Lok Sabha Question No. 1790 (UNSTARRED), answered on 2021-02-11
Subject: Loss to Wood Craft Industry
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Haji Fazlur Rehman

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1790 TO BE ANSWERED ON 11.02.2021

## LOSS TO WOOD CRAFT INDUSTRY

†1790. SHRI HAJI FAZLUR REHMAN:

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

- (a) whether  the  Government  has  taken  cognizance  of  the  heavy  loss  suffered  by  the  world famous wood craft industry of Saharanpur during the COVID-19 pandemic;
- (b) if so, the details thereof;
- (c) whether the Government proposes to issue any relief package for the wood craft industry of Saharanpur; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a)&(b): 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), across the country.

- 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 Covid-19 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.

(c)&(d): Government  has  announced  a  comprehensive  package  of  Rs.20  lakh  crore, including for MSMEs, under Atmanirbhar Bharat Abhiyan (ABA). Announcements pertaining to MSME which also covers 'Woodcraft industry', are as follows:

- i) Emergency Credit Line for MSMEs: Government has operationalized Rs. 3,00,000 crore collateral free loan scheme w.e.f. 23.05.2020 which is likely to benefit 45 lakh MSMEs. As on 25.01.2021, loans for an amount of Rs. 2.39 lakh crore have been sanctioned.
2. ii) Rs.  20,000  crore  as  Subordinate  Debt  for  Stressed  MSMEs:  As  on  31.12.2020,  249 guarantees have been approved amounting to Rs. 27.27 crore.
3. iii) Rs.  50,000  crore  Equity  infusion  for  MSMEs  through  Fund of  Funds (FoF):  CCEA  has approved a corpus of Rs. 10,000 crore for Fund of Funds scheme.   The detailed guidelines have been issued by the Ministry of MSME.
4. iv) Clearing of payment due to MSMEs: Government has announced that MSME dues should be cleared by the Government agencies and CPSEs within 45 days.  Since May 2020 and up to 11.01.2021, pending payments of Rs. 26,363.75 crore have been made to MSMEs out of the total dues of Rs. 33,323.92crore.
- v) In view of moratorium declared by Reserve Bank of India (RBI) on repayment of interest as well as principle components of loans, status of the accounts was not downgraded till 31.08.2020.
6. vi) RBI has provided the relief measures and the CRR of all the banks to be reduced by 100 basis points to 3% of net demand and time liabilities w.e.f March, 28, 2020, which would inject Rs. 1,37,000 crore across the banking system.
7. vii) No Global tenders are permitted for government procurement up to Rs. 200 crore.
8. viii) In addition, Ministry of MSME has taken initiatives to provide employment opportunities to people including migrant workers in 116 districts of 6 States under Garib Kalyan Rojgar Abhiyaan. Under PMEGP, Margin Money (subsidy) amounting to Rs. 216.45 crore has been disbursed for setting up 6218 units till 31.01.2021.

In  addition  to  the  above,  the  Office  of  the  DC-Handicrafts,  Ministry  of  Textiles, Government  of  India  has  conducted  following  activities  during  2020-21,  for  promoting  the woodcraft artisans in Saharanpur, UP:

1. Eight Seminar/workshops.
2. Two handicrafts Technical Training on wood carving.
3. One Integrated Design project and one Design Development Workshop.