Lack of accuracy in data hinders Ministry of MSME study on sick/closed small units

New Delhi, 16 Nov (KNN) To study the sick/closed small business units in the past five years, the Ministry of Micro, Small and Medium Enterprises invited bids on November 12, 2021.

The entire research is expected to be completed in two months.

All the data of registered MSMEs will be sourced through Udyam Portal, Udyog Aadhar Registration and EM-II.

However, the government is facing problem in conducting this research as due to lack of accuracy in the data stored with not enough information on sick/closed units.

As per the Micro, Small and Medium Enterprises Development Act, a micro and small is said to have become sick if any of its borrower accounts remains a non-performing asset for three months or more, or when accumulated losses erode an enterprise’s net worth to the extent of 50 percent during the previous accounting year.

This initiative by the Central Government has also received its support from various MSME associations, calling it a positive step.