Concessions & Incentives for SSI Session 9

8/2/2019 Concessions & Incentives for SSI Session 9

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Comprehensive policy packagefor SSI & Tiny Sector

Entrepreneurship Management

Prof Bharat Nadkarni


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Comprehensive policy package for SSI & Tiny Sector

The Small scale industry (SSI) has emerged as Indias engine of growth in the new millineum. By the end of March 2000, SSI sectoraccounted for nearly 40 % of gross value of output in the manufacturingsector and 35 % of total exports from the country. There are around 32lakh SSI/ tiny units in the country employing more than 18 millionpeople.

The most important challenge faced by the SSI and tiny sector is thatof growing competition both globally and domestically.The sector has also been facing problems which relate to

1) Credit 2) Infrastructure 3) Technology4) Marketing 5) Delayed payment 6) Hassels on account of so manyrules and regulations


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In order to enable this sector to avail the opportunities and play its role

as an engine of growth, it is essential to address to the problemseffectively and urgently.For having a focused attention on the development of SSI and tinysector, GOI has created a new ministry of SSI & Agro and Ruralindustries in october 1999.

Interim report of the S P Gupta study team constituted by the planningcommission provided the background material for the consideration of the group of ministers under the chairmanship of Mr L K Advani.Theteam was put together by PM Mr A B Vajpayee.

On the recommendations from the team, a comprehensive policypackage for the SSI and tiny sector was announced on 30 August 2000by the PM.


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Support Organisations

1. Small industries development organisation (SIDO)2. Small industries service institute (SISI) - its a service agency 3. National small industries corpn. Ltd. (NSIC)4. Small industries development bank of India (SIDBI)

5. Technology bureau for small enterprises ( TBSE)6. Maharashtra industrial development corpn. (MIDC)7. Maharashtra small scale industries development corpn. Ltd.

(MSSIDC)

8. Maharashtra industrial & technical consultancy services ltd.(MITCON)


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Concessions & Incentives for SSI


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Protective

Investment Limit Government of India

Reservation Policy Government of India

Interest on Delayed Payment Act Government of India


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Marketing

Price & Purchase Preference NSIC

Marketing Support NSIC / MSSIDC

Vendor Development Programme (VDP) SISI

Sub-contract Exchanges (SCX) SISI

Market Development Assistance SIDO / SIDBI

Programme (MDAP)

Foreign Direct Investment Government of IndiaParticipation in Equity of SSI Government of India


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Technology

Technical Consultancy Organization (TCOs) State Government

Science & Technology Parks (STPs) State Government

Research & Development (R&D) NRDC / CSIRProduct & Process Development Centres SIDO / SISI

(PPDC), Field Testing Stations (FTS),

Tool Rooms (TR), Regional Testing Centres

(RTC), Tool Design Institutes (TDI), etc.

Technology Development & Modernization SIDBI

Fund (TDMF)


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Technology

ISO 9000 / ISO 14001 CertificationSIDBI

Integrated Technology Upgradation Programme SIDBI(UPTECH)

Small Industries Management Assistance ProgrammeSIDBI

(SIMAP)Technology Bureau for Small Enterprise (TBSE) SIDBI

Common Effluent Treatment Plant (CETP) StateGovernment

& GOINational Innovation and BusinessIncubation Pro ramme SIDBI


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Finance

Priority Sector Credit Policy Reserve Bank of India

Bill Discounting Financial Institutes / Banks

Factoring Service Financial Institutes / Banks

Composite Loans Financial Institutes / Bank


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Finance

Liberal Credit Access Reserve Bank of India

Liberal Working Capital Norms Reserve Bank of India

Venture Capital Funds Financial Insti / Banks

Over The Counter Exchange Government of India

of India (OTCEI)

Credit Guarantee Scheme (CGS) SIDBI

National Equity Fund (NEF) SIDBI


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Taxation

Concessions under Income Tax Act Government of India

Concessions under Central Excise Government of India

Concession under Stamp Duty State Government


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Infrastructure

Integrated Infrastructure Government of India

Development Scheme (IID)

Cluster-based Infrastructure Development State Government


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Human Resource DevelopmentEntrepreneurship Development Institute of India (EDII) Government of India

National Institute for Entrepreneurship & Small Government of India

Business Development (NIESBUD)

Indian Institute for Entrepreneurship (IIE) Government of India

Small Industries Extension Training Institute Government of India

of India (SIETII)

Centres for Entrepreneurship Development (CEDs) State Government


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Miscellaneous

Credit Rating SIDBIWTO Sensitization Programmes SISI

Prime Minister Rojgar Yojna SIDO(PMRY)Deendayal Hath Kargha ProtsahanYojna KVICComprehensive Package forKhadi & Village Industries KVIC


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Miscellaneous

Relaxation under Environment Laws State

GovernmentSmall Enterprises Information and SISI

Research Centre Network (SENET)

Rural Industries Programme (RIP) SISI & othersPackage Scheme for I.T. Units StateGovernment


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Modified SchemePackage Scheme of Incentives -State Government:

Capital Subsidy in Backward Areas only

Interest Subsidy on Term Loan for new Textile, Hosiery &

Knitwear Units only.

Octroi Refund in Backward Areas only

Electricity Duty Exemption in Backward Areas and to

Sunrise Sectors


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Neglected Areas

Reforms in Labour LawsReforms in Power Sector

Concessions & Incentives for SSI Session 9

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