ISSUES RAISED BY BOARD MEMBERS FOR CONSIDERATION

       Various suggestions received from the Members in the context of the 46th meeting have been categorized and listed below.

(A)     FINANCIAL INCENTIVES, CREDIT & TAXATION

1. FASII - Reduction of lending rates
    - Extension of tenure of loans
    - Set up small enterprise investment companies for equity and managerial inputs
    - Permanent forum on sickness at districts
    - Venture capital funding be extended to other SSI sectors
    - Encourage factoring services
2. FOPSIA - Minimum 20% credit to SSI sector
    - Reduction in interest rate
    - Extension of term loan tenure
    - Collateral free loans upto Rs. 5 lakhs
    - Time limits on loan processing
    - District level committees on loans
    - SSI representation on boards of banks & FIs
3. SIDBI - Small Industries Development Fund (for technology)
    - Introduction of concept of small and medium industries
    - Enlarging SIDBI's mandate to cover units with investment upto Rs. 10 lakhs
    - Access to concessional funding for SIDBI
    - Reinstating tax exemption status
    - SIDBI to monitor primary lending institutions with regard to their assistance and policies towards SSI sector
4. Indian Council of Small Inds, Kolkatta - Ensure adequate and timely finance
    - Strengthening of SIDBI
    - Evaluate functioning of SSI branches
    - Encourage credit rating of SSIs
    - SSI sector be represented on bank boards and SIDBI's board
    - SIDBI should concentrate on refinancing
5. Indian Industries Assn., Lucknow - Nayak Committee recommendations be followed strictly
    - SFCs to extend bills discounting and guarantee limits
    - Realistic credit rating
    - Current ratio should not exceed 1.33:1
    - Transfer of bank should be allowed
    - Make NEF more liberal and attractive
6. Gujarat Small Ind. Assn., Ahmedabad - Proper implementation of Nayak/Kapoor Committee Reports on Working Capital and other facilities to SSI
    - Strengthen SIDBI Regional Advisory Committee by giving representation to industrial associations
7. Tamil Nadu Small & Tiny Ind. Assn. - 50% of credit guarantee fees should be borne by bank
    - Introduce without recourse factoring through SIDBI
    - Raise subsidy under Credit Linked Capital Subsidy scheme
8. Assn. of Lady Entrepreneurs of AP - SFCs to be included under Credit Guarantee Scheme of Govt. of India
    - Increase the credit limit of Mahila Udyam Nidhi Scheme of SIDBI from Rs. 10 lakhs to Rs. 25 lakhs to encourage women entrepreneurship
9. All India Assn. of Industries - Credit flow to SSIs to be at least 25% share of net bank credit

(B)     POLICY

1. FASII - Single basic law for SSIs
2. Tirupur Exporters Assn., Tirupur - Enhance the SSI limit to Rs. 5 crores
3. Indian Council of Small Inds, Kolkatta - Proposes two tier definition
    - Have a single law for SSI
4. Min. of Textiles - Increase the investment limit in respect of knitted fabrics/ knitwears
    - Extend benefit of SSI package to the textile industry
    - Provide SSI registration to powerlooms
5. Laghu Udyog Bharati - Have a SSI Commission
6. Gujarat Small Ind. Assn., Ahmedabad - Basic raw materials for SSIs must be at international prices
7. Tamil Nadu Small & Tiny Ind. Assn. - 100% survey of SSI units
    - Long term specific SSI policy
    - Separate and definite policy for garments and textiles
    - SBA type set up
    - Enact Limited Partnership Act
8. Assn. of Lady Entrepreneurs of AP - Enactment of Basic Law for SSI sector
9. FISME - Investment limit should be increased to Rs. 5 crore
10. All India Assn. of Industries - Ceiling for acquiring new technology, plant & machinery be upgraded to Rs. 5 crore or more on case to case basis
    - District level committees should be set up to deliberate on all issues pertaining to credit for SSIs

