Lok Sabha Question No. 711 (UNSTARRED), answered on 2023-12-07
Subject: Financial Assistance
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: D. M. Kathir Anand

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

## LOK SABHA UNSTARRED QUESTION NO. 711 TO BE ANSWERED ON 07.12.2023

## FINANCIAL ASSISTANCE

## 711.            SHRI D.M. KATHIR ANAND:

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

- (a) whether it is  true  that  millions  of  people  employed  in  Micro,  Small  and  Medium  Industries  in  the country have lost their jobs due to various reasons like cash crunch, import-export crisis and escalating price rise of raw materials and if so, the details thereof;
- (b) the  steps  taken  by  the  Union  Government  to  restore  the  jobs  and  improve  the  status  of  MSMEs, especially in Tamil Nadu;
- (c) whether the Government has provided any financial assistance for revival of MSMEs in Tamil Nadu and if so, the details thereof; and
- (d) the  measures  taken/to  be  taken  by  the  Government  to  protect  the  interests  of  both  employer  and employees of MSME sector?

## ANSWER

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

(a) to (d): The Government has taken a number of steps to resolve the issues faced by the MSME sector in the country, including the State of Tamil Nadu. Some of these steps are as follows:

- 1) Budget 2023-24 announced the infusion of Rs 9,000 crore Credit Guarantee Trust for Micro, Small &  Medium  Enterprises  (CGTMSE)  to  enable  an  additional  credit  of  Rs.  2.00  lakh  crore  with reduced cost of credit.
- 2) 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 to artisans and craftspeople who work with their hands, using tools, in the 18 trades covered.
- 3) Vivad se Vishwas - Relief for MSMEs: In cases of failure by MSMEs to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance security will be returned to them by government and government undertakings.
- 4) Under Section 43B of Income Tax Act: Deduction has been allowed for expenditure incurred on payments only when payment is actually made to MSMEs.
- 5) No global tenders for procurement upto Rs. 200 crore.
- 6) Inclusion of retail and whole sale traders as MSMEs w.e.f. 02.07.2021.
- 7) Non-tax  benefits  extended  for  3  years  in  case  of  an  upward  change  in  status  of  MSMEs  w.e.f. 18.10.2022.

- 8) The Government of India has taken several measures to provide support of the both employers and employees. Some of them are as under:
2. (i) (a)   Adoption of dual criteria based definition of MSMEs on 26.06.2020 to widen the   ambit of the MSME sector has been done by Ministry of MSME.

(b)  Launch of Udyam Portal on 01.07.2020 to facilitate ease of registration for MSME. Since then,  till  04.12.2023,  2.12  crore  MSMEs,  with  an  employment  of  over  14.25  crore,  have registered on Udyam Portal.

(c)    Launch  of  Udyam  Assist  Platform  on  11.01.2023  to  bring  Informal  Micro  Enterprises (IMEs) under the formal ambit for availing the benefits under Priority Sector Lending. Since then,  till  04.12.2023,  1.04  crore  IMEs  with  an  employment  of  over  1.22  crore  have  been registered on UAP.

- (ii) To protect the interest of both the employer and employees of MSME sector during the Covid 19 crisis, the Government of India launched the Emergency Credit Line Guarantee Scheme in May  2020,  which  was  running  till  March  31,  2023.  Under  the  Scheme,  1.13  crore  loans amounting  to  Rs.2.43  lakh  crore  were  extended  to  MSME  borrowers,  which  has  helped employees and employer of these MSMEs.
- (iii) Aatmanirbhar  Bharat  Rojgar  Yojana  has  been  launched  on  1 st October,  2020  to incentivize employers  for  creation  of  new  employment  and  restoration  of  loss  of  employment  during Covid-19 pandemic. The terminal date for registration was 31.03.2022.
- (iv) The  Government  is  implementing  Prime  Minister  Street  Vendor's  AtmaNirbharNidhi  (PM SVANidhi Scheme) since  June  01,  2020  to  facilitate  collateral  free  working  capital  loan  to street vendors to restart their businesses, which were adversely impacted during the Covid-19 pandemic.
- (v) Pradhan Mantri Mudra Yojana (PMMY) was launched by the Government for facilitating selfemployment. Under PMMY, collateral free loans upto Rs. 10 lakh, are extended to micro/small business  enterprises  and  to  individuals  to  enable  them  to  setup  or  expand  their  business activities.
- (vi) PM  GatiShakti is a transformative approach for economic growth and sustainable development. The  approach  is  driven  by  seven  engines,  namely,  Roads,  Railways,  Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure. This approach is powered by Clean Energy and Sabka Prayas leading to huge job and entrepreneurial opportunities for all.

In  pursuance of Budget Announcement 2022 Udyam portal have been linked to other portals of eShram, National Career Service (NCS) portal, and integration of Skill India Digital (SID) portal of Ministry of Skill Development & Entrepreneurship is underway.

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