MSME Questions Latest MSME MC@Q Objective Questions a c PIPE ABA Rel ial Start Complete Exam Preparation Cee roe een oes es Tere Download App Loerie rs Cases Question 1: View this Question Online > Which of the following is/are incorrect? 1, Karve Committee is related to the MSME sector. 2. The Micro, Small, and Medium Enterprises (MSME) are classified into two enterprises as per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. 3. Small scale enterprise is one in which investment in Plant and Machinery is more than twenty-five lakh rupees but does not exceed ten crore rupees 4. 1and 2 only 2. 2and 3 only 3. 1 and 3 only 4, More than one of the above 5. None of the above Answer (Detailed Solution Below) Option 3: 1 and 3 onlycoaching India’s Super Teachers for all govt. exams Under One Roof Gaye Te oad MSME Question 1 Detailed Solution The correct answer is 1 and 3 only. © Key Points + In 1966, the Village and Small-scale Industries Committee, also called the Karve Committee, noted the possibility of using small-scale industries for promoting rural development. + Hence, Statement 1 is incorrect. + A’small-scale industry’ is defin: unit. This limit has changed over a period of time. in 1960 a small-scale industrial unit was one which invested a maximum of rupees five lakh. ved that small-scale industries are more ‘labor-intensive’ ic, they use more e-scale industries, therefore, generate more employment. the production of several products was reserved for the small-scale terion of the reservation being the ability of these units to manufacture j as the maximum investment allowed on the assets of a « It was belie labor than the + For this purpo: industry; the crit the goods. + They were also given concessions such as lower excise duty and bank loans at lower interest rates. » Important Points + The Micro, Small, and Medium Enterprises (MSME) are classified into two enterprises as per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. Hence, Statement 2 is correct. + These are Manufacturing Enterprises Service EnterprisesInvestment in equipment Investment in plant & machinery Enterprises Micro] Does not exceed Does not iwenty-five lakh lexceed ten rupees. lakh rupees. More than twenty-five ismallflakh rupees but does |More than ten Inot exceed five crore _|!@kh rupees rupees. Hence but does not statement 3isnot [exceed two crore rupees. More than two] crore rupees but does not lexceed five coe Ea Start Complete Exam Preparation CRC R eros Gees pecs Mock Tests Doster Question Bank Pre) Download App Question 2: View this Question Online > With reference to the Micro Small and Medium Enterprises (MSMEs), Consider the following statements: 1. This sector is the largest employer of human resources in India. 2. It generates more employment opportunities per unit of capital invested compared to large industries. 3. These industries in India account f6r 459% of the industrial units in the country. How many of the above statements are correct? 4. Only one a 2. Only two3. All three 4. More than one of the above 5. None of the above Answer (Detailed Solution Below) Option 1 : Only one MSME Question 2 Detailed Solution The correct answer is Only one. © Key Points Micro, Small and Medium Enterprises (MSME): A + Small Scale Industries in India have a large share of contribution to the socio-economic and balanced regional development of the country. + These industries in India account for 95% of the industrial units in the country. Hence, Statement 3 is not correct. * Micro Small and Medium E > (MSMEs) have the second-largest share in terms of human resource employabil the Agriculture sector. Hence, Statement 1 is not correct. + It supplies an enormous variety of mass consumption products which includes readymade garments, hosiery goods, stationery items, soaps and detergents, plastic and rubber goods, processed foods and vegetables, etc. + MSMEs sector generates more employment opportunities per unit of capital invested compared to large-scale industries. Hence, Statement 2 is correct. + That is why they are considered to be less capital intensive and more labour intensive. This is a boon for a labour surplus country like India. * With around 36.1 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities. + MSME ministry has seta target to up its contribution to GDP to 60% by 2025 as India becomes a $5 trillion economy. + It contributes around 45% of