Lok Sabha Question No. 168 (UNSTARRED), answered on 2015-11-30
Subject: Revival of Sick MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: JAYSHREEBEN  PATEL, KIRRON KHER, SADASHIV KISAN LOKHANDE, VISHNU DAYAL RAM

168.

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

## LOK SABHA UNSTARRED QUESTION NO. 168 TO BE ANSWERED ON: 30.11.2015

## REVIVAL OF SICK MSMEs

SHRIMATI JAYSHREEBEN PATEL: SHRIMATI KIRRON KHER: SHRI SADASHIV LOKHANDE: SHRI VISHNU DAYAL RAM:

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

- (a) the total number of Micro, Small and Medium Enterprises (MSMEs) and total number of MSMEs closed down/become sick at present in the country, State/UT-wise;
- (b) whether  the  Government  proposes  to  formulate  any  framework  for  revival  and rehabilitation  of  the  closed  /sick  MSMEs  and  if  so,  the  details  thereof  including  the  funds allocated  and monitoring mechanism set up for the purpose;
- (c) whether majority of MSMEs receive payment only after 90 days or more from the large enterprise thereby delaying capital to get their business going;
- (d) if so, the details thereof  along with the reasons therefor; and
- (e) the corrective steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): Information on the number of Micro, Small and Medium Enterprises (MSMEs) in the sector  is  collected  by  conducting  All  India  Census  of  the  sector  periodically.  The  total number of  MSMEs in the registered sector as per Fourth All India Census of MSME, 200607 and  Entrepreneurs Memorandum Part-II filed during 2006-07 to 2014-15 are 37.75 lakh. The total number of  MSMEs in the un-registered sector as per Fourth All India Census of MSME, 2006-07 are 346.12 Lakh. The State/UT-wise details are given in Annexure-I. As per provisional  data  compiled  by  the  Reserve  Bank  of  India  (RBI)  the  number  of  sick  micro, small  and  medium  enterprises  (MSMEs)  in  March,  2015  was  5,37,286.  The  State/Union Territory-wise  position  of  sick  micro,  small  and  medium  enterprises  (MSMEs)  is  given  at Annexure-II.
- (b):   Ministry of MSME has already notified a 'Framework for Revival and Rehabilitation of MSMEs'  vide  a  Gazette  Notification  dated  29.05.2015  for  the  purpose  of  facilitating  the promotion  and  development  of  MSMEs.  Under  this  framework,  any  enterprise  can  seek revival  and  rehabilitation  benefit  through  a  Committee  constituted  by  the  banks  with representatives from State Governments, experts, regional or zonal head of the bank and the officer in charge of MSMEs credit department of the bank.

Though delayed payments is a major problem faced by the MSMEs, it is not correct to conclude that majority of MSMEs receive payment only after 90 days or more from

- (c) & d): large enterprises.
- (e): To  overcome  the  problem  of  delayed  payments,  Ministry  of  MSME  has established Micro and Small Enterprise Facilitation Councils (MSEFCs). As per provisions of chapter  V  section  18  of  MSMED  Act,  2006,  every  reference  made  to  MSEFC  should  be decided within a period of 90 days from the date of making such reference. The Government continuously follows up the matter with the State Government /UT Administration for timely disposal of the case.

*****

## Annexure-I

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 168 FOR ANSWER ON 30.11.2015.

