15% rise in sick MSMEs in state

NASHIK: The number of sick micro, small and medium enterprises (MSMEs) in Maharashtra has increased by 15.19% during financial year 2014-15 as compared to 2013-14. The state has the second highest number of sick industries in the country after Uttar Pradesh.
The number of sick MSMEs in the state increased to 50,006 during 2014-15 as against 43,411 units during the previous financial year.These 50,006 sick units had a total loan outstanding of Rs 4,837.61 crore as of March 31, 2015. In 2013-14, the number of sick industries in the state increased by 34.03% over 32,388 units during the 2012-13.
This data was released by the Ministry of MSMEs of the central government, based on data compiled by the Reserve Bank of India (RBI).
While UP tops the list with 77,761 sick industries during 2014-15, Maharashtra is the second, followed by Gujarat with 49,003 units and Assam with 45,000 units.
The total number of sick MSME units in the country increased by 10.25 per cent to 5,16,619 sick units during 2014-15, with a loan outstanding of Rs 33,378.17 crore. This was against 4,68,397 sick units with a loan outstanding of Rs 32,869.92 crore during the previous financial year. In 2012-13, the country had 2,22,204 sick units with a loan outstanding of Rs 16,639.89 crore.
Speaking to TOI, a senior official of the Maharashtra Industrial Development Corporation (MIDC) said, “The industries have become sick due to various reasons like financial problems, internal disputes, debts to banks, workers’ issues and no market demand for products. The state government is planning to introduce an exit policy for the sick industries so that unproductive land occupied by them could be transferred to industries which are going in for an expansion or planning new projects.”
Speaking to TOI, Santosh Mandlecha, senior vice-president, Maharashtra Chamber of Commerce, Industries & Agriculture (MCCIA), said, “Though the MSMEs are the backbone of the country, the government is not serious about them. The government should take measures to provide various relief, incentives and finance at minimum rate of interest to the MSMEs.”
In Nashik, there are many sick industries in both the Satpur and Ambad industrial estates of the MIDC. These industries occupy around 90 acres of land in both MIDCs.