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Industry and Labour108

National Manufacturing Competitiveness Programme (NMCP)

3.68 The objective of National Manufacturing Competitiveness Programme (NMCP) is to develop
global competitiveness among Indian Micro, Small and Medium Enterprises (MSMEs). This
programme targets at enhancing the entire value chain of the MSME sector through various
components including Promotion of Information & Communication Tools (ICT) in MSME sector,
Design Clinics etc.

3.69 The NMCP programme is still under implementation. Total expenditure of about ` 122.00 Crore
has been made since the inception of the programme.

3.70 Rehabilitation package for the revival of viable sick MSEs is provided by primary lending
institutions (PLIs), including commercial banks, which provide credit to the MSEs. The rehabilitation
package is determined as per the guidelines issued by RBI from time to time. The latest guidelines
were issued by RBI in November, 2012, based on the recommendations of the Committee set up by
Ministry of MSME.

3.71 While considering the number of sick units during 2013-14, in Kerala there are 21786 units
which is 4.7% of the entire country (465487 numbers). Among neighbouring states, number of sick
units are 43743(9.4%) in Tamilnadu, 34131(7.3%) in Karnataka and 41845(9%) in Andhra Pradesh.

Impetus to Young Entrepreneurs in MSME – Credit Guarantee Fund Scheme

3.72 Credit Guarantee Fund Scheme for Micro and Small enterprises is the major scheme launched
by the Government to give impetus to the young entrepreneurs in the micro and small scale industries.
Under the scheme, credit is made available to micro and small enterprises for loans up to ` 100 lakh
without collateral/ third party guarantees. The details of contribution made by the Government and
Small Industries Development Bank of India (SIDBI) under the scheme are as below in crores:

Table 3.3
Contribution under Credit Guarantee Fund Scheme

Year Government contribution SIDBI’s contribution
2011-12 1 1.225
2012-13 7.775
2013-14 35
74.99 18.7475

3.73 Since inception of the scheme till June 30, 2014, total 15, 47,323 numbers of proposals have
been approved. The cumulative guarantee provided under the scheme till June, 2014 is ` 76845.80
crore through 114 banks among these State Bank of India, Bank of India, Punjab National Bank,
Canara Bank and Indian Overseas bank remains on top.

Box. 3.9
India Signs MoU with South Africa for Developing Youth Enterprises

National Small Industries Corporation (NSIC) a public sector enterprise under the Ministry
of MSME, Government of India signed an MoU of Cooperation with Black Business Council
(BBC) of South Africa for developing youth owned enterprises in South Africa. It is about
sharing knowledge and expertise, exchange of best practices, supporting innovation and
building capacity and skills.

Kerala State Planning Board