(C)     TECHNOLOGY

1. FASII - Technology Information Centres at sub-state level for dissemination of information
    - Extension centres of NSIC/NRDC for technology information
    - 100% reimbursement of ISO 9000 expenses be allowed
2. FOPSIA - 100% reimbursement of ISO 9000 expenses be allowed
    - Exposure of SSIs to new industries such as bio-technology
3. Indian Council of Small Inds, Kolkatta - Regular technology fairs be held for promoting technology
    - Exclusive R&D cell for SSI needs
    - Need based training in technological institutes
4. Min. of Science & Technology - Organise Seminars/Workshops for Dissemination of Bio-tech Industry in the SSI
    - Creation of Bio-tech Venture Capital Fund
5. Karnataka SSI Assn. - Government should provide R&D support to small scale industries
6. Gujarat Small Ind. Assn., Ahmedabad - Create greater awareness about schemes of finance for upgrading technology
7. Tamil Nadu Small & Tiny Ind. Assn. - Separate fund for technology upgradation
8. Assn. of Lady Entrepreneurs of AP - Customs duty exemption for labour intensive industry like garments, food processing for purchasing imported machinery to upgrade technology

(D)     LABOUR

1. FOPSIA - Single Labour Law for SSIs with self-certification
    - Enhance threshold limit for SSIs to 50 with power and 100 without power
2. IIA, Lucknow - Introduction of Self-Certification in place of routine instructions and simplification of Labour Laws.
3. Karnataka SSI Assn. - Simplification of Labour Laws be done
4. Laghu Udyog Bharati - Provision of self-certification instead of routine inspections by various Departments
5. Gujarat Small Ind. Assn., Ahmedabad - Exempt SSIs having less than 50 workers from the provisions of Labour/Central Excise Law
6. Govt. of Punjab - Single Labour Law
    - SSSBEs should be exempt from all labour laws
7. Tamil Nadu Small & Tiny Ind. Assn. - Social security scheme for SSI workers and employers
    - Single Labour Law
8. FASII - Threshold limit of labour laws be increased to 50/100
    - Separate minimum wages for urban and rural
    - Introduce self-certification in labour laws for SSI sector
    - Visit of inspectors to be done away with except in specified circumstances

(E)     INFRASTRUCTURE

1. FASII - Cluster/Sector specific IIDs
    - Incubation centres for start up units
    - 100% GOI grant for industrial estates
    - SEZs should be encouraged
2. Tamil Nadu Small & Tiny Ind. Assn. - Separate estates for cluster industries
3. Assn. of Lady Entrepreneurs of AP - Creation of corpus for EDI institutes instead of infrastructure development

(F)     MARKETING

1. FASII - 33% of Govt. purchases from SSIs
    - Legal status to Single Point Registration Scheme
    - Marketing of SSI products by NSIC under registered brand name
    - Dissemination of market information to SSIs
    - Prototype development centres should be set up for defense requirements
2. FOPSIA - 40% of Govt. purchases from SSI sector
    - Encourage consortia approach
3. Indian Council of Small Inds, Kolkatta - Create marketing development fund for SSIs
    - NSIC should set up Small Business Development Centres
    - Consortia approach with key role of NSIC be encouraged
4. Indian Industries Assn., Lucknow - Domestic trade centres in states for facilitating meeting of buyers and sellers
    - Purchase and price preference policy be made mandatory
5. Karnataka SSI Assn. - Strengthen Government Purchase Policy by having a "Buy Indian Act" on the lines of "Buy American Act"
6. Laghu Udyog Bharati - Purchase & Price Preference Policy be made effective and binding
7. Tamil Nadu Small & Tiny Ind. Assn. - Minimum 50% of Govt. purchase from small and tiny units
    - Exclusive purchase should not be restricted to 358 items
8. Assn. of Lady Entrepreneurs of AP - Tax concessions for angel investors and large industry who provide vendor development and sub-contracting
9. FISME - Marketing support assistance for trade fair participation

