Enhanced credit guarantee coverage under CGTMSE to benefit 27 lakh women-led MSMEs: Manjhi

CGTMSE scheme benefits: Women-owned micro and small enterprises will get enhanced credit guarantee coverage of 90 per cent under the CGTMSE scheme after its board approved the new guidelines last week, Union Minister Jitan Ram Manjhi said on Tuesday.

The decision is expected to benefit 27 lakh women-led MSMEs, he said.

This is a significant step towards improving access of women entrepreneurs to collateral free-credit from banks.

Prior to the approval of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Board, women-owned units were entitled to getting 80 per cent credit guarantee coverage.

Talking about the enhanced guarantee coverage of 90 per cent, the minister said "27 lakh women-led MSMEs are expected to benefit from this initiative".

Briefing the media on the achievements of the Ministry of Micro, Small and Medium Enterprises in the first 100 days after the Narendra Modi -led government returned to power at the Centre, Manjhi said a grand programme is being organised in Wardha, Maharashtra, on September 20 to mark one year of the PM Vishwakarma Scheme. The event is likely to be attended by the Prime Minister.

The MSME minister said 5.07 crore MSMEs have now been formalised, with the total number of jobs created reaching 21 crore.

Under the Prime Minister Employment Generation Programme (PMEGP), approvals have been accorded during the past 100 days whereby 26,426 new micro enterprises have been established with loan disbursements of Rs 3,148 crore, the MSME ministry stated.

The move is expected to generate income and employment for over 2.11 lakh people, with enhanced rural and urban entrepreneurship, it said.

Manjhi said the ministry is in the process of establishing 14 technology centres across the country, including Nagpur, Pune, and Bokaro, with an investment of Rs 2,800 crore.

"These centres will be set up in the public-private-partnership mode and will provide local MSMEs access to advanced manufacturing technologies, skill development, and business advisory services.

"One lakh MSMEs will benefit from technology access, and 3 lakh youth will be trained in the next five years," the ministry stated on the expected outcome of the 14 new technology centres.