Government of Ministry of MSME

Brief Industrial Profile of

2020- 21

Prepared by

MSME - Development Institute (Ministry of MSME, Govt. of India,) 22 Godam, Industrial Estate, -302006 Phone: 0141-2388913, Fax: 0141-2210553 E-mail: [email protected]; Web- www.msmedijaipur.gov.in

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FOREWORD

District Industrial Potential Report of Churu - is prepared by this institute under its action plan target for the year 2020-21. The information on material resources, Administrative set up, details about PSUs, Clusters situated in the district, potential for new MSMEs are embedded in this document. The Objective of this report is to expose the resource base, studying industrial scenario of the district, for the benefits of all budding/existing entrepreneurs.

I commend the efforts of Sh. K C Meena, Assistant Director (IMT) in preparing this District Profile. The District profile has been prepared on the information gathered from various Govt. departments and secondary data supplied by them. I extend my thanks to all those departments for their useful contribution in bringing out this document.

(V K Sharma)

Director

Date- 01/04/2021

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Contents

S. No. Topic Page No. 1. General Characteristics of the District 4 1.1 Location & Geographical Area 4 1.2 Topography 5 1.3 Availability of Minerals. 5 1.4 Forest 6 1.5 Agro Resources 7 1.5.1 Major Crops 7 1.5.2 Pulses 7 1.5.3 Spices 8 1.5.4 Oil Seeds 8 1.6 Tourism 8 1.6.1 Hotels 8 1.6.2 Places of Tourist Interest 8 1.7 Administrative set up 9 2. District at a glance 11 3. Industrial Scenario Of the District 15 3.1 Existing Status of Industrial Area 15 3.2 Industry at a Glance 16 3.3 Status of Udyam Registration 16 3.4 Major Exportable items 16 3.5 One district one product 17 3.6 Handloom and Handicraft items 18 3.7 Potentials for MSMEs 18 3.7.1 Service Enterprise 18 3.7.2 Potential for new MSMEs 19 4 Details of existing Clusters 20 5. Assisting Agencies for MSMEs 20 6. Contact details 21 7. List of Industries Association 21 8. Atmanirbhar Bharat related announcements in May-June 2020 22

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Brief Industrial Profile of Churu District

1. General Characteristics of the District

It is believed that the town was founded by the Jat ruler Churu in 1620 A.D and the place was named as Churu after his name in the Jangladesh region of the state. Before it came under the control of rulers of clan. Thakur Maldeo, the grandson of Rao Kandhal or Rawat Kandhal and uncle of Rao Bika, the Rathore Rajputs of ruled over the region.

During war of 1871 between Bikaner and Churu, the area came under the dominance of Bikaner. It is said that during the war between both the regions all the weapons made by copper and brass got finished, the Churu Thakur requested all the women population of his town to donate their silver ornaments so that the shells made by silver can be utilized for cannons.

Before independence it was an integral part of Bikaner . In 1948 the district came into existence as a separate state comprising three Tehsils Churu, Taragarh and Rajgarh.

Connectivity:

Air: The nearest Airport is in Jaipur (206 Km)

Rail: Churu district is served by broad gauge of Northern and Western railways. The total length of rail line is 280 k.m. The district has 39 Railways stations.

Road: Churu district is well connected by roads with important destinations of the state. The National Highway No.11 (Agra-Bikaner) passes through the district.

1.1 Location & Geographical Area.

Recognized as an entry gate to the great , Churu is located in the desert area of Rajasthan. The district is located in the eastern Rajasthan between 27`24 to 29`00 North latitude and 73 º.40 to 75 º.41 East longitudes. It is bounded by district in the

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North, by and and Hissar district of in the East, by in the South and in the West by Bikaner. Churu, like an oasis, situated in the middle of the shifting golden sand dunes, opens the gate to the great desert of Thar. The north border is neighbour of District, east by Haryana state, Jhunjhunu and Sikar districts to the southeast, to the south, and to the west. The total area of the district is 13, 85,898 hectares. It is occupied nearly 4.92 percent of the area of the state and stands eight in respect of area amongst the district of Rajasthan. The district covers 6 Tehsils Churu, Ratangarh, , Rajgarh, , and . The major attractions of Churu district are its Havellies.

