This will help around 18,500 units in the State that are facing a crisis
Bangalore: The State Government is expected to provide for a one-time settlement, if possible with the support of the Centre, to solve the liquidity problems of small and medium industries. It will be a one-time grant, which will go a long way in turning around 18,500 small and medium industries in the State that have closed or are on the verge of closure.
Deputy Chief Minister B.S. Yediyurappa and Industries Minister Katta Subramanya Naidu told The Hindu here on Saturday that the one-time grant would be a big relief to small industries bogged down by huge debts. As per a formula that had been finalised, industries that had taken loans and were unable to repay both the capital and the interest would be eligible for the relief. In other words, the State Government with the support of the Centre or any of its financial agencies would bear a certain cost of the loan component with an equal participation by the borrower, they said. The whole strategy has been provided by the Karnataka State Financial Corporation , which itself has been in the grip of a crisis thanks to the non-performing assets that have been threatening its existence for several years.Mr. Yediyurappa said the Finance Department was working out the funds required for the one-time settlement, and according to an estimate Rs. 154 crore was required.