AN OVERVIEW
Chapter 1
Ministry of Small Scale Industries
AN OVERVIEW
1.1.0 BACKGROUND
1.1.1 The small scale industries (SSI)
constitute an important segment of the
Indian economy in terms of their contribution
to the country’s industrial production,
exports, employment and creation of an
entrepreneurial base. The Government
established the Ministry of Small Scale
Industries and Agro and Rural Industries
(SSI & ARI) in October, 1999 as the nodal
Ministry for formulation of policies and
Central sector programmes/schemes, their
implementation and related co-ordination, to
supplement the efforts of the States for
promotion and development of these
industries in India. The Ministry of SSI &
ARI was bifurcated into two separate
Ministries, namely, Ministry of Small Scale
Industries and Ministry of Agro and Rural
Industries in September, 2001.
1.1.2 The role of the Ministry of Small
Scale Industries is thus to mainly assist the
States in their efforts to promote growth and
development of the SSI, enhance their
competitiveness in an increasingly marketled economy and generating additional
employment opportunities. In addition, the
Ministry attempts to address issues of
country-wide common concerns of this
segment and also undertake advocacy on
behalf of the SSI for this purpose. The
specific schemes/programmes undertaken
by the organisations of the Ministry seek to
facilitate/provide one or more of the
following:
adequate credit from financial
institutions/banks;
funds for technology upgradation
and modernisation;
integrated infrastructural facilities;
modern testing facilities and
quality certification laboratories;
access to modern management
practices, entrepreneurship
development and skill upgradation
through appropriate training
facilities;
assistance for better access to
domestic and export markets; and
cluster-wide measures to promote
capacity-building and
empowerment of the
units and
their collectives, in addition to all
or some of the above-mentioned
supports.
1.2.0 ORGANISATIONS OF THE
MINISTRY
1.2.1 The formulation and implementation
of the policies and programmes/projects/
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Annual Report 2006-2007
schemes is undertaken by the Ministry with
the assistance of its attached office and
public sector enterprise, namely, the Small
Industry Development Organisation (SIDO)
and the National Small Industries
Corporation Ltd (NSIC).
1.2.2 Government has also set up the
National Commission on Enterprises in the
Unorganised Sector (NCEUS) to suggest
policies and programmes for addressing the
wide range of issues affecting the
productive potential of the large segment
of unorganised micro and small productive
units.
1.3.0 SMALL INDUSTRIES
DEVELOPMENT
ORGANISATION (SIDO)
1.3.1 The Office of the Development
Commissioner (Small Scale Industries) [DC
(SSI)] is also known as the Small Industry
Development Organisation (SIDO).
Established in 1954, it is the apex body for
assisting the Government in formulating
and overseeing the implementation of its
policies and programmes/projects/
schemes. The SIDO is headed by the
Additional Secretary & Development
Commissioner (SSI).
1.3.2 SIDO provides a comprehensive
range of common facilities, technology
support services, marketing assistance,
entrepreneurial development support, etc.,
through its network of 30 Small Industries
Service Institutes (SISIs), 28 Branch SISIs,
4
4 Regional Testing Centres (RTCs), 7 Field
Testing Stations (FTSs), 2 Small
Entrepreneur Promotion and Training
Institutes (SEPTIs) and 1 Hand Tool Design
Development and Training Centre. The
SIDO also has a network of Tool Rooms
and Process-cum-Product Development
Centres (PPDCs) to provide technology and
training support. These institutions are run
as autonomous bodies, registered as
societies under the Societies Act.
1.3.3 Over the last 52 years, the SIDO
has served a very useful purpose as a
catalyst of growth of the micro, small and
medium enterprises through its vast
network of field organisations spread all
over the country.
1.4.0 NATIONAL SMALL
INDUSTRIES CORPORATION
LTD. (NSIC)
The National Small Industries
Corporation Ltd., (NSIC), was established
by the Government in 1955 as a Public
Sector Company, with a view to promoting,
aiding and fostering the growth of micro,
small and medium enterprises (MSMEs) in
the country, with focus on commercial
aspects of their operations. NSIC
implements several schemes to help the
MSMEs in the areas of raw material
procurement, product marketing, credit
rating, acquisition of technologies, adoption
of improved management practices, etc.
through its 7 Zonal Offices, 26 Branch
Offices, 15 Sub Offices, 5 National
Ministry of Small Scale Industries
Technical Services Centres, 2 Software
Technology Parks and 3 Technical Services
Extension Centres, spread practically all
over the country. The Corporation, an ISO:
9001-2000 Company has also set up a
number of turnkey projects in many
developing countries.
Entrepreneurship (IIE) at Guwahati, as
autonomous societies. These institutes are
engaged in the development of training
modules, undertaking research and training
and providing consultancy services for
entrepreneurship development and
promotion of MSMEs.
1.5.0 NATIONAL
ENTREPRENEURSHIP
DEVELOPMENT INSTITUTES
(EDIs)
1.6.0 NATIONAL COMMISSION FOR
ENTERPRISES IN THE
UNORGANISED SECTOR
(NCEUS)
Entrepreneurship development and
training is one of the key elements for the
promotion of Micro, Small and Medium
Enterprises (MSMEs), particularly, the first
generation entrepreneurs. To undertake
this task on regular basis, the Ministry has
set up 3 national-level Entrepreneurship
Development Institutes, viz National
Institute of Small Industry Extension
Training (NISIET) at Hyderabad, National
Institute of Entrepreneurship and Small
Business Development (NIESBUD) at
Noida
and
Indian
Institute
of
The National Commission for
Enterprises in the Unorganised Sector has
been constituted in September, 2004 for a
period of three years. The Commission has
been given the mandate to examine the
problems of enterprises in the unorganised
sector and suggest measures to overcome
them. It consists of a Chairman, three full
time members, three part-time members
and an Advisory Board consisting of
eminent experts from fields related to the
unorganised sector.
5
RECENT POLICY INITIATIVES
Annual Report 2006-2007
8
Chapter 2
Ministry of Small Scale Industries
RECENT POLICY INITIATIVES
2.1.0 MICRO, SMALL AND MEDIUM
ENTERPRISES
DEVELOPMENT ACT, 2006
2.1.1 There was a longstanding demand
from entrepreneurs, small industry
associations and related stakeholders for a
single comprehensive legislation. The
“Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006” is the first
Act for micro, small and medium enterprises
which, inter alia, provides for establishment
of a statutory National Board for Micro, Small
and Medium Enterprises, filing of
memoranda, measures for promotion,
development and enhancement of
competitiveness of micro, small and medium
enterprises, credit facilities, procurement
preference and provisions related to delayed
payments to micro and small enterprises.
The medium sector has been defined for the
first time in India and Micro enterprises have
been defined for the first time in this Act.
2.1.2 The necessary Notifications/Rules,
etc. under the Act have been notified by
the Central Government and MSMED Act,
2006 came into effect from 2 nd October ,
2006.
2.2.0 CLASSIFICATION OF
INDUSTRIES ( NOW
ENTERPRISES )
2.2.1 Under the MSMED Act 2006, the
earlier, rather limited, concept of
‘Industries’ has been widened to that of
‘Enterprises’. Enterprises have been
classified broadly into two categories,
namely enterprises engaged in the
manufacture/production
of
goods
pertaining to any industry; & enterprises
engaged in providing/rendering of services.
Enterprises have been defined in terms of
investment in plant and machinery/
equipment (excluding land & building) as
below (Table 2.1).
Definition of MSM Enterprises : Table 2.1
Investment in plant and machinery/equipment (excluding land
and building)
Manufacturing Enterprises
Service Enterprises
Micro
Up to Rs. 25 lakh
Up to Rs. 10 lakh
Small
More than Rs. 25 lakh and
up to Rs. 5 crore
More than Rs. 10 lakh and
up to Rs. 2 crore
Medium
More than Rs. 5 crore and
up to Rs. 10 crore
More than Rs. 2 crore and
up to Rs. 5 crore
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Annual Report 2006-2007
2.3.0 APEX CONSULTATIVE BODY
WITH WIDE
REPRESENTATION OF
STAKEHOLDERS
2.4.0 ADVISORY COMMITTEE
2.4.1
As per the provisions of MSMED
Act, 2006, the Central Government has
already
2.3.1 Under the new Act, action have
been initiated for constitution of the
National Board for Micro, Small and
Medium Enterprises, which will be headed
by the Central Minister In Charge of
MSMEs and will consist of members from
(i) MPs (ii) Representatives of Central
Ministries (iii) State Governments (iv) UT
Administration, RBI, SIDBI, NABARD (v)
Associations of MSMEs including women
(vi) Persons of eminence and (vii) Central
Trade Union Organisations.
