Lok Sabha Question No. 1983 (UNSTARRED), answered on 2020-09-22
Subject: Disbursement of Loan to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1983

TO BE ANSWERED ON: 22.09.2020

## DISBURSEMENT OF  LOAN TO MSMEs

1983.                SHRI  RAVNEET SINGH BITTU:

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

- (a) the  details  of  initiatives  taken  for  Micro,  Small  and  Medium  enterprises  (MSME) sector including amount disbursed under the '59 Minute Loan Programme' State / UT- wise during the last two years;
- (b) whether  this  programme  is  available  for  new  budding  entrepreneurs  and  if  so,  the details thereof;
- (c) the amount of loans targeted to be disbursed and actually disbursed by the banks and NBFCs under the Credit guarantee fund Trust for Micro and Small enterprises (CGTMSE) State/UT-wise during the last three years and the reasons for shortfall in targeted disbursal of loans, if any;
- (d) the steps being taken by the Government to help the small players in MSME sector who do not have the required documents nor the capital to avail the facility of loan and ease the process for them by measures like introducing a single Unique Enterprise Identifier; and
- (e) the  steps  taken  to  provide  more  back-end  services  to  boost  subsidised  technology based production and R&D activities in the MSME sector?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI PRATAP CHANDRA SARANGI)

- (a): During  last  two  years  Government  of  India  has  taken  a  number  of  initiatives  to develop  the  MSME  Sector  in  the  country.  These  inter-alia  include  hike  in  the  budgetary allocation of the Ministry from Rs 6552 crore in FY 2018-19 to Rs 7572 crore in FY 202021, automation and digitization of the processes of business loans through launch of web portal www.psbloansin59minutes.com, Interest Subvention Scheme for Incremental Credit to MSMEs, disbursal of record credit under Credit Guarantee Scheme for Micro & Small Enterprises  in  2018-19  and  2019-20,  new  Technology  Centers,  launching  of  MSME Samadhan  Portal  for  delayed  payments  and  Sambandh  Portal  for  Public  Procurement Policy, CHAMPIONS portal etc.  In addition to this, Government has recently announced measures  such  as  Subordinate  Debt  for  Stressed  MSMEs,  'Fund  of  Funds'  for  MSMEs, Emergency Credit Line Guarantee  Scheme etc. in the  Atmanirbhar Bharat package. DFS has  reported  that  since  the  launch  of  psbloansin59minutes    portal  on  02.11.2018,  loans amounting to Rs. 54,733 crore have been disbursed by banks as on 31.08.2020 and Statewise  details in this regard are however not maintained.

(b): The  psbloanin59minutes  portal  is  also  available  for  new  entrepreneurs  having  a minmum  of  one  year's  financial  history,  for  loan  amount  ranging  from  Rs.1.00  lakh  to Rs.5.00 crore.

(c): Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  is  mainly  a  demand centric  scheme.  During last  two  years  i.e  financial  years  2018-19  and  2019-20,  there  has been a record disbursal of credit under the scheme. The performance for last three years is given in the table below:

| Year           | No of Proposals Approved   | Approved Amount in Rs crore   |
|----------------|----------------------------|-------------------------------|
| 2,63,195       | 19,065.90                  | 2017-18                       |
| 4,35,520       | 30,168.57                  | 2018-19                       |
| 8,46,650       | 45,851.22                  | 2019-20                       |
| Source- CGTMSE | Source- CGTMSE             | Source- CGTMSE                |

(d): Ministry  of  MSME has already launched a portal viz.  udyamregistration.gov.in for registration of MSMEs. This portal will generate a unique permanent registration number for the enterprise along with a QR code.

(e): Ministry has set up Technology Centres and their network is being expanded under the Technology Centre Systems Programme (TCSP) and the new Scheme of 'Establishment of new Technology Centres/Extension Centres', These Technology Centres assist MSMEs in their skilling and technological needs specially in high end technologies and are equipped with  multiple  cutting  edge  manufacturing  technologies,  such  as  CNC  Machines,  3D Manufacturing/ Additive Manufacturing, Laser/Ultrasonic machining, Robotics and Process Automation,  Precision  measurement/  Metrology  equipment,  for  General  Engineering  and Automotive  Sector,  State-of-the-art  Electronics  Manufacturing  Facilities,  Calibration  and Testing Facilities for Electronic Systems Design and Manufacturing (ESDM) sector.

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