RELIEF TO MSMEs
NSIC facilitates availability of key raw materials like Steel, Aluminium, Copper, Zinc, Polymer, Bitumen, Emulsion, Cement etc., from bulk producers by entering into MoUs with them and provides these raw materials at competitive prices to MSMEs. Further, NSIC is implementing Raw Material Assistance (RMA) Scheme to provide credit support to MSMEs for procurement of raw materials from the bulk manufacturers with whom NSIC has made arrangements as well as any other suppliers identified by the MSME(s).
The details of the assistance provided to MSMEs by NSIC under Raw Material Assistance Scheme in last two years and current year are as under:
Financial year No. of units supported Credit support provided (Rs.in lakh)
2019-20 2842 524495.62
2020-21 2699 439843.75
2021-22 2445 308303.03
(upto 26.11.2021
Government of India has taken various steps to ensure continuous supply of raw materials to MSMEs including steel. Some of the steps taken to meet the raw material demands of MSMEs in the Steel Sector are as under:\
(i) Government has taken various steps to increase availability of iron ore and steel which include, inter-alia, Mining and Mineral Policy reforms to ensure enhanced production and availability of iron ore, early operationalization of forfeited working mines of Odisha by the State/Central PSUs etc., besides ramping up production and capacity utilization by steel producers.
(ii) In Union Budget 2021-22, Customs Duty has been reduced uniformly to 7.5% on Semis, Flat and Long products of non-alloy, alloy and stainless steels. Further, Basic Custom Duty (BCD) on steel scrap has been exempted for a period up to 31 st March, 2022. In addition to the above, ADD and CVD on certain steel products have also been revoked / temporarily revoked.
(iii) To give relief to secondary and MSME sector steel industry engaged in Housing/construction sector, TMT bars below 8 mm have been exempted from the purview of the Quality Control Order, as these are primarily used for non-critical applications;
(iv) Ministry of Steel has also issued clarifications to CPWD, MoRTH etc., that steel produced through various routes of production using iron ore, steel scrap and DRI should be treated at par if the steel produced conforms to the relevant BIS standards.
EMPLOYMENT OPPORTUNITIES IN MSMEs
As per 73rd Round of NSS Report on Unincorporated Non-Agricultural Enterprises’ (July 2015- June 2016) conducted by Ministry of Statistics & PI (MoSPI), the estimated number of persons employed in MSMEs are about 11.10 crore. Under the Prime Minister’s Employment Generation Programme (PMEGP), the estimated employment generated (number of persons) in micro enterprises during the year 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 (as on 15.11.2021) are 4.08 lakh, 3.87 lakh, 5.87 lakh, 5.33 lakh, 5.95 lakh and 2.90 lakh respectively.
The Ministry of Micro, Small and Medium Enterprises (MSMEs) implements various schemes to increase employment opportunities of MSME sector in the country. These include PMEGP, Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and a Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE).
Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 Pandemic. Some of them are:
i. Rs 20,000 crore Subordinate Debt for MSMEs.
ii. Rs 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
iii. Rs. 50,000 crore equity infusion through MSME Fund of Funds.
iv. New revised criteria for classification of MSMEs.
v. New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.
vi. No global tenders for procurement up to Rs. 200 crores, this will help MSME.
As reported by the Credit Guarantee Trust for Micro and Small Enterprises on 16.11.2021, 754 guarantees amounting to Rs. 81.47 Crore have been approved under Credit Guarantee Scheme for Subordinate Debt (CGSSD). As part of the Aatma Nirbhar Bharat Abhiyaan, under the Emergency Credit Line Guarantee Scheme (ECLGS), an amount of Rs. 2.82 lakh crore has been sanctioned as on 12.11.2021.