KARACHI: The Sindh government has created a Rs2 billion fund for revival of sick units in various industrial estates.

The industries department has called a meeting of owners of sick units to identify reasons relating to closure of industries and to suggest measures, including financial help to bring them back into production.

Secretary of Industries Arif Elahi talking to Dawn on Thursday said that the move was aimed at promoting employment in the province by reviving sick units.

He said that the number of sick units in various estates of the zone is 1198.

The majority of such units lies in industrial estates in Kotri, Nooriabad, Karachi and Korangi.

Alone in Nooriabad Industrial estate, 36 units lie closed and according to chairman Nooriabad Investors Club, most of such units are textile factories which wrapped up operations due to frequent loadshedding of electricity and gas and non-availability of water.

Mr Arif pointed out that the department has launched a scheme in coordination with the State Bank and Smeda to provide loans to small and medium enterprises (SMEs).

The main target of the scheme is small units in the interior, including rice husking mills, ginning factories and steel re-rolling mills.

Under the scheme, bank booths would be opened in small industrial estates to facilitate SMEs seeking loans for modernising their units.

All loan formalities would be completed at the banking booths and entrepreneurs would not be required to rush to big towns for seeking loans.

The industries department would help owners of new SME units to prepare feasibility studies to launch production.

The department would hire services of consultants to do the job.

The step would boost industrialisation in the province as many small entrepreneurs do not have knowledge to start production units. It would also help create employment for the unskilled youths.

The department is also working on a policy to help owners of all unutilised plots in various industrial estates to set up factories and start production.

The department would help remove obstacles in the way of making genuine use of an industrial plot to increase production and employment.

Replying to a question, the secretary said he had no data of such plots but they are in great numbers as department has substantial earning from the non-unitisation fee.

However, it feels that the economy would be greatly benefited if all these plots are turned into factories.

Meanwhile, the Chief Minister has sanctioned Rs273 million from his discretionary funds for development of roads in Site area.

The project includes construction of two metalled roads and patch-work at 53 points in the estate.

The project would be completed by January 2014 and would facilitate movement in the area and check instances of extortion and snatching on Site roads.

Meanwhile, to give Site area a look of a modern industrial estate, it has been decided to remove all illegal encroachments and demolish all Chapra restaurants.

The board of directors of SITE Ltd had issued 102 permissions to start hotel business in the area.

Licencees would be provided standard designs to turn their places into modern eating places.

There is a proposal to charge Rs40,000 annual fees from owners of such hotels which earn handsome money.