Credit Guarantee Fund Trust for Micro and Small Enterprises



Credit Guarantee Fund Trust for Micro and Small Enterprises 

The Ministry of Micro, Small and Medium Enterprises, and Small Industries Development Bank of India (SIDBI), together have established a Trust named Credit Guarantee Fund Trust for Small Industries, now known as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), for implementing the Credit Guarantee Scheme for Micro & Small Enterprises (CGS). Since its inception, CGTMSE has facilitated easy access to credit from organized banking sector to first generation entrepreneurs in the Micro and Small Enterprises (MSE) sector. CGTMSE, in turn, provides guarantee to its registered Member Lending Institutions (MLIs) against the loans / credit facilities upto Rs. 100 lakh extended by them without taking any collateral security and / or third party guarantee.


As on February 29, 2016, 22,59,044 guarantees for an amount of Rs.1,06,927.55 crore have been approved by CGTMSE since inception. The State-wise guarantees approved (no. of beneficiaries and amount of credit / loan covered) under Credit Guarantee Scheme upto the current year (as on February 29, 2016) are given is: 


Credit Guarantee Fund Trust for Micro and Small Enterprises
State Wise Report  Guarantee Approved as on February 29, 2016 (Cumulative)
S.NO.
 State Name
Proposals
Approved Amount
 (in Rs. Lakh)
1
ANDAMAN & NICOBAR
1777
8948.47
2
ANDHRA PRADESH
73063
202216.13
3
ARUNACHAL PRADESH
5913
27408.98
4
ASSAM
80336
268238.58
5
BIHAR
116181
489791.86
6
CHANDIGARH
4914
31513.35
7
CHHATTISGARH
29790
164013.06
8
DADRA & NAGAR HAVELI
414
10019.43
9
DAMAN & DIU
356
8727.28
10
DELHI
25382
273903.01
11
GOA
14471
89470.95
12
GUJARAT
90242
756727.83
13
HARYANA
28753
212528.98
14
HIMACHAL PRADESH
41213
225699.55
15
JAMMU & KASHMIR
58215
123251.61
16
JHARKHAND
90305
529176.29
17
KARNATAKA
196363
992785.5
18
KERALA
211422
511848.52
19
LAKSHA DEEP
280
753.94
20
MADHYA PRADESH
77759
405407.71
21
MAHARASHTRA
163898
1201330.98
22
MANIPUR
5325
16444.6
23
MEGHALAYA
6816
30798.34
24
MIZORAM
3338
12521.91
25
NAGALAND
5143
17269.8
26
ORISSA
107716
444980.16
27
PONDICHERRY
3586
13207.25
28
PUNJAB
48048
278427.03
29
RAJASTHAN
73070
357619.12
30
SIKKIM
1765
7213.6
31
TAMILNADU
222353
875958.21
32
TELANGANA
41407
230732.43
33
TRIPURA
9261
31549.33
34
UTTAR PRADESH
252263
1054959.73
35
UTTARAKHAND
29193
147883.45
36
WEST BENGAL
138713
639428.39
Total
2259044
10692755.36
NB: Actuals may vary due to intervening cancellations/modifications
The other credit guarantee schemes and programmes available with banks wherein micro and small units are also among the beneficiaries include Credit Guarantee Fund for the MUDRA Scheme in the Department of Financial Services, Ministry of Finance and Credit Enhancement Guarantee Scheme for Scheduled Castes operated by Ministry of Social Justice and Empowerment.

This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Rajya Sabha here today.

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Working Group on rehabilitation of sick SMEs 
The Reserve Bank of India had constituted a Working Group on rehabilitation of sick SMEs, under the Chairmanship of Dr. K. C. Chakrabarty, the then Chairman & Managing Director, Punjab National Bank, to look into the problems faced by new as well as sick SMEs and suggest remedial measures. The Working Group submitted its Report in the year 2008.

The recommendations of the Working Group, inter-alia, include (i) lending in case of all advances upto Rs. 2 crore to be done on the basis of scoring model; (ii) the applications forms to be so designed that all documents required to be executed by the borrower on sanction of the loan form its part; (iii) simplified application cum sanction form be introduced in case of all micro enterprises for loans upto Rs. 1 crore and working capital under Nayak Committee norms; (iv) banks who have sanctioned term loan singly or jointly must also sanction Working Capital limit singly (or jointly), to avoid delay in commencement of commercial production; (v) introduce Centralised Credit Processing Cell; (vi) banks to focus on opening more specialised micro, small and medium enterprise branches; (vii) banks to consider introduction of Factoring Services, particularly for MSMEs (viii) new definition of sick small enterprise to remove the delay and (ix) timely identification and treatment of sickness in MSME sector.

The RBI issued guidelines to all Scheduled Commercial Banks on May 4, 2009 advising them to consider, for speedy implementation, the recommendations made by the Working Group with regard to timely and adequate flow of credit to the MSE sector. Ministry of MSME has notified a ‘Framework for Revival and Rehabilitation of MSMEs’ vide a Gazette Notification dated 29.05.2015 for the purpose of facilitating the promotion and development of MSMEs. Under this framework, any enterprise can seek revival and rehabilitation benefit through a Committee constituted by the banks which comprises representative of State Government, experts, regional or zonal head of the bank and the officer in charge of MSMEs credit department of the bank.

