Lok Sabha Question No. 314 (STARRED), answered on 2023-03-22
Subject: Closure of Industries
Ministry: COMMERCE AND INDUSTRY
Asked by: Pashupati Nath Singh

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

## LOK SABHA

STARRED QUESTION NO. 314. TO BE ANSWERED ON WEDNESDAY, THE 22 nd  MARCH, 2023.

## CLOSURE OF INDUSTRIES

## *314.  SHRI PASHUPATI NATH SINGH:

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; and
- (d) the corrective measures taken/being taken by the Government in this regard?

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

(a) to (d): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 314 FOR ANSWER ON 22 ND  MARCH, 2023.

- (a) to (d): 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 due to several factors such as innovation, upgradation of technology, changes in production line, changes in demand pattern, etc in response to the prevailing socio-economic scenario.

Government  has  undertaken  various  steps  to  boost  industrial  performance. These include introduction of Goods and Services Tax, reduction in Corporate tax, interventions to improve ease of doing business, measures for reduction in compliance burden, policy measures to boost domestic manufacturing through public  procurement  orders,  Phased  Manufacturing  Programme  (PMP),  FDI policy reforms.

The series of measures taken by the Government to improve the economic situation and convert the disruption caused by COVID 19 into an opportunity for growth  includes  Atmanirbhar  packages,  introduction  of  Production  Linked Incentive (PLI) Scheme across fourteen sectors to augment the manufacturing capacity, investment opportunities under National Infrastructure Pipeline (NIP) and  National  Monetisation  Pipeline  (NMP),  soft  launch  of  National  Single Window  System  (NSWS),  etc.  An  institutional  mechanism  to  fast-  track investments has been put in place, in the form of Project Development Cells (PDCs) in all concerned Ministries/ Departments of Government of India.

The Emergency Credit Line Guarantee Scheme (ECLGS), with provision of Rs 3 lakh crore which has now increased to Rs. 5 lakh crore, is in the form of a fully guaranteed  emergency  credit  line  to  monitor  lending  institutions.  Financial support has been given to the stressed MSMEs with infusion of Rs.20,000 crore equity  support  through  Subordinate  Debt.  Fund  of  Funds  created  to  infuse equity worth Rs.50,000  crore  in  the  MSME  Sector  by  setting  up Rs.10,000 crore Corpus Fund.

Also, Government is ensuring timely payment of dues to the MSMEs and CPSEs. Procurement  from  domestic  companies  is  being  encouraged  by  disallowing global  tender  in  government  procurement  tenders  upto  Rs  200  crores.  In additional initiatives like Self-Reliant India Fund, Private Equity/Venture Capital funds,  New  revised  criteria  for  classification  of  MSMEs,  New  Registration  of MSMEs through 'Udyam Registration' for Ease of Doing Business, launching of an online portal 'Champions', launch of Udyam Assist Platform (UAP) are to support different sectors of MSMEs across the country. In Union Budget 202324, an amount of Rs 9000 crore is being  infused in the corpus of revamped Credit Guarantee  Scheme  for  MSEs  which  will  be  effective  from  1st  April, 2023. This        would enable additional collateral-free guaranteed credit of Rs 2 lakh crore.

Further, PM  Gati ShaktiNMP  &  Logistics Policy facilitate scientific development of infrastructure and last mile connectivity to reduce the logistic cost and increase the efficiency of economy. Capital  investment  outlay  in  the Budget  has  increased  almost  3  times  from  Rs.3.39 lakh crore in 2019-20 to Rs. 10 lakh crore in 2023-24.

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