Remedial steps to revive sick SSI units: Prasad

New Delhi, Dec 8: The Government today said several remedialmeasures have been taken to rehabilitate sick small scale industries(SSI) including issuance of guidelines by the Reserve Bank of India(RBI) on debt restructuring for SMEs last year.

Citing figures from the Third All India Census of SSIs, SmallScale Industries and Agro and Rural Industries Minister Mahabir Prasadtold the Rajya Sabha during Question Hour that as many as 8,87,427units out of 22,62,401 registered units were found closed in 2001-02.

Replying to a question, he said under the credit guarantee scheme,the RBI had decided to waive collateral up to Rs 25 lakh from SSIborrowers. In fact, the Government stood guarantor of up to Rs 18.5lakh for a loan taken of Rs 25 lakh.

Describing the scheme as "important" to take the small scaleindustry forward, the Minister said that the scheme was yet to bepopularised.

Stating that "the Government is seized of the problem of sicknessamong SSIs", Mr Prasad said several schemes/programmes in the areas ofcredit, technology upgradation, marketing and infrastructuraldevelopment to help SSIs become globally competitive.

These schemes, he said, included the Credit Linked Capital Subsidyscheme, Small Industry Cluster Development Programme and ISO-9000/14001Certification Fee Reimbursement Scheme.

As Samajwadi Party member Azmi rose to make an intervention, Chairman Bhairon Singh Shekhawat said nothing would go on record.

Replying to supplementaries about the number of small scale unitswhich were viable, the Minister drew attention to the financial packageannounced by the Finance Minister last year for revival of sick units.

To a question by Samajwadi Party Amar Singh on the government'sresponse to a World Bank report stating that only big industrialistshad benefitted from financial sector reforms, the Minister said hewould give his reply after going through the report.

UNI