MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)
(a): Ministry of MSME is implementing the following schemes for advancement and development of Small Scale Industries (SSIs) in the rural and backward areas of the country:
i. Prime Minister’s Employment Generation Programme (PMEGP) is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and rural/urban unemployed youth.
ii. Ministry is implementing Scheme of Fund for Regeneration of Traditional Industries (SFURTI)to organize traditional industries and artisans into clusters to make their products competitive and provide the artisans with sustainable employment.
iii. Ministry is implementing Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) to create Common Facility Centres, Infrastructure Development and Flatted Factory Complexes by organizing 20 or more industries of similar value chain into clusters.
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iv. Under Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), collateral free credit facility (term loan and/or working capital) is extended by lending institutions to new and existing micro and small enterprises, including retail activity. The guarantee cover provided under CGTMSE extends from 50% to 85% for credit up to Rs. 2 crore.
v. Under Credit linked Capital Subsidy Scheme (CLCSS), 15% up front capital subsidy is provided on institutional credit up to Rs. 1 cr for technology upgradation/induction in identified sectors.
vi. Under Interest Subvention Scheme (ISS), 2% interest subvention on fresh or incremental loans maximum up to Rs. 1 crore are given to MSMEs who have valid GSTN number and Udyog Aadhar number.
vii. Under Procurement and Marketing Support Scheme, market exposure to goods and services produced by the MSMEs are provided through marketing initiatives like organizing/participation in Trade Fairs, Exhibitions, etc.
(b): The Ministry of MSME has been pursuing MSMEs to register themselves on Udyog Aadhaar Memorandum (UAM) portal. Till 30.06.2020, 73,34,312 Micro and Small Enterprises (MSEs) have been registered out of the total 6.33 crore MSMEs. From 01.07.2020, a new improved portal has been started namely ‘Udyam’. Under this portal 19,11,303 MSEs have been registered till 08.02.2021. Based on the data from these portals, the number of MSEs registered State/UT - wise in the country including the State of Tamil Nadu, investment made therein and the employment opportunities generated during each of the last three years and the current year (up to 08.02.2021) are given at Annexure.
(c) & (d): Studies have been conducted by National Small Industries Corporation (NSIC) and Khadi and Village Industries Commission (KVIC) to assess the impact of COVID-19 Pandemic on MSMEs including units set up under Prime Minister’s Employment Generation Programme (PMEGP). Based on the outcome of the studies and suggestions received from the MSME sector, major constraints faced by the MSME sector are detailed as under:
i. Demand for credit by MSMEs
ii. Request for Subordinate Debt for stressed MSMEs
iii. Demand for Equity infusion for MSMEs.
iv. Request for release for pending dues of MSMEs
v. Norms for declaring NPA period in banks be extended to 180 days for at least next 2 years.
vi. Demand for reduction of Cash Reserve Ratio (CRR) by the banks for MSMEs
vii. Need of Marketing Support to the beneficiaries
Government has announced a comprehensive package of Rs.20 Lakh crore, including for MSMEs, under Atmanirbhar Bharat Abhiyan (ABA). Announcements pertaining to MSMEs and their current status are given below:
i. Emergency Credit Line for MSMEs: Government has operationalized Rs. 3,00,000 crore collateral free loan scheme w.e.f. 23.05.2020 which is likely to benefit 45 lakh MSMEs. As on 25.01.2021, loans for an amount of Rs. 2.39 lakh crore have been sanctioned.
ii. Rs. 20,000 crore as Subordinate Debt for Stressed MSMEs: As on 31.12.2020, 249 guarantees have been approved amounting to Rs. 27.27 crore.
iii. Rs. 50,000 crore Equity infusion for MSMEs through Fund of Funds (FoF): CCEA has approved a corpus of Rs. 10,000 crore for Fund of Funds scheme. The detailed guidelines have been issued by the Ministry of MSME.
iv. Clearing of payment due to MSMEs: Government has announced that MSME dues should be cleared by the Government agencies and CPSEs within 45 days. Since May 2020 and up to 11.01.2021, pending payments of Rs. 26,363.75 crore have been made to MSMEs out of the total dues of Rs. 33,323.92crore.
v. Reserve Bank of India (RBI) vide its circular dated 01.01.2019 has indicated that MSME account can be restructured on or before 31.03.2020. The borrower will continue to be classified as Standard Asset till the date of restructuring. The same has further been extended up to 31.03.2021 vide RBI’s circular dated 06.08.2020.
vi. RBI has provided the relief measures and the CRR of all the banks to be reduced by 100 basis points to 3% of net demand and time liabilities w.e.f March, 28, 2020, which would inject Rs. 1,37,000 crore across the banking system.
vii. No Global tenders are permitted for government procurement up to Rs. 200 crore.
viii. In addition, Ministry of MSME has taken initiatives to provide employment opportunities to people including migrant workers in 116 districts of 6 States under Garib Kalyan Rojgar Abhiyaan. Under PMEGP, Margin Money (subsidy) amounting to Rs. 216.45 crore has been disbursed for setting up 6218 units till 31.01.2021.
(e): No Sir. The Government has provided support as detailed in part (c) & (d) to all MSMEs affected due to ‘Covid-19’ pandemic.
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