Ministry of Micro, Small and Medium Enterprises (MSME) has been making policies for the sector which is the backbone of country’s economy. But, the job of implementing these policies is being handled by Development Commissioner (DC) SN Tripathi who is also an additional secretary in the Ministry. He had a free-wheeling chat with SMEpost.com Editor, Sharad Gupta.
Here are the excerpts….
Q: People are not aware of most of the schemes of the Ministry. How will you reach small industries and clusters in small cities?
A: Micro, small and medium industries’ spirit is not so vibrant in villages. So our strategy is to work with our regional offices like MSME-DI, GMDIC etc. Secondly, we always try to coordinate with Industry Associations and tell them about our schemes and facilities. National MSME Board is also there which works under The Union Minister. All these people including Industry Associations’ representative, ministers and secretaries are members of the board. Apart from this, many websites like #SMEpost are working for MSMEs and creating awareness. So with all these concerted efforts, MSMEs are getting information. Yes, it is not sufficient, it needs more efforts and campaigning.
Q: Like, if we talk about Udhyog Aadhar, then only 10 to 15 % got registered. It means 85 to 90 % are not registered. This number is huge!
A: There are total 6 Crore MSMEs. Out of which only 12-13 lakh were registered till 2006. EM1 and EM2 were launched in 2006 which was at GM-DIC level. Before setting up of an industrial unit, there was EM1 and after this there was EM2. During this period only 15 lakh people got registered. So, total 30 lacks people were registered till 2010. Udhyog Aadhar came into effect in Sep 2015 for ease of doing business. We changed the EM1 and EM2 into Udhyog Aadhar. One can register himself for Udyog Adhar using self certification and Aadhar number within 5 minutes. There are only 14 to 15 questions. One can easily give answers and get registered with us. Earlier, average registration was 3 lakh in a year but now 11 lakh people got registered till now. So if there is facility and ease of process then definitely people will try to register their businesses.
Q: But in 6 Crore enterprises, only 11 lacks got registered. Isn’t it still very less?
A: Yes, It is. But gradually it is increasing. Almost 4 to 5 thousand people daily are being registered with us. Recently, we have started MSME Data Bank too. If one wants to get benefitted by Governments policies then you have to give brief information about your business through MSME Data Bank. Udhog Aadhar is not verified, it is fully based on self certification. In MSME Data Bank, we are trying to get verified data provided by registered people which will help in public procurement. So it will also help us in processing and planning.
Q: You said that you are coordinating on DIC level. So is there a procedure that your regional managers go to their separate areas at least once in a week and tell the people about schemes and facilities provided by government? So that people get known about all government initiatives?
A: See, MSMEs is basically responsibility of state governments because they need land, electricity, municipal facility, local market facility etc. Central government tries to provide further help in these matters. Our help delivers better result where ever ecosystem is good. We do not plan district wise or block wise. Yes, we try that at director level and GMDIC level, there must be awareness and people get benefitted by our schemes. Neither we can reach at district level nor is it our aim. But whatever we are doing, we try to spread it at state level and GMDIC level. Through GMDIC, state government gets benefitted from our facilities.
Q: Would it not be better if government puts all schemes on a notice board in frequently visited places like DM’s office and GMDIC’s office?
A: Your suggestion is really good that if there is a board or flex at DM’s office and other government offices so people can get known easily about our schemes. It is also a way of campaign and spreading awareness like radio, television, websites etc and many more in modern times. Yes, we will consider this. But right now, we are progressing with state government’s help and information.
Q: Is there any mechanism to monitor those who avail government’s schemes or facilities?
A: Yes, we also monitor them. Let’s take example of PMEGP for new business. So after 3 year, it is possible to adjust our subsidy. If the business does not perform well for 3 years, we are not bound to extend it subsidy. If you are doing lean manufacturing then in review, we see that how much benefit you gain; you improve quality or not etc. Yes, we do not continue it many years, but yes for 2 or 3 years we do it.
Q: Is the ministry coming up with new schemes?
A: The government initiated two schemes last year. One is ASPIRE through which we establish livelihood business incubators, technology business incubators etc at district level. It also created funds. Second is SFURTI in which we promote artisan’s clusters. We also changed the cluster developments scheme- MSE-CDP scheme. We made it easy in process. Earlier for diagnostic and DPR, one has to come to Central government for many time but now we limit it to only state level. One need to come to us only when one has got detail project report and is ready for common facility centre. We are also making SC-ST hub for entrepreneurs. We are working on a scheme for North-East region so that we can help more MSMEs there.
Q: Basically small industry is suffering from Technology up gradation, marketing, finance. You have different schemes for these different problems. But is there any scheme or facility which solves all these problems at one go?
A: Actually there are 5 problems for small industry. One is credit related, second is technology related, third is skill related, fourth is market related that the product is selling or not and finally infrastructure related problem. It means that small industry needs an eco system. We try to solve these problems in every possible way. Take example of credit related problem. WE know that many MSMEs are working with their own money. So we are offering them collateral free loan up to 1 Crore rupees. You will be surprised that every year 6 to 7 lacks people are getting benefit with this facility. Till now almost 23 lack people got benefitted by this scheme. We also offered CLCSS Scheme in which for modern technology, one can get 15% subsidy. We also offered skill development, tool room, SFURTI, NMCP, ASPIRE etc facilities to speed up the growth of MSMEs. We even have some courses in tool room with more than 98% placement. Yes it is in blue-collar segment but placement is good.
