Lok Sabha Question No. 1771 (UNSTARRED), answered on 2024-08-01
Subject: Financial Assistance to MSME Traders
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Ajay Kumar Mandal

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

## LOK SABHA UNSTARRED QUESTION NO. 1771

TO BE ANSWERED ON 01.08.2024

## FINANCIAL ASSISTANCE TO MSME TRADERS

1771.                   SHRI AJAY KUMAR MANDAL:

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

- (a) whether the Government has decided to provide financial assistance to MSME traders in the country, particularly in Bihar under its various schemes and if so, the details thereof;
- (b) the details of various scheme being implemented in Bihar; and
- (c) the quantum of funds released under each Programme?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): From  2 nd July  2021,  the  Retail  and  Wholesale  traders  have  been  included  as  MSME  for availing  the  benefit  of  Priority  Sector  Lending  (PSL)  in  the  country,  including  the  State  of  Bihar. These loans are extended by various banks and as per the RBI data, the credit outstanding to MSME sector in Bihar, for last 3 years by Scheduled Commercial Bank is as given below:
* Data for FY 2023-24 is provisional

| Credit Outstanding to MSMESector in Bihar by Scheduled Commercial Bank (No. of A/c in lakh, Amt. O/s in Rs. crore)   | Credit Outstanding to MSMESector in Bihar by Scheduled Commercial Bank (No. of A/c in lakh, Amt. O/s in Rs. crore)   | Credit Outstanding to MSMESector in Bihar by Scheduled Commercial Bank (No. of A/c in lakh, Amt. O/s in Rs. crore)   | Credit Outstanding to MSMESector in Bihar by Scheduled Commercial Bank (No. of A/c in lakh, Amt. O/s in Rs. crore)   |
|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| Sl. No.                                                                                                              | FY                                                                                                                   | No. of A/cs                                                                                                          | Amt O/s                                                                                                              |
| 1                                                                                                                    | 2023-24*                                                                                                             | 12.35                                                                                                                | 51766.42                                                                                                             |
| 2                                                                                                                    | 2022-23                                                                                                              | 8.80                                                                                                                 | 40029.60                                                                                                             |
| 3                                                                                                                    | 2021-22                                                                                                              | 10.62                                                                                                                | 34002.47                                                                                                             |

Source: Priority Sector Returns submitted by SCBs

Under Credit Guarantee Scheme for Micro and Small Enterprises, Credit Guarantee Fund Trust for Micro and Small Enterprises provides guarantee to its Member Lending Institutions (MLIs), for the credit extended by them to Micro and Small Enterprises. Since inception of the scheme till 31.03.2024, a total of 32,02,267 guarantees were extended to traders for an amount of Rs. 1,33,489 crore in the country. Out of this, 1,23,659 guarantees were extended to traders in Bihar for an amount of Rs. 7,397 crore.

(b) and (c): The  Ministry  of  MSME  implements  various  schemes/programmes  for  the  promotion and  development  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  sector  across  the  country, including  in  the  State  of  Bihar,  which  inter  alia  include  Prime  Minister's  Employment  Generation Programme (PMEGP), Self Reliant  India  (SRI)  Fund,  PM  Vishwakarma  Scheme,  Entrepreneurship Skill Development Programme (ESDP), Procurement and Marketing Support Scheme (PMSS), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), MSME Champions Scheme etc.

Further, under Prime Minister's Employment Generation Programme, credit linked subsidy for setting up new micro-enterprise in non-farm sector is provided. Margin Money subsidy ranging from 15% to 35% of project cost, for projects up to Rs. 50 lakh in Manufacturing sector and Rs. 20 lakh in the  Service sector, is provided.  For beneficiaries belonging to Special categories, including women, the margin money subsidy is 35% in rural areas and 25% in urban areas.

Rs.  50,000  crore  equity  infusion  through  Self  Reliant  India  (SRI)  Fund.  This  scheme  has  a provision of Rs. 10,000 crore from Government of India and Rs. 40,000 crore leverage through Private Equity / Venture Capital funds. This initiative is aimed at providing growth capital to the deserving and eligible units of MSME sector. As on 30.06.2024, 53 Daughter Funds have been empanelled and by way of investing of Rs. 8,353 crore, 450 MSMEs have been assisted.

The quantum of expenditure of funds under the major schemes for Financial Year 2023-24 is as given below:-

| Expenditure (Rs. In crore)   | Expenditure (Rs. In crore)                                          | Expenditure (Rs. In crore)   |
|------------------------------|---------------------------------------------------------------------|------------------------------|
| S. No.                       | Name of Scheme                                                      | Financial Year 2023-24       |
| 1                            | Prime Minister's Employment Generation Programme (PMEGP)            | 3,016.18                     |
| 2                            | Self Reliant India (SRI) Fund                                       | 579.45                       |
| 3                            | PM Vishwakarma                                                      | 745.92                       |
| 4                            | Entrepreneurship Skill Development Programme (ESDP)                 | 62.84                        |
| 5                            | Procurement and Marketing Support Scheme (PMSS)                     | 68.70                        |
| 6                            | Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) | 178.66                       |
| 7                            | MSME Champions Scheme                                               | 88.77                        |

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