Steps to revive 1,262 sick units in MSME sector

NEW DELHI: The government on Friday said that 1,262 sick micro and small enterprises are being revived.

Minister of Micro, Small and Medium Enterprises Mahabir Prasad, in a written in the Rajya Sabha, said as per the RBI data the number of sick MSMEs in India is 85,187 (till March, 2008), of which 1,262 have been put under nursing.

On financial assistance for rehabilitating sick units, he said, "The ministry of MSME does not provide any direct financial assistance for rehabilitation of sick MSEs."

However, the minister said, financial assistance by way of debt restructuring, including fresh loans, is provided by prime lending institutions, including commercial banks, which give credit to the MSEs and it is an ongoing process.

Replying to another query, he said the government is considering a report Creation of a National Fund for the Unorganised Sector, submitted by the National Commission for Enterprises in the Unorganised Sector.