Yogi government plans to revive sick industrial units

Virendra Singh Rawat

Lucknow / Sep 29, 2020

The Uttar Pradesh government is looking to revive the sick and defunct industrial units in the state.

According to sources, a policy draft has already been prepared by Pradeshiya Industrial & Investment Corporation of UP (PICUP).

The proposal policy promises to provide incentives to the ailing industrial entities for their revival and thus job creation at the local level.

Post lockdown, more than 3.5 million migrant workers were forced to return to UP from other states, prompting the Yogi Adityanath government to adopt a multipronged approach to provide them with gainful employment in the state.

A large number of ailing industrial units, which are burdened with huge outstanding pertaining to the financial institutions, are unable to restart owing to their precarious financial condition, lack of market access and debt.

The sick and defunct industrial plants would be entitled to apply under the proposed policy within a year of its notification after the policy is approved by the state cabinet. However, those industrial entities, which had already benefited under any such previous government scheme, would be outside the ambit of the new policy.

According to estimates, 80 per cent of the MSMEs, especially the micro units, still do not have access to institutional capital and they largely depend upon the unorganised players for meeting their financial needs.