Four industry facilitation councils set up

By Our Special Correspondent

CHENNAI, NOV. 23. The State government has constituted four Regional Industry Facilitation Councils at Chennai, Tiruchi, Madurai and Coimbatore to deal with the problem of delayed payment to small-scale industries (SSIs).

The councils will help suppliers to collect payment from buyers if the latter fail to make any payment within 120 days, with interest at one-and-a-half times the prime lending rate (PLR) of the State Bank of India (SBI).

To utilise this opportunity, seller units can file a petition with full details to the councils for recovery of such dues through the Regional Joint Director of Industries and Commerce in Chennai and the General Manager of District Industries Centres (DICs) at Coimbatore, Madurai and Trichy in respect of other areas, according to an official press release.

Petitions received from the seller units will be examined by the council, which will instruct the supplier and buyer units concerned to appear before it on a date by issuing summons. The council will try to bring about a conciliation between the buyer and seller units. In the absence of a settlement, it will act as arbitrator and proceed for the settlement of the dispute.

It has also been announced that complete details of the `credit- linked capital subsidy scheme for technology upgradation of small-scale industries,' introduced by the Union Government with effect from October 1, 2000, are available with the DICs, District Collectors and district-level small-scale industry associations.

Under the scheme, `back-ended, need-based' capital subsidy of 12 per cent would be admissible on loans advanced to SSIs by scheduled commercial banks and State Financial Corporations.

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Section  : Southern States
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