Question

What are the symptoms of industrial sickness and explain the process of industrial sickness in india

Answer 1

Answer:

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Explanation:

A major symp­tom of sickness is a steady fall in debt-equity ratio and an imbalance in the financial position of the unit.

Industrial sickness creates various socio-eco­nomic problems. When an industrial unit falls sick those who depend on it have to face an uncertain future.

sickness is not a special problem of India. It is, undoubtedly, a global phenomenon.When the-problem becomes really alarming or unmanageable, the unit is permitted to die its natural death.

The causes which have been identified so far include:

(a) Delay in land acquisition and building construction

(b) Delay in obtaining financial as­sistance from public financial institutions

(c) De­layed supply of machinery by the manufacturers

(d) Problems related to recruitment of technical and managerial staff

(e) Delay on the part of the Government in sanctioning licences, permits, etc

(f) Shortages of basic inputs like power and coal. Other causes include

(g) Cost over-runs due to factors beyond the control of management

(h) Lack of demand for products or shift of demand to products of rival firms due to delays in project implementation

(i) Unsatisfactory performance by collaborators—financial and technical

(j) Large changes in the scale of operation and optimum product mix in the long run and, last but not the least

(k) Changes in the policy of the Government relating to movement of goods from one place to another within the country