Lok Sabha Question No. 464 (STARRED), answered on 2019-07-25
Subject: Development of MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Y. S. Avinash Reddy, Komati Reddy Venkat Reddy

* 464

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

## LOK SABHA STARRED QUESTION No. *464 TO BE ANSWERED ON: 25.07.2019

## DEVELOPMENT OF MSME SECTOR

SHRI Y.S. AVINASH REDDY:

SHRI KOMATI REDDY VENKAT REDDY:

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

- (a) whether the Government has given special attention for the development of the Micro, Small and Medium Enterprises(MSMEs) sector and if so, the details thereof;
- (b) whether the Government has directed the banking sector to deal with the MSME loans by appointing officers of General Manager level and if so, the details thereof;
- (c) the details of the exemptions and sops being given to MSMEs for speedy development;
- (d) whether the measures initiated by the Government in strengthening the MSME sector have gradually started yielding positive results in the development of MSMEs in the country, which are the backbone of the country's economy and if so, the details thereof; and
- (e) the details of the objectives and the achievements made so far by the MSME sector?

## ANSWER

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

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

## Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. *464 for answer on 25.07.2019

(a): Yes, Sir. The Ministry of Micro, Small and Medium Enterprises (MSME) implements various Schemes/Programmes for the promotion and development of MSMEs in the country. These include Prime  Minister's  Employment  Generation  Programme  (PMEGP),  Micro  and  Small  EnterprisesCluster Development Programme (MSE-CDP), Tool Rooms & Technology Centers, Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Procurement and Marketing Support Scheme, Entrepreneurship Skill Development Programme (ESDP), Credit Guarantee Scheme for Micro and Small  Enterprises  (MSEs),  Credit  Linked  Capital  Subsidy  and  Technology  Upgradation  Scheme (CLCS-TUS) and Public Procurement Policy (PPP).

Government announced 12 key initiatives on 02.11.2018 to facilitate easy  access to credit, technology support and ease of doing business for MSMEs.

The  Insolvency  and  Bankruptcy  Code  (Amendment)  Ordinance,  2018  provides  relief  to Micro, Small and Medium Sector Enterprises (MSME) by not disqualifying the promoter to bid for his  enterprise  undergoing  Corporate  Insolvency  Resolution  Process  (CIRP)  provided  he  is  not  a wilful defaulter and does not attract other disqualifications not related to default.

- (b): The banks have designated senior level officers responsible for credit to MSMEs.
- (c):     Under Goods and Services Tax (GST) Act, Micro & Small units with turnover up to Rs. 1.5 crore  are  allowed  to  avail  benefits  under  the  composition  scheme.  Ministry  of  Micro,  Small  and Medium Enterprises (MSME) has launched the Interest Subvention Scheme for new and incremental credit to MSMEs under which 2% interest subvention is provided to all eligible units having Udyog Aadhar Number (UAN) and GST registration.
- (d) & (e): As  reported  by  Central  Statistics  Office  (CSO),  the  share  of  MSMEs  in  total  Gross Value Added (GVA) during 2016-17 was 31.8%. As reported by Directorate General of Commercial Intelligence  and  Statistics  (DGCIS),  the  share  of  MSME  related  products  in  total  exports  during 2018-19 is 48.10%.  As per 73 rd round of National Sample Survey (NSS) (2016-17) by Ministry of Statistics  and  Programme  Implementation  (MoSPI),  the  employed  persons  in  MSME  Sector  are about 11.10 crore.

Under  the  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  the  estimated employment generation has increased from 3.58 lakh to 5.87 lakh between the year 2014-15 to 201819.

