LF Govt’s Initiative In Industrial Reconstruction

B Prasant

THE Bengal Left Front government’s industrial reconstruction department has recently conducted a survey of 500 existing sick and closed industries, public and private, medium and large, in the state to familiarise itself with the ground realities of industrial sickness and closure here in Bengal before grappling with the problems afresh. 

Organised by WEBCON, the survey looked into the causes of sickness and closure, probed the condition of the workplace and of the workers-employees, and examined the financial liabilities involved.

The survey revealed a plethora of relevant and hitherto unknown data.  Some examples can be cited.  Of the 500 industries surveyed, chemicals and pharmaceuticals accounted for 13 per cent, engineering and allied firms 9 per cent, electrical and electronics 8 per cent, jute 8 per cent, textile, clothing, and rubber 6 per cent, paper and allied units 6 per cent, cement 4 per cent, agro-products 4 per cent, various metals 3 per cent, food processing, mineral products, 3 per cent each, iron & steel 17 per cent, wood 1 per cent and others 8 per cent.

The number of units that are closed due to sickness is 155. Another 253 have been declared sick but remain functioning.  Five are closed due to other problems.  31 units are sick.  56 have been completely closed down for some time now.  In all these units 3,57,930 workers-employees are involved.

The sick and closed industries have at their disposal a total of more than 41,000 acres of land.  Of this amount, 23,955.71 acre of land is on lease.  17,117.33 acre is privately owned and  5.50 acre is on rent.

The causes for the sickness and closure are: lack of capital in most cases, excessive production cost, lack of modernisation, financial crisis, depression, excess manpower, overburdening rates of interest on loan, low productivity.

Several ways out of the imbroglio other than revitalisation of the sick and closed units are now under consideration.  These include product diversification, change of partnership, financial and industrial inputs improvement of infrastructure and equipment, offloading of surplus land to state government for housing purposes etc. The survey results will allow the state LF government to take the appropriate view for the revival of the sick and closed units.

The survey notes that the totality of liabilities of the units stand at Rs 1,638.28 crore, including statutory liabilities.  Other forms of liabilities of an obligatory nature stand at Rs 3,854.54 crore.

Of the 500 industries under consideration, reconstruction packages for 207 have been prepared.  Funds earmarked for the purpose stand at Rs 4,186.87 crore.  The work has been completed in 106 units and while the task is ongoing for 40 more units.