Lok Sabha Question No. 1654 (UNSTARRED), answered on 2021-02-11
Subject: Registered/Closed MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: M. Selvaraj, Manoj Kishorbhai Kotak, K. Muraleedharan

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

## LOK SABHA UNSTARRED QUESTION No. 1654 TO BE ANSWERED ON 11.02.2021

## REGISTERED/CLOSED MSMEs

1654.  SHRI M. SELVARAJ: SHRI MANOJ KOTAK: SHRI K. MURALEEDHARAN:

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

- (a) the  number  of  MSMEs  registered  in  the  country  between  the  financial  years  2014-15  and 2019-20;
- (b) the number of MSMEs which have been closed down between the financial years 2014-15 and 2019-20 along with the reasons therefor;
- (c) the number of MSMEs that have been shut down due to economic distress between March 2020 and December 2020 along with the reasons therefor; and
- (d) the steps taken by Government to assist MSMEs post COVID-19 pandemic?

## ANSWER

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

- (a) : As  per  Udyog  Aadhaar  Portal,  number  of  MSMEs  registered  (since  September  2015  to 30.06.2020) in All India was 102,32,468.
- (b) & (c): COVID-19 epidemic has temporarily affected various sectors including Micro, Small and Medium Enterprises in the country. As per the data received from RBI, the number of accounts referred to and resolved by the Committee is as under:

As per the information received from RBI, the Reserve Bank of India issued guidelines on 'Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises' to Scheduled Commercial Banks (excluding Regional Rural Banks) in March 2016.  Under this Framework, banks have been advised to identify incipient stress in the MSME accounts and refer it to the Committees formed under the framework for Corrective Action Plan for rectification, restructuring and recovery. The number Accounts referred to the Committee and Accounts resolved by the committee for the half year ended March, 2017 to half year ended March, 2020 are:

|       |                            | Total MSME                                              | Total MSME                                              |
|-------|----------------------------|---------------------------------------------------------|---------------------------------------------------------|
| S No. | For the half year          | Accounts referred to the Committee during the half year | Accounts resolved by the Committee during the half year |
| 1     | October 2016- March 2017   | 1,00,803                                                | 1,37,282                                                |
| 2     | April 2017- September 2017 | 87,062                                                  | 95,107                                                  |
| 3     | November 2017-March 2018   | 1,30,208                                                | 1,30,473                                                |
| 4     | April 2018-September 2018  | 1,50,165                                                | 1,23,227                                                |
| 5     | October 2018-March 2019    | 1,42,275                                                | 1,46,519                                                |
| 6     | April 2019-September 2019  | 1,72,949                                                | 1,50,613                                                |
| 7.    | October 2019-March 2020    | 3,39,728                                                | 3,24,621                                                |

Source: RBI

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

- (d): 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.

The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  implement  various  other schemes for the growth and development of MSME sector in the country. These include Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

Recently, Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 Pandemic. Some of them are:

- i)   Rs 20,000 crore Subordinate Debt for MSMEs.
2. ii)  Rs 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
3. iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.
4. iv) New revised criteria for classification of MSMEs.
- v) New Registration of MSMEs through 'Udyam Registration' for Ease of Dong Business.
6. vi) No global tenders for procurement up to Rs. 200 crores, this will help MSME.

An online Portal 'Champions' has been launched on 01.06.2020 by Hon'ble Prime Minister. This  covers  many  aspects  of  e-governance  including  grievance  redressal  and  handholding  of MSMEs. Through the portal, total 26,693 grievances have been redressed upto 31.01.2021.

*****