MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES(SHRI MAHABIR PRASAD)
(a): Statistics on the year-wise and state-wise number of closed micro and small enterprises
(MSEs) are not maintained centrally. However, according to the results of the Third All India
Census of MSEs with reference year 2001-02, out of 22,62,401 MSEs registered upto 31.03.2001,
39 per cent (numbering 8,87,427) enterprises were found closed. The State/UT wise distribution
of these closed enterprises is given in the Annexure I. Reserve Bank of India (RBI) compiles data
on the sick MSEs who have availed loans from scheduled commercial banks. According to RBI, the
number of sick MSEs during 2004-05, 2005-06 and 2006-07 were 1,38,042, 1,26,824 and 1,14,132
respectively. Annexure-II gives a State/UT wise break-up of sick MSEs at the end of March, 2007.
(b): The estimated contribution of MSEs units in the Gross Domestic Product (GDP) during
2004-05, 2005-06 and 2006-07 was 5.84%, 5.83% and 5.94% respectively.
(c) to (f): Various measures have been taken to facilitate timely identification and rehabilitation
of potentially viable sick MSEs. These include setting up of State Level Inter-Institutional
Committee in each State under the convenorship of RBI. Further, the RBI has issued detailed
guidelines to banks in January 2002 on detection of sickness at an early stage and taking remedial
measures, and for rehabilitation of sick MSEs identified as potentially viable. These guidelines
include, inter alia, change in the definition of sick MSEs, norms for deciding their viability,
concessional finance, etc., with a view to helping the banks in detecting sickness at an early
stage and taking corrective action for revival of the potentially viable sick MSEs. In line with
the ‘Policy Package for Stepping up Credit to Small and Medium Enterprises (SMEs)’ announced by
the Government in August 2005, the RBI has further issued guidelines in September 2005 to the
banks regarding debt restructuring mechanism for SMEs to facilitate restructuring of debt of all
eligible SMEs. The RBI has also constituted Empowered Committees at its Regional offices to review
various issues relating to SME sector particularly, the progress in SME financing and rehabilitation
of sick units. The Central Government (Ministry of Micro, Small and Medium Enterprises) does
not provide direct financial assistance for the rehabilitation/nursing of sick MSEs. Financial
assistance for rehabilitation of sick MSEs is provided by the concerned commercial banks/financial
institutions. The RBI guidelines to the banks on debt restructuring mechanism for SMEs, inter
alia, include provision of additional finance to the SMEs. Upto 31st March 2007, 1,121 accounts
amounting to Rs.685.43 crore have been subjected to restructuring by the public sector banks under
debt restructuring mechanism for SMEs, as per the data reported by the RBI.
