The Hindu Business Line : Kerala Govt modifies revival scheme for SSIs

All revenue recovery actions initiated against a sick unit applying for the revival scheme will be stayed till a decision is taken on the revival proposal.

Thiruvananthapuram , Oct 4

THE State Government has modified the scheme for rehabilitation of sick small-scale industrial units in the State.

In the modified scheme, the Government has incorporated more reliefs and concessions in tandem with those being extended by the commercial banks for revival of the sick units, according to officials in the Directorate of Industries and Commerce.

The scheme will operate at both district and State levels. The application from the sick units will be first taken up at district-level rehabilitation committees chaired by District Collectors and consisting of representatives of banks and other financial institutions.

Those cases that cannot be processed at the district level will be referred to State-level inter-institutional committees chaired by the Industries Secretary.

Under the modified scheme, the Government will sanction margin money loan of up to 50 per cent of the margin insisted by the banks. This will be subject to a ceiling of Rs 2 lakh per unit and the loan will bear an annual interest rate of six per cent.

The sick units taken up for rehabilitation by the financial institutions will be eligible for project report subsidy equal to 50 per cent of the cost paid for preparing the report. This will, however, be subject to a maximum of Rs 10,000.

The General Manager of the District Industries Centre (DIC) will sanction and disburse the assistance from the funds available under the State Investment Subsidy Scheme.

Besides, 50 per cent of the cost of technical consultancy charges and technical knowhow and forming part of the approved revival plan will be reimbursed as grant to the units, subject to a ceiling of Rs 15,000.

All revenue recovery actions initiated against a sick unit applying for the revival scheme will be stayed till a decision is taken on the revival proposal by the district-level rehabilitation committee.

The District Collector will be empowered to do so on the recommendation of the General Manager of the DIC concerned.

Loans for meeting up to 75 per cent of the start-up costs will be sanctioned after ensuring the arrangements made by the unit for the margin money.

The start-up costs include repairs and maintenance of factory buildings and plant and machinery; purchase of balancing equipment forming part of the revival proposal; payment of pending electricity, sales tax and other statutory dues; and one-time settlement of old loans availed of from banks or financial institutions in cases where a different agency has come forward to extend revival finance.

While the ceiling of loan for start-up expenses will be Rs 2.5 lakh, both margin money loan and start-up loan together cannot exceed Rs 3 lakh. The loan will bear an annual interest rate of six per cent.

All dues to the Government, other than sales tax dues, will be rescheduled for a maximum period of five years and this will form part of the revival package to be approved by the district-level rehabilitation committee. In cases where the total dues exceed Rs 2 lakh, they will be rescheduled with the approval of the Government.

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