Lok Sabha Question No. 1770 (UNSTARRED), answered on 2021-07-29
Subject: Bicycle Industry
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 1770 TO BE ANSWERED ON 29.07.2021

## Bicycle Industry

## 1770.               SHRI RAVNEET SINGH BITTU:

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

- (a) whether the Government is aware that the Bicycle industry in Ludhiana in the State of Punjab is facing a huge crisis due to a lockdown in other States that has led to blockage of payments worth hundreds of crores as well as piling up of unsold stock with the traders;
- (b) if so, the details thereof;

(c) whether the Government is taking measures to help the bicycle industry by providing them with some special packages in this regard;

- (d) if so, the details thereof; and
- (e) If not, the reasons therefor?

## ANSWER

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

(a) & (b): COVID-19  pandemic  has  temporarily  affected  various  sectors  including Micro, Small and Medium Enterprises in the country. Economic activity contracted due to the strict  lockdown measures imposed by the Government. This contraction had impact on the Bicycle industry of Ludhiana also.

An online Portal 'Champions' has been launched on 01.06.2020 by Hon'ble Prime Minister.  This  covers  many  aspects  of  e-governance  including  grievance  redressal  and handholding  of  MSMEs.  Through  the  portal,  total  35,983  grievances  have  been  redressed upto 25.07.2021. No such grievance of Bicycle industry has been received on the Portal.

As  per  Udyog  Aadhaar  Portal  (since  inception  October  2015  to  June  2020),  the number  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  registered  in  All  India  under National  Industrial  classification  codes  2008,  '3092'  Manufacture  of  bicycles  and  invalid carriages category was 4703.

On 1st  July,  2020,  after  adoption  of  new  definition  of  MSMEs,  a  new  registration portal 'Udyam Registration' has been launched by M/o MSME and so far 2537 MSMEs are registered  under  NIC  2008  Code  (3092)  Manufacture  of  bicycles  and  invalid  carriages category.

(c) & (d): Under Special Financial package, the Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector including Bicycle Industries  in  the  country.  These  schemes  and  programmes  include  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 Up-gradation Scheme (CLCS-TUS).

Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 pandemic. Some of them are:

- i)      Rs 20,000 crore Subordinate Debt for MSMEs.
2. ii)   Rs. 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
3. iii)  Rs. 50,000 crore equity infusion through MSME Fund of Funds.
4. iv)  New revised criteria for classification of MSMEs.
- v)      New  Registration  of  MSMEs  through  'Udyam  Registration'  for  Ease  of  Doing Business.
6. vi)  No global tenders for procurement up to Rs. 200 crores, this will help MSME.  the Micro and  Small Enterprises -

Under  Infrastructure  support  package,  the  Ministry  of  MSME  implements  Cluster Development  Programme  (MSE-CDP)  for  the  development  of  MSMEs,  the  following Common  Facility  Centres  (CFCs)  have  been  established  in  Punjab.  These  CFCs  have facilities  for  computerized  product  designing  and  CNC  machining  for  production  of engineering items which can be utilized by Bicycle industry of Punjab.

| Common Facility Centre set up MSMEMinistry in the State of Punjab   | Common Facility Centre set up MSMEMinistry in the State of Punjab   | Common Facility Centre set up MSMEMinistry in the State of Punjab   | Common Facility Centre set up MSMEMinistry in the State of Punjab   | Common Facility Centre set up MSMEMinistry in the State of Punjab   |
|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|
| S. No.                                                              | Name of CFC                                                         | Year of Completion of CFC                                           | Total project cost (Rs. in lakh)                                    | GoI grant (Rs. in lakh)                                             |
| 1.                                                                  | CFC in Oil Expeller & Parts Manufacturing Cluster, Ludhiana         | December, 2020                                                      | 1518.68                                                             | 1335.63                                                             |
| 2.                                                                  | CFC in Hi-Tech Cluster, Mohali                                      | November, 2020                                                      | 1407.69                                                             | 1099.39                                                             |

Tool Room, Ludhiana has facilitated Bicycle Industries of Ludhiana during Covid-19 period by providing Tool Room services as mentioned below

- a) Design validation of bicycle  mud guard design through 3D printing
- b) Machining of tools for chain wheels
- c) Design and Development of press tool for c- clamp of bicycle saddle
- d) Heat treatment of Dies of B Cup,  Aluminium Cycle frame, Gear hub spring, Dies of Cycle   Fork, Die/Punch of Free Wheel.
- e) Raw Material testing
- f) Placement assistance through trainees.

## (e): Not applicable.

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