2.3.2 National Board for Micro, Small and
Medium Enterprises will have a statutory
status as against non-statutory SSI Board.
It will be mandatory to hold quarterly
meetings of National Board.
constituted
an
Advisory
Committee, for a period of two years with
effect from 27 th September, 2006, which
is headed by Union Secretary In-Charge
of MSMEs. The other members are Union
Secretaries of Ministry/Department of
Commerce, Food Processing Industries,
Labour and Employment, Revenue,
Advisor (VSI), Planning Commission,
Secretaries (dealing with micro, small and
medium enterprises), of the State
Governments of Andhra Pradesh, Assam,
Uttar Pradesh, President, Tamilnadu
Association
of
Cottage
and
Tiny
Entrepreneurs, Chennai, President,
Federation of Indian Micro, Small and
Medium Enterprises, New Delhi and
President, CII, New Delhi. Its member
secretary will be the Union Additional
2.3.3 Functions of the National Board for
MSMEs will be to (i) examine the factors
affecting the promotion and development
of MSMEs and review the policies and
programmes of the Central Government in
this regard (ii) make recommendations on
matters referred to as above or any other
matter referred to it by the Central
Government (iii) advise the Central
Government on the use of Fund or Funds
constituted under section 12 of the MSMED
Act.
10
Secretary
and
Development
Commissioner (SSI), New Delhi.
2.4.2
Functions
of
the
Advisory
Committee will be to (i) examine the matters
referred to it by the National Board; (ii)
advise Central Government on matters
specified in clauses 7(i),9,10,11,12 and 14
of MSMED Act 2006 and (iii) advise State
Governments on matters specified in the
rules under clause 32 of the MSMED Act,
2006.
Ministry of Small Scale Industries
OTHER INITIATIVES
2.5.0 NATIONAL MANUFACTURING
COMPETITIVENESS
PROGRAMME (NMCP)
2.6.0 PACKAGE FOR PROMOTION
OF MICRO AND SMALL
ENTERPRISES
2.6.1 In order to assist the micro and small
enterprises in fully harnessing their potential by
2.5.1 The Government with an objective enhancing their competitiveness to face the
t o s u p p o r t t h e m a n u f a c t u r i n g s e c t o r challenges of stiff competition (both in the
enterprises (particularly the small and domestic and global market) and in availing
medium enterprises) in their endeavour to opportunities generated by trade liberalization,
become competitive, announced in 2005-06, the Government in the NCMP declared that a
formulation of “National Manufacturing “major promotional package” will be announced
Competitiveness Programme” (NMCP) The for this segment to provide full support in the
design of the scheme was to be worked out areas of credit, technological up-gradation,
by
the
National
M a n u f a c t u r i n g marketing and infrastructure up-gradation in
C o m p e t i t i v e n e s s C o u n c i l ( N M C C ) i n major industrial infrastructure. In fulfilment of
this assurance in the NCMP, a package has
consultation with the industry.
been formulated which, inter alia, include issues
concerning (i) legislative back up; (ii) credit
2.5.2 Accordingly, the five year NMCP, as
support; (iii) fiscal measures; (iv) support for
finalised by NMCC was accepted by the
cluster based development; (v) technological
Government
and
announced
for
and quality up-gradation support; (vi) marketing
implementation in the Budget 2006-07,
support; (vii) support for entrepreneurial and
which comprised ten component schemes,
managerial development; (viii) empowerment of
which, inter alia, include the schemes for
women owned enterprises; (ix) strengthening of
application of lean manufacturing, design
Prime Minister’s Rozgar Yajana and (x)
clinic, promotion of ICT in manufacturing
strengthening of data base for MSME Sector.
sector, setting up Mini-Tool Rooms,
technology & quality management support 2.7.0 RESERVATION / DEfor SMEs, entrepreneurial & management
RESERVATION OF
development of SMEs, encouragement of
PRODUCTS FOR
quality management standards and quality
MANUFACTURE IN THE
technology tools, national campaign for
SMALL SCALE SECTOR
investment in intellectual property, SMEs &
technology up-gradation activities and 2.7.1 With a view to providing to the SSI
marketing support/assistance to SMEs. Its opportunities for technological upgradation,
implementation will be in the PPP model.
promotion of exports and economies of scale,
11
Annual Report 2006-2007
items reserved for exclusive manufacture by
the SSI have been dereserved from time to
time. The dereservation process involves
extensive consultation with all the stake
holders, including the SSI associations and
various Ministries/Departments concerned
and the Planning Commission. As per the
provisions of the I (DR) Act an Advisory
Committee has been constituted which
recommends reservation/dereservation of
items from time to time. The Advisory
Committee makes its recommendations on
the basis of the laid down procedure in the
I(D&R) Act, 1951 which relates to the
12
economy of scale, the level of employment,
the possibility of encouraging and diffusing
entrepreneurship in industry, the prevention
of concentration of economic power to the
detriment of the common interest and any
other issue which the Committee may think
fit. The Advisory Committee has met 26 times
so far. The last meeting of the committee was
held on 24th October 2006. During the year
2006-07, 180 items reserved for manufacture
in small scale industries have been dereserved. As on date, there are 326 items
reserved for exclusive manufacture in small
scale sector.
M
N
P
O
Ministry of Small Scale Industries
SMALL INDUSTRIES
DEVELOPMENT ORGANISATION
(SIDO)
13
Chapter 3
Ministry of Small Scale Industries
SMALL INDUSTRIES DEVELOPMENT
ORGANISATION (SIDO)
3.1.0 ROLE AND FUNCTIONS
3.1.1 T he Offi c e o f t h e D e v e l o p m e nt
Commissioner (Small Scale Industries)
headed by the Development Commissioner,
is an apex body for assisting the
Government in formulating, coordinating,
implementing and monitoring policies and
programmes
for
promotion
and
development of the micro, small and
medium enterprises (MSME) in the country.
It provides a comprehensive range of
facilities and services to the MSME through
a network of 30 Small Industries Service
Institutes(SISIs), 28 Branch SISIs, 4
Regional Testing Centres (RTCs), 7 Field
Testing Stations (FTSs), 1 Hand Tool
Design Development and Training Centre
and 2 Small Entrepreneur Promotion and
Training Institutes (SEPTIs).
3.1.2 With a view to facilitating transfer
of technology for technological upgradation
of the MSME, Technology Resource
Centres (TRC) have been set up in all the
30 SISIs. These Centres identify
appropriate technologies and work with the
MSME to assist them in acquiring them.
With increasing emphasis on cluster based
development of the MSME, the TRCs have
started concentrating on clusters of small
industries for delivery of appropriate
technology related services.
3.1.3 Besides, there are 18 autonomous
bodies operating with the SIDO, which
offer to the MSME an array of services in
product design, tooling, research an d
human resource development, marketing,
etc. These autonomous institutions
include 10 Tool Rooms located at
Hyderabad, Bhubaneshwar, Kolkata,
Jamshedpur, Aurangabad, Indore,
Ahmedabad, Ludhiana, Jalandhar and
Guwahati; two Central Footwear Training
Institutes at Agra and Chennai; two
Product-cum-Process
Development
Centres at Agra and Meerut; one
Fragrance & Flavour Development Centre
at Kannauj, one Centre for Development
of Glass Industry at Firozabad, one
Institute for Design of Electrical Measuring
Instruments at Mumbai and one Electronic
Service
and Training Centre at
Ramnagar.
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Annual Report 2006-2007
3.1.4 The major activities of SIDO include
the following:
Implementing / monitoring the
flagship schemes of:
Advising the Government in
formulation of policies and
programmes/projects/schemes for
the promotion and development of
the MSME.
Providing techno-economic and
managerial consultancy, common
facility and extension services to the
MSME.
