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¤ Industrial Policy » Fiscal & Incentives » Industrial Sickness

Industrial Sickness

Section 23.0 :: INDUSTRIAL SICKNESS

23.1

A concerted effort for revival of willing and viable sick industries for overall industrial growth of the State, specially in view of chronic problems of sickness in small, medium and large industries in the State is among the topmost priorities of the State Government. It need not be emphasized that sickness in industries not only affects the revenue of the State but also results in unemployment and non-productive investment.

23.2

The State Government intends to take the following measures for prevention of sickness and revival of willing and viable sick industries.

23.2.1	Prevention of Sickness

	Prevention is better than cure. Periodic coordination meeting with the industrialists/ entrepreneurs and financial institutions at the IADA level with respect to the industries located in such industrial areas/ estates under the Chairmanship of Managing Director of the concerned Industrial Area Development Authority and at the divisional level under the Chairmanship of the Divisional Commissioner for the rest of areas under their respective jurisdiction shall be held in which the status of various industrial units operating in the areas/ divisions shall be reviewed to ensure early detection of sickness/ problem, and preventive measures for the same shall be taken.

23.3

INDUSTRIAL SICKNESS IN SSI SECTOR

23.3.1	For the revival of willing and viable SSI units, the State Government proposes to form a State Level Apex Body with Secretary of Industries/ Industrial Development Commissioner as its head to cosider such revival efforts..

23.3.2	The State level Apex Body for rehabilitation of sick industry would be vested with adequate powers, so that it can effectively implement the management and financial restructuring. The resolution of such Apex body shall be binding upon all the concerned departments.

23.3.3	The sick SSI units would be identified by such Apex body w.e.f. such date as per the guidelines issued by RBI. Appropriate packages of relief and concessions for such units would be approved for their rehabilitation. The units declared sick by such body and opting for rehabilitating shall be eligible for relief and concessions by banks and financial institutions, as per the guidelines of the RBI within a specified time frame.

23.3.4	Such units shall be eligible for the incentives, available to new units under this policy, provided the unit has not availed incentives as a sick unit under any earlier industrial policy.

23.3.5	Sick units shall be allowed full rebate on delayed payment surcharge during the period of sickness, if it is included in the dues of Electricity Board.

23.3.6	In case of disconnection of electricity, the sick unit shall be exempted from AMG charge and other contractual guarantee charges for the period of disconnection.

23.3.7	The balance amount of electricity dues of such sick unit after deduction of the aforesaid amount shall be paid by the unit in such installments as may be determined by such Apex body on case to case basis without any delayed payment surcharge. However, if such unit fails to pay any installment in time, for such delay in payment, it shall be liable to pay delayed payment surcharge for such duration at the rate fixed for such delayed payment surcharge.

23.3.8	The Apex Body shall periodically monitor the progress of the revival package and it shall have the competence/ authority to take such actions as it may deem fit against the defaulting party including the unit and/ or other department.

23.3.9	The State Level Apex Body would comprise of such persons/ organisations as may be notified by the State Government from time to time and published in official gazette, in which Finance Department/ Commercial Tax Department shall be necessarily represented.

23.4

SICKNESS IN LARGE & MEDIUM SECTORS

23.4.1	A committee with Industrial Development Commissioner/ Industry Secretary as its head will be constituted by the State Government to evolve suitable measures for revival of viable sick industrial units including State Public Sector Undertaking in large and medium sector.

23.4.2	The committee shall make an assessment of sick/ closed State Public Sector Undertakings and for revival of technically and economically viable such undertakings, take appropriate measures which may include manpower rationalisation/ disinvestment/ financial restructuring etc.

23.4.3	The Committee will recommend concessions and facilities including those in this policy statement, if considered necessary for revival of the such sick units. These recommendations would be placed before the Government through state Level Empowered Committee (SLEC), which would be constituted under the Chairmanship of Chief Secretary, for final decision.

23.4.4	Concessions and facilities identified under the scheme of rehabilitation prepared by the BIFR or by State Level Inter Institutional Committee of RBI (SLIIC) would be placed before the committee headed by the Industrial Development Commissioner (IDC)/ Industry Secretary for consideration and recommendation to Government through state Level Empowered Committee (SLEC) for approval.

23.4.5	Rehabilitation measures for sick/ closed but potentially viable industrial units may inter-alia include financial support/ relief and concessions or sacrifices from various Government Department/ Organisations and or additional facilities including allocation of power from SEB/ DVC and any other agency/ Statutory body/ local authority.

23.4.6	Such closed and sick industrial units which have earlier already availed various facilities due to its sickness would not ordinarily again get facilities unless the State Government may decide to extend such facilities in public interest on case basis.

23.4.7	The Government shall frame an Exit Policy so as to enable such units which do not find it possible to continue and intend to dispose off their assets and clear the bank dues.