19-12-2012, 01:16 PM
INDUSTRIAL SICKNESS
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INTRODUCTION
INDUSTRIAL SICKNESS IS THE MATTER OF SERIOUS NATIONAL CONCERN BECAUSE OF BESIDE AFFECTING THE OWNERS, EMPLOYEES, CREDITORS AND SUPPLIERS, IT ALSO CAUSES FOR WASTES OF NATIONAL RESOURCES AND SOCIAL UNREST.
THE EXTENT OF INDUSTRIAL SICKNESS
INDUSTRIAL SICKNESS IS GROWING AT AN ANNUAL RATE OF ABOUT 28% AND 13% RESPECTIVELY IN TERMS OF THE NO. OF UNITS AND OUTSTANDING AMOUNT OF BANK CREDIT. IT IS RECKONED THAT AS OF TODAY , THERE ARE MORE THAN 2 LACK SICK UNITS WITH AN OUT STANDING BANK CREDIT OF OVER Rs.7000 crore.
Effect of Sickness
Sickness contribute to high cost economy
Effects competitiveness of economy
Sick Units
Burden on banks and budget
Consumers have to pay high cost
Restrict employment opportunities
Worsens the problem of stringency of financial resources.
Effects the availability of resources to other viable units.
Curative measures :
a) What is B.I.F.R.?
“The government of India setup the Board for Industrial and Financial Reconstruction (BIFR) in January 1987 (which became operational on May 15, 1987) for determining the preventive ameliorative remedial and other measures which were required to taken in respect of sick industrial companies.