Lok Sabha Question No. 3104 (UNSTARRED), answered on 2022-08-04
Subject: Aatmanirbhar Package
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Pocha Brahmananda Reddy

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

## LOK SABHA UNSTARRED QUESTION NO. 3104 TO BE ANSWERED ON 04.08.2022

## AATMANIRBHAR PACKAGE

## 3104. SHRI POCHA BRAHMANANDA REDDY:

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

- (a) the status of Rs. 20,000 crore subordinate debt given for  MSMEs  under Aatmanirbhar Package;
- (b) the details of credit guarantee provided to MSMEs out of Rs. 5 lakh crores proposed, including  the  announcement   made  in  2022-23  budget  till  date,  in  particular  for  MSME units in Andhra Pradesh;
- (c) the details of equity infused so far under Self -Reliant India Fund for MSMEs; and
- (d) the details of improvement in the status of MSMEs after above steps taken by the Government?

## ANSWER

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

- (a): The Credit Guarantee Scheme for Subordinate debt (CGSSD) was announced as a part  of  Aatma  Nirbhar  Bharat  Package.  The  scheme  is  valid  upto  31.03.2023.  Till 26.07.2022, 782 No. of  guarantees amounting to Rs. 90.47 crore have been extended.
- (b): As informed by Department of Financial Services, as on 30 th June 2022, the number of  beneficiaries  under  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  were  around 1.19  crore  businesses  (including  1.13  crore  MSMEs)  and  collateral  free  loans  sanctioned amounting  to  Rs.  3.48  lakh  crore  (including  Rs.  2.32  lakh  crore  to  MSMEs),  and  Rs. 8983.62  crore  guarantees  have  been  extended  to  2.37  lakh  number  of  beneficiaries  in Andhra Pradesh.

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.

(c): Under Self Reliant India (SRI) Fund till 30 th June, 2022, Rs 1,571.55 Crore have been invested in MSMEs across the country.

(d): A study conducted by Small Industries Development Bank of India (SIDBI) reveals that around 65 percent of the MSMEs surveyed, have availed the benefits under 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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