The state government is likely to revise the Board for Industrial and Financial Reconstruction (BIFR) and the Gujarat BIFR policy, which is meant for the revival of the sick industrial units of the state. The policy was not in effect in the state since May 2007.
The state government had promised to revise the policy in the new Industrial Policy 2009. However since then, the government had not taken any step.
Highly placed sources in the state industrial department said that, "The BIFR policy revival proposal has been cleared by the industrial department, but the issue is pending with the finance department, which is likely to be cleared soon. We have improved the policy, so as to provide help to the sick industrial units.'' Sources added that the state government has suggested several new things in the revised policy such as diagnostic studies to assess the viability of the sick units.
The diagnostic study so conducted would highlight the interventions, which need to be carried out, so as to make these industrial units functional. "With the aim of ensuring that the industrial sick units are able to adopt the recommendations which have been made in the study, professionals in the areas of technology, marketing and finance can be hired.
In order to revive the units, the government also plans to introduce certain incentives. The GoG would provide financial assistance to hire experts in the areas of technology, marketing and finance once the recommendations are implemented," said the sources.
A provision has also been made through which financial support would be provided towards the professional fees for hiring the experts. In order to recognise the need to provide financial support to the sick industrial units by way of certain key relaxations, the GoG has recommended, providing for a one time settlement of outstanding dues by sick units on a graded scale.
"Financial support will be provided on interest, for rehabilitation for a limited period. If the sick unit is being taken over wholly/partially by a new investor, he would be eligible for all the assistance given to sick unit," said the sources.