1.2 Topography

District Churu is a part of the great Thar Desert. It is covered with a thick mantle of sand, is characterized by 6 to 30 meter longitudinal dunes treading north east to south west. The ground level in the district is about 400 meters above mean sea level the terrain in general is sloping from south to north. There are no big hill in the district expect some hillocks. There are no perennial rivers or streams in the district. Wells and ponds are the principal sources of water supply.

The climate of the district is dry desert with large variation in temperature. The minimum and maximum temperature recorded in the district varies from –2`c to 50`c. Relative humidity is generally below 30% except during the brief south east monsoon period when the same rises up to 60% in the district the rainy season usually lasts from July to mid-September and the normal usual rainfall is only 328 mm.

1.3 Availability of Minerals

GEOLOGY AND MINERALS:

Churu is not rich in minerals but these are found at few places. The various mineral deposits are Masonry Stone, Marble & sand stone, etc. But these deposits are very small in size and not of much economic importance.

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MAJOR & MINOR MINERALS:

Churu District is poorest in mineral resources. However, lime stone & marble and masonry stone are important mineral products of the district.

MINERAL BASED INDUSTRIES: During 2018-19 the production of minerals is given in the following table. (Production in M.T.) S.No. Minerals Mines Location No. of Mining Production in Lease M.T. 1 Brick Earth Rajgarh, Sardarshahar 12 262816 2 Masonry Stone Villages of Sujangarh 183 5408390.06 Tehsil- Randhisar, Gopalpura, Lodhasar Villages of Bidasar Tehsil- Balera, Sarothiya, Charwas, Manpura, Parewada, Charla 3 Marble Dunkar, Charwas 42 24389.30 (Tehsil- Bidasar) 4 Sand Stone Bidasar 22 108792 Source : DIC, Churu. .

1.4 FOREST

As mentioned above the district is a part of the Indian Great Thar desert. The district has only 6663 hectare area under the forest which is only 0.46% of the total area of the district. The vegetation cover in the district is almost negligible due to extremes of temperature during winter and summer and scanty rainfall established sand dunes inside Grass Reserves of inside areas, free from biotic interference, contain very poor and open forest. Important trees found in the district are Khejara, Kikar, Neem, Hingotaker, Shisham, Rohira, Bhhui, Phog, Ask, Senia, Thor, Morali, Bura, Lampre, Kucha, Mural etc.

Fox, Blue, Bull, common hare, Jackal porcupine, Bats and Bush rats etc. are found here. The common birds found here are Bulbul, kite, Owl, Pigeon, Sand Grouse, Grey pasctridge, Godavan of Guraha.

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1.5 Agro Resources :-

1.5.1 Majaor Crops:

The principal food crops of the district are Bajra, wheat, barley, gram, moong & moth, guar and mustard are the commercial crops grown here The following table indicates the area cultivation and production of major crops for the year 2018-19.

S. NO. CROPS AREA (HECTARES) PRODUCTION (TONES)

1 GUAR SEEDS 238000 121042

2 ZEERA 1374 787

3 METHI 4985 10247

4 BAJRA 204527 124936

5 WHEAT 33889 82300

6 BARLEY 7228 22713

7 MOTH 256771 38259

8 MUNG 211369 121270

9 GRAM 107092 85702

10 GROUND NUT 63451 211777

11 TIL 7573 3506

12 MUSTARD & TARAMIRA 73229 106474

Source : DIC, Churu. 1.5.2 Pulses:

S. NO. CROPS AREA (HECTARES) PRODUCTION (TONES)

1 MOTH 256771 38259

2 MUNG 211369 121270

3 GRAM 107092 85702

Source : DIC, Churu.

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1.5.3 Spices:

S. NO. CROPS AREA (HECTARES) PRODUCTION (TONES)

1 GUAR SEEDS 238000 121042

2 ZEERA 1374 787

3 METHI 4985 10247 Source : DIC, Churu.

1.5.4 Oil Seeds:

S. NO. CROPS AREA (HECTARES) PRODUCTION (TONES)

1 GROUND NUT 63451 211777

2 TIL 7573 3506

3 MUSTARD & TARAMIRA 73229 106474

Source : DIC, Churu.

