Lok Sabha Question No. 713 (UNSTARRED), answered on 2020-09-17
Subject: Policy to Boost MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Pratima Bhoumik, Ranjeetsingh Naik Nimbalkar

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 713

TO BE ANSWERED ON: 17.09.2020

## POLICY TO BOOST MSMEs

## 713.                 MS. PRATIMA BHOUMIK:

## SHRI RANJEETSINGH HINDURAO NAIK NIMBALKAR:

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

- (a) whether the Government has made any changes in the policy to provide better credit facility, technology up-gradation and skill to boost the entire MSME ecosystem and if so, the details thereof;
- (b) the funds allocated by the Government for different MSME Schemes and the number of MSMEs  benefited during the last three years, State / UT-wise;
- (c) whether thousands of MSMEs are facing problem in clearance of their payments from State Governments;
- (d) if so, the details thereof and the action taken in this regard;
- (e) whether the Government proposes to increase the number of MSME industries in the country on sustainable basis through implementation of various schemes and programmes and if so, the details thereof?

## ANSWER

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

- (a): The  Government  announced  the  Atma  Nirbhar  Package  on  13 th May  2020  which included various measures for different  sectors  including MSMEs. Government of India and Reserve Bank of India have announced a series of measures to infuse liquidity in the Economy in  general  and  MSME  sector  in  particular.  These  inter-alia  include      i)   moratorium  upto 31 st August,  2020  on  repayment  of  installments  of  term  loans/cash  credit/over  draft  (ii) reducing the  Cash  Reserve  Ratio  and  Repo  rate   (iii)  Special  refinance  facility  of  Rs.15,000 crore to SIDBI for on-lending/refinancing (iv) Special liquidity scheme for NBFCs, HFCs and MGIS worth  Rs.30,000 crore  (v) Emergency Credit Guarantee Line of  Rs. 3 lakh crore for Standard accounts and stressed accounts ( SMA-0 and SMA-1) (vi) Credit Guarantee Scheme for Subordinate Debt for SMA-2 and NPA accounts for infusing Rs. 20,000 crore in MSME Sector (vii) Credit Guarantee scheme for Street Vendors (PM SVANidhi) which also involves interest subsidy (viii) partial credit guarantee scheme for the liabilities of NBFCs and MFIs etc.
- (b): The overall Budget allocation of the Ministry of MSME during last three years i.e 201718,    2018-19  and  2019-20  is  at  Annexure  I.  The  year  wise  and  state  wise  list  of  number  of beneficiaries  in  respect  of  two  major  enterprise  specific  schemes  viz.  Prime  Minister's Employment Generation Programme (PMEGP) and Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) is at Annexure II.(A)  & ( B).

(c) & (d): Government has taken many steps to get the dues payable to the MSMEs cleared by the public sector units of State and the Central Governments. The Ministry has taken up the subject  vigorously  with  the  Central  Ministries, CPSEs and  State  Governments  and  Corporate World. As per the data available on SAMADAN portal the outstanding payments to units in the MSME sector in the last two years are given below:

(Rs. in crore)

| Year (1)   |   Resolved, awarded amount (2) |   Resolved, disallowed amount (3) |   Amount involve in rejected applications (4) |   Amount involve in pending applications (5) |   Total amount involved in applications (6) |
|------------|--------------------------------|-----------------------------------|-----------------------------------------------|----------------------------------------------|---------------------------------------------|
| 2019-20    |                         391.23 |                             67.46 |                                        832.69 |                                      5093.49 |                                     6384.87 |
| 2018-19    |                         489.75 |                            179.21 |                                        680.98 |                                      1495.4  |                                     2845.34 |

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 |

(e): It has always been the endeavor of Government of India to strengthen the MSME sector by various means. The change in the definition of MSME notified on 26 th June 2020 is one of such moves directed towards expansion of MSME Sector as well as enhancement of its scope.

******

Annexure-I referred to in reply to part (b)  of the  Lok Sabha Unstarred  Question No.713 for answer on 17.09.2020.

