The minister also pointed out that the state is also a hub of industrial network ranging from processed agro products, Rail Coach, Transport Equipments, Textiles, Readymade Garments and leather products etc. There are around 14.45 lakh MSME units in Punjab having employment of 26.79 lakh persons.
To address the challenges being faced by the MSMEs in recent times, the Minister, according to a statement, said that an Inter-Ministerial Committee for Accelerating Manufacturing in MSME sector was constituted under the Chairmanship of Secretary MSME to address the issues and recommend measures to strengthen MSME sector and make it more export oriented.
This committee recently in the month of September 2013 submitted the detailed set of policy recommendations to the Cabinet Secretary which is now under active consideration of the Government.
The Minister said the MSME ministry has a Central Tool Room in Ludhiana for providing the services in the area of tooling (Tool Design and Tool Manufacture), Precision Machining, heat Treatment, Technical Training and Technical Consultancy to metal working industry in general and Micro, Small & Medium Enterprises in particular so as to improve the quality and productivity of such units.
During 2012-13 around 3000 persons were imparted specialized training while around 3400 units were assisted in this Tool Room. The Minister further added that the Ministry has now decided to double the training capacity of Ludhiana Tool Room and Central Hand Tool Centre at Jalandhar.
Muniyappa said that under the Credit Guarantee Scheme so far, the government has facilitated collateral free loan to more than11 lakh Micro and Small Enterprises with the total sanctioned loan amount of Rs. 54,322 crore and in Punjab the Government assisted around 15741 units for an amount of Rs. 1053 crore under Credit Guarantee Scheme.
The meet highlighted the Important Activities of Ministry of MSME in Punjab and underlined that since inception of PMEGP about 3107 units have been set up in Punjab creating employment for around 26800 persons. In Punjab, margin money to the tune of Rs.16.91 crore was released during 2012-13 under the PMEGP assisting 770 units.
Under the Cluster Development Programme 23 interventions in Punjab have been completed and 22 interventions are ongoing. Among the interventions completed the prominent ones are Hardware cluster, electroplating, industrial estate and fasteners cluster, Foundary industry cluster, Knitted outer wear cluster, Machine tool cluster, Oil Expeller and Parts Manufacturing cluster, Printing and Packaging cluster etc. all located in Ludhiana. Many of the ongoing clusters are also located in Ludhiana.
\In this interaction various important issues were raised and the problems for getting reimbursement for the subsidy under CLCSS, increasing the maximum limit under CLCSS, TUF Scheme for bicycle/engineering industry, time bound implementation of IT, Setting up of international Exhibition centre in Ludhiana etc.
The Government has assured that these particular issues are being looked into by the Ministry of MSME and efforts are being taken to address the issues.
Furthermore, there are several issues which are under the ambit of other Central Ministries like need for CNG connectivity and supply, SEZs for bicycle and other export worthy products, uniform policy of taxation, creation of air connectivity, abolition of excise duty on bicycles, reduction in bank interest rates, increasing the import duty on bicycles and parts etc.
The MSME minister assured that these issues would be taken up with various ministries and departments, and expressed hopes that some solutions would emerge soon.