Lok Sabha Question No. 473 (UNSTARRED), answered on 2021-07-22
Subject: Development of MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sambhajirao Mane Dhairyasheel, Heena Vijaykumar Gavit, Shrikant Eknath Shinde, Sujay Radhakrishna Vikhepatil, Unmesh Bhaiyyasaheb Patil

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

## LOK SABHA UNSTARRED QUESTION No. 473 TO BE ANSWERED ON 22.07.2021

## Development of MSME Sector

473.    SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

DR. HEENA GAVIT:

DR. SHRIKANT EKNATH SHINDE:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

SHRI UNMESH BHAIYYASAHEB PATIL:

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

- (a) whether  the  Government  has  given  special  attention  for  the  development  of  the  Micro, Small and Medium Enterprises (MSMEs) sector and if so, the details thereof;
- (b) the details of the exemptions and SOPs being given to MSMEs for speedy development;
- (c) whether the measures initiated by the Government in strengthening the MSME sector have gradually started yielding positive results in the development of MSMEs in the country, which are the backbone of the country's economy and if so, the details thereof; and
- (d) the details of the objectives and the achievements made so far by the MSME sector?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

- (a): Yes Sir, The Government has given special attention for development of the Micro Small and  Medium  Enterprises  (MSMEs)  sector  .  The  definition  of  MSME  is  revised  based  on  the Composite  Criteria  of  Investment  in  Plant  &  Machinery/equipment  and  Annual  Turnover.  The Government has also included Retail and wholesale trades as MSMEs and they are allowed to be registered  on  Udyam  Registration  Portal.  Validity  of  Udyog  Adhar  Memorandum  (UAM)  is extended  up  to  31.12.2021.    For  ease  of  doing  business  new  registration  of  MSMEs  on  portal Udyam Registration is going on.
- (b): For speedy development of MSMEs following exemptions and SOPs are  being provided:
- (i) Public  Procurement  Policy  benefits/facilities  are  provided  to  all  registered  MSEs. Benefits/facilities such as Tender set free of cost; Exemption from the payment of Earnest  Money;  In  tender,  participating  MSEs  quoting  price  within  price  band  of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than a MSE and such MSE shall be allowed to supply at least 25% of the total tendered value;  358  items   are  reserved  for  exclusive  procurement  from  MSEs;   The  MSEs and Start-ups may also be given exemption in prior experience and turnover clauses.

- (ii)  Public  Procurement  Policy  for  Micro  and  Small  Enterprises   (MSEs)  mandates  25% annual  procurement  from  MSEs  by  Central    Ministries  /Departments/Central  Public Sector Enterprises (CPSEs) including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs.
- (iii)  An  MOU  has  been  signed  with  GeM  for  mobilizing  maximum  number  of  MSEs  on GeM platform.
- (iv)  launch  of  'MSME  Sambandh  Portal' to  monitor  the  progress  of  procurement  by  the CPSEs from MSEs etc.
- (v)    To  resolve  the  grievances/  issues  of    Delayed  payment      SAMADHAN  Portal mechanism is initiated where MSEs can also check status of online applications.

(c): The  Ministry  of  MSME  implements  various  schemes  and  programmes  for  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),  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  Up gradation Scheme (CLCS-TUS).

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.

(d): The strengthening of the MSMEs sector is the focus of the Government which is ongoing. The details of achievements under various schemes (during the last three years) which have been initiated by the Government is given at Annexure-I:

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## Annexure-I referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 473 for answer on 22.07.2021

Table-1 Prime Minister Employment Generation Programme (PMEGP)

| Year      |   Margin Money subsidy disbursed (Rs crore) |   Number of units assisted |   Estimated employment generated (in Lakh) |
|-----------|---------------------------------------------|----------------------------|--------------------------------------------|
| 2019-20   |                                     1950.82 |                      66653 |                                       5.33 |
| 2020-21   |                                     2188.8  |                      74415 |                                       5.95 |
| 2021- 22* |                                      453.77 |                      14820 |                                      11.85 |

Table-2 Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)

| Financial Year   |   No. of Credit Facilities Approved |   Amount of Guarantees Approved (Rs in crore) |
|------------------|-------------------------------------|-----------------------------------------------|
| 2019-20          |                              846650 |                                       45851.2 |
| 2020-21          |                              836065 |                                       36954.7 |
| 2021-22*         |                              244300 |                                       13316   |

Till June-2021

Table-3 Interest Subvention Scheme for Incremental Credit to MSMEs 2018 -

| Financial Year   |   No. of Units |   Subsidy (Rs. in crore) |
|------------------|----------------|--------------------------|
| 2019-20          |        1362355 |                   541.51 |
| 2020-21*         |         908860 |                   431.07 |

Table-4 Micro and Small Enterprises- Cluster Development Programme (MSE-CDP)

| Year    | Projects completed            | Projects completed                      | Projects completed   |
|---------|-------------------------------|-----------------------------------------|----------------------|
|         | Common Facility Centres (CFC) | Infrastructure Development Centres (ID) | Total                |
| 2017-18 | 13                            | 11                                      | 24                   |
| 2018-19 | 17                            | 11                                      | 28                   |
| 2019-20 | 11                            | 11                                      | 22                   |
| 2020-21 | 8                             | 12                                      | 20                   |
| 2021-22 | 1                             | 1                                       | 02                   |
| Total   | 50                            | 46                                      | 96                   |

Table -5  Status of MSEs on Gem Portal

| Fiscal Year   | MSE Sellers &Service Providers   | Order values in INR   | Order Volume   |
|---------------|----------------------------------|-----------------------|----------------|
| FY 20-21      | 5,80,843                         | 2,26,34,82,23,899     | 11,00,266      |
| FY 21-22      | 15,891                           | 1,04,14,57,97,924     | 2,71,317       |

Table -6 Status of Application/Cases on SAMADHAN Portal

|                 | TOTAL   | RESOLVED                                    |   REJECTED |   PENDING |
|-----------------|---------|---------------------------------------------|------------|-----------|
| As on 15.7.2021 | 82,069  | 15174 (Disposed by MSEFC +Mutually settled) |      15230 |     51665 |