Govt Empowers DFOs To Address Udyam-Related Issues For MSMEs

The Ministry of Micro, Small, and Medium Enterprises (MSME) 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 for MSMEs.

The Ministry said that the initiative aims to expedite the resolution of grievances related to discrepancies or complaints concerning update requests. 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.

Responsibilities Laid Out For DFOs

The primary responsibilities of DFOs include providing assistance to prospective and existing entrepreneurs, conducting industrial surveys, preparing state and district industrial profiles, organizing entrepreneurship development programs, and managing 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 Udyam portal currently allows MSMEs to make online changes to their certificates or cancel them.

Cancellations So Far

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.

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.