Power cuts make them loan defaulter
On 26th June 2012 most of the dailies carried two important news with big headlines. The headlines were: "More than 1.22 lac loan defaulters in the country" and "Government's proposal to hike electricity prices very soon." Let me give an example of one unintentional loan defaulter whose name might have already been included in the 1.22 lac list. A friend of mine, an experienced businessman, established a textile manufacturing unit about a year back with bank loan. He imported sophisticated textile machinery by opening L/C from abroad. The time between L/C opening date and trial production was more than one year because of delay in getting electricity connection, setting up of machinery etc. By the time he completed setting up the machines at the factory, he failed to pay more than six instalments and became a defaulter according to BB rules. His company became disqualified for getting any further support.
The only way that is open for him is to run his factory at any cost, using full production capacity. But alas, how will he use full capacity? Out of 24 hours a day, he hardly gets electricity supply for 10/12 hours, which means his production has reduced to 50 per cent. Instead of making profit he is losing his capital every month. I believe he has no escape. Hon'ble finance minister, do you have any suggestion for him? He has no other means or land to sell to pay the present dues.
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