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Plan panel recommends Rs 64,790-cr infusion

business Updated: Feb 21, 2012 00:28 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Aiming to take the micro, small and medium enterprises (MSMEs) sector to the global marketplace, a working group constituted by the Planning Commission has recommended an infusion of Rs 64,790 crore for the sector in the 12th Plan (2012-17).

The group has identified seven verticals as drivers of the growth engine, comprising credit and finance, technology development, infrastructure, marketing support etc (see table).

"The new national manufacturing policy, which aims at increasing the share of manufacturing in GDP to 25% in the next decade from the present 15-16%, requires substantial support from the MSME sector, for which Rs 64,790 crore has been sought," a government source said.

The overall growth for the sector stood at around 13% during the 11th Plan.

Recognising a considerable credit gap in this sector, the working group has recommended highest allocation of Rs 19,450 crore to credit and finance. A guarantee fund with a corpus of s R2,500 crore has been recommended for venture or angel fund investment in MSMEs.

"Quantum wise, the allocation recommended is insufficient for a period of five years, because MSME sector provides large-scale employment and government should give top priority to it," said VK Agarwal, president, Federation of Indian Micro & Small and Medium Enterprises (FISME).

Khadi & village industries and coir sector has been recommended Rs 15,670 crore for revamping in a big way.