Credit Guarantee Fund
o
Credit Linked Capital Subsidy
for Technology Upgradation
o
Small Industries Cluster
Development Programme
3.1.5 An amount of Rs. 378.11 crore has
been allocated for implementation of the
plan schemes during the financial year
2006-07.
Providing support for technology
upgradation, modernisation, quality
improvement and infrastructure
facilities.
3.2.0
Assisting the MSME in human
resource development through
training and skill upgradation.
3.2.1 ADVERTISING AND PUBLICITY
Providing economic information
services to the MSME.
Maintaining a close liaison with the
Central Ministries, Planning
Commission, State Governments,
Financial Institutions and other
organisations concerned with the
development of the MSME.
Evolving,
implementing
and
coordinating
policies
and
programmes for development of the
MSME as ancillaries to large and
medium industries.
Providing testing and calibration
services to the MSME.
16
o
SIDO SCHEMES/ MEASURES
FOR PROMOTION OF SMALL
SCALE INDUSTRIES
3.2.1.1 T h e A d v e r t i s i n g a n d P u b l i c i t y
Division of Small Industries Development
Organisation
(SIDO)
disseminates
information about the Government policies
and programmes, incentives and facilities
and institutional support services available
to MSMEs. It coordinates with the
Directorate of Audio Visual Publicity (DAVP)
and SIDO’s field offices for timely
appearance of advertisements on
entrepreneurship
development
programmes, skill development courses,
etc., in local language newspapers in
different parts of the country.
3.2.1.2 A n e f f e c t i v e m e d i a p l a n f o r
coverage was prepared for wide publicity of
Ministry of Small Scale Industries
the special events organised by the Ministry
of Small Scale Industries and Ministry of
Agro & Rural industries. 7 display
advertisements for National Expo of Small,
Agro & Rural Industries and National
Convention & National Award Function were
designed and released in all daily English/
Hindi newspapers for wide publicity across
the country for a period of 14 days. Publicity
material for such events covering handbills,
brochures, exhibitor’s directory, jingles on
radio, TV spot massages, hoarding, posters,
banners in English & Hindi, etc., was
prepared for various modes of publicity. In
addition to this, advertisement on the Micro,
Small
and
Medium
Enterprises
Development Act, 2006 was also designed
and released in the national newspapers on
2 nd October, 2006 for general awareness.
The Division also arranged the press
conference and meet and coordinated the
press coverage & releases of such events.
gazette notifications, field activities,
statistical and economic information as well
as articles on various issues pertaining to
the MSMEs.
3.2.2 LAGHU UDYOG SAMACHAR
AND OTHER PUBLICATIONS
(vi) Naye Udmiyon Ke Liye
Margdarshika (In press)
3.2.2.1 L a g h u U d y o g S a m a c h a r , a b i monthly Journal in English and Hindi for
MSMEs is disseminating updated
information for the benefit of the prospective
and existing entrepreneurs. Laghu Udyog
Samachar is an important window in print
for the MSMEs, providing access to the
latest information on a variety of topics. It
creates awareness and disseminates
information on policies and programmes of
the Central and the State Governments,
Government of India orders, circulars,
3.2.3 INFORMATION &
FACILITATION COUNTER
(IFC)
3.2.2.2 During the year 2006-07, following
publications were brought out:
(i)
Laghu Udyog Samachar
January - March, 2006
Bilingual
(ii)
Laghu Udyog Samachar
April – May & June-July,
2006 (combined issue)
Bilingual
(iii) Laghu Udyog Samachar
August – September,
2006
Bilingual
(iv) Laghu Udyog Samachar
Bilingual
October -December, 2006
(In press)
(v)
A Guide to New
Entrepreneurs
English
Hindi
The Information and Facilitation
Counter (IFC) in the office of the DC (SSI)
is disseminating updated information for the
benefit of the prospective and existing
entrepreneurs. The IFC provides speedy
and easy access to information to the public
on the services and activities of SIDO and
related institutions in the area of MSMEs
17
Annual Report 2006-2007
promotion and development. The IFC is
computerised (Touch Screen Kiosk) and
supplemented by hard copies of information
such as brochures, pamphlets, books, etc.
The general information and documents
made available to the entrepreneurs pertain
to (i) counselling & information on how to
set up an enterprise and provide proper
guidance, (ii) documents on technical
schemes, project reports and details of
various programmes implemented by the
SIDO, (iii) policies concerning MSMEs and
schemes of various State Governments for
promotion of MSMEs, (iv) give information
on the filing of memorandum, (v) information
on the Micro, Small and Medium Enterprises
Development Act, 2006, (vi) credit policies
of the Government, (vi) statistics related to
small scale industries, (vii) technical and
marketing information concerning MSMEs,
(vii) list of Items reserved for exclusive
manufacture in MSMEs, etc.
3.2.4 SMALL ENTERPRISE
INFORMATION & RESOURCE
CENTRE NETWORK (SENET)
3.6.4.1 “Small Enterprise Information &
Resource Centre Network” (SENET), was
launched in April 1997 SENET has been
awarded the Golden Icon National Award 2005
for “Best Documented Knowledge Resource”
under Professional Category by the
Department of Administrative Reforms & Public
Grievances (DARPG), Government of India.
The scheme of SENET was modified and its
scope enlarged to include office automation.
18
The objectives of the SENET scheme are:
to pioneer, create and promote webbased database of all relevant
information, data, etc., for the
benefit of small scale sector;
to facilitate easier on-line access to
information seekers, especially the
small scale sector, by networking
to the extent possible, all relevant
data from Central & State
governments, government agencies
engaged directly or indirectly in the
promotion, development, etc. of the
MSME sector, National and Statelevel industry associations, NGOs,
etc.;
·
to establish possible linkages with
existing databases and the end
entrepreneurs for development and
promotion of the small scale sector;
to standardise by introducing
automation tools and related softwares to streamline data storage
activity in the office of the DC(SSI)
with an objective of bringing out
transparency of relevant real time
data through on-line access by the
public;
to create and maintain a website for
hosting all relevant data, to the
extent possible, as available within
the Office of the DC (SSI);
to also hyperlink other websites,
especially field formations of the
Ministry of Small Scale Industries
Office of the DC(SSI), autonomous
bodies,
other
government
departments, etc. in order to enable
one-stop-access for the information
seekers, industry associations,
individual industries, etc.;
3.2.4.2 PERFORMANCE /
ACHIEVEMENTS OF SENET
3.2.4.2.1
In the headquarters at Delhi,
IT-Infrastructure in the main Centre has
been developed with a dedicated server
room having several independent servers,
including two web-servers for hosting this
office’s website. Three database servers
have been commissioned along with 2-Mbps
dedicated leased-line connectivity along
with a structured LAN. An English website
was created and launched in 2000. It was
upgraded to a knowledge-based database
driven, interactive portal, which was
launched on 30 th August 2001. This portal
now has more than 8000 pages of static
information and is being updated regularly.
A Hindi language website has also been
created and regularly maintained through an
hyperlink. The entire IT-infrastructure has
been protected by installation of a highly
sophisticated Intruder Detection System
(IDS). Local Area Networking (LAN) has
been introduced by providing computers to
almost all the officers. All computers have
been networked with LAN and are also
provided with internet connections. A few
computers have been provided with access
to view live parliamentary proceedings. On-
line data for ISO-9000 reimbursement
scheme has been introduced. The latest
MSMED Act-2006 has been hosted on the
website.
Document
Management
Information System (DMIS) has been
introduced to enable a system to track file
tracking.
3.2.4.2.2
In field offices of the Office of
the DC(SSI), 20 SENET Centres were
initially given networking equipment for 64
kbps leased line connection to the main
centre and database building. 10 more SISIs
were provided with networking hardware.
Almost all SISIs will be networked during
the current financial year. All SISIs have
been hyperlinked to website of the Office
of the DC(SSI). Thirty numbers of ‘Touch
Screen Kiosks’ have been installed in all the
field offices, namely Small Industries
Services Institutes (SISIs) throughout the
country to enable information seekers get
any web-based data pertaining to office of
the DC(SSI).
3.2.5 MODERNISATION OF SIDO
LIBRARIES
3.2.5.1 S I D O m a i n t a i n s l i b r a r i e s a t i t s
headquarters and in all its field offices.
