Lok Sabha Question No. 17 (UNSTARRED), answered on 2023-07-20
Subject: Revival of Sick MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Jual Oram

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

## LOK SABHA UNSTARRED QUESTION No. 17 TO BE ANSWERED ON 20.07.2023

## REVIVAL OF SICK MSMEs

## 17. SHRI JUAL ORAM:

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

- (a) whether it is a fact that most of the Micro, Small and Medium Enterprises (MSMEs) currently have fallen sick in different States;
- (b) if so, the efforts made by the Government to revive those sick units;  and
- (c) the aid and assistance extended to each State for the purpose, State-wise?

## ANSWER

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

(a) to (c): No, the Reserve Bank of India has issued guidelines on 'Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises' to Scheduled Commercial Banks (excluding Regional Rural Banks) in March 2016. With the issuance of these Guidelines, the concept of sickness no longer exists. Under this Framework, banks have been advised to identify incipient stress in the MSME accounts and refer it to the Committees formed under the framework for Corrective Action Plan for rectification, restructuring and recovery.

The  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  was  announced  as  part  of  the Aatma  Nirbhar  Bharat  Package  in  May,  2020  to  support  eligible  MSMEs  and  other  business enterprises to meet their operational liabilities and resume businesses in view of the distress caused by  the  COVID-19  crisis.  This  scheme  covers  all  the  sectors  of  the  economy.  Under  this,  100% guarantee  is  provided  to  Member  Lending  Institutions  (MLIs)  in  respect  of  the  credit  facility extended by them to eligible borrowers. The scheme was in place till 31.03.2023. The ECLGS was implemented by Department of Financial Services (DFS), Ministry of Finance. As reported by DFS, under ECLGS as on 31.03.2023, total 1.19 crore guarantees amounting to Rs. 3.65 lakh crore have been  issued.  Out  of  the  total,  1.13  crore  Guarantees  amounting  to  Rs.  2.41  lakh  crore  have  been provided to MSMEs.  State Bank of India (SBI) came out with a research report dated 23.01.2023 on ECLGS authored by its Group Chief Economic Advisor. It has been reported that almost 14.60 lakh MSME accounts were saved due to ECLGS scheme (including restructured), of which about 98.30 % of the accounts were in Micro and Small categories, were saved. The State-wise details are given in Annexure-A.

******

## Annexure-A is referred to parts (a) to (c) of Lok Sabha unstarred Question no. 17 due for reply on 20.07.2023

| Number and amount of guarantees issued (State-wise )since inception in 2020 till 31.03.2023   | Number and amount of guarantees issued (State-wise )since inception in 2020 till 31.03.2023   | Number and amount of guarantees issued (State-wise )since inception in 2020 till 31.03.2023   | Number and amount of guarantees issued (State-wise )since inception in 2020 till 31.03.2023   |
|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
| Sl. No.                                                                                       | States/UTs                                                                                    | Guarantee Nos.                                                                                | Guarantee Amount (Cr)                                                                         |
| 1                                                                                             | Andaman &Nicobar                                                                              | 2,145                                                                                         | 156.72                                                                                        |
| 2                                                                                             | Andhra Pradesh                                                                                | 2,94,381                                                                                      | 13,158.95                                                                                     |
| 3                                                                                             | Arunachal Pradesh                                                                             | 2,433                                                                                         | 160.06                                                                                        |
| 4                                                                                             | Assam                                                                                         | 5,54,555                                                                                      | 3821.8                                                                                        |
| 5                                                                                             | Bihar                                                                                         | 8,31,699                                                                                      | 5,195.18                                                                                      |
| 6                                                                                             | Chandigarh                                                                                    | 7,317                                                                                         | 1,284.26                                                                                      |
| 7                                                                                             | Chhattisgarh                                                                                  | 2,02,503                                                                                      | 6,194.13                                                                                      |
| 8                                                                                             | Dadra &Nagar Haveli and Daman& Diu                                                            | 3395                                                                                          | 682.07                                                                                        |
| 9                                                                                             | Delhi                                                                                         | 1,07,376                                                                                      | 24,634.81                                                                                     |
| 10                                                                                            | Goa                                                                                           | 13,270                                                                                        | 1,534.6                                                                                       |
| 11                                                                                            | Gujarat                                                                                       | 3,79,634                                                                                      | 35,093.23                                                                                     |
| 12                                                                                            | Haryana                                                                                       | 2,08,501                                                                                      | 16,941.49                                                                                     |
| 13                                                                                            | Himachal Pradesh                                                                              | 52,393                                                                                        | 2,466.25                                                                                      |
| 14                                                                                            | Jammu &Kashmir                                                                                | 69,055                                                                                        | 2,480.54                                                                                      |
| 15                                                                                            | Jharkhand                                                                                     | 3,05,040                                                                                      | 4,155.85                                                                                      |
| 16                                                                                            | Karnataka                                                                                     | 8,96,098                                                                                      | 24,281.03                                                                                     |
| 17                                                                                            | Kerala                                                                                        | 5,43,936                                                                                      | 12,180.06                                                                                     |
| 18                                                                                            | Ladakh                                                                                        | 1,035                                                                                         | 54.18                                                                                         |
| 19                                                                                            | Lakshadweep                                                                                   | 375                                                                                           | 2.2                                                                                           |
| 20                                                                                            | Madhya Pradesh                                                                                | 5,74,971                                                                                      | 11,358.01                                                                                     |
| 21                                                                                            | Maharashtra                                                                                   | 10,31,944                                                                                     | 60,566.8                                                                                      |
| 22                                                                                            | Manipur                                                                                       | 10,627                                                                                        | 142.88                                                                                        |
| 23                                                                                            | Meghalaya                                                                                     | 11576                                                                                         | 241.31                                                                                        |
| 24                                                                                            | Mizoram                                                                                       | 3,902                                                                                         | 64.61                                                                                         |
| 25                                                                                            | Nagaland                                                                                      | 7,601                                                                                         | 80.77                                                                                         |
| 26                                                                                            | Odhisa                                                                                        | 9,47,421                                                                                      | 6,826.41                                                                                      |
| 27                                                                                            | Pudhucherry                                                                                   | 23,291                                                                                        | 614.24                                                                                        |
| 28                                                                                            | Punjab                                                                                        | 2,21,053                                                                                      | 11,465.04                                                                                     |
| 29                                                                                            | Rajasthan                                                                                     | 5,58,326                                                                                      | 18,043.18                                                                                     |
| 30                                                                                            | Sikkim                                                                                        | 8,413                                                                                         | 133.35                                                                                        |
| 31                                                                                            | Tamilnadu                                                                                     | 9,14,291                                                                                      | 40,432.76                                                                                     |
| 32                                                                                            | Telangana                                                                                     | 1,48,320                                                                                      | 15,438.89                                                                                     |
| 33                                                                                            | Tripura                                                                                       | 62,860                                                                                        | 296.64                                                                                        |
| 34                                                                                            | Uttar Pradesh                                                                                 | 8,29,351                                                                                      | 22,197.38                                                                                     |
| 35                                                                                            | Uttarakhand                                                                                   | 75,435                                                                                        | 3,372.5                                                                                       |
| 36                                                                                            | West Bengal                                                                                   | 20,36,567                                                                                     | 20,239.65                                                                                     |