Cement, Energy and Environment

- K.L(d). NO. LJ_ L-JJOo-1/~ .JII;[d ~~IJIQil Q:he CGa:tette of 3ndia '--- "lT'l J I W"TJf 3 a'Q-"CJ'U""f (1l) 1~/\I(T 11-.,'iecfiun 3-Suh~scction (il) VTfmo;rr -n V1>iTfVm r•UI)LISIIED BY AUTilOIUTY ~.~ '<# ~.~ . ...; 29, 2015/ ~ 8, 1937 No. ll331 NEW UELIII. FU.IUAV, MAY 29, 2UISIJYAI~TIIA tt. 1 1 ='-'=7=='-""'''===="'== 'J.II "l', "<'\1 oft--.: '<PPT """"" ~ ~·n 'ft ~. 29 •rt. 2015 MINISTRY Of' MICRO,SMALL ANI) MEDIUM ENTERPRISES NOTIFICATION New Delhi,29th May, 2015 S.O. l432(E).- In exercise of the powers conferred in section 9 of the Micro, Small and Medium Enterprises Development Act, 2006, the Central Government, for the purpose of facilitating the promotion and development of Micro, Small and Medium Enterprises, hereby notifies the instructions for the Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (hereinafter referred to ns the "Framework"), which shall come into force on the date of its publication in the official Ga1.ette, namely the Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises. I. Identification of incipient stress (l) Identification by Banks ut ,;,.;ditots - Befut c d Juan acwunt uf a Micru, Smaii anJ Medium Ent~rprbc tums into aNon Pcrfomting /\:;set (NPII), banks or creditor:; nrc required to identify incipient stress in the account by mating three svb·categories under the Special Mention Account (SMA) category as given in the Table below: Special Mention Account Basis for classification Sub-categories (I) (2) SMA-0 Principal or interest payment not overdue for more than 30 days but account showing signs of incipient stress SMA-I Principal or interest payment overdue between 31-60 days SMA-2 Principal or interest payment overdue between 61-90 days (2) ldentilication by the Enterprise- Any Micro, Small or Medium Enterprise may voluntarily initiate proceedings under this Framework ifcmcrprisc reasonably apprehends failure of its business or its inability or likely inability to pay debts and before the accumulated losses ofthe enterprise equals to halfor more of its entire net worth. (3) The application for initiation of the proceedings under this Framework shall be verified by an affidavit of authorised person. (4) When such a request IS received by lender, the account should be processed as SMA-0 and the Committee under this Framework should be formed immediately. 2. Committees for Stressed Micro, Small and Medium Enterprises (I) Subject to any regulations prescribed by the Reserve Bank of India for this frame110rk, all banks shall constitute one or more Committces at such locations as may be considered necessary by the board of directors ofsuch bank to provide reasonable access to all eligible Micro, Small and Medium enterprises which have availed of credit facilities from such bank. (2) Subject ro inclusion in categories referred to in paragraph I, stressed Micro, Small and Medium Enterprises shall have access to the Committee for stressed Micro, Small and Medium Enterprises for deciding on a corrective action plan and determining the terms thereof in accordance with regulations prescribed in this Framework: Provided that where the Commillee decides that recovery is to be made as part of thecorrective action plan. the manner and method ofrecovery shall be in accordance with the existing policies approved by the board of directors of the bank which has extended credit facilities to the enterprise, subject to any regulations prescribed by the Reserve Bank ofIndia. 3. Composition ofCommittee for Stressed Micro,Small and Medium Enterprises. (I) The constitution ofthe Committee shall be as under: (a) The regional or zonal head ofthe bank, who shall be the Chairpersonof the Committee; ~b) Officer in charge of \1\e Micro, Small and Medium EnleTJlriscs Credit Dcpanment of the bank at the . \ \ ~ \ e\ w\\o s\\a\1 be t\\e member and convener of the Comn1111ee; re~IOI\a or mna Oulce ev •