Lok Sabha Question No. 345 (STARRED), answered on 2020-03-18
Subject: Closure of Industries
Ministry: COMMERCE AND INDUSTRY
Asked by: Rajendra Dhedya  Gavit

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

STARRED QUESTION NO. 345.

TO BE ANSWERED ON WEDNESDAY, THE  18 TH   MARCH, 2020.

## CLOSURE OF INDUSTRIES

## *345.  SHRI RAJENDRA DHEDYA GAVIT:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government is aware of the financial crisis faced by industries in some sectors and if so, the details thereof;
- (b) whether the Government is also aware of the closure of industries in some sectors and if so, the details thereof;
- (c) whether the Government has identified the reasons for the above;
- (d) whether the Government has conducted any study in this regard; and
- (e) the  corrective  measures  being  taken  by  the  Government  in  regard  to  the position mentioned in parts (a) and (b) above?

## ANSWER वाणिज्य एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a) to (e): A Statement is laid on the Table of the House.
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## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 345 FOR ANSWER ON 18.03.2020.

- (a) to (e): Promotion of industrial growth is a continuous and ongoing effort and regular  feedback  is  taken  from  multiple  stakeholders  as  part  of  this exercise.    The  industrial  growth  process  is  accompanied  by  the formation of new enterprises and closure of old ones, in response to the prevailing financial and economic scenario .

Recently,  Government  has  taken  various  steps,  in  addition  to  the ongoing schemes, to boost industrial production of India.

## 1. Infrastructure:

- (i) The National Infrastructure Pipeline (NIP) was launched in December, 2019, under which expenditure of Rs 102 lakh crore  is  proposed  as  capital  expenditure  in  infrastructure sectors in India during the fiscals 2020 to 2025.
- (ii) Accelerated development of highways is being undertaken. This  will  include  development  of  2500  Km  access  control highways,  9000  Km  of  economic  corridors,  2000  Km  of coastal  and  land  port  roads  and  2000  Km  of  strategic highways.
2. Reduction in Corporate Tax: A new provision has been inserted in the  Income-tax  Act  with  effect  from  FY  2019-20  which  allows  any domestic  company  an  option  to  pay  income-tax  at  the  rate  of  22% subject to condition that they will not avail any exemption/ incentive. For new manufacturing companies incorporated on or after 01.10.2019, the rate was brought down to 15 per cent. Budget 202021 announced that this reduction of corporate tax rate to 15 per cent for  new  manufacturing  companies  will  be  extended  to  new  power generation companies as well.
3. Start-ups: The  government  proposes  to  provide  early  life  funding, including  a  seed  fund  to  support  ideation  and  development  of  early stage  Start-ups.  Further,  time  period  within  which  Employee  Stock Options  (ESOPs)  can  be  issued  by  Startups  recognized  by  the Department  for  Promotion  of  Industry  &  Internal  Trade  (DPIIT)  to promoters or Directors holding more than 10% of equity shares, has been  enhanced  from  5  years  to  10  years  from  the  date  of  their incorporation.
4. Strengthening  NBFCs  and  Banks Government  announced  capital infusion  of  Rs  70,000  crore  into  public  sector  banks,  formulated  a Partial  Credit  Guarantee  scheme  for  the  NBFCs  after  the  Union Budget 2019-20, and merged 10 major Public Sector Banks into four.
5. Some Trade Policy measures were announced in Budget 2020-21 to promote  domestic  manufacturing  such  as  increasing  basic  customs duties (BCD) on footwear, toys and furniture; modification of Customs Act  for  strict  enforcement  of  Rules  of  Origin  norms  for  sensitive imports; strengthening of safeguard duties and anti-dumping duty etc.
6. The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSMEs) implements  various  schemes  to  support  different  sectors  of  MSMEs across  the  country.  These  include  Prime  Minister's  Employment Generation  Programme  (PMEGP),  Micro  and  Small  EnterprisesCluster Development Programme (MSE-CDP), Scheme for Promotion of  MSMEs  in  North  Eastern  Region  and  Sikkim,  Tool  Rooms  and Technology Centers, Mission Solar Charkha (MSC), 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) and Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

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