Lok Sabha Question No. 3098 (UNSTARRED), answered on 2022-08-04
Subject: Bailout Package for MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: A. Ganeshamurthi

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3098 TO BE ANSWERED ON 04.08.2022

## BAILOUT PACKAGE FOR MSMEs SECTOR

3098. SHRI A. GANESHAMURTHI:

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

- (a): whether  any  bailout  package  was  announced  by  the  Government  for  MSME  sector, especially during Covid lockdown,  keeping in view the significant  contribution of  MSME sector in terms of industrial output, employment generation and GDP growth;
- (b) if so, the details of initiatives taken by the Government to help MSME sector to face new challenges and survive, during the last three years;
- (c) whether any survey was conducted to find out the concessions and reliefs announced by the Government for MSME  units;
- (d) if so, the details thereof; and
- (e) if not, the corrective steps proposed to revive the sector?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) & (b): Government has announced and operationalised Aatma Nirbhar Bharat Package for MSMEs to  cope  up  with  the  COVID-19  crisis,  which  inter  alia  includes  the  following  major schemes:

- i) Emergency Credit Line Guarantee Scheme (ECLGS): This scheme was announced as a part of Aatma Nirbhar Bharat Package in May, 2020 to provide Collateral free Automatic Loans for  businesses, including MSMEs. Initially, the admissible limit of the guarantee was Rs. 3 lakh crore which was later enhanced to Rs. 4.5 lakh crore. As per the Budget Announcement 2022-23, the ECLGS has been extended up to 31 st March, 2023 with an expanded guarantee coverage of Rs. 5 lakh crore. The additional guarantee cover of Rs. 50,000 crore is earmarked exclusively for the hospitality and related enterprises.
2. ii) Self Reliant India (SRI) Fund: The Government of India has announced Fund of Funds as  a  part  of  Aatma  Nirbhar  Bharat  Package  in  May,  2020  ,with  the  nomenclature  Self Reliant India (SRI) Fund to infuse as equity funding in MSMEs which have the potential and viability to grow and become large units. This initiative is aimed at providing growth capital  to  the  deserving  and  eligible  units  of  MSME  sector.  Under  this  scheme,  till 30 th June, 2022, Rs 1,571.55 Crore have been invested in MSMEs across the country.

(c) to (e): The  Ministry  of  MSME  on  7 th September,  2021  assigned  a  Study  to  Small Industries  Development  Bank  of  India  (SIDBI)  to  assess  the  impact  of  change  in  MSME classification  on  the  Sector.  The  terms  of  reference  of  the  said  study  inter  alia  also  included assessment of impact of Covid-19 pandemic on the MSME sector. The study reveals that around 65 percent of the MSMEs surveyed have availed the benefits of Emergency Credit Line Guarantee Scheme.

As informed by Department of Financial Services (DFS), studies have been conducted to assess  the  impact  of  the  support  to  MSMEs  through  ECLGS  by  National  Institute  of  Bank Management (NIBM), NOMURA and Trans Union CIBIL. The studies have found that  under ECLGS, the loans were fairly easy to obtain, cost effective, helpful to fulfil short term financial needs, eased cash flow burden. The scheme has been successful in helping MSME sector navigate through the crisis.

State Bank of India (SBI) came out with a research report dated 06.01.2022 on ECLGS, authored by its Group Chief Economic Advisor. It has been reported that almost 13.5 lakh MSME accounts were saved due to ECLGS scheme (including restructured), of which about 93.7% of the accounts were in Micro and Small category.

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