Lok Sabha Question No. 1771 (UNSTARRED), answered on 2021-07-29
Subject: Agriculture / Rural Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ranjeeta Koli

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

## LOK SABHA UNSTARRED QUESTION NO. 1771

## TO BE ANSWERED ON 29.07.2021

## Agriculture / Rural Industries

## 1771. SHRIMATI RANJEETA KOLI:

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

- (a) whether it is fact that the Government is not aware of the number of agriculture and rural industries closed during the last three years;
- (b) if so, the reaction of the Government thereto; and
- (c) the  provisions  made  regarding  opening  and  closing  of  agriculture  and  rural industries?

## ANSWER

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

(a) to (c): Ministry is implementing Prime Minister's Employment Generation Programme (PMEGP) since 2008-09 through Khadi and Village Industries Commission (KVIC) as nodal agency at the national level for generating employment in the country by setting up micro-enterprises mainly in agro and rural sector.

Under  the  scheme,  100%  physical  verification  of  the  actual  establishment  and working status of each of the micro units, financed under PMEGP, is carried out through the  outsourced  agencies  between  24  to  36  months  after  the  establishment  of  the  units. During physical verification, around 85% of the total units have been found working.

Ministry of  MSME  through  KVIC  is  taking  following steps to encourage agriculture and rural industries to generate estimated employment opportunities for people including migrant workers:

- i. Under PMEGP, during the last three  years,  Margin Money subsidy amounting to Rs.  6209.62  crore  has  been  disbursed  for  setting  up  214495  units  generating estimated employment for 17.15 lakh persons.
- ii. In  order  to  sustain  the  units  setup  under  PMEGP,  free  hand  holding  through technical, financial and marketing experts is being provided.
- iii. Second  loan  up  to  Rs.  1.00  crore  with  subsidy  of  15%  to  20%  is  provided  to upgrade better performing PMEGP/MUDRA units.
- iv. E-commerce  portal  has  been  developed  by  KVIC,  providing  online  marketing linkages to PMEGP and other khadi and village industry products.
- v. To generate employment in agro and rural industries, 685 farmers have been trained under beekeeping/Honey Mission and about 1000 potters have been trained under Kumbhar  Shashktikaran  Programme  and  provided  with  bee  colonies  and  electric pottery wheels respectively.

In  addition,  Government has announced a comprehensive package of Rs.20 Lakh crore for all the sections of the society including Industries and MSMEs to cope up the Covid-19  pandemic  situation.  Announcements  pertaining  to  MSMEs  and  their  current status are given below:

- i. Emergency Credit Line for MSMEs: Government has operationalized Rs. 3,00,000 crore collateral free loan scheme w.e.f. 23.05.2020 which is likely to benefit 45 lakh MSMEs. As on 02.07.2021, loans for an amount of Rs. 2.73 lakh crore have been sanctioned.
- ii. Rs. 20,000 crore as Subordinate Debt for Stressed MSMEs: As on 17.07.2021, 715 guarantees have been approved amounting to Rs. 75.82 crore.
- iii. No Global tenders for government procurement up to Rs. 200 crore
- iv. Clearing of payment due to MSMEs: Government has announced that MSME dues should be cleared by the Government agencies and CPSEs within 45 days.  Since May 2020  and  up  to  26.07.2021,  pending  payments  of  Rs.  55863.30  crore  have been made to MSMEs.

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