Lok Sabha Question No. 650 (UNSTARRED), answered on 2021-07-22
Subject: Lockdown Impact on MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: M. K. Raghavan

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 650 TO BE ANSWERED ON 22.07.2021

## Lockdown impact on MSME Sector

## 650. SHRI  M. K. RAGHAVAN:

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

(a) the  details  of  programmes  undertaken  to  overcome  the  COVID-19  and  lockdowns negative impact on the MSME Sector and its reach, State-wise;

- (b) the  details  of  moratorium  extended  to  the  MSME  sector   and  the  details  of  the beneficiaries, sector-wise;
- (c) whether any provisions  have been made to address the problems faced  by MSMEs against loans and their repaymenta along with interest rates; and

(d) if  so,  the  details  thereof  and  the  manner  in  which  the  entrepreneurs  would  be benefitted from such provisions?

## ANSWER

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

(a): Government of India has taken various measures to overcome the impact of COVID19  on  the  MSME  sector  which  inter  alia  include    (i)  Rs.  3  lakh  crores  Collateral  free Automatic  Loans under  Emergency Credit  Line  Guarantee  Scheme (ECLGS) for  business, including revival of MSMEs, for Standard accounts and those accounts which are classified as SMA-0 and SMA-1, (ii) Rs.20,000 crore Credit Guarantee Scheme for Subordinate Debt (CGSSD) for the promoters of stressed MSMEs viz. SMA-2 and NPA accounts which are eligible for restructuring. The overall cap of admissible guarantee of ECLGS is further raised from  Rs.  3  lakh  crore  to  Rs.  4.5  lakh  crore  on  28.06.2021.  The  state  wise  number  of guarantees issued under ECLGS and CGSSD is at Annexure-I and Annexure-II respectively.

(b) to (d): A number of measures have been taken to support stressed micro, small and medium enterprises (MSMEs), which inter-alia include the  following:

- (i) RBI,  vide  circular  dated  6.8.2020,  provide  a  framework  for  lenders  to  implement resolution  plans  in  respect  of  eligible  loans  including  that  to  MSMEs  having aggregate exposure of more than Rs. 25 crore, to enable lending institutions to offer customized relief to borrowers in the form of restructuring, without downgrading the loan as an NPA.

- (ii) To facilitate restructuring of loan accounts of MSMEs having aggregate exposure up to Rs. 25 crore, RBI -
- (a) introduced  a  scheme  for  restructuring  loan  accounts  in  default  but  classified  as standard assets as on 1.1.2019 of GST-registered and GEST-registration-exempt MSMEs, with exposure of up to Rs.  25  crore,  without  downgrading  their  asset classification;
- (b) extended the said scheme for loan accounts in default but classified as standard assets as on 1.1.2020;
- (c) extended it further, in the context of the pandemic, for loan accounts in default but classified as standard assets as on 1.3.2020, for restructuring up to 31.3.2021;
- (d) vide circular dated 5.5.2021, extended it again, in view of the resurgence of the pandemic, permitting invocation of restructuring till 30.9.2021; and
- (e) vide  circular  dated  4.6.2021,  enhanced  the  aggregate  exposure  eligible  for restructuring to Rs. 50 crore.

As per information furnished by  public sector banks to the Department of Financial Services, till 25.6.2021, 13.06 lakh MSME accounts with an aggregate amount of Rs. 55,333 crore had been restructured by them under the said restructuring scheme.

