A Parliamentary committee has asked the Ministry of Small Scale Industries to work closely with Uttar Pradesh Finance Corporation for reviving mini cement plants in the state.
The committee has also recommended to draw reference from Rajasthan Financial Corporation's initiative to revive mini cement units as per an ICRA report.
Taking note of the problems raised by the UP Mini Cement Plants Association, the Parliamentary Standing Committee on Industry in its 89th report said: "The reported harassment of these units, instead of reviving them by the UPFC, as mentioned by the Association, needs to be looked into."
It said if SSI units are to be given a boost, the different departments of the state government and central government will have to work in a coordinated manner.
The 126 mini cement units in UP offer direct employment to 12,600 persons while absorbing 50,400 persons indirectly.
The financial institutions invested Rs 104 crore (Rs 1.09 billion) in these units while promoters' share stood at Rs 69 crore (Rs 690 million).
The trade loss to the state ex-chequer would be Rs 34.2 crore (Rs 342 million) per year if these units are closed while there would be Rs 27.7 crore (Rs 277 million) loss of central excise duty.
The UPFC funded 48 mini units initially and later on declared 46 units as defaulters while requesting promoters of six units to hand over everything.
A total of 13 units are on the verge of closure, the panel headed by Rajya Sabha MP P C Alexander said.
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