State turns focus on revival of sick industries

New policy on sick industries to be rolled out by Aug 15; state to tie-up with bankers for bailing out sick and incipient industries

Published: 14th June 2016 06:45 AM  |   Last Updated: 14th June 2016 06:45 AM   |  A+A-


HYDERABAD: Telangana, which leads all states in the country in attracting investments, has now turned its attention to reviving sick industries and bailing out incipient small and medium industries, which are on the verge of becoming sick.

The state will roll out a new policy on  sick industries by August 15.

Industries minister KT Rama Rao has come out with an idea to have a tie-up with bankers for revival of sick industries in the state. Officials of the industries department are collecting the details and  are also in touch with bankers.

“Four or five bankers are in touch with us and they have agreed to the policy of reviving sick industries,” sources in the industries department told Express on Monday.

According to them, the government will provide margin money to sick and incipient industries and banks will give a matching loan. The policy is also aimed at providing easy access to credit for small and medium industries being set up by SCs, STs, minorities and women.

“We have asked the general managers of all  District Industries Centres to collect and furnish information on how many industries are located in their respective districts. How many are sick and how many are incipient? Once, we get the details, we will come to know the actual picture,” an official said.

Though department officials raised the issue of sick industries’ revival at several meetings with the Reserve Bank, there was no response.

Rama Rao, after taking charge of the industries portfolio, asked officials to come out with a policy with the support of banks.

The bankers, who agreed to the revival policy, have to discuss them at their board meetings. “After the nitty-gritty is worked out, the revival policy will be announced on August 15,” the sources said.

EODB: According to the sources, Rama Rao will visit Delhi frequently to meet officials of the Union ministry of commerce in efforts to get the required permissions for the state and also to ensure good ranking for the state in the ‘ease of doing business’ (EODB).

Even as the state’s performance was good in attracting huge investments, it was unable to claim the same due to the non-transparent working of central government’s departments concerned.

For example, the department of industrial policy and promotion (DIPP) is not placing state-wise progress in EODB and investments on public domain. “If DIPP makes public the information of all the states, then TS will be known as number one in the country in attracting investments,” the sources said.

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