## State wise Distribution of Number of Enterprises in Micro, Small and Medium Enterprises (MSME) sector

|           |                    | No. of Enterprises (in Lakh)                     | No. of Enterprises (in Lakh)                                                | No. of Enterprises (in Lakh)   | No. of Enterprises (in Lakh)                    |
|-----------|--------------------|--------------------------------------------------|-----------------------------------------------------------------------------|--------------------------------|-------------------------------------------------|
|           |                    | Registered                                       | Registered                                                                  | Registered                     | Unregistered                                    |
| Sl. No.   | State/UTs          | As per Fourth All India Census of MSME, 2006- 07 | As per Entrepreneurs Memorandum Part- II (EM-II) filed (2006-07 to 2014-15) | Total                          | As per Fourth All India Census of MSME, 2006-07 |
| 1         | JAMMU &KASHMIR     | 0.15                                             | 0.08                                                                        | 0.23                           | 2.86                                            |
| 2         | HIMACHAL PRADESH   | 0.12                                             | 0.06                                                                        | 0.18                           | 2.75                                            |
| 3         | PUNJAB             | 0.48                                             | 0.18                                                                        | 0.66                           | 13.97                                           |
| 4         | CHANDIGARH         | 0.01                                             | 0.01                                                                        | 0.02                           | 0.48                                            |
| 5         | UTTARAKHAND        | 0.24                                             | 0.16                                                                        | 0.40                           | 3.50                                            |
| 6         | HARYANA            | 0.33                                             | 0.20                                                                        | 0.53                           | 8.33                                            |
| 7         | DELHI              | 0.04                                             | 0.02                                                                        | 0.06                           | 5.48                                            |
| 8         | RAJASTHAN          | 0.55                                             | 1.24                                                                        | 1.79                           | 16.09                                           |
| 9         | UTTAR PRADESH      | 1.88                                             | 2.89                                                                        | 4.77                           | 42.16                                           |
| 10        | BIHAR              | 0.50                                             | 0.27                                                                        | 0.77                           | 14.20                                           |
| 11        | SIKKIM             | 0.00                                             | 0.00                                                                        | 0.00                           | 0.16                                            |
| 12        | ARUNACHAL PRADESH  | 0.00                                             | 0.00                                                                        | 0.00                           | 0.40                                            |
| 13        | NAGALAND           | 0.01                                             | 0.06                                                                        | 0.07                           | 0.37                                            |
| 14        | MANIPUR            | 0.04                                             | 0.01                                                                        | 0.05                           | 0.87                                            |
| 15        | MIZORAM            | 0.04                                             | 0.02                                                                        | 0.06                           | 0.26                                            |
| 16        | TRIPURA            | 0.01                                             | 0.02                                                                        | 0.03                           | 0.97                                            |
| 17        | MEGHALAYA          | 0.03                                             | 0.05                                                                        | 0.08                           | 0.85                                            |
| 18        | ASSAM              | 0.20                                             | 0.14                                                                        | 0.34                           | 6.42                                            |
| 19        | WEST BENGAL        | 0.43                                             | 1.03                                                                        | 1.46                           | 34.21                                           |
| 20        | JHARKHAND          | 0.18                                             | 0.16                                                                        | 0.34                           | 6.57                                            |
| 21        | ODISHA             | 0.20                                             | 0.17                                                                        | 0.37                           | 15.53                                           |
| 22        | CHHATTISGARH       | 0.23                                             | 0.11                                                                        | 0.34                           | 4.97                                            |
| 23        | MADHYA PRADESH     | 1.07                                             | 1.45                                                                        | 2.52                           | 18.26                                           |
| 24        | GUJARAT            | 2.30                                             | 3.22                                                                        | 5.52                           | 19.48                                           |
| 25        | DAMAN &DIU         | 0.01                                             | 0.01                                                                        | 0.02                           | 0.05                                            |
| 26        | DADRA &NAGARHAVELI | 0.02                                             | 0.01                                                                        | 0.03                           | 0.07                                            |
| 27        | MAHARASHTRA        | 0.87                                             | 1.37                                                                        | 2.24                           | 29.76                                           |
| 28        | ANDHRA PRADESH     | 0.46                                             | 0.22                                                                        | 0.68                           | 25.50                                           |
| 29        | KARNATAKA          | 1.36                                             | 1.66                                                                        | 3.02                           | 18.83                                           |
| 30        | GOA                | 0.03                                             | 0.01                                                                        | 0.04                           | 0.83                                            |
| 31        | LAKSHADWEEP        | 0.00                                             | 0.00                                                                        | 0.00                           | 0.02                                            |
| 32        | KERALA             | 1.50                                             | 1.03                                                                        | 2.53                           | 20.63                                           |
| 33        | TAMIL NADU         | 2.34                                             | 5.80                                                                        | 8.14                           | 30.79                                           |
| 34        | PUDUCHERRY         | 0.01                                             | 0.01                                                                        | 0.02                           | 0.34                                            |
| 35        | A &NISLANDS        | 0.01                                             | 0.01                                                                        | 0.02                           | 0.13                                            |
| 36        | TELANGANA*         | -                                                | 0.41                                                                        | 0.41                           | -                                               |
| ALL INDIA |                    | 15.64                                            | 22.11                                                                       | 37.75                          | 346.12                                          |

## Annexure-II

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 168 FOR ANSWER ON 30.11.2015.

## State- wise data on Sick Micro, Small and Medium Enterprises (MSMEs) as on   March 31, 2015 as reported by Scheduled Commercial Banks

|                     | Total Sick MSMEs         | Total Sick MSMEs   | Total Sick MSMEs   |
|---------------------|--------------------------|--------------------|--------------------|
| States/UTs          | Micro &Small Enterprises | Medium Enterprises | Total Sick MSMEs   |
| A &NIsland          | 112                      | 0                  | 112                |
| Andhra Pradesh      | 43022                    | 169                | 43191              |
| Arunachal Pradesh   | 351                      | 0                  | 351                |
| Assam               | 5050                     | 18                 | 5068               |
| Bihar               | 15659                    | 5                  | 15664              |
| Chandigarh          | 1804                     | 118                | 1922               |
| Chhattisgarh        | 6375                     | 11                 | 6386               |
| Dadra &Nagar Haveli | 61                       | 0                  | 61                 |
| Daman &Diu          | 36                       | 0                  | 36                 |
| Delhi               | 6133                     | 205                | 6338               |
| Goa                 | 2203                     | 5                  | 2208               |
| Gujarat             | 49006                    | 376                | 49382              |
| Haryana             | 15072                    | 137                | 15209              |
| Himachal Pradesh    | 2821                     | 53                 | 2874               |
| Jammu &Kashmir      | 3134                     | 49                 | 3183               |
| Jharkhand           | 9057                     | 28                 | 9085               |
| Karnataka           | 38218                    | 59                 | 38277              |
| Kerala              | 26859                    | 25                 | 26884              |
| Lakshadweep         | 0                        | 0                  | 0                  |
| Madhya Pradesh      | 18515                    | 41                 | 18556              |
| Maharashtra         | 49004                    | 289                | 49293              |
| Manipur             | 3699                     | 0                  | 3699               |
| Meghalaya           | 169                      | 0                  | 169                |
| Mizoram             | 32                       | 0                  | 32                 |
| Nagaland            | 470                      | 0                  | 470                |
| Orissa              | 19628                    | 19                 | 19647              |
| Puducherry          | 1623                     | 2                  | 1625               |
| Punjab              | 14376                    | 213                | 14589              |
| Rajasthan           | 25985                    | 12                 | 25997              |
| Sikkim              | 67                       | 0                  | 67                 |
| Tamil Nadu          | 44815                    | 299                | 45114              |
| Tripura             | 5190                     | 0                  | 5190               |
| Uttar Pradesh       | 83987                    | 76                 | 84063              |
| West Bengal         | 37652                    | 206                | 37858              |
| Uttarakhand         | 4676                     | 10                 | 4686               |
| All India           | 534861                   | 2425               | 537286             |

Source: Reserve Bank of India