Lok Sabha Question No. 3496 (UNSTARRED), answered on 2024-12-17
Subject: Sick Industrial Units
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Chamala Kiran Kumar Reddy

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

## LOK SABHA

UNSTARRED QUESTION NO. 3496. TO BE ANSWERED ON TUESDAY, THE 17 TH  DECEMBER, 2024.

## SICK INDUSTRIAL UNITS

## 3496.  SHRI CHAMALA KIRAN KUMAR REDDY:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the steps taken to revive sick industrial units in Telangana, particularly in the Adilabad and Nalgonda districts;
- (b) the  quantum  of  funds  allocated  and  utilised  under  the  schemes  aimed  at modernising these industries;
- (c) whether the Government has assessed the impact of inadequate support to Telangana's MSMEs;
- (d) whether a special package is under consideration for industrial development in backward regions of Telangana; and
- (e) if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) to (e): Industry is a State subject. State Governments take steps to revive sick industrial units  in  their  areas  and  adopt  different  policy  measures  to  promote  industrial development in their backward regions.

However, Government of India has taken a number of steps to strengthen, support and finance, revive and reconstruct the MSME sector which are as under:

-  To address the stress in MSME accounts in the incipient stage and facilitate their revival, the Ministry of Micro, Small and Medium Enterprises, Government  of  India,  vide  their  Gazette  Notification  dated  May  29,  2015, notified  a  'Framework  for  Revival  and  Rehabilitation  of  Micro,  Small  and Medium  Enterprises'  (FRR  for  MSMEs).  In  continuation  of  the  Gazette notification,  RBI  issued  instructions  vide  its  circular  no.  RBI/2015-16/338 FIDD.MSME & NFS.BC.No.21/06.02.31/2015-16 dated 17.03.2016.
-  Rs.5 lakh crore Emergency Credit Line Guarantee Scheme, for businesses, including  MSMEs.  The  scheme  was  operational  till  31.03.2023.  As  per  a research report dated 23.01.2023 of the State Bank of India on Emergency Credit Line Guarantee Scheme, almost 14.6 lakh MSME accounts, of which about  98.3%  of  the  accounts  were  in  the  Micro  and  Small  Enterprises categories,  were  saved  from  slipping  into  non-performing  asset  (NPA) classification.
-  Under the Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) of Ministry of MSME, guarantee is provided to Member Lending Institutions for the credit extended by them to MSEs without any collateral security or thirdparty guarantee. As announced in the Union Budget 2022-23 and 2023-24, Rs. 9,000 crore was infused into the corpus of Credit Guarantee Fund Trust for MSEs to enable an additional credit of Rs. 2.00 lakh crore, at a reduced cost of credit.
-  Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 2.7.2021.
-  Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
-  No global tenders floated for procurement up to Rs.200 crores.
-  To enhance access to credit for MSMEs through digital platforms and other innovative mechanisms for facilitating MSMEs, Trade Receivables Discounting System (TReDS), an electronic platform, facilitates the discounting  of  trade  receivables  of  MSMEs  through  multiple  financiers.  To unlock their working capital by converting their trade receivables into cash, the Government  of  India,  through  notification  dated  07.11.2024,  reduced  the turnover threshold of buyers for mandatory onboarding on the TReDS platform from Rs. 500 crore to Rs. 250 crore. Notification S.O 4845 (E) to this effect has been issued by the Ministry of MSME on 07.11.2024.

Further, as per information received from state government of Telangana, the steps taken by the Government of Telangana are as under:  -

-  In Adilabad 13 MSME units and in Nalgonda 25 MSME units are revived by Telangana Industrial Health Clinic Limited (TIHCL). 1 mega unit M/s. Sirpur Paper  Mills  in  Adilabad  and  1  large  unit  M/s.  Kumars  Metallurgical Corporation Ltd in Nalgonda have also been revived.
-  26 Lakhs in Adilabad and 47.95 Lakhs in Nalgonda have been spent so far on revival of MSMEs.

As  per  G.O.  Ms  No.  18  Dt.  21.03.2018  of  Government  of  Telangana, incentives/concessions  sanctioned  to  the  unit  of  M/s.  Sirpur  Paper  Mills  in Adilabad: -

1. 100% gross SGST reimbursement for 10 years
2. 100% exemption on stamp duty
3. Capital Subsidy 20% of investment subject to Max of Rs. 50 Cr
4. Debarked Euca for 10 years at concession
5. Secured Coal by SCCL
6. Coal supply with a concession of Rs. 1000/-  for 10 years
7. Interest subvention of 2% p.a. for 5 years
8. Electricity Duty exemption for 10 years
9. Reimbursement of power cost @Rs. 3 per unit for 3 years
10. Preference in supply of Copier / Maplitho at market rates
11.  The Government of Telangana has launched new MSME policy to address challenges faced by MSMEs in 6 major areas including financial support to MSMEs.

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