MSME seeks more funds in 12th Plan to run schemes effectively

NEW DELHI: Micro, Small and Medium Enterprises ( MSME) Minister Virbhadra Singh has asked the Finance Ministry to allocate more funds toward schemes for promotion of the sector during the 12th Five-Year Plan (2012-2017).

While the sector employs 60 million people through 26 million units, it contributes 40 per cent of the country's total exports and 45 per cent of manufacturing output.

"To expand the MSME sector in the next Plan period, we need more funds. We have talked to the Finance Ministry and also discussed with the Cabinet in this regard," Singh told PTI on the sidelines of an event here.

He noted that expansion of the MSME sector would be possible if both national and private banks provide funds to support various schemes.

Pointing out that there were some "gaps in the ongoing schemes", Singh said, "Nothing is sacrosanct. All the existing schemes are under review and we will fill the gap if we find they are not working properly."

The ministry has called on IIT, Delhi, and the Indian Institute of Foreign Trade (IIFT) to review its ongoing schemes, such as the Rajiv Gandhi Udyami Mitra Yojna and Assistance to Training Institutions schemes, among others.

While laying the foundation of a business park to be set up by National Small Industries Corporation ( NSIC) here, Singh said, "This is a truly innovative project which would open up tremendous opportunities to the MSMEs in expanding their marketing linkages around the world."

The NSIC's Business Park would facilitate provision of all services relating to credit support and marketing facilities at one place. Besides, there would be facilities like insurance, services for handling of exports and imports, ratings, courier and postal services among others, he said.

The park would also be utilised to organise national and international exhibitions and buyer-seller meets to support the MSME sector, he added.

Mini-Ratna public sector undertaking NSIC, which has been engaged in promoting the growth of MSME sector since 1955, has developed a large number of first generation entrepreneurs that have gone on to set up successful MSME units.