the overall exports from India. & ree era) Pela me MCh m rele L ied) Reo aE asrand frosted MasterClasses Question Bank Download App Question 3: View this Question Online > The RAMP programme proposed in the budget 2022-23 is related to: 1, Access to toilets/and the safety, convenience and self-respect of women in rural India -” ‘competitiveness in the MSME sector 3. improving nutritional outcomes for children, pregnant women and lactating mothers 4. More than one of the above 5. None of the above Answer (Detailed Solution Below) Option 2: boosting competitiveness in the MSME sector MSME Question 3 Detailed Solution em The correct answer is option 2. © Key Points 4 The raising and Accelerating MSME Performance (RAMP) program — + The Union Cabinet chaired by Prime Minister Narendra approved an $ 808 million (86,062.45 crores) World Bank assisted program on a new scheme RAMP. + It is expected to commence in the financial year 2022-23 (FY23). + It isa five-year duration (2: x 2025-26) new Central Sector Scheme, with a total project cost of INR 6062.45 Cr, of which the World Bank contribution is INR 3750 Cr (USD 500 Mn) and the remaining is funded by Govt. of India. + RAMP is an intervention designed on the basis of the UK Sinha Expert Committee report which recommended varjouc reaulatory financial and imnlementation reforms to provide: About the RAMP schemetargeted interventions to MSMEs across recognized challenge areas. Aimed at: + Improving access to market and credit + Strengthening institutions and governance at the Centre and State + Improving Centre-State linkages and partnerships + Addressing issues of delayed payments and greening of MSMEs India's #1 Learning Platform Ree ee ey yore Start Complete Exam Preparation es resis Exes ees fee an pero Download App Question 4: View this Question Online > With reference to the Micro Small Medium Enterprises (MSME), Consider the follo 1g statements: 1. It is the country's second-largest employment generating sector, second only to agriculture. 2. MSME sector contributes around 19% of the overall GDP. 3. More than half of the MSMEs are based in rural areas. How many of the above statements are correct? 1. Only one 2. Only two 3. All three 4. More than one of the above 5. None of the above ‘Answer (Detailed Solution Below) AS) SsnenasOaNoReMSME Question 4 Detailed Solution The correct answer is Only one. © Key Points Importance of the MSME sector in the Indian economy Employment provider + It employs around 120 million people. + It is the country's second-largest employment generating sector, second only to agriculture. Hence, Statement 1 is correct. The backbone of the Indian economy + MSME sector, in our country, acts as a bulwark against the global economic shocks, besides providing an entrepreneurial base to a large section of people. Checks rural-urban migration + A stable and growing MSME sector reduces immigration in urban areas, thus reducing the resource stress in these areas. GDP and exports + The sector contributes about 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for about 11.1 crore people, which in terms of volume stands next to the agricultural sector. Hence statement 2 is not correct. Inclusive Development + MSME ensures equitable distribution of national income and checks regional imbalances. + Around 20% of MSMEs are based in rural areas, which indicates a significant rural workforce in the sector. Hence, Statement 3 is not correct. & Additional Informa’ WS Challenges faced by the MSME oo Finance crunch itis estimated that more than 90% of the MSME lacks cr soe formal » They tly ii Titi SANGRIA ONY Neo charge exorbitant interest rates. Lack of basic infrastructure + Though MSME has been growing rapidly, the lack of basic facilities like power, roads, connectivity to towns, etc has been hindering their growth potential Lack of technology « Weare. presently. in an era of a digital revolution.+ MSMEs, however, remain detached from technological advancements and hence produce low- quality products with high capital. Hence, Statement 3 is correct. Lack of skill development and training + MSMEs, in our country, is more like a family business. + The skills get carried over by the next generation and the process goes on. + With time their adaptability to the present situation remains a cause of concern. Ripple effect of a few government steps + The steps like Demonetisation, GST, and the COVID-19 induced lockdown, thouch had noble intentions, have adversely affected the operation of MSMEs. » Important Points + Classification of MSME ieee anu Rely Start Complete Exam Preparation Recaro ele one igen orl Download App Cresson Prothics) Question 5: View this Question Online > With reference to the Micro Small Medium Enterprises (MSME), Consider the following statements: 1. It is the country's second-largest employment generating sector, second only to agriculture. 