Lok Sabha Question No. 2416 (UNSTARRED), answered on 2017-07-31
Subject: Loans for MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: N.K. PREMACHANDRAN, YERRAM VENKATA SUBBAREDDY, OM BIRLA

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 2416 TO BE ANSWERED ON: 31.07.2017

## LOANS FOR MSMEs

SHRI N.K. PREMACHANDRAN: SHRI Y.V. SUBBA REDDY: SHRI OM BIRLA:

2416.

Will  the  Minister  of  MICRO,  SMALL  AND  MEDIUM  ENTERPRISES  be pleased to state:

- (a) whether the Government proposes to introduce a programme for bringing transparency in sanction/disbursal of bank loans to self employed persons under various schemes of the Micro, Small and Medium Enterprises (MSME) sector in the country, if so, the details thereof;
- (b) whether there has been reduction in lending loans to the MSMEs in the country during the last three years and if so, the details thereof and the reasons therefor along with the corrective steps taken by the Government in this regard;
- (c) whether employment opportunities are decreasing due to dismal condition of small scale industries and if so, the details thereof;
- (d) whether  the  Government  proposes  to  enhance  the  mandatory  purchase limit from small scale units for the public sector and if so, the details thereof; and
- (e) the other steps taken by the Government to protect and promote MSMEs and for solving their problems / issues relating to fund crunch, timely payments and exporters?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI HARIBHAI PARATHIBHAI CHAUDHARY)

- (a):    No, Madam. However, all amenable schemes of the Ministry of Micro, Small and Medium Enterprises (MSME) are being brought under DBT (Direct Benefit Transfer), which will increase transparency in the disbursal of scheme funds.

(b): No, Madam.  As per statistics compiled by Reserve Bank of India (RBI), the credit to the MSME sector by all scheduled commercial banks at 31 st March for the last three year is placed in below table:

(Amount Rs. in crore)

| Year       |              MSE |   Medium |   TotalMSME |
|------------|------------------|----------|-------------|
| 31-Mar-14  | 851077           |   188838 | 1.03992e+06 |
| 31-Mar-15  | 961174           |   209852 | 1.17103e+06 |
| 31-Mar-16  | 996425           |   219582 | 1.21601e+06 |
| 31-Mar-17* |      1.06982e+06 |   225759 | 1.29558e+06 |

Source: Reserve Bank of India              *Provisional

From above table it can be seen that credit to MSME has increased from Rs. 1039915.02 crore on March 31, 2014 to Rs. 1171026.05 crore on March 31, 2015 and further to Rs. 1216007.11 crore on March 31, 2016 and further to Rs. 1295581.26 crore on March 31, 2017.

- (c): As per the  last  census  (Fourth)  of  MSMEs  with  reference  to  base  year 2006-07, the total employment  in the  MSME  sector  was  805.24  lakh. Thereafter, as such no census has been conducted by M/o MSME, thus it cannot be said that employment opportunities are declining.
- (d): Government has not proposed any enhancement of mandatory purchase limit from small scale units for the public sector.
- (e): The  Government  is  implementing  a  number  of  schemes  to  protect  and promote MSMEs. Some of them are Prime Minister Employment Generation Programme, Credit Guarantee Scheme, Capital Linked Capital Subsidy Scheme, National  Manufacturing  Competitiveness  Programme,  Marketing  Promotion Schemes,  Entrepreneurship  and  Skill  Development  Programmes,  Scheme  of Fund  for  Regeneration  of  Traditional  Industries  (SFURTI),  A  Scheme  For Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE). Furthermore, Goods & Service Tax (GST) has in-built provision for solving the delayed payment problems.

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