These libraries make available technical
information required for the development of
the SSI. The libraries are used by the
officers of the institutes and entrepreneurs
in the area to learn about new developments
in various segments of industrial and
business environment. The libraries
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Annual Report 2006-2007
maintain technical books, journals, reports,
project profiles, statistical surveys, other
related publications, etc.
3.2.5.2 During the year 2006-07, funds to
the tune of Rs. 19 lakh have been provided
to 37 Institutes to purchase technical books,
journals, magazines including installation of
computer to keep update record of the
books.
3.2.6 SCIENCE & TECHNOLOGY,
RESEARCH AND
DEVELOPMENT
3.2.6.1 ELECTRONICS SERVICE &
TRAINING CENTRE (ESTC),
RAMNAGAR, UTTARANCHAL
Electronics Service & Training Centre
(ESTC) has been set up at Ramnagar
(Uttarakhand) with UNDP assistance as a
Government of India Society under the
Societies Registration Act, 1860 in April
1986 in the State of Uttarakhand. The main
objective of setting of this Centre is to
develop human resources to meet the
essential requirements for transfer of
technology in assembly and manufacturing
of electronic items and parts to promote
growth of electronics industry in the small
scale sector. The project was initially
approved by the Government of India in
September 1985 and the Centre became
operational in April 1989.
3.2.6.2 INSTITUTE FOR DESIGN OF
ELECTRICAL MEASURING
INSTRUMENTS (IDEMI)
20
The Institute for Design of Electrical
Measuring Instruments (IDEMI) was set up
in Mumbai (Maharashtra) in 1969 with
UNDP assistance for assisting, mainly, the
small scale industries in the areas of
designing, tooling and manufacturing
electrical, electronics and process control
measuring instruments. The Institute has
been registered as a Society under the
Societies Registration Act, 1860.
3.2.6.3 PROCESS CUM PRODUCT
DEVELOPMENT CENTRE
(SPORTS GOODS & LEISURE
TIME EQUIPMENTS), MEERUT.
Process cum Product Development Centre
(Sports Goods & Leisure time equipments),
Meerut was set up during 1984 as a Govt.
of India Society with UNDP assistance
mainly to cater to the technical need of
sports goods industry in the country. The
Centre aims at upgradation as well as
improvement in existing technology, quality
control, in house R&D activities and
providing Workshop & Testing facilities to
the sports goods & allied industry.
Significant work done during the year: (i)
CNC Technology Centre under mechanical
workshop of PPDC, Meerut has been
started during June 2006 for the benefit of
Sports Goods industry (ii) A testing
laboratory in the premises of CIHT,
Jalandhar has been started in the month of
August 2006 for the benefit of Sports Goods
industry at Jalandhar (iii) A wood seasoning
plant for common facility centre at Sethar
Ministry of Small Scale Industries
for cricket bat cluster of District Anantnag,
(Jammu & Kashmir)under small industry
cluster development programme costing to
Rs.2.46 Crores is being installed by this
Centre on turn key basis. The first module
of seasoning plant has been installed at the
site.
3.2.6.4 CENTRE FOR THE
DEVELOPMENT OF GLASS
INDUSTRY, FIROZABAD
With a view to modernize the existing glass
industry and upgrade the technology for the
Support (iii) Identified a technology,
namely Vertical Shaft Brick Kiln (VSBK)
Technology, under Technology and Quality
Upgradation Programme of Govt. of India
which has been approved by CCEA and will
be provided to five clusters of small scale
brick manufacturers at different places
initially in Punjab, U.P. and M.P. Directors,
SISI of the respective States have been
directed to start the ground work for
implementation of the said programme.
3.2.6.5 PROCESS AND PRODUCT
DEVELOPMENT CENTRE, AGRA
manufacture of different types of glasses,
a Centre for the Development of Glass
Industry (CDGI) was established by
Government of India with the assistance of
UNDP and active support of Government of
Uttar Pradesh. The main objective of the
Centre is to provide technical support to the
small scale glass industry by way of
installation of energy efficient glass melting
furnaces, auxillary furnaces, introduction of
new
type
of
glasses
and
their
standardization, environmental protection
and to introduce developed techniques for
the decoration of glasswares and training
for skill development so as to improve the
quality and productivity of glass units.
Significant work done during the year: (i)
Technical officers of Glass & Ceramic Trade
have prepared and submitted 16 project
profiles on various items till date (ii) Provide
Technology and Quality Upgradation
Process and Product Development Centre,
Agra was set up in 1985 with the assistance
of Government of India, Government of UP
and UNDP/UNIDO.
Significant work done during the year: (i)
PPDC, Agra has undertaken the
development work of divided blast cupola
for the sewing machine cluster, Ludhiana
(ii) PPDC, Agra has conducted diagnostic
study for the agriculture implements cluster,
Karnal (iii) PPDC, Agra has received the
recognition of NCVT for different ongoing
long term training courses (iv) Under the
Cluster Development Programme, the
Centre has undertaken the brass/bronze
cluster of Pareb (Bihar) and is in process
to set up a common facility centre at Pareb
to assist the SSI units. The Centre is also
working on the development of gun cluster
at Munger. PPDC has already prepared the
study reports of these clusters.
21
Annual Report 2006-2007
3.2.6.6 CENTRAL INSTITUTE OF TOOL
DESIGN, HYDERABAD
Fragrance and Flavour Development Centre
has been set up at Kannauj in 1991 by Govt.
of India in collaboration with UNDP/UNIDO
Central Institute of Tool Design, Hyderabad
was established in the year 1968 by Govt.
of India with the assistance of UNDP/ILO.
Original investment in the Institute was
Rs.2.37 crore. The aim of the Institute was
to fulfil tooling and training needs of small
scale industries in the field of Tool Design
and manufacturing.
and Govt. of U.P. for technological
Significant work done during the year: (i) The
Institute has developed import substitute tools
for Research Centres, IMARAT (a DRDO
establishment) (ii) Under the bilateral training,
the Institute had trained 25 international
participants from Iraq, Nigeria, Cambodia,
Philippines, Tanzania, Zambia, Thailand,
Syria, Uzbekistan, Bangladesh & Sri Lanka
(iii) The Institute has arranged 96 State
Government scholarships amounting to Rs.
19.20 lakh during 2005-06 to socially
backward classes like SC/ST/OBC and also
physically disabled candidates (iv) The
Ordinance Factories’ Institute of Learning,
Ordnance factory Board, Yeddumaialaram
enlisted the training services of the Institute
for training Junior Works Manager (direct
recruitment) in CAD/CAM area (v) The
facilities at the tool room has been upgraded
to keep pace with the latest technological
developments (vi)The training modules are
designed as per the need of the industry with
more emphasis on hands on training.
Significant work done during the year: (i)
upgradation of essential oils, aroma
chemicals, fragrance & flavour industry in
the country, especially in the small scale
sector. The Centre is being managed by a
registered Society under the Societies
Registration Act, 1861.
Total 11 fragrance & flavour were created
for aggarbatti, hair oil, spray, aroma
vaporizer and confectionary products (ii)
FFDC has taken extension work for
cultivation of aromatic crops such as French
basil, mints, lemongrass, palmrosa,
citronella, patchouli, rose, buch, jatropha
and safed musli.
3.2.7 TRAINING AND MANPOWER
DEVELOPMENT
3.2.7.1 CENTRAL FOOTWEAR
TRAINING INSTITUTE, CHENNAI
The Central Footwear Training Institute,
Chennai is a Govt. of India Society
functioning
under
Small
Industries
Development Organisation, Ministry of
Small Scale Industries. The basic objective
of the Institute is to develop human
3.2.6.7 FRAGRANCE & FLAVOUR
DEVELOPMENT CENTRE,
KANNAUJ (U.P.)
22
resources for footwear and allied industries
through various training programmes on
footwear technology and allied subjects.
Ministry of Small Scale Industries
The Institute is presently conducting various
types of long term, short term and part time
training courses on various subjects of
footwear technology. Besides this, the
institute provides technical support services
to the user industry by making its facilities
available to them. The Institute also
provides services for development of new
products and patterns as per given sample
or concept.
