'Industrial clinics' to cure sick units

Andhra's industries commissionerate proposes to make state's 38,000 sick units viable

The state industries commissionerate is planning to set up 'industrial clinics' to ensure the successful revival of 38,000-odd sick units in the state.

As per the new concept being worked out, bankers and other agencies that would be involved by the commissionerate will closely monitor the performance of such units for a complete two-year period.

"Our aim is not to just restart the closed units but to make them viable industrial activity," Sameer Sarma, commissioner of industries, told Business Standard.

For the first time in India, the department has ordered a detailed survey on specific causes for the losses or closure of each of these 38,000 units spread across the state.

"Some of the promoters of these sick units still do not know what went wrong with their units. The problems are so complex that these units needed a comprehensive viability assessment, besides a thorough follow-up thereafter," Sarma said.

Keeping in line with the Congress government's election promise on revival of sick industries, the industries commissionerate has completed a huge survey by roping in the services of Small Industries Service Institute (Sisi), Andhra Pradesh Industrial and Technical Consultancy Organisation Limited (Apitco), National Institute of Small Industry Extension and Training (NSIET) and Andhra Pradesh Productivity Council.

These agencies have furnished district wise survey reports documenting the problems faced by each unit and the causes that led to the closure. The commissinerate officials have been busy analysing the reports and they are expected to come out with a consolidated report that would form the basis of the proposed revival programmes.

The department would first select those units whose promoters are genuinely seeking revival. Those which intentionally closed down their units with the motive of swindling public money and those with little hope of revival would be eliminated in the process, according to officials.

The above four agencies along with the bankers would be directly monitoring the performance and health of the units and departmental involvement would be totally minimised, according to the draft plan.

"These units would be monitored in a similar manner as doctors monitor the health condition of patients who are kept in intensive care units," Sameer Sarma said.