The Ministry of Micro, Small, and Medium Enterprises (MSME) has taken a new initiative to expedite the resolution of grievances related to Udyam registration certificates for MSMEs. The ministry has empowered its Development and Facilitation Offices (DFOs) in various state capitals and industrial cities across the country to address issues related to the cancellation or modification of Udyam registration certificates.
DFOs’ Role and Responsibilities
The DFOs are the field offices of the MSME ministry that provide assistance to prospective and existing entrepreneurs, conduct industrial surveys, prepare state and district industrial profiles, organize entrepreneurship development programs, and manage various schemes. Additionally, they are involved in skill development initiatives, coordinating with state government departments/agencies, and implementing management development programs.
The ministry’s website reveals the presence of 32 DFOs and 27 branch DFOs established in state capitals and other industrial cities. The DFOs are now authorized to take action on recommendations from the Directorate of Industries for cancelling or amending Udyam Registration Certificates within a 48-hour timeframe. This delegation empowers DFOs to handle issues within their respective State/UT jurisdictions on behalf of the ministry.
Udyam Registration Process and Cancellations
Udyam registration is the online process of registering MSMEs under the Udyam portal launched by the MSME ministry on July 1, 2020. The portal allows MSMEs to make online changes to their certificates or cancel them. As of the latest available data, 3.47 crore businesses were registered with the Udyam portal, comprising 3.40 crore micro units, 5.95 lakh small enterprises, and 54,790 medium units. The total reported employment stood at 16.45 crore across these registered businesses.
According to information presented in the Lok Sabha by the Minister of State in the MSME Ministry, Bhanu Pratap Singh Verma, as of December 8, 2023, 32,298 MSMEs had cancelled their Udyam registration due to business shutdowns since the portal’s launch on July 1, 2020. In the current fiscal year, 12,611 units cancelled their registration due to business closure, nearing the FY23 count of 13,290 MSMEs withdrawing their registrations. In FY22, 6,222 MSMEs, and in FY21, 175 MSMEs, had cancelled their registrations due to business closures.