The Sailent Features of the revival scheme are:
Relaxation from ULC Act:
Grant of permission to mortgage surplus land by exempting under section 20 of the
Urban Land Ceiling Act in favour of banks / financial institutions, as proposed
in the Industrial Investment Promotion Policy 2005-20101.
Healthy Industrial Relation:
The Labour department would take pro-active action for amicable settlement of disputes
between management and representatives of labour so as to ensure success of the
rehabilitation package with the cooperation of the workers.
Interest rabate to Banks / Financial Institutions:
The backbone of the new revised policy is to encourage the Banks/Financial institutions
for servicing the sick units and provide a rehabilitation package for their quick
revival to join the main stream. 6% interest subsidy will be provided to all identified/eligible
sick units, subject to maximum of Rs.2.00 lakhs per year for a maximum period of
three years. However, the component of the interest to be reimbursed shall be projected
by the financing bank to the State Level Committee after following the guidelines.
Once the State Level Committee accepts the proposal, the Commissioner of Industries
shall draw the eligible interest subsidy on annula basis and reimburse to the Financing
Deferment of CT Arrears:
Arrears of payment of purchase tax, sales tax and interest towards non-payment of
sales tax shall be deferred for 3 years from the date of grant of revival package.
The amount so deferred will be recovered in six equal half-yearly installments effective
after three years tax holiday.
Relief in Energy Charges:
The following concessions will be provided to the sick units basing, on their option
of repayment of dues in any of the following modes.
- If the sick industrial unit under consideration has to pay arrears of CC charges,
it may be given choice either to pay the entire arrears of CC charges up to date
of disconnection with interest and 4 months minimum charges during closure period
without interest + CMD charges in one lumpsum for new connection, the percentage
of interest charged by APTRANSCO/DISCOM on the arrears of CC charges will be subsidized
to the extent of 15% of interest charged from out of the percentage of the total
interest charges and the same will be paid to APTRANSCO subject to a maximum of
Rs.5.00 lakhs and the balance percantage of interest charges shall be borne by the
beneficiary ( which includes surcharge and penal interest etc.)
- If the Industrial unit under consideration opts for payment of arrears of
CC charges up to the date of disconnection with interest and 4 months minimum charges
during closure period without interest + CMD charges in 3 annual installments then
it will be permitted to pay by 1/3 of the dues each year, with reimbursement of
15% of the interest charged from out of the percentage of the total interest charged
to APTRANSCO by Government, subject to a maximum of Rs.3.00 lakhs per year for a
period of three years, and the balance percentage of interest charges shall be borne
by the beneficiary ( which includes surcharge and penal interest etc.).