Lok Sabha Question No. 83 (STARRED), answered on 2015-12-04
Subject: Credit to MSMEs
Ministry: FINANCE
Asked by: PARESH RAWAL, MEENAKASHI LEKHI

## Government of India Ministry of Finance Department of Financial Services *****

## LOK SABHA STARRED QUESTION NO. *83

## TO BE ANSWERED ON 4 th DECEMBER 2015 /AGRAHAYANA 13, 1937 (SAKA) 'CREDIT TO MSMEs'

## QUESTION

## SHRIMATI MEENAKASHI LEKHI *83: SHRI PARESH RAVAL

Will the Minister of FINANCE be pleased to state:

- (a) whether subsidised loan is being given to Micro, Small and Medium Enterprises (MSMEs) units and if so, the details thereof;
- (b) the funds allocated and sanctioned under the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme and other Credit Schemes, State-wise; and
- (c) the  steps  taken/being  taken  by  the  Government  to  ensure  easy  access  and increase credit flow to MSMEs in the country including North-Eastern Region?

## ANSWER

## MINISTER OF FINANCE (SHRI ARUN JAITLEY)

- (a)  to (c): A Statement is laid on the Table of the House.

*****

## STATEMENT  REFERRED  IN  REPLY  TO  STARRED  QUESTION  No.*83  FOR ANSWER ON 4 th   DECEMBER, 2015 TABLED BY SHRI PARESH RAVAL  AND SHRIMATI MEENAKASHI LEKHI REGARDING 'CREDIT TO MSMEs'

- (a)  to (c): Government of India and Reserve Bank of India (RBI) have, inter-alia, taken  the  following  measures  to  make  bank  credit  more  accessible  to  Micro, Small and Medium Enterprises (MSMEs) all over the country including the NorthEastern region:-
- (i) Scheduled Commercial Banks (SCBs) have been advised to
-  Allocate  60%  of  the  Micro  and  Small  Enterprises  advances  to  the  micro enterprises; and
-  Achieve a 20 per cent year-on-year growth in credit
-  Achieve a 10% annual growth in number of micro enterprise accounts.
- (ii) Under the revised Priority Sector Lending (PSL) guidelines, a target of 7.5 per cent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is higher, has been prescribed for SCBs for lending to Micro Enterprises.
- (iv) Pradhan Mantri MUDRA Yojana (PMMY) has been launched on 8 th April 2015 to provide loans upto Rs.10 lakh for enterprises & trades.
- (iii) In order to solve the problem of delayed payment to MSMEs, RBI has issued guidelines  for  operationalising  the  Trade  Receivables  Discounting  System (TReDS).
- (v) SIDBI has launched 'SIDBI Make in India Soft Loan Fund for Micro, Small & Medium  Enterprises  (SMILE)'  with  a  corpus  of  Rs.  10,000  crore  and  India Aspiration Fund (IAF) with a corpus of Rs. 2,000 crore to boost the start-up Venture Capital and MSME ecosystem in the country.
2.  Loans  to  MSMEs  are  based  on  extant  guidelines  of  the  RBI.  The  following schemes  are  being  implemented  to  reduce  the  effective  cost  of  the  loans  to MSMEs:-
- ii. Technology  Up-gradation  Fund  Scheme  for  Textile  and  Jute  Industries (TUFS) of the Ministry of Textiles extends interest reimbursement and capital subsidy at different rates for upgrading  and  modernizing  technological processes.
- i. Credit  Linked  Capital  Subsidy  Scheme  (CLCSS)  of  the  Ministry  of  MSME provides  a  subsidy  against  loans  taken  for  technology  upgradation  for selected products/sub-products.
3.  The  state-wise  details  of  the  Credit  Guarantee  Scheme  (CGTMSE)  and  Credit Linked  Capital  Subsidy  (CLCSS)  Scheme  are  at Annexure-I and Annexure-II respectively.

