Lok Sabha Question No. 561 (UNSTARRED), answered on 2021-02-04
Subject: Negative Growth in MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: P. Ravindhranath

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

## LOK SABHA UNSTARRED QUESTION No. 561 TO BE ANSWERED ON 04.02.2021

## NEGATIVE GROWTH IN MSME SECTOR

## 561. SHRI P. RAVEENDRANATH:

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

- (a) whether  the  functions  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  sector  in  our country, including my State of Tamil Nadu has posted negative growth, followed by outbreak of Covid-19 pandemic and if so, the details thereof;
- (b) whether  those  MSMEs  can  be  permitted  to  place  their  own  agricultural  dry  lands  as collateral  security,  enabling  access  to  credit  from  commercial  banks  for  their  additional  working capital requirement and if so, the details thereof; and
- (c) the steps taken or being taken to promote inclusive growth in MSME sector at rural and hill areas, across State of Tamil Nadu including theni Parliamentary Constituency?

## ANSWER

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

- (a) : COVID-19 pandemic has  temporarily  affected  various  sectors  including  Micro,  Small  and Medium Enterprises in the country. As per the advance estimates received from Central Statistics Office, Ministry of Statistics & PI, All  India Gross Value Added growth of manufacturing sector (including  MSMEs)  at  constant  prices  for  FY  2020-21  over  FY  2019-20  is  estimated  at  (-9.4) percent.

However, as regard to the State of Tamilnadu, the positive growth rate has been recorded in respect of sanction of projects under Prime Minister's Employment Generation Programme(PMEGP)  during  the  period  of  COVID-19  pandemic  (April-September  2020)  as compared  to  the  same  period  last  year  (April-September  2019).  Progress  of  PMEGP  Scheme  in Tamil Nadu State is as follows:

| Year                          |   No. of Projects assisted under PMEGP in Tamil Nadu |   Employment opportunities generated under PMEGP in Tamil Nadu |
|-------------------------------|------------------------------------------------------|----------------------------------------------------------------|
| From 01.04.2019 to 30.09.2019 |                                                 1497 |                                                          11926 |
| From 01.04.2020 to 30.09.2020 |                                                 1620 |                                                          12960 |

As  per  Udyog  Aadhaar  Portal,  number  of  MSMEs  registered  (since  September  2015  to 30.06.2020) in All India and Tamilnadu was 102,32,468 and 11,06,628 respectively.

As  per  Udyam  Registration  Portal,  number  of  MSMEs  registered  (from  01.07.2020  to 01.02.2021) in All India and Tamilnadu was 20,29,095 and 2,22,507 respectively .

- (b) : As part of Atmanirbhar Bharat Abhiyaan, the ECLGS was launched on 23rd May 2020. The scheme  envisages  fully  guaranteed  collateral  free  additional  credit  to  eligible  MSME  units  and business enterprises either in the form of additional working capital term loans (in case of banks and FIs), or additional term loans (in case of NBFCs) up to 20% of their entire outstanding credit as on 29.2.2020. All entities with outstanding credit of up to Rs. 50 crore as on 29.2.2020 and annual turnover of up to Rs. 250 crore, which were less than or equal to 60 days past due as on 29.2.2020 are eligible under the Scheme. The Scheme seeks to help the eligible entities tide over the crisis caused by the Covid-19 pandemic and meet their operational liabilities.
- (c): The Ministry of Micro, Small and Medium Enterprises (MSMEs) implement various other schemes  for  the  growth  and  development  of  MSME  sector  in  the  country  including  state  of Tamilnadu and district Theni. The total number of MSMEs registered on Udyam portal (from 1 st July, 2020 to 1 st February, 2021) in Theni district was 2217. The brief achievements under PMEGP Scheme in Tamil Nadu State are as follows:

| Year                          |   No. of Projects assisted under PMEGP in Tamil Nadu |   Employment opportunities generated under PMEGP in Tamil Nadu |
|-------------------------------|------------------------------------------------------|----------------------------------------------------------------|
| From 01.04.2019 to 30.09.2019 |                                                 1497 |                                                          11926 |
| From 01.04.2020 to 30.09.2020 |                                                 1620 |                                                          12960 |

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