| No. |
Policy Decisions |
Present Status |
| 1. |
To improve the competitiveness of Small Scale Sector the exemption for excise duty limit raised from Rs.50 lakhs to Rs. 1 Crore. |
Notification issued by the Ministry of Finance (Deptt. of Revenue) on 1st September 2000. |
| 2. |
A capital subsidy of 12% will be given against loans for technology upgradation in admissible industries. |
The scheme has been circulated to State Governments, Scheduled Commercial Banks, SIDBI, SISIs, etc. Governing & Technology Approval Board have been constituted. |
| 3. |
Measures in respect of Custom duties by Finance Ministry. |
Orders issued on 31.8.2000.
|
| 4. |
The third census of Small Scale Industries will be conducted by the Ministry of SSI & ARI after a gap of 12 years. This Census would cover sickness and its causes. |
A Cell has been created in the office of DC(SSI). The Steering Committee has met on 27.10.2000. All units registered upto 31.3.2001 to be covered and all State DIs requested to make available the frame of these units by May, 2001 in the prescribed format. Data collection work likely to start from August 2001.
|
| 5. |
Limit of investment in Industry related service and business enterprises to be raised from the present Rs.5.00 lakhs to Rs.10.00 lakhs |
Orders regarding enhancement of investment limit issued on 19.9.2000. |
| 6. |
The ongoing scheme of granting Rs.75,000 to each small scale enterprise for obtaining ISO 9000 certification should be continued till the end of the 10th Plan. |
Orders issued on 9.10.2000. |
| 7. |
New comprehensive package for Khadi & Village Industries. |
A new package has been announced for the Khadi & Village Industries Sector on 14th May 2001. |
| 8. |
Deendayal Hathkargha Protsahan Yojana |
Details of the scheme have been circulated by Ministry of Textiles |
| 9. |
Limit for composite loans to be raised from Rs.10 lakhs to Rs.25 lakhs. |
Directions issued to all scheduled banks including RRBs by the RBI, vide No.RPCD PLNPS No. BC. 25/06.02.31/2000-I on 10th October, 2000. |
| 10. |
A Group to be constituted under the Cabinet Secretary to suggest/recommend stream-lining of inspections and repeal of redundant laws and regulations applicable to the Sector within three months. |
The Group constituted under the Cabinet Secretary held its first meeting on 9th March, 2001. |
| 11. |
The ongoing Integrated Infrastructure Development (IID) scheme will progressively cover all areas in the country with 50% reservation for rural areas and 50% of plots will be earmarked for tiny sector. |
Orders have been sent to State Governments. |
| 12. |
Under the Prime Minister's Rozgar Yojna (PMRY), which finances setting up of micro enterprises and generates employment for the educated un-employed, the family income eligibility limit of Rs.24,000 shall be raised to Rs.40,000 per annum. |
Orders issued on 13.9.2000. |
| 13. |
Department of Economic Affairs to appoint a task force to suggest revitalisation/ restructuring of SFCs. |
Task Force/committee constituted under Shri G.P. Gupta, CMD, IDBI, on 5th September, 2000 has since submitted its report. |
| 14. |
RBI is to issue circulars regarding provision of 20% projected turnover as working capital. |
Circular issued reiterating this instruction. |
| 15. |
The eligibility limit for coverage under Credit Guarantee Scheme to be revised to Rs.25.00 lakhs from Rs.10.00 lakhs at present. The scheme will continue beyond one year stipulated earlier and would be suitable augmented and modified on the basis of actual requirements. |
Increase in eligibility limit approved by Credit Guarantee Fund Trust. |
| 16. |
Project limit for National Equity Fund to be raised from Rs.25.00 lakhs to Rs.50.00 lakhs. 30% of investment will be earmarked for tiny sector. |
Limit raised by SIDBI. |
| 17. |
Setting up of incubation centers in sunrise industries will be supported. The concerned ministries would be making provisions in their plan budgets. |
The Secretaries of Ministries/Departments related to sunrise industries have been requested on 4th February, 2001 to consider setting up incubation centres in their respective areas. |
| 18. |
RBI to take up with banks the question of sub-allotting overall limits to the large borrowers specifically for meeting the payment obligation in respect of purchase from SSIs. |
RBI has issued necessary directions to all Commercial Banks vide Circular No.5/08.12/01/2000-01 dated 16th October, 2000. |
| 19. |
The funds available under the non-lapsable pool for the North East will be made use of for IID, incubation centres & cluster development. |
Guidelines issued to the Secretary Industries to all State Governments of North-East including Sikkim on 5th December, 2000. |
| 20. |
Strategy for capacity building amongst entrepreneurs as well as workers to be worked out by SSI Ministry & Labour Ministry. |
Ministry of Labour furnished three monographs on workers' training. These have been examined by this office & suggestions offered to the Ministry of Labour for greater involvement of the SSI Sector. |
| 21. |
SSI associations are to be encouraged to develop and operate testing laboratories. One time capital grant of 50% will be given on reimbursement basis to such associations after detailed examination of each case. |
The scheme has been finalised and circulated. |
| 22. |
A compendium of available technologies from R & D institutions in India and abroad to be prepared jointly by SIDO, SIDBI & NSIC for circulation amongst industry association. TBSE (set up by SIDBI) will be strengthened and networked with NSIC, SIDO (SENET) and APCTT. |
Compendium already compiled and is being hosted on NSIC Web-site.
(www.techshowindia com) |
| 23. |
RBI to appoint a Task Force to go into the question of strengthening & popularising factoring services & encourage bills culture. |
RBI has felt that constitution of a Task Force is perhaps not required as the issue has already been considered by a Committee earlier which has recommended enactment of suitable legislation. |
| 24. |
Ministry of SSI & ARI to bring out a specific list of hi-tech and export oriented industries where investment limit is to be raised to Rs. 5.00 Crores. |
The sectors identified for enhancing investment limit are:-
| - | Readymade garments |
- | Leather products |
| - | Toys |
- | Hosiery |
| - | Handtools |
- | Packaging materials |
| - | Auto components |
- | Pharmaceuticals |
| - | Food Processing |
Of these, Readymade Garments has since been dereserved and orders dereserving Leather and Toys will be issued shortly. Draft Notification for Handtools and Knitwear has been laid before Parliament and final notification is expected by August 2001.
|
| 25. |
A Scheme to be drawn up for upgrading industrial estates. |
Instructions issued for covering upgradation of existing Industrial Estates under IID Scheme. |
| 26. |
The Small Industries Development Organisation should have a Market Development Assistance (MDA) scheme similar to the one obtaining in the Ministry of Commerce. It should be a Plan Scheme. |
The Scheme has been finalised and circulated. |
| 27. |
A plan scheme for cluster development will be drawn up in the context of NPRI. |
A scheme has been prepared under which upto Rs. 5 lakhs for each cluster under NPRI would be provided for undertaking diagnostic study, development & demonstration of modern tool kit, training & strengthening of NGOs, hiring of consultant, common facility centre, seminar, workshop, study visit, etc. |
| 28. |
RBI to draw up revised guidelines for rehabilitation of currently sick but potentially viable SSI units. |
The report of the Committee constituted by RBI to review the existing guidelines of currently sick but potentially viable units is expected shortly. |
| 29. |
The Limited Partnership Act should be drafted quickly. Attempt will be made to bring the Bill before the next session of Parliament. |
The Ministry of Law has been requested to prepare suitable legislation. |
SIDO Policies
