Lok Sabha Question No. 3510 (UNSTARRED), answered on 2022-03-24
Subject: Financial Relief Package to MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Shashi Tharoor

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3510

TO BE ANSWERED ON 24.03.2022

## FINANCIAL RELIEF PACKAGE TO MSME SECTOR

## 3510.          DR. SHASHI THAROOR:

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

- (a) whether the Government has maintained a record of spending on MSME sector from the Prime Minister's twenty trillion rupees relief package announced in 2020;
- (b) if so, the details thereof, State-wise and if not, the reasons therefor;
- (c) whether small and medium-sized NBFCs and MFIs have benefitted from the TLTRO of Rs 50,000 crore announced by the RBI in 2020;
- (d) if so, the details thereof, State-wise and if not,  the reasons therefor;
- (e) whether initiatives have been taken by the Government to reduce dependence on Chinese imports  and  attract  global  investment  in  India,  if  so,  the  details  thereof  and  if  not,  the  reasons therefor; and
- (f) whether the Government has taken into account the Standing  Committee's assessment of the  stimulus  package  offered  for  economic  revival  as  'inadequate'  and  considered  providing  a 'larger economic package' to improve cash flow instead of a loan offering through the ECGLS scheme and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a) & (b): As  on  18 th March  2022,  1.18  crore  MSMEs  have  been  provided  with  100% guaranteed  collateral  free  loans  amounting  to  Rs.  3.23  lakh  crore  under  the  Guaranteed Emergency Credit Line (GECL)/ Emergency Credit Line Guarantee Scheme (ECLGS). As on 14 th March 2022, 765 guarantees amounting to Rs. 84.40 crore have been approved under the Credit Guarantee Scheme of Subordinate Debt (CGSSD) for Stressed MSMEs. The State-wise details of GECL and CGSSD are at Annexure I and II respectively.
- (c) & (d): As informed by the Reserve Bank of India the first auction under TLTRO 2.0 was conducted on April 23, 2020 for ₹ 25,000 crore and the banks availed an amount ₹ 12,850 crore.
- (e): The Government of India has made sustained efforts to achieve a more balanced trade with China,  including  bilateral  engagements  to  address  the  non-tariff  barriers  on  Indian  exports  to China.  The  Government  has  also  taken  measures  in  form  of  trade  remedies  (Anti-dumping, countervailing duty etc.) against unfair trade practices and formulated technical regulations and issued quality control orders to check substandard imports. Efforts have also been made to source critical supplies from alternate sources and sensitize the ministries/departments concerned to ramp up domestic capacities.

The Government reviews the FDI policy on  an ongoing basis  and makes changes  from time to time, to ensure that India remains an attractive & investor friendly destination. The intent is  to  remove  policy  bottlenecks  that  may  be  hindering  investment  inflows  into  the  country. Changes are made in the policy after having intensive consultations with stakeholders including apex industry chambers, Associations, representatives of industries/groups and other organizations taking into consideration their views/comments.

(f): For scaling  up  of  MSMEs,  the  Government  has  announced  the  Self  Reliant  India  Fund with an objective to channelize funds to MSMEs as growth capital, in the form of equity or quasiequity  for  growth  of  MSMEs.  As  informed  by  RBI,  some  of  the  measures  taken  by  the Government for improving flow of Credit to MSME sector are as under:

- i. Scheduled Commercial Banks have been mandated not to accept collateral security in the case of loans up to ₹10 lakh extended to units in the MSE sector.
- ii. Computation of working capital requirements of MSE units to be done by banks on the basis  of  simplified  method  of  minimum  20%  of  the  projected  annual  turnover  of  the unit for borrowal limits up to ₹5 crore.
- iii. In order to solve the problem of delayed payment to MSMEs, RBI has issued guidelines for setting up and operating the Trade Receivables Discounting System (TReDS).
- iv. Differential Rate of Interest for Micro and Small Enterprises.
- v. With a view to improve monetary policy transmission, banks have been advised to link loans to Micro and Small Enterprises to an external benchmark from October 01, 2019.

*****

ANNEXURE-I Annexure referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No.3510 for answer on 24.03.2022

