The number of sick Micro, Small and Medium Enterprises (MSMEs) in Chhattisgarh have grown consistently during the past three financial years.As per provisional data compiled by the Reserve Bank of India (RBI), the number of sick MSMEs in Chhattisgarh in 2012-2013 was 3,002 with loan outstanding of Rs89.70 crore. As on March 2014 the numbers grew to 4,814 with loan outstanding of 159.47 crore and till March 2015 the number of sick units reached 6,191 with loan outstanding of Rs229.84 crore, officials said.
In 2014-15, employment also generated by MSMEs in Chhattisgarh stood at 5,821. The Central Government has taken the several steps for revival of closed/sick MSMEs such as issuing revised guidelines for rehabilitation of sick MSEs issued on November 1, 2012 by RBI, inter alia, 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, officials stated.
Notably, the Union Ministry of MSME has issued a ‘Framework for Revival and Rehabilitation of MSMEs’ vide a Gazette Notification dated May 29, 2015 for the purpose of facilitating the promotion and development of MSMEs.
Further, Small Industries Development Bank of India (SIDBI) has also introduced “Management/ Restructuring of Stressed Assets and Rehabilitation Scheme for MSMEs”. The Scheme provides for relief and concessions (in the form of re-schedulement, reduction in rate of interest, funding of overdue/ future interest and waiver etc.) as well as need based additional financial assistance for revival of MSME sick units.
In order to facilitate up-gradation of technology, Ministry of Micro, Small and Medium Enterprises is implementing Credit linked Capital Subsidy Scheme (ClCSS) under which 15% (subject to maximum of Rs15.00 lakhs) upfront subsidy on capital investment for technology upgradation is provided to micro and small enterprises for modernization of their production equipment(plant and machinery).
The allocation of funds for the scheme during financial year 2015-16 is Rs 300 crores with a physical target of 5,700 units. The Ministry is also implementing Technology and Quality Upgradation Programme (TEQUP) under National Manufacturing Competitiveness Programme (NMCP) for Technology Up-gradation of MSMEs.
Under the scheme, Government is providing subsidies for implementation of energy efficient Technologies (EET). The allocation of funds for this Central Sector Scheme during the financial year 2015-16 is Rs.10 crores. Since these schemes are Central Sector Schemes no fund is allocated State/UT-wise.
Notably, the Ministry of Micro, Small and Medium Enterprises, Government of India has already established 18 Technology Centres (TCs) earlier known as Tool Rooms (10 Nos) and Technology Development Centres (8 Nos) spread across the country.
The Technology Centre's primary focus is to support industries particularly MSMEs in the country through access to advanced manufacturing technologies , skilling manpower by offering opportunities for technical skill development to the youth at varying levels ranging from school dropouts to graduate engineers and providing technical and business advisory support to MSME entrepreneurs.
Recent evaluation studies have reported success of TCs in serving MSMEs and therefore there is a strong need to replicate these at more locations across the country so that MSMEs in the remaining states can also benefit from such centres, a Union Ministry of Micro, Small and Medium Enterprises report stated. Accordingly, the Government of India has approved to upgrade and expand the network of MSME Technology Centres across India, it stated.
Towards achieving this objective,the Uhion Ministry of MSME is in the process of establishing 15 Technology Centers (TCs) and upgrading / modernizing the existing TCs under the Technology Centre Systems Programme (TCSP).
The TCSP has been conceptualized to create an innovative eco system with four distinct components which will engage with each other to create value. The programme entails establishment of physical infrastructure which includes establishment of 15 New Technology Centers and upgrading/modernising existing Technology Centers, engaging the services of world class Technology Partner for establishing a National Portal for creating a vibrant, interactive and self sustainable technology platform to meet various needs of MSMEs.
Already 9 States have allotted around 65 acres of land free of cost and 9 more States are in the process of allotting land for this programme, it stated.Notably, the Central Government has included Durg in Chhattisgarh under its ‘Technology Centre Systems Programme (TCSP)’ in which a total of 15 new Technology Centres will be established across the country with the decision taken to also upgrade existing Technology Centres (TCs).
The total estimated cost of the programme is Rs 2,200 crore including World Bank loan assistance of USD 200 million.The establishment of new Technology Centres under World Bank assisted TCSP is under process.The programme is to be implemented over a period of six years. The Programme Steering Committee (PSC) has identified nine locations for establishment of new Technology Centres as on date, where the State Governments have offered land.