Lok Sabha Question No. 3940 (UNSTARRED), answered on 2017-03-27
Subject: Functions of MSEFC
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: PRALHAD VENKATESH JOSHI

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

## LOK SABHA UNSTARRED QUESTION NO. 3940 TO BE ANSWERED ON 27/03/2017

## FUNCTIONS OF MSEFC

## 3940. SHRI PRALHAD JOSHI:

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

- (a) whether  the  Government  has  set  up  the  Micro  and  Small  Enterprises  Facilitation Council(MSEFC)  to  redress  the  delayed  payment  grievances  of  the  Micro,  Small  and Medium Enterprises(MSMEs) in the county, if so, the details thereof including its powers and functions, State/UT-wise;
- (b) whether the Government proposes to set up more MSEFC in the country, if so, the details thereof including vacancies likely to be filled up therein,  State/UT-wise;
- (c) the number of cases referred to MSEFCs during each of the last three years and the current year, State/UT-wise; and
- (d) the number of appeals filed under Section 19 of the MSME Act, on the decisions of MSEFCs during the said period ?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI HARIBHAI PARATHIBHAI CHAUDHARY )

- (a): In pursuance to Section 20 of The Micro, Small and Medium  Enterprises Development (MSMED) Act, 2006, all the States/UTs have already established one or more Micro  and Small Enterprises Facilitation Councils (MSEFCs)  under  their respective jurisdictions  to  redress  the  delayed  payment  grievance  of  Micro  and  Small  Enterprises (MSEs) in their respective jurisdictions. 34 States/UTs have notified rules of MSEFC. The details  regarding  the  number  of  MSEFCs  set  up  in  the  country  is  at  Annex-I.  Power  and function of MSEFCs are decided and notified by the respective State/UTs.
- (b): Section 20 of the MSMED Act, 2006, specifies that the State Government shall, by notification, establish one or more MSEFCs, at such places, exercising such jurisdiction and for such areas, as may be specified in the notification. The data on the vacancies likely to be filled up therein, State/UTs-wise, is not maintained.
- (c): The number of cases referred to MSEFCs during each of the last three years and the current year, State/UT-wise is at Annex-II.
- (d): The number of appeals filed under Section 19 of the MSMED Act, on the decisions of MSEFCs during the said period is at Annex-III.

******

## Number of MSEFCs set up in the country

|   Sl. No. | States/UTs                          |   No. of MSEFCs |
|-----------|-------------------------------------|-----------------|
|         1 | Andaman and Nicobar Islands         |               1 |
|         2 | Andhra Pradesh                      |               1 |
|         3 | Arunachal Pradesh                   |               1 |
|         4 | Assam                               |               1 |
|         5 | Bihar                               |               1 |
|         6 | Chandigarh                          |               1 |
|         7 | Chhattisgarh                        |               1 |
|         8 | Dadra and Nagar Haveli              |               1 |
|         9 | Daman and Diu                       |               1 |
|        10 | National Capital Territory of Delhi |               1 |
|        11 | Goa                                 |               1 |
|        12 | Gujarat                             |               1 |
|        13 | Haryana                             |               1 |
|        14 | Himachal Pradesh                    |               1 |
|        15 | Jammu and Kashmir                   |               2 |
|        16 | Jharkhand                           |               1 |
|        17 | Karnataka                           |               4 |
|        18 | Kerala                              |               1 |
|        19 | Lakshadweep                         |               1 |
|        20 | Madhya Pradesh                      |               1 |
|        21 | Maharashtra                         |               7 |
|        22 | Manipur                             |               1 |
|        23 | Meghalaya                           |               1 |
|        24 | Mizoram                             |               1 |
|        25 | Nagaland                            |               1 |
|        26 | Odisha                              |               1 |
|        27 | Puducherry                          |               1 |
|        28 | Punjab                              |               1 |
|        29 | Rajasthan                           |               1 |
|        30 | Sikkim                              |               1 |
|        31 | Tamil Nadu                          |               4 |
|        32 | Telangana                           |               1 |
|        33 | Tripura                             |               1 |
|        34 | Uttar Pradesh                       |               1 |
|        35 | Uttarakhand                         |               1 |
|        36 | West Bengal                         |               1 |

