Lok Sabha Question No. 435 (UNSTARRED), answered on 2017-12-18
Subject: Revival of Closed Industries
Ministry: COMMERCE AND INDUSTRY
Asked by: RAGHAV LAKHANPAL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 435.

TO BE ANSWERED ON MONDAY, THE 18 TH  DECEMBER,  2017.

## REVIVAL OF CLOSED INDUSTRIES

## 435. SHRI RAGHAV LAKHANPAL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of the financial assistance provided by the Government for setting up of new industries along with the number of persons who got employment therefrom during the last three years and the current year;
- (b) the  efforts  made  by  the  Government  to  set  up  industries  in  the  States  which  are industrially  backward  and  where  unemployment  is  rising  rapidly  as  compared  to  the other States;
- (c) the  details  of  pending  projects/proposals  received  by  the  Government  from  various States  along  with  the  reasons  for  the  delay  in  sanctioning  the  pending  projects  and efforts made by the Government for better coordination between the Union and States in this regard; and
- (d) the  number of large/medium industries closed down/gone sick during each of the last three years and the current year along with the reasons therefor and the steps taken by the Government to protect/revive these industries?

## ANSWER

## वाणिज् यएवंउद्योग मंत्रालयमेंराज् यमंत्री(श्री सी.आर.चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHR I C.R. CHAUDHARY )

(a)&(b) : Setting up of industries is primarily the responsibility of the State Governments. However,  in  order  to  promote  industries,  Department  of  Industrial  Policy  & Promotion  (DIPP)  implements  Policy/Schemes  namely,  Package  for  Special Category  States  and  North  East  Industrial  and  Investment  Promotion  Policy (NEIIPP), 2007. Details are at Annexure-I.

- (c): Data in this regard is not maintained by DIPP.

- (d): Details regarding  sick enterprises, revival/ closures of industrial units, as available are at Annexure-II .

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &(b)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 435 FOR ANSWER ON 18 th  DECEMBER, 2017.

## Department of Industrial Policy & Promotion (DIPP)

Government  has  taken  a  number  of  measures  to  promote  domestic  manufacturing  in  the country. This inter alia, includes announcement of the National Manufacturing Policy, launch of Make  in  India  initiative,  simplification  and  rationalization  of  Foreign  Direct  Investment  (FDI) Policy,  implementation  of  industrial  corridors  and  taking  of  proactive  steps  for  ease  of  doing business  environment  in  the  country.  Details  of  financial  assistance/employment  generation under schemes of DIPP are as under:-

## (i) Scheme of Package for Special Category States :

It is for providing concession/subsidy to boost industrial investment in the States of Jammu & Kashmir, Himachal Pradesh and Uttrakhand in order to reduce regional imbalance and generating  employment  opportunities  for  local  people  in  these  states.  The  details regarding employment generation and amount released are as under:-

(Rs.in Crore) & Employment Generated in number

| State            | 2014-15         | 2014-15                  | 2015-16         | 2015-16                  | 2016-17         | 2016-17                  | 2017-18 (up to Nov,2017)   | 2017-18 (up to Nov,2017)   |
|------------------|-----------------|--------------------------|-----------------|--------------------------|-----------------|--------------------------|----------------------------|----------------------------|
| State            | Amount Released | Employ- ment Gene- rated | Amount Released | Employ- ment Gene- rated | Amount Released | Employ- ment Gene- rated | Amount Released            | Employ- ment Gene- rated   |
| Jammu & Kashmir  | 37.12           | 2347                     | 0               | 3445                     | 10.17           | 3143                     | 24.93                      | Information Not Available  |
| Himachal Pradesh | 18.32           | 3970                     | 0.23            | 1190                     | 8.82            | 46028                    | 21.19                      | Information Not Available  |
| Uttara- khand    | 44.46           | 12571                    | 22.78           | 18171                    | 5.71            | 22065                    | 13.84                      | Information Not Available  |
| Total            | 99.9            | 18888                    | 23.01           | 22806                    | 24.7            | 71236                    | 59.96                      | Information Not Available  |

## (ii) North East Industrial and investment Promotion Policy (NEIIPP), 2007

It is to promote investment of industrialization in the eight States of NER. As reported by State Governments of NER, Details regarding units established and employment generated is as under:-

| Year    | Units Established (in numbers)   | Employment Generated (in numbers)   |
|---------|----------------------------------|-------------------------------------|
| 2014-15 | 3238                             | 29080                               |
| 2015-16 | 2225                             | 17327                               |
| 2016-17 | 3827                             | 53417                               |
| 2017-18 | Information Not available        | Information Not available           |

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## ANNEXURE REFERRED TO IN REPLY TO PART (d) OF THE LOK SABHA UNSTARRED QUESTION NO. 435 FOR ANSWER ON 18 th DECEMBER, 2017.