This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Rajya Sabha here today. 
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Employment generation for rural areas 
 The Ministry is implementing the scheme of Prime Minister’s Employment Generation Programme (PMEGP) for employment generation in the micro enterprises in the non-farm sector for rural and urban areas.  PMEGP is a credit linked subsidy scheme of Government of India, for setting up of new micro-enterprises and to generate employment opportunities in the country through Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB) and District Industries Centre (DIC). 

During the current FY 2015-16, an allocation of Rs.1275.68 crore is available, which will be utilized for setting up of about 60,000 micro units providing employment to about 4.5 lakh persons. Upto 31.01.2016, Rs. 657.84 crore margin money has been utilized for setting up of 29,174 projects and providing employment to 2.11 lakh persons in rural as well as urban areas throughout the country.
State-wise details of the number of projects assisted, margin money subsidy utilized and estimated employment generated during the year 2014-15 and 2015-16 (upto 31.1.2016) under PMEGP scheme is given is:

Sl.
No
State/UT
2015-16 (upto 31.1.2016)
Marginmoney
Subsidyallocated
(Rs. lakh)
MarginMoneysubsidyutilized #(Rs. lakh)
Number of
projects
assisted
Estimated
employment
generated
(No. of persons)
1
Jammu& Kashmir
3506.8
1267.79
769
4294
2
Himachal Pradesh
1912.88
332.04
165
652
3
Punjab
3506.8
982.95
374
2655
4
UT Chandigarh
100
38.86
16
133
5
Uttarakhand
2072.2
477.28
318
1687
6
Haryana
3347.4
1220.66
490
3920
7
Delhi
1753.4
98.44
102
821
8
Rajasthan
5260.43
1209.00
601
4578
9
Uttar Pradesh
11955
5950.44
1858
18163
10
Bihar
6057.2
3166.76
1226
9992
11
Sikkim
454.77
11.80
2
11
12
Arunachal Pradesh
1932.77
30.05
26
93
13
Nagaland
1250.62
385.44
122
579
14
Manipur
1023.23
401.46
239
772
15
Mizoram
909.6
206.07
194
1552
16
Tripura
909.54
513.65
348
2997
17
Meghalaya
1250.62
568.84
222
1776
18
Assam
3069.86
2866.94
3480
9018
19
West Bengal
3188
2891.74
1589
11623
20
Jharkhand
3825.6
1734.53
1192
9536
21
Odisha
4782
2473.51
1367
8240
22
Chhattisgarh
4303.8
1370.85
450
4178
23
Madhya Pradesh
8129.4
2103.87
544
4066
24
Gujarat*
5260.2
3085.25
664
5993
25
Maharashtra **
5738.4
2621.16
1236
9927
26
Andhra Pradesh
2072.28
1211.61
322
4191
27
Telangana
1594
1355.09
389
4742
28
Karnataka
4782
3534.98
1218
8033
29
Goa
318.82
0.00
0
0
30
Lakshadweep
100
0.00
0
0
31
Kerala
2231.6
1605.99
706
4839
32
Tamil Nadu
5100.8
1927.57
930
7315
33
Puducherry
100
29.56
19
124
34
Andaman & Nicobar Islands
100
33.10
61
157
Total
101900
45707.28
21239
146657
 #  including un-utilized  balance funds of previous year.
   * including Daman & Diu.                                                                                                             
 ** including Dadra & Nagar Haveli

In addition to PMEGP, Ministry is implementing a large number of schemes which generate direct and indirect employment.  The Ministry through KVIC and Coir Board is generating employment by implementing the schemes of Market Development Assistance (MDA), Interest Subsidy Eligibility Certificate (ISEC) scheme, Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Coir Udyami Yojana, Development of Production Infrastructure, Skill Upgradation Programmes, Mahila Coir Yojana, establishment of Livelihood Incubation Centres, etc. throughout the country.

Under Scheme of Fund for Regeneration of Traditional Industries (SFURTI), 26 clusters have been granted final approval with a total project cost of Rs.72 crore benefiting around 25000 artisans. Assistance under SFURTI would be Rs. 54.22 crore.  During the year 2015-16 (upto 31.01.2016) funds of Rs. 20.75 crore has been released.

State-wise details of Employment Generation under Coir Sector for the year 2014-15 is as under:

Sl. No.
States
2014-15
1
Kerala
590
2
Tamil Nadu
2881
3
Karnataka
245
4
Andhra Pradesh
230
5
Odisha
225
6
Others
140

Total
4311

The Ministry through National Small Industries Corporation (NSIC) offers industry oriented, demand driven skill development training programs through its Technical Centres and facilitates the trainees in employment through placement cells located at its Centres.  Entrepreneurship development training programme are also conducted at NSIC Incubation centres to create self-employment opportunities for the unemployed people. 21860 trainees passed from National Small Industries Corporation during the year 2014-15.

Under the Assistance to Training Institutions Scheme, targets are annually fixed for conducting training programmes for Entrepreneurship-cum-Skill Development Programmes (ESDPs)/Entrepreneurship Development Programmes (EDPs). The ESDPs/EDPs are aimed at generation of Wage-employment and Self-employment. As on 31.01.2016, 23057 numbers of trainees were able to get Wage-Employment and 12454 number of trainees were able to get Self-Employment.

This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Rajya Sabha here today.


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