Giving this information in written reply to a question in the Rajya Sabha today, Shri Praful Patel, Minister of Heavy Industries and Public Enterprises, said that References regarding delayed payment/non-payment to SSIs by M/s.
Instrumentation Limited, Kota, a Central Public Sector Enterprise, when brought to the notice of the Department of Heavy Industry, were viewed seriously and the Department has been pursuing the issue with the management of IL for a speedy redressal.
The Department has also issued written instructions to the management on 15.3.2013 to look into the matter of payment of outstanding dues to SSI units and settle the same as expeditiously as possible. As a result of the Department’s efforts the outstanding of SSI units of Rs. 14.5 crore as on 07.03.2013 has come down to Rs. 1.6 crore as on 04.12.2013.
Shri Patel pointed out at the outset that Instrumentation Ltd is a sick Company under reference to the Board for Industrial and Financial Reconstruction (BIFR) and though a Modified Revival Scheme was sanctioned for the Company in 2009/2010, the Scheme has not yet been fully implemented and the Company has been facing a critical financial crisis and acute shortage of funds.
Some of the Company’s major orders also got cancelled or are under arbitration because of which the Company’s working capital has been blocked thereby further aggravating the financial crunch. At present, even statutory liabilities are not being timely paid resulting in severe defaults. Delayed/non-payment to SSIs is on account of severe liquidity crunch faced by the Company.
Shri Praful Patel also added in this context that besides pending payment to SSI units, the Company has to pay approx. Rs.20 crore to various suppliers other than SSI units as well.
The Company has informed that its officers have not indulged in any fraud while procuring goods from the SSI units, and while procuring the goods they had followed all purchase procedures of the Company and they are committed to meet all due payments in a phased manner on availability of funds.
As non-payment/delayed payment to the SSI units has been on account of the difficult financial position of the Company, no action against any officers of the Company is considered appropriate.