Significant work done during the year (i)
Under HRD mission, CFTI have been
allotted 14,400 candidates to be trained
during this year 2006-07 out of which 85%
of candidates are women. So far 7200
candidates including 6120 women
candidates have been trained (ii) CFTI,
Chennai has installed CAD/CAM facility,
CNC milling machine for making sole mould,
PU Pouring machine for making unit sole,
footbed & complete shoe and Die less
cutting machine for cutting of upper
components without using the die in the
Institute for providing training as well as
common facility services to small scale
industries (iii) CFTI, Chennai secured third
place at international level in a designing
competition organized by LINEAPPLE,
ITALY, which is a remarkable achievement
of the year 2006-07.
3.2.7.2 CENTRAL FOOTWEAR
TRAINING INSTITUTE, AGRA
The Central Footwear Training Institute,
Agra is a Govt. of India Society functioning
under Small Industries Development
Organisation, Ministry of Small Scale
Industries. The basic objective of the
Institute is to develop human resources for
footwear and allied industries through
various training programmes on footwear
technology and allied subjects. The
Institute is presently conducting various
types of long term, short term and part time
training courses on various subjects of
footwear technology. Besides this, the
Institute provides technical support services
to the user industry by making its facilities
available to them. The Institute also
provides services for development of new
products and patterns as per given sample
or concept.
Significant work done during the year (i) A
footwear project for the development of
artisans in cluster area has been
undertaken from Gujrat Industries Marketing
Corporation Limited, Gandhinagar, Gujrat in
which 19 artisans have been trained (ii)
CFTI, Agra has installed CAD/CAM facility,
CNC milling machine for making sole mould,
PU Pouring machine for making unit sole,
footbed & complete shoe and Dieless
cutting machine for cutting of upper
components without using the die in the
Institute for providing training as well as
common facility services to small scale
industries.
3.2.7.3 U n d e r t h e U m b r e l l a o f S m a l l
Industries Development Organization
(SIDO) Ministry of SSI & ARI, there are 30
Small Industries Service Institutes (SISIs)
and 28 Branch SISIs spread all over the
23
Annual Report 2006-2007
country rendering techno-managerial
assistance to SSI for their growth and
development. Besides providing other
services for the development of small scale
industries, these Institutes organize number
of training programmes to train potential
entrepreneurs in improving their techno/
managerial knowledge and skill with a view
to facilitating them to start their small scale
industries including service enterprises in
various fields.
The training programmes conducted
are:1.
Industrial Motivation Campaigns
(IMCs)
2.
Entrepreneurship Development
Programmes (EDPs)
3.
Skill Development Programme
(SDPs)
4.
Management
Development
Programmes (MDPs)
3.2.7.4 INDUSTRIAL MOTIVATION
CAMPAIGNS (IMC)
SIDO conducts Industrial Motivation
Campaigns(IMCs) (duration of 1 day or 2
days) to identify and motivate traditional /
non-traditional entrepreneurs having
potential for setting up small scale
industries so as to lead them towards selfemployment. During 2006-07, 360 IMCs
have been conducted and upto December,
2006 as many as 48,000 prospective
entrepreneurs including 4500 SC, 1700 ST
24
and 6200 women have been motivated to
start their units. Around 320 IMCs are
expected to be conducted during remaining
months of the financial year for motivating
about 33,000 entrepreneurs.
3.2.7.5 ENTREPRENEURSHIP
DEVELOPMENT PROGRAMMES
(EDPs)
Entrepreneurship
Development
Programmes are being organized as a
regular training activity. The duration of
these training programmes varies from 4 to
6 weeks and minimum intake of 20
participants in each course. General
Entrepreneurship
Development
Programmes were organized by the field
institutions of SIDO. The course contents
of such Entrepreneurship Development
Programmes were so designed so as to
provide useful information on product/
process design, manufacturing practices
involved, testing and quality control,
selection and usage of appropriate
machinery and equipments, project profile
preparation, marketing avenues/techniques,
product/service
pricing,
export
opportunities, infrastructure facilities
available, financial and financial institutions,
cash flow, etc. Field visits to small scale
units and hand-on-training on machines/
processes were also arranged.
The revised training schedules also assist
entrepreneurs in preparing detailed
feasibility report their appropriate appraisal,
Ministry of Small Scale Industries
evaluation, modification, if necessary, also
being advised for carrying out corrections
in feasibility report. Programmes so far
organized inter-alia included Herbal
Cosmetics, High Fashion Garments,
Hosiery, Food & Fruit Processing Industries,
Information Technology, Hardware
Maintenance, Soap and Detergents,
Leather Products/Novelties, Servicing of
Household Electrical Appliances and
Electronic Gadgets, Gem Cutting &
Polishing, Engineering Plastics , Tour
operators, Mobile repairing, Beautician etc.
During the year 2006-07, 564 EDPs have
been conducted and 12000 entrepreneurs
including 2800 SC, 350 ST and 3200 women
have been trained up to December 2006.
Around 220 EDPs are expected to be
conducted during the remaining months for
providing training to around 6000
entrepreneurs.
3.2.7.6 SEPTI, TIRUVALLA
The Small Entrepreneurs Promotion and
Training Institute Tiruvalla was setup during
1994 with the objective to generate
employment opportunities in rural as well
as urban areas through setting up of micro
enterprise, and proper training for
sharpening the technical skills and
encouraging the managerial talent in
entrepreneurs. SEPTI Tiruvalla was
conceived to be a full time training institute
to train 1000 entrepreneurs every year. At
present all the training programmes are of
2 months EDPs and courses are scheduled
on a quarterly pattern. The result of good
training an average of 25 % of the trainees
of this institute succeed in setting up their
own industry, some of the trainees are
getting jobs in foreign countries and most
of them are getting jobs in other parts of
the country. During 2003-04 SEPTI Tiruvalla
has earned an amount of Rs.16.54 lakh
through different EDPs.
3.2.7.7 SEPTI, ETTAMANUR
The Production Centre Ettamanur was
converted into Small Entrepreneur
Promotion and Training Institute in the year
2000 for imparting training to artisans/
entrepreneurs of Kerala in various
disciplines as per the need of the area. The
Institute constantly identified and reviews
the new emerging trades having quick
employment potential, develops appropriate
curricula focusing on end job profiles. The
courses comprise of artisan trade,
management, IT software, computer
hardware and other emerging technologies
including bio-technology etc.
3.2.8 SKILL DEVELOPMENT
PROGRAMME
Comprehensive
training
programmes are organized to upgrade
existing skills and to create new skills in
workers and technicians of SSIs by
organising various technical training
courses for them. The basic objective has
been to provide training to skilled workers
engaged in small scale units and to equip
25
Annual Report 2006-2007
them with better and improved technological
skills of production. Technicians and
workers sponsored by the MSMEs are
imparted such training to develop their skills
in different trades at 42 Workshops attached
to SISIs all over India. Small Industries
Service Institute (SISIs) in their Workshops
organize regular courses in various
technical trades and manufacturing
processes. Such technical courses are
conducted twice/thrice a year by the SISIs.
Courses conducted by SISIs are in Machine
Shop Practice, Heat Treatments,
Electroplating, Sheet metal, Welding Tool
& Die Making, Carpentary, Lens Grinding,
Ceramics, Industrial & Art Wares, etc.
Besides SISIs, Regional Testing Centres,
Tool Room and Training Centres, Processcum-Product Development Centres, Central
Footwear Training Institutes and
Entrepreneurship Training Institutes are
also imparting training in different trades to
upgrade the skills of the workers and
artisans. Emphasis have been given to
organize specific tailor made programmes
for the skill development of socially
disadvantaged groups (OBC, SC, ST,
Minorities and women) in regions of the
states including the less developed areas.
3.2.8.1 During the year 2006-07, 180 SDPs
have been conducted and 3100
entrepreneurs including 450 SC, 150 ST
and 200 women have been trained up to
December 2006. Around 150 SDPs are
expected to be conducted during the
remaining months for providing training to
around 3000 entrepreneurs.
26
3.2.9 OUT-REACH PROGRAMME
FOR SKILL DEVELOPMENT IN
BACKWARD AREAS
In order to cater to specific requirements of
disadvantaged groups and for backward
areas, which face problem in travelling to
urban centres for attending these
development programmes, “Out-reach
Programmes for Skill Development in
Backward Areas” are under consideration.
