Kathmandu, January 10:

The Sick Industries Rehabilitation Coordination Committee (SIRCC), headed by Bimal Wagle, joint secretary at the ministry of finance (MoF), is mulling over giving about three billion rupees to the sick industries as ‘seed money’ as per the criteria set by the government and the private sector.

The industries have been hit hard due to the decade-long conflict in the country.

SIRCC was formed recently in a bid to take stock of sick industries and make funding available to revive them. According to a source at the MoF, the meeting was held last week between government officials and private sector organisations such as the Federation of Nepalese Chambers of Commerce and Industries (FNCCI), Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce (NCC), Nepal Bankers Association (NBA) and other private sector people. But the meeting could not finalise the modalities regarding sick industries rehabilitation.

Despite the MoF having earlier asked the private sector for a proposal and detailed modalities regarding sick units, they could not produce a convincing proposal that compelled the government to rework strategies, said a senior official at the MoF.

Talking about the government’s preparation to revive sick units, Wagle said, “We are working on the same and consulting with the private sector to prepare the status of sick units.” He said that there is a need to assess the total number of sick enterprises and their status first, before moving ahead effectively.

According to government officials, who did not want to be quoted said that the government would give funding to sick units at a low interest rate which may be around three per cent. Last year, the government had charged 4.5 per cent interest rates on loans given to sick enterprises. Now the government currently is working out ways to redefine sick industries on the basis of profits and operation.

The source also disclosed that MoF is also holding a meeting with the private sector next week. The private sector’s request for formulating the committee involving the finance minister and the governor has been turned down by the ministry of finance.

MoF is in favour of involving exclusively an independent expert in the forthcoming committee who can lead the committee and come out with modalities related sick industries, says the source.

Sick enterprises should fall under the criteria that units should be at a loss for the consecutive past three years, the objectives criteria be made and industries which are sick be defined clearly keeping in view of financial status, including other issues.