Lok Sabha Question No. 328 (STARRED), answered on 2023-03-23
Subject: Rise in Prices of Raw Materials
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Y. S. Avinash Reddy

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

## LOK SABHA STARRED QUESTION NO. *328 TO BE ANSWERED ON: 23.03.2023

## RISE IN PRICES OF RAW MATERIALS

| *328.                                                                                     | SHRI Y.S. AVINASH REDDY:                                                                  |
|-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|
| Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:             | Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:             |
| (a)                                                                                       | whether the Micro, Small and Medium Enterprises (MSMEs) are badly hit by the rise         |
| the prices of raw materials and the same is affecting the livelihood of lakhs of workers; | the prices of raw materials and the same is affecting the livelihood of lakhs of workers; |
| (b)                                                                                       | if so, the details thereof; and                                                           |
| (c)                                                                                       | the steps taken by the Government to address various issues/problems being faced by       |
| MSMEs sector in the country, particularly in the State of Andhra Pradesh?                 | MSMEs sector in the country, particularly in the State of Andhra Pradesh?                 |
| ANSWER                                                                                    | ANSWER                                                                                    |
| MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES                                           | MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES                                           |
| (SHRI NARAYAN RANE)                                                                       | (SHRI NARAYAN RANE)                                                                       |
| (a) to (c): A statement is laid on the Table of the House.                                | (a) to (c): A statement is laid on the Table of the House.                                |

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE LOK SABHA STARRED QUESTION NO. *328 FOR ANSWER ON 23.03.2023.

(a) to (c): The National Small Industries Corporation Limited (NSIC), a Public Sector Undertaking under the Ministry of Micro, Small and Medium Enterprises (MSME) under its Raw Material  Assistance  (RMA)  Scheme,  facilitates  MSMEs  to  meet  their  raw  material requirement by making arrangements with bulk manufacturers for procuring the materials and  supplying  the  same  to  MSMEs.  NSIC  also  provides  financial  assistance  to  MSMEs under this scheme against bank guarantee for payment to the suppliers.

The Government has taken several measures to increase availability of iron ore and steel and make them available at reasonable prices which includes:

- (i) Policy intervention through calibration of import and export duties on iron ore, pellets, coking coal, iron & steel products between May-November 2022;
- (ii) Reduction  of  Basic  Customs  Duty  uniformly  to  7.5%  on  semis,  flat  and  long products on non-alloy, alloy, and stainless steels vide Union Budget 2021-22;
- (iii) Exemption of Basic Customs Duty (BCD) on streel scrap and Ferro-Nickel upto 31.03.2024;
- (iv) Mining and Mineral policy reforms to enhance production and supply of mineral;
- (v) Notification on steel scrap recycling policy to enhance availability of domestically generated scrap;
- (vi) To  give  relief  to  secondary  and  MSME  sector  steel  industry  engaged  in Housing/Construction sector, TMT bars below 8 mm have been exempted from the  purview  of  the  Quality  Control  Order,  as  these  are  primarily  used  for noncritical applications.

Further, the Government has taken several steps to address various issues/problems in the country which include:

- (i) Rs.  5  lakh  crore  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for business, including MSMEs;
- (ii) Rs. 50,000 crore equity infusion through Self Reliant India Fund;
- (iii) New revised criteria for classification of MSMEs;
- (iv) No global tenders for procurement up to Rs. 200 crores;
- (v) 'Udyam Registration' for MSMEs, for Ease of Doing Business;
- (vi) Launching of an online Portal 'Champions' in June, 2020 to cover many aspects of e-governance including redressing grievances and handholding of MSMEs;
- (vii) Inclusion of Retail and Wholesale traders as MSMEs as well as street vendors for availing the Priority Sector Lending;
- (viii) Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs;
- (ix) Launch of Udyam Assist Platform (UAP) on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).

: 2 :

The details  of  assistance  provided  under  ECLGS  and  RMA  Scheme  in  the  State  of Andhra Pradesh during last three years are as under:

## Emergency Credit Line Guarantee Scheme (ECLGS)

| Year                       |   No. of Guarantees issued |   Amount Guaranteed (Rs, in crore) |
|----------------------------|----------------------------|------------------------------------|
| 2020-21                    |                     199336 |                            6088.04 |
| 2021-22                    |                      36815 |                            2546.48 |
| 2022-23 (as on 31.01.2023) |                       2684 |                             597.18 |

## Raw Material Assistance (RMA)

| Year    | Credit Support extended   | Raw Material Distribution   | Raw Material Distribution   |
|---------|---------------------------|-----------------------------|-----------------------------|
|         | Amount (Rs. in crore)     | Quantity (in MTs)           | Value (in lakh)             |
| 2019-20 | 193                       | 592                         | 384                         |
| 2020-21 | 145                       | 535                         | 324                         |
| 2021-22 | 218                       | 335                         | 152                         |

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