1.6 Tourism:-

1.6.1 Hotels No. of Hotel-3 Star, 4 Star, 5 Star :

There are no 3 Star, 4 Star, 5 Star Hotels.

1.6.2 Places of Tourist Interest: A- Tal Sanctuary Black Buck Sanctuary Tal Chhapar is Located in Churu district, the Talchhapar Sanctuary is known for its rare black-buck. Apart from the black-buck, some of the other wild animals spotted here are jungle cat, chinkara and varied species of migratory birds. This sanctuary is located at a distance of 85 kilometers from Churu.

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B - Balaji Temple is one the famous religious spots of the district. Two fairs are organized in this temple in the month of April & October. Salasar is located on National Highway No. 65 of Sujangarh in the district of Churu.

C - Kothari and Surana Oswal Jain merchant families constructed these beautiful painted . Malji's Haveli made by Malaji Kothari is the most popular haveli. Churu is also known for bhiti chitar.

1.7 Administrative set up.

The CHURU district is presently composed of Seven Sub-divisions vis, Churu, Ratangarh, Rajgarh, Sujangarh, Sardarshahar, Taranagar, Bidasar with a view to have better control and smooth working the sub-divisions have been divided in to Seven Tehsil and Seven Panchayat Sammities. There are also 10 town, 862 number of inhabited and 55 uninhabited villages in the district. The detail of the administrative set up of the district is shown in the following table.

ADMINISTRATIVE SET-UP CHURU DISTRICT NUMBER OF NUMBER OF SUB- TOTAL S. No TEHSIL TOWNS INHABITED UNINHABITED DIVISION VILLAGES VILLAGES VILLAGES

Churu 1. Churu Churu 109 01 110

2. Sardarshahar Sardarshahar Sardarshahar 171 16 187

Ratangarh 3. Ratangarh Ratangarh 99 4 103

Sujangarh 4. Sujangarh Sujangarh 97 04 101 Chhapar

5. Bidasar Bidasar Bidasar 66 07 73

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6. Rajgarh Rajgarh Rajgarh 216 3 219

7. Taranagar Taranagar Taranagar 104 20 124

Total in 07 07 10 862 55 917 Number

Source : DIC, Churu.

2. District at a glance

S.No Particular Year Unit Statistics

1 Geographical features

(A) Geographical Data

i) Latitude 27`24 to 29`00 North

ii) Longitude 73 º.40 to 75 º.41 East

iii) Geographical Area Hectares 13, 85,905

(B) Administrative Units 2019-20

i) Sub divisions 07

ii) Tehsils 07

iii) Town 10

iv) Revenue villages 917

v) Assembly Area 06

2. Population 2011

(A) Sex-wise

i) Male 1051446

ii) Female 988101

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(B) Rural Population 1463312

(C ) Urban Population 576235

3. Agriculture 2019-20

Total Area Hectare 1385905

Area under forest Hectare 6523 Other non cultivated area “ 671

Permanent Pasture “ 37153 Other Land (Fallow area) 144761 Net area shown (Agriculture “ 1130284 Area) 4. Forest 2019-20

