Question : Revival of Closed MSMEs

(a) the details and number of Micro, Small and Medium Enterprises (MSMEs) closed in the country since the period of nationwide lockdown due to COVID-19 Pandemic, State/UT-wise;

(b) the contribution of such MSMEs in enhancing the unemployment rate in the country;

(c) the financial package announced by the Government for revival of such closed MSMEs along with number of MSMEs revived from such package so far, State/UT-wise; and

(d) the other steps taken/being taken by the Government for revival of MSME sector and to enhance its participation in growth of the country?

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a) to (d): A statement is laid on the Table of the House.


STATEMENT REFERRED TO IN REPLY TO PART (a) to (d) OF THE LOK SABHA STARRED QUESTION No. *44 FOR ANSWER ON 04.02.2021

(a) & (b): The figures of the real GDP in India during the first quarter of 2020-21 indicate that economic activity contracted due to the strict lockdown measures imposed by the Government. This contraction has also had impact on the MSME Sector. However, as MSMEs are there in both formal and informal sector, data regarding temporary or permanent closure of the units are not maintained by the Government of India in Ministry of Micro, Small and Medium Enterprises (MSME).

(c) & (d): Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME sector in the country especially in Covid 19 pandemic. Some of which are:

i) Rs. 3 Lakh crore Collateral Free Automatic Loans for business, including MSMEs.
ii) Rs.20,000 crore Subordinate Debt for Stressed MSMEs.
iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.
iv) New Revised criteria for classification of MSMEs.
v) New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.
vi) No global tenders for procurement up to Rs. 200 crores.

The State/UT-wise numbers of MSMEs that benefited under the Rs. 3 Lakh Crore Collateral Free Automatic Loans for business, including MSMEs and Subordinate Debt for MSMEs are annexed.
An online portal “Champions” has been launched on 01.06.2020 by Hon’ble Prime Minister. This covers many aspect of e-governance including grievance redressal and handholding of MSMEs. RBI has also announced several measures to reduce Financial Stress of MSMEs.