**Executive Summary**
This document is an answer provided by the Minister of State in the Ministry of Steel to questions raised in the Lok Sabha regarding the promotion of steel-based MSME clusters in Dharmapuri. It outlines the government's role in facilitating a conducive environment for the steel sector and details specific steps taken to promote and develop MSME steel users. The answer references a growth of crude steel production of over 11% till December 2025.
**Key Points / Main Content**
* **Government's Role:**
* Steel is a deregulated sector, and the Government acts as a facilitator by creating a conducive policy environment.
* Prices are market-determined.
* Decisions on setting up companies, investment, etc., depend on market conditions and individual company analysis.
* **Promotion and Development Steps:**
* Implementation of Micro and Small Enterprises - Cluster Development Programme (MSE-CDP) to establish Common Facility Centers (CFCs) and upgrade infrastructure in industrial areas.
* Launch of Udyam Registration for MSMEs to ease business operations.
* Enhancement of maximum project cost under Prime Minister's Employment Generation Programme (PMEGP).
* Launch of revamped Credit Guarantee Scheme.
* Setting up of Self Reliant India (SRI) Fund.
* **Steel Production Growth**
* Crude steel production has grown over 11% until December 2025 compared to the previous year.
**Impact Analysis**
**MSME Steel Users:**
* **Impact:** MSMEs will benefit from various schemes and initiatives, including the MSE-CDP, Udyam Registration, enhanced PMEGP project costs, the Credit Guarantee Scheme, and the SRI Fund. These are intended to provide financial assistance, ease of doing business, and infrastructure improvements.
* **Action Required:** MSME's must leverage the schemes and infrastructure to set up, invest, expand, modernise, employ and export in the steel sector.
**Dharmapuri District:**
* **Impact:** The initiatives aim to promote downstream steel-based MSME clusters, potentially generating local employment and fostering economic growth in the Dharmapuri district of Tamil Nadu.
* **Action Required:** The Dharmapuri district must participate in government initiatives and make use of new funding and schemes that become available.
**Government of India (Ministry of Steel):**
* **Impact:** The Ministry is responsible for implementing and monitoring the effectiveness of the various schemes and initiatives aimed at promoting the steel sector and MSMEs.
* **Action Required:** The ministry is responsible for maintaining efforts to monitor and implement initiatives.
Key Entities Referenced
Ministry of Steel: The central government ministry responsible for the steel sector.
Dharmapuri: District in Tamil Nadu targeted for the promotion of steel-based MSME clusters.
Micro and Small Enterprises - Cluster Development Programme (MSE-CDP): Scheme to provide financial assistance for MSME cluster development.
Prime Minister's Employment Generation Programme (PMEGP): Government scheme mentioned in the context of enhancing project costs for MSMEs.
Self Reliant India (SRI) Fund: A fund established to promote self-reliance in India.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 484
FOR ANSWER ON 03.02.2026
PROMOTION OF STEEL-BASED MSME CLUSTERS IN DHARMAPURI
484. SHRI MANI A:
Will the Minister of STEEL be pleased to state:
a) whether the Government has considered promoting downstream steel-based MSME
clusters in districts like Dharmapuri to generate local employment, if so, the details
thereof;
(b) whether any Central scheme support has been extended for fabrication, auto
components, or construction material units in the district, if so, the details thereof;
(c) whether lack of affordable steel supply is affecting small manufacturing units, if so,
the details thereof;
(d) the infrastructure support proposed for MSME steel users; and
(e) the steps being taken to link industrial policy with employment generation in
backward regions?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(e): Steel is a deregulated sector and the Government acts as a facilitator by
creating a conducive policy environment in the country, including in Dharmapuri district
of Tamil Nadu, for MSMEs and steel sector in general. Prices are market determined.
Decisions such as setting up companies, investment, capacity expansion,
modernization, employment, export etc. are dependent on the market conditions and
techno-commercial analysis of individual companies. Production of crude steel has
shown a growth of over 11% till December 2025, as compared to the previous year.
Government has taken various steps for the promotion and development of the
MSME steel users. Some of these are detailed below:-
i. Implementation of Micro and Small Enterprises - Cluster Development
Programme (MSE-CDP) scheme by extending financial assistance to establish
Common Facility Canters (CFCs) in the existing clusters and establish/up-
grade infrastructural facilities in new/existing industrial estates/areas/flatted
factory complexes.
ii. Launch of Udyam Registration for MSMEs, for Ease of Doing Business.
iii. Enhancement of maximum project cost under Prime Minister’s Employment
Generation Programme (PMEGP).
iv. Launch of revamped Credit Guarantee Scheme.
v. Setting up of Self Reliant India (SRI) Fund.
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