Covid effect, 268 MSMEs shut in 2 years in Haryana

Tribune News Service

Bhartesh Singh Thakur

Chandigarh, July 27

A total of 268 micro, small and medium enterprises (MSMEs) closed down in the past two years in Haryana, while 1,345 persons lost their jobs, says government data.

This period witnessed multiple waves of Covid-19 and lockdowns.

In reply to a question in the Rajya Sabha on July 25, the Ministry of Micro, Small and Medium Enterprises submitted that from July 1, 2020, to March 31, 2021, 16 registered MSME units closed down and 40 persons lost their jobs in Haryana. From April 1, 2021, to March 31, 2022, a total of 151 units closed down and 731 people lost their jobs.

From April 1, 2022, to July 20, 2022, 101 units have closed down and 574 people have lost their jobs. The data is about registered units.

In Punjab, during the same period (from July 1, 2020, to July 20, 2022), 286 units closed down and 1,828 persons lost their jobs. In Himachal Pradesh, 57 units closed down and 516 lost jobs during the same period.

In May 2020, the Central Government introduced the Emergency Credit Line Guarantee Scheme (ECLGS) for providing 100 per cent guarantee coverage to banks and non-banking financial companies (NBFCs) to enable these to extend emergency credit facilities to business enterprises or MSMEs in view of Covid for meeting their additional term loan and additional working capital requirements.

Among the beneficiaries in Haryana, 1.90 lakh guarantees were issued of Rs 9,778.85 crore till June 30, 2022, which included 11,254 guarantees of Rs 2608.60 crore for medium units, 1.58 lakh guarantees of Rs 2,990.24 crore for micro units, and 21,099 guarantees of Rs 4,180 crore for small units. In Punjab, 2.04 lakh guarantees were issued of Rs 8157.28 crore for the MSME units while in HP 48,408 guarantees were issued of Rs 1,783.04 crore.

Under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which provides bank credit without the troubles of collaterals or third party guarantee, 18,499 applications came and funds of Rs 1,218 crore were approved in 2020-21 in Haryana. In 2021-22, 22,285 applications came and funds of Rs 2,707 crore were approved.

In Punjab, 43,551 applications came in the last two years and funds of Rs 2,526 crore were approved, while in HP, 18,647 applications came and funds of Rs 1,279 crore were approved.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.