Suggest Remedies for Industrial Sickness in Small Industry Sector.
Small industry sectors need remedies for industrial sickness to increase the competitive strength and viability in them.
The different remedies are as follows:
The professional management expertise should be available for the guidance of small entrepreneurs and the guidelines must be issued by the Reserve Bank of India for the operation of small units. The management expertise should acquaint the small entrepreneurs with the need for a better equity base, prescribe norms for allocation of their surplus to depreciation, retained profits and expansion programs so as to build their internal financial strength.
A programme of nursing and monitoring the sick units during infancy is very important as majority of them are dying in every second or third year of their existence. In this way, the low capacity utilization can be examined and the misuse of finds can be taken.
The priority can be given by the government in the allocation of raw materials, in the extension of marketing assistance and for those units which shows better performance certain rebates and concessions can also be given.
To tide over the bad situations soft credits can be extended to small units in order to help them.
For non-payment for the delivery of goods by small units, penal action should be taken by the government against the principals.