Lok Sabha Question No. 393 (UNSTARRED), answered on 2022-02-03
Subject: Registered/Closed MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Behanan Benny, Balubhau (Alias Suresh Narayan) Dhanorkar, A. Chellakumar

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

## LOK SABHA UNSTARRED QUESTION NO. 393 TO BE ANSWERED ON 03.02.2022

## REGISTERED/CLOSED MSMEs

393.                 SHRI BENNY BEHANAN: SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR: DR. A. CHELLAKUMAR:

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

- (a) whether the Government  has framed an enhanced financial incentivisation policy to boost the MSME sector;

(b) if so, the details thereof and if not, the reasons therefor;

- (c) the number of MSMEs registered and the number of those shut down during the last five years, year-wise;
- (d) the  number  of  MSMEs  currently  functioning,  and  the  number  of  those  currently  lying closed, State/UT-wise;
- (e) whether the Government  proposes to provide  employment, subsidies and financial compensation to persons affected by the closure of MSMEs due to the COVID-19 pandemic;
- (f) if so, the details thereof and if not, the reasons therefor;
- (g) the number of applications filed on the MSME Samadhaan platform, viewed by Officials and pending consideration, annually from inception till date; and
- (h) whether it is a fact that fifty seven per cent of applications on MSME Samadhaan portal are currently pending and if so, the reasons for such a large number of pendencies?

## ANSWER

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

(a) & (b): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  implements different  schemes  and  programmes  aimed  at  promotion  and  development  of  Micro,  Small  and Medium Enterprises (MSMEs). These schemes / programmes, inter alia, include financial support. Some  of these schemes / 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  and  Entrepreneurship  (ASPIRE),  Micro  and Small Enterprises - Cluster Development Programme (MSE-CDP), etc.

- (c) & (d): For registration for MSMEs, the Government of India replaced the erstwhile system of Udyog Aadhaar Memorandum (UAM) with Udyam Registration (UR) on 1 st July, 2020.  As per the  data  available  on  Udyam  registration  portal,  a  total  number  of  28,63,571  MSMEs  were registered during FY 2020-21 ( 1 st July,  2020  to  31 st March, 2021) and 40,00,139 MSMEs were registered during  FY 2021-22 till 01.02.2022.  As MSMEs function in both formal and informal sectors, data regarding temporary and permanent closure of MSMEs are not centrally maintained.
- (e) & (f): The  Government  of  India  announced  a  series  of  measures  under  Aatma  Nirbhar Bharat to support the economy, especially the MSME sector. This inter-alia includes (i) Rs. 20,000 crore Subordinate Debt for stressed MSMEs; (ii) Rs. 50,000 crore equity infusion through MSME Fund of Funds (SRI Fund); (iii) 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for Businesses, including MSMEs ( which has subsequently been increased to 4.5 lakh crore); (iv) New Definition of MSME (v) No Global tenders for Government procurements upto Rs. 200 crore; (vi) Aatma Nirbhar Bharat Rozgar Yojana to incentivize job creation during CoVID-19 recovery, etc.
- (g) & (h): Micro  and  Small  Enterprises  (MSEs)  can  file  applications  in  Micro  and  Small Enterprise Facilitation Councils (MSEFCs) for delayed payments. After the application is admitted by the MSEFCs, it becomes a case. As per the information available on SAMADHAAN portal, as on 31.01.2022, 28.41% of the total applications filed in the portal since inception are pending.  The details of the application filed on SAMADHAAN Portal since inception, are given below:-

| Period                   | Period                   | Applicatio ns filed by MSEs   | Applications ready for Consideration by MSEFCs (applications not converted into cases)   | Applications Converted into Cases by MSEFCs Under various stages of hearing   |
|--------------------------|--------------------------|-------------------------------|------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| From                     | To                       |                               |                                                                                          |                                                                               |
| 30/10/2017 31/03/2018    | 4,489                    |                               | 179                                                                                      | 927                                                                           |
| 31/03/2019               | 10,145                   |                               | 720                                                                                      | 01/04/2018 2,562                                                              |
| 31/03/2020               | 24,519                   |                               | 3,665                                                                                    | 01/04/2019 6,391                                                              |
| 31/03/2021               | 34,527                   |                               | 9,674                                                                                    | 01/04/2020 10,632                                                             |
| 01/04/2021               |                          | 28,253                        | 14,728                                                                                   | 31/01/2022 6,878                                                              |
| Total                    | Total                    | 1,01,933                      | 28,966                                                                                   | 27,390                                                                        |
| Source- Samadhaan Portal | Source- Samadhaan Portal | Source- Samadhaan Portal      | Source- Samadhaan Portal                                                                 | Source- Samadhaan Portal                                                      |

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