Lok Sabha Question No. 584 (UNSTARRED), answered on 2021-07-22
Subject: MSME Severely Affected in Covid
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ganesan Selvam

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO.584 TO BE ANSWERED ON 22.07.2021

## MSME Severely Affected in Covid

## 584. SHRI SELVAM G:

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

- (a) whether setting up of new units of the Micro, Small and Medium Enterprises (MSMEs) has been severely affected due to second wave of COVID-19 pandemic and if so, the details thereof and the remedial measures taken in this regard;
- (b) whether the Government is planning to simplify the process for registration of MSMEs and if so, the details thereof;
- (c) the details of the funds allocated/released by the Government for setting up of new units of MSMEs after the spread of COVID-19 pandemic and the number of jobs generated therefrom including in backward and rural areas of the country;
- (d) whether  the  Government  has  received  proposals  for  setting  up  new  MSMEs from the State of Karnataka, Maharashtra and Tamil Nadu after the spread of COVID19 pandemic;
- (e) if  so,  the  details  and  status  thereof  along  with  the  time  by  which  the  said proposals are likely to be approved; and
- (f) the other steps taken/proposed to be taken by the Government for setting up of MSMEs for rural women of SC/ST living below the poverty line in the country?

## ANSWER

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

- (a)  & (b): The  Government  of  India  simplified  the  process  of  registration  of MSMEs  by  replacing  the  Udyog  Aadhaar  Memorandum  (UAM)  with  Udyam Registration (UR) on 1 st July 2020.  UR is free of cost, transparent, online, hassle free and  is  based  on  self-declaration.  It  does  not  require  any  documents  and  has  an automatic  integration  with  ITR  and  GSTIN.  During  the  second  wave  of  Covid  -19 pandemic MSMEs continued to register on UR Portal.
- (c):     MSMEs  can avail the benefits of schemes such as Prime Minister's Employment Generation Programme (PMEGP)/Rural Employment Generation Programme (REGP)/Micro Units Development & Refinance Agency (MUDRA) and the announcements made to provide relief to MSMEs from the problems faced due to COVID-19  pandemic.  The  number  of  Projects  and  Employment  generation  under PMEGP during 2020-21 in July, 2021 are 91,054 and 7,28,432,  respectively.

(d) & (e): The Ministry of Micro, Small and Medium Enterprises (MSME) does not set-up any MSME in any state including Karnataka, Maharashtra and Tamil Nadu. The MSME sector consists of private players and the investments in this sector are made by the entrepreneurs themselves. Promotion and development of enterprises is a State  subject.  However,  the  Central  Government  supplements  the  efforts  of  the State/UT  Governments  through  various  schemes,  programmes  and  policy  initiatives for  promotion,  development  and  enhancing  the  competitiveness  of  MSMEs  in  the country.

(f): A number of schemes are being implemented by Ministry of MSME for MSMEs, including Prime Minister's Employment Generation Programme (PMEGP),   Credit  Linked  Capital  Subsidy  for  Technology  Upgradation  Scheme (CLCS-TUS),  Schemes  for  Khadi  &  Village  Industries  and  Coir,  International Cooperation  Scheme,  Procurement  and  Marketing  Support  Scheme, Scheme  for Credit  Guarantee  Fund  for  Micro  and  Small  Enterprises,  National  SC/ST  Hub  etc. Benefits  under  these  schemes  are  available  to  all  eligible  MSMEs,  including  those belonging to SC and ST communities. The Public Procurement Policy for Micro and Small Enterprises Order 2012 mandates 4% procurement from SC/ST owned MSEs and 3% from women owned MSEs.

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