Lok Sabha Question No. 1966 (UNSTARRED), answered on 2020-09-22
Subject: Impact of Covid-19 on MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rahul Ramesh Shewale, N.K. Premachandran, Santokh Singh Chaudhary

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

## LOK SABHA UNSTARRED QUESTION No. 1966

TO BE ANSWERED ON 22.09.2020

## IMPACT OF COVID-19 ON MSME SECTOR

## 1966.        SHRI RAHUL RAMESH SHEWALE: SHRI N.K. PREMACHANDRAN: SHRI SANTOKH SINGH CHAUDHARY:

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

- (a) whether the Government has made any assessment of the impact of Covid-19 pandemic on MSME sector so far and if so, the details and outcome thereof and if not, the reasons therefor;
- (b) the number of MSMEs which have become sick/been closed during the period of  nation  wide  lockdown  due  to  said  pandemic,  State/UT-wise  and  the  details  of contribution of MSME sector in enhancing unemployment due to the same;
- (c) the financial package announced by the Government for MSME sector for its revival along with number of MSMEs revived from such package so far, State/UTwise;
- (d) whether banks are not implementing stimulus package in its true spirit and if so, the details thereof and the steps taken thereon;
- (e) whether the Government proposes to introduce an effective monitoring system for implementation of the scheme and if so, the details thereof; and
- (f) whether  loans  to  MSMEs  have  contracted  year-on-year  in  July  and  August, 2020 and if so, the details thereof along with the reasons therefor and the steps taken by the Government to revive MSMEs and generate employment?

## ANSWER

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

- (a):      Various  sectors  including  MSME  Sector  have  been  affected  temporarily  by nation-wide lockdown/Covid-19 Pandemic in the country.

(b): Under Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises, the number of Accounts referred to the Committee and Accounts resolved by the committee are:

|       |                            | TotalMSME                                               | TotalMSME                                               |
|-------|----------------------------|---------------------------------------------------------|---------------------------------------------------------|
| S No. | For the half year          | Accounts referred to the Committee during the half year | Accounts resolved by the Committee during the half year |
| 1     | October 2016- March 2017   | 1,00,803                                                | 1,37,282                                                |
| 2     | April 2017- September 2017 | 87,062                                                  | 95,107                                                  |
| 3     | October 2017-March 2018    | 1,30,208                                                | 1,30,473                                                |
| 4     | April 2018-September 2018  | 1,50,165                                                | 1,23,227                                                |
| 5     | November 2018-March 2019   | 1,42,275                                                | 1,46,519                                                |
| 6     | April 2019-September 2019  | 1,72,949                                                | 1,50,613                                                |
| 7.    | October 2019-March 2020    | 3,39,728                                                | 3,24,621                                                |

Source: RBI

Note: Number of cases resolved by the committees is more than the cases referred due to  some  pending cases with the committees  at the beginning  of the half year which have been resolved during the period.

- (c) & (d): 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 which include:
- i) Rs 20,000 crore Subordinate Debt for MSMEs.
- ii) Rs. 3 lakh crores Collateral free Automatic Loans for business, 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,  this  will  help MSME.

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.

As per data reported by Member Lending Institutions (MLIs), an amount of Rs. 1,63,103  crore  has  been  sanctioned  to  42,01,060  borrowers  and  an  amount  of  Rs. 1,17,885  core  disbursed  to  25,01,216  borrowers  under  the  Emergency  Credit  Line Guarantee Scheme (ECLGS) as on September 9, 2020.

(e): Ministry  of  MSME  has  already  implemented  SAMADHAAN  Portal  for empowering micro and small entrepreneurs across the country to directly register their cases  relating  to  delayed  payments  and  SAMBANDH  Portal  for  monitoring  the implementation of Public Procurement Policy for micro and small enterprises in the country.

(f): Growth/decline  in  credit  outstanding  to  MSMEs  by  Scheduled  Commercial Banks for the quarter ended June 2020 vis-à-vis March 2020 is given below:

|                                                      | Credit Outstanding to MSMEs in Rs. Crores   | Credit Outstanding to MSMEs in Rs. Crores   |                                           |
|------------------------------------------------------|---------------------------------------------|---------------------------------------------|-------------------------------------------|
| Bank Group Category                                  | March 2020                                  | June 2020*                                  | Growth/ Decline over the previous quarter |
| Public Sector Banks                                  | 893314.83                                   | 838708.28                                   | -6.11%                                    |
| Private Sector Banks (including Small Finance Banks) | 646988.27                                   | 659074.25                                   | 1.87%                                     |
| Foreign Banks                                        | 73279.06                                    | 65458.95                                    | -10.67%                                   |
| Total                                                | 1613582.166                                 | 1563241.49                                  | -3.12%                                    |

Source: RBI

Ministry of Micro Small and Medium Enterprises (MSME) implements various schemes and programmes for the growth and development of MSME  Sector in the country.  These  schemes  and  programmes  include  Prime  Minister's  Employment Generation Programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI),  A  Scheme  for  Promoting  Innovation, Rural Industry  & Entrepreneurship (ASPIRE), Credit Guarantee Scheme for Micro and Small Enterprises,  Micro  and  Small  Enterprises  Cluster  Development  Programme  (MSECDP), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCSTUS).

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