| ECLGS STATE WISE DATA AS ON 18-03-2022   | ECLGS STATE WISE DATA AS ON 18-03-2022   | ECLGS STATE WISE DATA AS ON 18-03-2022   |
|------------------------------------------|------------------------------------------|------------------------------------------|
| STATE NAME                               | No of Guarantees Issued                  | Loan Amount Guaranteed (Rs. In Cr)       |
| ANDAMAN &NICOBAR                         | 2,094                                    | 133.59                                   |
| ANDHRA PRADESH                           | 2,89,579                                 | 11,747.77                                |
| ARUNACHAL PRADESH                        | 2,368                                    | 93.23                                    |
| ASSAM                                    | 5,52,247                                 | 3,437.2                                  |
| BIHAR                                    | 8,27,480                                 | 4,879.41                                 |
| CHANDIGARH                               | 7,153                                    | 1,182.95                                 |
| CHHATTISGARH                             | 2,00,351                                 | 5,619.53                                 |
| DADRA &NAGAR HAVELI                      | 2,285                                    | 411.5                                    |
| DAMAN &DIU                               | 1,030                                    | 193.71                                   |
| DELHI                                    | 1,05,205                                 | 21,064.02                                |
| GOA                                      | 12,776                                   | 1,309.8                                  |
| GUJARAT                                  | 3,72,809                                 | 30,178.41                                |
| HARYANA                                  | 2,04,832                                 | 15,061.79                                |
| HIMACHAL PRADESH                         | 50,799                                   | 2,244.73                                 |
| JAMMU &KASHMIR                           | 68,265                                   | 2,366.17                                 |
| JHARKHAND                                | 2,99,621                                 | 3,750.7                                  |
| KARNATAKA                                | 8,79,752                                 | 21,723.19                                |
| KERALA                                   | 5,38,484                                 | 10,827.28                                |
| LADAKH                                   | 1,032                                    | 53.61                                    |
| LAKSHA DEEP                              | 371                                      | 2.1                                      |
| MADHYA PRADESH                           | 5,69,879                                 | 10,318.97                                |
| MAHARASHTRA                              | 10,15,379                                | 52,423.15                                |
| MANIPUR                                  | 10,548                                   | 132.15                                   |
| MEGHALAYA                                | 11,486                                   | 223.8S                                   |
| MIZORAM                                  | 3,855                                    | 63.23                                    |
| NAGALAND                                 | 7,550                                    | 75.99                                    |
| ORISSA                                   | 9,37,994                                 | 6,074.01                                 |
| PONDICHERRY                              | 22,683                                   | 5S4.5S                                   |
| PUNJAB                                   | 2,16,420                                 | 10,370.46                                |
| RAJASTHAN                                | 5,53,160                                 | 16,527.5                                 |
| SIKKIM                                   | 8,342                                    | 126.4                                    |
| TAMILNADU                                | 8,92,736                                 | 34,998.92                                |
| TELANGANA                                | 1,46,096                                 | 13,754.57                                |
| TRIPURA                                  | 62,579                                   | 289.6                                    |
| UTTAR PRADESH                            | 8,18,630                                 | 19,934.3                                 |
| UTTARAKHAND                              | 74,241                                   | 30,42.06                                 |
| WESTBENGAL                               | 20,27,446                                | 18,375.14                                |
| Total                                    | 1,17,97,557                              | 3,23,565.54                              |

Sources: Department of Financial Services (DFS), Ministry of Finance

## Annexure referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No.3510 for answer on 24.03.2022

| State wise Guarantee Coverage under CGSSD - cumulative as on March 14, 2022   | State wise Guarantee Coverage under CGSSD - cumulative as on March 14, 2022   | State wise Guarantee Coverage under CGSSD - cumulative as on March 14, 2022   | State wise Guarantee Coverage under CGSSD - cumulative as on March 14, 2022   |
|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| Sr. No.                                                                       | State Name                                                                    | No. of Guarantees Approved                                                    | Amount of Guarantees Approved (Rs. In lakhs)                                  |
| 1                                                                             | ANDAMAN& NICOBAR                                                              | 1                                                                             | 3.50                                                                          |
| 2                                                                             | ANDHRA PRADESH                                                                | 30                                                                            | 418.25                                                                        |
| 3                                                                             | ARUNACHAL PRADESH                                                             | 1                                                                             | 36.00                                                                         |
| 4                                                                             | ASSAM                                                                         | 9                                                                             | 125.15                                                                        |
| 5                                                                             | BIHAR                                                                         | 17                                                                            | 48.43                                                                         |
| 6                                                                             | CHANDIGARH                                                                    | 7                                                                             | 59.56                                                                         |
| 7                                                                             | CHHATTISGARH                                                                  | 11                                                                            | 54.40                                                                         |
| 8                                                                             | DAMAN &DIU                                                                    | 2                                                                             | 14.00                                                                         |
| 9                                                                             | DELHI                                                                         | 21                                                                            | 339.91                                                                        |
| 10                                                                            | GUJARAT                                                                       | 24                                                                            | 241.54                                                                        |
| 11                                                                            | HARYANA                                                                       | 6                                                                             | 93.83                                                                         |
| 12                                                                            | HIMACHAL PRADESH                                                              | 18                                                                            | 150.59                                                                        |
| 13                                                                            | JAMMU &KASHMIR                                                                | 26                                                                            | 142.46                                                                        |
| 14                                                                            | JHARKHAND                                                                     | 21                                                                            | 166.79                                                                        |
| 15                                                                            | KARNATAKA                                                                     | 50                                                                            | 979.83                                                                        |
| 16                                                                            | KERALA                                                                        | 28                                                                            | 429.04                                                                        |
| 17                                                                            | MADHYA PRADESH                                                                | 42                                                                            | 366.29                                                                        |
| 18                                                                            | MAHARASHTRA                                                                   | 80                                                                            | 1,070.19                                                                      |
| 19                                                                            | MIZORAM                                                                       | 2                                                                             | 1.27                                                                          |
| 20                                                                            | ORISSA                                                                        | 39                                                                            | 142.39                                                                        |
| 21                                                                            | PUNJAB                                                                        | 81                                                                            | 826.78                                                                        |
| 22                                                                            | RAJASTHAN                                                                     | 28                                                                            | 177.80                                                                        |
| 23                                                                            | TAMILNADU                                                                     | 89                                                                            | 1,154.88                                                                      |
| 24                                                                            | TELANGANA                                                                     | 33                                                                            | 450.32                                                                        |
| 25                                                                            | UTTAR PRADESH                                                                 | 61                                                                            | 591.53                                                                        |
| 26                                                                            | UTTARAKHAND                                                                   | 13                                                                            | 150.13                                                                        |
| 27                                                                            | WEST BENGAL                                                                   | 25                                                                            | 205.66                                                                        |
| Total                                                                         | Total                                                                         | 765                                                                           | 8,440.50                                                                      |

Sources: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)