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. This was informed by the Minister of State, Micro, Small and Medium Enterprises, Giriraj Singh in a written reply to a question in Lok Sabha.

As per the data, Uttar Pradesh has the highest number of sick MSMEs i.e. 84063 sick MSMEs, while Gujarat is in second place with 49382 sick MSMEs and Maharashtra at third place with 49293 sick MSMEs.

The Ministry 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, 2006-07 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 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, said minister.

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 large enterprises.

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.

However, industry body FICCI in its pre-budget memorandum for 2016-17 had inter alia suggested introduction of employment linked tax rebates to entrepreneurs to boost the MSMEs and start-ups. A rebated income-tax for small start-up businesses was also suggested to encourage small Start-ups and boost job creation.

The manufacturing segment of the Micro, Small and Medium Enterprises sector contributes about 8% to India’s GDP. There is no capital infusion of Rs. 24,000 crore under the 12th Five Year Plan to the sector.

However the Ministry of Micro Small and Medium Enterprises ( MSME) was allocated Rs. 24,124 crore as Plan Budget to boost the country’s Micro, Small and Medium Enterprises sector during the 12th Five Year Plan period (2012-17), added minister in his reply.

Image Courtesy: The Indian Express