## (I) Ministry of Micro Small & Medium Enterprises (MSME)- Office of Development Commissioner MSME:

| As on          | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     | DATA ON VIABILITY POSITION OF SICK MEDIUM ENTERPRISE UNITS                     |
|----------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) | Medium Enterprises (No. of units in Actual & Amount outstanding in Rs. Crores) |
|                | Potentially Viable                                                             | Potentially Viable                                                             | Potenti ally Non- viable                                                       | Viability yet to be decided                                                    | Viability yet to be decided                                                    | Viability yet to be decided                                                    | Total Sick Unit                                                                | Total Sick Unit                                                                | Of Viable Units, those under Nursing                                           | Of Viable Units, those under Nursing                                           |
|                | No. of Units                                                                   | Amount Out- standing                                                           | No. of Units                                                                   | Amount Out- standing                                                           | No. of Units                                                                   | Amount Out- standing                                                           | No. of Units                                                                   | Amount Out- standing                                                           | No. of Units                                                                   | Amount Out- standing                                                           |
| March 31, 2014 | 1297                                                                           | 2551.93                                                                        | 1339                                                                           | 3121.76                                                                        | 272                                                                            | 880.56                                                                         | 2908                                                                           | 6554.25                                                                        | 1104                                                                           | 1889.78                                                                        |
| March 31, 2015 | 669                                                                            | 2380.13                                                                        | 1434                                                                           | 3579.67                                                                        | 322                                                                            | 1180.03                                                                        | 2425                                                                           | 7140. 36                                                                       | 490                                                                            | 1779.89                                                                        |
| March 31, 2016 | 520                                                                            | 2293.65                                                                        | 5328                                                                           | 4552.77                                                                        | 163                                                                            | 1121.63                                                                        | 6011                                                                           | 7968.08                                                                        | 327                                                                            | 1589.65                                                                        |

## Framework for revival and rehabilitation of MSMEs

In order to provide a  simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs, RBI has, in consultation with  the Ministry of  MSME, Govt. of India, issued guidelines on 'Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs)'. The salient features of the Framework are as under:-

- i) Before a loan account of an MSME turns into a Non-Performing Asset (NPA), banks or creditors should identify incipient stress in the account by creating three sub-categories under the Special Mention Account (SMA) category as given in the Framework.
2. ii) Any MSME borrower may also voluntarily initiate proceedings under this Framework.
3. iii)   Committee approach to be adopted for deciding corrective action plan.
4. iv)   Time lines have been fixed for taking various decisions under the Framework .

## (II) Department Of Heavy Industry

During the period under question, six CPSEs under Department of Heavy Industry, namely, Hindustan Photo Films  Mfg.  Co.  Ltd.,  Hindustan  Cables  Ltd.,  Tungabhadra  Steel  Products  Ltd.,  HMT  Watches  Ltd.,  HMT Chinar Watches Ltd. and HMT Bearings Ltd. have been approved for closure by the Government. In Addition, Government  has  also  decided  to  close  down  Kota  Unit  of  Instrumentation  Ltd.  (Rajasthan)  and  Tractor Division  of  HMT  Ltd.  (Haryana)  as  these  CPSEs/  units  were  suffering  with  sickness  due  to  a  number  of factors  including  poor  order  book,  shortage  of  working  capital,  surplus  manpower,  obsolete  plant  and machinery and difficulty to adjust to changing market conditions. Furthermore, Department of Heavy Industry (DHI) is considering the revival/ restructuring/ modernization plan of CPSEs namely, Heavy Engineering Corp. Ltd. BHEL-EML, Hindustan Paper Corp. Ltd., Hindustan Salts Ltd., Sambhar Salts Ltd., HMT Ltd. and HMT Machine Tools Ltd.

## (III) Department of Fertilizers

The Department of Fertilizers, Government of India, has approved revival of four closed units of FCIL located at Talcher, Ramagundam, Gorakhpur & Sindri and one closed unit of HFCL located at Barauni on nomination basis, subject to non-recourse to Government funding.

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