Lok Sabha Question No. 4095 (UNSTARRED), answered on 2019-01-04
Subject: Schemes to Ease MSME Funding
Ministry: FINANCE
Asked by: SUDHEER GUPTA, KUNWAR HARIBANSH SINGH, VIJAY KUMAR S.R., ASHOK SHANKARRAO CHAVAN, PARVESH SAHIB SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 4095

TO BE ANSWERED ON 4 th  JANUARY 2019 / PAUSHA 14, 1940 (SAKA)

## 'Schemes to Ease MSME Funding'

4095:

SHRI SUDHEER GUPTA:

SHRI ASHOK SHANKARRAO CHAVAN: SHRI PARVESH SAHIB SINGH: KUNWAR HARIBANSH SINGH: SHRI S.R. VIJAYAKUMAR:

Will the Minister of FINANCE be pleased to state:

- (a)  the  total  loans  granted  by  Small  Industries  Development  Bank  of  India  (SIDBI)  and  Industrial Investment Bank of India (IIBI) during the last four years;
- (b) whether the Government is aware a large number of small and medium scale industries are on the verge of closure due to cash crunch, if so, the details thereof and the reasons for the same;
- (c) whether the Government plans to bring out any scheme/has taken major initiative to ease availability of funds to this sector;
- (d) if so, the details thereof and the time by which such scheme initiative are likely to be implemented; and
- (e) if not, the other corrective measures taken/being taken by the Government in this regard?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI SHIV PRATAP SHUKLA)

- (a) The amount of direct loans extended by Small Industries Development Bank of India (SIDBI) during the last 4 years is as under:

|   Financial Year | Amount sanctioned (in Rs. crore)   |
|------------------|------------------------------------|
|             2015 | 2,833.40                           |
|             2016 | 3,517.68                           |
|             2017 | 3,530.33                           |
|             2018 | 2,274.31                           |

Industrial Investment Bank of India (IIBI) is under Members' Voluntary Winding Up under the provisions of Companies Act since 06.09.2012. Hence, no loan has been sanctioned by it since then.

- (b) to (e)  Government have received representations from time to time regarding transient impact on cash flows  of  small  entities  during  the  transition  phase  to  increased  formalisation  through  registration  under Goods and Services Tax (GST) etc. To support these entities during this phase, Government and Reserve Bank of India have taken several measures which inter-alia include  extension of time period from 90 days to 180 days past due criterion to all Micro, Small and Medium Enterprises (MSMEs) including those not registered  under  GST  as  a  standard  asset  subject  to  certain  conditions,  sanction  of  additional  working capital limits to  Micro and Small Enterprises (MSEs),  permitting one-time restructuring of existing loans to MSMEs  that  are  in  default  but  'standard'  as  on  1st  January  2019  without  an  asset  classification downgrade etc. These are in addition to previous support measures which, inter alia, include advice to all Scheduled Commercial Banks (SCBs) to achieve a 20% y-o-y growth in credit to MSEs, allocation of 60% of  the  MSEs  advances  to  the  micro  enterprise  accounts,  a  10%  annual  growth  in  number  of  micro enterprise accounts, adoption of one cluster, operationalising at least one specialised MSME Branch in every  district,  simplified  computation  of  working  capital  of  MSE  units  to  make  it  minimum  20%  of  the projected annual turnover of the unit for borrowal limits upto Rs.5 crore, setting up of Trade Receivables Discounting System (TReDS) to solve the problem of delayed payment of MSMEs etc.

Government  have  also  recently  launched  a  support  and  outreach  programme  for  MSMEs  on  2nd November, 2018. The programme inter-alia, includes, initiatives for MSMEs on access to credit, access to market, technology upgradation, ease of doing business, social security for MSME sector employees.