It is proposed to start some of these
programmes in this year as “Pilot Schemes”.
Amongst autonomous organizations, an
exercise has been undertaken by the CFTIs,
PPDCs, CDGI, FFDC to advise short time
programmes and their financing is under
consideration. Such bodies have also been
advised to contact state and central
agencies that are interested in assisting
such programme and dovetail some
programmes in collaboration with them.
3.2.10 MANAGEMENT
DEVELOPMENT
PROGRAMMES (MDPs)
3.2.10.1
Organizing
Management
Development Training programmes
constitutes an integral part of the activities
of SIDO besides counselling and
consultancy services. Management Training
course on various areas of industrial
management initiatives are also devised for
owner-cum-manager and supervisory level
personnel of small scale industries. These
training programmes are continuously restructured in their contents keeping in view
Ministry of Small Scale Industries
the demands of the area and the local
requirements of the industries. The nature
of target groups and its profile determines
the modification in course content to be
made in order to make them suitable for
contemporary managerial trends and
practices which may be used by small scale
industry executives for attaining desired
strength of managerial action. The subjects
covered under these training programmes
pertain to various aspects of Management
covering Industrial Management, Human
Resource
Management,
Marketing
Management, Export Management &
Documentation, Materials Management,
Financial Management, Information
Technology & Exports, ISO 9000, WTO, IPR
etc.
3.2.10.2
During the year 2006-07, 210
MDPs have been conducted and 5300
entrepreneurs including 550 SC, 150 ST
and 450 women have been trained up to
December 2006. Around 180 MDPs are
expected to be conducted during the
remaining months for providing training to
around 3700 entrepreneurs.
Associations and other stakeholders about
the various aspects of WTO & its likely
implications for the small enterprises, (c) to
coordinate with other Ministries and
Departments of the Govt. of India, (d) to
assist policy formation for MSMEs in
conforming with the provisions of WTO
Agreements and (e) to organize WTO
Sensitization Workshops/Seminars for
creating awareness, capacity building and
sectoral study.
3.3.2 With a view to create awareness
among the MSMEs units, SSI Associations
& other stakeholders on WTO Agreements
and its implications for them, this Ministry
is organizing workshops/seminars all over
the country. As part of this process, three
awareness programmes on various aspects
of WTO are to be organised during current
year.
3.3.3 6 one-day workshops on Intellectual
Property Rights (IPRs) have been organised
during the current year so far. It is further
proposed to organise 8 more such
programmes for creating awareness on this
issue for the MSME sector.
3.3.0 WTO CELL
3.3.1 A separate WTO Cell in the Office
of Development Commissioner (Small Scale
Industries) was set up during 1999 to coordinate the latest developments in regard
to World Trade Organization. The objectives
of the Cell inter-alia include (a) to keep
abreast with the recent developments in the
WTO, (b) to disseminate information to SSI
3.3.4 The Cell is maintaining close liaison
with other concerned Ministries and
Departments like Ministry of Commerce &
Industry, Directorate General of Foreign
Trade, Directorate General of Anti-dumping
& Allied Duties, DG (Safeguard), so as to
keep updated with regard to WTO
Agreements and to protect the interests of
small scale industries.
27
Annual Report 2006-2007
3.3.5 In view of the sixth WTO Ministerial
Conference, a meeting on WTO
negotiations on Non-Agricultural Market
Access (NAMA) was organised under the
chairmanship of Additional Secretary &
Development Commissioner (SSI) and in
consultation with the Ministry of Commerce
& Industry. Various SSI associations & other
stakeholders participated in this meeting
and exchanged their views / concerns
regarding the SSI sector.
3.3.6 A s p a r t o f t h e i n t e r - m i n i s t e r i a l
consultation process, inputs were provided
to the Ministry of Commerce and Industry
in regard to the ongoing negotiations on
various trade agreements for exchange of
tariff concessions. These agreements, inter
alia, included SAARC Preferential Trading
Arrangement (SAPTA), India - Singapore
Comprehensive Economic Cooperation
Agreement (CECA), Free Trade Agreement
(FTA) with GULF Co-operation Council
(GCC), Preferential Trade Agreement (PTA)
between India & Mauritius under Framework
of Comprehensive Economic Partnership
Agreement,
India-ASEAN
Trade
negotiations Group – Kulalampur;
BIMSTEC-FTA.
3.4.0 INTELLECTUAL PROPERTY
RIGHTS (IPR)
3.4.1 With the onset of the trade related
aspects of Intellectual Property Rights
(TRIPS) agreement under WTO and the
consequent changes made by various
countries in their IPR laws including by
28
India, the issues of IPR have gained special
importance in the Small Scale Industry
sector. It was noticed that changes of far
reaching consequences were being effected
in the business landscape without the
MSME sector being aware of it. It was also
felt that IPRs require understanding and
attention by the industry. To meet this
objective, the IPR Cell was created in the
office of DC (SSI) in the year 2001-02 for
generating awareness amongst the MSMEs
on IPR related issues. The small scale
entrepreneurs are being sensitised to the
need for protection and methodology to be
adopted for IPR management through not
only diffusion and upgradation of
technology, but also employing existing IPR
resources for the purpose. Till date, more
than 75 such programmes have been
organised through SISIs all over the
country. During the current financial year
2006-07, it is proposed to conduct 24
sensitization programmes, out of which 10
programmes have been conducted so far
and rest will be completed in the coming
months. Five of these sensitization
programmes are being organised in
association with European Union (EA) –
India, Trade and Investment Development
Programme (TIDP). With the initiatives of
the office of DC(SSI), Kulu Shawls(Kulu)
and Wet Grinder(Coimbatore) have been
registered under Geographical Indications
(GI) Act and efforts are being made to assist
other group of industries/clusters to register
under G.I. Act. This office alongwith World
Intellectual Property Organisation (WIPO)
has made a short film on IPR especially for
Ministry of Small Scale Industries
the guidance of the MSMEs. By protecting
their intellectual property, small scale units
can increase their competitiveness. IP
protection will help in Preventing competitors from
copying or closely imitating a
company’s product or services.
Avoiding wasteful investment in
research and development and
marketing.
Creating a corporate identity
through a trademark and branding
strategy.
Increasing the market value of the
company and enhancing access to
new market.
Intellectual Property Rights consist
of Patent, Trade Marks, Industrial
Designs, Copy Rights, Trade
Secrets
and
Geographical
Indications etc.
3.5.0 BIOTECHNOLOGY
3.5.1 A Biotechnology Cell was created in
the office of the Development Commissioner
(Small Scale Industries) on 16.08.2002 to
deal with the matter for the development
and promotion of biotechnology industry in
the small scale sector. A Task Force has
also been created in the Office of the
Development Commissioner (SSI) to
suggest new initiatives for the development
and growth of small enterprises in this
sector
wherein
Department
of
Biotechnology, Govt. of India and Biotech
Consortium India Limited (BCIL) are
members.
The objective of the
Biotechnology Cell is also to identify the
potential areas of biotechnology for
exploitation and concerted efforts for
promoting the MSME industrial activities in
this area. The areas of tissue culture, biofertilizers, bio-pesticides, mushroom
cultivation, solid waste management are in
focus.
3.5.2 To disseminate information on the
use of biotechnology, a number of
sensitization programmes on biotechnology
in various parts of the country have been
organized during the recent years and more
such programmes will be organized in near
future. These sensitization programmes are
being organized in collaboration with the
Department of Biotechnology and Biotech
Consortium India Ltd.(BCIL), New Delhi and
various State Government agencies.
3.5.3 During year 2006-07, 2 three days
training programmes were conducted at
New Delhi and Bangalore on IPR related
issues specially for Biotechnology based
units alongwith World Intellectual Property
Organisation
(WIPO),
Deptt.
of
Biotechnology through Biotech Consortium
India Ltd. (BCIL) New Delhi. Also a set of
guidelines for establishing Biotechnology
based units is under preparation for the
guidance of the prospective entrepreneurs.
