'Only 276 SSIs viable for revival package'

Of the 39,000 registered sick units in Andhra Pradesh's small-scale industry (SSI) sector, only 276 units are found viable in a study taken up for the sick units' revival programme by the state government.

Based on a survey, the government set aside the small scale units with below Rs 5 lakh investment, terming them unviable for revival. It has chosen around 3,300 sick units which were started with more than Rs 5 lakh investment for possible assistance.

However, only 435 sick units have responded to the government notification on revival efforts. Of them only 276 units were finally found fit to be revived, B Satyanarayana, minister for industries, said here on Wednesday.

He disclosed this at a media briefing on a review meeting held by chief minister Y S Rajasekhara Reddy on the performance of industries department and industrial corporations.

It may be recalled that the Congress party has promised during the elections to implement a revival package for all the sick units. However, the government's latest move put paid to all the fervour which the proposed revival package has generated among the sick units.

K V Rao, principal secretary (industries), said that consultations were on with financial institutions and other agencies to evolve revival packages for the 276 sick units. The specific measures will be announced in a policy statement on the revival of sick units shortly, the minister said.

During the review meeting, Rajasekhara Reddy asked the industries department to bring down the interest rates on the loans offered by the state finance corporation (APSFC) to around 10 per cent from the present 12-13 per cent to afford it a competitive edge over the commercial banks, besides helping the units.

He also decided to bring the Andhra Pradesh Industrial Development Corporation (APIDC) out of the closure list and advised the body to engage in more equity-based programmes through venture capital support.

Satyanarayana said that corporations such as the AP State Trading Corporation, IDC, handicrafts corporation were realising profits.

According to the minister, the chief minister had asked the department to work out plans to ensure industrial power tariffs at the lowest levels in the country.