Lok Sabha Question No. 1925 (UNSTARRED), answered on 2022-03-14
Subject: Assistance under ECLGS
Ministry: FINANCE
Asked by: Umesh G. Jadhav, B. Y. Raghavendra, Prathap Simha, Sanganna Amarappa Karadi, L.S. Tejasvi Surya

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UN-STARRED QUESTION NO. 1925 TO BE ANSWERED ON 14th MARCH, 2022 23 PHALGUNA, 1943 (SAKA)

## ASSISTANCE UNDER ECLGS

1925. DR. UMESH G JADHAV SHRI Y. RAGHAVENDRA , SHRI PRATHAP SIMHA, SHRI SANGANNA AMARAPPA, SHRI L.S. TEJASVI SURYA:

Will the Minister of FINANCE be pleased to state:

- (a) the number of MSMEs who have availed assistance under the   Emergency Credit Line Guarantee Scheme (ECLGS) and the amount of assistance totally received from the banks during the Covid-19 pandemic, year-wise;
- (c) whether the Government has been able to successfully help MSMEs from going bankrupt the Covid-19 pandemic and if so, the details of the amount earmarked as target and the total number of MSMEs who have been saved from bankruptcy yearly; and during
- (b) the category-wise breakup and the State-wise breakup of the number of MSMEs who have received assistance under the ECLGS along with the amount of assistance received under each category by each State;
- (d) whether the Government is considering any further measures to help MSMEs from the COVID19 pandemic-induced economic slowdown and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

(DR. BHAGWAT KARAD)

(a) to (c): The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in 2020 as of the Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small and Medium Enterprises (MSMEs) and other eligible business enterprises in meeting their operational liabilities and restarting their businesses in the context of the disruption caused by the COVID-19 pandemic. It covered all the sectors of the economy. 100% guarantee is provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them under the scheme to eligible borrowers. The scheme has been amended several times to respond to emerging needs of the economy and sectors adversely  impacted by Based on information   furnished by the National Credit Guarantee Trustee Company Limited (NCGTC) , the agency which operates the scheme, the yearwise and State-wise number and amounts of   guaranteed loans sanctioned to MSMEs and guarantees issued on account of such loans under ECLGS (along with category-wise break-up) , are at Annex and Annex Il respectively. May part

As per a research report dated 6.1.2022 on ECLGS, authored by the Group Chief Economic Advisor of the State Bank of India, almost 13.5 lakh MSME accounts were saved from slipping into nonperforming asset (NPA) classification due to ECLGS, of which about 93.7% of the accounts were in the micro and small enterprises categories.

- (d): Beside ECLGS, a number of other measures have been taken to further help MSMEs in the context of the pandemic, including the following:
- (\_) 2% subvention on interest rate has been provided for loans to MSMEs of up to Rs. 50,000 under Pradhan Mantri Mudra Yojana.
- (ii) A credit guarantee scheme for micro-finance institutions (MFIs) has been launched in June 2021 as part of the Economic Relief Package to support the economy in the fight against the pandemic Under this, 75% guarantee cover is provided to commercial banks for the funding provided by them to MFIs for on-lending to eligible small borrowers
- (iii) The Ministry of MSME has launched a Credit Guarantee Scheme for Subordinate Debt; under which promoters of eligible stressed MSME units can avail of subordinate debt of up to 15% of the promoter's stake or Rs. 75 lakh, whichever is lower, for infusion by the promoter as equitylquasi-equity in the MSME unit:

Lok Sabha Un-starred Question no. 1925 for 14th March 2022, regarding Assistance under ECLGS"

Annex Number and amounts of guaranteed loans sanctioned to Micro, Small and Medium Enterprises and guarantees issued on account of such loans under Emergency Credit Line Guarantee Scheme (ECLGS)

| Financial year           | Unit category   | Number of guarantees issued   | Loan amount guaranteed   |
|--------------------------|-----------------|-------------------------------|--------------------------|
| 2020-21                  | Micro           |                               | 60,423.05                |
| 2020-21                  | Small           | 4,47,672                      | 60,345.85                |
| 2020-21                  | Medium          | 2,57,182                      | 35,941.62                |
| 2020-21                  | Total           | 90,39,573                     | 1,56,710.52              |
| 2021-22 (till 28.2.2022) | Micro           | 20,72,292                     | 16,186.52                |
| 2021-22 (till 28.2.2022) | Small           | 80,194                        | 20,630.41                |
| 2021-22 (till 28.2.2022) | Medium          | 7,810                         | 17,787.08                |
| 2021-22 (till 28.2.2022) | Total           | 21,60,296                     | 54,604.01                |

Source: National Credit Guarantee Trustee Company Limited

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