Lok Sabha Question No. 4191 (UNSTARRED), answered on 2019-07-18
Subject: Expert Committee on MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sanjay Sadashivrao Mandlik, Sudheer Gupta, Gajanan Chandrakant Kirtikar, Srinivas Kesineni, Imtiaz Jaleel Syed, Raghu Ramakrishna Raju Kanumuru, Aparajita Sarangi, Asaduddin Owaisi, Venkatesh Netha Borlakunta, Bidyut Baran Mahato

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

## LOK SABHA UNSTARRED QUESTION NO. 4191 TO BE ANSWERED ON: 18.07.2019

## EXPERT COMMITTEE ON MSMEs

## 4191.  SHRI SANJAY SADASHIV RAO MANDLIK:

SHRI SUDHEER GUPTA:

SHRI GAJANAN KIRTIKAR:

SHRI SRINIVAS KESINENI:

SHRI SYED IMTIAZ JALEEL:

SHRI KANUMURU  RAGHU RAMA KRISHANA RAJU:

SHRIMATI APARAJITA SARANGI:

SHRI ASADUDDIN OWAISI:

SHRI VENKATESH NETHA BORLAKUNTA:

SHRI BIDYUT BARAN MAHATO

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

- (a) whether  small  businesses  which  account  for  more  than  50  per  cent  of employment in the country are facing a spate of disruptions since the demonetization, if so, the details thereof;
- (b) whether the Reserve Bank of India(RBI) has constituted an Expert Committee on  Micro,  Small  and  Medium  Enterprises  (MSMEs)  to  undertake  a  comprehensive review of the sector and to identify causes and proposes long-term solutions for their economic and financial sustainability and if so, the details thereof;
- (c) whether the said Committee has submitted its report to the Government and if so, the details thereof and the main recommendations made by the Committee along with the response of the Government on the recommendations of RBI;
- (d) whether RBI has suggested a Rs. 5000 crore stressed asset fund for domestic MSMEs to provide relief to small  businesses hurt due to  demonetization,  GST and ongoing liquidity crunch and if so, the details thereof and the steps taken/ being taken by the Government in this regard;
- (e) whether  the  Committee  has  suggested  for  forming  a  Government  sponsored fund of Rs. 10,000 crore to support venture capital and private equity firms investing in MSMEs and if so, the details thereof; and
- (f) whether the panel has also suggested to replace MSMED Act, 2006 to MSME Code and if so, the details thereof and steps taken or being taken by the Government to develop MSMEs in the country?

## ANSWER

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

(a): As per the preliminary assessment report brought out by the Reserve Bank of India, the adverse impact of demonetization had been only transient.

(b): Yes,  sir.

(c): As  per  the  information  submitted  by  the  Reserve  Bank  of  India,  the  Expert committee has submitted its report to them. The committee has made recommendations  for  legislative  and  institutional  framework,  access  to  finance, capacity building and new technological interventions for lending to MSME sector.

(d): No  such  plan  is  under  consideration  in  the  Ministry  of  Micro,  Small  & Medium Enterprises,  Government of India.

(e): The committee has suggested setting up of a Government sponsored Fund of Funds of Rs. 10,000 crore that will support crowd funding from venture capital and private equity firms investing in MSMEs.

(f): The  committee  has  suggested  to  reframe  the  MSMED  Act,  2006  as  a comprehensive and holistic MSME code which revolves around a policy based and transparent inspection system.

The  Ministry  of  Micro,  Small  and  Medium  Enterprises  implements  various schemes for the benefit of MSMEs in all part of India including aspirational/backward districts, which include Prime Minister's Employment  Generation  Programme (PMEGP),  Micro  and  Small  Enterprises-Cluster  Development  Programme  (MSECDP),Scheme for Promotion of MSMEs in North Eastern Region and Sikkim, Tool Rooms & Technology Centers, Mission Solar Charkha (MSC), Scheme for 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) and Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

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