(i) Forest Ha. 6523

5. Livestock & Poultry

Cows 2012 Nos 347470

Buffaloes 2012 Nos. 292571

Dogs & Bitch 2012 Nos. 11341

Sheep 2012 Nos. 348522

Goats 2012 Nos. 820043

Camels 2012 Nos 33959

Horses, Ponies and other 2012 Nos. 824

Dinkies 2012 Nos. 5063

Pig 2012 Nos. 1202

(iv) Railways

i) Length of rail line 2019-20 Kms 280

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(V) Roads 2019-20

National Highway 2019-20 Kms 85.80

State Highway 2019-20 Kms 808.41

Major District Roads 2019-20 Kms 145.10

Other District Roads 2019-20 Kms 926.04

Village Roads 2019-20 Kms 2788.93

Kachacha Road 2019-20 Kms --

(VI) Communication

(a) Post offices Nos. 345

(b) Telephone Exchange Nos. 70

(VII) Public Health 2019-20

District Hospital Nos. 1

Sub-Dib Nos. 2

Samudayik Health Centre Nos. 16

Primary Health Centers Nos. 90

Uraban Primary Health Centers Nos. 5

UPHC Under NUHM Nos. 10

City Dispensry 1

Sub Health Centre 436

T.B. Hospital 02

Eye Hospital 1

Delivery Point 24x7 124

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M.T.C. Centre 1

NBSU Centre 10

Mobile Eye Operation Unit 1

Leprosy Unit 1

Florosis Unit 1

(Malaria Unit) Integrated 1 Disease Surveillance Project

SNCU 2

Food purity checking unit 1

Mobile medical unit 7

108 ambulance service 24

104 janani suraksha 15

MNHP Unit 1

NTCP Unit 1

PCPNDT Unit 1

Blood Bank 3

NCD Clinic 1

(VIII) Banking commercial 2019-20

Total branches of banks which Nos. 197 includes commercial banks and primary land development bank

(IX) Education 2019-20

Primary & Middle School Nos. 861

Senior Hr. Secondary & Sec. Nos. 1023 School ITI Govt. College Nos. 03

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Polytechnic Govt. College Nos. 1

PG/UG Colleges Nos. 21

B.Ed. Colleges Nos. 10

Ayurved Colleges Nos. 1

Medical Colleges Nos. 1

Source: DIC, Churu

3 INDUSTRIAL SCENERIO OF DISTRICT CHURU

3.1 Existing Status of Industrial Areas (2019-20)

At present there are eight industrial Areas in the district. The details related to total area, plots allotted and vacant etc. in these industrial areas has been incorporated in the following table. Position of plots upto 31.03.2020 Total Date Of Plot Plots Vacant S.no Name of I.A. Area. Construction Production Existing I.A. Planned Allotted Plot (acres) 1. Churu 24.5.79 82.56 198 192 6 - 192 Sadulpur I & II 2. 2.11.79 47.94 60 53 7 - 53 phase

Sadulpur 3 20.2.97 72.84 122 55 67 08 20 III phase

4. Sardarshar 24.9.82 93.75 295 294 1 14 280 5. Sujangarh 26.3.81 29.90 58 56 02 - 56 6. Ratangarh 28.9.84 264.75 292 226 66 30 155 7. Taranagar 11.1.96 62.50 83 67 16 22 29 8. Bidasar 9.09.98 83.40 167 139 58 08 17 Total 737.64 1275 1052 223 82 802 Source : DIC, Churu. Purposed New & Extension of Industrial Area : 1. Sardarshahar 2. Churu

PRIVATE No private Industrial Area in Churu Dist, exists.

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3.2 Industry at a glance

Churu district offers all the important infrastructure facilities essential for economic and industrial growth like water, power, transport, industrial training, industrial area etc. The status of existing industrial in the district is being given in the following table.

S.NO. NAME OF SECTOR NO. OF EMPLOYMENT FIXED CAPITAL UNITS NO. INVESTMENT (RS. IN CRORES) 1. Agro & Food Processing 347 1977 90.79 2. Non-Metallic Minerals Prducts 281 2504 95.03 3. Engineering & Metal 360 1667 18.75 4. Cotton & Textile 335 1313 09.12 5. Forest Based 775 4061 69.99 6. Leather & Animal Based 263 625 06.48 7. Chemical 149 761 39.40 8. Miscellaneous & Service 1708 6790 64.00 Total 4218 19698 393.56

Source: DIC, Churu

3.3 Status of Udyam Registration ( up to 01.04.2021) Total Micro Small Medium 4236 4154 78 4

3.4 Major exportable items:  Products/Services which are being Exported:

The items which have export potential and also being presently exported from the district are handicrafts items like wooden decorative pieces & article, leather jutes, sandal, guar gum, wood items etc. At present Eleven units are exporting their products directly & indirectly :

