Lok Sabha Question No. 152 (UNSTARRED), answered on 2026-01-29
Subject: MSMEs in Peddapalli Lok Sabha Constituency
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Vamsi Krishna Gaddam

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 152 TO BE ANSWERED ON 29.01.2026

## MSMEs IN PEDDAPALLI LOK SABHA CONSTITUENCY

## 152. SHRI VAMSI KRISHNA GADDAM:

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

- (a) the details of 1.5 lakh crore additional credit unlocked through enhanced Credit Guarantee cover from 5 crore to 10 crore announced in Budget 2025-26, specifically for Micro, Small and Medium Enterprises (MSMEs) in Peddapalli Lok Sabha Constituency;
- (b) the  number  of  micro  and  small  enterprises  in  Peddapalli  district  that  have  applied  for guarantee cover under the revised Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme during January to July 2025;
- (c) the  distribution  of  guaranteed  loans  sanctioned  for  MSMEs  in  Peddapalli  Lok  Sabha Constituency, particularly for coal ancillary industries and thermal power equipment manufacturing units, sector-wise;
- (d) the timeline for  rollout of  customised credit cards with  Rupees  5 lakh  limit  targeting  10 lakh MSMEs, including a coverage plan for registered enterprises in Peddapalli district; and
- (e) the  measures  taken  to  reduce  guarantee  fees  and  streamline  the  application  process  for MSMEs in Peddapalli Lok Sabha Constituency under the enhanced scheme?

## ANSWER

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

- (a): In  order  to  improve  access  to  credit,  the  credit  guarantee  cover  has  been  enhanced  for Micro and Small Enterprises (MSEs),  from Rs. 5 crore to Rs. 10 crore under Credit Guarantee Scheme (CGS) for MSEs in line with the Union Budget 2025-26.  As a result, a total of 1,778 guarantees amounting to Rs. 12,498 crore have been approved to MSEs in the slab of Rs. 5 crore to Rs. 10 crore in the FY 2025-26 till 31.12.2025, out of which 1 guarantee amounting to Rs. 5 crore has been approved in the Peddapalli district.
- (b): A total of 468 guarantees amounting to Rs. 50 crore have been approved to MSEs under CGS for MSEs during January to July 2025 in the Peddapalli district.
- (c): Details  of  guarantees  approved  under  CGS  for  MSEs,  sector-wise in the  Peddapalli  Lok Sabha Constituency are as below:

| CGTMSE - Guarantee Approved - Cumulative since inception as on Dec 31, 2025   | CGTMSE - Guarantee Approved - Cumulative since inception as on Dec 31, 2025   | CGTMSE - Guarantee Approved - Cumulative since inception as on Dec 31, 2025   | CGTMSE - Guarantee Approved - Cumulative since inception as on Dec 31, 2025   | CGTMSE - Guarantee Approved - Cumulative since inception as on Dec 31, 2025   | CGTMSE - Guarantee Approved - Cumulative since inception as on Dec 31, 2025   | CGTMSE - Guarantee Approved - Cumulative since inception as on Dec 31, 2025   |
|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                               | Manufacturing                                                                 | Manufacturing                                                                 | Service                                                                       | Service                                                                       | Trade                                                                         | Trade                                                                         |
| District                                                                      | No. of Guarantees Approved                                                    | Amount of guarantees Approved in Rs. Crore                                    | No. of Guarantees Approved                                                    | Amount of guarantees Approved in Rs. Crore                                    | No. of Guarantees Approved                                                    | Amount of guarantees Approved in Rs. Crore                                    |
| Mancherial                                                                    | 438                                                                           | 61                                                                            | 995                                                                           | 73                                                                            | 1,042                                                                         | 79                                                                            |
| Jagitial                                                                      | 457                                                                           | 152                                                                           | 1,006                                                                         | 79                                                                            | 1,625                                                                         | 75                                                                            |
| Peddapalli                                                                    | 310                                                                           | 106                                                                           | 913                                                                           | 68                                                                            | 1,097                                                                         | 87                                                                            |

(d): As informed by Department of Financial Service, introduction of customized Credit Cards with  Rs.5  lakh  limit  for  Micro  Enterprises  registered  on  Udyam  portal,  targeting  10  lakh  credit cards in the first year, in line with the Union Budget 2025-26 has been taken up.

(e): CGS was revamped from 01.04.2023, following a corpus infusion of Rs. 9,000 crore into CGTMSE. As part of the  revamp,  the  Standard  Rate  of  the  Annual  Guarantee  Fee  (AGF)  was reduced by 50%, to as low as 0.37% per annum. AGF has been further rationalised for guarantees above Rs. 1 crore, effective from 01.04.2025. CGTMSE has leveraged technology through digital platforms,  enabling  easy  online  submission  of  application  for  guarantee  coverage,  automated processes for quicker guarantee approvals and API integration with MLIs for seamless data flow to the CGTMSE platform.

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