Lok Sabha Question No. 1779 (UNSTARRED), answered on 2021-02-11
Subject: Benefits from MSME Schemes
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sanjay Kumar Bandi

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

## LOK SABHA UNSTARRED QUESTION NO. 1779 TO BE ANSWERED ON 11.02.2021

## BENEFITS FROM MSME SCHEMES

## 1779. SHRI BANDI SANJAY KUMAR:

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

- (a) the  number  of  beneficiaries  from  Telangana  State  benefitted  from  various  schemes under the Ministry during the last three years;
- (b) the details of self employment generated under the Ministry in the State during the above period;
- (c) the  details  of  subsidy  released  so  far  by  the  Ministry  to  various  MSME  units  in Telangana State;
- (d) the impact of lockdown on MSME sector in the said State and unemployment caused due to lockdown in MSME sector particularly in Telangana State?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

- (a): Ministry  is  implementing  the  following  schemes  across  the  country  for  benefit  of MSME sector including Telangana:
- i. Prime  Minister's  Employment  Generation  Programme  (PMEGP)  is  a  major  creditlinked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and rural/urban unemployed youth.
- ii. Ministry is  implementing Scheme of Fund for  Regeneration of Traditional  Industries (SFURTI)  to  organize  traditional  industries  and  artisans  into  clusters  to  make  their products competitive and provide the artisans with sustainable employment.
- iii. Ministry is implementing Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) to create Common Facility Centres, Infrastructure Development and Flatted Factory Complexes by organizing 20 or more industries of similar value chain into clusters.
- iv. Ministry  is  implementing  Gramodyog  Vikas  Yojana  (GVY)  which  has  components such as Honey Mission and Kumbhar Sashktikaran Programme (KSP) to uplift the lives of beekeepers and rural potters respectively by providing them with bee boxes, electric wheels, toolkits and training.
- v. Under  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  (CGTMSE), collateral free credit facility (term loan and/or working capital) is extended by lending institutions  to  new  and existing  micro  and  small  enterprises,  including  retail  activity. The guarantee cover provided under CGTMSE extends from 50% to 85% for credit up to Rs. 2 crore.

- vi. Under Credit linked Capital Subsidy Scheme (CLCSS), 15% up front capital subsidy is provided on institutional credit up to Rs. 1 cr for technology upgradation/induction in identified sectors.
- vii. International Cooperation (IC) Scheme facilitates Indian MSMEs for their participation in international exhibitions, trade fairs, buyer seller meets, etc.

The number of beneficiaries from Telangana State benefitted from the above schemes of the Ministry during the last three years are as under:

| Year    |   PMEGP (No. of Units assisted) | SFURTI (No. of Artisans assisted)   | MSE-CDP (No. of clusters set up)   | Honey Mission   |   KSP |   CGTMSE (No. of Guarantees) |   CLCSS (No. of Units assisted) |   IC (No. of MSMEs assisted) |
|---------|---------------------------------|-------------------------------------|------------------------------------|-----------------|-------|------------------------------|---------------------------------|------------------------------|
| 2017-18 |                            1190 | 600                                 | -                                  | -               |    40 |                         6343 |                              91 |                           53 |
| 2018-19 |                            2051 | -                                   | -                                  | 175             |   200 |                        17037 |                             176 |                           71 |
| 2019-20 |                            2174 | 4395                                | 1                                  | 30              |   100 |                        39162 |                             179 |                           15 |

## (b): Under PMEGP scheme, Self- employment generated through setting up of micro units in the State of Telangana during the last three years is as under:

| Year    |   Self- Employment Generated |
|---------|------------------------------|
| 2017-18 |                         1190 |
| 2018-19 |                         2051 |
| 2019-20 |                         2174 |

## (c): The  details  of  subsidy  released  under  PMEGP  and  CLCSS  scheme  in  the  State  of Telangana is as under:

|         | PMEGP                      | CLCSS                      |
|---------|----------------------------|----------------------------|
| Year    | Subsidy Released (in Lakh) | Subsidy Released (in Lakh) |
| 2017-18 | 4030.21                    | 735.17                     |
| 2018-19 | 7180.89                    | 1656.61                    |
| 2019-20 | 7137.38                    | 1772.12                    |

(d): Studies have been conducted by National Small Industries Corporation (NSIC) and Khadi and Village Corporation (KVIC) to assess the impact of COVID-19 pandemic on MSMEs including  units  setup  under  the  Prime  Minister  employment  Generation  program (PMEGP).

- A. The  main  findings  of  the  online  study  conducted  by  NSIC  to  understand  the operational capabilities and difficulties faced by beneficiaries of NSIC schemes amid Covid19 Pandemic are as follows:
- i. 91% MSMEs were found to be functional.
- ii. Five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labouor (9% Units), Logistics (12% units), Raw Material (8 % units).
- B. The findings of the study conducted by KVIC are as under:
- i. 88%  of  the  beneficiaries  of  PMEGP  scheme  reported  that  they  were  negatively affected due to Covid-19 while the remaining 12% stated that they were benefitted due to Covid-19.
- ii. Among the 88% who were affected, 57% stated that their units were shut down for some time during this period, while 30% reported drop in production and revenue.
- iii. Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sector and around 25% stated that their units benefitted as they were dealing with essential commodities or services.
- iv. On the  question  of  regular  payment  of  salaries  to  the  employees,  around  46.60% respondents stated that they had paid the salaries in full, 42.54% reported to have partially paid and 10.86% reported to have not paid salary for some time during this period.
- v. Majority  of  the  beneficiaries  expressed  the  need  for  additional  financial  support, relaxation of waiver of interest and marketing support for their products.

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