Despite being labelled most backward state in the country, Bihar has the maximum number of MSMEs in the country.

This fact was revealed by MSME Minister Kalraj Mishra in Lok Sabha on July 25. Replying to a question of Om Prakash Yadav, BJP MP from Siwan, Bihar, Mishra revealed that the number of MSMEs in Bihar was 4.80 lakh under Udyog Aadhar Memorandum (UAM).  While MSME presence in SSI and EM registration was abysmal in Bihar, under UAM paradoxically it is maximum. Total number of registered MSMEs in the country under UAM, EM and SSI are 55.47 lakh till Nov 7 this year.

Earlier MSME units were being registered as small scale industry (SSI) up to September 9, 2006 and from September 9, 2006 to September 18, 2015 as Enterprise Memorandum II (EM II).

According to the data available on the UAM website, there are about 17.87 lakh registered MSMEs using UAM in India out of which 4.80 lakh are from Bihar including 4.73 lakh micro units, 6.5 thousands small units and 2.3 hundred medium units.

Various Schemes to propel the growth of MSMEs

Mishra told the Lok Sabha, “The MSME Ministry has been implementing several schemes and programmes for development of the sector in the country. Major  schemes include Credit Guarantee Scheme for SMEs, Credit Linked Capital Subsidy Scheme (CLCSS), Cluster Development Programme,  Prime Ministers’ Employment Generation Programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFRUTI), A Scheme for Promotion of  Innovation, Entrepreneurship and Agro Industry (ASPIRE) and National Manufacturing Competitive Programme(NMCP).”

Funds allocated to MSME Ministry

Replying to the question that the funds allocated for the purpose during each of the last three years and the current year, the minister said, “For implementing various schemes for the development of MSMEs, Government allocated Rs. 2600 Cr, Rs. 2500 Cr and Rs. 2620 Cr, respectively for 2013-14, 2014-15 and 2015-16 r. Plan Outlay for the year 2016-17 is Rs. 3000 Cr.”

While Ministry was unable to spend the full allocated fund as actual expenditure was Rs 2281.15, Rs. 2391.19 and Rs 2440.56, respectively for 2013-14, 2014-15 and 2015-16. In the current fiscal year, ministry has spent Rs 805.29 cr till June 30, 2016.

Arvind Kumar Singh, Secretary General, Bihar Industries Association said, “New government has taken some steps to propel the growth of industries in the state. New Industrial policy is one of that which is helping a lot to industries in Bihar. Investors are coming. Now, State has the capability to reach the maximum growth in the country.”