(a) whether the Government have defined thE criteria for declaring a company sick;
(b) if so, the deciding factors in this regard;
(c) the state-wise number of companies declare sick during the current year; and
(d) the steps taken by the Government for the revival?
THE MINISTER OF STATE IN THE MINISTRY FINANCE (SHRI BALASAHEB VIKHE PATH) :
(a) and Yes, Sir. As per The Sick Industrial Companies (Spec Provisions) Act, 1985 the
sick industrial company mean. industrial company (being company registered for not lesj than
five years) which has at the end of any financial ye accumulated losses equal to or exceeding
its entire worth.
(c) As per Board for Industrial and Financ Reconstruction (BIFR)the details regarding
state-number of companies declared sick during the year; (upto 30.9.2000) are given in the
statement enclosed.
(d) Rehabilitation of sick units registered with BIFR are done in accordance with the
provisions of Sick Industrial Companies (Special Provisions) Act, (SICA) 1985. In feasible
cases, rehabilitation schemes are sanctioned for the revival of the sick companies which
include various measures like restructuring the equity, induction of fresh funds by the
promoters, merger with the other companies, change of management, provision for working
capital and term loans by banks and financial institutions. Reliefs and concessions from
various other concerned parties also form part of the schemes.