India has over 85,000 sick micro and small enterprises, with UP at 16,280 accounting for highest number of units, Minister of Micro, Small and Medium Enterprises Mahabir Prasad said.
"As per the data compiled by the Reserve Bank of India from the scheduled commercial banks, the number of sick MSEs in the country as at the of March 2008 is 85,187," Prasad said in a written reply to Lok Sabha.
West Bengal is at the second place with 11,660 sick units, of 9.21 lakh units in it has in total. Bihar, which has over six lakh units, 8,137 are sick. There were no sick units in Mizoram, Lakshadweep and Andaman and Nicobar, Prasad said.
As per the official data, there were 1,28,46,365 MSEs in the country on March 31, 2007.
The minister further said that MSME ministry does not provide any direct financial assistance for rehabilitation of sick units.
"However, financial assistance by way of debt restructuring, including fresh loans, for rehabilitation of sick MSE is provided by primary lending institutions," Prasad said.
On December 7, the government had announced several steps for the MSME sector including extending guarantee cover under Credit Guarantee Scheme on loans from Rs 50 lakh to Rs 1 crore.