Lok Sabha Question No. 588 (UNSTARRED), answered on 2021-07-22
Subject: MSME’s Declared Sick
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Diya Kumari

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 588 TO BE ANSWERED ON 22.07.2021

## MSME's Declared Sick

588. MS. DIYA KUMARI:

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

- (a) the  details  of  number  of  small  and  medium  industries  declared  sick  in  the  country during the last three years, State/UT-wise including Rajasthan; and
- (b) the  steps  being  taken  by  the  Government  to  revive  them  in  the  states  including Rajasthan?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

- (a): The  Reserve  Bank  of  India  issued  guidelines  on  'Framework  for  Revival  and Rehabilitation  (FRR)  of  Micro,  Small  and  Medium  Enterprises'  to  Scheduled  Commercial Banks (excluding Regional Rural Banks) in March 2016, the concept of sickness no longer exists.  Under  this  Framework,  banks  have  been  advised  to  identify  incipient  stress  (well before  the  account  turns  in  to  sick  category  as  per  the  earlier  definition)  in  the  MSME accounts and refer it to the Committees formed under the Framework for suitable Corrective Action Plan viz. rectification, restructuring and recovery.  The number of Accounts referred to  the  Committee  and  Accounts  resolved  by  the  committee  for  the  half  year  ended  March, 2017 to half year ended September, 2020 are:

|       |                              | TotalMSME                                               | TotalMSME                                               |
|-------|------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| S No. | For the half year            | Accounts referred to the Committee during the half year | Accounts resolved by the Committee during the half year |
| 1     | October 2016- March 2017     | 1,00,803                                                | 1,37,282                                                |
| 2     | April 2017- September 2017   | 87,062                                                  | 95,107                                                  |
| 3     | November 2017-March 2018     | 1,30,208                                                | 1,30,473                                                |
| 4     | April 2018-September 2018    | 1,50,165                                                | 1,23,227                                                |
| 5     | November 2018-March 2019     | 1,42,275                                                | 1,46,519                                                |
| 6     | April 2019-September 2019    | 2,23,786                                                | 2,01,768                                                |
| 7.    | October 2019-March 2020      | 3,39,728                                                | 3,24,621                                                |
| 8.    | April 2020 to September 2020 | 7,51,528                                                | 8,46,371                                                |

Source: RBI

Note: Number of cases resolved by the committees is more than the cases referred due to some pending cases with the committees at the beginning of the half year which have been resolved during the period.

- (b): The Ministry of MSME implements various schemes and programmes for growth and development  of  MSME  Sector  in  the  country  including  Rajasthan.  These  schemes  and programmes  include  Prime  Minister's  Employment  Generation  programme  (PMEGP), Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI),  A  Scheme  for Promoting  Innovation,  Rural  Industry  &  Entrepreneurship  (ASPIRE),  Interest  Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee Scheme for Micro and Small Enterprises,  Micro  and  Small  Enterprises  Cluster  Development  Programme  (MSE-CDP), Credit Linked Capital Subsidy  and Technology Upgradation Scheme (CLCS-TUS).

The details of achievements under various schemes in Rajasthan (during the last three years) are given below:

Table-1 Prime Minister Employment Generation Programme (PMEGP)

| Year     |   Margin Money subsidy disbursed (Rs Lakh) |   Number of units assisted |   Estimated employment generated |
|----------|--------------------------------------------|----------------------------|----------------------------------|
| 2018-19  |                                    8174.68 |                       3025 |                            24200 |
| 2019-20  |                                    8806.83 |                       2772 |                            22176 |
| 2020-21* |                                    1077.9  |                        271 |                             2168 |

Table-2 Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)

| Financial Year   |   No. of Credit Facilities Approved |   Amount of Guarantees Approved (Rs in crore) |
|------------------|-------------------------------------|-----------------------------------------------|
| 2018-19          |                               41289 |                                       1997.79 |
| 2019-20          |                               32887 |                                       1441.52 |
| 2020-21*         |                               12594 |                                        662.75 |

Till 30-06-2021

Table-3 Micro and Small Enterprises- Cluster Development Programme (MSE-CDP)

| Year    |                                                            |                                                           |       |
|---------|------------------------------------------------------------|-----------------------------------------------------------|-------|
|         | Projects completed Infrastructure Development Centres (ID) | Projects Approved Infrastructure Development Centres (ID) | Total |
| 2018-19 | 1                                                          | 1                                                         | 2     |
| 2019-20 | 2                                                          | 9                                                         | 11    |
| 2020-21 | 9                                                          | 9                                                         | 18    |
| Total   | 12                                                         | 19                                                        | 31    |

****