Lok Sabha Question No. 2889 (UNSTARRED), answered on 2020-03-11
Subject: Replacing Sick Industries with New Ones
Ministry: COMMERCE AND INDUSTRY
Asked by: Suresh Pujari

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2889.

TO BE ANSWERED ON WEDNESDAY, THE  11 TH   MARCH, 2020.

## REPLACING SICK INDUSTRIES WITH NEW ONES

## 2889.  SHRI SURESH PUJARI:

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

वाणिज्य

## एवं उद्योग मंत्री

- (a) whether the Government has any plans to set up industries in places where old Government and private industries have either been shut down or are sick causing unemployment and starvation;
- (b) whether  the  Government  will  take  up  the  matter  with  the  Government  of Odisha on the reopening of Orient Paper Mills of Brajrajnagar, Bhaskar Textile Mills of Jharsuguda, Cooperative Sugar Mills and Spinning Mills of Bargarh in Bargarh Parliament constituency; and
- (c) as  an  alternative,  whether  the  Government  will  take  over  these  industries otherwise  having  all  infrastructure  like  water  source  and  rail  connectivity  in order  to  ensure  that  alternative  industries  are  set  up  in  those  places  to mitigate  the  problems  of  workers  and  address  unemployment  problems simultaneously?

## ANSWER वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a): Setting  up  of  industries  is  primarily  the  responsibility  of  the  State Governments  and  Union  Territories.  Central  Government  does  not have independent policy regarding setting up of new industries in the country.

All  matters  relating  to  revival  /  restructuring  /  disinvestment  including closure of sick CPSEs and restarting of closed CPSEs / units of CPSEs or to making them profitable are dealt by their administrative Ministries / Departments.

Furthermore, the Reserve bank of India has issued a 'Framework for Revival  and  Rehabilitation  of  Micro,  Small  &  Medium  Enterprises (MSMEs). Under this Framework, banks have been advised to identify incipient stress in the MSME accounts and refer it to the Committees

|            | formed under the Framework for suitable Corrective Action Plan viz. rectification, restructuring and recovery.                                                                                                                                                                                                                                                   |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) & (c): | Orient Paper Mills, Brajrajnagar had requested for concessions and waiver of demands of the old disputed issues and to provide law and order protection to enable cleaning up of the site to facilitate proper assessment and submission of a concrete proposal for revival. There is no provision for rehabilitation of sick industries in the State of Odisha. |

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