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Sick Units May Get Breather

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Our Economy Bureau BUSINESS STANDARD
Last Updated : Jan 28 2013 | 1:46 AM IST

The amended Exim policy for 2003-04 has proposed an extension of the period of export obligation for sick units on the basis of the draft rehabilitation schemes prepared by operating agencies appointed by the Board for Industrial and Financial Reconstruction (BIFR).

Announcing this, Commerce and Industry Minister Arun Jaitley said similar facility would be available for units outside the scope of BIFR and under the scheme of rehabilitation of the concerned states.

Among the other amnesty measures, Jaitley said the government was doing away with the actual user condition for import of second hand capital goods up to 10 years old. He also announced a reduction in penal interest rate from 24 per cent to 15 per cent for all cases of default under the Exim Policy.

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Jaitley said India cannot afford the luxury of dragging on indefinitely the process of either rehabilitation or winding- up of a sick unit and said there was a need to ensure that a sick unit is rehabilitated quickly in case it is possible to do so.

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First Published: Apr 01 2003 | 12:00 AM IST

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