Incentives scheme for SSIs extended

The government has extended the scheme of incentives to the small scale and ancillary units acquiring ISO-9000 till the end of the Ninth Five Year Plan, that is till March 31, 2002. 

According to an official note released in New Delhi on February 2, the procedural norms and the application form to claim reimbursement of charges incurred for acquiring ISO-9000 have also been simplified. 

The scheme was launched in 1994 and provides for reimbursement of charges for acquiring ISO-9000 certification to the extent of 75 per cent of the cost, subject to a maximum of Rs.75,000 in each case. 

Ministry to draw up credit guarantee scheme for SSIs

The union small scale industries ministry is expected to formulate a credit insurance scheme by the beginning of the next fiscal. This scheme will enable better credit flows to small scale units by way of providing guarantees to the lenders. 

It is expected that the small units that require less credit, less than Rs.10 lakhs, will be adequately taken care of. The larger units are, however, not expected to be covered under this scheme. 

The initial corpus of the fund is expected to be subscribed by the Small Industries Deveopment Bank of India (SIDBI) and the government. 

"The scheme will essentially try to remove the distrust created between the banks and small scale units as a result of the lack of credit worthiness of SSI units". 

Refinance/LoC Scheme for Tecnology Development and Modernisation for SSI Units (RTDM)

SIDBI vide its circular dated December 22, 1999 has decided to continue with RTDM till the end of FY 2000. No fresh sanctions under RTDM would be accorded after March 31, 2000. SIDBI would however, continue to disburse refinance to all sanctions made prior to April 1, 2000 as per the extant guidelines under the scheme. SIDBI has further advised all SFCs/SIDCs to avail refinance for the sanctioned cases/partially disbursed cases as early as possible. 

Demand for regulatory authority for sick SSIs

The SSI sector has urged the Union government to set up a regulatory authority with specific powers to deal with sickness in small scale industries. 

The Indian Council of Small Industries (ICSI) in a detailed memorandum to Union Minister of State for SSI and Agro & Rural Industries Ms. Vasundhara Raje has said that this regulatory authority must be entrusted with the responsibility of reviewing policy measures and their implementation and identifying the reasons for sickness in the small scale sector. 

Additionally, the Authority should also have a research and study cell to collect data on various aspects of sickness, besides studying how such issues are being dealt in developed nations such as the US, Europe, Japan etc. 

Policies for SSIs tiny sectors on anvil

The Planning Commission was examining the possibility of formulating a separate policy for the small-scale and tiny sectors, as there was `merit' in the demand for such a policy from this sector Union Minister of State for small scale industries Smt. Vasundhara Raje said in Chennai on December 26. 

"Besides the Planning Commission, my Ministry is also looking into this demand. A decision will be taken after visiting all states and getting feedback from small-scae and tiny sector entrepreneurs", she told newsmen after inaugurating `a vision on mission for millennium strategy for growth-Budget 2000'. 

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