Mahabir Prasad, 69 Minister of Micro, Small & Medium Enterprises

Result: 2/10

Some of the major initiatives Mahabir Prasad took backfired, while implementation of others got delayed.

His brief

The CMP and Congress manifesto listed setting up a national commission for recommending appropriate steps for technical, marketing and credit support to enterprises in the unorganised sector and revamping the functioning of the Khadi & Village Industries Commission (KVIC).

The deliveries

• With the passage of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, he brought medium-scale industries and service-related enterprises under his ministry.

• Ensured a loan of $150 million from ADB for modernising KVIC and attached units.

• Launched electronic charkha to increase the production of yarn.

• Set up SME Rating Agency of India Ltd and Credit Guarantee Fund to increase the flow of funds to SMEs.

Reforms derailed

• The National Commission for Enterprises in the Unorganised Sector was set up but the Commission came up with few viable recommendations.

Reforms scuttled

• Prasad ensured that the Labour Ministry’s move to expand employees’ provident fund coverage to firms hiring 10 to 19 employees never took off.

• UPA’s promise of making ‘inspector raj’ history remained on paper—in fact, industry chambers argue that the number of inspectors firms have to deal with has gone up to over 40.

Opportunities BLOWN

Mahabir Prasad had been urging the Reserve Bank of India and Finance Ministry to set a separate target for banks to lend at least 15 per cent to MSMEs, but to no avail.

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