2. MSME sector contributes around 19% of the overall GDP. 3. More than half of the MSMEs are based in rural areas. How many of the above statements are correct? 1. Only one 2. Only two 3. All three 4. NoneSolution Below) . ion 1: Only one MSME Question 5 Detailed Solution The correct answer is Only one. @ Key Points Importance of the MSME sector in the Indian economy Employment provider + Itemploys around 120 million people. + Itis the country’s second-largest employment generating sector, second only to. agriculture. Hence, Statement 1 is correct. The backbone of the Indian economy + MSME sector, in our country, acts as a bulwark against the global economic shocks, besides providing an entrepreneurial base to a large section of people. Checks rural-urban migration + A stable and growing MSME sector reduces immigration in urban areas, thus reducing the resource stress in these areas. GDP and exports + The sector contributes about 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for about 11.1 crore people, which in terms of volume stands next to the agricultural sector. Hence statement 2 is not correct. Inclusive Development + MSME ensures equitable distribution of national income and checks regional imbalances. + Around 20% of MSMEs are based in rural areas, which indicates a significant rural workforce in the sector. Hence, Statement 3 is not correct. cf © Additional Informati Challenges faced by the MSME ° Oo ‘ Finance crunch + Itise: ated that more than 90% of the MSME lacks fies from formal institutions. + They rely more on informal institutions like money ino charge exorbitant interest rates. Lack of basic infrastructure + Though MSME has been growing rapidly, the lack of basic facilities like power, roads,Se eee eee eee Lack of technology + We are, presently, in an era of a digital revolution. + MSMEs, however, remain detached from technological advancements and hence produce low- quality products with high capital, Hence, Statement 3 is correct. Lack of skill development and training + MSMEs, in our country, is more like a family business. + The skills get carried over by the next generation and the process goes on. + With time. their adaptability to the present situation remains a cause of concem. Ripple effect of a few government steps + The steps like Demonetisation, GST, and the COVID-19 induced lockdown, though had noble intentions, have adversely affected the operation of MSMEs. » Important Points + Classification of MSME India’s #1 Learning Platform Start Complete Exam Preparation Wau rete Gites Question Bank Download App Question 6 : View this Question Online > The National Board for Micro, Small and Medium Enterprises meets once every months in a year, &,* 1.6 ~ 2. 23Answer (Detailed Solution Below) Option 1:6 MSME Question 6 Detailed Solution + The National AMD ice Small, and Medium Enterprises meets once every 6 months in a year. + It was established on 15 May 2007, having 47 members. + It is responsible for examining the factors affecting the development and promotion of MSMEs. * It also gives advice to the Central government about the use of funds constituted in Section 12. India’s #1 Learning Platform Pela mew climes yeh etl) Cea Rr tc eiesieaccg Exes) BA) Dally Live fated jie (iets Download App ‘Question 7 View this Question Online > Match the following considering the classification of the Central Public Sector Enterprises List - List - 11 [A. The company must have a 'Miniratna Category — I’ status jalong with a Schedule ‘A’ listing, B. A profit RS 30 crore or more in one of the preceding three ears, H Maharatna 2. Navratna IC. Average annual turnover of 3. Miniratna bore than Rs. 25,000 crore. 1. TA) 20) 308) A. (©, 20a), 308)3. 1(C), 2@), (A) 4. 