Lok Sabha Question No. 1335 (UNSTARRED), answered on 2021-12-06
Subject: Closure of Industries
Ministry: LABOUR AND EMPLOYMENT
Asked by: Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Bhavana Gawali (Patil)

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 1335

TO BE ANSWERED ON 06.12.2021

## CLOSURE OF INDUSTRIES

†1335. SHRI OMPRAKASH BHUPALSINH alias PAWAN

RAJENIMBALKAR:

SHRIMATI BHAVANA PUNDALIKRAO GAWALI:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether all  sectors  of  the  economy  have  faced  difficulties  due  to the COVID-19 pandemic resulting in rising unemployment and if so, the details thereof;
- (b)the  number  of  industries  closed  during  the  lockdown  due  to  the COVID-19 pandemic in the country and if so, the details thereof;
- (c)whether  the  Government  has  any  estimate  regarding  the  loss  of jobs during the said period and if so, the details thereof;
- (d)whether the Government is taking any steps to provide incentives
- to industries to re-start their business; and
- (e)if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

(a) to (c): Labour Bureau, under the Ministry of Labour & Employment, has been entrusted with the task of conducting the Quarterly Employment  Survey  (QES)  as  a  component  of  All  India  Quarterly Establishment based Employment Survey (AQEES). Quarterly Employment Survey conducted during the first quarter (April-May-June, 2021)  was  also  designed  to  collect  the  information  on  the  Covid-19 pandemic impact on the operational status and employment status of the establishments in the selected 9 sectors.

The  impact  on  number  of  employees  during  lockdown period is given at Annexure.

- (d) & (e): The steps initiated by the Government to provide incentives to the Industries are as under:-
- (i)  The  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  was announced as part of the Aatma Nirbhar Bharat Package in 2020 with the objective to help MSMEs/small businesses under distress caused by the COVID-19 crisis, by providing 100 per cent guarantee against any  losses  suffered  by  them  due  to  non-repayment  of  the  ECLGS funding  by  borrowers.  An  overall  ceiling  of  Rs.  3  lakh  crore  of guarantees was approved.
- (ii)  Since  its  launch,  ECLGS  has  undergone  extensions  and  changes keeping  in  view  of  the  impact  of  Covid  on  various  sectors  of  the economy and emerging needs. All these changes were made within the overall ceiling of Rs. 3 lakh guarantee cover. The design of ECGLS provides flexibility to quickly respond to emerging needs, as has been evidenced by the introduction of ECLGS 2.0, 3.0 and 4.0 as well as changes  from  time  to  time,  all  of  which  were  within  available headroom of Rs 3 lakh crore. Keeping in view the changes announced in  the  scheme  and  the  continuing  adverse  impact  of  COVID  on businesses,  it  has  been  decided  to  enhance  the  existing  overall guarantee limit of Rs. 3 lakh crore to Rs. 5.50 lakh crore.
- (iii)  Further,  with  a  view  to  support  businesses  impacted  by  the second wave of COVID 19 pandemic, modifications have been made in  the  Scheme,  which  inter-alia  include,  additional  credit  support  of upto 10% of total credit outstanding as on 29.02.2020 or 31.03.2021, whichever  is  higher,  to  existing  borrowers  under  ECLGS  1.0  &  2.0 with  moratorium  period  of  2  years  for  Principal  repayment  on  such additional loan; credit support of upto 30% of their credit outstanding as  on  31.03.2021  to  businesses  who  have  not  availed  assistance under ECLGS (ECLGS 1.0 or 2.0) with a moratorium period of 2 years for  Principal  repayment;  credit  support  up  to  40%  of  their  credit outstanding  as  on  31.03.2021,  subject  to  the  maximum  of  Rs.  200 crore per borrower, to businesses in sectors specified under ECLGS 3.0,  who  have  previously  not  availed  ECLGS  and  incremental  credit can  be  availed  within  these  limits  by  existing  ECLGS  borrowers whose  eligibility  increased  because  of  change  in  cut-off  date  to 31.03.2021 from 29.02.2020. The repayment period excluding moratorium for ECLGS-1.0 is 3 years and that for ECLGS-2.0 and 3.0 is 4 years.

(iv)  In  addition,  Aatmanirbhar  Bharat  Rojgar  Yojana  (ABRY) which was launched with effect from 1st October, 2020 as part of Atmanirbhar 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.  This scheme  being implemented through Employees' Provident Fund Organisation  (EPFO),  seeks  to  reduce  the  financial  burden  of  the employers and encourages them to hire more workers. The terminal date for registration of beneficiaries has been extended from 30.06.2021 to 31.03.2022. As on 20.11.2021, benefit has been provided to 39.43 lakh beneficiaries through 1.15 lakh establishments.

It  has  been  reported  that  the  support  provided  as  per details  above  has  helped  businesses  restart  operations  after  the lockdown and contributed to economic revival in the country.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) to (c) OF LOK SABHA UNSTARRED QUESTION NO. 1335 FOR 06.12.2021.

Sector-wise Percentage Distribution of Estimated Establishments according to Operational Status and Impact on Number of Employees during Lockdown Period (25 th March 2020 to 30 th June 2020)

|                            |         | Units Prior to                  | Number of Employees (in Lakhs)    | Number of Employees (in Lakhs)    | Number of Employees (in Lakhs)   | Number of Employees (in Lakhs)   |
|----------------------------|---------|---------------------------------|-----------------------------------|-----------------------------------|----------------------------------|----------------------------------|
| Sl. No.                    | Sectors | During Lockdown Operational (%) | Lockdown (before 25th March 2020) | Lockdown (before 25th March 2020) | As on 1st July 2020)             | As on 1st July 2020)             |
|                            |         | M                               |                                   | F                                 | M                                | F                                |
| 1 Manufacturing            | 30.4    | 98.7                            |                                   | 26.7                              | 87.9                             | 23.3                             |
| 2 Construction             | 31.3    | 5.8                             |                                   | 1.8                               | 5.1                              | 1.5                              |
| 3 Trade                    | 28.5    | 16.1                            |                                   | 4.5                               | 14.8 4                           |                                  |
| Transport                  | 44      | 11.3                            | 1.9                               | 11.1                              | 1.9                              | 4                                |
| Education                  | 23.5    | 38.2                            | 29.5                              | 36.8                              | 28.1                             | 5                                |
| Health                     | 88.9    | 15                              | 10.6                              | 14.8                              | 10.1                             | 6                                |
| Accommodation& Restaurants | 28      | 7                               | 1.9                               | 6.2                               | 1.7                              | 7                                |
| IT /BPOs                   | 35.2    | 13.6                            | 6.3                               |                                   | 12.8 6.1                         | 8                                |
| 9 Financial Services       | 71.6    | 11.5                            | 5.9                               | 11.3                              | 5.7                              |                                  |
| Total                      | Total   | 34.2                            | 217.8                             | 90                                | 201.5                            | 83.3                             |

## Note:

1. Percentages in the 'Total' row take into account the 66 establishments which were found during the survey to belong to the sectors other than the nine selected sectors.
2. M - Male ; F - Female

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