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.
The State Government intends to take the following measures for prevention of sickness
and revival of willing and viable sick industries.
Prevention of Sickness Prevention is better than cure. Periodic coordination meetings 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.
INDUSTRIAL SICKNESS IN SSI SECTOR
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 consider such revival efforts.
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.
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 rehabilitation shall be eligible for relief and concessions by banks and financial
institutions, as per the guidelines of the RBI within a specified time frame.
Such units shall be eligible for all 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.
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.
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 .
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.
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.
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.
SICKNESS IN LARGE & MEDIUM SECTORS
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 Undertakings in large and medium sector.
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
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.
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.
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.
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 to case basis.
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.