Lok Sabha Question No. 2979 (UNSTARRED), answered on 2021-08-05
Subject: Stressed Small and Micro Enterprises
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Devendra (Alias) Bhole Singh Singh

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

## LOK SABHA UNSTARRED QUESTION NO. †2979 TO BE ANSWERED ON 05.08.2021

## Stressed Small and Micro Enterprises

†2979.        SHRI DEVENDRA SINGH BHOLE:

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

- (a) the details of the number of stressed small and micro enterprises in Uttar Pradesh during the period of COVID-19;
- (b) the details of small companies declared unsolvent in Uttar Pradesh during the said period; and
- (c) the details of the steps taken by the Government to revive them?

## ANSWER

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

(a) & (b): The  Reserve  Bank  of  India  issued  guidelines  on  'Framework  for  Revival  and Rehabilitation (FRR) of Micro, Small and Medium Enterprises' to Scheduled Commercial Banks (excluding Regional Rural Banks) in March 2016, the concept of sickness no longer exists. Under this Framework, banks have been advised to identify incipient stress (well before the account turns in  to  sick  category  as  per  the  earlier  definition)  in  the  MSME  accounts  and  refer  it  to  the Committees  formed  under  the  Framework  for  suitable  Corrective  Action  Plan  viz.  rectification, restructuring  and  recovery.    The  number  of  Accounts  referred  to  the  Committee  and  Accounts resolved by the committee for the half year ended March, 2017 to half year ended September, 2020 are:

|        |                              | TotalMSME                                               | TotalMSME                                               |
|--------|------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| 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      | October 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    | 2,23,786                                                | 2,01,768                                                |
| 7.     | October 2019-March 2020      | 3,39,728                                                | 3,24,621                                                |
| 8.     | April 2020 to September 2020 | 7,51,528                                                | 8,46,371                                                |

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.

- (c): The  Ministry  of  MSME  implements  various  schemes  and  programmes  for  growth  and development  of  MSME  Sector  in  the  country  including  Uttar  Pradesh.  These  schemes  and programmes include Prime Minister's Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to  MSMEs,  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises,  Micro  and  Small Enterprises  Cluster  Development  Programme  (MSE-CDP),  Credit  Linked  Capital  Subsidy    and Technology Upgradation Scheme (CLCS-TUS).

The details of achievements under various schemes in Uttar Pradesh (during the last three years) are given below:

Table-1 Prime Minister's Employment Generation Programme (PMEGP)

| Year     |   Margin Money subsidy utilized (Rs Lakh) |   Number of units assisted |   Estimated employment generated |
|----------|-------------------------------------------|----------------------------|----------------------------------|
| 2019-20  |                                  21652.5  |                       6120 |                            48960 |
| 2020-21  |                                  32985.4  |                       9994 |                            79952 |
| 2021-22* |                                   5807.15 |                       1716 |                            13728 |

*Till 30-06-2021

Source: KVIC

Table-2 Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)

| Financial Year   |   No. of Credit Facilities Approved |   Amount of Guarantees Approved (Rs in crore) |
|------------------|-------------------------------------|-----------------------------------------------|
| 2019-20          |                               89271 |                                       4154.02 |
| 2020-21          |                               78692 |                                       3730.5  |
| 2021-22*         |                               24234 |                                       1309.77 |

*Till 30-06-2021

Source: CGTMSE

Table-3 Micro and Small Enterprises- Cluster Development Programme (MSE-CDP)

| Year     |                                                 |       |
|----------|-------------------------------------------------|-------|
|          | Projects Approved Common Facility Centres (CFC) | Total |
| 2019-20  | 1                                               | 1     |
| 2020-21  | 1                                               | 1     |
| 2021-22* | 2                                               | 2     |
| Total    | 4                                               | 4     |

*Till 30-07-2021

Source: DC-MSME