Legislation On Sick Small Units Soon

Gurgaon, January 21: | Updated: Jan 22 2003, 05:30am hrs
Union minister for small-scale industries, Vasundhra Raje, has said that a law is in the process of enactment to mitigate the problems of sick industrial units. She said this in response to a plea made by the Gurgaon-based Confederation of Sick & Incipiently Sick Industry to look into the issue.

A spokesperson of the confederation told mediapersons that Ms Raje has asked the state chambers of commerce and industry to suggest measures to avert any serious fall-out of globalisation on the small-scale sector.

Ms Raje has said that instead of armtwisting the sick industry to recover paltry sum of the banks or state financial institutions, even of those who earnestly wish to repay the outstandings but are not able to do so, the Credit Guarantee Fund Trust has the standing instructions to rescue and retrieve the situation.

Ms Raje observed, This issue was already being pursued at appropriate forums by PHDCCI president PK Jain and his colleagues.

According to a press release of the PHDCCI, Mr PK Jain and other members had a day-long interaction with Ms Raje and SK Tuteja, Union secretary small-scale industry, on this issue and other allied aspects of India joining the World trade Organisation (WTO) in New Delhi.

Mr Jain, who is founder president of the Gurgaon Chamber of Commerce and Industry, said, Going by the assurances of the Central and the state governments something positive would take place for at least incipiently sick industry in the ensuing fiscal.