Lok Sabha Question No. 2903 (UNSTARRED), answered on 2021-08-05
Subject: Assistance to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: S.R. Parthiban

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

## LOK SABHA UNSTARRED QUESTION No. 2903

## TO BE ANSWERED ON 05.08.2021

## Assistance to MSMEs

## 2903. SHRI PARTHIBAN S.R.:

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

- (a) the total number of Micro, Small and Medium Enterprises (MSMEs) operating in the country before the year 2020 along with the number of MSMEs currently operating in the country and the details of the number of MSMEs closed down/suffered because of Covid-19;
- (b) the  details  of  institutional  and  financial  assistance  provided  to  MSMEs  post  Covid-19 lockdown in March, 2020; and
- (c) the monetary value addition done by MSMEs in the country?

## ANSWER

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

- (a): As per Udyog Aadhaar Portal (since inception October 2015 to June 2020), the number of Micro, Small and Medium Enterprises (MSMEs) registered in All India was 102,32,468.

On  1st  July,  2020,  after  adoption  of  new  definition  of  MSMEs,  a  new  registration  portal 'Udyam Registration' has been launched by M/o MSME and so far 41,37,443 classified MSMEs are registered on the portal in All India (from 01.07.2020 to 31.07.2021).

As  MSMEs  are  present  in  both  formal  and  informal  sector,  data  regarding  temporary  or permanent closure/suffered of the units is not maintained by the Government of India in Ministry of Micro, Small and Medium Enterprises (MSME).

Studies have been conducted by National Small Industries Corporation (NSIC) and Khadi and Village  Industries  Commission  (KVIC)  to  assess  the  impact  of  COVID-19  Pandemic  on  MSMEs including units set up under Prime Minister's Employment Generation Programme (PMEGP).

- A. The  main  findings  of  the  online  study  conducted  by  NSIC  to  understand  the  operational capabilities  and  difficulties  faced  by  the  beneficiaries  of  NSIC  schemes  amid  Covid-19 pandemic are as follows:
- i. 91% MSMEs were found to be functional.
- ii. Five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Material (8% units.)
- B. The findings of the study conducted by KVIC are as under:
- i. 88% of the beneficiaries of PMEGP scheme reported that they were negatively affected due to Covid-19 while the remaining 12% stated that they were benefitted during Covid19 Pandemic.
- ii. Among the 88% who were affected, 57% stated that their units were shut down for some time during this period, while 30% reported drop in production and revenue.
- iii. Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sector and around 25% stated that their units benefitted as they were dealing with essential commodities or services.

- iv. On  the  question  of  regular  payment  of  salaries  to  the  employees,  around  46.60% respondents  stated  that  they  had  paid  the  salaries  in  full,  42.54%  reported  to  have partially  paid  and  10.86%  reported  to  have  not  paid  salary  for  some  time  during  this period.
- v. Majority  of  the  beneficiaries  expressed  the  need  for  additional  financial  support, relaxation of waiver of interest and marketing support for their products.
3. (b): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  implement  various  other schemes  for  the  growth  and  development  of  MSME  sector  in  the  country.  These  include  Prime Minister  Employment  generation  Programme  (PMEGP),  Micro  and  Small  Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Credit Linked  Capital Subsidy  and  Technology  Upgradation  Scheme  (CLCS-TUS)  and SC/ST Hub.

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 Dong Business.
6. vi) No global tenders for procurement up to Rs. 200 crores, this will help MSME.

All  new  and  existing  Micro  and  Small  Enterprises  engaged  in  manufacturing  or  services including  trading  activity  are  eligible  to  be  covered  under  Credit  Guarantee  Scheme  (CGS) implemented  by  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE). CGTMSE has approved 4,35,520 guarantees for an amount of Rs. 30,168.57 crore during 2018-19, 8,46,650 guarantees for an amount of Rs. 45,851.22 crore during 2019-20, 8,35,592 guarantees for an amount of Rs. 36,899.39 crore during 2020-21.

Under Interest Subvention Scheme for Incremental Credit to MSMEs, number of beneficiaries and amount are 13,62,355 and Rs. 541.51 crore during 2019-20 and 9,08,860and Rs. 431.07 crore during 2020-21 respectively.

As part of the Aatma Nirbhar Bharat Abhiyaan, under the Emergency Credit Line Guarantee Scheme (ECLGS), around 1.09 crore MSME borrowers have been provided with guarantee support amounting to Rs. 1.65  lakh crore  as on 02.07.2021.

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 35,361 grievances have been redressed upto 12.07.2021.

- (c): As per the information received from Central Statistics Office , Ministry of Statistics & PI, Share of MSMEs in Gross Value Added (GVA) to All India GVA at current prices (2011-12) for the years 2017-18, 2018-19 and 2019-20 was  32.7%, 33.5% and 33.1%  respectively.

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