is contributed by respected State Government. The
details of projects under MSE-CDP in Andhra Pradesh in last 3 years are as follows.
SI. No. No. of Projects Project Cost Approved Government of
(in Crore) India Grant
(in Crore)
1 26 404.0252 260.98: 2 :
(b) to (c): The Central Government Supplements the efforts of State Government to promote the
growth of MSMEs. The Government of India, Ministry of Micro, Small and Medium Enterprises
(MSME) implements various schemes and programmes aimed at promotion and development of
MSME Sector in the country. These schemes/ programmes include Prime Minister’s Employment
Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises
(CGTMSE), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP),
Entrepreneurship Skill Development Programme (ESDP), Procurement and Marketing Support
Scheme (PMSS), Raising and Accelerating MSME Performance (RAMP), International Cooperation
scheme, Tool Rooms, Technology Centre System Programme (TCSP), National SC/ST Hub (NSSH),
MSME Champions, PM Vishwakarma etc.
Further, Government has taken a number of initiatives to support the MSME Sector for
enhanced credit flow and ease of doing business for MSMEs.
i. Collateral free loan up to a limit of Rs. 500 lakh (w.e.f. 01.04.23) to MSEs with guarantee
coverage up to 90 % for various categories of loan through Credit Guarantee Fund Trust for
Micro and Small Enterprises (CGTMSE) under Credit Guarantee Scheme.
ii. Rs. 50,000 crore equity infusion through Self Reliant India Fund. This scheme has a provision
for corpus of Rs.10,000 crore from Government of India.
iii. New criteria for classification of MSMEs with higher threshold, based on Investment and
Turnover, to widen the ambit of the MSME sector.
iv. New registration of MSMEs through ''Udyam Registration'' for Ease of Doing Business.
v. No global tenders for procurement up to Rs. 200 crore
vi. Inclusion of retail and whole sale trades as MSMEs w.e.f. 02.07.2021.
vii. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
viii. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay
of Rs. 6,000 crore over 5 years.
ix. Integration of Udyam Portal and National Career Service (NCS) of Ministry of Labour &
Employment, as an outcome registered MSMEs are able to search for jobseekers on NCS.
x. Under Vivad se Vishwas – I, relief by way of refund of 95% of the deducted performance
security, bid security and liquidated damages was provided to MSMEs. Relief was also
provided to MSMEs debarred for default in execution of contracts.
xi. Launch of Udyam Assist Platform (UAP) to bring the Informal Micro Enterprises (IMEs)
under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
xii. Launch of ‘PM Vishwakarma’ Scheme on 17.09.2023 to provide benefits to the traditional
artisans and craftspeople engaged in 18 specified trades.
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