AN EMINENT economist from Lucknow University Dr Arvind Mohan attributed the power crisis in the State as the major reason for the sickness of small-scale industries (SSIs) and their slow growth.
Dr Mohan was in the city to take part in a two-day workshop, organised by Institute of Entrepreneurship Development, UP, on “Sickness in the SSI sector”.
Addressing the workshop, Dr Mohan said power crisis was one of the major reasons behind the deplorable state of SSI in the State.
In support of his statement he said in early 70s, about 48 per cent of the total power available in the State was given to industries. “But from late 90s, only 23 percent of the total power available in the state is being given to industries,” stated Dr Mohan.
“On matter how much we do for the development of industrial sector of the state but all efforts are rendered futile due to power crisis,” added Dr Mohan.
“Power meant for industries is being diverted to farmers and domestic consumers of the state,” asserted Dr Mohan.
Other major reasons given for the sickness of SSIs by Dr Mohan included lack of working capital due to poor financial status, disconnection with the market and negligible investment in the State by the industrialists.
{{/usCountry}}Other major reasons given for the sickness of SSIs by Dr Mohan included lack of working capital due to poor financial status, disconnection with the market and negligible investment in the State by the industrialists.
{{/usCountry}}Later addressing the gathering, Director of Industries CK Tewari said the main purpose of the workshop was to sensitise the issue of sickness of the SSIs in the State.
“All relevant points raised in the workshop would be forwarded to the State Government and efforts would also be made for their redressal,” added Tewari.
Stressing on the efforts being made by the State Government for the revival for sick industries, Tewari said, “The State Government is aware of the problems being confronted by the SSIs and is willing to extend all possible help for their revival.”
“When an industry becomes sick, the Financial Institutions (FIs) are the first ones who come to know about this as the industrialist concerned falters in depositing his dues to the bank,” said Tewari.
The need of the hour is to check the sickness of SSIs at the very onset rather
than waiting for its closure, asserted Tewari.