Lok Sabha Question No. 4727 (UNSTARRED), answered on 2020-03-23
Subject: Loan of Industries to Financial Institutions
Ministry: FINANCE
Asked by: Pushpendra Singh Chandel

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. †4727

TO BE ANSWERED ON THE 23 RD MARCH 2020/ CHAITRA 3, 1942 (SAKA)

## Loan of Industries to Financial Institutions

†4727. SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

Will the Minister of FINANCE be pleased to state:

- (a) the sector-wise details of the loan of industries to Financial Institutions;
- (b) whether the Government is making any special effort to provide assistance to industries from the loan;
- (c) if so, the details thereof; and
- (d) the details of the exclusive efforts being made by the Government for the industries related to textile industry in Bundelkhand?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

(a): Details of outstanding amount of loans to industries by scheduled commercial banks (SCBs) are at Annex. RBI has informed that it does not maintain data for other financial institutions.

(b) and (c): A number of steps have been taken to increase credit flow to industries, including, inter-alia , the following-

- (i) Banks have been permitted to lend to Infrastructure Investment Trusts (InvITs), subject to certain safeguards.
- (ii) Standby credit facility has been introduced in respect of project finance, to fund cost overruns, up to a maximum of 10% of the original project cost that may arise on account of delay in completion.

(iii) Debts due to the lenders in case of public-private partnership projects are allowed to be considered as secured to the extent assured by the project authority.

- (iv) Equity support has been provided to India Infrastructure Finance Company Ltd, enabling it to finance big-ticket infrastructure projects.
- (v) Capital has been infused in Exim Bank Limited to enable it to support export and import finance.
- (vi) For large-scale projects, relaxation has been given for retaining standard asset classification, where the date of commencement of commercial operations is extended beyond the original date.
- (vii) Banks have been allowed to issue long-term bonds for financing infrastructure and affordable housing loans.
- (viii) Trade Receivables Discounting System (TReDS) has been introduced for Micro, Small and Medium Enterprises (MSMEs) to address cash flow problems due to delayed payments.
- (ix) Banks are allowed to deduct the equivalent amount of incremental credit disbursed to automobiles, residential housing, and MSMEs, from their net demand and time liabilities for maintenance of the cash reserve ratio.
- (x) SCBs have been allowed to engage with Non-deposit-taking Systemically Important Non-Banking Financial Companies (NBFCs) to co-originate priority sector loans.
- (xi) Partial Credit Guarantee Scheme has been launched for providing guarantee to Public Sector Banks (PSBs) for purchasing pooled assets rated BBB+ or higher from NBFCs and housing finance companies.

(xii) PSBs have offered up to 25% enhancement in the existing working capital limits in standard MSME accounts as a standby line of credit.

(xiii) Single-borrower exposure limit for NBFCs has been increased from 15% to 20% of tier-I capital of the bank.

(d) Government has taken many initiatives for the development of the textiles sector throughout the country, including in Bundelkhand, including, inter alia , through the Scheme for Integrated Textile Park, skill development under Samarth scheme, Integrated Processing Development Scheme for the textile processing industry, the Amended Technology Upgradation Fund Scheme for credit-linked capital investment subsidy, block-level clusters under the National Handloom Development Programme, and Comprehensive Handloom Cluster Development Scheme for training for upgrading in weaving, dyeing and designing.

## Lok Sabha Unstarred Question No. 4727 for answer on 23.3.2020, regarding 'Loan of Industries to Financial Institutions'

## Outstanding amount of loans to industries by scheduled commercial banks

In crore Rs.

| Industry Name                                                          | Amount Outstanding - Funded, as on   | Amount Outstanding - Funded, as on   |
|------------------------------------------------------------------------|--------------------------------------|--------------------------------------|
|                                                                        | Mar 31, 2019                         | Dec 31, 2019                         |
| A. Mining and Quarrying                                                | 46,862                               | 41,967                               |
| B. Food Processing                                                     | 1,75,697                             | 1,79,214                             |
| C. Beverages (excluding Tea & Coffee) and Tobacco                      | 18,725                               | 18,919                               |
| D. Textiles                                                            | 2,14,899                             | 2,04,779                             |
| E. Leather and Leather products                                        | 11,622                               | 11,309                               |
| F. Wood and Wood Products                                              | 12,832                               | 13,062                               |
| G. Paper and Paper Products                                            | 32,943                               | 35,272                               |
| H. Petroleum (non-infra), Coal Products (non-mining) and Nuclear Fuels | 72,490                               | 61,844                               |
| I. Chemicals and Chemical Products (Dyes, Paints, etc.)                | 2,27,127                             | 2,07,202                             |
| J. Rubber, Plastic and their Products                                  | 51,927                               | 55,069                               |
| K. Glass & Glassware                                                   | 10,240                               | 7,950                                |
| L. Cement and Cement Products                                          | 59,645                               | 62,799                               |
| M. Basic Metal and Metal Products                                      | 3,81,089                             | 3,52,040                             |
| N. All Engineering                                                     | 1,87,268                             | 1,84,318                             |
| O. Vehicles, Vehicle Parts and Transport Equipments                    | 99,482                               | 1,01,109                             |
| P. Gems and Jewellery                                                  | 87,057                               | 81,034                               |
| Q. Construction                                                        | 1,23,294                             | 1,24,924                             |
| R. Infrastructure                                                      | 12,03,535                            | 11,50,196                            |
| S. Other Industries                                                    | 2,76,903                             | 3,07,165                             |