Lok Sabha Question No. 2479 (UNSTARRED), answered on 2023-08-03
Subject: MSME Loans in Odisha
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Bhartruhari Mahtab

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

## LOK SABHA UNSTARRED QUESTION NO. 2479 TO BE ANSWERED ON 03.08.2023

## MSME LOANS IN ODISHA

## 2479. SHRI BHARTRUHARI MAHTAB:

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

- (a) the  steps  taken  by  the  Government  to  overcome  the  challenges  that  Micro,  Small  and Medium Enterprises (MSMEs) in Odisha are facing in getting loans from bank;
- (b) whether the Government evaluated the collateral demands that banking institutions place on MSMEs in Odisha and if so, the details thereof; and
- (c) the  actions  being  taken  by  the  Government  to  ensure  that  the  collateral  requirements  for MSME  loans  in  Odisha  are  fair  and  appropriate  for  the  size  and  financial  capacity  of  the businesses?

## ANSWER

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

(a) & (c): The, Government has taken many  measures to improve the  flow of credit to MSMEs in the country including the State of Odisha. Some of them are given below:

- i. Priority  Sector  Lending  Guidelines:  In  terms  of  Master  Direction  on  'Priority  Sector Lending (PSL) - Targets and Classification' dated September 4, 2020, all bank loans to MSMEs conforming to the conditions prescribed  therein qualify for  classification  under Priority Sector Lending.
- ii. Collateral requirements of MSME units: Schedule Commercial Banks (SCBs) have been mandated not to accept collateral security in the case of loans up to ₹10 lakh extended to units in Micro & Small Enterprises category. RBI issued circular No. RPCD.SME & NFS. BC. No. 79/06.02.31/2009-10 dated May 6, 2010.
- iii. CGTMSE  provides  credit  guarantee  to  its  Member  Lending  Institutions  for  loans extended by them to Micro and Small Enterprises without any collateral security and third party guarantee.
- iv. With  effect  from  01.04.2023,  the  credit  limit  for  Guarantee  Coverage  under  Credit Guarantee Scheme for Micro & Small Enterprises has been enhanced from ₹ 2 crore to ₹ 5 crore and the annual guarantee fees have been reduced by 50%.
- v. Under  the  revised  guidelines  of  Prime  Minister's  Employment  Generation  programme (PMEGP)  issued  on  13.05.2022,  the  project  cost  for  Manufacturing  and  Services  have been enhanced to Rs. 50.00 Lakh and Rs. 20.00 Lakh, respectively from Rs. 25.00 Lakh and Rs. 10.00 Lakh.

- vi. Under  Aatmanirbhar  Bharat  packages,  the  Government  of  India  has  announced  Self Reliant India Fund to infuse equity in MSMEs which have the potential and viability to grow.
- vii. New revised  composite  criteria  of  Investment  &  turnover  for  classification  of  MSMEs adopted on 26.06.2020.

viii. No global tenders for procurement up to Rs. 200 crore.

- ix. 'Udyam Registration' for MSMEs, for Ease of Doing Business w.e.f. 1.7.2020.
- x. 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.
- xi. Infusion  of  Rs.9,000  crore  in  the  corpus  of  Credit  Guarantee  Fund  Trust  for  MSEs  to enable  an  additional  credit  of  Rs.2.00lakh  crore  at  reduced  cost  (Budget  announcement 2023).
4. (b): The details of guarantees approved under CGTMSE in the state of Odisha are given below.

| CGTMSE - Guarantee Approved - ODISHA   | CGTMSE - Guarantee Approved - ODISHA   | CGTMSE - Guarantee Approved - ODISHA   |
|----------------------------------------|----------------------------------------|----------------------------------------|
| Duration                               | No.                                    | Amt. (Rs.Crore)                        |
| FY 2000-23 (Since inception)           | 2,82,754                               | 15,453                                 |
| (Data as on 30/06/2023)                | (Data as on 30/06/2023)                | (Data as on 30/06/2023)                |

Source: CGTMSE

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