Lok Sabha Question No. 915 (UNSTARRED), answered on 2021-12-02
Subject: Promotion of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Anurag Sharma, Rebati Tripura

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION NO. 915 TO BE ANSWERED ON: 02.12.2021

## PROMOTION OF MSMEs

## 915. SHRI ANURAG SHARMA: SHRI REBATI TRIPURA:

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

- (a) whether the Government proposes to provide financial incentives for Start-Up companies in the country;
- (b) if so, the details thereof;
- (c) whether  the  Small  Industries  Development  Bank  of  India  (SIDBI)  has  entered  into  a collaboration  recently  with  Google  for  having  a  social  impact  lending  programme  to  promote, finance and develop Micro, Small and Medium Enterprises (MSMEs), if so, the details thereof;
- (d) the details of programmes launched by SIDBI to help and  revive the MSME sector; and
- (e) the other steps taken by the Government to promote MSME sectors in the country especially in North Eastern Region and Uttar Pradesh?

## ANSWER

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

- (a) & (b): As informed by Department for Promotion of Industry & Internal Trade (DPIIT), as part  of  the  'Start-up  India'  initiatives  the  Government  has  provisioned  the  following  financial assistance and incentives for start-ups:
- i. Start-up India Seed Fund Scheme (SISFS)
- ii. Fund of Funds for Start-ups (FFS) Scheme
- iii. Ease of Procurement
- iv. Income Tax Exemption for 3 years
- v. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act
- vi. National Start-up Awards
- (c): As informed by Small Industries Development Bank of India (SIDBI), SIDBI has entered into a collaboration with Google India Private Limited (GIPL) on November 18, 2021, for having a pilot social impact lending programme with a corpus of approx. Rs. 110 crore (equivalent to USD $15 million) targeted at Micro enterprises with a turnover upto Rs.5.00 crore.
- (d): As  informed  by  SIDBI,  programmes launched  by  SIDBI  to  help  and  revive  the  MSME sector include the following:
-  Special  Liquidity  Facility  for  MSMEs:-  In  April  2020,  RBI  provided  special  refinance facilities  for  a  total  amount  of  Rs.  50,000 crore  to  NABARD, SIDBI  and  NHB to enable them to meet sectoral credit needs, of which SIDBI received Rs. 15,000 crore to continue lending to MSMEs.

In April 2021, another tranche of Rs. 15,000 crore was granted by RBI to meet the funding requirements of micro, small and medium enterprises (MSMEs) in FY 2022.

-  Initiatives  under  Direct  Finance:  -  Direct  Lending  operations  of  the  Bank  primarily focuses on ensuring uninterrupted flow of credit to MSMEs, especially to those engaged in fighting the pandemic.
-  Cluster Development: - The Bank has launched SIDBI Cluster Development Fund (SCDF) of  Rs.  6,990  crore  to  support  the  State  Governments  /  State  Government  sponsored Organizations to attend to cluster development from both soft and hard infrastructure.
-  Financing  micro-entrepreneurs:-  The  PRAYAAS  Initiative  of  the  Bank  is  aimed  to facilitate  access  to  low-cost  finance  for  micro-entrepreneurs/  micro-enterprises,  in  the 'Missing Middle Segment' by providing loans ranging from Rs. 0.50 lakh to Rs. 5.00 lakh at a cheaper rate through Partner Institutions.
-  Virtual Ecosystem:- The Udyamimitra Portal of the Bank is a universal digital platform that  aims  to  provide  end-to-end  solutions  for  not  only  credit  delivery,  but  also  a  host  of credit-plus services by way of handholding support to the MSMEs.
-  Implementing PMSVANidhi:- The Scheme was announced by Ministry of Housing and Urban Affairs, Government of India to facilitate working capital loan up to           Rs. 10,000 to provide financial aid to Street vendors during the situation of COVID-19 pandemic.
-  Digital  Lending  to  MSMEs:-  PSBLoansin59minutes  is  the  first  contactless  lending platform for MSMEs developed under consortium of PSBs led by SIDBI.
-  Swavalamban Connect Kendra (SCKs):- The Bank under its umbrella program 'Mission Swavalamban' has  initiated  setting  up  of  100  SCKs  in  100  districts  across  5  states  viz., U.P., Bihar, Jharkhand, Odisha & Telangana.
-  Swavalamban  Crisis  Responsive  Fund  (SCRF):-  The  Bank  has  set  up  SCRF  with  the support of FCDO, Govt. of United Kingdom, to support free on boarding of MSMEs on the TReDS platform.
- (e): The Ministry of MSME implements various schemes and programmes for the growth and development of MSME Sector in the country including North Eastern Region and Uttar Pradesh. 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), Credit Guarantee Scheme for Micro  and  Small  Enterprises,  Micro  and  Small  Enterprises  Cluster  Development  Programme (MSE-CDP), Promotion of MSMEs in North Eastern Region and Sikkim.

Post  Covid-19,  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.
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 (Self Reliant India Fund).
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.

An  online  Portal  'Champions'  has  been  launched  on  01.06.2020  by  Hon'ble  Prime Minister.

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