1(8), 2(©), 3(A) Answer (Detailed Solution Below) Option 2: 1(0), 2A), 3(8) MSME Question 7 Detailed Solution The correct answer is 1(C), 2(A), 3(B). © Key Points + CPSEs are classified into 3 categ s: Maharatna, Navratna, and Miniratna. + Eligibility Criteria to be considered for grant of Maharatna status: + Having Navratna status. + Listed on the Indian stock exchange with minimum prescribed public shareholding under SEBI regulations. + Average annual turnover of more than RS. 25,000 crore, during the last 3 years. 9 + The average annual net worth of more than Rs. 15,000 crore, during the last + Average annual net profit after tax of more than Rs. 5,000 crore, du years. = Should have a significant global presence/international operati + There are ten ‘Maharatna’ CPSEs: Bharat Heavy Electricals Limi Limited, GAIL (India) Limited, Indian Oil Corpor: Natural Gas Corporation Limited, Hindustan Petr oration Limited (HPCL), Bharat Petroleum Corporation Limite Grid Corporation of India (POWERGAID), and Steel Authority of + Eligibility Criteria to be considered for g ratna status: + The Miniratna Category - | hedule ‘A’ CPSEs, which have obtained ‘excellent’ or ‘very good’ rating unde’ orandum of Understanding system in three of the last five years, and have a composite score of 60 or above in the six selected performance parameters, namely, net profit to net worth manpower cost to total cost of production/services, profit before depreciation, interest, and taxes to capital employed, profit before interest end taxes to turnover, earning per share, inter-sectoral performance. + Eligibility Criteria to be considered for grant of Miniratna status: = Category -I CPSEs should have made a profit in the last three years continuously, the pre-tax profit should have been Rs. 30 crores or more jn at least one of the three years and should have a positive net worth. = Category-ll CPSEs should have made a profit for the last three years continuously and should have a positive net worth. = These CPSEs shall be eligible for the enhanced delegated powers provided they have not defaulted in the repayment of loans/interest payment on any loans due to the Government.Sree Pela meu (CM cima hicel) CRT R eos ein ocd eles Dos cholo resins Download App Pkt ‘Question 8 View this Question Online > Which of the following statements is/are correct about National Infrastructure Pipeline? a) The National Infrastructure Pipeline (NIP) for FY 2020-25:is aifirst-of-its-kind, whole-of- government exercise to provide world-class infrastructute to citizens and improving their quality of life. b) To draw up the outline of the NIP, a High-Level: Task Force was constituted under the chairmanship of the Secretary, Department of Economic Affairs (DEA), Ministry of Finance. 1. aonly 2. b only! A... 4. Neithera nor b Answer (Detailed Solution Below) Option 3: Botha and b MSME Question 8 Detailed Solution The correct answer is Both a and b, + Investment in Infrastructure is necessary for growth. + To achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion (100Jakh crore) over these years on infrastructure. + The challenge is to step-up annual infrastructure investment so that lack of infrastructure does not become a binding constraint to the growth of the Indian economy. To implement an infrastructure program of this scale, it is important that projects are adequately prepared and+ NIP is expected to enable well-prepared infrastructure projects which will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive. a + NIP also intends to facilitate supply-side interventions in infrastructure development to boost short-term as well as the potential GDP growth. Improved infrastructure capacities will also drive the competitiveness of the Indian economy: + The NIP has been made on g best effort basis by aggregating the information provided by various stakeholders iil one, departments, state governments, and private sector across infrastructure sUbaséctors, a Infrastructure’. + All projects (Greenfield or Brownfield, under conceptualization or under implementation or under Development) of project cost greater than Rs.100 crore per project were sought to be captured, © Key Points + The NIP captures the infrastructure vision of the country for the period FY20-26, This is the first-ever exercise undertaken in the country. However, it is recognized that financing of the National Infrastructure Pipeline would be a challenge. d in the ‘Harmonised Master List of lent + It is hoped that a bouquet of well-prepared projects would attract investment from Central and State Governments, Urban Local Bodies, Banks and Financial Institution, PE funds, and private investors, both local and foreign. ad Eee eo) Pela me (CM elim ere-yle Li cela) Re RR kronor Download App Question 9 View this Question Online > What is the limit of the Annual turnover for small enterprises? 