Several Sick Ssi Units In Orissa Defunct
According to the latest data compiled by the State Level Bankers Committee (SLBC)
, about 844 sick SSIs in Orissa with a loan outstanding amount worth Rs 5.9 crore have now become defunct. These non-performing units account for 32.27% of the total sick SSIs in the state.
Most of the small-scale units in Orissa have closed down in the last few years largely due to the lack of adequate credit from banks and financial institutions (FIs). The recessionary pressures have also dealt a severe blow to the small industries, thereby leading to the closure of several SSIs in the state, said Subrat Berua, proprietor of Alishan International, a small-sized food processing unit in Cuttack, Orissa.
As per the industry estimates, there are nearly 2,616 sick SSIs in Orissa, out of which, 210 units were financed by the banks till the end of August 2009. The ailing industries were provided loans worth Rs 15 crore under the nursing scheme.
Although some banks are doing their bit and providing financial support to the non-performing SSIs in Orissa, it has been quite difficult for the banks to meet the financing requirements of all the non-performing units, said a senior government official.
To prevent more units to fall under the sick category, banks and FIs in Orissa have been recommended to provide more financial assistance to the MSME sector and give wider coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to enable small-scale entrepreneurs to avail collateral-free loan up to Rs 1 crore.
by: David Parks
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