Lok Sabha Question No. 513 (UNSTARRED), answered on 2024-07-25
Subject: Delayed Payments to MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Manish Tewari

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

## LOK SABHA UNSTARRED QUESTION NO. 513 TO BE ANSWERED ON 25.07.2024

## DELAYED PAYMENTS TO MSMEs

513.    SHRI MANISH TEWARI:

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

- (a) the  number  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  that  have  shut  down operations in the last fiscal year due to financial distress;
- (b) whether it is a fact that delayed payments to MSMEs have been increasing during the last five years and the current year and if so, the reasons thereof and if not, the percentage of delayed payments to MSMEs after award by MSME Council;
- (c) the total amount of credit extended to MSMEs under various Government schemes during the last five years and the current year; and
- (d) the percentage of MSMEs that have successfully transitioned to digital platforms for business operations?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

- (a): An enterprise can opt to cancel its registration, if it no longer requires the Udyam certificate. Deregistration on Udyam Portal may be done by an enterprise due to a number of reasons, like change in the company owner, certificate not required anymore, duplicate registration and other such reasons. During the FY 2023-24, 19,828 enterprises have shown the reason for cancellation as shutting down of business. During the same period, the number of registrations were 96,06,615 on Udyam. Accordingly, the percentage of cancellation of enterprises vis a vis the registered enterprises is 0.21%.
- (b): As  per  the  information  available  on  the  SAMADHAAN  Portal,  since  FY  2019-2020  on  till 22.07.2024, the pending amount is Rs. 20,800.99 crore. The details are as follows:

| Table 1: Details of pending amount of last five years and the current year on SAMADHAAN Portal   | Table 1: Details of pending amount of last five years and the current year on SAMADHAAN Portal   |
|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| Year                                                                                             | Pending Amount(Application+ Cases) (Rs. Crore)                                                   |
| 2019-2020                                                                                        | 1,931.03                                                                                         |
| 2020-2021                                                                                        | 3,562.74                                                                                         |
| 2021-2022                                                                                        | 3,681.18                                                                                         |
| 2022-2023                                                                                        | 3,746.11                                                                                         |
| 2023-2024                                                                                        | 5,335.20                                                                                         |
| 01.04.2024-22.07.2024                                                                            | 2,544.73                                                                                         |
| Total                                                                                            | 20,800.99                                                                                        |

The time taken to review the applications and decide on the resolution of the dispute varies from case to case and across Micro and Small Enterprise Facilitation Councils.

- (c): The details of credit extended by Government to MSMEs are given below:
-  Under  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises,  guarantee  coverage  is provided  to  loans  up  to  a  limit  of  Rs.  500  lakh  (w.e.f.  01.04.2023)  to  Micro  and  Small Enterprises. The details of credit under the Scheme in the last five years and the current year are as follows:
-  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 the project cost is provided. The details under PMEGP for the last five year are as follows:
- (d): Government e-Marketplace (GeM) is one of the digital platforms facilitating Public Procurement related transactions of MSME with government and cooperative buyers. As on 31 st March, 2024, around 35%  of  2.48  crore  MSMEs  registered  on  Udyam  portal,  have  consented  for  onboarding  on  GeM platform. As informed by GeM, on 31 st March, 2024, 9,00,345 MSMEs were registered as sellers with completed profiles on the GeM portal.

| Table 2: Details of credit extended to MSMEs under Credit Guarantee Scheme for Micro and Small Enterprises   | Table 2: Details of credit extended to MSMEs under Credit Guarantee Scheme for Micro and Small Enterprises   | Table 2: Details of credit extended to MSMEs under Credit Guarantee Scheme for Micro and Small Enterprises   | Table 2: Details of credit extended to MSMEs under Credit Guarantee Scheme for Micro and Small Enterprises   | Table 2: Details of credit extended to MSMEs under Credit Guarantee Scheme for Micro and Small Enterprises   | Table 2: Details of credit extended to MSMEs under Credit Guarantee Scheme for Micro and Small Enterprises   |
|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| FY 2019-20                                                                                                   | FY 2020-21                                                                                                   | FY 2021-22                                                                                                   | FY 2022-23                                                                                                   | FY 2023-24                                                                                                   | FY 2024-25 (upto 30.06.2024)                                                                                 |
| Amt.                                                                                                         | Amt.                                                                                                         | Amt.                                                                                                         | Amt.                                                                                                         | Amt.                                                                                                         | Amt.                                                                                                         |
| 45,851                                                                                                       | 36,899                                                                                                       | 56,172                                                                                                       | 1,04,781                                                                                                     | 2,02,807                                                                                                     | 48,963                                                                                                       |

| Table 3: Details under PMEGP for the last five years   | Table 3: Details under PMEGP for the last five years   |
|--------------------------------------------------------|--------------------------------------------------------|
| Year                                                   | MMSubsidy (Rs. Cr)                                     |
| FY2019-20                                              | 1,950.82                                               |
| FY2020-21                                              | 2,188.80                                               |
| FY2021-22                                              | 2,977.66                                               |
| FY2022-23                                              | 2,722.17                                               |
| FY2023-24                                              | 3,093.88                                               |
| FY2024-25*                                             | 299.25                                                 |

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