1. 5 crores to 75 crores rupees 2. less than 5 crore rupees 3. Between'75, to'150 crores rupees af A. 150 to 200 crores rupees eTOption 1: 5 crores to 75 crores rupees MSME Question 9 Detailed Solution The correct answer is 6 crores to 75 crores rupees. @ Confusion Points « As Per the official question as answer key provided by WBCS the correct answer is option 4. + However, as per the data available as per the MSME the limit of the annual turnover for small enterprises is not more than 50 crore. @ Key Points + In line with energising MSMEs in the country, the Cabinet Committee on Economic Affairs (CCEA) under the Chairmanship of Prime Minister Shri Narendra Modi approved the upwerd revision of the MSME 0 for laying’down effective implementation under the Atmanirbhar Bharat Pac! + Updated Classification of Small Medium Enterprises are as follows: [Classification [Micro [Small [Medium lInvestment in Not Plant and han [Not more |Not more Machinery or |g 4 [than Rs.10}than Rs.50) Equipment crore (Core icrore [Annual Turnover|than Rs. [than Rs. than Rs. & Ca India’s #1 Learning Platform AS Tame) (CM Clues if ei sey adres as acer eer ‘Question 10 View this Question Online > Which of the following is/are incorrect?2. The Micro, Small, and Medium Enterprises (SME) are classified into two enterprises as per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. 3. Small scale enterprise is one in which investment in Plant and Machinery is more than twenty-five lakh rupees but does not exceed ten crore rupees 1. 1and 2 only 2. 2and 3 only 3. 1and 3 only \ 442 xo? . a Solution Below) Option 3: 1 and 3 only MSME Question 10 Detailed Solution The correct answer is 1 and 3 only. © Key Points + In 1955, the Village and Small-scale Industries Committee, also called the Karve Comniittee, noted the possibility of using small-scale industries for promoting rural development. + Hence, Statement 1 is incorrect. + A‘small-scale industry’ is defined as the maximum investment allowed on the assets of a unit. + This limit has changed over a period of time. In 1950 a small-scale industrial unit was one which invested a maximum of rupees five lakh. + It was believed that small-scale industries are more ‘labor-intensive’ i.e. they use more labor than the large-scale industries, therefore, generate more employment. + For this purpose, the production of several products was reserved for the small-scale industry; the criterion of the reservation being the ability of these units to manufacture the goods. + They were also given concessions such as lower excise duty and bank loans at lower interest rates. > important Points + The Micro, Small, and Medium Enterprises (MSME) are classified into two enterprises as per the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. Hence, Statement 2 is correct. + These are : Manufacturing Enterprises> Service Enterprises ‘a 2 Investment in plant & | Investment in machinery equipment Enterprises IMicro]Does not exceed Does not twenty-five lakh lexceed ten rupees. lakh rupees. Enterprises More than twenty-five More than ten Ismallflaxh rupees but does not exceed five crore ea rupees rupees. Hence ut does not exceed two si@tement 3 is not crore rupees. : More than two] More than five crore crore rupees mn Fupees but does not but does not exceed ten crore . lexceed five rupees. — Dake aD @ Trusted by 7,86,00,449+ student: Start Complete Exam Preparation emacs ieee eee eI Co incarets Download App )View this Question Online > Question 11 In India, businesses with investment up to Rs. 1/Croreand turnover up to Rs. 5 Crore are known as:1, Tiny Enterprise 2. Small Enterprise 3 r. Waa 4. Medium Enterprise Answer (Detailed Solution Below) Option 3: Micro Enterprise MSME Question 11 Detailed Solution The correct answer is Micro Enterprise, © Key Points * In the revised definition, the investment limit has been revised upwards and additional criteria of turnover have been introduced. Micro - + Investment in Plant and Machineryiof Equipment + Not more than Rs.1 crore and Annual Turnover; not more than Rs. 5 crores. Hence the correct option 3. 