ARREST OF SICKNESS IN SSI SECTOR

HIGHER EMPLOYMENT GROWTH RATE IN SSIs

TECH. UPGRADTION SUBSIDY SCHEME FOR SSIs TO CONTINUE

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A Significant reduction in the incidence of sickness in the Small Scale Industries (SSI) sector brought about by the vigorous implementation of the Comprehensive Policy Package of the sector has been the hallmark of the Ministry of Small Scale Industries during the year. This becomes all the more significant in the light of the slump in the overall economic scenario. The other outstanding gain during the year has been the 12 per cent growth in the SSI sector and a significant increase in the employment generated by the sector.

Reduction of sickness in SSIs

The relentless efforts of the Government through the implementation of the Comprehensive Policy Package have resulted in reduction of sickness in the SSI sector. According to the data, compiled by the Reserve Bank of India (RBI) on SSI sickness among units financed by scheduled commercial banks, the number of SSI sick units declined from 3,04,235 units in 2000-01 to 2,49,630 at the end of March 2001-02. For rehabilitation of SSI sick units, the RBI has circulated revised guidelines on 16^th January, 2002 to all the banks for implementation.

Employment in SSIs Increased

The over all employment in Small Scale Industries has been increasing. By the end of March, 2002, the employment in SSI sector is estimated to have increased 192.23 lakhs compared to to185.64 lakhs in 2000-01 and 178.50 lakhs in 1999-2000. The Ministry of Small Scale Industries has been given an ambitious target of 44 lakhs additional jobs in the 10^th Plan, as against 32 lakhs jobs created by the sector in the 9^th Plan.

Steady Growth of the Sector

Despite an overall industrial slowdown, the SSI sector has constantly been growing at atleast 2-3 percentage points higher than the rest of the industry. For the 10^th Plan, the SSI sector is target to grow at 12 per cent per annum. For the 10^th Five Year Plan, an outlay of Rs.2200 crores has been made for implementation of the Plan schemes and programmes relating to development of SSI sector.

Enhancing competitiveness of SSIs

Out of 29 action points emerging from the Comprehensive Policy Package, action has been completed on 27 points. The Comprehensive Policy Package was announced for the SSI sector by the Prime Minister at the first ever National Conference on SSI in the year 2000. The policy package aimed at enhancing competitiveness of SSIs both globally and domestically by providing easier access to credit, infrastructure support, marketing avenues etc.

Relaxation of Duty on Bicycle Parts

The Government has announced certain exemption/relaxation of duty on bicycle parts and accessories at the 3^rd SSI Convention with a theme "Toys" on 28^th August, 2002. Relief in sales tax on electronic toys will be considered after VAT system becomes operational in all states.

Technology Upgradation Subsidy Scheme to Continue

Under the Credit Linked Capital Subsidy Scheme for Technology Upgradation of the SSIs, upto April, 2002, subsidy amounting to Rs. 25.95 lakhs has been distributed by Small Industries Development Bank of India (SIDBI). To encourage total quality management, the Government has decided to continue for the next six years, granting Rs. 75,000 to each small-scale unit that obtains ISO 9000 certification. Since the launching of the scheme, 3049 SSIs have been granted reimbursement for an amount of Rs. 18.49 crores upto 31^st October, 2002. During the 10^th Plan, an allocation of Rs. 4.50 crores has been proposed for this scheme.

Under the Credit Guarantee Scheme which was set up for small industries with an initial corpus of Rs. 125 crore, the cumulative number of proposals received upto June. 2002 were 6,766 out of which 4,954 proposals were approved for aggregate loan amount of Rs. 51.38 crore.

IID Scheme for Tiny Sector

Under the Integrated Infrastructure Development (IID) Scheme, 50 per cent of the plots will be earmarked for the tiny sector as against 40 per cent done earlier. Sixty three IID centres are at various stages of implementation. In these centres, 7,754 plots are proposed for tiny sector.

Marketing Assistance for SSIs

Small Scale Industries face problems in marketing of their products. To help SSIs in marketing their products, a new SSI Marketing Development Assistance (MDA) has been launched to assist SSIs exporters to participate in international exhibition and fairs. Sub contracting and acnillarisation is being encouraged through setting up sub-contracting exchanges and vendor development programmes.