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S. No. Name of Units Item Quantity

1. Neel Kanth Polymers, Sardarshahar Guar Gum

2. Nolaram Dulichand Dal Mill, Sardarshahar Guar Gum

3. Nolaram Surendra Kumar , Sardarshahar Wooden Handicraft

4. Saraf Seasoning Udyog ,Sardarshahar Wooden Handicraft

5. Saraf Export, Sardarshahar Wooden Handicraft

6. Suraj Export, Sardarshahar Wooden Handicraft

7. Suraj Handicraft, Sardarshahar Wooden Handicraft

8. Suraj Art Palace, Sardarshahar Wooden Handicraft

9. Nikunj Art, Sardarshahar Wooden Handicraft

10. Indian Art , Sardarshahar Wooden Handicraft

11. Neel Kanth Gum and Chemical, Sardarshahar Guar Gum Powder

Future Potential

 Future Potential: No Future Potential in this district but There is export potential for the product only wooden items.

3.5 One district one product Wooden handicrafts select as the product in manufacturing sector while groundnut in food sector .

3.6 Handloom & Handicraft:

No. Of weavers

No. of Handloom Weavers Card Holder 41

Handloom Items 17

Cotton and Woollen Shawl, Cotton Dari, Cotton Cloth, Towell

No. of Artisans

(artisan cards issued) in this district are 1817. Trades in which artisans are working

Wooden Item, Luhar (Block smith), Earthen Pots, Embroidery, Bandhej, Tai and dies, Leather Items Desi juti, Stone Cutting etc The product wise concentration of artisans in churu district may be seen in the following table:

CONCENTRATION OF ARTISAN UNITS

S.No. Products Area of concentration

1. HandloomCloths Bidasar, Salasar Ratangarh Churu Bardasar ect. (Cotton&Woolen)

2. Furniture Wooden &Wooden Sardarashar, Ratangarh, Churu etc. Handicraft

3. Leather Items Desi juti Sujangarh, Biddasar, Rajsldesar, Rajgarh, Sardarashar, Ratangarh, Churu, Taranager etc.

4. Earthen Pots Rajgarh, , Paharsar, Sahawa, Bayan etc.

5. Luhar (Block smith) Sardarshahar, Bidasar, Sujangarh, Churu, etc.

6. Lakh Bangles Churu,Ratangarh,Loha,Taranagar

3.7 Potentials for MSMEs

3.7.1 Service Enterprises

In the district many service enterprises were working like Hotel & Restaurants, laundry, tent house, Auto mobile workshop, Mobile repairing and maintenance, offset printing, printing press, transportation etc.

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Potentials areas for service industry 1. Off Set printing and printing press 2. Hotel and Restaurants 3. Transportation 4. Laundry 5. Video & Photography 6. Motor winding & Pump Repairing 7. Motor Vehicle repairing (Two Wheeler & Four Wheeler etc.) 8. Mobile and Computer Repairing 9. Automobile workshop 10. Cold Storage 11. Photo State Machine 12. Data Processing

3.7.2-Potential for new MSMEs Churu district is backward area in perspective of industries and is declared no industry district by Central govt. and various facilities are given to these units by the Govt. due to lack of infrastructure facilities, Metallic entity, forests. Real entrepreneurs and incessant famine are the prominent reasons for industrial backwardness of the district.

Millet, Kidney-bean, Moth, gram, mustard, Tara Mira and Ground Nuts are cropped abundantly in this area. The agriculture is based on the monsoon out rightly, In some tehsils, irrigation is made by extracting water from wells but it is not successful due to salty and deep water. Hence, the future of agriculture-based units is dependent on Monsoon.

Only masonry and marble stones are available as a metallic in the district. Masonry stones are available in Randhisar Hill, Lodasar, Biramsar and Gopalpura where stone grit units are establishing. Marble stones are extracted in village Dunkar, tehsil Sujangarh that are colored linear but not superior to other marbles. There is potentiality of setting up some more units manufacturing Marble Tiles in the area.

There are 1860995 animals in the district as per the census of 2012. A live stock based unit. i.e. Shoes making, leather and woolen dyeing may be set up in the district.

