Lok Sabha Question No. 88 (UNSTARRED), answered on 2017-07-17
Subject: Revival of Closed MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAJENDRA AGRAWAL

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

## LOK SABHA UNSTARRED QUESTION No. 88 TO BE ANSWERED ON 17.07.2017

## REVIVAL OF CLOSED MSMES

## 88. SHRI RAJENDRA AGARWAL:

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

- (a) whether  a  large  number  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  have been closed down in the country if so, the details thereof and the reasons therefor along with the number of workers affected therefrom during each of the last three years and current year, State/UT-wise;
- (b) whether the Government has set up/proposes to set up a panel to study the problems being faced by MSMEs in the country and if so, the details and status thereof; and
- (c) the steps taken/proposed to be taken by the Government to revive and rehabilitate the closed/sick MSMEs in the country?

## ANSWER

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

- (a): Information on closure among Micro, Small and Medium Enterprises (MSMEs) are obtained through conduct of periodic census. As far as the 4 th All India Census of MSMEs conducted with reference to 2006-07 is concerned, 4.96 lakh MSMEs were found closed. The State/UT-Wise  closed  MSMEs  from  the  same  data  source  is  as  given  in  Annexure-I.  The main  reasons  for  closure  are  (1)Lack  of  demand,  (2)Shortage  of  working  capital,  (3)Nonavailability of raw materials, (4)Power shortage, (5)Marketing problems, (6)Labour problems, (7)Management problems etc.

The  information  on  the  number  of  workers  affected  is  not  collected  through  the census as referred to above.

- (b): No specific  panel  was  set  up  to  study  the  problems  being  faced  by  MSMEs  in  the country. However, One-Man Committee under the Chairmanship of former Cabinet Secretary was appointed to provide a framework for a National policy for MSME Sector, which has submitted the report.
- (c): The  Ministry  of  MSME,  under  Section  9  of  the  MSMED  Act  2006,  notified  a Framework for Revival and Rehabilitation of sick MSMEs on the 29 th May, 2015. Under this scheme,  any  enterprise  can  seek  revival  and  rehabilitation  benefit  through  a  committee constituted  by  the  banks  with  representatives  from  State  Governments  experts  and  others. Subsequently,  the  RBI,  on  the  17 th March,  2016,  issued  a  revised  Framework  along  with operating instructions to make it compatible with existing regulatory guidelines.   In respect of MSME loans above Rs. 10 lakh to Rs. 25 crore, the framework provides for committee approach for deciding corrective action plan for stressed MSMEs.

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## Annexure-I

## Annexure-I referred to in reply to part (a) of the Lok Sabha Unstarred Question No. 88 for answer on 17.07.2017

Table: State/UT-wise distribution of closed MSME

| Sl. No.   | State/UT Name           |   CLOSED |
|-----------|-------------------------|----------|
| 01        | Andaman &Nicobar Island |      142 |
| 02        | Andhra Pradesh*         |     2250 |
| 03        | Arunachal Pradesh       |      167 |
| 04        | Assam                   |     6266 |
| 05        | Bihar                   |    16344 |
| 06        | Chandigarh              |      559 |
| 07        | Chhattisgarh            |    15485 |
| 08        | Dadra &Nagar Haveli     |        0 |
| 09        | Daman &Diu              |       24 |
| 10        | Delhi                   |        0 |
| 11        | Goa                     |     2754 |
| 12        | Gujarat                 |    34945 |
| 13        | Haryana                 |    10973 |
| 14        | Himachal Pradesh        |     4034 |
| 15        | Jammu &Kashmir          |     1831 |
| 16        | Jharkhand               |     3712 |
| 17        | Karnataka               |    47581 |
| 18        | Kerala                  |    34903 |
| 19        | Lakshadweep             |        0 |
| 20        | Madhya Pradesh          |    36502 |
| 21        | Maharashtra             |    41856 |
| 22        | Manipur                 |      929 |
| 23        | Meghalaya               |      665 |
| 24        | Mizoram                 |      669 |
| 25        | Nagaland                |     2395 |
| 26        | Orissa                  |     5744 |
| 27        | Puducherry              |      711 |
| 28        | Punjab                  |    24553 |
| 29        | Rajasthan               |    17342 |
| 30        | Sikkim                  |       86 |
| 31        | Tamil Nadu              |    82966 |
| 32        | Tripura                 |      424 |
| 33        | Uttar Pradesh           |    80616 |
| 34        | Uttarakhand             |     8219 |
| 35        | West Bengal             |    10708 |
|           | All India               |   496355 |

*Including Telangana

Source : Fourth All India Census of MSME, 2006-07