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Government of India

Ministry of MSME

Brief Industrial Profile of Churu District

2 0 2 0 - 2 1

Prepared by

M S M E - D e v e l o p m e n t I n s t i t u t e

(Ministry of MSME, Govt. of India,)

22 Godam, Industrial Estate, Jaipur-302006

Phone: 0141-2388913, Fax: 0141-2210553 E-mail: dcdi-jaipur@dcmsme.gov.in; Web- www.msmedijaipur.gov.in

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FOREWORD

District Industrial Potential Report of Churu -Rajasthan 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

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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 Rajputs rulers of Rathore clan. Thakur Maldeo, the grandson of Rao

Kandhal or Rawat Kandhal and uncle of Rao Bika, the Rathore Rajputs of Bikaner 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 princely state. 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 Thar Desert, 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 Sri Ganganagar district in the

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North, by Sikar and Jhunjhunu and Hissar district of Haryana in the East, by Nagaur 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 Hanumangarh District, east by Haryana state, Jhunjhunu and Sikar districts to the

southeast, Nagaur District to the south, and Bikaner District 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, Taranagar, Rajgarh, Sardarshahar, and Sujangarh. 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

Lease

Production in

M.T.

1 Brick Earth Rajgarh, Sardarshahar 12 262816

2 Masonry Stone Villages of Sujangarh

Tehsil- Randhisar,

Gopalpura, Lodhasar

Villages of Bidasar

Tehsil- Balera,

Sarothiya, Charwas,

Manpura, Parewada,

Charla

183 5408390.06

3 Marble Dunkar, Charwas

(Tehsil- Bidasar) 42 24389.30

4 Sand Stone Bidasar 22 108792

Source : DIC, Churu.

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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 Chhapar 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 -Salasar Balaji

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 Haveli

Oswal Jain merchant families constructed these beautiful painted havelis. 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

S. No SUB-

DIVISION TEHSIL TOWNS

NUMBER OF

INHABITED

VILLAGES

NUMBER OF

UNINHABITED

VILLAGES

TOTAL

VILLAGES

1. Churu Churu

Churu

Ratannagar

109 01 110

2. Sardarshahar Sardarshahar Sardarshahar 171 16 187

3. Ratangarh Ratangarh

Ratangarh

Rajaldesar

99 4 103

4. Sujangarh Sujangarh

Sujangarh

Chhapar

97 04 101

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

Number 07 07 10 862 55 917

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

Area)

“ 1130284

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

Disease Surveillance Project

1

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

includes commercial banks and

primary land development bank

Nos. 197

(IX) Education 2019-20

Primary & Middle School Nos. 861

Senior Hr. Secondary & Sec.

School

Nos. 1023

ITI Govt. College Nos. 03

15

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

S.no Name of I.A. Date Of

Existing I.A.

Total

Area.

(acres)

Plot

Planned

Plots

Allotted

Vacant

Plot Construction Production

1. Churu 24.5.79 82.56 198 192 6 - 192

2. Sadulpur I & II

phase 2.11.79 47.94 60 53 7 - 53

3 Sadulpur

III phase 20.2.97 72.84 122 55 67 08 20

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

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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

(Cotton&Woolen)

Bidasar, Salasar Ratangarh Churu Bardasar ect.

2. Furniture Wooden &Wooden

Handicraft

Sardarashar, Ratangarh, Churu etc.

3. Leather Items Desi juti Sujangarh, Biddasar, Rajsldesar, Rajgarh, Sardarashar,

Ratangarh, Churu, Taranager etc.

4. Earthen Pots Rajgarh, Chandgothi, 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.

Udyam Registration

On line

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 Jodhpur 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

No

Name and address Name of contact

Person (Sh.)

Phone and

fax

email

1 RIICO Udyog

Sangh, Ratangarh

Ghanshyam suthar 9414069882 rasratangarh@gmail.com

Bajrang lal jangid 9414401918

2 Yuva udyami Sangh Sujangarh

Madan lal Jangid karwapameshwar@gmail.com

Parmeshwar Karwa 9413192711

3 Vishwakarma

Udyog sangh churu

Viswanath Jangid 9414333870 ajitsonarts@gmail.com

Ajeet agarwal 9414214398

4 Udyog Sangh, Shankar lal 9461606622 vkul42@gmail.com

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sardarshar premani

Ratan lal jangid 94143148373

5 Sardharshar

Handicrafts

association, sardarshar

Banwari lal Jangid 9414086042 vkul42@gmail.com

Kailash Pareek 9461191101

6 Riico udyog sangh,

sadulpur

Jagdish Prasad 9413361937 rathiyogendar@gmail.com

Yogender Kumar rathi

9414086955

7 Laghu Udyog

Bharti

Dault Ram Tanwar 9414333693 daulattanwar613@gmail.com

Subash Jangid 9413361718

8 Bidhasar Udyog

Sangh

Pardeep Kumar

Pareek

9414895764 pradeepkumarpareek94148@gmail.com

9 Audoghik Vikas

Samiti Taranagar

Sanjiv Bansal 9414511407 rajasthansatya@yahoo.com

Mahesh Chachan 8104656625

10 Yapar and Udyog

Mandal

Anjani Kumar 9414066904 anjanikumar@npguar.com

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.

Eligibility/ Applicability:-

This Scheme seeks to extend support to the

promoter(s) of the operational MSMEs which

are stressed and have become NPA as on 30th

April, 2020.

Nature of Assistance:-

•Promoter(s) of the MSMEs will be given

credit equal to 15% of their stake (equity plus

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);

How to Apply:-

MSMEs meeting the eligibility criteria may

approach eligible Banks.

Contact:-

• Lending bank branch,

• CEO, CGTMSE, SIDBI, Swavalamban

Bhavan, C-11, GBlock, BKC, Bandra (East),

Mumbai 400051.

• Email: ceosecretariat@cgtmse.in • 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

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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 &

Services

Investment does not

exceed Rs 1 Cr. and

Turnover does not

Investment does not

exceed Rs 10 Cr.

and Turnover does

Investment does not

exceed Rs 50 Cr.

and Turnover does

26

exceed Rs 5 Cr. not exceed Rs 50

Cr.

not exceed Rs 250

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.