sick industrial unit may be defined as a unit
in which either there is no production or the
production is less than 10 percent of
the normal for a continuous period of not less
than 6 months. For the seasonal consumers, like
Khandsari Factories,Ginning etc, which operate
for only a part of the year, this continuous period
of closure shall not be less than 12 months
working season.). The sick unit will have to produce
figures of production audited by a Chartered Accountant
support of this.
A unit declared
sick by the State Govt. (Director of Industries)will
also be entitled for the concessions but only
unit closed on account of lock out or any labour
problem will not be entitled for concessions.
During the period of sickness no minimum tariff
charges would be recoverable in respect of such
period/periods but instead an
amount equal to 20%
of the capital cost of the service connection
(12% on that part of the cost, if any which is
the consumer himself) will be recovered. If the
period of sickness extends into number of years
the concession based on annual
minimum guarantee instead of monthly minimum tariff
will extend to all such years. Such minimum will
proportionate to relevant period of sickness.
Simple interest at the rate of 10% per annurn
on the difference between the amount of tariff
minimum charge and 20/12% of the capital
cost of the service connection for a period equal
to the time for which the units
shall also be recovered in the cases where the
recovery extends to the earlier period prior to
1.10.79 also either as a
result of the concession not having been granted
yet or as a result of the concession having become
void due to the consumer committing a breach of
the agreement by not reviving within the stipulated
period or defaulting on payment of instalments.
this recovery should not be made from small scale
industrial units and Khandsari & Seasonal
No. D.P.C. and interest on D.P.C. would accrue
during the period of sickness.
Interest at the rate of 18% per annum on the amount
payable after giving concessions as above will
be charged instead of the
penal interest of
The amount due from the sick unit after giving
concession will be paid by the unit in equal monthly
instalments not exceeding 48.
Interest on diminishing balance will be g 18%
per annum. Any default in payment will invite
D.P.C. and interest as per Rules.
The concessions would also be admissible to a
unit which has paid Board's dues without availing
of the concession provided
that in every case it had brought the fact of
its sickness to the notice of the Board and pleaded
inability to pay Board's dues
during the period it was sick. In such cases the
unit would be entitled to refund of the amount
being the difference between the
dues normally payable and those payable after
grant of concessions admissible.