Year Ender 2020 Review: Fund of Funds Scheme, Champions Portal Among Major Highlights of MSME Ministry

The Ministry of Micro, Small and Medium Enterprises (MSME) has undertaken several path-breaking/ important initiatives during the year 2020. These include putting in place financial support mechanism through Fund of Funds, broadening definition of MSMEs, introducing IT based Champions platform to provide solutions to issues of MSMEs, encouraging entrepreneurship amongst khadi & village industries and to promote self-employment. The following paras provide glimpse of various initiatives of the Ministry during 2020:

i) Distressed Assets Fund -Subordinate Debt for MSMEs- Credit Guarantee Scheme-

Sub Debt (CGSSD):

ii) Fund of Funds Scheme for MSMEs:

(i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees; MSME Sector Created 11 Crore Jobs in India, Says Nitin Gadkari.

(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and

(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

The new classification has come into effect from 1st July, 2020. This has been done in order to be realistic with time and to establish an objective system of classification and to provide ease of doing business. The earlier criterion of classification of MSMEs under MSMED Act, 2006 was based on investment in plant and machinery/equipment. Since then, the economy has undergone significant changes. It was different for manufacturing and services units and was also very low in terms of financial limits.

Recent initiatives:-

Achievements of 18 MSME Technology Centres (TCs) during the period January 2020 to 25th November 2020 are listed below.

Developing Import Substitute or assistance in development of Import Substitute (as part of Atmanirbhar Bharat initiative):-

a) Japanese Ultimate Quick Changer (JUQC) Mechanism which is used in continuous casting process in Steel industries.

b) AL-90 Slide Gate Mechanism used at a temperature of 1550°C to control the flow of molten steel from ladle to Tundish in steel plant. It is assembled and being tested. This will be installed in the largest ladle of 350T capacity in JSW Dolvi, Maharashtra.

c) Auto coupler of Argon gas injector through reverse engineering for Tata Steel Ltd. It was being imported from DMG Germany (a manufacturer of machine tools).

d) Refractory Handling Fixture (Import Substitute) for Tata Refractories Ltd. The fixture will be used for replacement of Refractory Nozzle from AL80 Slide Gate Mechanism which works at more than 1500°C.

For Covid-19 related, MSME TCs have developed, manufactured various components/products and shared these with MSMEs for domestic/indigenous production and marketing. Details are as follows:

Achievements under the CLCS-TUS schemes during the period January 2020 to November 2020 are listed below.

Interventions undertaken under National SC-ST Hub and the achievements during the period January 2020 to November 2020 include the following:

New Products launched by Khadi and Village Industries Commission (KVIC):

(vii) Apiary on Wheels:

(viii) State-of-the-art Footwear Training Center for Leather Artisans in Delhi:

(ix) Performance of Khadi & Village Industries:

(Rs. in crore and Employment in lakh persons)

to

31st October, 2020

(PIB Press Release)