Lok Sabha Question No. 233 (STARRED), answered on 2022-12-22
Subject: Financial Assistance for Revival of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: K. Shanmuga Sundaram, D. M. Kathir Anand

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

## LOK SABHA STARRED QUESTION NO. *233 TO BE ANSWERED ON: 22.12.2022

## FINANCIAL ASSISTANCE FOR REVIVAL OF MSMES

No. *233 SHRI SHANMUGA SUNDARAM K.: SHRI D.M. KATHIR ANAND:

Will the Minister of Micro, Small and Medium Enterprises be pleased to state:

- (a) whether the Government is aware of the fact that millions of people employed in Micro, Small and Medium  Enterprises  (MSMEs)  in  the  country  have  lost  their  jobs  due  to  various  reasons  like demonetisation, cash crunch, import-export crisis and escalating price rise of raw materials during the Covid pandemic;
- (b) if so, the details thereof and the steps taken by the Government to restore the jobs of people rendered jobless and improve the status of MSMEs;
- (c) whether  the  Government  has  provided  any  financial  assistance  for  the  revival  of  MSMEs  in  the country, particularly in Tamil Nadu and Pollachi constituency and if so, the details thereof; and
- (d)  the  measures  taken  or  proposed  to  be  taken  by  the  Government  to  protect  the  interests  of  both employer and employees of MSME sector?

## ANSWER

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

(a) to (d): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO. *233 FOR ANSWER ON 22.12.2022.

(a) to (c):   The Government has taken a number of recent initiatives vide programmes, schemes and declarations  for  Micro,  Small  and  Medium  Enterprises  (MSMEs)  in  the  country,  including  Tamil Nadu. Some of these include:

- i. Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for business, including MSMEs.
- ii. Rs. 50,000 crore equity infusion through Self-Reliant India Fund.
- iii. New revised criteria for classification of MSMEs.
- iv. No global tenders for procurement up to Rs. 200 crores.
- v. 'Udyam Registration' for MSMEs, for Ease of Doing Business
- vi. Launching  of  an  online  Portal  'Champions'  in  June,  2020  to  cover  many  aspects  of  egovernance including redressing grievances and handholding of MSMEs.
- vii. Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 02.07.2021.
- viii. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.

Additionally, MSMEs have also been supported by the ongoing financial assistance schemes of this Ministry i.e.

- (i)    Prime  Minister's  Employment  Generation  Programme  (PMEGP)  which  is  a  major  credit-linked subsidy programme aimed at generating self-employment; and
- (ii)  Credit  Guarantee  Scheme  (CGS)  to  strengthen  credit  delivery  system  and  to  facilitate  the  flow  of credit  to  the  Micro  and  Small  Enterprise  sector  without  the  hassles  of  collateral  and  third  party guarantee.

For the  above  schemes,  constituency  wise  data  are  not  maintained,  however,  as  per  the  data furnished by National Credit Guarantee Trustee Company Ltd. (NCGTC), which is the implementing agency of ECLGS, as on 30.11.2022 since its inception, a total number of 8,72,849  guarantees have been issued with loan amount guaranteed for Rs.26,497.14 crore in the State of Tamil Nadu. At the country  level  for  the  same  period,  number  of  1,13,47,107  guarantees  have  been  issued  with  loan amount guaranteed for Rs.2,37,702.81 crore to MSMEs.

As per the data furnished by Khadi and Village Industries Commission (KVIC) under PMEGP, as on 30.11.2022 since 2020-21, a total 14,336 micro units have been assisted with Rs.396.02 crore margin  money  disbursed  in  the  state  of  Tamil  Nadu.  At  the  country  level  for  the  same  period 2,19,403 micro units have been assisted with Rs.6,507.36 crore margin money disbursed.

As  per  the  data  furnished  by  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises (CGTMSE) under CGS as on 30.11.2022, since 2020-21, a total number 1,42,196  of guarantees have been issued amounting Rs.11,519 crore in the state of Tamil Nadu. Similarly, for the same period, at the country level number 22,60,449  of guarantees have been issued amounting Rs.1,53,448 crore.

- (d):      In  the  Union  Budget  2022  the  Government  has  announced  the  integration  of  Ministry  of MSME's  Udyam  portal  with  Ministry  of  Labour  &  Employment's  e-Shram  and  National  Career Service  (NCS)  portals  and  Ministry  of  Skill  Development  &  Entrepreneurship's  Aatmanirbhar Skilled Employee Employer Mapping (ASEEM) portals.

Further, as  informed  by Directorate  General  of  employment,  Ministry  of  Labour  & Employment, Aatmanirbhar Bharat Rojgar Yojana (ABRY) has been launched in October, 2020 as part of Aatmanirbhar Bharat package 3.0 to incentivize employers for creation of new employment along with social security benefits and restoration of loss of employment during Covid-19 pandemic. The scheme being implemented through the Employees Provident Fund Organisation (EPFO), seeks to reduce the financial burden of the employers including MSME sector and encourages them to hire more workers.

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