Lok Sabha Question No. 3097 (UNSTARRED), answered on 2023-12-21
Subject: Credit Guarantee Scheme for MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Ratansinh Magansinh Rathod

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

## LOK SABHA UNSTARRED QUESTION NO. 3097 TO BE ANSWERED ON 21.12.2023

## CREDIT GUARANTEE SCHEME FOR MSMEs

## 3097.       SHRI  RATANSINH MAGANSINH RATHOD:

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

- (a) the initiatives taken by the Government to facilitate access to credit to MSMEs in the country; and
- (b) the  key  statistics  regarding  the  performance  of  'Prime  Minister's  Employment  Generation Programme" and "Credit Guarantee Scheme" during the last five years and the current year?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

- (a): The Government has taken various measures including ongoing schemes to facilitate access to credit to MSMEs in the country. Some of these include the following:
-  Prime Minister's Employment Generation Programme (PMEGP) which is a major credit-linked subsidy programme aimed at generating self-employment;
-  Pradhan  Mantri  Mudra  Yojna  (PMMY)  for  providing  loans  up  to  Rs.  10  lakh  to  the  noncorporate, non-farm small/micro enterprises;
-  PM Vishwakarma Scheme: A Central Sector Scheme with budget outlay of Rs. 13,000 crore for its  implementation during the period of 2023-24 to 2027-28. The scheme envisages to provide end-to-end holistic support including credit support, to artisans and craftspeople who work with their hands, using tools, in the 18 trades covered.
-  Strengthen  credit  delivery  system  and  to  facilitate  the  flow  of  credit  to  the  Micro  and  Small Enterprise sector without the hassles of collateral and third party guarantee up to a maximum of Rs. 5 crore through Credit Guarantee Scheme for Micro and Small Enterprises;
-  Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit of MSME for availing the benefits under Priority Sector Lending;
-  Inclusion of Retail and Wholesale traders as MSMEs for the purpose of availing Priority Sector Lending benefits, w.e.f. 02.07. 2021;

-  Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs;
-  Trade Receivable Discounting System (TReDS) to facilitate the financing of trade receivables of MSMEs from corporate and other buyers including government departments and public-sector undertakings (PSUs) through multiple financiers electronically:
-  Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund;
-  Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), for businesses, including MSMEs was announced during the COVID-19 pandemic to fulfil the credit gap in MSMEs. The scheme was operational till 31.03.2023.

## (b): The key statistics on the  performance of Prime  Minister's Employment  Generation Programme (PMEGP) and Credit Guarantee Scheme for Micro and Small Enterprises during the last five years and the current year are given below:

| F.Y.                    | Units assisted   | Estimated Employment Generated   |
|-------------------------|------------------|----------------------------------|
| 2018-19                 | 73,427           | 5,87,416                         |
| 2019-20                 | 66,653           | 5,33,224                         |
| 2020-21                 | 74,415           | 5,95,320                         |
| 2021-22                 | 1,03,219         | 8,25,752                         |
| 2022-23                 | 85,167           | 6,81,336                         |
| 2023-24 till 30.11.2023 | 46,869           | 3,74,952                         |

The details of the guarantees approved under Credit Guarantee Scheme for Micro and Small during the last five years and current year are given below:

| Guarantees approved under Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantees approved under Credit Guarantee Scheme for Micro and Small Enterprises   | Guarantees approved under Credit Guarantee Scheme for Micro and Small Enterprises   |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
| F.Y.                                                                                | Number                                                                              | Amt. (₹ Crore)                                                                      |
| 2018-19                                                                             | 4,35,520                                                                            | 30,169                                                                              |
| 2019-20                                                                             | 8,46,650                                                                            | 45,851                                                                              |
| 2020-21                                                                             | 8,35,592                                                                            | 36,899                                                                              |
| 2021-22                                                                             | 7,17,020                                                                            | 56,172                                                                              |
| 2022-23                                                                             | 11,65,786                                                                           | 1,04,781                                                                            |
| 2023-24 till 30.11.2023                                                             | 9,28,214                                                                            | 1,13,923                                                                            |