Lok Sabha Question No. 5448 (UNSTARRED), answered on 2019-07-25
Subject: Closure of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: K. Subbarayan, Kanimozhi Karunanidhi

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

## LOK SABHA

## UNSTARRED QUESTION No.  5448 TO BE ANSWERED ON 25.07.2019

## CLOSURE OF MSMEs

## 5448.         SHRI SUBBARAYAN K.: SHRIMATI KANIMOZHI KARUNANIDHI:

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

- (a) the  number  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  registered between 2004 and 2014 and between 2014 and 2019;
- (b) the MSMEs closed during the period from 2010 to 2019 in the country and the number of MSMEs closed in Tamil Nadu between 2016-17 to 2017-18;
- (c) the number of MSMEs closed between 2014 and 2019;
- (d) the  reasons  for  such  decrease  in  number  of  MSMEs  units  and  whether  the Government has taken any steps to revive the MSMEs sector, particularly in Tamil Nadu and if so, the details thereof;
- (e) the details of credit provided to MSMEs through the banks and NBFCs during the last three years; and
- (f) whether  the  Government  proposes  to  facilitate  hassle  free  credit  facility  to MSMEs through banks and if so, the details  thereof?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a): As  per  the  Fourth  All  India  Census  of  Micro,  Small  and  Medium Enterprises (MSMEs) 2006-2007, the number of working MSMEs in registered sector were 15.64 lakhs.

The number of MSMEs which filed Entrepreneur Memorandum Part-II (EM-II) during the period 2007-08 to 2014-15 was 21.96 lakh.

As on 22.07.2019, the number of MSMEs registered on Udyog Aadhaar Portal after September, 2015 in the country is 71.60 lakhs.

- (b) & (c): As per the information received from the Reserve Bank of India (RBI), the number of sick MSME accounts in the country and Tamil Nadu as on March 31, 2016 was 486291 and 4877 respectively. The number of stressed accounts referred to the Corrective Action Plan Committees during the half year ended March 31, 2017; September  30,  2017;  March  31,  2018  and  September  30,  2018  are  100803,  87062, 130208 and 150165 respectively.

- (d): The reasons for sickness of MSMEs include lack of access to market, shortage of working capital, non-availability of raw material, power shortage, labour problems, obsolete technology and lack of managerial skills.

The  Reserve  Bank  of  India  (RBI)  has  issued  a  'Framework  for  Revival  and Rehabilitation  of  Micro,  Small  &  Medium  Enterprises  (MSMEs)  including  Tamil Nadu. Under this Framework, banks have been advised to identify incipient stress in the MSME accounts and refer it to the Committees formed under the Framework for suitable Corrective Action Plan viz. rectification, restructuring and recovery.

- (e) & (f): The credit flow  to  MSME  sector  by  all  Scheduled  Commercial  Banks during the last 3 years is given below:

| Year ended            | Amount Outstanding (in Rs. Crore)   |
|-----------------------|-------------------------------------|
| 1070129.48            | March 2017                          |
| 1149353.83            | March 2018                          |
| March 2019 1497687.10 |                                     |

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was launched by the Government of India to make available collateral-free credit to the micro  and  small  enterprise  sector.  The  number  and  amount  of  Guarantees  approved under the CGTMSE during the last 2 years is given below:

|   Year |   No. of Credit Facilities Approved (in lakhs) | Amount of Guarantees Approved ( in Rs. crore)   |
|--------|------------------------------------------------|-------------------------------------------------|
|   2.63 |                                        19065.9 | 2017-18                                         |
|   4.36 |                                        30168.6 | 2018-19                                         |

This has also helped in better credit flow to the micro and small enterprises.

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