10 Concessions _ Incentives for SSI Session 11

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Comprehensive policy package
for SSI & Tiny Sector
Entrepreneurship Management
Prof Bharat Nadkarni
Entrepreneurship Management
Comprehensive policy package for SSI & Tiny Sector
The Small scale industry (SSI) has emerged as India’s engine of
growth in the new millineum. By the end of March 2000, SSI sector
accounted for nearly 40 % of gross value of output in the manufacturing
sector and 35 % of total exports from the country. There are around 32
lakh SSI/ tiny units in the country employing more than 18 million
people.
The most important challenge faced by the SSI and tiny sector is that
of growing competition both globally and domestically.
The sector has also been facing problems which relate to
1) Credit
2) Infrastructure
3) Technology
4) Marketing 5) Delayed payment 6) Hassels on account of so many
rules and regulations
Entrepreneurship Management
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 problems
effectively and urgently.
For having a focused attention on the development of SSI and tiny
sector, GOI has created a new ministry of SSI & Agro and Rural
industries in october 1999.
Interim report of the S P Gupta study team constituted by the planning
commission provided the background material for the consideration of
the group of ministers under the chairmanship of Mr L K Advani.The
team was put together by PM Mr A B Vajpayee.
On the recommendations from the team, a comprehensive policy
package for the SSI and tiny sector was announced on 30 August 2000
by the PM.
Entrepreneurship Management
Support Organisations
1. Small industries development organisation (SIDO)
2. Small industries service institute (SISI) - it’s 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)
Concessions & Incentives for SSI
Protective
Investment Limit
Government of India
Reservation Policy
Government of India
Interest on Delayed Payment Act
Government of India
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
Participation in Equity of SSI
Government of India
Government of India
Technology
Technical Consultancy Organization (TCOs)
State Government
Science & Technology Parks (STPs)
State Government
Research & Development (R&D)
NRDC / CSIR
Product & 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
Fund (TDMF)
SIDBI
Technology
ISO 9000 / ISO 14001 Certification
SIDBI
Integrated Technology Upgradation Programme
SIDBI
(UPTECH)
Small Industries Management Assistance Programme
SIDBI
(SIMAP)
Technology Bureau for Small Enterprise (TBSE)
SIDBI
Common Effluent Treatment Plant (CETP)
State
Government
& GOI
National Innovation and Business
Incubation Programme
SIDBI
Finance
Priority Sector Credit Policy
Reserve Bank of India
Bill Discounting
Financial Institutes / Banks
Factoring Service
Financial Institutes / Banks
Composite Loans
Financial Institutes / Bank
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
Taxation
Concessions under Income Tax Act
Government of India
Concessions under Central Excise
Government of India
Concession under Stamp Duty
State Government
Infrastructure
Integrated Infrastructure
Government of India
Development Scheme (IID)
Cluster-based Infrastructure DevelopmentState Government
Human Resource Development
Entrepreneurship 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
Miscellaneous
Credit Rating
SIDBI
WTO Sensitization Programmes
SISI
Prime Minister Rojgar Yojna
SIDO
(PMRY)
Deendayal Hath Kargha Protsahan
Yojna
KVIC
Comprehensive Package for
Khadi & Village Industries
KVIC
Miscellaneous
Relaxation under Environment Laws
Government
Small Enterprises Information and
State
SISI
Research Centre Network (SENET)
Rural Industries Programme (RIP)
Package Scheme for I.T. Units
Government
SISI & others
State
Modified Scheme
Package 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
Neglected Areas
Reforms in Labour Laws
Reforms in Power Sector
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