Lok Sabha Question No. 1351 (UNSTARRED), answered on 2023-07-27
Subject: Financial Support for Revival of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rajashree Mallick

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

## LOK SABHA UNSTARRED QUESTION NO. 1351 TO BE ANSWERED ON: 27.07.2023

## FINANCIAL SUPPORT FOR REVIVAL OF MSMEs

## 1351. SHRIMATI RAJASHREE MALLICK:

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

- (a) whether the Government has provided any financial assistance for the revival of Micro, Small and Medium Enterprises (MSMEs) in Odisha;
- (b) if so, the details thereof and the funds allocated during the last four years and the current year;
- (c) the  measures  taken/proposed  to  be  taken  by  the  Government  to  protect  the  interests  of employers and the employees of MSME sector;
- (d) whether millions of people employed in MSME sector have lost their jobs during the Covid pandemic; and
- (e) if so, the details thereof and the steps taken by the Government to provide jobs to those who were rendered jobless during the pandemic?

## ANSWER

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

(a) to (b): The Government has taken a number of initiatives by way of programmes, schemes and declarations under Aatmanirbhar Bharat Abhiyan and Union Budget announcements, for Micro, Small and Medium Enterprises (MSMEs) in the country, including the State of Odisha. Some initiatives for financial assistance include the following:

- (i) Rs.  5.00  lakh  crore  Collateral  free  Automatic  Loans  under  Guaranteed  Emergency  Credit Line (GECL)/Emergency Credit Line Guarantee Scheme (ECLGS) for businesses, including MSMEs. The scheme was in operation till 31.03.2023;
- (ii) Prime  Minister's  Employment  Generation  Programme  (PMEGP)  which  is  a  major  creditlinked subsidy programme aimed at generating self-employment; and
- (iii) Credit Guarantee Scheme (CGS) to 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.

(c) to (e): All the schemes implemented by the Ministry of MSME are Central Sector Schemes & funds are not allocated State /UT wise.  Details of the financial assistance to MSMEs under ECLGS, PMEGP and Credit Guarantee Scheme for Micro and Small Enterprises for the State of Odisha are at Annexure-A.

## : 2 :

Government of India has taken several measures to provide support for employment. Some of them are as under:

- (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  26.07.2023,  2.09  crore  MSMEs,  with  an  employment  of  over  12.57  crore,    have registered on Udyam Portal.

(c)  Udyam Shakti  Portal  launched  on  29th  June,  2022  for  integration  of  Udyam  portal  with portals of other Ministries/Departments &  State Governments with the objective of convergence and coordinated response.

- (ii) Aatmanirbhar  Bharat  Rojgar  Yojana  (ABRY)  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.
- (iii) 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.
- (iv) 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.
- (v) 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.
- (vi) The Government of India is encouraging various projects involving substantial investment and public expenditure on schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deen Dayal Antodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) etc. for employment generation.

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

## Annexure-A

Annexure-A is referred for parts (c) to (e) of Lok Sabha unstarred Question no. 1351 due for reply on 27.07.2023

## Scheme wise details of financial assistance during the last four years and the current year

| Sl. No.   | Name of Scheme                                              | 2019-20                                                     | 2020-21                                                     | 2021-22                                                     | 2022-23                                                     | 2023-24 ( as on 30.06.2023)                                 |
|-----------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| (i)       | Emergency Credit Line Guarantee Scheme (ECLGS):             | Emergency Credit Line Guarantee Scheme (ECLGS):             | Emergency Credit Line Guarantee Scheme (ECLGS):             | Emergency Credit Line Guarantee Scheme (ECLGS):             | Emergency Credit Line Guarantee Scheme (ECLGS):             | Emergency Credit Line Guarantee Scheme (ECLGS):             |
| (a)       | No. of guarantees issues to MSMEs                           | --                                                          | 8,62,108                                                    | 56,307                                                      | 7,809                                                       | Scheme was in operation till 31.03.2023                     |
| (b)       | Amount guaranteed (in Rs. Crore)                            | --                                                          | 3,725.89                                                    | 1209.00                                                     | 500.17                                                      | Scheme was in operation till 31.03.2023                     |
| 1.        | Prime Minister's Employment Generation Programme (PMEGP):   | Prime Minister's Employment Generation Programme (PMEGP):   | Prime Minister's Employment Generation Programme (PMEGP):   | Prime Minister's Employment Generation Programme (PMEGP):   | Prime Minister's Employment Generation Programme (PMEGP):   | Prime Minister's Employment Generation Programme (PMEGP):   |
| (a)       | No. of units assisted                                       | 2,723                                                       | 3,171                                                       | 4,301                                                       | 3,880                                                       | 552                                                         |
| (b)       | Margin Money (MM) Disbursed ( in Rs. crore)                 | 78.17                                                       | 87.48                                                       | 113.36                                                      | 107.33                                                      | 18.02                                                       |
| 2.        | Credit Guarantee Scheme (CGS) for Micro &Small Enterprises: | Credit Guarantee Scheme (CGS) for Micro &Small Enterprises: | Credit Guarantee Scheme (CGS) for Micro &Small Enterprises: | Credit Guarantee Scheme (CGS) for Micro &Small Enterprises: | Credit Guarantee Scheme (CGS) for Micro &Small Enterprises: | Credit Guarantee Scheme (CGS) for Micro &Small Enterprises: |
| (a)       | No. of Guarantees issued                                    | 26,167                                                      | 28,288                                                      | 25,788                                                      | 34,081                                                      | 7,889                                                       |
| (b)       | Amount of Guarantees (In Rs. Crore)                         | 1,347.05                                                    | 1,133.71                                                    | 1,801.05                                                    | 3,044.90                                                    | 894.60                                                      |

Source:

- i)  ECLGS - DFS, M/o Finance.

- ii) PMEGP- KVIC, Mumbai

- ii) CGS - CGTMSE, Mumbai.