The details of funds allocated and utilized under MSME Sector (during the last three years) are given below:

| Financial Year   |   Budget Estimate (BE) (in Rs. crore) |   Expenditure (in Rs. crore) |
|------------------|---------------------------------------|------------------------------|
| 2016-17          |                               3464.77 |                      3626.41 |
| 2017-18          |                               6481.96 |                      6222.18 |
| 2018-19          |                               6552.61 |                      6513.12 |
| 2019-20          |                               7011    |                      6706.74 |

Annexure-II (A) referred to in reply to part (b) of the  Lok Sabha Unstarred Question No.713 for answer on 17.09.2020

| Sr. No.   |                    | State wise No. of Guarantees and amount approved under CGTMSE   | State wise No. of Guarantees and amount approved under CGTMSE   | State wise No. of Guarantees and amount approved under CGTMSE   | State wise No. of Guarantees and amount approved under CGTMSE   | State wise No. of Guarantees and amount approved under CGTMSE   | State wise No. of Guarantees and amount approved under CGTMSE   | State wise No. of Guarantees and amount approved under CGTMSE   | State wise No. of Guarantees and amount approved under CGTMSE   |
|-----------|--------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|
|           |                    | FY 17-18                                                        | FY 17-18                                                        | FY 18-19                                                        | FY 18-19                                                        | FY 19-20                                                        | FY 19-20                                                        | FY 20-21 (till 31.08.2020)                                      | FY 20-21 (till 31.08.2020)                                      |
|           | States and UTs     | No. of Guarantees                                               | Approved Amt (in Rs. CR)                                        | No. of Guarantees                                               | Approved Amt (in Rs. CR)                                        | No. of Guarantees                                               | Approved Amt (in Rs. CR)                                        | No. of Guarantees                                               | Approved Amt (in Rs. CR)                                        |
| 1         | ANDAMAN& NICOBAR   | 302                                                             | 24.78                                                           | 332                                                             | 30.10                                                           | 264                                                             | 29.45                                                           | 93                                                              | 8.93                                                            |
| 2         | ANDHRA PRADESH     | 10141                                                           | 341.67                                                          | 29812                                                           | 979.41                                                          | 50562                                                           | 1556.78                                                         | 17339                                                           | 448.71                                                          |
| 3         | ARUNACHAL PRADESH  | 400                                                             | 29.37                                                           | 347                                                             | 24.28                                                           | 415                                                             | 46.95                                                           | 235                                                             | 22.43                                                           |
| 4         | ASSAM              | 7165                                                            | 467.53                                                          | 12978                                                           | 792.69                                                          | 14070                                                           | 686.72                                                          | 5196                                                            | 262.82                                                          |
| 5         | BIHAR              | 10572                                                           | 528.28                                                          | 18464                                                           | 1295.92                                                         | 24531                                                           | 1303.32                                                         | 9357                                                            | 414.66                                                          |
| 6         | CHANDIGARH         | 549                                                             | 62.42                                                           | 7752                                                            | 335.31                                                          | 1778                                                            | 133.61                                                          | 543                                                             | 36.95                                                           |
| 7         | CHHATTISGARH       | 3043                                                            | 322.80                                                          | 5252                                                            | 497.30                                                          | 14022                                                           | 705.70                                                          | 5186                                                            | 214.02                                                          |
| 8         | DADRA&NAGAR HAVELI | 101                                                             | 34.03                                                           | 111                                                             | 24.69                                                           | 256                                                             | 26.88                                                           | 173                                                             | 10.45                                                           |
| 9         | DAMAN &DIU         | 38                                                              | 7.89                                                            | 73                                                              | 27.14                                                           | 191                                                             | 32.48                                                           | 232                                                             | 8.13                                                            |
| 10        | DELHI              | 4071                                                            | 617.80                                                          | 13615                                                           | 1350.09                                                         | 24917                                                           | 2182.94                                                         | 5107                                                            | 485.57                                                          |
| 11        | GOA                | 1216                                                            | 111.19                                                          | 1353                                                            | 120.22                                                          | 2594                                                            | 183.07                                                          | 830                                                             | 57.56                                                           |
| 12        | GUJARAT            | 9640                                                            | 1525.85                                                         | 21423                                                           | 2104.14                                                         | 58595                                                           | 3859.49                                                         | 19964                                                           | 1071.48                                                         |
| 13        | HARYANA            | 4185                                                            | 487.42                                                          | 5179                                                            | 628.92                                                          | 25916                                                           | 1582.88                                                         | 7735                                                            | 374.56                                                          |
| 14        | HIMACHAL PRADESH   | 3313                                                            | 210.36                                                          | 2682                                                            | 209.69                                                          | 7538                                                            | 436.78                                                          | 2831                                                            | 138.97                                                          |
| 15        | JAMMU &KASHMIR     | 11538                                                           | 259.84                                                          | 11724                                                           | 348.33                                                          | 12887                                                           | 416.03                                                          | 4909                                                            | 155.75                                                          |
| 16        | JHARKHAND          | 10007                                                           | 942.59                                                          | 11281                                                           | 1244.52                                                         | 15340                                                           | 1116.03                                                         | 5952                                                            | 336.47                                                          |
| 17        | KARNATAKA          | 20845                                                           | 1967.77                                                         | 27796                                                           | 2496.55                                                         | 68572                                                           | 4068.61                                                         | 24305                                                           | 1251.20                                                         |
| 18        | KERALA             | 17816                                                           | 572.07                                                          | 17189                                                           | 851.75                                                          | 33739                                                           | 1248.12                                                         | 12833                                                           | 396.78                                                          |
| 19        | LADAKH             | NA                                                              | NA                                                              | NA                                                              | NA                                                              | 26                                                              | 2.46                                                            | 36                                                              | 4.71                                                            |
| 20        | LAKSHA DEEP        | 11                                                              | 0.28                                                            | 15                                                              | 0.60                                                            | 52                                                              | 0.91                                                            | 37                                                              | 0.59                                                            |
| 21        | MADHYAPRADESH      | 18766                                                           | 1169.21                                                         | 26325                                                           | 1572.92                                                         | 40822                                                           | 2098.28                                                         | 17108                                                           | 692.55                                                          |
| 22        | MAHARASHTRA        | 20223                                                           | 2386.34                                                         | 41206                                                           | 3718.20                                                         | 83709                                                           | 5807.82                                                         | 37865                                                           | 1756.74                                                         |

