Awareness deficit pulling brakes on MSME expansion in Nagaland

Mercy Epao, Joint Secretary, MSME (middle), with Rajesh Madan, NSIC General Manager (second from right), and BAN officials at the press conference in Dimapur on March 28. (Morung Photo)

MSME aims to inform what entrepreneurs can avail

Morung Express News
Dimapur | March 28

A lack of awareness about available institutional support is apparently pulling the brakes on MSME growth in Nagaland. “When we look at the overall ecosystem of MSMEs, Nagaland is still very much below par as far as the footprint is concerned. This concerns us,” said Mercy Epao, Joint Secretary, Ministry of Micro, Small and Medium Enterprises (MSME). Epao made the comment at a press conference in Dimapur, on March 28, while announcing an upcoming ‘Entrepreneur Awareness Camp and Special Vendor Development Programme’ in Dimapur, to be organised by the MSME Ministry in collaboration with the Nagaland state government and Business Association of Nagas (BAN) on March 30, at the Senden Riju, Purana Bazaar. 

She revealed that while the Ministry has engaged 11 Indian Institutes of Management (IIMs) for a Business Accelerator Programme, “not a single person from Nagaland has come forward yet.” India has approximately 7.9 crore formalised MSMEs on the Udyam portal, but Nagaland’s participation remains limited. 

According to her, the Ministry, together with the National Small Industries Corporation (NSIC) and the Business Association of Nagas (BAN), intends to address this gap by “saturating” the districts with information on credit, subsidies, and market access. She highlighted the Special Credit Linked Capital Subsidy Scheme (SCLCSS), which provides a 25 percent subsidy on machinery for loans up to Rs 1 crore. She also cited the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which offers 90 percent collateral-free loan guarantees for women. 

However, “Lack of awareness is the biggest problem our entrepreneurs or potential entrepreneurs face,” she said. The upcoming ‘awareness camp’ seeks to address the disparity. “Our aim is to tell them what they can avail,” Epao said, adding that the Ministry is prepared to assist local businesses in complying with international standards to export to ASEAN markets through schemes like Capacity Building for First-Time Exporters (CBFTE). 

The MSME delegation from Delhi will be led by Secretary, SCL Das, who is scheduled to land on March 29. 

The March 30 event will feature technical experts from the National Institute of Design (NID), Indian Institute of Packaging, and Government e-Marketplace (GeM) for providing on-site registration and “handholding” support. 

Rajesh Madan, General Manager, National Small Industries Corporation (NSIC) described its role as a “bridge” between the government and local entrepreneurs. “We work 24/7. You can call at any time and we will respond,” Madan said, while adding that NSIC has a sub-branch in Dimapur as well. He said that registration for Udyam and GeM is free and can be completed from home to eliminate “red-tapism.” He said, “We want our people to merge with the mainstream of business.”

According to the BAN, Nagaland has approximately 49,000 formal MSME units and some 30,000 to 40,000 in the non-formal sector. BAN President Mongkum Jamir said, “I think we are very much lacking in awareness, particularly regarding what NSIC and MSME offer.” He added that the association aims to onboard 500 vendors over the next year through this collaboration with the central and state governments.

Jamir said that they have invited approximately 250 entrepreneurs to the camp, which includes free Udyam registration booths to move businesses from the informal to the formal sector. The programme will begin at 9:00 am and is open to all aspiring and existing entrepreneurs of the state. 

On the prospect of outreach programmes, beyond the March 30 event in the other districts, Jamir responded in the affirmative. 

BAN Vice President Benthungo Kithan said that central agencies in Nagaland procure more than Rs 1,000 crore worth of goods and services annually. Under the National SC-ST Hub (NSSH) scheme, Rs 40 crore of the amount is reserved specifically for SC/ST-owned micro and small enterprises. “Most of our entrepreneurs are not aware of this,” he said. 



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