Lok Sabha Question No. 2912 (UNSTARRED), answered on 2024-12-12
Subject: Revamp of MSMEs in Manipur
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Angomcha Bimol Akoijam

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

## LOK SABHA UNSTARRED QUESTION NO. 2912 TO BE ANSWERED ON 12.12.2024

## REVAMP OF MSMEs IN MANIPUR

## 2912. DR. ANGOMCHA BIMOL AKOIJAM:

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

- (a) whether the Government has conducted any assessment of the impact of the recent ongoing crisis in Manipur on the MSME sector, which forms a crucial part of the State's economy;
- (b) if  so,  the  details  of  the  findings,  including  the  extent  of  damage  suffered  by  MSMEs,  loss  of livelihoods, and disruptions to local businesses; and
- (c) whether  the  government  proposes  to  introduce  any  special  relief  package  or  targeted  measures  to revamp  the  MSME  sector  in  Manipur  and  if  so,  the  details  thereof  including  financial  assistance,  credit support and other initiatives to restore economic stability in the state?

## ANSWER

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

(a) to (c): To assess  the  impact  of  ongoing  issues  in  the  State  of  Manipur,  no  specific  assessment  has been conducted, so far, for the MSME Sector of Manipur. As on 10.12.2024, 1,22,323 MSMEs are registered on Udyam Registration Portal and Udyam Assist Platform.

The Government has taken up number of initiatives in the country, including North Eastern Region, for the promotion and development of MSME Sector. Some of them are as detailed below:

- i. Adopting new revised criteria for classification of MSMEs.
- ii. No global tenders for procurement up to Rs. 200 crore.
- iii. 'Udyam Registration' for MSMEs launched for Ease of Doing Business w.e.f. 1.7.2020.
- iv. Launching  of  an  online  Portal  'Champions'  in  June,  2020  to  cover  many  aspects  of  e-governance including grievance redress and handholding of MSMEs.
- v. Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 2.7. 2021.
- vi. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- vii. Launch of Udyam Assist Platform on 11.1.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefits under Priority Sector Lending.
- viii. In order to address the issue of delayed payment to MSMEs, RBI has issued guidelines for setting up and operating the Trade Receivables 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.  To  facilitate  working  capital requirement of MSMEs by converting their trade receivables into cash the Government has notified to reduce the turnover threshold of buyers for mandatory on-boarding on the TReDS platform from Rs. 500 crore to Rs. 250 crore vide notification S.O.7845(E) dated 07.11.2024.

Additionally, some of the initiatives which focus on North Eastern Region, including Manipur, are detailed below:

- i. Additional  discount  of  10%  in  Annual  Guarantee  Fees  to  units  in  North  Eastern  Region  (NER)  for loans up to Rs.50 Lakh under Credit Guarantee Scheme for Micro and Small Enterprises.
- ii. Additional 5% Guarantee Coverage (i.e. 80%) to MSEs located in Northeast Region (NER) for loans up to 50 Lakh under Credit Guarantee Scheme for Micro and Small Enterprises.
- iii. Government has allocated a budget outlay of Rs.295.00 Crore for setting up of new and modernization of  existing  Mini  Technology  Centres,  development  of  new  and  existing  industrial  estates,  and development of tourism sector during the period 2021-26.

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