Question : REHABILITATION OF SMALL SCALE INDUSTRIES



(a) the total amount invested in the small scale sector so far and the percentage out of these industries which are sick;

(b) whether the percentage of sick Small Scale Industries has gone up in 1999;

(c) if so, the details thereof; and

(d) the measures taken by the Government for rehabilitation of such sick Small Scale Industries?

Answer given by the minister



THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SMALL SCALE INDUSTRIES AND AGRO AND RURAL INDUSTRIES (SMT. VASUNDHARA RAJE)

(a) to (d): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PART (a) to (d) IN RESPECT OF THE LOK SABHA STARRED QUESTION NO. 153 FOR REPLY ON 29.11.2000

(a), (b) & (c): The investment in the Small Scale Sector during the year 1999-2000 is estimated at Rs. 82745 crores. The data on sickness in Small Scale Industries (SSIs) is not maintained as registeration of SSI is voluntary. However the Reserve Bank of India (RBI) compiles data on sick SSIs including Village and Cottage industries financed by scheduled Commercial banks. As per the RBI, the number of sick SSIs were 3,06,221 having amount outstanding of Rs. 4313 crores at the end of March, 1999 compared to 2,21,536 SSIs having amount outstanding of Rs. 3857 crores which were sick at the end of March 1998.

(d): The Government is fully seized of the problem of industrial sickness amongst the SSI units and has taken various measures to facilitate timely identification and rehabilitation of potentially viable sick industries, which inter alia, includes institutional mechanism in the form of State Level Inter Institutional Committees, special rehabilitation cells in banks and State financial institutions and elaborate guidelines issued by the Reserve Bank of India for extending rehabilitation assistance to eligible units.