Overview

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.

The industrial units who have lost its net worth, approach BIFR for registration under Sick Industrial Company Act and declares the sick company under 3(1) SICA Act-1985.

After declaring Sick Unit, BIFR appoints Operating Agency (Bank) to prepare the Draft Rehabilitation Scheme (DRS) for sick industrial company. Before sanctioning of Draft Rehabilitation Scheme, DRS is circulated to all concern agencies and parties for their comments.

Comments are submitted to Operating Agency for incorporating in DRS. BIFR discusses the Draft Rehabilitation Scheme (DRS) and give direction to Operating Agency to implement the scheme.

On behalf of Government of Maharashtra, Directorate of Industries conveys the say on DRS as per the relief and concessions offered by Government of Maharashtra as per standard package G.R.dated 17.10.1990, 19.09.1992 and as amended on 30.03.2007.

Benefits

Fiscal Concessions offered

1. Arrears of principal amounts of Government dues (Sales tax, purchase tax, additional tax, turnover tax, land revenue, electricity duty, irrigation charges etc.) as on the cut-off date, may be rescheduled over a period of 2 years at a time and upto a maximum of 5 years (in special cases, on detailed justification being advanced by the Operating Agency). The rescheduled arrears would be recoverable in monthly installments carrying simple interest @ 7% per annum.
2. It is applicable in the matter of interest thereon and as well as penal interest also.

Non-Fiscal Concessions offered

1. Preferential treatment /exemption in the case of power cut/restrictions
2. Assistance in negotiation with labour through the official machinery
3. Non-insistence on guarantees of banks/institution for payment of dues by sick units to Government or Government owned Corporations

Eligibility Criteria

Criteria for declaring Large scale units:

For rehabilitation of Large Scale & Medium Scale of unit Government of India has formed Board for Industrial and financial Reconstruction (BIFR) , under Sick Industries Companies Act 1985 (Special Provision).

The Industrial Unit which has losts its net worth approach BIFR. BIFR scrutinize the application and declare unit as sick and appoints Operating Agencies to prepare rehabilitation scheme to the sick company.The relief and concessions offered by Government of Maharashtra under the standard package scheme as per Letter No. BIFR-1089 (1111)/ Ind-10-A dated 17.10.1990, & Modified Letter dt- 19.09.1992 and as amended on Govt Letter No. SUC/2007/(1/07)/Ind-10, Dated- 30.03.2007.