****

| Annexure-I                                                                                                                      | Annexure-I                                                                                                                      | Annexure-I                                                                                                                      | Annexure-I                                                                                                                      |
|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
| Annexure to Lok Sabha Question No. 650, Answer Date : 22.07.2021 State-wise guarantees issued under ECLGS as on 2 nd July, 2021 | Annexure to Lok Sabha Question No. 650, Answer Date : 22.07.2021 State-wise guarantees issued under ECLGS as on 2 nd July, 2021 | Annexure to Lok Sabha Question No. 650, Answer Date : 22.07.2021 State-wise guarantees issued under ECLGS as on 2 nd July, 2021 | Annexure to Lok Sabha Question No. 650, Answer Date : 22.07.2021 State-wise guarantees issued under ECLGS as on 2 nd July, 2021 |
| SI. No.                                                                                                                         | Name of State/UT                                                                                                                | Number of guarantees issued                                                                                                     | Guarantee Amount (In Rs crore)                                                                                                  |
| 1                                                                                                                               | Andaman &Nicobar                                                                                                                | 1998                                                                                                                            | 103.82                                                                                                                          |
| 2                                                                                                                               | Andhra Pradesh                                                                                                                  | 280195                                                                                                                          | 8947.14                                                                                                                         |
| 3                                                                                                                               | Arunachal Pradesh                                                                                                               | 2261                                                                                                                            | 74.23                                                                                                                           |
| 4                                                                                                                               | Assam                                                                                                                           | 540345                                                                                                                          | 2792.03                                                                                                                         |
| 5                                                                                                                               | Bihar                                                                                                                           | 799969                                                                                                                          | 3981.21                                                                                                                         |
| 6                                                                                                                               | Chandigarh                                                                                                                      | 6444                                                                                                                            | 909.88                                                                                                                          |
| 7                                                                                                                               | Chhattisgarh                                                                                                                    | 195666                                                                                                                          | 4247.22                                                                                                                         |
| 8                                                                                                                               | Dadra &Nagar Haveli                                                                                                             | 2111                                                                                                                            | 301.97                                                                                                                          |
| 9                                                                                                                               | Daman &Diu                                                                                                                      | 926                                                                                                                             | 128.04                                                                                                                          |
| 10                                                                                                                              | Delhi                                                                                                                           | 98686                                                                                                                           | 16131.91                                                                                                                        |
| 11                                                                                                                              | Goa                                                                                                                             | 12127                                                                                                                           | 951.95                                                                                                                          |
| 12                                                                                                                              | Gujarat                                                                                                                         | 357208                                                                                                                          | 23073.15                                                                                                                        |
| 13                                                                                                                              | Haryana                                                                                                                         | 194444                                                                                                                          | 11810.1                                                                                                                         |
| 14                                                                                                                              | Himachal Pradesh                                                                                                                | 46906                                                                                                                           | 1603.29                                                                                                                         |
| 15                                                                                                                              | Jammu &Kashmir                                                                                                                  | 66828                                                                                                                           | 2009.71                                                                                                                         |
| 16                                                                                                                              | Jharkhand                                                                                                                       | 289769                                                                                                                          | 2747.85                                                                                                                         |
| 17                                                                                                                              | Karnataka                                                                                                                       | 856920                                                                                                                          | 16837.74                                                                                                                        |
| 18                                                                                                                              | Kerala                                                                                                                          | 517451                                                                                                                          | 8124.75                                                                                                                         |
| 19                                                                                                                              | Ladakh                                                                                                                          | 1004                                                                                                                            | 45.88                                                                                                                           |
| 20                                                                                                                              | Laksha Deep                                                                                                                     | 369                                                                                                                             | 1.91                                                                                                                            |
| 21                                                                                                                              | Madhya Pradesh                                                                                                                  | 554995                                                                                                                          | 7968.8                                                                                                                          |
| 22                                                                                                                              | Maharashtra                                                                                                                     | 985936                                                                                                                          | 39976.98                                                                                                                        |
| 23                                                                                                                              | Manipur                                                                                                                         | 10301                                                                                                                           | 123.81                                                                                                                          |
| 24                                                                                                                              | Meghalaya                                                                                                                       | 11075                                                                                                                           | 208.47                                                                                                                          |
| 25                                                                                                                              | Mizoram                                                                                                                         | 3738                                                                                                                            | 55.46                                                                                                                           |
| 26                                                                                                                              | Nagaland                                                                                                                        | 7410                                                                                                                            | 68.64                                                                                                                           |
| 27                                                                                                                              | Orissa                                                                                                                          | 925628                                                                                                                          | 4722.31                                                                                                                         |
| 28                                                                                                                              | Pondicherry                                                                                                                     | 21266                                                                                                                           | 452.11                                                                                                                          |
| 29                                                                                                                              | Punjab                                                                                                                          | 199545                                                                                                                          | 8091.61                                                                                                                         |
| 30                                                                                                                              | Rajasthan                                                                                                                       | 533724                                                                                                                          | 12830.82                                                                                                                        |
| 31                                                                                                                              | Sikkim                                                                                                                          | 8201                                                                                                                            | 97.19                                                                                                                           |
| 32                                                                                                                              | Tamilnadu                                                                                                                       | 839374                                                                                                                          | 26383.13                                                                                                                        |
| 33                                                                                                                              | Telangana                                                                                                                       | 139888                                                                                                                          | 10646.5                                                                                                                         |
| 34                                                                                                                              | Tripura                                                                                                                         | 61360                                                                                                                           | 249.43                                                                                                                          |
| 35                                                                                                                              | Uttar Pradesh                                                                                                                   | 788720                                                                                                                          | 15539.88                                                                                                                        |
| 36                                                                                                                              | Uttrakhand                                                                                                                      | 70347                                                                                                                           | 2149.54                                                                                                                         |
| 37                                                                                                                              | West Bengal                                                                                                                     | 1998706                                                                                                                         | 14384.05                                                                                                                        |
| Total                                                                                                                           |                                                                                                                                 | 11431841                                                                                                                        | 248772.5                                                                                                                        |
|                                                                                                                                 |                                                                                                                                 | Source- Department of Financial Services                                                                                        | Source- Department of Financial Services                                                                                        |

