The AP Incipient Sick SSI Federation has suggested to the State Govt to constitute a team to study the implementation of the policy in TN, for rehabilitation of sick SSI units.
Source: BS :Amit Mitra,Hyderabad, May 16,2010
The State Level Bankers Committee (SLBC) of Andhra Pradesh has suggested that banks should make the rescheduling of recovery of loans from sick industries a continuous process, instead of the present system of only once, in a bid to further boost recovery efforts of sick units in the State.
Public money
This, the committee felt, should be done based on current exigencies and unforeseen circumstances, as “otherwise the public money used by the industry will remain blocked without any tangible return.”
This issue was part of the agenda at the recent SLBC meet, that was discussed at length.
“The issue will once again be taken up the SLBC's steering committee meeting that is scheduled in the next couple of weeks. After that it will be conveyed to all the banks in the State,” a senior official of the committee told Business Line.
State policy
The AP Incipient Sick SSI Federation has suggested that the State Government, while preparing the state policy for industrial production, could constitute an experts team to study the implementation of the policy in Tamil Nadu, exclusively for rehabilitation of sick SSI units.
It also pointed out that rehabilitation of sick SSI units in Andhra Pradesh is “being neglected though rehabilitation fund of Rs 20 crore is kept with APSFC, which is not utilised so far.”
The SLBC also suggested that the stipulated power cut period in a month for the industrial sector may be treated by banks as interest holiday to the MSME sector, both for term loan and working capital. Industrial units in the State had been till recently facing 13-day power cuts in a month, which has, however, now been lifted.
Working capital
It further suggested that banks should provide ad hoc credit facility to MSMEs to meet the working capital limit needs in order to make up the shortfalls that arise out of power shortage and delayed payments from customers.
As per the latest SLBC data, the total outstanding credit to the MSME sector in the State is about Rs 28,143 crore, including Rs 15,525 crore for small enterprises and Rs 7,363 crore for micro units.
Credit guarantee
Last fiscal, the total guarantee approved under the Credit Guarantee Fund Trust for micro and small enterprises in the State increased to Rs 225.03 crore from Rs 80 crore in the previous fiscal, reflecting an increase of 181 per cent.
Source:2: : :http://bankfinanceindia.blogspot.com/
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