CLOSURE IN REGISTERED SSI SECTOR



3.1

Closure of units in the registered SSI sector has been a continuous feature. In the First Census of Registered SSIs conducted in 1973-74, it was found that 38.2 % of the units registered till 30th November 1973 was closed. In the Second Census of Registered SSIs conducted in 1990-91, 37.25 % of the units registered till 31st March 1988 was found to be closed.

3.2

In the Third Census also, the issue of closure was investigated. The units permanently registered till 31st March 2001 which did not operate even for a single day during the reference period 2001-02 were treated as closed, in the Census. For such units, information on year of closure was also collected. Reasons for closure were not elicited in the Census, as it would be difficult to locate the large number of the concerned entrepreneurs who would only be able to furnish the information. However, this question was canvassed in the recent Sample Survey of Registered SSIs conducted during 2000-01. It was found in this survey that the main reasons for closure were 'Marketing problem', 'Finance problem', and 'Could not survive competition'. These reasons would apply to the closed units identified in the Third Census as well.

3.3

Out of a total of 22, 62,401 permanently registered units surveyed in the registered SSI Sector, 8,87,427 units (39 %) were found closed in the Third Census. Of these, 3,36,492 units (38 %) were located in rural areas. With regard to the distribution of closed units over different States/ UTs, the States of Tamil Nadu (14.33 %), Uttar Pradesh (13.78 %), Punjab (9.32 %), Kerala (8.43 %), Madhya Pradesh (7.40 %) and Maharashtra (6.11 %) had the maximum number. These six States together accounted for 59.37 % of the closed units in the country. State/UT-wise details of the closed SSI units are as follows:

 

TABLE 10: DISTRIBUTION OF CLOSED UNITS, STATE-WISE & LOCATION-WISE



 

S. No.

Name of State/ UT

No. of closed units

Percentage to
Total

   

Rural

Urban

Total

 

1.

JAMMU & KASHMIR

11288

11421

22709

2.56

2.

HIMACHAL PRADESH

4595

1914

6509

0.73

3.

PUNJAB

24385

58346

82731

9.32

4.

CHANDIGARH

52

1353

1405

0.16

5.

UTTARANCHAL

7012

5088

12100

1.36

6.

HARYANA

12454

15092

27546

3.10

7.

DELHI

189

8168

8357

0.94

8.

RAJASTHAN

12610

24237

36847

4.15

9.

UTTAR PRADESH

46378

75904

122282

13.78

10.

BIHAR

8330

12195

20525

2.31

11.

SIKKIM

65

90

155

0.02

12.

ARUNACHAL PRADESH

182

66

248

0.03

13.

NAGALAND

58

71

129

0.01

14.

MANIPUR

901

325

1226

0.14

15.

MIZORAM

194

1119

1313

0.15

16.

TRIPURA

387

690

1077

0.12

17.

MEGHALAYA

1166

742

1908

0.22

18.

ASSAM

4632

5706

10338

1.16

19.

WEST BENGAL

8467

17613

26080

2.94

20.

JHARKHAND

5604

8218

13822

1.56

21.

ORISSA

3530

6178

9708

1.09

22.

CHHATTISGARH

19831

7999

27830

3.14

23.

MADHYA PRADESH

36484

29165

65649

7.40

24.

GUJARAT

7627

31532

39159

4.41

25.

DAMAN & DIU

439

15

454

0.05

26.

DADRA & NAGAR HAVELI

205

218

423

0.05

27.

MAHARASHTRA

10265

43978

54243

6.11

28.

ANDHRA PRADESH

14730

23852

38582

4.35

29.

KARNATAKA

15608

31003

46611

5.25

30.

GOA

1379

948

2327

0.26

31.

LAKSHADWEEP

4

12

16

0.00

32.

KERALA

48013

26819

74832

8.43

33.

TAMIL NADU

28515

98670

127185

14.33

34.

PONDICHERRY

653

1933

2586

0.29

35.

ANDAMAN & NICOBAR ISLANDS

260

255

515

0.06

All India

336492

550935

887427

100.00



3.4

State-wise distribution of closed units by the year of closure is given in table R43 at the Appendix. It was found that maximum numbers of units were closed during the years 1998 and 1999. Percentage distribution of closed units by the year of closure at all India level is depicted in the chart and the table given below:

 

TABLE 11: DISTRIBUTION OF CLOSED UNITS BY THE YEAR OF CLOSURE



 

Year

Up to 1991

1992

1993

1994

1995

1996

Percentage of closed units

12.97

4.27

3.20

4.75

7.99

8.85

Year

1997

1998

1999

2000

2001

Not recorded

Percentage of closed units

10.39

14.17

13.67

11.25

2.97

5.52