Lok Sabha Question No. 1965 (UNSTARRED), answered on 2020-09-22
Subject: Wage Subsidy to MSMEs due to Covid-19 Pandemic
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rahul Gandhi

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 1965.

TO BE ANSWERED ON 22.09.2020

## WAGE SUBSIDY TO MSMES DUE TO COVID-19 PANDEMIC

1965.  SHRI RAHUL GANDHI:

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

- (a) whether  the  Government  has  assessed  the  impact  of  Covid-19  pandemic  in MSME sector and if so, the details thereof particularly impact on production, capacity utilization and change in demand, if any;
- (b) whether  the  National  Small  Industries  Corporation  has  received  grievances from the MSME sector and if so, the details thereof particularly common grievances raised by the MSME sector;
- (c) whether  the  Ministry  has  received  representations  from  the  MSME  sector requesting for wage subsidy to retain workers during the Covid-19 pandemic and if so, the details thereof; and
- (d) whether the Government seeks to provide wage support or any other subsidy to MSMEs, especially micro enterprises to prevent lay-offs and wage cuts in light of the severe contraction in GDP and if so, the details thereof?

## ANSWER

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

- (a): Various sectors including MSME Sector has been affected temporarily by nation-wide lockdown/Covid-19 pandemic in the country.
- (b): Yes, Sir. Soon after Covid-19 Lockdown, NSIC constituted a Covid Cell to assimilate suggestions/queries on its schemes and to respond to them in time. The suggestions/queries received by NSIC from MSME sector pertained to Single Point Registration  Scheme  (SPRS)  /Business  to  Business  (B2B)  portal  and  Raw  Material Assistance Scheme which were responded to promptly.

(c)&(d): For addressing the grievances of MSMEs especially during COVID-19 Pandemic,  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.

Further, the Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector in the country including Tamil Nadu. 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),  Interest  Subvention  Scheme  for  Incremental  Credit  to  MSMEs,  Credit Guarantee  Scheme  for  Micro  and  Small  Enterprises,  Micro  and  Small  Enterprises Cluster  Development  Programme  (MSE-CDP),  Credit  Linked  Capital  Subsidy    and Technology Upgradation Scheme (CLCS-TUS).

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.
7. RBI  has  also  announced  several  measures  to  Reduce  Financial  Stress  of MSMEs.

Government of India under Atmanirbhar Bharat package has already announced measures such as 'Extending the Employees Provident Fund Support for business and organised  workers  for  salary  months  of  June,  July  and  August  2020  and  EPF contribution  has  been  reduced  for  Employers  and  Employees  for  3  months  to  10% from 12% for all establishment covered by EPFO for 3 months.

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