(G)     EXPORTS

1. FASII - Export consortia should be set up
    - SSI samples should be displayed in Indian missions
2. FOPSIA - Indian embassies to play proactive role for SSI exports
    - NSIC to act as nodal agency
3. Indian Industries Assn., Lucknow - Export Promotion Bureau should hold tripartite meetings for problems of exporters.
4. Tirupur Exporters Association, Tirupur - Grant status of export units to the manufacturing units having exports more than 70% and issue a silver card
5. Govt. of Punjab - Higher investment limit for export oriented SSI units
6. Tamil Nadu Small & Tiny Ind. Assn. - Export marketing wing in each state
7. Assn. of Lady Entrepreneurs of AP - Ministry of Industry to publish commercial news to enable SME sector to export and to establish successful business relationship with overseas
8. FISME - Tax reimbursement mechanisms for export for SSIs
9. Goa Small Industries Association - SSIs should be given definite incentives to promote export and to compete with neighbouring countries

(H)     SICKNESS

1. FASII - Gujarat BIFR type institutions should be established
    - Sick Unit Rehabilitation Committee be set up at district level
2. Indian Council of Small Inds, Kolkatta - SLIIC should be revitalised
    - Set up Sub Committee of SLIIC for individual cases
    - Credit at subsidised rates for sick units
    - Regulatory authority on sickness
    - Effective steps to arrest sickness at incipient state
3. Indian Industries Assn., Lucknow - Sickness is underreported
    - Bodies on the lines of Small Scale Sick Units Rehabilitation Board of UP must be set up
    - Exit option for entrepreneurs must be available
4. Karnataka SSI Assn. - Proper Exit Policy for small industries to check sickness
5. Govt. of Punjab - SLIIC to be given legal backing
    - BIFR type mechanism for SSI units
6. Tamil Nadu Small & Tiny Ind. Assn. - An exit policy for SSI units
    - Identify sickness at incipient stage
    - Extend RBIs Samadhan Scheme by one year
7. FISME - Insolvency Act reflecting changed economic realities to be put in place
8. All India Assn. of Industries - RBI's guidelines for one time settlement of NPAs should be extended upto 31.12.2001
    - 12 months time allowed for payment of 75% of dues be increased to 24 months with 10% interest on outstanding balance

(I)     RESERVATION

1. Indian Council of Small Inds, Kolkatta - Strengthening of Reservation Policy
    - Penal excise on manufacture in violation of Reservation Policy
2. Indian Industries Assn., Lucknow - In view of removal of QRs, dereservation must be done
3. FISME - SSI Sector be dereserved completely
4. FASII - Levy higher excise on illegal manufacture of reserved items

(J)     WTO

1. Indian Council of Small Inds, Kolkatta - Effective steps to protect SSI from adverse implications of WTO regime
2. Min. of Science & Technology - In view of WTO, awareness in patents and IPR
3. Tamil Nadu Small & Tiny Ind. Assn. - Raw materials and finance at international rates in view of removal of QRs
    - Set up regional anti-dumping authorities
4. FISME - Identification of WTO compatible support measures for SMEs
    - Support and encouragement for Research and Studies for SSIs. Rs. 20 crores for research to be allotted to Min. of SSI
    - Support for Intellectual Property initiatives
    - Review of Preferential Trade Agreements. Rules of Certificate of Origin need to be reviewed for SSIs
    - Detailed study for competitiveness of major products manufactured by SSIs

(K)     DELAYED PAYMENT

1. Karnataka SSI Assn. - Disallow MODVAT credit for delayed payment
    - Allow for local letter of credit
    - Disallow deduction of expenses under IT Act if payment delayed
2. Indian Council of Small Inds, Kolkatta - Delayed payments should not be admissible as expenses under IT Act
3. Tamil Nadu Small & Tiny Ind. Assn. - Disallow CENVAT credit for delayed payments and under IT Act
4. FASII - Review Delayed Payment Act

(L)    NORTH EAST POLICY

1. All Assam SSI Assn - All SSI units in NE should get incentives under NE policy irrespective of location
    - Complete exemption on raw material produced and consumed within NE by SSI units
    - Regional office of DGQA in NE

(M)    TINY SECTOR

1. Tamil Nadu Small & Tiny Ind. Assn. - Separate tiny sector policy
    - Reduce investment limit for tiny to Rs. 10 lakhs
    - Lower interest rate for tiny units
    - Separate industrial estates for tiny units