29
Annual Report 2006-2007
3.5.4 To assist MSME entrepreneurs in
getting basic understanding of the
technologies, products and processes, a
set of project profiles have been prepared
in coordination with the Department of
Biotechnology and Biotech Consortium
India Limited covering the following
areas:
Plant Tissue Culture
Bio fertilizers
Bio pesticides
Fresh Water Prawn Culture /
Hatchery
Vermicomposting
Micro propagation Technology
Medicinal Plant Extractions
PCR Diagnostics
Organic farming
3.6.0 NATIONAL AWARD TO
SMALL SCALE
ENTREPRENEURS
3.6.1 T h e S c h e m e o f h o n o u r i n g
entrepreneurs with “National Awards to
Small Scale Entrepreneurs” for displaying
entrepreneurial skills and traits was
instituted by Government of India in the
year 1983. The objective of the scheme is
to boost up the morale and motivate the
small scale entrepreneurs to manage their
Shri Pranab Mukherjee, the then Hon’ble Defence Minister and Shri Mahabir Prasad, Hon’ble Union
Minister of SSI & ARI giving away prize to a successful woman entrepreneur
30
Ministry of Small Scale Industries
units in such a manner that they achieve
higher levels of productivity through
modernization, market expansion, export
development, innovations etc. Three
National Awards (First, Second and Third)
and Special Recognition Awards for an
entrepreneur exhibiting outstanding
performance from each of the participating
States/UT are given under this Scheme.
During the year 1993, the scheme was
extended to add Special Awards at par with
the First National Award to honour an
outstanding woman entrepreneur and an
outstanding entrepreneur from SC/ST
community. Besides a Trophy and a
Certificate, the First, Second & Third Award
carry a Cash Prize of Rs.25,000/-,
Rs.20,000/- and 15,000/- respectively. The
Special Recognition Award carries a cash
prize of Rs.10,000/- each and a Trophy and
a Certificate.
3.6.2 2 0 e n t r e p r e n e u r s h a v e b e e n
honoured with these Awards for the year
2005 by the Hon’ble Defence Minister in
the convention held on 7 th October 2006.
Shri Pranab Mukherjee, the then Hon’ble Defence Minister alongwith Shri Mahabir Prasad, Hon’ble
Union Minister of SSI & ARI is giving away the National Award. From left to right are, National Awardee,
Shri A.C. Jose, Chariman Coir Board, Union Minister (SSI & ARI), then Defence Minister, Shri Anupam
Dasgupta, the then Secretary (SSI&ARI) and Shri Jawhar Sircar, Addtional Secretary and Development
Commissioner (SSI)
31
Annual Report 2006-2007
3.7.0 NATIONAL AWARD FOR
RESEARCH AND
DEVELOPMENT
3.7.1 Government of India have instituted
a Scheme of National Awards under the title
“National Awards for Research &
Development Efforts in Small Scale
Industries” from the year 1999. The
objective of the Scheme is to encourage inhouse R&D efforts including innovation in
Small Scale Industries. Under this Scheme,
First, Second and Third Awards are
conferred to deserving registered small scale
industries. The First, Second and Third
Awards carry a Cash Prize of Rs. 25,000/-,
Rs. 20,000/- and Rs. 15,000/- respectively
besides a Certificate and a Trophy.
32
3.7.2 3 e n t r e p r e n e u r s h a v e b e e n
honoured with these Awards for the year
2005 by Hon’ble Defence Minister in the
convention held on 7 th October 2005.
3.8.0 NATIONAL AWARD FOR
QUALITY PRODUCTS
3.8.1 Government of India instituted a
scheme of National Awards under the title
“National Award for Quality Products in
Small Scale Sector” in the year 1986. The
main objectives of the scheme are to
promote the concept of Quality and Quality
Assurance amongst the small scale
entrepreneurs. Small Scale Industries
engaged in the production of such items
selected for the year are honoured with
Ministry of Small Scale Industries
Awards. One National Award is given for
each category of the items selected. The
award carries a Trophy, a Certificate and a
Cash Prize of Rs.25,000/-. 18 entrepreneurs
have been honoured with these Awards for
the year 2005 for 18 products groups by the
Hon’ble Defence Minister in the convention
held on 7 th October 2006.
3.9.0 SUB-CONTRACTING
EXCHANGE FOR ANCILLARY
DEVELOPMENT
3.9.1 Ancillarisation and sub contracting
in India, started simultaneously with the
Government setting up enterprises almost
in all the core sectors viz. manufacturing
equipment
for
defence/railways/
telecommunication, heavy electrical,
electronics,
chemicals,
fertilizers,
petroleum/petro-chemicals and various
other engineering and processing
industries. The large industries notably HMT
and other PSUs started sub-contracting low
tech items to small scale/ancillary industries
that developed a sound base.
3.9.2 In order to help the vendees/vendors,
Sub Contracting Exchanges were set up by
Small Industries Development Organisation
(SIDO) in selected Small Industries Service
Institute for storing data with regard to the
capacities and capabilities of small scale units
in terms of products manufactured/services
rendered. The Sub Contracting Exchange
also maintains the requirements of buyers,
which could be products, components, subassemblies, and services
3.9.3 The main objective of storing such
a data is to arrange match-making through
an appropriate software between a buyer
and seller that may result in increased
business opportunities. 35 Sub-contracting
Exchanges have been set up in Small
Industries Service Institute/Branch Small
Industries Service Institutes. Under Small
Industries Development Organisation
(SIDO) which are now being strengthened
under the existing scheme by providing
necessary capital equipment, furniture etc.
3.9.4 Under this scheme, the financial
assistance up to Rs. 4.7 lakh is provided to
Industries Association/NGOs for purchasing
capital equipment such as Computer and
accessories, suitable software, furniture,
photocopier machine, telephone, Fax
machine, spiral binding & cutting machine,
etc.
3.9.5 A matching grant is also provided
to these Exchanges on tapering basis for
building rent, stationery, phone/fax charges,
electricity charges and conveyance at the
rate of 50%, 30% and 10% of the running
expenses not exceeding Rs.1.25, 0.75 and
0.25 lakh per year respectively during the
initial three years subject to a ceiling of Rs.
1.57 lakh per SCX.
3.9.6 S o f a r 6 1 S u b - C o n t r a c t i n g
Exchanges have been sanctioned which
have been set up by Industries
Associations/NGOs in various parts of the
country up to 30.11.06. Four more Subcontracting Exchanges are likely to be set
33
Annual Report 2006-2007
up during the remaining months of the
financial year 2006-07.
3.9.7 Under the existing scheme, Vendor
Development Programme both at National
and State Level are also conducted by Small
Industries Service Institute. These Vendor
Development Programmes provide a
common platform for large scale industries
i.e. purchasing organizations and small
scale industries as sellers to interact with
each other and establish long term linkages.
3.9.8 2
Vendor
Development
Programmes have been conducted by the
Small Industries Service Institute in the
different part of the country till 30.11.2006
and about 43 Vendor Development
Programmes are likely to be conducted in
the remaining months of the financial year
2006-07.
3.10.0 SCHEMES OF TOOL ROOMS
3.10.1 CENTRAL TOOL ROOM,
LUDHIANA
Central Tool Room, Ludhiana was
established by Govt. of India in technical
collaboration with Govt. of Federal Republic
of Germany and with active support of
Government of Punjab for providing the
services in the area of tooling (Tool Design
and Tool Manufacture), Precision Machining,
Heat Treatment, Technical Training and
Technical Consultancy to metal working
industry in general and small scale industries
in particular so as to improve the quality and
productivity of such units.
Significant work done during the year: (i)
Established one of the best Rapid
Prototyping Centre in the country (ii)
Developed several toolings as Import
Trainees at Central Tool Room, Ludhiana
34
Ministry of Small Scale Industries
substitution for SSIs (iii) III Moulds were
developed for Door Closer and lock for
exporting products to snowing regions of
Europe for a SSI unit (iv) Special Heat
Treatment process was established for
surgical tools, dies, moulds etc.
3.10.2 INDO-GERMAN TOOL ROOM,
AHMEDABAD
technical collaboration with the Government
of Federal Republic of Germany. The State
Government of Madhya Pradesh provided
land and building to the project. The Tool
Room has been set up to fulfil the tooling
and training needs of the small scale
industries in the field of Tool Design and
Manufacture and training of technical
personnel in these fields.
Indo-German Tool Room, Ahmedabad was
established by Government of India in
technical collaboration with the Government
of Federal Republic of Germany. The Tool
Room has been set up to fulfil the tooling
and training needs of the small scale
industries in the field of Tool Design and
Manufacture and training of technical
personnel in these fields.
