Context:
MSME Ministry launched 3 sub-schemes under RAMP programme.
- Also made ZED scheme completely free for women.
Raising & Accelerating MSME Performance (RAMP) program:
- Central Sector Scheme for MSMEs
- Assisted by – World Bank
- Objectives –
- To accelerate center-state collaboration in MSME promotion and development.
- Improving access of MSMEs to market and credit, technology upgradation.
- Important component – Strategic Investment Plans (SIPs)
- Monitored by – National MSME Council (headed by the Minister for MSME)
3 Sub schemes:
- MSME Green Investment and Financing for Transformation Scheme (MSE GIFT Scheme) –
- Intends to help MSMEs adopt green technology with interest subvention and credit guarantee support.
- Implementing agency – Small Industries Development Bank of India (SIDBI)
- MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE Scheme) –
- 1st ever scheme to support circular economy projects through credit subsidy and will lead to realizing the dream of the MSME sector towards zero emissions by 2070.
- Implementing agency – Small Industries Development Bank of India (SIDBI)
- MSE Scheme on Online Dispute Resolution for Delayed Payments (MSE ODR scheme) –
- To synergize legal support with modern IT tools and Artificial Intelligence to address the incidences of delayed payments for MSME.
- Implementing agency – National Informatics Centre Services Inc. (NICSI)
What is ZED scheme?
- Means Zero Defect and Zero Effect (ZED) scheme
- Promotes manufacturing without negative impact on environment.
- Guarantees payment of 100 percent financial support for the certification cost.
Also launched Support for the Commercialisation of the IP Programme (MSME – SCIP Programme) for MSME innovators to commercialize their intellectual property rights.
Related schemes to promote MSMEs:
- Emergency Credit Line Guarantee Scheme (ECLGS) – to mitigate the economic distress faced by MSMEs after COVID-19.
- Udyam Assist Platform (UAP) – to bring the Informal Micro Enterprises (IMEs) under the formal ambit for Priority Sector Lending (PSL).
- CHAMPIONS 2.0 Portal – single-window grievance redressal portal for MSME.
- MSME Self-Reliant India Fund – to provide support for MSMEs across the country through equity infusion.
Source: Financial Express
Previous Year Question
Consider the following statements with reference to India:
1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crores and Rs. 25 crores.
2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2023 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (b)
Explanation:
Medium Enterprise: An enterprise where the investment in plant and machinery or equipment does not exceed Rs. 50 crores, and turnover does not exceed Rs. 250 crores. Hence, Statement 1 is not correct.
The areas identified under Priority Sector Lending (PSL) in India by the Reserve Bank of India include agriculture, micro, small and medium enterprises (MSMEs), export credit, education, housing, social infrastructure, renewable energy, and weaker sections of society. Hence, Statement 2 is correct.
