ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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NORTH-New Life through Habitat

The implications of the merger scheme may turn out to be significant and may result in structural changes in the industrial scene. In a period of depression, when an industrial unit begins to make losses or has to be shut down, the normal working of market forces, if allowed free play, will itself result in its take-over by other interests in the field, if they find it worth their while. If, however, a legal obligation is placed on viable units to run sick units at a loss or to take them over at an artificially high value it may amount to spreading sickness all around. It is true that the sickness of many units can be attributed to mismanagement or to their being starved of investment for renovation and modernisation as a result of the draining away of their surpluses to more profitable areas by their owners. But a reversal of this process, ' from curing the malady, may only aggravate and spread it.

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