The number and amount of Guarantees approved under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has increased during 2018-19 as compared to 2017-18. The details are given below:

| Year    |   No. of Credit Facilities Approved (in lakhs) |   Amount of Guarantees Approved ( in Rs. crore) |
|---------|------------------------------------------------|-------------------------------------------------|
| 2017-18 |                                           2.63 |                                         19065.9 |
| 2018-19 |                                           4.36 |                                         30168.6 |

As  per  the  data  received  from  the  Reserve  Bank  of  India  (RBI),  the  outstanding  credit  to Micro, Small and Medium Enterprise (MSME) sector by all Scheduled Commercial Banks during the last three years has increased as indicated below:

| Year ended               |   Amount Outstanding (in Rs. Crore) |
|--------------------------|-------------------------------------|
| March 2017               |                         1.07013e+06 |
| March 2018               |                         1.14935e+06 |
| March 2019 (Provisional) |                         1.49769e+06 |

The  Ministry  of  MSME  focuses  on  high  end  skilling  and  technical  support  through  the existing 18 Tool Rooms/Technology Centres.

The  details  of  the  training  provided  through  these  existing  18  Tool  Rooms/Technology Centres are given below:

| Year    |   No. Trainees Trained (in lakh) |
|---------|----------------------------------|
| 2016-17 |                             1.49 |
| 2017-18 |                             1.47 |
| 2018-19 |                             2.08 |

Public Procurement Policy mandates the Central Ministries/Departments/Public Sector Undertakings  to  procure  at  least  25%  of  the  annual  procurement  from  MSEs  in  place  of  20% stipulated  earlier.  An  online  'MSME-SAMBANDH'  portal  has  been  launched  to  track  effective implementation of Public Procurement Policy. The significant progress in the procurement of MSEs products and services are furnished below:

| Year    | Total Procurement (in Rs. crore)   |   Procurement from MSEs (in Rs. crore) |
|---------|------------------------------------|----------------------------------------|
| 2017-18 | 114,042                            |                                26357.5 |
| 2018-19 | 152620.40                          |                                40303.3 |

Government  has  adopted  'Cluster  Development  Approach'  (CDP)  as  a  key  strategy  for enhancing the productivity, competitiveness and capacity building of Micro and Small Enterprises (MSEs). The details of the progress under the MSE-CDP are given below:

| Year    |   Projects Approved |   Projects completed |   Budget Utilized (in Rs. Crore) |
|---------|---------------------|----------------------|----------------------------------|
| 2016-17 |                   9 |                   10 |                           121.68 |
| 2017-18 |                  21 |                   24 |                           157.11 |
| 2018-19 |                  36 |                   28 |                           172.73 |

Khadi activity is considered as potential tool for creation of employment opportunities at the doorstep of rural artisans at very low capital investment. The details of the achievements in Khadi and Village Industries Sector are given below:

| Year        | Production (Rs. in crore)   | Production (Rs. in crore)   | Sales (Rs. in crore)   | Sales (Rs. in crore)   | Cumulative Employment (No. of persons in lakhs)   | Cumulative Employment (No. of persons in lakhs)   |
|-------------|-----------------------------|-----------------------------|------------------------|------------------------|---------------------------------------------------|---------------------------------------------------|
| Year        | Khadi                       | Village Industries          | Khadi                  | Village Industries     | Khadi                                             | Village Industries                                |
| 2016-17     | 1520.83                     | 41110.26                    | 2146.60                | 49991.61               | 4.56                                              | 131.84                                            |
| 2017-18     | 1626.66                     | 46454.75                    | 2510.21                | 56672.22               | 4.65                                              | 135.71                                            |
| 2018-19 (P) | 1963.30                     | 56255.18                    | 3215.13                | 71113.68               | 4.95                                              | 142.03                                            |

Note: Khadi includes Polyvastra & Solarvastra from 2015-16 onwards, P-Provisional

The Coir Board aims at the development of coir industry in the country by promoting exports of coir yarn and coir products. The details of the achievement of the Coir Board are given below:

| Year      | Production of coir fibre (in MT)   |   Export (Rs. in Crore) |
|-----------|------------------------------------|-------------------------|
| 2016-2017 | 5,56,900                           |                 2281.65 |
| 2017-2018 | 5,59,400                           |                 2532.28 |
| 2018-2019 | 7,49,600                           |                 2728.05 |