| 23    | MANIPUR       |    952 |    52.95 |   1419 |    43.89 |    939 |    42.25 |    346 |    15.71 |
|-------|---------------|--------|----------|--------|----------|--------|----------|--------|----------|
| 24    | MEGHALAYA     |    866 |    45.73 |    515 |    44.54 |   1153 |    70.46 |    441 |    22.54 |
| 25    | MIZORAM       |    355 |    18.73 |    267 |    23.09 |    473 |    29.06 |    181 |    10.92 |
| 26    | NAGALAND      |   1226 |    52.61 |   1003 |    39.62 |    917 |    60.95 |    423 |    18.26 |
| 27    | ORISSA        |  12310 |   738.14 |  19266 |  1213.41 |  26167 |  1347.05 |  12689 |   437.06 |
| 28    | PONDICHERRY   |    611 |    27.91 |    489 |    37.81 |   1578 |    80.41 |    689 |    32.89 |
| 29    | PUNJAB        |   7029 |   465.7  |   6850 |   559.56 |  24542 |  1022.21 |   8079 |   290.01 |
| 30    | RAJASTHAN     |   4838 |   437.41 |  20013 |  1148.29 |  41289 |  1997.79 |  17652 |   550.73 |
| 31    | SIKKIM        |    167 |    10.54 |    280 |    24.94 |    435 |    22.92 |    143 |     4.98 |
| 32    | TAMILNADU     |  30282 |  1784.11 |  37692 |  2543.01 |  89725 |  4352.82 |  29012 |  1298.47 |
| 33    | TELANGANA     |   6343 |   558.14 |  17037 |  1021.41 |  39162 |  2211.72 |  10069 |   513.89 |
| 34    | TRIPURA       |    843 |    31.88 |    455 |    24.22 |   1378 |    53.67 |    699 |    23.09 |
| 35    | UTTAR PRADESH |  29266 |  1666.76 |  49983 |  2862.95 |  89271 |  4154.02 |  26992 |  1279.14 |
| 36    | UTTARAKHAND   |   3630 |   241.48 |   4693 |   318.33 |  11158 |   482.19 |   3554 |   145.27 |
| 37    | WEST BENGAL   |  10535 |   864.32 |  20649 |  1610.74 |  37667 |  2398.35 |  13584 |   596.14 |
| TOTAL | TOTAL         | 263195 | 19065.9  | 435520 | 30168.6  | 846650 | 45851.2  | 302419 | 13389.1  |

