(a) the current level of industrial sickness in the country;
(b) the steps being taken/proposed to be taken to find out the reasons for
industrial sickness and for their revival in a time bound manner;
(c) the number of references made to BIFR during each of the last three
years and the number of industries recommended for revival by
BIFR, State-wise; and
(d) the number of such sick industries revived during each of the last
three years, State-wise?
THE MINISTER 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. 28 for answer on February 27, 2007 regarding Sick Industries.
(a) & (b): 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 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.
(c) & (d): 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 (c) & (d) OF LOK SABHA STARRED QUESTION NO. 28 FOR ANSWER ON 27TH FEBRUARY, 2007.
State-wise list of cases recommended by BIFR during 1.1.2004 to 31.12.2006
Sl.No States/Union No. of Units Territories 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