Lok Sabha Question No. 1611 (UNSTARRED), answered on 2021-07-29
Subject: Relief Package for MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: S. Jothimani

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

## LOK SABHA UNSTARRED QUESTION NO. 1611 TO BE ANSWERED ON 29.07.2021

## Relief Package for MSME Sector

## 1611. MS. S. JOTHIMANI:

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

- (a) whether the Government is planning to provide a relief package to MSME sector workers in Karur in Tamil Nadu who have lost or are on the verge of losing their job;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) the number of MSME companies shut down since March 2020, State-wise;
- (d) the number of MSME companies that declared bankrupt since March 2020, Statewise;
- (e) whether  the  Government  is  planning  to  protect  the  foreseeable  job  losses  in  the sector due to shutting down of small companies; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

- (a) & (b): The mandate of this Ministry is promotion and development of micro, small and medium enterprises all over the country, including in the State of Tamil Nadu.  The Ministry  of  MSME  implements  various  schemes  and  programmes  for  growth  and development of MSME Sector. 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 Up gradation Scheme (CLCS-TUS), etc.
- (c): No separate data for MSME companies is available. However, as per information provided by Ministry of Corporate Affairs, during the period from March, 2020 to May, 2021, a total of 64 corporate persons were dissolved through liquidation process and 103 corporate persons were dissolved through voluntary liquidation process under Insolvency and Bankruptcy Code, 2016 (the Code). State-wise details are presented in Annexure I.

(d): No separate data for MSME companies is available. However, as per information provided by Ministry of Corporate Affairs, during the period from March, 2020 to May, 2021, 694 companies were admitted into the corporate insolvency resolution process under the Code. Of these, 271 were initiated by financial creditors, 396 by operational creditors and 27 by the corporate debtor themselves. State-wise details are presented in Annexure II.

(e) & (f): The  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.
- ii. Rs.  3  lakh  crores  Collateral  free  Automatic  Loans  for  business,  including MSMEs.
- iii. Rs. 50,000 crore equity infusion through MSME Fund of Funds.
- iv. New revised criteria  for  classification  of  MSMEs.  Retail  and  wholesale  trades are also included under MSMEs.
- v. New Registration  of  MSMEs  through  'Udyam  Registration'  for  Ease  of  Doing Business.
- vi. No global tenders for procurement up to Rs. 200 crores.

********

Annexure referred to reply to part (c) of Lok Sabha Unstarred Question No. 1611 for answer on 29.07.2021

## State-wise details of corporate persons dissolved during the period from March, 2020 to May, 2021

| State          |   Liquidation |   Voluntary Liquidation |
|----------------|---------------|-------------------------|
| Andhra Pradesh |             3 |                       0 |
| Delhi          |            13 |                      21 |
| Gujarat        |            14 |                      17 |
| Haryana        |             1 |                       0 |
| Karnataka      |            16 |                      21 |
| Kerala         |             0 |                       1 |
| Madhya Pradesh |             1 |                       5 |
| Maharashtra    |             4 |                      16 |
| Rajasthan      |             0 |                       1 |
| Punjab         |             1 |                       0 |
| Tamil Nadu     |             2 |                       7 |
| Telangana      |             4 |                       7 |
| Uttar Pradesh  |             0 |                       3 |
| West Bengal    |             5 |                       4 |
| Total          |            64 |                     103 |

Annexure referred to reply to part (d) of Lok Sabha Unstarred Question No. 1611 for answer on 29.07.2021

## State-wise details of admission into corporate insolvency resolution process during the period from March, 2020 to May, 2021

| State/UT                                 | Triggered by   | Triggered by   | Triggered by   | Total   |
|------------------------------------------|----------------|----------------|----------------|---------|
|                                          | CD             | FC             | OC             |         |
| Andhra Pradesh                           | 0              | 6              | 7              | 13      |
| Assam                                    | 0              | 2              | 1              | 3       |
| Bihar                                    | 0              | 1              | 2              | 3       |
| Chandigarh                               | 0              | 0              | 1              | 1       |
| Chattisgarh                              | 0              | 0              | 1              | 1       |
| Dadra and Nagar Haveli and Daman and Diu | 0              | 1              | 2              | 3       |
| Delhi                                    | 2              | 46             | 99             | 147     |
| Goa                                      | 0              | 1              | 2              | 3       |
| Gujarat                                  | 4              | 45             | 89             | 138     |
| Haryana                                  | 2              | 2              | 6              | 10      |
| Jammu &Kashmir                           | 0              | 1              | 0              | 1       |
| Jharkhand                                | 0              | 0              | 1              | 1       |
| Karnataka                                | 6              | 13             | 14             | 33      |
| Kerala                                   | 1              | 7              | 9              | 17      |
| Madhya Pradesh                           | 1              | 15             | 19             | 35      |
| Maharashtra                              | 4              | 55             | 53             | 112     |
| Orissa                                   | 0              | 1              | 0              | 1       |
| Puducherry                               | 0              | 1              | 2              | 3       |
| Punjab                                   | 0              | 2              | 3              | 5       |
| Rajasthan                                | 2              | 3              | 7              | 12      |
| Tamil Nadu                               | 1              | 16             | 41             | 58      |
| Telangana                                | 1              | 28             | 17             | 46      |
| Uttar Pradesh                            | 0              | 6              | 5              | 11      |
| Uttarakhand                              | 0              | 1              | 2              | 3       |
| West Bengal                              | 3              | 18             | 13             | 34      |
| Total                                    | 27             | 271            | 396            | 694     |