*****

## Annexure-I

Credit Guarantees approved by the Credit Guarantee Fund Trust for Micro

| and Small Enterprises( CGTMSE) (as on October 31, 2015 (Cumulative)   | and Small Enterprises( CGTMSE) (as on October 31, 2015 (Cumulative)   | and Small Enterprises( CGTMSE) (as on October 31, 2015 (Cumulative)   | and Small Enterprises( CGTMSE) (as on October 31, 2015 (Cumulative)   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| S.N O.                                                                | State Name                                                            | Proposals                                                             | Approved Amount (in Rs. Crore)                                        |
| 1                                                                     | ANDAMAN & NICOBAR                                                     | 1614                                                                  | 81.40                                                                 |
| 2                                                                     | ANDHRA PRADESH                                                        | 63919                                                                 | 1882.21                                                               |
| 3                                                                     | ARUNACHAL PRADESH                                                     | 5789                                                                  | 267.44                                                                |
| 4                                                                     | ASSAM                                                                 | 76439                                                                 | 2583.03                                                               |
| 5                                                                     | BIHAR                                                                 | 109324                                                                | 4630.05                                                               |
| 6                                                                     | CHANDIGARH                                                            | 4253                                                                  | 298.84                                                                |
| 7                                                                     | CHHATTISGARH                                                          | 25839                                                                 | 1554.01                                                               |
| 8                                                                     | DADRA & NAGAR HAVELI                                                  | 390                                                                   | 96.41                                                                 |
| 9                                                                     | DAMAN & DIU                                                           | 337                                                                   | 82.17                                                                 |
| 10                                                                    | DELHI                                                                 | 19718                                                                 | 2530.32                                                               |
| 11                                                                    | GOA                                                                   | 13275                                                                 | 850.95                                                                |
| 12                                                                    | GUJARAT                                                               | 81476                                                                 | 7221.46                                                               |
| 13                                                                    | HARYANA                                                               | 25201                                                                 | 1998.08                                                               |
| 14                                                                    | HIMACHAL PRADESH                                                      | 38145                                                                 | 2174.37                                                               |
| 15                                                                    | JAMMU & KASHMIR                                                       | 55514                                                                 | 1175.03                                                               |
| 16                                                                    | JHARKHAND                                                             | 82443                                                                 | 5043.41                                                               |
| 17                                                                    | KARNATAKA                                                             | 177906                                                                | 9193.20                                                               |
| 18                                                                    | KERALA                                                                | 191499                                                                | 4803.81                                                               |
| 19                                                                    | LAKSHA DEEP                                                           | 243                                                                   | 6.91                                                                  |
| 20                                                                    | MADHYA PRADESH                                                        | 68282                                                                 | 3731.72                                                               |
| 21                                                                    | MAHARASHTRA                                                           | 142058                                                                | 11233.78                                                              |
| 22                                                                    | MANIPUR                                                               | 5120                                                                  | 160.23                                                                |
| 23                                                                    | MEGHALAYA                                                             | 6518                                                                  | 299.54                                                                |
| 24                                                                    | MIZORAM                                                               | 3250                                                                  | 122.16                                                                |
| 25                                                                    | NAGALAND                                                              | 4878                                                                  | 166.98                                                                |
| 26                                                                    | ORISSA                                                                | 100520                                                                | 4227.20                                                               |
| 27                                                                    | PONDICHERRY                                                           | 2916                                                                  | 123.35                                                                |
| 28                                                                    | PUNJAB                                                                | 40496                                                                 | 2632.51                                                               |
| 29                                                                    | RAJASTHAN                                                             | 65916                                                                 | 3393.10                                                               |
| 30                                                                    | SIKKIM                                                                | 1610                                                                  | 65.71                                                                 |
| 31                                                                    | TAMILNADU                                                             | 198596                                                                | 8179.34                                                               |
| 32                                                                    | TELANGANA                                                             | 34113                                                                 | 2103.18                                                               |
| 33                                                                    | TRIPURA                                                               | 8990                                                                  | 308.02                                                                |
| 34                                                                    | UTTAR PRADESH                                                         | 230963                                                                | 10019.38                                                              |
| 35                                                                    | UTTARAKHAND                                                           | 25971                                                                 | 1384.89                                                               |
| 36                                                                    | WEST BENGAL                                                           | 130048                                                                | 6149.26                                                               |
| Total                                                                 | Total                                                                 | 2043569                                                               | 100773.45                                                             |

## Annexure-II

## State Wise Report Progress report under CLCSS Cumulative (till 31.10.2015)

Subsidy (in Rs.

| Sl. No   | State/ UT            |   No. of Units |   Crore) |
|----------|----------------------|----------------|----------|
| 1        | Andhra Pradesh       |           1687 |   129.96 |
| 2        | Andman & Nicobar     |              6 |     0.58 |
| 3        | Arunanchal Pradesh   |              0 |     0    |
| 4        | Assam                |             10 |     0.92 |
| 5        | Bihar                |             19 |     1.54 |
| 6        | Chandigarh           |            221 |    11.31 |
| 7        | Chhatisgarh          |            291 |    18.95 |
| 8        | Dadra & Nagar Haveli |             45 |     3.87 |
| 9        | Daman & Diu          |             67 |     4.36 |
| 10       | Goa                  |             41 |     2.03 |
| 11       | Gujarat              |          10258 |   583.58 |
| 12       | Haryana              |           1885 |   133.74 |
| 13       | Himachal Pradesh     |             23 |     1.7  |
| 14       | Jammu & Kashmir      |              1 |     0.01 |
| 15       | Jharkhand            |            135 |     9.47 |
| 16       | Karnataka            |           3721 |   184.02 |
| 17       | Kerala               |            193 |    14.35 |
| 18       | Lakshdweep           |              1 |     0.01 |
| 19       | Madhya Pradesh       |            306 |    21.41 |
| 20       | Maharashtra          |           4888 |   303.6  |
| 21       | Manipur              |              3 |     0.18 |
| 22       | Meghalaya            |              0 |     0    |
| 23       | Mizoram              |              0 |     0    |
| 24       | Nagaland             |              2 |     0.3  |
| 25       | Delhi                |            423 |    30.17 |
| 26       | Odisha               |            313 |    18.86 |
| 27       | Pudduchery           |             23 |     1.83 |
| 28       | Punjab               |           3166 |   197.13 |
| 29       | Rajasthan            |           2064 |   131.88 |
| 30       | Sikkim               |              1 |     0.15 |
| 31       | Tamilnadu            |           5945 |   266.06 |
| 32       | Tripura              |              7 |     0.28 |
| 33       | Uttar Pradesh        |            719 |    47.27 |
| 34       | Uttarakhand          |             35 |     3.29 |
| 35       | West Bengal          |            187 |    17.22 |
| 36       | Telangana            |             42 |     3.69 |
|          | Total                |          36728 |  2143.72 |