Srinagar – In an attempt to streamline and regulate the revival of sick private and public sector industrial units in the state, the Jammu and Kashmir Government is contemplating to adopt guidelines of the Board for Industrial and Financial Reconstruction (BIFR) for the purpose.
The government has set up an eight member committee to examine and consider the recommendations of the BIFR for their adoption by it- aimed at revival of sick industrial units in the state.
The committee headed by the Principal Secretary to states Finance Department, has Principal Secretary Power Development Department, Commissioner Secretary Industries and Commerce, Directors of Industries and Commerce Srinagar/Jammu, Managing Director SIDCO, Financial Advisor PDD and Financial Advisor Industries and Commerce as its members.
Orders for constitution of the committee were issued by the state government on Wednesday under No. 967-GAD of 2012 dated 11/09/2012. The committee has been asked to submit its recommendations to the government within a period of one month.
Enumerating the terms of reference for the committee, the government has asked it to examine and consider the recommendations of the Board for Industrial and Financial Reconstructions (BIFR), in totality, its delegation, enforcement under law and its applicability.
As a specific case, the panel has also been asked to examine the case for waiver of interest and minimum charges in favour of M/S Singer India Ltd (SIL) Bari Brahmna Jammu.
Earlier this year, workers at the unit had alleged both the management and the state government of delaying the much needed concessions to the unit for its revival. Pertinently the management of SIL had approached the BIFR (Board of Industrial Financial Reconstruction) in 2005 with contention to declare the unit as sick for getting sops and other concessions from State government and other related agencies.
The committee has also been asked to look into extension of Amnesty Scheme 2004 in favour of M/S K.G Steel Industry Pvt Ltd Bari Brahmna Jammu with respect to its arrears on account of power consumption.
Pertinently, the Board for Industrial and Financial Reconstruction (BIFR) is an agency of the government of India, part of the Department of Financial Services of the Ministry of Finance, with an objective is to determine sickness of industrial companies and to assist in reviving those that may be viable and shutting down the others. The board had been setup in order to tackle the problem of industrial sickness, set up under the purview of Sick Industrial Companies (Special Provisions) Act,1985 (SICA).
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