## Annexure-II  referred to in reply to part (c) of the Lok Sabha Unstarred Question No. 3940 for answer on 27.03.2017

## The number of cases referred to MSEFCs

| No.   | STATEs/UTs                          | Number of cases referred to during the   | year    | Number of cases referred to during the   | MSEFCs    |
|-------|-------------------------------------|------------------------------------------|---------|------------------------------------------|-----------|
|       |                                     | 2013-14                                  | 2014-15 | 2015-16                                  | *2016- 17 |
| 1     | Andaman and Nicobar Islands         | 0                                        | 0       | 0                                        | 0         |
| 2     | Andhra Pradesh                      | 24                                       | 16      | 21                                       | 0         |
| 3     | Arunachal Pradesh                   | 0                                        | 0       | 0                                        | 0         |
| 4     | Assam                               | 7                                        | 10      | 10                                       | 13        |
| 5     | Bihar                               | 1                                        | 8       | 8                                        | 4         |
| 6     | Chandigarh                          | 5                                        | 7       | 6                                        | 5         |
| 7     | Chhattisgarh                        | 17                                       | 6       | 40                                       | 20        |
| 8     | Dadra and Nagar Haveli              | 7                                        | 11      | 6                                        | 6         |
| 9     | Daman and Diu                       | 0                                        | 1       | 0                                        | 0         |
| 10    | National Capital Territory of Delhi | 12                                       | 7       | 21                                       | 11        |
| 11    | Goa                                 | 29                                       | 13      | 3                                        | 12        |
| 12    | Gujarat                             | 91                                       | 62      | 87                                       | 33        |
| 13    | Haryana                             | 28                                       | 150     | 157                                      | 69        |
| 14    | Himachal Pradesh                    | 8                                        | 3       | 26                                       | 46        |
| 15    | Jammu and Kashmir                   | 10                                       | 13      | 08                                       | 04        |
| 16    | Jharkhand                           | 7                                        | 38      | 27                                       | 11        |
| 17    | Karnataka                           | 25                                       | 34      | 35                                       | 9         |
| 18    | Kerala                              | 12                                       | 8       | 36                                       | 19        |
| 19    | Lakshadweep                         | 0                                        | 0       | 0                                        | 0         |
| 20    | Madhya Pradesh                      | 59                                       | 68      | 97                                       | 09        |
| 21    | Maharashtra                         | 165                                      | 222     | 333                                      | 131       |
| 22    | Manipur                             | 0                                        | 0       | 0                                        | 0         |
| 23    | Meghalaya                           | 0                                        | 0       | 0                                        | 0         |
| 24    | Mizoram                             | 0                                        | 0       | 0                                        | 0         |
| 25    | Nagaland                            | 0                                        | 0       | 0                                        | 0         |
| 26    | Odisha                              | 15                                       | 36      | 33                                       | 6         |
| 27    | Puducherry                          | 0                                        | 0       | 17                                       | 0         |
| 28    | Punjab                              | 139                                      | 143     | 171                                      | 62        |
| 29    | Rajasthan                           | 52                                       | 142     | 149                                      | 35        |
| 30    | Sikkim                              | 0                                        | 0       | 0                                        | 0         |
| 31    | Tamil Nadu                          | 77                                       | 87      | 89                                       | 72        |
| 32    | Telangana                           | 0                                        | 0       | 116                                      | 105       |
| 33    | Tripura                             | 0                                        | 0       | 0                                        | 0         |
| 34    | Uttar Pradesh                       | 36                                       | 48      | 38                                       | 94        |
| 35    | Uttarakhand                         | 27                                       | 38      | 36                                       | 09        |
| 36    | West Bengal                         | 43                                       | 70      | 93                                       | 12        |

(*upto 30.6.2016)

Annexure-III  referred to in reply to part (d) of the Lok Sabha Unstarred Question No. 3940 for answer on 27.03.2017

## Number of appeals filed before courts under Section 19 of the MSMED Act, 2006

| Sl. No .   | STATEs/UTs                          | Number of appeals filed before Section 19 of the MSMEDAct, 2006   | Number of appeals filed before Section 19 of the MSMEDAct, 2006   | Number of appeals filed before Section 19 of the MSMEDAct, 2006   | courts under   |
|------------|-------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------|----------------|
| Sl. No .   | STATEs/UTs                          | 2013-14                                                           | 2014-15                                                           | 2015-16                                                           | *2016-17       |
| 1          | Andaman and Nicobar Islands         | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 2          | Andhra Pradesh                      | 0                                                                 | 1                                                                 | 1                                                                 | 0              |
| 3          | Arunachal Pradesh                   | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 4          | Assam                               | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 5          | Bihar                               | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 6          | Chandigarh                          | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 7          | Chhattisgarh                        | 0                                                                 | 1                                                                 | 0                                                                 | 0              |
| 8          | Dadra and Nagar Haveli              | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 9          | Daman and Diu                       | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 10         | National Capital Territory of Delhi | 1                                                                 | 0                                                                 | 0                                                                 | 0              |
| 11         | Goa                                 | 0                                                                 | 0                                                                 | 1                                                                 | 2              |
| 12         | Gujarat                             | 0                                                                 | 0                                                                 | 1                                                                 | 0              |
| 13         | Haryana                             | 4                                                                 | 6                                                                 | 25                                                                | 1              |
| 14         | Himachal Pradesh                    | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 15         | Jammu and Kashmir                   | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 16         | Jharkhand                           | 1                                                                 | 5                                                                 | 1                                                                 | 0              |
| 17         | Karnataka                           | 1                                                                 | 1                                                                 | 3                                                                 | 1              |
| 18         | Kerala                              | 8                                                                 | 18                                                                | 12                                                                | 4              |
| 19         | Lakshadweep                         | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 20         | Madhya Pradesh                      | 6                                                                 | 7                                                                 | 3                                                                 | 0              |
| 21         | Maharashtra                         | 1                                                                 | 2                                                                 | 6                                                                 | 1              |
| 22         | Manipur                             | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 23         | Meghalaya                           | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 24         | Mizoram                             | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 25         | Nagaland                            | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 26         | Odisha                              | 0                                                                 | 16                                                                | 6                                                                 | 4              |
| 27         | Puducherry                          | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 28         | Punjab                              | 1                                                                 | 2                                                                 | 4                                                                 | 2              |
| 29         | Rajasthan                           | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 30         | Sikkim                              | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 31         | Tamil Nadu                          | 4                                                                 | 12                                                                | 9                                                                 | 3              |
| 32         | Telangana                           | 0                                                                 | 0                                                                 | 0                                                                 | 3              |
| 33         | Tripura                             | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 34         | Uttar Pradesh                       | 0                                                                 | 0                                                                 | 0                                                                 | 0              |
| 35         | Uttarakhand                         | 02                                                                | 04                                                                | 02                                                                | 0              |

(*upto 30.6.2016)