Lok Sabha Question No. 1884 (UNSTARRED), answered on 2020-09-22
Subject: Loss of MSME Units due to Covid-19
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: V. Kalanidhi

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

## LOK SABHA UNSTARRED QUESTION No.1884

TO BE ANSWERED ON 22.09.2020

## LOSS OF MSME UNITS DUE TO COVID-19

## 1884.        DR. KALANIDHI VEERASWAMY:

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

- (a) whether the Government is aware that Covid-19 disruption have proven fatal for many of India's MSME units;
- (b) if  so,  the  details  of  the  number  of  MSME  units  affected  in  the  Country including Tamil Nadu;
- (c) whether  the  Government  is  also  aware  that  this  has  rendered  many  people jobless for indefinite time especially the rural people and if so, the details thereof;
- (d) the scheme formulated by the Government to bail out these enterprises; and
- (e) the steps taken by the Government for the survival of rural people who became jobless due to this pandemic?

## ANSWER

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

(a) to (c): COVID-19 epidemic has temporarily affected various sectors including Micro, Small and Medium Enterprises which also affected job scenario in the Country including Tamil Nadu.

Under the Prime Minister's Employment Generation Programme (PMEGP), the estimated employment generated (number of persons) in micro enterprises during the years 2017-18, 2018-19, 2019-20 and 2020-21 (as on 31.08.2020) are 3.87 lakh, 5.87 lakh, 5.33 lakh and 1.10 lakh,  respectively.

(d) to (e): The Ministry  of  MSME  implements  various schemes and programmes for growth and development of Micro, Small and Medium Enterprises (MSME) sector in  the  country.  These  schemes  and  programmes  include  Scheme  of  Fund  for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry &  Entrepreneurship (ASPIRE),  Interest  Subvention Scheme  for Incremental Credit to MSMEs, Cluster Development Programme (MSE-CDP).

Recently,  Post Covid-19,  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.
2. ii) Rs  3  lakh  crores  Collateral  free  Automatic  Loans  for  business,  including MSMEs.
3. iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.
4. iv) New revised criteria for classification of MSMEs.
- v) New  Registration  of  MSMEs  through  'Udyam  Registration'  for  Ease  of Doing     Business.
6. vi) No  global  tenders  for  procurement  up  to  Rs.  200  crores,  this  will  help MSME.

Other credit linked  scheme  of  Ministry  of  MSME  include  2%  Interest Subvention Scheme, Prime Minister's Employment Generation Programme (PMEGP), Credit linked capital Subsidy and Technology Upgradation Scheme (CLCS-TUS) and Credit Guarantee Fund Trust for Micro and Small Enterprises.

An online  Portal  'Champions'  has  been  launched  on  01.06.2020  by  Hon'ble Prime  Minister.  This  covers  many  aspects  of  e-governance  including  grievance redressal  and  handholding  of  MSMEs.  Through  the  portal,  total  19,593  grievances have been redressed upto 17.09.2020.

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