Page 26 - Banking Finance February 2023

ARTICLE

ORIGIN &

CONCEPT OF

P.P.I.R.P.

he current scenario of MSMEs has been stressful to the lack of volatile environment across the markets. While
T with the striking breakdown during the Covid-19 activities resumed following the escape of the lockdown, the
pandemic, earlier it was Demonetization / GST
harsh sufferings haven't diverted due to no abundant relief
etc. were there. So for a quite long time these
position of MSMEs has carried an overblowing insolvency
were major reason which triggers the hampering of this being provided to the MSMEs by the government. The
Segment. situation where more than 41% of the start-ups and small-
scale industries have exhausted their utilities or have funds
This article is based on addressing the Scenario of stress in of one month left.
the MSME industry with latest entrant of addressing Stress
in the form of PPIRP (Pre-Packaged Insolvency Resolution Last year the government had decided to remove the
Process) concept. difference between the definition of manufacturing-based
MSMEs and service-based MSMEs. Central Government,
As it is well known fact that several industries, labourers and notifies that criteria for classification of micro, small and
workers collaborating for the imminent master plan for medium enterprises. The said notification was into effect
escalating productivity were left in extreme hardships due from 01.07.2020. Also regarding UDYAM Registration,
Ministry has replaced the erstwhile process of filing of Udyog
Aadhaar Memorandum, by 'Udyam' registration on a portal
About the author developed by this Ministry based on composite criteria of
classification of MSMEs, notified vide Notification dated
A. K. Agnihotri 26.06.2020.
Senior Manager (Faculty)
Union Bank of India What could be the best possible way out of the plight? In
Staff College, Bengaluru
the context of Covid-ravaged impact on the industries,

22 | 2023 | FEBRUARY | BANKING FINANCE