State’s exit policy might give relief to 200 units

Even as the State Industries Department is struggling to address the huge demand of entrepreneurs wanting to start new units,this option has gone down well with the industry. The department is looking at these new units wanting to take over the old units and their machines. “It would benefit the new entrepreneurs as well as us,’’ said Survase.

The department is conducting a survey and also talking to these units to take up the scheme. The amenity scheme would benefit the person who has kept the unit closed and they would have to bear only the principal amount and exit from the place. “They would only have to pay the principal amount of the incentives they are availing,” he added.

Similar processes have been tried at various places. In Andhra Pradesh,the example of exit policy for sick and closed industrial units in the small and medium enterprises sector has been of help for many units. The policy helps entrepreneurs get rid of the defaulter tag and the exit route to rid of their statutory dues,bank liabilities and money owned to creditors.

With a specific timeframe given to the new unit that takes over the policy is being looked at as a win-win situation both for the entrepreneur and the bank,said senior industries officials from the state.

Entrepreneurs who have kept units closed are welcoming the initiative,however,they are hoping that there is a single institutional mechanism to deal with the multiple areas as it would make the processes quicker. “If there is one unit which can help us it would make the process simple,” said an entrepreneur.