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GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
RAJYA SABHA
UNSTARRED QUESTION NO. 3468
TO BE ANSWERED ON: 23.03.2026
REVIVAL OF SICK AGRO AND RURAL UNITS
3468. SHRI RYAGA KRISHNAIAH:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the measures taken by Government to revive sick agro and rural units;
(b) the number of sick units closed during each of the last three years, State-wise and Union
Territory-wise;
(c) whether Government is planning to set up a Special Economic Cell for the revival of said
industries;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The Central Government supplements the efforts of the State/UT Governments
through various schemes, programmes and policy initiatives for development and promotion of
Micro, Small and Medium Enterprises (MSMEs), including the units/enterprises established in rural
areas, such as Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small
Enterprises- Cluster Development Programme, Raising and Accelerating MSME Performance, SRI
Fund, PM Vishwakarma, etc.
Further, in order to strengthen, extend financial support, revive and reconstruct MSMEs in
the country, including in rural India, Government of India has taken the various steps, which inter
alia includes the following:
i. To provide the credit, Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS),
for businesses, including MSMEs was announced during COVID-19 pandemic. The Scheme
was operational till 31.03.2023, wherein 1.13 crore guarantee were extended to MSMEs. As
per a research report dated 23.01.2023 of the State Bank of India on ECLGS, almost 14.6 lakh
MSME accounts, of which about 98.3 % of the accounts were in the Micro and Small
Enterprises categories, were saved.
ii. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
iii. Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund, which has a provision
of Rs.10,000 crore from Government of India and Rs. 40,000 crore through Private Equity /
Venture Capital funds. This Scheme is aimed at providing growth capital to the deserving and
eligible units of MSME sector.: 2 :
iv. To protect and extended relief to MSMEs from the adverse impact of the COVID-19
pandemic and to ensure the sustainability of their operations, the Ministry of Finance,
Government of India vide O.M. No. F.1/1/2023-PPD dated 11.04.2023 introduced Vivad se
Vishwas Scheme. In cases of failure by MSMEs to execute contracts during the Covid
period, 95 per cent of the forfeited amount relating to bid or performance security, will be
returned to them by government and government undertakings.
v. Scheduled commercial Banks (SCBs) were mandated not to accept collateral security in the
case of loans up to 10 lakh extended to units in the MSE sector. Banks have also been advised
to strongly encourage their branch level functionaries to avail of the Credit Guarantee cover,
including making performance in this regard a criterion in the evaluation of their field staff.
The above limit has now been enhanced to 20 lakh which shall be applicable to all new loans
to MSEs sanctioned or renewed on or after April 01, 2026.
The Ministry of MSME through Khadi and Village Industries Commission (KVIC), is
implementing the Prime Minister’s Employment Generation Programme (PMEGP). It is a central
sector scheme aimed at generating employment opportunities primarily in rural areas by assisting
prospective entrepreneurs in setting up new micro enterprises in the non-farm sector across the
country.
PMEGP assists General Category beneficiaries with Margin Money (MM) subsidy of 25% of
the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special
Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen,
Physically Handicapped, Transgenders, beneficiaries belonging to Northeastern Region (NER), Hill
and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and
25% in urban areas. The number of Micro enterprises assisted across the country under PMEGP is
given at Annexure-I.
The Ministry of MSME launched Udyam Registration Portal (URP) on 01.07.2020 to
facilitate ease of registration for MSMEs across the country, including the units/enterprises
established in urban and rural areas as well. Udyam Registration Portal does not classify the rural and
urban MSMEs. The registration is fully online, paperless and based on self-declaration. A registered
enterprise/unit becomes eligible to avail the benefit of various schemes of the Ministry of MSME,
subject to eligibility criteria.
Since the launch of URP, a total of 7.82 crore MSMEs have registered as of 28.02.2026.
Enterprises de-register or show closure on the Portal due to a number of reasons such as change in
the company owner, certificate not required anymore, duplicate registration and such other reasons.
As per the Portal since 01.07.2020, 1.37 lakh Micro Small and Medium Enterprises (MSMEs) have
closed/shut down. The number of MSMEs closed (1.37 lakhs) as a proportion of the registered
MSMEs of 7.82 crore during the same period is 0.17 %. The details of closure of enterprises/units
during the last three years are at Annexure- II.
The grievances of MSMEs are being addressed through CHAMPIONS Portal, launched in
June 2020, an ICT based system, which operates Central Control Room and 69 State Control Rooms
in hub and spoke model. Based on operational requirements, the scope of CHAMPIONS Portal has
been expanded to Banks/ Financial Institutions/ Regional Rural Banks, and CPSEs, etc.
*****Annexure-I
Number of Micro enterprises assisted across the country under PMEGP during FY 2022-23 to
FY 2024-25:
2022-23 2023-24 2024-25
No. of MM Est. No. of MM Est. No. of MM Est.
