Programmes such as Industrial Motivational Campaign (IMC), Entrepreneurship Awareness Programme (EAP), Entrepreneurship-cum-Skill Development Programme (E-SDP), and Management Development Programme (MDP) are conducted by MSME Development Institutes.
The number of trainees entering the Entrepreneurship Skill Development Programme (ESDP) – among key schemes by the Modi government to promote entrepreneurship — has grown over 5.5x in nearly 18 months. From 3,535 programmes involving 49,548 trainees around January last year, 8,164 programmes were organised involving 2,73,866 trainees as of June 7, 2021, data available with the Development Commissioner (MSME), Ministry of MSME showed. Further, the total expenditure incurred by the government on the scheme so far was Rs 33.58 crore while the total revenue stood at Rs 3.18 crore.
“Growth is fine but in the current situation how would MSMEs going to employ skilled youth as the sector itself is in a bad shape. For setting up own unit as well, getting finance isn’t easy. There are schemes by the MSME ministry but getting money is tough for working capital or for setting up the plant and machinery. How many of these trainees are setting up their own units depends on the government’s support to them. If they could set up enterprises, then it would help with the employment of skilled manpower” Avinash Dalal, National President, All India MSME Association told Financial Express Online.
Comments from DC MSME were not immediately available via email and call for this story.
Programmes such as Industrial Motivational Campaign (IMC) to encourage traditional and non-traditional entrepreneurs to set up a micro and small enterprise (MSE), Entrepreneurship Awareness Programme (EAP), Entrepreneurship-cum-Skill Development Programme (E-SDP), and Management Development Programme (MDP) are conducted by MSME Development Institutes in ITIs, polytechnics and other technical institutions. The scheme focuses on youth including potential SC/ST and women entrepreneurs, differently-abled, ex-servicemen, and below poverty line people to motivate them for self-employment or entrepreneurship as one of the career options.
20 per cent of these free programmes are conducted exclusively for weaker sections of the society including SC/ST, women, and physically handicapped people with a Rs 500 stipend per month per candidate under the Promotional Package for MSEs, as per Invest India. The government had in November 2019 issued guidelines on upscaled ESDP. The programmes had an intake capacity of 50-100 people in IMC for youth, 30-60 people in IMC for clusters, associations, and chambers; and 25 people in EAP, E-SDP, and MDP each.
While over Rs 135 crore were sanctioned under ESDP in 2019 by the government for organising skill development programmes across India through state governments, industry associations, social enterprises, and government corporations, the amount had dropped to Rs 63.6 crore in 2020, the MSME Ministry had said in its year-end review statement.
Meanwhile, the government’s premier MSME development body National Institute of Micro, Small and Medium Enterprise (NI-MSME), which trains MSMEs, individuals, and professionals for entrepreneurship development, capacity building, and more, had recorded close to 150 per cent jump in the number of trainees trained during FY21 despite a lesser number of programmes conducted amid Covid vis-à-vis preceding financial year. 95 training programmes involving 9,935 trainees were conducted in FY21 in comparison to 154 programmes involving 3,999 trainees conducted in FY20, as per the available government data.