Lok Sabha Question No. 1892 (UNSTARRED), answered on 2021-12-09
Subject: Financial Assistance to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Dileshwar Kamait, Riti Pathak

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

## LOK SABHA UNSTARRED QUESTION NO. 1892 TO BE ANSWERED ON 09.12.2021

## FINANCIAL ASSISTANCE TO MSMEs

†1892.    SHRI DILESHWAR KAMAIT: SHRIMATI RITI PATHAK:

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

- (a) the action taken by the National Small Industries Corporation which is a public sector undertaking  under  the  Ministry  and  provides  financial  assistance  to  Micro,  Small  and Medium  Enterprises  (MSMEs)  to  provide  financial  assistance  to  suppliers  against  bank guarantee  for  payment  under  its  Raw  Material  Assistance  Scheme  for  Micro,  Small  and Medium Enterprises;
- (b) the details of assistance provided to entrepreneurs of Bihar and Madhya Pradesh; and
- (c) whether the Government proposes to help micro, small and medium manufacturing enterprises  by  offering  them  concessional  rates  for  investment  in  machinary  and  if  so,  the details thereof?

## ANSWER

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

- (a):            The  National  Small  Industries  Corporation  Limited  (NSIC),  a  Public  Sector Undertaking under this Ministry, facilitates Micro, Small and Medium Enterprises (MSMEs) to meet their raw material requirement by making arrangements with bulk manufacturers for procuring  the  materials  and  supplying  the  same  to  MSMEs.  NSIC  also  provides  financial assistance  to  MSMEs  under  their  Raw  Material  Assistance  (RMA)  Scheme  against  bank guarantee for payment to the suppliers. The details of the assistance provided to MSMEs by NSIC under Raw Material Assistance Scheme in last two years and current year are as under:

| Financial year           |   No. of units supported |   Credit support provided (Rs.in lakh) |
|--------------------------|--------------------------|----------------------------------------|
| 2019-20                  |                     2842 |                                 524496 |
| 2020-21                  |                     2699 |                                 439844 |
| 2021-22 (upto 26.11.2021 |                     2445 |                                 308303 |

- (b):       The details of assistance provided to MSMEs under Raw Material Assistance Scheme of NSIC in Bihar and Madhya Pradesh during last two years and current year (upto 02.12.2021) are as under:

| Financial Year            | Bihar       | Bihar                       | Madhya Pradesh   | Madhya Pradesh              |
|---------------------------|-------------|-----------------------------|------------------|-----------------------------|
|                           | No. of Unit | Credit support (Rs.in lakh) | No. of Unit      | Credit support (Rs.in lakh) |
| 2019-20                   | 21          | 2058.17                     | 82               | 15351.49                    |
| 2020-21                   | 20          | 2344.72                     | 67               | 9791.60                     |
| 2021-22 (upto 02.12.2021) | 19          | 1067.90                     | 72               | 6099.27                     |

(c): The Ministry of MSME implements various schemes and programmes for promotion and development of MSME Sector. These schemes and 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  & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  (CGTMSE),  Micro  and  Small Enterprises  Cluster  Development  Programme  (MSE-CDP),  Special  Credit  Linked  Capital Subsidy Scheme (SCLCSS).  Further, till date, subsidy of Rs. 88.24 Cr has been provided to 849 SC-ST entrepreneurs under Special Credit Linked Capital Subsidy Scheme.

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