Industrial Sickness-Small Scale Industries

An industry is considered to be sick if it incurs cash losses for two consecutive years or its net worth is erroded by 50 percent or more.

The causes of widespread sickness, may be listed as (1) Inadequate help provided by banks and financial institutions (2) Management failures i.e. technological absolescences and lack of modernisation efforts on the part of management (3) Low productivity and lack of work ethoes on the part of workers (4) Power crisis in many states (5) Lack of careful planning on the part of various Govt, agencies, (6) Malpractices on the part of some entrepreneurs.

To control sickness the author suggests creation of a powerful board representing different interests, as an apex body, through a comprehensive legislation encompassing all the existing policies, facilities etc This will bring them under one umbrella for better co-ordination and proper implementation.