Govt unveils plan to revive defunct private venturesThe Ministry of Industry has come up with an ambitious plan to revive defunct privately-owned enterprises in a bid to bolster the confidence of entrepreneurs who have been creating jobs.
The Ministry of Industry has come up with an ambitious plan to revive defunct privately-owned enterprises in a bid to bolster the confidence of entrepreneurs who have been creating jobs.
Units of the real sector that have terminated operations will be asked to submit proposals for their revitalization. The proposition should state the reason behind the closure and the measures the government could take to revive them. According to Industry Minister Nabindra Raj Joshi, all real sector businesses ranging from small- and medium-size to large enterprises will be able to benefit from this scheme.
“We will publish a notice on Tuesday asking the private sector to submit proposals to the Ministry of Industry, Department of Industry or Department of Cottage and Small Industries within 21 days,” Joshi said at an interaction held at the ministry on Monday. “While submitting the proposal, one has to clearly declare the reasons behind the closure.” Similarly, applicants are required to mention the conditions or scenarios under which the closed businesses and factories can be restarted, he added.
After receiving proposals from the owners of the defunct enterprises, the ministry will form a committee to assess them thoroughly. The panel will then recommend measures the government can take to revive them. Based on the recommendations, the government may change its policies or provide incentives or procedural or infrastructural support, Joshi said.
“If a little effort from the government can revive closed factories, that will be a great achievement in terms of giving a positive message to the private sector. It’ll indicate that the government is trying to create a good business environment in the country,” said Joshi. The latest move, according to the minister, will also provide the government a list of businesses that are no longer in operation along with the reasons behind their closure, which will help different ministries to frame appropriate policies in the future, he added.