| Annexure - II                                                                                                                        | Annexure - II                                                                                                                        | Annexure - II                                                                                                                        | Annexure - II                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| Annexure to Lok Sabha Question No. 650 , Answer Date: 22.07.2020 State wise Guarantee Approved for CGSSD Cumulative as on 30/06/2021 | Annexure to Lok Sabha Question No. 650 , Answer Date: 22.07.2020 State wise Guarantee Approved for CGSSD Cumulative as on 30/06/2021 | Annexure to Lok Sabha Question No. 650 , Answer Date: 22.07.2020 State wise Guarantee Approved for CGSSD Cumulative as on 30/06/2021 | Annexure to Lok Sabha Question No. 650 , Answer Date: 22.07.2020 State wise Guarantee Approved for CGSSD Cumulative as on 30/06/2021 |
| Sr. No.                                                                                                                              | States / UTs                                                                                                                         | No. of Guarantee                                                                                                                     | Amount (In Cr.)                                                                                                                      |
| 1                                                                                                                                    | Andaman &Nicobar                                                                                                                     | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 2                                                                                                                                    | Andhra Pradesh                                                                                                                       | 24                                                                                                                                   | 3.98                                                                                                                                 |
| 3                                                                                                                                    | Arunachal Pradesh                                                                                                                    | 1                                                                                                                                    | 0.36                                                                                                                                 |
| 4                                                                                                                                    | Assam                                                                                                                                | 9                                                                                                                                    | 1.25                                                                                                                                 |
| 5                                                                                                                                    | Bihar                                                                                                                                | 18                                                                                                                                   | 0.59                                                                                                                                 |
| 6                                                                                                                                    | Chandigarh                                                                                                                           | 7                                                                                                                                    | 0.60                                                                                                                                 |
| 7                                                                                                                                    | Chhattisgarh                                                                                                                         | 11                                                                                                                                   | 0.54                                                                                                                                 |
| 8                                                                                                                                    | Dadra &Nagar Haveli                                                                                                                  | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 9                                                                                                                                    | Daman &Diu                                                                                                                           | 2                                                                                                                                    | 0.14                                                                                                                                 |
| 10                                                                                                                                   | Delhi                                                                                                                                | 18                                                                                                                                   | 1.90                                                                                                                                 |
| 11                                                                                                                                   | Goa                                                                                                                                  | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 12                                                                                                                                   | Gujarat                                                                                                                              | 22                                                                                                                                   | 1.92                                                                                                                                 |
| 13                                                                                                                                   | Haryana                                                                                                                              | 6                                                                                                                                    | 0.94                                                                                                                                 |
| 14                                                                                                                                   | Himachal Pradesh                                                                                                                     | 18                                                                                                                                   | 1.51                                                                                                                                 |
| 15                                                                                                                                   | Jammu &Kashmir                                                                                                                       | 23                                                                                                                                   | 1.41                                                                                                                                 |
| 16                                                                                                                                   | Jharkhand                                                                                                                            | 20                                                                                                                                   | 0.94                                                                                                                                 |
| 17                                                                                                                                   | Karnataka                                                                                                                            | 43                                                                                                                                   | 7.57                                                                                                                                 |
| 18                                                                                                                                   | Kerala                                                                                                                               | 21                                                                                                                                   | 3.18                                                                                                                                 |
| 19                                                                                                                                   | Ladakh                                                                                                                               | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 20                                                                                                                                   | Laksha Deep                                                                                                                          | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 21                                                                                                                                   | Madhya Pradesh                                                                                                                       | 41                                                                                                                                   | 3.66                                                                                                                                 |
| 22                                                                                                                                   | Maharashtra                                                                                                                          | 77                                                                                                                                   | 9.85                                                                                                                                 |
| 23                                                                                                                                   | Manipur                                                                                                                              | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 24                                                                                                                                   | Meghalaya                                                                                                                            | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 25                                                                                                                                   | Mizoram                                                                                                                              | 2                                                                                                                                    | 0.01                                                                                                                                 |
| 26                                                                                                                                   | Nagaland                                                                                                                             | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 27                                                                                                                                   | Orissa                                                                                                                               | 39                                                                                                                                   | 1.42                                                                                                                                 |
| 28                                                                                                                                   | Pondicherry                                                                                                                          | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 29                                                                                                                                   | Punjab                                                                                                                               | 73                                                                                                                                   | 7.95                                                                                                                                 |
| 30                                                                                                                                   | Rajasthan                                                                                                                            | 26                                                                                                                                   | 1.58                                                                                                                                 |
| 31                                                                                                                                   | Sikkim                                                                                                                               | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 32                                                                                                                                   | Tamilnadu                                                                                                                            | 87                                                                                                                                   | 10.92                                                                                                                                |
| 33                                                                                                                                   | Telangana                                                                                                                            | 29                                                                                                                                   | 4.42                                                                                                                                 |
| 34                                                                                                                                   | Tripura                                                                                                                              | 0                                                                                                                                    | 0.00                                                                                                                                 |
| 35                                                                                                                                   | Uttar Pradesh                                                                                                                        | 60                                                                                                                                   | 5.65                                                                                                                                 |
| 36                                                                                                                                   | Uttarakhand                                                                                                                          | 13                                                                                                                                   | 1.50                                                                                                                                 |
| 37                                                                                                                                   | West Bengal                                                                                                                          | 18                                                                                                                                   | 1.66                                                                                                                                 |
|                                                                                                                                      | Total                                                                                                                                | 708                                                                                                                                  | 75.45                                                                                                                                |

Source: CGTMSE