Credit and Finance for MSMEs: Funds released below the National SC/ST Hub, which is operated by MSME Ministry’s National Small Industries Corporation (NSIC) for economic help to SC/ST entrepreneurs, has jumped 50 per cent in FY21. According to the government information, Rs 120 crore had been released in FY21 in comparison to Rs 79.65 crore in FY20 that had improved marginally from Rs 77.78 crore in FY19. The capital help is intended towards assisting such entrepreneurs to “fulfill the obligations under the Public Procurement Policy for Micro and Small Enterprises, adopt applicable business practices and leverage the Standup India initiative with an objective to promote “enterprise culture” amongst the SC/ST population,” MSME Minister Narayan informed Rajya Sabha on Monday with the information on the National SC/ST Hub.
According to the revised price range estimates, Rs 120 crore had been allocated below the hub, up from Rs 80 crore in FY20, and Rs 78.30 crore in FY19. The government had setup 15 National SC/ST Hub Offices (NSSHOs) across the nation for mentoring and handholding SC/ST entrepreneurs across places which includes bid participation, finance facilitation, participation in specific vendor development programmes, CPSE connects, e-tender trainings, GeM, Udyam registration, and so on.
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Rane informed that below the capacity constructing programme of NSSH, 26,360 SC/ST candidates have been educated even though the scheme has been helpful to address the troubles of the SC/ST entrepreneurs and has enhanced their participation in the public procurement procedure. According to the MSME Sambandh portal, SC/ST entrepreneurs share in the public procurement has remained about .55 per cent because FY19 against the 4 per cent annual sub-target set for central ministries, departments, and PSUs to procure out of their 25 per cent annual target from MSEs. In truth, the quantity of procurement has declined from Rs 824 crore in FY19 to Rs 753 crore in FY21. As of August 2, 2021, Rs 126 crore worth procurement was made via 344 SC/ST entrepreneurs in FY22.
Meanwhile, below the government’s credit scheme for SC/ST and girls entrepreneurs – Standup India, which facilitates bank credit involving Rs 10 lakh and Rs 1 crore, has sanctioned 1,16,266 loan applications amounting to Rs 26204.49 crore because inception, according to the information from Department of Financial Services, TheSpuzz Online had reported last month. Launched in April 2016, the quantity of applications sanctioned grew 27.3 per cent from 91,319 sanctioned as of March 10, 2020, up from 55,342 applications as of March 7, 2018. The information from the finance ministry was shared by MoS for Social Justice and Empowerment Pratima Bhoumik in Lok Sabha today lately.