Over 19,000 micro and small units turn sick in AP

A total of 19,481 units under the micro and small scale (MSE) category in the state reported sick as at the end June, 2013, according to a report prepared by the regional office of Reserve Bank of India. Of this about 6,500 units became sick just in the first quarter of the current year ending June, 2013 under the impact of power crisis, it said. The total outstanding credit of these sick units stood at Rs 1,256.54 crore.

Quoting these figures, the Federation of Small and Medium Enterprises in a press release said over 4 million workers and close to 700,000 entrepreneurs lost their livelihood in the past four years mainly on account of power crisis in the state. Non performing assets in the MSE category rose to Rs 3,025 crore in June 30, 2013, from Rs 2,589 crore in March in the current year.

While 7,818 sick units were reported to be potentially viable, only 3,527 units were put under nursing, according to the press release.

The federation urged the RBI to hasten the process of rehabilitation of these units at the earliest.