Annexure-II(B)  referred to in reply to part (b)  of the  Lok Sabha Unstarred  question No.713 for answer on 17.09.2020

## State-wise position on Number of projects assisted under PMEGP Scheme

| Sr. No.   | State/UT                 | 2017-18   | 2018-19   | 2019-20   |   2020-21 (upto 31.08.2020) |
|-----------|--------------------------|-----------|-----------|-----------|-----------------------------|
| 1         | Andaman &Nicobar Islands | 218       | 229       | 93        |                          25 |
| 2         | Andhra Pradesh           | 1527      | 2220      | 2192      |                         469 |
| 3         | Arunachal Pradesh        | 209       | 280       | 211       |                           8 |
| 4         | Assam                    | 2282      | 3737      | 2603      |                         611 |
| 5         | Bihar                    | 2307      | 3303      | 2221      |                         396 |
| 6         | Chhattisgarh             | 1463      | 3094      | 2811      |                         464 |
| 7         | Delhi                    | 115       | 132       | 93        |                           9 |
| 8         | Goa                      | 50        | 78        | 90        |                          10 |
| 9         | Gujarat                  | 1876      | 3500      | 3983      |                         637 |
| 10        | Haryana                  | 1718      | 2165      | 2029      |                         376 |
| 11        | Himachal Pradesh         | 886       | 1399      | 1226      |                         205 |
| 12        | Jammu& Kashmir           | 3753      | 7529      | 5355      |                        1383 |
| 13        | Jharkhand                | 1111      | 1797      | 1544      |                         167 |
| 14        | Karnataka                | 2115      | 3657      | 3697      |                         922 |
| 15        | Kerala                   | 1347      | 2486      | 2421      |                         461 |
| 16        | Lakshadweep              | 00        | 0         | 0         |                           0 |
| 17        | Madhya Pradesh           | 1804      | 2526      | 2168      |                         482 |
| 18        | Maharashtra              | 3329      | 5642      | 4404      |                         785 |
| 19        | Manipur                  | 600       | 1291      | 1173      |                         338 |
| 20        | Meghalaya                | 75        | 390       | 377       |                          51 |
| 21        | Mizoram                  | 249       | 1123      | 760       |                         205 |
| 22        | Nagaland                 | 930       | 1208      | 1109      |                         100 |
| 23        | Odisha                   | 2399      | 3070      | 2718      |                         437 |
| 24        | Puducherry               | 44        | 76        | 64        |                           8 |
| 25        | Punjab                   | 1520      | 1801      | 1695      |                         338 |
| 26        | Rajasthan                | 1577      | 2359      | 3025      |                         452 |
| 27        | Sikkim                   | 37        | 55        | 79        |                           6 |
| 28        | Tamilnadu                | 4095      | 5185      | 5172      |                        1008 |
| 29        | Telangana                | 1190      | 2051      | 2178      |                         455 |
| 30        | Tripura                  | 1116      | 1179      | 962       |                         212 |
| 31        | UT Chandigarh            | 45        | 28        | 14        |                           3 |
| 32        | UT Ladakh                | NA        | NA        | NA        |                          34 |
| 33        | Uttar Pradesh            | 5432      | 5243      | 6120      |                        1827 |
| 34        | Uttarakhand              | 1613      | 2181      | 1844      |                         293 |
| 35        | West Bengal              | 1366      | 2413      | 2222      |                         581 |
|           | Total                    | 48398     | 73427     | 66653     |                       13758 |

Source: ARI Division, M/o MSME