The infrastructure facilities are available in Industrial area developed by RIICO in all tehil i.e. Churu Sujangarh, Saradashahar, Rajgarh, Ratangarh, Taranagar and Bidasar..

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4 Details of existing Clusters

A -MSME

No clusters going on in MSMEs.

B -Handicraft

There is “Hathkargha Cluster, Dariba” established in this district, in which common facility centre is also existing. Due to decreasing number of weavers same has been closed.

5. ASSISTING AGENCIES FOR MSMEs

Following are the brief description of different agencies for rendering assistance to the entrepreneurs.

S.No Type of assistance Name and address of agencies

1. On line Udyam Registration

2. Identification of Project Profiles, techno-economic and MSME-Development managerial consultancy services, market survey and Institute,22- Godown, economic survey reports. Industrial Estate, Jaipur

3. Land and Industrial shed RIICO,Churu

4. Financial Assistance RFC, Churu Various commercial Banks

5. For raw materials under Govt. Supply RSIC,Udyog Bhawan, Tilak Marg, Jaipur NSIC,Nehru place, Tonk Road, Jaipur

6. Plant and machinery under hire / purchase basis. National Small Industries Corp., Nehru place, Tonk Road, Jaipur

7. Power/ Electricity Vidyut Vitran Nigam Ltd., Churu

8. Technical Know – how MSME-Development Institute,22- Godown, Industrial Estate, Jaipur

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9. Quality & Standard BIS,Manak Bhawan, Chitranjan Marg, C- Scheme, Jaipur

10. Marketing /Export Assistance NSIC,Nehru place, Tonk Road, Jaipur

11. Other Promotional Agencies KVIC,Jhalan Dungri, Jaipur DGFT,Udyog Bhawan, Jaipur ECGC,S.C. Road, Jaipur Raj. Pollution Control Board, Jhalana Dungri, Jaipur

6. Important Contact Numbers

Name of the office & Name of the Department/ Contact Nos. Designation of the officer Association

Asstt.Director, MSME-DI, Jaipur MSME-DI, Jaipur 7734036428

GM , DIC DIC, Churu 01562-250936

Regional Manager RIICO, Churu 01562-250909

LDM BO , Churu 01562-251412

DIO KVIB, Churu 01562-250936

Br. Manager, RFC, Churu 01562-250200

DSO DSO,Churu 01562-250403

APRO PRO, Churu 01562-250905

DEO DEO, Churu 01562-252021

7--List of Industries Association

S Name and address Name of contact Phone and email No Person (Sh.) fax 1 RIICO Udyog Ghanshyam suthar 9414069882 [email protected] Sangh, Ratangarh Bajrang lal jangid 9414401918 2 Yuva udyami Sangh Madan lal Jangid [email protected] Sujangarh Parmeshwar Karwa 9413192711 3 Vishwakarma Viswanath Jangid 9414333870 [email protected] Udyog sangh churu Ajeet agarwal 9414214398 4 Udyog Sangh, Shankar lal 9461606622 [email protected] 21

sardarshar premani Ratan lal jangid 94143148373 5 Sardharshar Banwari lal Jangid 9414086042 [email protected] Handicrafts association, sardarshar Kailash Pareek 9461191101 6 Riico udyog sangh, Jagdish Prasad 9413361937 [email protected] sadulpur Yogender Kumar 9414086955 rathi 7 Laghu Udyog Dault Ram Tanwar 9414333693 [email protected] Bharti Subash Jangid 9413361718 8 Bidhasar Udyog Pardeep Kumar 9414895764 [email protected] Sangh Pareek 9 Audoghik Vikas Sanjiv Bansal 9414511407 [email protected] Samiti Taranagar Mahesh Chachan 8104656625 10 Yapar and Udyog Anjani Kumar 9414066904 [email protected] Mandal

8.Atmanirbhar Bharat related announcements in May-June 2020

A. Rs 20,000 crores Subordinate Debt for Stressed MSMEs B. Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds C. Global tenders to be disallowed up to Rs 200 Crore D. New Definition of MSMEs E. Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs

A. Rs 20,000 crores Subordinate Debt for Stressed MSMEs

Objectives:- • Subordinate debt will provide a substantial help in sustaining and reviving the MSMEs which have either become NPA or are on the brink of becoming NPA.

