Allocation for MSME sector 133.53 percent higher in 12th Plan: Mishra
Posted on Aug 13 2014 | IANS
New Delhi, Aug 13 : The planned allocation for micro, small and medium enterprises (MSME) industry has gone up by 133.53 percent in the 12th Plan period (2012-17) over the previous plan, MSME Minister Kalraj Mishra said in a written reply to the Lok Sabha here Wednesday.
"An outlay of Rs.24,124 crore has been allocated for the Ministry of Micro, Small and Medium Enterprises for 12th Five Year Plan period. This 12th Plan allocation represents an increase of 133.53 percent over 11th Five Year Plan allocation of Rs.10,330 crore," he said.
There are 2,887 specialised SME branches of public sector banks operational as on March 31, 2014.
"The MSME sector play a vital role in removing regional imbalances in industrial development across the country. These units are established with small investment of capital which create employment opportunities to skilled and unskilled workforce, consume optimally the local resources, develop niche markets and promote ancillarisation, facilitating thereby overall growth of the region where they are located," he said.
Mishra said the government has been implementing various schemes and programmes for promotion of MSME at all India level including industrially backward region.
"For implementing various schemes for the development of MSMEs, the government has allocated Rs.3,327 crore in 2014-15," he said.
He also suggested that every central ministry or department or public sector unit shall set an annual goal for procurement from the MSME sector at the beginning of the year, with the objective of achieving an overall procurement goal of minimum 20 percent of the total annual purchases from the products or services rendered by MSEs.
"As the policy mandates that after a preparatory period of three years, that is, April 1, 2015, overall procurement goal of minimum 20 percent shall be made mandatory for all the central ministries or departments or PSUs," he said.