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Sick MSMEs being denied of rehabilitation, industrial districts on a verge of extinction in Faizabad

Updated: Sep 16, 2017 09:52:04am
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Sick MSMEs being denied of rehabilitation, industrial districts on a verge of extinction in Faizabad

New Delhi, Sept 16 (KNN) The Micro, Small and Medium Enterprises (MSMEs) in the Faizabad district of Uttar Pradesh that have been declared sick are struggling for sanction of rehabilitation period for the units as banks are coming down heavily.

Talking to KNN, Shahnawaz Ahmad, Chairman of Indian Industries Association (IIA), Amethi Chapter informed that the attitude towards the sector has become so neglected that in few months, the once-rich industrial hub will cease to exist.

Ahmad informed that the MSMEs are being taken for a toss by a bank in the region. Even after the unit being declared officially sick, that bank isn’t willing to grant the relaxation period for the MSMEs to revive.

He further said that as per the prescribed mechanism, once the MSME unit is declared sick, the banks are not supposed to force recovery, whereas for the sector in Faizabad, its happening opposite.

“The bank’s rude attitude has been brought to the notice of both the District Magistrate and Departmental officers, in fact the DM has given multiple notifications to the bank instructing them not to seize the unit, but the bank is openly defying the procedure as well as the notification” informed Ahmed.

Citing the recent incident in which a sick unit was seize by the bank, he informed that there seemed to be an unusual hurry on the part of the bank to lock the unit and also to sell it off, so much so that the bank is willing to dispose it off at a price lesser than the asset value.

Ahmed lamented that so far over 40-45 industries in the region, many of them from the Amethi region and the Jagdishpur region have faced the same fate, with the bank not willing to comply on one hand and the DM not doing anything more than just issuing notifications.

While the industrial sector was hopeful that the new government in the state would help the grappling MSME sector, not much has changed, except for the things to go from bad to worse, he added. (KNN/ DA)

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