Lok Sabha Question No. 4114 (UNSTARRED), answered on 2017-03-27
Subject: CLCSS and CGFT Schemes
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: B.V. NAYAK, BHARTRUHARI MAHTAB

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

## LOK SABHA UNSTARRED QUESTION NO.4114 TO BE ANSWERED ON: 27.03.2017

## CLCSS AND CGFT SCHEMES

4114.

SHRI B.V. NAIK:

SHRI BHARTRUHARI MAHTAB:

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

- (a) the  aims  and  objectives  of  the  Credit  Linked  Capital  Subsidy  Scheme  and  Credit Guarantee Fund Trust Scheme meant for Micro, Small and Medium Enterprises (MSMEs) in the country;
- (b) whether the Government has achieved the aims and objectives of the said schemes;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) the credit flow to the MSME sector and the growth registered by this sector during each of the last three years and the current year ;
- (e) whether  the  Government  has  received  complaints  of  denial/reluctance  by  Financial Institutions in extending credit to MSME Sector during the said period;
- (f) if so, the details thereof and the reasons therefor, Financial Institution- wise; and
- (g) the corrective steps taken/being taken by the Government to ensure adequate credit flow and to improve growth rate of the MSME sector?

## ANSWER

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

(a)to(c): The aims and objectives of Credit Linked Capital Subsidy Scheme (CLCSS) are  to  facilitate  technology  up-gradation  in  MSEs  by  providing  capital  subsidy  of  15%, limited upto Rs.15.00 lakhs,   on institutional finance availed by them for induction of wellestablished  and  improved  technology  in  the  specified  51  sub-sectors  /  products    approved under the scheme.

The aim and objective of Credit Guarantee Scheme for Micro and Small Enterprises (MSEs)  is  to  enable  provision  of  collateral  free  credit  facility  to  MSEs  by  providing guarantee  against  default  for  loan  up  to  Rs.2.00  crore  obtained  by  MSEs  from  eligible member lending institutions.

Since  inception  of  CLCSS  Scheme  till  28-02-2017,  Rs.  2607.87  Crore  amount  of subsidy have been released benefiting 43987 MSEs. Similarly, since its inception (till 28-22017)under  Credit  Guarantee  scheme  for  MSEs,  27,37,632  proposals  involving  guarantee coverage of Rs. 126806.15 crore have been approved.

- (d): Outstanding Credit to Micro, Small and  Medium Enterprises by Scheduled Commercial Banks is as under:

| As on     | Amount of Outstanding credit to MSMESector (Rs. in crore)   |
|-----------|-------------------------------------------------------------|
| 31-Mar-13 | 8,69,025.35                                                 |
| 31-Mar-14 | 10,39,930.72                                                |
| 31-Mar-15 | 11,71,026.05                                                |
| 31-Mar-16 | 12,16,007.11                                                |

(e)&(f): Banks  after  due  diligence  using  their  commercial  discretion  may  approve  / sanction loan  to MSMEs subject to viability and eligibility of the proposals.  No details and reasons therefor of denial / reluctance by financial institutions in extending credit to MSMEs is maintained by the Ministry of MSME.

- (g): In  terms  of  the  recommendations  of  the  PM's  Task  Force  on  MSMEs,  RBI  has advised the banks as under:
- I.    Achieve  a  20%  year-on-year  growth  in  credit  to  micro  and  small  enterprises  to ensure enhanced credit flow;

II.    The  allocation  of  60%  of  the  MSE  advances  to  the  micro  enterprises  is  to  be achieved  in stages viz. 50% in the year 2010-11, 55% in the year 2011-12 and 60% in  2012-13; and

III.  Achieve a 10% annual growth in number of micro enterprise accounts.

Achievements  of  these  are  being  monitored  continuously  by  the  RBI  and  the Government.

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