Lok Sabha Question No. 743 (UNSTARRED), answered on 2020-09-17
Subject: Financial Support to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rahul Gandhi

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

## LOK SABHA UNSTARRED QUESTION NO. 743

TO BE ANSWERED ON: 17.09.2020

## FINANCIAL SUPPORT TO MSMEs

## 743.                SHRI RAHUL GANDHI:

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

- (a) the details of financial support announced by the Union Government to the MSME sector to  mitigate  the  impact  of  COVID  -19  pandemic  and  details  of  funds  sanctioned  and  actually credited to the account of the beneficiaries;
- (b) the details of the outstanding dues of the Union Government and Central Public Sector Undertakings (CPSUs) payable to MSMEs for supply of goods and services as on April 1, 2020;
- (c) the details of the measures taken to address the adverse impact of delay in clearance of dues and to ensure the timely clearance in future;
- (d) the  details  of  amount  paid  by  Union  Government  and  CPSUs  to  MSMEs  towards clearance of outstanding dues during the period from April-August, 2020; and
- (e) whether  any  suggestions  have  been  received  from  the  MSME  Sector  seeking  specific relief or support and if so, the details thereof?

## ANSWER

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

(a): Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 pandemic. Some of them are:

- i. Rs 20,000 crore Subordinate Debt for MSMEs.
- ii. Rs.  3  lakh  crore  Collateral  free  Automatic  Loans  under  Emergency  Credit  Line Guarantee Scheme (ECLGS) for businesses, including MSMEs.
- iii. Rs. 50,000 crore equity infusion through MSME Fund of Funds.
- iv. New revised criteria for classification of MSMEs.
- v. New Registration of MSMEs through 'Udyam Registration' for Ease of Doing Business.
- vi. No global tenders for procurement up to Rs. 200 crores,
- vii. Scheme for easy access of credit to street vendors.

Department of Financial Services which is Nodal Department for ECLGS has  reported that  as  on  09.09.2020,  an  amount  of  Rs.  163,103  crore  has  been  sanctioned  to  42,01,060 borrowers and an amount of   Rs. 117,885 crore has been disbursed to  25,01,216 borrowers under Collateral free Automatic Loans.

(b) to (d): As per the information available on the Samadhan Portal, the status of  dues of the Union Government and Central Public Sector Undertakings (CPSUs) payable to MSMEs for after Aatma Nirbhar Bharat Package  is under:

The status of MSME dues as on 12.09.2020 are as shown in the table below:

| Reported Month                                                                |   Total Dues by close of month (in Rs. Crore) |   Paid during the month (in Rs. Crore) |   Pending at the end of month (in Rs. Crore) |
|-------------------------------------------------------------------------------|-----------------------------------------------|----------------------------------------|----------------------------------------------|
| May 2020 (25 Ministries& 79 CPSEs Reported)                                   |                                       2349.53 |                                1787.89 |                                       561.64 |
| June 2020 (25 Ministries& 86 CPSEs Reported)                                  |                                       2553.94 |                                1905.11 |                                       648.83 |
| July 2020 (30 Ministries & 108 CPSEs Reported)                                |                                       4124.34 |                                3155.16 |                                       969.19 |
| August 2020 (25 Ministries &91 CPSEs Reported on 12 th Sep., 2020 at 4.00 PM) |                                       3527.33 |                                2696.97 |                                       830.36 |

However,  Government  has  taken  many  steps  to  get  the  dues  payable  to  the  MSMEs cleared by the public sector units of the Central Governments. The Ministry has taken up the subject  vigorously  with  the  Central  Ministries,  CPSEs  and  State  Governments  and  Corporate World.  In  addition  to  this  Government  of  India  has  also  taken  various  steps  to  resolve  the problem of delayed payments to MSMEs which iner-alia include :-

- i. Creation of the MSME Samadhaan Portal.
- ii. Making it mandatory for all CPSEs to upload the information regarding their dues on the portal.
- iii. Issuance  of  notification  requiring  all  companies  to  submit  half-yearly  returns  about their dues.
- iv. Roping in NeSL Information Utility to do default broadcast of buyers from MSEs to their other creditors.
- v. Issuance of direction by notification to companies with turnover above Rs.500 crore and to all CPSEs to get themselves  on boarded on this platform

As reported by the CPSUs and Ministry/Departments of the Government of India in the Samadhan Portal, an amount of Rs 9545 crore has been released in last four months i.e (MayAugust) to clear the pending dues of MSMEs.

- (e): Ministry of MSME receives suggestions/inputs from individuals as well as organizations on various issues pertaining to MSME ecosystem. Such suggestions/inputs help the Ministry in order to further refine its schemes and make them more effective for the sector.

******