The CITU secretariat in a statement has opposed the Vajpayee government's decision to repeal Sick Industrial Companies Act (SlCA) and its replacement by National Companies Law Tribunal (NCLT) through amendment of Companies Act. Expressing deep concern over the manner in which this issue is being handled, it expressed aprehension that this is mainly intended to expedite the process of winding up and fast track liquidation of the sick companies and not for the revival of the sick industrial units, as claimed by the government.

The so-called insolvency fund, given the track record of the government at the centre, will go towards paying for retrenchment costs and other liquidating expenses. The same had happened with the "National Renewal fund", as almost the whole of it had been spent on VRS, reminded the CITU.

It was of the firm opinion that the problem of industrial sickness in India, an outcome of the faulty economic policies, should be addressed with conscious revival oriented measures, both at industry and policy making levels. Disposal of the sick industrial units, which cover vital sectors of the national economy - including various import-substituting ones, both in public and private sector - through just "fast track winding up" mechanism, will result not only in loss of several lakhs of jobs, but also loss of built in productive capacities in the indigenous industries, facilitating entry of foreign merchandise to the detriment of national interests, stated CITU. It observed that this was definitely not the solution to the problems of industrial sickness.

The CITU also expressed its total opposition to the government. move to facilitate quicker winding up of sick companies by replacement of BIFR by NCLT, instead of expeditious revival of the sick industrial units.

The CITU called upon all concerned to raise their voice demanding concrete measures to ensure revival of the sick industrial units in the country, both in public and private sector.