Hyderabad: After the crop loan waiver scheme for farmers, the TS government is planning to waive loans of sick medium and small industries. About 8,000 medium and small industries have downed shutters during the last five years. These industries together owe nearly Rs 9,000 crore to banks.
The industries department, which examined the sick units, found that 5,000 units, which owe nearly Rs 6,500 crore, can be revived, if their loans are waived.
The state government plans to submit proposals to the Centre expressing its willingness to bear 75 per cent of the loan burden and urging the Centre to bear the remaining 25 per cent to revive sick units under its MSMEs revival scheme.
If revived, these 5,000 units can achieve an annual turnover of Rs 50,000 crore at an average of Rs 10 crore each. The government can earn between Rs 10,000 crore to Rs 12,000 crore towards various taxes from these revived units.
“By waiving 6,500 crore loans, the government can earn over Rs 10,000 crore per year in taxes. The closure of these units was affecting revenues. It is for this reason that we are proposing to waive the loans by bearing 75 per cent of the burden and the remaining from the Centre,” an official said.
