Lok Sabha Question No. 1810 (UNSTARRED), answered on 2024-12-05
Subject: Revival of Sick MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Kuldeep Indora

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

## LOK SABHA UNSTARRED QUESTION NO. 1810 TO BE ANSWERED ON 05.12.2024

## REVIVAL OF SICK MSMEs

## 1810.   SHRI KULDEEP INDORA:

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

- (a) whether  the Government  has  drawn  any  plan  to  ensure  enhanced  financial  support, technological upgradation, easy access to Government schemes, etc. to sick Micro, Small & Medium Enterprise (MSME) units in the country and if so, the details thereof;
- (b) whether the Government proposes comprehensive training and development programmes to upskill workers in MSMEs, if so, the details thereof; and
- (c) whether  the  Government  has  any  plan  to  constitute  dedicated  committees  to  monitor  the progress  of  MSME  revival  plans  and  timely  and  need  based  intervention  and  if  so,  the  details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): The  Reserve  Bank  of  India  (RBI)  has  issued  guidelines  on  'Framework  for  Revival  and Rehabilitation of Micro, Small and Medium Enterprises' to Scheduled Commercial Banks (excluding Regional Rural Banks) in March 2016. 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 viz. rectification, restructuring and recovery.

The  Government  has  taken  a  number  of  steps  to  enhance  financial  support,  technology upgradation and easy access to credit for the MSME sector in the country, through various schemes, programmes and policy initiatives. Some of the schemes implemented are as follows:

- i. To  facilitate  the  flow  of  credit  to  the  Micro  and  Small  Enterprises,  without  the  hassles  of collateral  and  third  party  guarantee  up  to  a  maximum  of  Rs.  5  crore,  Credit  Guarantee Scheme for Micro and Small Enterprises has been implemented.
- ii. Prime  Minister  Employment  Generation  Programme  (PMEGP)  is  a  major  credit-linked subsidy program, aimed at generating self-employment for Micro Enterprises.
- iii. Pradhan Mantri Mudra Yojana (PMMY) extends collateral free credit up to Rs. 20 lakh.
- iv. Stand-Up India (SUI) Scheme facilitates loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs. 1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one women borrower per bank branch.

- v. A network of Technology Centres/Tool Rooms has been established by Government across the  country  to  provide  access  to  advance  manufacturing  technologies  to  MSMEs,  and  to impart training to youths in partnership with academia and industry.
- vi. Other  initiatives  to  provide  new  and  indigenous  technologies  to  MSME  include  Green Investment and Financing for Transformation Scheme to help MSEs adopt green technology and  Scheme  for  Promotion  and  Investment  in  Circular  Economy  to  promote  circularity among MSEs are under implementation.
- vii. PM Vishwakarma Scheme provides end-to-end holistic support, including credit support to artisans and craftspeople in the 18 trades covered.
- viii. Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit of MSME.
- ix. Inclusion  of  Retail  and  Wholesale  traders  as  MSMEs  for  the  purpose  of  availing  Priority Sector Lending benefits, w.e.f. 02.07. 2021.
- x. To increase awareness about the benefits available through registration among MSMEs in the country, awareness programmes are conducted by the field offices of Ministry of MSME, in coordination with MSME/ Industry Departments of States/UTs concerned and other MSME stakeholders through physical workshops, social media, print media & electronic media for creating wide publicity for increasing participation from all stakeholders
7. (b): The Ministry of Micro, Small and Medium Enterprises conducts comprehensive training and development programme viz Entrepreneurship and Skill Development Programme (ESDP) Scheme, Prime Minister's Employment Generation Programme (PMEGP), Skill Upgradation and Mahila Coir Yojana, SCST Hub, Assistance to Training Institutions (ATI) Scheme, PM Vishwakarma Scheme, A Scheme  For  Promotion  of  Innovation,  Rural  Industry  &  Entrepreneurship  (ASPIRE)  and  training through Technology Centres set up across the country.
8. (c): As informed by Reserve Bank of India, in order to provide a simpler and faster mechanism to address the stress in the accounts of MSMEs, Reserve Bank of India vide circular dated March 17, 2016, FIDD.MSME & NFS.BC.No.21/06.02.31/2015-16, has put in place a framework for revival and  rehabilitation  (FRR)  of  MSME  units  having  loan  limits  up  to  25  crore.  As  per  the  FRR guidelines,  banks  shall  identify  incipient  stress  in  the  MSME  accounts  by  creating  three  subcategories  under  the  Special  Mention  Account  (SMA)  category.  On  the  basis  of  early  warning signals,  the  branch  maintaining  the  account  shall  consider  forwarding  the  stressed  accounts  with aggregate loan limits above Rs.10 lakh to a committee whereas accounts with loan limit below 10 lakhs shall be examined at branch level for corrective action plan (CAP). The resolutions under CAP may include rectification, restructuring and recovery.