Bhubaneswar: With banks insisting on repayment of overdue, less than 30 per cent sick MSME units have applied for revival in the State.

According to information available with the MSME Department, just about 726 sick units were found to have applied to the Stress Committee for revival out of 2,532 eligible units in the State. The reason was the insistence of banks for overdue repayment before rehabilitation is effected.

Since the number is very low, the department has directed the Additional Director, Industries to find out how many such cases have been presented before the Committee for Stressed MSMEs and how many were considered for revival.

The Reserve Bank of India has been of the opinion that timely and adequate assistance including rehabilitation packages must begin on a proactive basis when early signs of sickness are detected. All the handholding support must be provided as per the apex bank’s guidelines so that sickness can be arrested at an early stage. All the banks must follow the broader framework for revival and rehabilitation of MSMEs strictly, the RBI said at a recent State Level Bankers’ Committee meeting.

The RBI also insisted that before a loan of an MSME turns into non performing assets, banks or creditors should identify the stress in the account and the same must be placed before the Stress Committee for Corrective Actions.

The MSME Department has requested all the banks to revisit their sick unit portfolio and provide nursing assistance whenever feasible by March 31. Viability study report of each bank must also be completed by the fiscal end.

Source: New Indian Express