PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
TASK FORCE SET UP TO BOOST SSI GROWTH IN NORTH-EASTERN STATES: SHRI ADVANI INAUGURATES SSI CONVENTION
New Delhi; 30th August, 2001
Bhadrapada 08,1923
The Central Government has taken a number of initiatives for development of small-scale industries in the North-eastern States. Addressing the National Convention on Small Scale Industries, here today, the Minister of Small Scale Industries and Agro and Rural Industries, Smt. Vasundhara Raje said that a Task Force comprising all the State Ministers in-charge of small-scale industries has been set up specifically for this region. A Tool Room is being set up a Guwahati, National Small Industries Centre and NEDFI are setting up offices in all the States, Finance Ministry has notified industrial estates under the Central Excise Act in Arunachal Pradesh, Indian Institute of Entrepreneurship, Guwahati has prepared a five-year action plan for meeting the State and sector specific needs; Khadi and Village Industries Commission is working with UNDP on a project on bamboo in the North East, the Coir Board has taken up the application of coir geotextiles at different locations in the North East for embankment protection and soil protection.
The Home Minister, Shri L.K. Advani inaugurated the convention and gave away national awards to entrepreneurs for excellent performance in the fields of Entrepreneurship, Quality Products and Research & Development. In his inaugural address, Shri Advani said that the SSI Sector today needs to restructure itself and be prepared to face the new realities in the national and international economy. He said that as a member of WTO, India is obliged to allow the imports of many products without restrictions and small industries face severe challenges, because they have to compete with foreign products which may be cheaper to the customers even after imposition of duties. As a consequence, all our industries are under pressure to reduce costs and to improve the quality and range of their products. To achieve this, they should increase the efficiency of their production and marketing without any delay, he said. Shri Advani further said that it might be necessary to remove SSI reservations and relax labour laws in some areas like toys, leather products, processed foods, etc. where India has a universally recognized opportunity to expand rapidly and supply to the global market.
Smt. Vasundhara Raje said that 'Khadi' has been registered as a brand and it is being projected as a heritage product. Khadi is no longer a word synonymous with rural India but it has caught the imagination of the youth and acquired global recognition. Now the aim is to make 'Khadi' an international brand, identified not only with the common man and for reasonable prices, but also with quality and good designs. A five-year old package prepared by the high-powered committee headed by Shri K.C. Pant, Deputy Chairman, Planning Commission is being implemented, she said.
Smt. Raje said that SSI sector accounts for 35 per cent direct exports and large American superstores are outsourcing around one billion US dollars from SSI units of India. WalMart alone sources products worth 300 million US dollars. She said, the comprehensive package announced by the Prime Minister last year, has met most of the needs of the sector. The growth rate of SSI sector in 2000-2001 was 8.09 per cent as against 4.90 per cent of the industrial sector and GDP growth of 6.0 per cent. The SSI sector provides employment to 186 lakh persons, Smt. Raje said.
The SSI Minister regretted that the credit delivery was still far from satisfactory and announced a scheme of awards for those banks that provide substantial credit the SSI sector. The scheme would be implemented from the next year and modalities are being finalized.
GSR/HCK/SDG/AS
10012/2.1320Nr 30.8.01
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