 "India has nearly 2.5 lakh sick MSME units")
New Delhi: The number of sick micro, small and medium enterprises in the country rose substantially after the revision in the definition of sickness by the Reserve Bank in November 2012, Parliament was informed today.
“The number of sick micro, small and medium enterprises (MSMEs) in March 2013 was 2,48,890. The number of sick MSMEs in March 2013 has increased from 88,635 in March 2012 on account of revision of definition of sickness made by RBI,” MoS for MSME KH Muniappa said in a reply to the Lok Sabha.[caption id=“attachment_1294785” align=“alignleft” width=“380”]
Minister of State for MSME KH Muniappa. Image courtesy PIB[/caption]
The revised guidelines for rehabilitation of sick micro and small enterprises (MSEs) issued on 1 November 2012 by the RBI provide for early detection of sickness; a viability study to form the basis of rehabilitation package to potentially viable sick MSEs; and a non-discretionary one time settlement (OTS) scheme for the MSE sector.
As per provisional data provided by RBI, 8,836 sick MSEs have been identified as potentially viable of which 4,460 are under ’nursing’ as on March 31, 2013.
The outstanding credit to MSME sector in respect of scheduled commercial banks was Rs 8,55,658 crore at March-end this year.
PTI