ORIGIN & CONCEPT OF P.P.L.R.P.

The current scenario of MSMEs has been stressful with the striking breakdown during the Covid-19 pandemic, earlier it was Demonetization / GST etc. were there.

So for a quite long time these were major reason which triggers the hampering of this Segment.

This article is based on addressing the Scenario of stress in the MSME industry with latest entrant of addressing Stress in the form of PPIRP (Pre-Packaged Insolvency Resolution Process) concept.

As it is well-known fact that several industries, labourers and workers collaborating for the imminent master plan for escalating productivity were left in extreme hardships due to the lack of volatile environment across the markets. While activities resumed following the escape of the lockdown, the harsh sufferings haven't diverted due to no abundant relief being provided to the MSMEs by the government. The position of MSMEs has carried an overblowing insolvency situation where more than 41% of the start-ups and smallscale industries have exhausted their utilities or have funds of one month left.

Last year the government had decided to remove the difference between the definition of manufacturing-based MSMEs and service-based MSMEs. Central Government, notifies that criteria for classification of micro, small and medium enterprises. The said notification was into effect 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 developed by this Ministry based on composite criteria of classification of MSMEs, notified vide Notification dated 26.06.2020.

What could be the best possible way out of the plight? In the context of Covid-ravaged impact on the industries, aspiring entrepreneurs have got framed into insolvency, coercing them to shut down their businesses. Finance and Corporate Affairs Minister Madam Nirmala Sitharaman had issued a draft of the Insolvency and Bankruptcy Code (Amendment Bill), 2021.