New Delhi, August 18(HS):

The Union government has initiated a series of reforms aimed at boosting the growth and competitiveness of India’s Micro, Small and Medium Enterprises (MSMEs), Minister of State for MSMEs Shobha Karandlaje told the Rajya Sabha on Monday.

Responding to a written question in the Upper House, Karandlaje highlighted that under the Prime Minister’s Employment Generation Programme (PMEGP), the project cost ceiling for the service sector has been enhanced to ₹20 lakh, significantly expanding its scope.

Key Initiatives Highlighted

-Ease of Doing Business: Mandatory Udyam registration for MSMEs came into effect on July 1, 2020, while retail and wholesale traders were brought under the MSME framework from July 2, 2021.

-Udyam Assistance Platform (UAP): Launched to integrate informal micro enterprises (IMEs) into the formal structure, enabling them to access Priority Sector Lending (PSL) benefits.

-Credit Expansion:

---A restructured loan guarantee scheme with an outlay of ₹9,000 crore, facilitating ₹2 lakh crore in additional credit to MSMEs.

---Collateral-free loans up to ₹10 crore, with up to 90% credit guarantee coverage, effective from April 1, 2025, via CGTMSE.

-PM Vishwakarma Yojana: Introduced on September 17, 2023, covering 18 categories of traditional artisans and craftspeople, ensuring holistic welfare support.

-Self-Reliant India (SRI) Fund: Set up with ₹50,000 crore to provide equity funding for potentially scalable MSMEs with the capability to grow into larger enterprises.

-Higher Project Cost Limits: The maximum project cost in the manufacturing sector enhanced from ₹25 lakh to ₹50 lakh, and in services from ₹10 lakh to ₹20 lakh.

Minister’s Emphasis

Karandlaje stated that these interventions reflect the government’s strong focus on credit facilitation, formalization of micro enterprises, skill support, and equity funding, all aimed at generating employment and enhancing MSMEs’ role in India’s economic growth.

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Hindusthan Samachar / Jun Sarkar