The
Ministry of Finance has set up a Committee for Revival of
Sick Industrial Units under its directive
of 3rd May 2000. The Committee is, interalia, required
to recommend measures for revival or otherwise of sick units.
It has been observed that the representatives of the Banks/DFIs
while considering the cases in the Committee do not raise
any objection during the meetings. However, when the finalized
recommendations are circulated to the Banks/DFIs for information
and further necessary action the same are not implemented
on one pretext or other. This practice undermines the objectives
of the Committee, and restricts resolution of cases thus giving
a bad name to the banking industry.
2.
In order to resolve the problem, the Banks/DFIs are
advised to record their reservations/objections during the
meetings with the Committee. The representatives attending
the meetings should come fully prepared and if required bring
with them necessary authority for an expeditious decision.
Once the recommendations are agreed upon by the Committee
& circulated, they should be promptly implemented in letter
and spirit by the concerned Banks/DFIs.
3.
Please acknowledge receipt.
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