Lok Sabha Question No. 45 (STARRED), answered on 2021-07-22
Subject: Impact of Pandemic on MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Pratima Mondal

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA STARRED QUESTION No.  *45

## TO BE ANSWERED ON 22.07.2021

## Impact of Pandemic on MSME Sector

## *45. SHRIMATI PRATIMA MONDAL:

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

- (a) the steps taken by the Government to overcome the  distress  caused  to  the people  engaged  in  MSME sector by the second wave of the Covid-19 pandemic;
- (b) the  details  of  MSME  organisations  that  had  to  be  shut  down  due  to  the pandemic, State-wise; and
- (c) the  quantum  of  loss  suffered  by  the  MSME sector due to the pandemic?

## ANSWER

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

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) to (c) OF THE LOK SABHA STARRED QUESTION No. *45 FOR ANSWER ON 22.07.2021

- (a):  Government has taken several measures to support MSMEs which are affected by Covid-19. Some of the initiatives taken by Government to support MSMEs affected by Covid-19 are:
- i. The  validity  of  Udyog  Aadhar  Memorandum  (UAM)  is  extended  upto 31.12.2021 vide notification no. S.O. 2347(E) dated 16.06.2021.
- ii. On 02.07.2021, the Government has included Retail and whole sale trades as MSMEs and they are allowed to be registered on Udyam Registration Portal. This will help more MSMEs to take benefits of Priority Sector Lending.
- iii. RBI has taken several measures for helping MSMEs. To facilitate restructuring of  loan  accounts  of  MSMEs  having  aggregate  exposure  up  to  Rs.  25  crore, RBI -
- i. vide  circular  dated  05.05.2021,  extended  it  again,  in  view  of  the resurgence of the pandemic, permitting invocation of restructuring till 30.09.2021.
- ii. vide  circular  dated  04.06.2021,  enhanced  the  aggregate  exposure eligible for restructuring to Rs. 50 crore.
- Till 25.06.2021, 13.06 lakh MSME loan accounts with an aggregate amount of Rs. 55,333 crore have been restructured by Public Sector Banks.
- iv The  Emergency  Credit  Line  Guarantee  Scheme  has  been  launched  for emergency  credit  line  of  up  to  Rs.    4.5  lakh  crore  to  businesses  including MSMEs and the same is backed by 100% Central Government guarantee. Till 02.07.2021, Rs. 2.73 lakh crore have been sanctioned under this scheme.
- (b) & (c): As per Covid-19 related guidelines issued by Government of India and State  Governments  from  time  to  time,  functioning  of  many  of  the  MSMEs  were temporarily affected.

As per  the  online  study  conducted  by  National  Small  Industries  Corporation (NSIC)  to  understand  the  operational  capabilities  and  difficulties  faced  by  the beneficiaries of NSIC schemes amid Covid-19 pandemic, five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Material (8% units).

As per a study conducted by National Institute for Micro, Small and Medium Enterprises  (NiMSME),  the  sectors  which  were  adversely  affected  during  Covid-19 include Hospitality - hotels and restaurants & Tourism - travel agents & tour guides.

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