Question : Policy to Boost MSMEs

(a) whether the Government has made any changes in the policy to provide better credit facility, technology up-gradation and skill to boost the entire MSME ecosystem and if so, the details thereof;

(b) the funds allocated by the Government for different MSME Schemes and the number of MSMEs benefited during the last three years, State / UT-wise;

(c) whether thousands of MSMEs are facing problem in clearance of their payments from State Governments;

(d) if so, the details thereof and the action taken in this regard;

(e) whether the Government proposes to increase the number of MSME industries in the country on sustainable basis through implementation of various schemes and programmes and if so, the details thereof?

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

(a): The Government announced the Atma Nirbhar Package on 13th May 2020 which included various measures for different sectors including MSMEs. Government of India and Reserve Bank of India have announced a series of measures to infuse liquidity in the Economy in general and MSME sector in particular. These inter-alia include i) moratorium upto 31st August, 2020 on repayment of installments of term loans/cash credit/over draft (ii) reducing the Cash Reserve Ratio and Repo rate (iii) Special refinance facility of Rs.15,000 crore to SIDBI for on-lending/refinancing (iv) Special liquidity scheme for NBFCs, HFCs and MGIS worth Rs.30,000 crore (v) Emergency Credit Guarantee Line of Rs. 3 lakh crore for Standard accounts and stressed accounts ( SMA-0 and SMA-1) (vi) Credit Guarantee Scheme for Subordinate Debt for SMA-2 and NPA accounts for infusing Rs. 20,000 crore in MSME Sector (vii) Credit Guarantee scheme for Street Vendors (PM SVANidhi) which also involves interest subsidy (viii) partial credit guarantee scheme for the liabilities of NBFCs and MFIs etc.

(b): The overall Budget allocation of the Ministry of MSME during last three years i.e 2017-18, 2018-19 and 2019-20 is at Annexure I. The year wise and state wise list of number of beneficiaries in respect of two major enterprise specific schemes viz. Prime Minister’s Employment Generation Programme (PMEGP) and Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) is at Annexure II.(A) & ( B).


(c) & (d): Government has taken many steps to get the dues payable to the MSMEs cleared by the public sector units of State and the Central Governments. The Ministry has taken up the subject vigorously with the Central Ministries, CPSEs and State Governments and Corporate World. As per the data available on SAMADAN portal the outstanding payments to units in the MSME sector in the last two years are given below:
(Rs. in crore)
<pre>
Year
(1) Resolved, awarded amount
(2) Resolved, disallowed amount
(3) Amount involve in rejected applications
(4) Amount involve in pending applications
(5) Total amount involved in applications
(6)
2019-20 391.23 67.46 832.69 5093.49 6384.87
2018-19 489.75 179.21 680.98 1495.40 2845.34
</pre>
The status of MSME dues as on 12.09.2020 are as shown in the table below
<pre>
Reported Month Total Dues by close of month (in Rs. Crore) Paid during the month (in Rs. Crore) Pending at the end of month (in Rs. Crore)
May 2020 (25 Ministries & 79 CPSEs Reported) 2349.53 1787.89 561.64
June 2020 (25 Ministries & 86 CPSEs Reported) 2553.94 1905.11 648.83
July 2020 (30 Ministries & 108 CPSEs Reported) 4124.34 3155.16 969.19
August 2020 (25 Ministries & 91 CPSEs Reported
on 12th Sep., 2020 at 4.00 PM) 3527.33 2696.97 830.36
</pre>

(e): It has always been the endeavor of Government of India to strengthen the MSME sector by various means. The change in the definition of MSME notified on 26th June 2020 is one of such moves directed towards expansion of MSME Sector as well as enhancement of its scope.