State turns focus on revival of sick industries

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.

Source: The New Indian Express

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