The first incentive scheme, GSFC chairman IK Jadeja said, is for ``assisted units'' which have availed loans of more than Rs 15 lakh, but have defaulted in the payment of more than two instalments of interest or the principal as on November 1, 1988. Such units would get a benefit of 1 per cent waiver of penalty, provided the payment was made before March 31, 1999.

The other incentive is by way of drastic reduction in the tender fee to expedite the sale of sick units. Accordingly, the tender fee for sick units acquired by GSFC has been reduced from Rs 1,500 to Rs 500 and that for sick units for re-sale under the respective regional offices has been reduced from Rs 500 to Rs 200.

Jadeja said the incentives given againstpenalty would be credited from the date of realisation of the payments and not with retrospective effect. He hoped the measures should not only help the small and medium enterprises but also minimise the slowdown in the state's growth rate.