Odisha Sees 3,453 MSMEs Close Over Five Years, Reports Union Minister

Bhubaneswar: A total of 3,453 Micro, Small and Medium Enterprises (MSMEs) that were registered on the Udyam Registration Portal and Udyam Assist Platform (UAP) have closed in Odisha over the past five years, according to Union Minister of State for Micro, Small and Medium Enterprises, Sushri Shobha Karandlaje, who addressed the Rajya Sabha on Monday.

Karandlaje noted that during the same timeframe, the Udyam Registration Portal and UAP saw the registration of 24.68 lakh MSMEs in Odisha.

In response to a query from BJD Rajya Sabha MP Sasmit Patra, she explained that the Udyam Registration Portal, which was initiated on July 1, 2020, has enabled a considerable number of enterprises to register in the state from 2021-22 to 2025-26.

Data on closures by district indicated that Khordha led the state with the highest number of MSME shutdowns, totaling 601, followed by Cuttack with 293 and Ganjam with 236. Other districts experiencing closures included Baleshwar (212), Sundargarh (152), Bhadrak (151), Puri (147), Angul (117), Balangir (112), Bargarh (109), Jajpur (119), Kendrapara (101), Sambalpur (87), Jharsuguda (77), Dhenkanal (76), Nayagarh (73), Mayurbhanj (69), Koraput (52), Rayagada (44), and Kandhamal (44).

The trend showed an increase in closures year over year, with 118 units closing in 2021-22, 212 in 2022-23, 431 in 2023-24, 875 in 2024-25, and a significant surge to 1,817 in 2025-26.

Despite the closures, Odisha also experienced a notable upsurge in MSME registrations, with 24.68 lakh enterprises signing up on the Udyam Registration Portal and UAP during the same years.

Khordha again topped the list for MSME registrations, accounting for approximately 2.56 lakh units, followed by Cuttack with about 2.19 lakh and Ganjam with nearly 2.15 lakh. Baleshwar, Puri, Mayurbhanj, Jajpur, and Sundargarh also had substantial numbers of registered MSMEs.

To bolster the MSME sector, the Ministry of MSME provided 2.92 lakh credit guarantees, amounting to Rs 34,156 crore, to Micro and Small Enterprises (MSEs) in Odisha through the Credit Guarantee Scheme under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in the past five years.

Additionally, under the Prime Minister’s Employment Generation Programme (PMEGP), 16,056 micro enterprises received assistance in Odisha from 2021-22 to 2025-26, with a margin money subsidy of Rs 460.37 crore, generating an estimated 1,44,504 jobs in the state.

The government has also put in place several initiatives aimed at enhancing market access for MSMEs, including financial support under the Procurement and Marketing Support (PMS) scheme, participation in trade fairs, vendor development programs, digital marketing efforts, and procurement assistance through the Government e-Marketplace (GeM).

Furthermore, the Public Procurement Policy for Micro and Small Enterprises mandates that Central Ministries, Departments, and Central Public Sector Enterprises procure 25% of their annual requirements from MSEs, with specific provisions reserved for women and SC/ST entrepreneurs.