Press Information Bureau
Government of India
Ministry of Micro,Small & Medium Enterprises
30-August-2012 16:20 IST
Higher Borrowing Cost for MSMEs
The Ministry of Micro, Small and Medium Enterprises (MSME) is implementing a number of schemes to address these issues. Major schemes include:

• National Manufacturing Competitiveness Programme (NMCP) and Credit Linked Capital Subsidy Scheme (CLCSS) are being implemented to facilitate upgradation of technology, improve processes and design.

• National Small Industries Corporation Limited (NSIC) under the Ministry of MSME is implementing a scheme for Raw Material Assistance by way of financing the purchase of Raw Material (both indigenous and imported) to micro and small enterprises (MSEs).

• The Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) facilitate infrastructure upgradation and setting up of Common Facility Centres.

• The Credit Guarantee Fund Scheme for Micro and Small enterprises (CGTMSE) facilitate collateral free credit facility (term loan and/ or working capital) to new and existing micro and small enterprises (MSEs). The Reserve Bank of India (RBI) has also laid down time lines for disposal of loan applications, acknowledgement of loan applications, composite loan limit for working capital and term loan, etc. Further, the RBI has advised banks to achieve 20 per cent year-on-year growth in credit to MSEs to ensure enhanced credit flow.

• The Ministry of MSME is also implementing Management Development Training Programmes (MDPs) for enhancing managerial skills.

This information was given by the Union Minister for Micro, Small and Medium Enterprises, Shri Vayalar Ravi in a written reply to a question in the in the Rajya Sabha today.