Overview

1. Rehabilitation of Sick SSI units

As per the guidelines issued under circular dated 16th January 2002 by Reserve Bank of India, the definition of Sick Small Scale Industry as follows:

1. If borrowal accounts of unit remains overdue for a period of exceeding one year.

OR

2. Erosion in the net worth due to accumulated cash losses to the extent of 50% of its net worth during the previous accounting year.

AND

3. Unit has been commercial production for last 2 years
2. Rehabilitation of Small Scale units

The relief and concessions being provided as per Government of Maharashtra G.R. dated 21.04.2001, 7.06.2001 and 30.03.2007.

If the sick SSI units is viable, then the concerned bank/ financial institution has to take the concerned sick unit under their nursing programmer and should intimate the concerned General Manager of the District Industries Centre indicating clearly the date of commencement of nursing package and the period for which it is in operation.

On receipt of above advice from bank / financial institution, the General Manager of the District Industries Centre issues sickness certificate to such units indicating the date of commencement and period of nursing package.

Following are the services under Sick Unit Declaration:

1. Board for Industrial and Financial Reconstruction (BIFR)

Government of India has formed Board for Industrial and financial Reconstruction under Sick Industries Companies Act (BIFR) – 1985 (Special Provision) for Rehabilitation of large and medium scale units.

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Benefits

Once the unit is declared as the sick unit is entitled to get following relief and concessions from State Government.

• The principal dues of State Government / Sales Tax, Purchase tax, Additional tax, Turnover tax, Land revenue, Electricity duty, Irrigation charges etc., as also the interest thereon, may be quantified as on the date of commencement of nursing programme. The arrears so quantified can be cleared by the sick unit in maximum of 60 monthly installments at 7% interest p.a. including units benefited under the Package Scheme of Incentives (PSI) of the areas C,D, + D+, No Industry District.
• The special capital incentive approved to the SSI units under Package Scheme of Incentives will be disbursed to the sick units on priority basis.
• As per Government Resolution dated 20.11.2014, Bombay Relief Undertaking Act 1958 is to make temporary provision for industrial relations and other matters to enable the state Government to conduct or to provide loan, guarantee or financial assistance for the conduct of, certain industrial under takings as a measure of preventing unemployment or of unemployment relief.

At District level, “District Level Sick Unit Rehabilitation Committee” which is formed under the Chairmanship of the Collector of the respective districts for taking progress of revival of sick SSI units and problems faced by SSI units getting finance from banks. The members of the committee consist of the Lead Bank Officers, Bankers, Industrial Associations and Industries Representatives. The General Managers of District Industries Centers is member Secretary.

Eligibility Criteria

As per the guidelines issued under circular dated 16th January 2002 by Reserve Bank of India, the definition of Sick Small Scale Industry as follows:

1. If borrowal accounts of unit remains overdue for a period of exceeding one year.

OR

2. Erosion in the net worth due to accumulated cash losses to the extent of 50% of its net worth during the previous accounting year.

AND

3. Unit has been commercial production for last 2 years.