Back 1 Name of the Scheme Scheme for relief to the Sick Industrial Units registered with the BIFR

& GBFIR. 2 Operative Period OTS for state Government dues as on 31/03/2010 is available as per scheme application to be submitted within Six Month of G.R. i.e. Dt. 15/07/2010 to 14/01/2011. 3 Who is eligible to get the benefit? The Sick units which are registered as an industrial unit under MSME/IEM and declared / registered as sick unit in BIFR/GBIFR are eligible to get benefit under the scheme for following purpose. 4 Assistance available: One Time Settlement of the State Government dues accrued to the date of 31/03/2010. Such sick unit desiring to make payment of outstanding dues under this OTS scheme may give their application in prescribed form and give option to make payment of such outstanding dues in the manner stipulated below: Option Period during which amount of Down outstanding dues shall be paid Payment (1) 1 (2) If sick unit makes entire payment of all the outstanding dues within 6 month of the order by the competent authority. If sick unit makes entire payment of all the outstanding dues within 18 month of the order by the competent authority. (3) 10% Relief (4) Remission of the entire amount of interest, penal interest and penalty. (i)Remission of entire amount of interest, penal interest and penalty. However, a unit has to pay simple interest @9% on the outstanding principal amount payable from the date of order issued under the scheme.

10%

5 Definition of Sick Unit ( as per RBI ): y Any of the borrowal accounts of the unit remains substandard for more than six months i.e. principal or interest, in respect of any of its borrowal accounts has remained overdue for a period exceeding one year. The requirement of overdue period exceeding one year will remain unchanged even if the present period for classification of an account as sub- standard, is reduced in due course; or
y

There is erosion in the net worth due to accumulated cash losses to the extent of 50 percent of its net worth during the previous accounting year; and

The unit has been commercial production for at least two years.

6 Conditions for eligibility to be complied by applicant unit: 1. For the purpose of calculating interest for OTS, principal outstanding dues as on 31.03.2010 will be considered. 2. The relief & concession expected from the Government of Gujarat should be critical and need based for the revival of the company. 3. There should be contribution from the promoters/banks/financial institutions in the revival scheme. For this purpose, the Operating Agency and company should provide to the Government of Gujarat the details of quantified figures of sacrifice of the promoters/banks/financial institutions in the revival scheme. 4. All the relief mentioned in this resolution are not automatically available to any sick unit. After considering the merits of the individual case, the matter of granting the relief and concession will be decided by the respective committee. 5. In the event of the Sick Unit being taken over wholly/partially by a new investor, he would be eligible for all the assistance mentioned above. 6. The unit shall be kept under observation for one year, during which it will have to pay all the current dues regularly. If it fails to pay current dues, the relief sanctioned under this Scheme will be cancelled. 7 Application Form 8 Check List 9 Procedure in brief for sanction: 1. The applicant unit will have to apply in triplicate to the office of the Industries Commissioner in a prescribed application form with required details along with the proposed rehabilitation scheme for availing reliefs and concessions. Such applications should be accompanied by a proposed rehabilitation scheme that envisages full repayment of loans and interest to the banks/financial institutions, if any, as well as outstanding dues of the State Government. Further, the application should be accompanied by the audited accounts of the unit for the preceding two years; with the auditors remarks fully dealt and complied with. 2. The cases of the sick units registered with the GBIFR will be decided by the Committee chaired by the Industries Commissioner. 3. The cases of the industrial unit declared as sick by the BIFR and having an outstanding past dues amounting to uptoRs. 10 Crores will be decided by the Committee chaired by the Chief Secretary.

4. The cases of the company declared as sick by the BIFR and having outstanding past dues amounting to more than Rs. 10 Crores will be decided by the High Power Committee chaired by the Chief Minister. 5. The proposal in prescribed format with documents as per the above checklist should be submitted to the Industries Commissionerate office, Gandhinagar. 10 Contact Officer for the further details/ query: Name: Shri G. I. Desai, Designation: Joint Commissioner of Industries (IM), Address: Block No.1 & 2, 3rd floor, UdyogBhavan, Sector-11, Gandhinagar-382 017. Phone : + 91 079 23252682 Email : icim@gujarat.gov.in