BUSINESS & INDUSTRIAL: MSME: Creating Skilled Manpower Scheme for Assistance to Training Institutions

The Micro, Small and Medium Enterprises (MSMEs) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby,  reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and contribute enormously to the socio-economic development of the country. 

The Ministry promotes the development of micro and small enterprises in the country with the objective of creating self-employment opportunities and upgrading the relevant skills of existing and potential entrepreneurs. In order to promote establishment of new enterprises and creation of new entrepreneurs the Ministry has been implementing various schemes and programmes.

Entrepreneurship development is one of the key elements for promotion of micro and small enterprises, particularly, the first generation entrepreneurs. Entrepreneurship, and resultant creation of employment and wealth, is a major means for inclusive development. Hence, entrepreneurship development has been one of the priorities in countries the world over. 

In order to ensure that young entrepreneurs are encouraged and suitably equipped to go into new ventures, the Ministry has been providing assistance for establishment of  Training Institutions/ Entrepreneurship Development Institutes (EDIs) for imparting entrepreneurship and skill development training. These EDIs have been providing entrepreneurship and skill development training to the first generation entrepreneurs and helping and supporting them in the establishment of their enterprises. The Government makes consistent and concerted efforts to accelerate and promote entrepreneurship by providing support for strengthening of training infrastructure as well as programme support.

The Ministry has set up three National level Entrepreneurship Development Institutes namely National Institute for Micro, Small and Medium Enterprises (NIMSME), Hyderabad; National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida and Indian Institute of Entrepreneurship (IIE), Guwahati to undertake the task of entrepreneurship and skill development on a regular basis. 

The Ministry has also been supporting the efforts of State Governments/ Union Territories, Industry Associations, Financial Institutions, Technical/ Management Institutions, other Non-Governmental Organisations (NGOs), etc. for establishment of new training institutions as well as strengthening of the infrastructure of existing training institutions.

The Scheme for Assistance to Training Institutions envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas, by providing training to first generation entrepreneurs and assisting them in  setting up of enterprises. The assistance is provided to these training institutions in the form of capital grant for creation/strengthening of infrastructure and programme support for conducting entrepreneurship development and skill development programmes.

Assistance to National level EDIs is provided under the scheme for creation or strengthening/expansion of  infrastructure, including opening of new branches/ centres and meeting revenue deficit, if any, to national level EDIs [presently 3 namely - National Institute for Micro, Small and Medium Enterprises (NiMSME), Hyderabad; National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida and Indian Institute of Entrepreneurship (IIE), Guwahati].

Assistance to Other EDIs (other than National level EDIs) is provided under the scheme to proposed new EDIs or existing EDIs for creation or strengthening/expansion of their infrastructure. The central assistance under this scheme would be only catalytic and supplementary to the contributions and efforts of the other stakeholders e.g. the concerned Institute, States/UT Governments and other developmental agencies/NGOs/Institutions etc.   

Here, the applicant Institution should possess clear title on the land required for setting up of the proposed/existing institute.  In case the land is obtained on lease hold, the tenure of the lease deed should be for at least 30 years.

The financial assistance is for specific needs of each case for construction of building, purchase of training aids/equipments, office equipments, computers and for providing other support services e.g. libraries/data bases etc.

Assistance for Training Programmes is provided under the scheme to Training Institutions, for conducting Entrepreneurship Development Programmes (EDPs) and Entrepreneurship cum Skill Development Programmes (ESDPs) and Training of  Trainers (ToTs) programmes in the areas of Entrepreneurship and/or Skill Development.


·         National level EDIs (including branches),

·         Training Institutions established by Partner Institutions (PIs) of  national level EDIs,

·         Training/Incubation centres of NSIC,

·         Training cum Incubation Centres (TICs) set up by Franchisees of   NSIC and

·         Other Training institutions with proven professional competency, capacity and experience, approved under the scheme.

Assistance is normally provided for short term courses/training programmes (non residential) only, i.e. ESDPs for 1 to 3 months (100 to 300 hours of training inputs), EDPs for 2 weeks (72 hours of training inputs) and ToT programmes (300 hours of training inputs).

The progress of the scheme is regularly monitored by the Screening Committee/Secretary (MSME) from time to time to ensure the highest quality.

(PIB Features.)

Saturday, August 18, 2012