GOVERNMENT OF INDIA
Ministry of Micro, Small and Medium Enterprises

RAJYASABHA
UNSTARRED QUESTION NO.  4114
TO BE ANSWERED ON May 14, 2012
Survey of MSMEs in Karnataka

4114. SHRI RAJEEV CHANDRASEKHAR: 

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

(a)   whether Government  has conducted  any survey about  the number of micro, small and medium enterprises (MSMEs) which have been  closed in Karnataka;

(b)   the number of those enterprises  which are potentially  viable and could be revived; and

(c)    What action Government has taken or proposes to take to revive the closed MSMEs in the State in a time-bound manner?

ANSWER
MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI VIRBHADRA SINGH)

1. (a): Information on closure among Micro, Small and Medium Enterprises (MSMEs) in registered sector is obtained through conduct of periodic census. As per the Final Report of the Fourth   All India Census of Micro, Small and Medium Enterprises 2006-2007: Registered Sector; for which data was collected    till 2009 and the results published in 2011, the number of closed enterprises in Karnataka is 17,581.

1. As per RBI data, there were 533 potentially viable MSMEs out of

7,218 sick MSMEs in Karnataka at the end of March, 2011.

(c): The revival of sick enterprises is done through financial assistance, by way of debt restructuring,   including fresh loans for rehabilitation of MSEs by primary lending institutions, including commercial banks.  Reserve Bank of India has issued following guidelines/instructions to banks in this respect:Rehabilitation of Sick MSEs (January 2002);

1. Debt restructuring mechanism   relating to viability criteria,  prudential  norms  for restructured accounts,  provision  of additional  finance  and  time  frame  for restructuring package (September 2005); and
2. Restructuring/ Rehabilitation policy   with   non-discretionary one-time    settlement scheme for MSE Sector (May 2009).