In a recent development aimed at the evolution of the Micro, Small and Medium Enterprises (MoMSME) sector in India, the Ministry has introduced three sub-schemes under the RAMP programme.
The Sub-Schemes under the RAMP Programme
The first sub-scheme is the MSME Green Investment and Financing for Transformation Scheme (MSME GIFT Scheme). It aims to assist MSMEs in adopting green technology through interest subvention and credit guarantee support. The Small Industries Development Bank of India (SIDBI) will administer this scheme.
The second scheme is the MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE Scheme). Making its debut in Government initiatives, it supports circular economy projects through credit subsidy. The goal is to help MSME sector reach zero emissions by 2070. Once again, SIDBI is responsible for executing this scheme.
The third scheme, MSE Scheme on Online Dispute Resolution for Delayed Payments, brings together legal support with information technology tools and Artificial Intelligence. It helps address delayed payments issues faced by Micro and Small Enterprises. The National Informatics Centre Services Inc. (NICSI) is the implementation agency.
Initiatives under Existing Schemes
The Support for Commercialisation of IP Programme (MSME – SCIP Programme) enables innovators in the MSME sector to commercialize their Intellectual Property Rights. Additionally, the Zero Defect and Zero Effect (ZED) Scheme is now completely free and accessible for women-led MSMEs. The government guarantees 100 percent financial support for certification cost.
The RAMP Scheme: An Overview
A World Bank-assisted Central Sector Scheme, RAMP supports various Covid Resilience and Recovery Interventions organized by MoMSME. Its key objectives include improving access to market and credit, strengthening institutions and governance at central and state levels, improving Centre-State collaboration, addressing delayed payments issues, and pushing towards the greening of MSMEs.
A critical aspect of RAMP is the development of Strategic Investment Plans (SIPs), an outreach plan developed with the involvement of all states/UTs. It will identify and target MSMEs under RAMP, recognizing key constraints and gaps, setting milestones and projecting required budgets for interventions in priority sectors like renewable energy, rural and non-farm business, wholesale and retail trade, village and cottage industries, women enterprises, etc.
National MSME Council: A Monitoring Body
The National MSME Council, headed by the Minister for MSME and with representation from various Ministries, will oversee RAMP. It will provide overall monitoring and policy review, aided by a dedicated secretariat.
Past UPSC Civil Services Examination Question
In the UPSC Civil Services Examination of 2023, an inquiry was made regarding “Micro, Small and Medium Enterprises Development (MSMED) Act, 2006”. The question asked to confirm if ‘medium enterprises’ are those with investments in plant and machinery between ₹15 crore and ₹25 crore, and if all bank loans to the Micro, Small and Medium Enterprises fall under the priority sector. The correct answer was that only the second statement was accurate.
