Parliament Question: Financial Stress on Firozabad's Glass and Bangle MSMEs

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO. 2411 TO BE ANSWERED ON MONDAY, AUGUST 3, 2026/SHRAVANA 12, 1948 (SAKA) FINANCIAL STRESS ON FIROZABAD’S GLASS AND BANGLE MSMES 2411. Shri Akshay Yadav: Will the Minister of FINANCE be pleased to state: (a) whether the Government has assessed the compound financial stress on Firozabad’s glass and bangle MSMEs, arising from the gas supply curtailment since March, 2026, layered on existing Goods and Service Tax (GST) compliance and input-tax-credit constraints; (b) whether withdrawal of the GST compensation cess has affected Uttar Pradesh’s fiscal capacity to extend State-level relief to crisis-hit clusters such as Firozabad; (c) the number of Mudra, Stand-Up India and CGTMSE-guaranteed credit facilities sanctioned to Firozabad MSMEs during the last two years and whether any credit- restructuring window has been opened for gas-crisis-affected units, if so, the details thereof; and (d) whether the Government has proposed any interest subvention or moratorium scheme for energy-intensive MSME clusters affected by external supply disruptions and if so, the details thereof? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) No constraints on GST compliance and input tax credit reported in Firozabad glass and bangle MSMEs. Further, Firozabad is part of Taj Trapezium Zone Geographical Area authorized by Petroleum and Natural Gas Regulatory Board (PNGRB) to GAIL Gas Limited in the year 2011 for the development of City Gas Distribution (CGD) network. The status of gas supply prior to March 2026 and after is as below: -Industrial Commercial CNG CNG (SCMD) (SCMD) (Kgs.)/Day (SCMD) Average Gas Supply Per day 13,48,078.57 205 61,342.77 89,560.44 in Feb-2026 Average Gas Supply Per day 10,83,037.10 54,294.09 79,269.37 in March-2026 (Upto 10th March2026) Average Gas Supply Per day 9,52,565.00 170 57,627.34 84,135.91 in March-2026 (11th March- 2026 to 31st March 2026) July 2026 average till 12,52,749.72 59,104.83 86,293.05 29.07.2026 (b) GST Compensation Cess was released to the States/UTs to compensate for the loss of revenue arising from the implementation of the Goods and Services Tax (GST) with effect from 01.07.2017, for a period of five years up to FY 2022-23 (April-June, 2022) as per constitutional mandate. (c) Ministry of MSME implements the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide guarantee for the credit facilities extended to MSEs for all the activities mentioned under the MSMED Act 2006. The details of guarantees extended to the Micro and Small Enterprises in the District Firozabad are as under: CGS-Guarantees approved- Firozabad No. of guarantees Amount approved approved (in Rs. crore) FY 2024-25 5,365 279.50 FY 2025-26 5,333 347.71 (d) Ministry of MSME is implementing Micro and Small Enterprises Cluster Development Programme (MSE-CDP) across the country. The scheme was launched in the year 2003. This is Central Sector Scheme and it is demand driven scheme wherein proposals are received from the State/UT Governments to address the common needs of existing cluster in their States/UTs. *****