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Relief to closed and non-regenerative industries through Abhay Yojana

By Lokmat English Desk | Updated: August 25, 2021 18:30 IST

Aurangabad, Aug 25:A special Abhay Yojana has been announced by the state for non-regenerative and closed industry having ...

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Aurangabad, Aug 25:

A special Abhay Yojana has been announced by the state for non-regenerative and closed industry having arrears of government debt. Under the scheme, the principal amount of the arrears will be waived off while transfer of the fixed assets of the company to other companies.

An industry component that has been closed for more than a year or has been declared bankrupt or insolvent by the court can avail the benefit of the scheme. Similarly, the scheme will also be available to industries which meet the criteria of non-regenerative industry component as per the guidelines of the Reserve Bank of India (RBI). The certificate of the concerned financial institution, chartered accountant or the RBI in case of closure or non-revival of the industry where the sick industrial companies act is applicable will have to be attached. For ensuring that the industry is shut down, any of the relevant document related to disconnection of the electricity, water, power supply or the documents of the annual balance sheets from the financial year of the shutdown will have to be produced. In addition, the industry entity is required to submit an affidavit regarding the date of its closure. Some conditions including controlling the share capital of the company and limiting the shareholdings of the company with its old partners and associates have been imposed in the scheme.

Pay amount in one lump sum

If recovery action is being taken by any department of the government on the industrial units which were closed and transferred before April 1, 2019, but did not go into production, then such units can be able to pay the principal amount of government arrears in one lump sum.

Start production in three years

The benefit of this scheme will be available only for government debts. The industries to which the government-owned corporations have given loans for setting up of manufacturing components, must restructure the assets of the concerned industry so that they can recover the arrears on their own. The new management needs to start production at the same place in three years from the date of approval.

Tags: Abhay YojanaReserve Bank Of IndiaThe finance ministry of indiaMonetary policy committee of the rbiCentral board of reserve bank of indiaReserve bank of india governorFinance ministry and reserve bank of indiaNew india strategyReserve bank of india's boardDeputy governor of reserve bank of indiaReserve bank of india's monetary policy committee
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