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Last updated: 01 Dec, 2015  

giriraj-singhTHMB.jpg 'Over 5 lakh sick units in MSME sector as of March 2015'

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SME Times News Bureau | 01 Dec, 2015
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 on Monday.

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. 
 
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Govt must give support on a/c of taxes and easy funding
Jagdish aggarwal | Mon Dec 7 08:19:17 2015
Sme industry is backbone of Indian economy,there is no doubt in this.Now suffering from corrupt high taxes like central excise 12.50% service tax 14.50% yes income tax and state govt vats from 6% to 13%,the promotor singal person has to handle so much corrupt officers who threaten him by one or other reasons , why govts not make the easy system for SME industry.Second biggest problem sme industry facing is not easy and not cheap cost funding available.SME industry has to depend on banks which are exploiting the sme industry by charging high interest rates and ask for heavy collateral securities,which are not possible for everyone,hence deprived from capital and businesses do not grow. Now question is who are the regulators who makes policies for and against the SME Industry,so the banks ,regulators,govts must work or formulate policies to protect the SME industry and practical framework to revive the sick sme industry


COnvert all sick MSMS units to Food Industry
DIleep Kumar Saxena 9168232025 | Thu Dec 3 04:22:36 2015
There is plenty of scope in converting these units into Food Industry by giving them to new entrepreneur for start ups & will work as ppl are hungry for food.There is too much wastage in food stuff during transportation & storage which can be prevented by converting it into SAFE packed food which will save lots of money / labour spent on this to generate & then getting rid of this waste. Convert maximum units for storage area for food & near by unit for converting it into packed food which will generate employment & revenue at the same time. There is a big opportunity which shoud not go in vain and to be tapped carefully.


why sickness
M.ILANGOVAN | Wed Dec 2 05:18:33 2015
I am also in MSME sector facing lots of problems. Major problems we face is more Finished Goods imports coming to our country and hits our markets. More than 50% of business is lost. We can allow import of Raw materials and Machinery. But not the Finished Goods. People in the Top should consider this.


Financial burden of MSME
A.Karunakara Dhas | Wed Dec 2 04:53:59 2015
Give relief on ESI,EPF expenditure and reduce charges on power tariff


 
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