Thursday, November 12, 2014: Industries facing the ‘insipient sickness’ in and around Hyderabad have seen a rise by 5 per cent in each quarter of the year. Many among these industries have not been able to restore effectively over the last 3-4 years, mainly due to the on-going power crisis along with the global trends. Also none of the industry had come up in the recent past which has been looked upon as a hindrance for the sector.
There was relaxation proposed by the industries over the credit norms, also on open access to power at higher costs to diesel subsidies from government and setting up a separate power discom for the sector, but nothing among them was implemented.
Industry insiders noted that the increase is massive and alarming and thus demands an immediate intervention from the government. There are over 90 per cent of the industries tagged as ‘insipient sick’ from the MSME sector.
More than 70 per cent of the small and medium industries have grown as NPA (Non Performing Assets) due to the problems coming over in last three to four years.
A Nageshwar Rao, president of Federation of AP Small Industries said, “The industries have taken the hit since the last three years and the persisting power crisis is making daily operations unviable. The worrying factor is that there has not been a single new industry in the sector setting up shop. Not only has the goodwill of the current industries been hit but the fact that there is no new industry shows that there will be no growth in the next two to three years in the sector.”
Also, the banking policies being a very crucial factor for MSME sector have not seen any changes instead of several requests to the RBI on relaxation of norms. The sector had requested RBI to allow sick industries to repay loans in a relaxed manner.