State
Units Subsidy Employ Units Subsidy Employ Units Subsidy Employ
Assisted (Rs. Cr.) ment Assisted (Rs. Cr.) ment Assisted (Rs. Cr.) ment
Andaman
121 2.03 968 135 1.34 1080 61 0.96 488
Nicobar
Andhra Pradesh 3073 129.30 24584 5577 172.00 44616 3249 143.74 25992
Arunachal
158 7.01 1264 169 17.65 1352 156 8.53 1248
Pradesh
Assam 2596 59.54 20768 2417 64.06 19336 3170 91.10 25360
Bihar 4459 121.23 35672 6837 191.76 54696 5035 150.45 40280
Chandigarh 15 0.45 120 10 0.22 80 5 0.25 40
Chattishgarh 2543 74.93 20344 2379 76.25 19032 1853 65.64 14824
Delhi 72 4.71 576 50 3.34 400 26 1.75 208
Goa 66 2.91 528 68 3.23 544 39 1.78 312
Gujarat 3071 241.83 24568 3000 321.25 24000 1783 203.64 14264
Haryana 1559 63.20 12472 1398 73.25 11184 788 42.78 6304
Himachal
930 31.50 7440 974 36.48 7792 796 29.32 6368
Pradesh
Jammu &
12023 239.94 96184 15065 282.50 120520 9863 239.41 78904
Kashmir
Jharkhand 1851 48.38 14808 2101 51.23 16808 1452 36.06 11616
Karnataka 5618 161.54 44944 4672 158.62 37376 2839 94.67 22712
Kerala 3129 73.29 25032 3389 78.82 27112 2260 58.96 18080
Ladakh 91 3.76 728 122 5.85 976 135 6.40 1080
Lakshadweep 2 0.02 16 0 - 0 0 - 0
Madhya
5957 181.30 47656 5292 185.21 42336 2626 95.62 21008
Pradesh
Maharashtra 3625 132.03 29000 2766 122.05 22128 1857 105.02 14856
Manipur 545 14.63 4360 348 8.11 2784 608 15.08 4864
Meghalaya 306 6.66 2448 280 7.25 2240 1114 34.71 8912
Mizoram 412 13.54 3296 401 17.55 3208 484 15.90 3872
Nagaland 469 15.35 3752 517 29.18 4136 1262 36.03 10096
Odisha 3880 107.32 31040 2975 93.55 23800 1867 53.43 14936
Puducherry 25 0.66 200 30 0.97 240 38 1.11 304
Punjab 1564 72.51 12512 1469 90.88 11752 970 66.74 7760
Rajasthan 2037 114.19 16296 1678 124.06 13424 916 72.48 7328
Sikkim 57 1.31 456 132 4.49 1056 316 11.45 2528
Tamil Nadu 6140 178.92 49120 6814 198.72 54512 3949 121.15 31592
Telangana 2540 102.25 20320 2503 108.12 20024 1850 82.82 14800
Tripura 703 16.89 5624 588 14.44 4704 730 18.61 5840
Uttar Pradesh 11601 378.66 92808 11689 435.29 93512 5518 219.09 44144
Uttarakhand 1803 46.32 14424 1354 41.92 10832 734 24.12 5872
West Bengal 2126 74.09 17008 1919 74.23 15352 1359 53.21 10872
Total 85167 2,722.17 681336 89118 3,093.88 712944 59708 2,202.00 477664Annexure-II
Closure of MSMEs on Udyam Portal during last three FY
Sl. No State 2023-24 2024-25 2025-26
1 Andaman and Nicobar 26 47 56
Islands
2 Andhra Pradesh 499 1,401 2,262
3 Arunachal Pradesh 2 - 67
4 Assam 47 46 1,536
5 Bihar 677 1,828 1,370
6 Chandigarh 12 31 69
7 Chhattisgarh 249 459 801
8 Delhi 203 139 218
9 Goa 61 89 154
10 Gujarat 2,307 3,534 4,860
11 Haryana 842 271 740
12 Himachal Pradesh 38 287 237
13 Jammu And Kashmir 241 566 1,235
14 Jharkhand 365 734 929
15 Karnataka 822 2,187 3,413
16 Kerala 591 1,157 1,787
17 Ladakh 3 15 15
18 Lakshadweep - 1 5
19 Madhya Pradesh 552 1,961 2,619
20 Maharashtra 4,800 9,702 13,306
21 Manipur 33 186 217
22 Meghalaya 1 - 89
23 Mizoram 5 21 40
24 Nagaland 7 16 23
25 Odisha 431 875 1,645
26 Puducherry 56 119 123
27 Punjab 65 155 858
28 Rajasthan 1,682 3,274 4,590
29 Sikkim - 1 79
30 Tamil Nadu 2,589 4,900 6,130
31 Telangana 220 1,981 2,609
32 The Dadra and Nagar 28 43 54
Haveli and Daman and
Diu
33 Tripura 10 26 69
34 Uttar Pradesh 1,444 1,368 2,781
35 Uttarakhand 234 448 672
36 West Bengal 686 1,578 2,745
Total 19,828 39,446 58,403