SICKNESS IN TASTAFEMENT SHOWING SUBSIDE INDIAN IIS LBLE VII\.RY-WISE NE [DUSTRY r Loss OP THE VAR 71.IOUS NA-TIO^L TtSxriLE G^I:^.pOR.v^ION SUBSII DI\RIE3 EXGL UDING 7 DiREGfLY OWNED MILLS Name of Subsidiary Net Loss^Gain (Rs lakhs) 1975-76 1976-77 1977-78 1 Gujarat — 268.54 — 28.83 +131.32 2 Uttar Pradesh — 370.70 —118.07 —160.91 3 Tamil Nadu and Pondicherry — 499.32 —131.07 + 24.04 4 Delhi, Punjab and Rajasthan — 229.79 -152.05 —270.85 ^ 5 Andhra, Karnataka, Kerala and T Mahe — 297.01 —317.45 —163.49 6 West Bengal, Assam, Bihar and Orissa — 961.64 —476.73 —823.70 7 South Maharashtra —1201.40 —729.57 —477.28 8 Madhya Pradesh — 822.71 —767.86 —527.05 9 Maharashtra North —1269.85 —860.99 —560.01 Total —5920.96 —3582.62* —2827.93** * Excluding bonus payment of Rs 681.23 lakhs. ** Excluding bonus payment of Rs 718.71 lakhs. SOURCE- Ainuil R"p->rts of N^ionil Textile Corporation, 1975-76, 1976-77 and 1977-78. 4) The sick enterprises should be given priority in the supply of raw materials. 5) The government should make available the services of technical/professional managers to sick units to nurse them back to health. 6) The government should exempt the sick units from the payment of excise duty, sales tax for some period to enable them to recover. A modified arrangement under which the management of sick units is entrusted to workers and/or professional managers under government ownership, appears to be more balanced from a functional point of view because it reconciles, on the one hand, decentralized ownership with competent management and, on the other, it harmonize? the individual interest of the employees with the growth of the enterprise. The proposal deserves a serious trial and if this model can be made operationally viable, it is likely to usher in a new era in corporate management. Success of the measure will depend on the judicious choice of the professional managers and the attitude of the state to^ sincerely support the new experiment. Another way of revival of sick units is to merge them with a healthy public or private sector unit. Merger with a private sector unit has difficulties because no healthy unit would like to burden itself with the liabilities of a sick unit. In case the state