Other Information

POLICY PACKAGES FROM THE MINISTRY OF SSI & ARI
(Taken from Press Note in Impex Times)

Agenda Items covered four issues at the Board Meeting of the Small Scale Industries, viz. (1) Indian SSIs & the emerging WTO scenario (2) Credit- the lifeline of business (3). Extending technology frontiers for SSIs (4) A new approach to marketing for SSIS in the 21st Century.

Mr. Bagchi, Secretary (SSI & ARI) gave the details of the policy packages. Below are listed some of the points:

Comprehensive Policy Package for SSI Sector

• The investment limit for the SSI sector will continue to be at Rs. 1 crore.
• The Ministry would bring out a specific list of hi-tech and export oriented industries which would require the investment limit to be raised up to Rs. 5 crores to admit of suitable technology up-gradation and to enable them to maintain their competitive edge.
• Industry related service and business enterprises up to an investment of Rs. 10 lakhs for fixed capital will be included in the definition of small scale enterprises qualifying for priority sector lending.
• Self – certification will be progressively encouraged in lieu of inspections, which should be prescribed under the three following conditions:-
  
  a) On receipt of specific complaint
  b) Selection of unit fir sample check (say 10% of total units) and
  c) For audit and safety purposes.
  
  A group will be constituted under the Chairmanship of the Cabinet Secretary which will recommend specifically regarding substituting routine inspections by self- certification. The Group will submit its report within a period of three months. The Group will be also make specific recommendations/changed in the State laws to be suggested to the State Governments.
• The integrated infrastructure Development (IID) Scheme will progressively cover all areas in the country with 50% reservation for rural areas.
• Regarding upgrading the industrial estates which are languishing, SSI Ministry will draw up a detailed scheme for the consideration of the Planning Commission.
• Setting up of incubation centres in sunrise industries will be supported
• Capacity building in the SSI sector, both for entrepreneurs as well as workers, will be given top priority, SSI Ministry and Labour Ministry will work out the strategy jointly
• A plan scheme for cluster development will be drawn up
• In the National Equity Fund Scheme, the project cost limit will revised from Rs. 25 lakhs to Rs.50 Lakhs. The soft loan limit will be retained at 25% of the project cost subject to a maximum of Rs. 10 lakhs per project. Assistance under the NEF will be provided at a services charge of 5% per annum.
• The Nayak Committee’s recommendations regarding provision of 20% of the projected turnover as working capital is being commended to the financial institutions and banks
• RBI is being requested to take up with the banks the question of sub- allocating overall limits to the large borrowers specifically to meet the payment obligations in respect of purchase from the SSIs either on cash or bills basis.
• For Technology up–gradation, the GOM has already approved a capital subsidy of 12% back loaded, on the recommendations of the EFC.
• The scheme of grant of Rs. 75,000 to each SSE for obtaining ISO 9000 certification will be continued till the end of the 10th plan.
• The eligibility limit for coverage under the Credit Guarantee Scheme has been revised to Rs. 25 lakhs from the present limit of Rs. 10 lakhs.

Vietnam: 4th Pride of India 2001 Expo
In Vietnam from 27 February – 2 March 2001, Saigon Trade Centre,
Ho Chi Minh City, Vietnam

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