Lok Sabha Question No. 490 (UNSTARRED), answered on 2021-02-04
Subject: Financial Assistance for Development of MSM
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ravi Kishan Shukla, Sanjay Sadashivrao Mandlik, Subrata Pathak, Shrirang Appa Barne, Chandra Sekhar Sahu, Sudheer Gupta, Ravindra Kushawaha, Bidyut Baran Mahato

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 490 TO BE ANSWERED ON 04.02.2021

## FINANCIAL ASSISTANCE FOR DEVELOPMENT OF MSMEs

## 490.     SHRI RAVI KISHAN:

SHRI CHANDRA SHEKHAR SAHU:

SHRI RAVINDRA KUSHWAHA:

SHRI SUBRAT PATHAK:

SHRI BIDYUT BARAN MAHATO:

SHRI SUDHEER GUPTA:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI SHRIRANG APPA BARNE:

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

- (a) the steps taken by the Government to provide financial assistance to develop Micro, Small and Medium Enterprises (MSME) units in the country;
- (b) the  details  of  existing  outstanding  loan  disbursed  by  Banks  and  state  /  UTs  for  MSME sector;
- (c) the details of MSME units which got closed / became sick during the period of Covid 19;
- (d) the  steps  being  taken  by  the  Government  to  revive  closed  /  sick  MSME  units  during  the period of COVID-19; and
- (e) whether  the  Government  had  tied  up  with  commercial  banks  to  provide  loan  to  MSMEs under any scheme and if so, the detail thereof; and
- (f) whether the Government has launched any scheme for providing loan to MSMEs and if so, the details thereof along with the details regarding extent of loans admissible under the scheme?

## ANSWER

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

(a): Ministry of Micro, Small and Medium Enterprises (MSME) has taken several initiatives to provide financial assistance to Micro, Small and Medium  Enterprises,  which  include  the schemes/programmes such as Prime Minister's Employment Generation Programme (PMEGP) for creation of non-farm employment, Credit Guarantee Scheme (CGTMSE) for collateral free loans to Micro  and  Small  Enterprises,  Credit  linked  Capital  Subsidy-Technology  Upgradation  Scheme (CLCS-TUS) for technology upgradation for MSEs etc. In addition to this, Government has also announced  measures  under  Atmanirbhar  Bharat  package  to  increase  availability  of  credit  to  the MSME sector  which inter-alia include Rs 20,000 crore Subordinate Debt for MSMEs under Credit Guarantee Scheme for Subordinate Debt (CGSSD), Rs. 3 lakh crores collateral free automatic loans for business, including MSMEs under Emergency Credit Line Guarantee Scheme (ECLGS),  Rs. 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFI,  Pradhan Mantri SvaNIDHI Scheme for collateral free loans to Street Vendors etc.  As on date 34 Banks have registered under CGSSD. As  informed  by  Department  of  Financial  Services,  as  on  25.01.2021,  guarantees  to  the  tune  of around Rs 2,01,364 crore has been issued under ECLGS. In addition to this, Ministry of MSME also  provides  guarantees  in  respect  of  credit  facilities  extended  by  Lending  Institutions  to  the borrowers in Micro and Small Enterprises (MSEs) sector.

- (b): The details of the outstanding bank credit to Micro & Small enterprises as published by RBI on 29.01.2021,  is given in the table below:
- (c): With  the  issuance  of  guidelines  on  'Framework  for  Revival  and  Rehabilitation  of  Micro, Small and Medium Enterprises' to Scheduled Commercial Banks (excluding Regional Rural Banks) in March 2016, the concept of sickness no longer exists. Under the framework, banks to identify incipient stress (well before the account turns in to sick category as per the earlier definition) in the MSME accounts and refer it to the Committee formed under the framework for suitable Corrective Action  Plan  viz.  rectification,  restructuring  and  recovery.  Data  in  this  regard  from  the  half  year ended March 2017 to half year ended March 2020 is given in Annexure I.
- (d) to (f): As  indicated  in  Part  (a)  of  the  question,  above,    the  Government  has  announced Credit Guarantee Scheme for Subordinate Debt. Under this scheme, promoters of stressed MSMEs viz.  SMA-2 and NPA accounts which are eligible for restructuring as per RBI guidelines on the books  of  the  Lending  institutions,  will  be  provided  with  credit  facilities  to  be  covered  under guarantee  by  the  CGTMSE.  The  promoters  will  infuse  the  funds  for  revival  of  such  Units. Moreover,  Government  has  also  announced  Rs.  3  lakh  crores  Collateral  free  Automatic  Loans under Emergency Credit Line Guarantee Scheme (ECLGS)  for business, including MSMEs, for those accounts which are classified as SMA-0 and SMA-1.

|             |             |             |             | (Rs.crore)   |
|-------------|-------------|-------------|-------------|--------------|
| 1004744     | 1067175     | 1061953     | 1149394     | 1131858      |
| Source- RBI | Source- RBI | Source- RBI | Source- RBI | Source- RBI  |

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## Annexure-I  referred  to  in  reply  to  part  (c)  of  Lok  Sabha  Unstarred  Question  No.  490  for answer on 04.02.2021.

Data on Framework for Revival and Rehabilitation of MSME

(Accounts in Actual)

| SI. No.   | For the half year          | Accounts referred to the Committee during the half year (1)   | Accounts resolved by the Committee during the half year (2)   | Corrective Action Plan by the Committee (out of 2)   | Corrective Action Plan by the Committee (out of 2)   | Corrective Action Plan by the Committee (out of 2)   |
|-----------|----------------------------|---------------------------------------------------------------|---------------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|
|           |                            |                                                               |                                                               | Rectification                                        | Restructuring                                        | Recovery                                             |
| 1         | October 2016- March 2017   | 100803                                                        | 137282                                                        | 80905                                                | 2197                                                 | 54180                                                |
| 2         | April 2017- September 2017 | 87062                                                         | 95107                                                         | 58512                                                | 207                                                  | 36388                                                |
| 3         | October 2017- March 2018   | 130208                                                        | 130473                                                        | 81492                                                | 1024                                                 | 47957                                                |
| 4         | April 2018- September 2018 | 150165                                                        | 123227                                                        | 76172                                                | 201                                                  | 46854                                                |
| 5         | October 2018 to March 2019 | 142275                                                        | 146519                                                        | 78737                                                | 15425                                                | 52357                                                |
| 6         | April 2019- September 2019 | 172949                                                        | 150613                                                        | 71203                                                | 14240                                                | 65170                                                |
| 7         | October 2019- March 2020   | 339728                                                        | 324621                                                        | 71938                                                | 148369                                               | 104314                                               |

Source: RBI

*Number of cases resolved by the committee is more than the cases referred due to some pending cases  with  the  committee  at  the  beginning  of  the  half  year  which  have  been  resolved  during  the period.