Pradhan Mantri MUDRA Yojana (PMMY) which extends collateral free loans upto Rs.10 lakh to individuals to enable them to set up or expand their business activities

New Delhi : To address the regular working capital requirement of Micro, Small and Medium Enterprises (MSMEs) the Government has taken initiatives under the Aatmanirbhar Bharat Package which inter-alia includes measures such as (i) Rs. 5.00 Lakh Crore under Emergency Credit Line Guarantee Scheme (ECLGS) for businesses, including MSMEs. The validity period of the scheme has been extended till 31.03.2023; (ii) PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme to facilitate collateral free working capital loan to street vendors.

In addition of the above, MSMEs have also been supported for working capital assistance by the ongoing schemes & measures i.e. (i) Credit Guarantee Scheme (CGS) to strengthen credit delivery system and to facilitate the flow of credit to the Micro and Small Enterprise sector without the hassles of collateral and third party guarantee up to a maximum of Rs. 200 lakh; (ii) Pradhan Mantri MUDRA Yojana (PMMY) which extends collateral free loans upto Rs.10 lakh to individuals to enable them to set up or expand their business activities. As per Gazette Notification(S.O. 5670(E) dated 8th November, 2018, it is mandatory for all Central Government Ministries / Departments/ CPSUs to procure at least 25% of their annual procurement from MSEs including 4% from MSEs owned by SC/ST entrepreneur and 3% from MSEs owned by women entrepreneur. Micro and Small Enterprises, quoting price within price band of L1+15 % are allowed to supply a portion of requirement by bringing down their price to L1 price under public procurement policy. In order to address the uncertainties and unhealthy competition from corporate giants, 358 items are exclusively reserved for manufacture by Micro & Small Enterprises; and No global tenders for procurement up to Rs. 200 crore.

 

This reply was given by the Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply in the Rajya Sabha.

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