4 + Investment in Plant and Machinery or Equipment: * Not more than Rs.10 crore and Annual Turnover; not more than Rs. 50 crore. Medium - + Investment in Plant and Machinery or Equipment + Not more than Rs.50 crore and Annual Turnover; not more than Rs. 250 crore. CR ARR Reta) LAR roe Start Complete Exam Preparation Bee eed acs Loreto Question Bank eae ext Download AppQuestion 12 View this Question Online > Which of the following is a micro-finance programme? 1. local village bank hcramin Bank Answer (Detailed Solution Below) Option 2: Self help group MSME Question 12 Dei d Sol The correct answer is Self-help group. © Key Points + Self Help Groups (SHGs) are small groups of poor people. The members of an SHG fac: similar problems. They help each other, to solve their problems. + SHGs promote small savings among their members. The savings are kept This is the common fund in the name of the SHG. The SHG gives small loans to bers from its common fund + SHG is an informal group registered under any Societies Act. fs » Important Points + Major Functions of an SHG NO + Savings and Thrift: ¢ All SHG members regularly s nt. The amount may be small, but savings have to be a regular and conti with all the members. * “Savings first — Cre’ should be the motto of every SHG member. © SHG members tek wards self-dependence when they start small savings. They learn financial disci ugh savings and internal lending, + Internal lending: > The SHG should use the savings amount for giving loans to members. © The purpose, amount, rate of interest, schedule of repayment etc, are to be decided by the group itself. © Proper accounts are to be kept by the SHG. + Discussing problems:oe ee ae ee ae ee ee ee ee the problems faced by the members of the group. Individually, the poor people are weak and lack the resources to solve their problems. When the group tries to help its members, it becomes easier for them to face the difficulties and come up with solutions. * Taking bank loans: The SHG takes loans from the bank and gives it as loans to its members. India's #1 Learning Platform Ree Ryo Start Complete Exam Preparation Ginn: coer 7) Mock Test Px oreo Ciesieeoig Download App Question 13, View this Question Online > Helpline ‘Udyami is meant for : 1. Micro, small, and medium enterprises 2. Large capital industries” 3. Feméleefitrepreneur A... using technology in farming Answer (Detailed Solution Below) Option 1: Micro, small, and medium enterprises MSME Question 13 Detailed Solution The correct answer is Micro, small, and medium enterprises. © Key Points + Udyami Helplin: © Udvami Helpline is a Call Centre of the Ministry of Micro. Small and MediumEnterprises (MSME), Government of India. It was launched in 2010 to work as a single point facility for MSMEs needing different kinds of information and accessibility of Banks and other MSME-related organizations, An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration’ A permanent registration number will be given after registration, After completion of the process of registration, a certificate will be issued online. This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed. =~,’ © Additional Information + MSME:- In India, MSMEs contribute nearly 8% of the country’s GDP, around 45% of the manufacturing output) Ai@epproximately 40% of the country’s exports It won't be wrong to refer them as the ‘Backbone of the country’ The Government of Indi has introduced MSME or Micro, Small, and Medium Enterprises in agreement with the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006. These enterprises primarily engaged in the production, manufacturing, processing, or preservation of goods and commodities. + Anenterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: Micro-enterprise, where the investment in plant and machinery or equipment does not exceed 1 crore rupees and turnover does not exceed 6 crore rupees. Small enterprise, where the investment in plant and machinery or equipment does not exceed 10 crore rupees and turnover does not exceed 50 crore rupees. Medium enterprise, where the investment in plant and machinery or equipment does not exceed 50 crore rupees and turnover does not exceed 250 crore rupees. a cS ee ABE Bartoli) OL RE Seo Start Complete Exam Preparation Dally Lve pared pnccacs eres I ee od Download App Question 14 View this Question Online > Which one of the following is the prescribed investment limit for medium enterprises