•Promoter(s) may infuse this amount in MSME unit as equity and thereby enhance the liquidity and maintain debt-equity ratio.

•In a situation, where an outright loan is

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difficult, sub-debt with guarantee will provide the requisite financing to the MSME Units.

This Scheme seeks to extend support to the promoter(s) of the operational MSMEs which Eligibility/ Applicability:- are stressed and have become NPA as on 30th April, 2020.

•Promoter(s) of the MSMEs will be given credit equal to 15% of their stake (equity plus Nature of Assistance:- debt) or Rs. 75 lakh whichever is lower.

•The maximum tenor for repayment will be 10 years. There will be a moratorium of 7 years on payment of principal.

•Guarantee for the sub-debt: 90% guarantee coverage would come from the scheme / trust and remaining 10% from the concerned promoter(s);

MSMEs meeting the eligibility criteria may approach eligible Banks. How to Apply:-

Contact:- • Lending bank branch,

• CEO, CGTMSE, SIDBI, Swavalamban Bhavan, C-11, GBlock, BKC, Bandra (East), Mumbai 400051.

• Email: [email protected] • Phone No: (022): 67221553, 67221483

• Toll Free No: 1800222659/ (022) - 67221553

• Guidelines of this scheme can also be downloaded from : http://dcmsme.gov.in/AccesstoCredit.htm https://champions.gov.in/MyMsme 23

https://www.cgtmse.in/About_us.aspx

B. Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds

Description Fund of Funds (FoF] with Corpus of Rs 10,000 crores will be set up. It will provide equity funding for MSMEs with growth potential and viability. FoF will be operated through a Mother Fund and few daughter funds. Fund structure will help leverage Rs 50,000 Crore. It will help to expand MSME size as well as capacity. It will encourage MSMEs to get listed on Stock Exchanges.

Status as on date Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 01.06.2020 has approved the proposal of Fund of Funds (FoF) with a corpus of Rs. 10,000 crores. It will provide equity funding for MSMEs that exhibit growth potential and viability. The NSIC Venture Capital Fund Ltd. , the subsidiary company of National Small Industry Corporation Ltd. (NSIC) has been incorporated under Companies Act 2013 for anchoring of Funds. The Guidelines on Self Reliant India (SRI) Fund for operationalisation of Fund of Funds for MSMEs have been issued on 5th August, 2020 and it’s implementation is under way.

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C. Global tender to be disallowed up to Rs 200 Crore

Description Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, Global tenders will be disallowed in Government procurement up to Rs 200 crores. The announcement was made as part of the Atmanirbhar Bharat Package. Necessary amendments to General Financial Rules have been notified. This will be a step towards Self-Reliant India and support Make in India. This will also help MSMEs to increase their business.

D. New Definition of MSMEs

Description MSMEs have been redefined as per the Gazette Notification issued on 1st June 2020 which has further been superseded by S.O. 2119(E) dated 26.06.2020 w.e.f. 01.07.2020. The new MSME definition focusses on composite criteria of investment and turnover and is represented in the following table:

New MSME Classification w.e.f July 1st, 2020

Composite Criteria : Investment in Plant & Machinery or Equipment and Turnover

Classification Micro Small Medium

Manufacturing & Investment does not Investment does not Investment does not Services exceed Rs 1 Cr. and exceed Rs 10 Cr. exceed Rs 50 Cr. Turnover does not and Turnover does and Turnover does 25

exceed Rs 5 Cr. not exceed Rs 50 not exceed Rs 250 Cr. Cr

E. Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSME

Description Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020: 1. Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible 2. Loans to have 4 year tenor with moratorium of 12 months on Principal repayment 3. Interest to be capped 4. 100% credit guarantee cover to Banks and NBFCs on principal and interest 5. Scheme can be availed till 31st Oct 2020 with no guarantee fee and no fresh collateral.

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