(a) the State-wise status of industrial sickness prevailing in the industries under private
and public sector of the country;
(b) whether the Government has identified the reasons for this industrial sickness;
(c) if so, the details thereof in the various parts of the country; and
(d) the steps taken by the Government to revive them and to remove this industrial sickness?
MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI KAMAL NATH)
(a) to (d): A statement is laid on the Table of the House.
Statement referred to in reply to parts (a) to (d) of Lok Sabha Starred Question No. 68 for
answer on 20th November, 2007 regarding sick industries.
(a) to (d): Board of Industrial and Financial Reconstruction ( BIFR) maintains records of
industries in public and private sectors which register themselves with BIFR under the
provisions of the Sick Industrial Companies ( Special Provisions) Act, 1985 ( SICA).
As per the information received from BIFR, 697 cases were registered with them during the
last three years. Further, according to the BIFR, the sick industrial companies attribute
change in Government policies, managerial problems, production and technical problems,
marketing problems, financial problems, lack of adequate infrastructure, delay in sanction
and disbursement of Term Loan by financial institutions and banks and high interest costs
as the reasons for industrial sickness/closure at the time of registration with the Board.
Besides providing a policy regime that facilitates and fosters growth and development of
industries, steps taken for revival of sick industrial units, inter-alia, include setting
up of the Board of Industrial and Financial Reconstruction ( BIFR) and issue of guidelines
by Reserve Bank of India to banks for financial support and amalgamation of sick units with
healthy units. Wherever feasible, rehabilitation schemes are sanctioned for the revival of
the units registered with the BIFR, which, inter alia, include restructuring of the capital,
induction of fresh funds by the promoters, Government assistance for public sector units,
merger with other companies, relief and concessions in the form of rescheduling of dues by
Financial Institutions, banks and Government and change of management.
As per the information received from the BIFR, the number of cases registered with
them during the years 2004, 2005 and 2006 are 399, 180 and 118 respectively. During the same
period 129 cases were recommended for revival. The State-wise list of the cases recommended
for revival is given in the statement at Annexure-I. During the last three years, 228 sick
industrial units were revived. The State-wise list of the industrial units revived is given
in the statement at Annexure-II.
ANNEXURE-I
STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA STARRED QUESTION NO. 68 FOR
ANSWER ON 20TH NOVEMBER, 2007
State-wise list of cases recommended by BIFR during 1.1.2004 to 31.12.2006
Sl.No States/Union Territories No. of Units 2004 2005 2006
1 Andhra Pradesh 2 1 3 2 Delhi 6 1 5 3 Gujarat 3 6 3 4 Haryana 1 5 Himachal Pradesh 1 6 Jammu & Kashmir 1 7 Jharkhand 2 8 Karnataka 5 5 9 Kerala 1 4 10 Madhya Pradesh 2 5 11 Maharashtra 13 3 9 12 Orissa 1 13 Punjab 2 1 2 14 Rajasthan 3 2 15 Tamil Nadu 1 7 5 16 Uttar Pradesh 5 6 2 17 West Bengal 3 2 5
Total 38 44 47
Sl.No States/Union Territories No. of Units 2004 2005 2006
1 Andhra Pradesh 3 6 11 2 Assam 1 3 Chhattisgarh 1 1 4 Delhi 6 10 5 Goa 1 2 6 Gujarat 3 6 11 7 Haryana 3 1 3 8 Himachal Pradesh 2 9 Jharkhand 1 10 Karnataka 2 5 9 11 Kerala 1 3 3 12 Madhya Pradesh 1 2 13 Maharashtra 5 21 22 14 Orissa 1 2 15 Pondicherry 1 1 16 Punjab 1 4 7 17 Rajasthan 2 4 3 18 Tamil Nadu 2 6 19 19 Uttaranchal 1 3 20 Uttar Pradesh 5 4 21 West Bengal 2 4 10
Total 29 76 123