in the manufacturing sector as per the Micro, Small and Meditim Enterprises Development Act. 2006? More than Rs 10 lakhs and less than Rs 2 crotes ©2. More than Rs 2 cr Rs 5 crores 3. More d less than Rs 10 crores than Rs 10 crores Answer (Detailed Solution Below) Option 3: More than Rs 5 crores and less than Rs 10 crores MSME Question 14 Detailed Solution The correct answer is More than Rs § crores and less than Rs 10 crores. © Key Points + Micro, Small and Medium Enterprises: + Worldwide, MSMEs have been accepted as the engine of economic growth and for promoting equitable development. > They constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth. + With low investment requirements, operational flexibility, and the capacity #9 de appropriate indigenous technology. : MSMEs have the power to propel India to new heights. + Hence, it seems like there is a silent revolution happening i red by MSMEs. + As per the Micro, Small and Medium Enterprises Develoy 2006 (MSMED Act, 2006) 2 Micro enterprise, - investment in Plant and joes not exceed Rs.25 lakhs. 2° Small enterprise - investment in Planta is more than Rs.25 lakhs but does not exceed Rs.5 crore. + Medium enterprise - Sn nd Machinery is more than Rs crore but does not exceed Rs.10 cr lence option 4 is correct. > Important Points + Revised Classification applicable w.ef 1st July 2020 O:- Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore. * Annual Turnover; not more than Rs. § crores, = Small:- = Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore. * Annual Turnover; not more than Rs. 60 crore, > Medium:- © Investment in Plant and Machinery or Equipment: Not more than Rs.60 crore, * Annual Turnover; not more than Rs. 280 crore. aee Ge ABR Rath) Start Complete Exam Preparation Rte Ree oat oi (ee ocd enw haa Chol Question Bank Download App Pyle Question 15 View this Question Online > Which of the following is the assistance provided by SIDBI ? 1. Extending financial supportto SSIDC and NSIC 2. Developingand upgrading technology particularly for projects based on wastes x small scale industries as ancillaries to large scale industries 4. Procuring government orders for small scale units Answer (Detailed Solution Below) Option 1 : Extending financial support to SSIDC and NSIC MSME Question 15 Detailed Sol Small Industries Development Bank of India (SIDBI) + SIDBI is the Primary Financial Institution for promoting, developing, and financing MSME (Micro, Small, and Medium Enterprise) sector. + Besides focussing on the development of the Micro, Small, and Medium Enterprise sector, SIDBI also promotes cleaner production and energy efficiency. + It is the apex regulatory body in India for the overall regulation and licensing of microfinance institutions in India. Eis under the jurisdiction of the Ministry of Finance. Government of Indiaheadquartered at Lucknow and having Its olfices all over the country. 0 Key-Points Modes of Finance ox SIDBI provides direct, indirect, and microfinance facilities. G 1, Direct Finance: in the form of Term Loan Assistance, Working Capital A 2 Support against Receivables, Foreign Currency Loan, Scheme of Energy Savir for M sector, equity support, etc. 2. Indirect Finance: The Indirect assistance in the form is provided to Primary Lending Institutions (PLIs), comprising banks, State cial Institutions, etc. having a wide network of branches all over the country. Th fe of Refinance Scheme is to increase the resource position of PLIs which would ul facilitate the flow of credit to the MSME sector. 3, Micro Finance: siDai provides businessmen for establishing thei ce ie, credit to small entrepreneurs and Additional Information SSIDC. Small Scale Industries Development Corporation. + Small Industries Development Corporations (SIDCO) ate state-owned companies or agencies in the states of India which were established at various times under the policy of the Government of India for the promotion of small-scale industries. National Small Industries Corporation + National Small Industries Corporation Limited is a Mini Ratna government agency established by the Ministry of Micro, Small and Medium Enterprises, Government of India in 1955 It falls under the Ministry of Micro, Small & Medium Enterprises of India. Since SIDBI deals only with financial aids and distribution issues, therefore extending financial support to SSIDC and NSIC is the assistance provided by SIDBI.