GROWTH RATE OF SSI SECTOR IMPROVES
RAJYA SABHA
The annual growth rate of Small Scale
Industries (SSI) Sector is estimated to have increased to 7.41
per cent in 2002-03. To strengthen and enhance the competitiveness
of the SSI Sector, both domestically and globally, the Government
has taken various measures, which include enhancement of working
capital limit computed on the basis of minimum of 20% of annual
projected turnover from Rs. 4 crore to Rs. 5 crore, enhancement
in composite loan limit from Rs. 10 lakhs to Rs. 25 lakhs, raising
of project cost limit under National Equity Fund Scheme from Rs.
25 lakhs to Rs. 50 lakhs, revision in eligible loan limit for
coverage under Credit Guarantee Scheme from Rs. 10 lakhs to Rs.
25 lakhs, introduction of Laghu Udyami Credit Card (LUCC) Scheme,
issuance of revised guidelines for rehabilitation of sick SSI
units and revival of potentially viable units, by the Reserve
Bank of India on 16th January, 2002, etc. Further,
in accordance with the announcement made in the Union Budget 2003-04,
the Indian Banks’ Association has advised all its member banks
to adopt an interest rate band of 2 per cent above and below Prime
Lending Rate (PLR) as announced by the State Bank of India. Banks
have also agreed to further raise the composite loan limit from
Rs. 25 lakhs to Rs. 50 lakhs.
The growth rate of
SSI Sector declined from 8.23 per cent in 2000-01 to 6.08 per
cent in 2001-02. The downtrend in 2001-02 could be partly due
to overall recessionary trend in the industrial sector.
This information
was given by Shri Tapan Sikdar, Minister of State for Small Scale
Industries and Development of North Eastern Region in a written
reply to a question by Shri Parmeshwar Kumar Agarwalla in Rajya
Sabha today.
