Saurabh Gupta | 02 Jul, 2008
The Federation of Indian Micro Small and Medium Enterprises (FISME) has organized a workshop on towards Establishing A Modern Insolvency and Bankruptcy Regime for SMEs in India in New Delhi on Wednesday.

FISME has also unveiled his study on 'Insolvency and Bankruptcy: Regime and Status' in association with Prof. Bibek Debroy, Noted Economist and Dr. Lavneesh Bhandari, Indicus Analytics respectively.

"This is the first time in the history of SMEs that any chamber has organized a such type of study," said Mohan Suresh, President FISME.

"There are around 13 million SMEs, which give employment to around 32 million people, around the nation, and Insolvency & bankrupt are the leading issues in the SME sector," Dinesh Rai, Secretary, Ministry of MSME, said during his speech to the workshop.

"SMEs give 45 percent of manufacturing output of our production and plays an important role in the socio-economic development of our country, we need the proper look into the issue of sick units in SME sector," said Dinesh Rai.

"Government of India has taken several steps for enhancing the status of MSMEs includes the amendment of the MSME Act 2006, announcement of the policy package of credit to MSMEs to solve  the problem of sick SMEs in India," said Dinesh Rai.

"There is a need to expedite the process of early sickness required," he said. "I would like to ask to our finance ministry also to make provision of settlement of other issues of sick unit of SMEs."

Dinesh Rai ended his speech by saying that there is need to think on skill development and need of a new mechanism or solution for this issue.

R. Rewari, DMD, SIDBI; M R Umaji, Indian Bank’s Association; and Shardul Shroff, Amarchand Mangaldas also participated in the workshop.