(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 declared sick during the current
year; and
(d) the steps taken by the Government for 1heir revival?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE
(SHRI BALASAHEB VIKHE PATIL)
(a) and (b) The Sick Industrial Companies (Special Provisions) Act,
1985 (SICA) defines a sick industrial company as an industrial
company which has, at the end of any financial year, accumulated
losses equal to or exceeding its entire net worth. The criteria to
determine the sickness in an industrial company is that the company
should have completed five years of existence after incorporation,
employed more than 50 or more workers on any day of the 12 months
preceding the end of financial year with reference to which sickness is
claimed and should have a factory.
(c) and fd) During the calendar year 2001, cases of 463 sick companies
were registered with Board for Industrial and Financial Reconstruction
(BIFR) under he provisions of SICA. A State-wise list is enclosed as
statement.
In the case of sick industrial companies registered with BIFR, wherever
feasible, rehabilitation schemes are sanctioned for the revival of these
companies by various methods including restructuring of the capital,
induction of fresh funds by the promoters, including Govt. for public
sector units, merger with other companies, change of management, relief`s
and concessions by financial institutions, banks and Central and State Govts.
by way of reschedulement of loans etc.
Statement
State-wise list of Companies Declared Sick 1-1-2001 to 31-12-2001
SI. State No. of Cases No.
1. Andhra Pradesh 31 2. Bihar 3 3. Chandigarh 1 4. Dadra & Nagar Haveli 4 5. Goa 3 6. Gujarat 47 7 Haryana 10 8. Himachal Pradesh 1 9. Jharkhand 2 10. Kerala 6 11. Karnataka 14 12. Madhya Pradesh 19 13. Maharashtra 119 14. NCT Delhi 42 15. Nagaland 1 16. Orissa 1 17. Pondicherry 2 18. Punjab 29 19. Rajasthan 15 20. Tamilnadu 55 21. Uttar Pradesh 28 22. Uttaranchal 1 23. West Bengal 26 24. Assam 3 Total 463