MSME Census: Nearly 5 lakh units closed, says Minister

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SME Times News Bureau | 24 Aug, 2012
About five lakh registered micro, small and medium enterprises (MSMEs) in the country closed their operations as on March 31, 2007, Minister of State for MSME Vayalar Ravi said in a written reply in the Lok Sabha on Thursday.

"The number of persons rendered unemployed due to the closure, state-wise data, is not maintained centrally," Ravi said.

However, as per the Fourth All India Census of MSMEs with reference year 2006-07, data for which was collected till 2009 and results published in 2011, the number of persons employed is 805.24 lakhs, which grew by 69.04 percent, as compared to the Third All India Census of small-scale industries (2001-02), indicating no net loss of employment, said MSME ministry statement.

The highest number of closure by MSMEs was seen in Tamil Nadu, followed by Uttar Pradesh (80,616) Karnataka (47,581), Maharashtra (41,856), Madhya Pradesh (36,502) and Gujarat (34,945).

Ravi further said the ministry does not provide any direct finical assistance for rehabilitation of closed micro and small units.

He said financial assistance by way of debt restructuring, including fresh loans for rehabilitation of MSEs is provided by primary lending institutions including commercial banks, which provide credit to the these units.

During 2011-12, the total number of MSMEs set up rose to 2.82 lakhs compared to 2.37 lakhs in the previous year, Ravi said.