Pratical training of trainees at IGTR, Indore
Significant work done during the year: (i)
Developed several toolings as import
substitution for SSIs (ii) The facilities at the
tool room has been upgraded to keep pace
with the latest technological developments
(iii) The training modules are designed as
per the need of the industry with more
emphasis on hands on training (iv) The Tool
Room developed import substitute moulds
for bullet case magazine for defence
requirement, a thin walled article moulds for
an SSI unit. Few progressive tools were
made for pump impeller improving
productivity and pump efficiency.
3.10.3 INDO GERMAN TOOL ROOM,
INDORE
Indo-German Tool Room, Indore was
established by Government of India in
Significant work done during the year: (i)
The Tool Room has completed the precision
motion jacks which has been exported to M/
s. CERN, Switzerland on behalf of Centre
for Advanced Technology, Indore (ii) The
Tool room developed Injection Mould for
Switchgear Industry (iii) Developed several
toolings as import substitution for SSIs (iv)
The facilities at the tool room has been
upgraded to keep pace with the latest
technological developments (v) The training
modules are designed as per the need of
the industry with more emphasis on hands
on training.
3.10.4 INDO-GERMAN TOOL ROOM,
AURANGABAD
Indo-German
Tool
Room,
35
Annual Report 2006-2007
Pratical training of trainees at IGTR, Aurangabad
Aurangabad
was
established
by
Government of India in technical
collaboration with the Government of
Federal Republic of Germany. The State
Government of Maharashtra provided land
and building to the project. The Tool Room
has been set up to fulfil the tooling and
training needs of the small scale industries
in the field of Tool Design and Manufacture
and training of technical personnel in these
fields.
Significant work done during the year: (i)
The tool room has achieved ISO
14001:2004 certificate (Environmental
Management System) (ii) The tool room has
successfully conducted the training course
of one-year duration in the area of Tool &
Die Making for 22 students from South
Africa (iii) Developed several toolings as
import substitution for SSIs (iv) The tool
room is taking steps to develop e-learning/
e-teaching practices in tool and die
technology (v) The facilities at the tool room
has been upgraded to keep pace with the
36
latest technological developments (vi) The
training modules are designed as per the
need of the industry with more emphasis on
hands on training (vii) Nearly 100%
placement for the long term trainees has
been achieved (viii) MoUs have been signed
for continuous CAD/CAM and Tool Design
education with Jawaharlal Nehru
Engineering College Aurangabad ad MGM
College of Engineering, Nanded (ix) To have
awareness about the training courses
offered by the tool room, various schools
have been approached to arrange the visit
of their students to tool room and large
number of students from different schools
have visited the facilities of IGTR (x) The
tool room has first time developed the 2wheeler LPDC die for M/s. Endurance
Transmission System.
3.10.5 CENTRAL TOOL ROOM &
TRAINING CENTRE, KOLKATA
Central Tool Room & Training Centre,
Kolkata has been established during 1977-
Ministry of Small Scale Industries
Infrastructure at TRTC, Kolkota
78 under technical co-operation programme
between Governments of India and
Denmark to upgrade technology and to
consolidate the project.
Significant work done during the year: (i)
Developed several toolings as import
substitution for SSIs (ii) The Centre has
developed, manufactured and supplied
Blanking Die for Two Rupee Coin to Govt.
of India Mints- Kolkata and Mumbai with
necessary modifications in the Coin
Design as desired by the Mints. Since
these Blanking Die used to be imported
earlier by the Mints these supplies have
enabled the Mints to save considerable
amount of Foreign Exchange (iii) The
training modules are designed as per the
need of the industry with more emphasis
on hands on training (iv) The facilities of
the tool room has been upgraded to keep
pace with the latest technological
developments.
3.10.6 CENTRAL TOOL ROOM &
TRAINING CENTRE,
BHUBANESHWAR
Central Tool Room & Training Centre,
Bhubaneshwar has been set up in the year
1991 under Technical Co-operation
Programme between Government of India
and Government of Denmark, for which
agreement was signed in June, 1989.
Significant work done during the year: (i)
CTTC, Bhubaneswar has got the
Occupational
Health
and
Safety
Administrative System (OHSAS) 18001
certificate from NQA Certification Body (ii)
A total of 520 trainees were placed in 86
different companies including 65 SMEs (iii)
Tailor made Training for Trainers Programme
conducted on CNC Programming and
Computer
Hardware
Maintenance
Management conducted for Director of
Technical Education & Training, Orissa. 19
37
Annual Report 2006-2007
lecturers, instructors from different
Government Polytechnics participated in the
programme (iv) Summer Vacation Training
is being conducted for 1008 Engineering
students from 40 different Engineering
Colleges of 5 States out of which 233 are
girls. This is the highest number of students
the Tool Room has ever handled at a time
(v) Manufactured 3 samples components to
be used for tri-cycle meant for physically
handicapped
for
Artificial
Limbs
Manufacturing Corporation, Bhubaneswar
(vi) Executed machining of Guide Block for
manufacturing of complex holes on turbine
blades, which are being exported to USA,
for a Kolkata based SSI, M/s. Dutta &
Dasgupta.
has been set up in the year 1991 under
Technical Co-operation Programme
between Government of India and
Government of Denmark.
3.10.7 INDO DANISH TOOL ROOM,
JAMSHEDPUR
3.10.8 HAND TOOL DESIGN
DEVELOPMENT AND TRAINING
CENTRE, NAGAUR.
Indo-Danish Tool Room, (formerly Central
Tool Room & Training Centre), Jamshedpur
38
Significant work done during the year: (i)
Developed several toolings as import
substitution for SSIs (ii) The facilities at the
tool room has been upgraded to keep pace
with the latest technological developments (iii)
The training modules are designed as per the
need of the industry with more emphasis on
hands on training (iv) Nearly 100% placement
has been achieved for various long term
trainees (v) Govt. of Jharkhand has
sponsored training programmes for the
students of SC/ST/Minority.
The Hand Tool Design Development
Ministry of Small Scale Industries
and Training Centre, Naguar (SIDO FIELD
UNIT) has been set up at Nagaur in
Rajasthan in the year 1988. The main
objective of this project is to develop hand
tool industry in small and tiny sections
located in around Nagaur by providing
consultancy and advisory extension
services in the areas of tool room, heat
treatment, metal finishing, forging and
testing, common facility services to these
small and tiny industries. They are also
assisting small scale units to adopt modern
technology in the field of product design,
production process and quality control for
cost reduction and improvement in
profitability. Testing facilities and training
facilities are also provided for upgradation
of quality of production and trained
manpower.
3.10.9 CENTRAL INSTITUTE OF HAND
TOOL, JALANDHAR
the industry with more emphasis on handson training (iii) Process developed for
manufacture of Hex shaft industry
machinery at various stages (iv) The
institute has received ISO 9001:2000 and
ISO 14000:2004 certification.
3.10.10
TRTC Guwahati is being set up by
Government of India at Guwahati with an
objective to create facilities for
manufacturing of tools & dies and for
training in tool & die making in the North
East Region. The land & building for the
project is being provided by Government of
Assam. The first phase of construction of
building is nearing completion, however,
TRTC Guwahati has started the training
activities in the campus of SISI, Guwahati.
3.10.11
With a view to upgrade the hand tool
technology in the country and to provide
the necessary technology support
services, the Govt. of India has set up the
Central Institute of Hand Tools as a
National Institute at Jalandhar in the State
of Punjab as autonomous organisation
with the assistance of U.N. I.D.O. in the
year 1983.
Significant work done during the year: (i)
The facilities at the tool room has been
upgraded to keep pace with the latest
technological developments (ii) The training
modules are designed as per the need of
TOOL ROOM & TRAINING
CENTRE, GUWAHATI
MINI TOOL ROOM & TRAINING
CENTRE
A “Mini Tool Room” Scheme has been
approved to help State Governments to set
up Small Tool Rooms for creating localized
training and production facilities for
rendering assistance to the small scale units
in the field of Tool & Die Making. The
scheme provides one time assistance upto
90% of the cost of machinery & equipment,
limited to Rs. 9 crore, for setting up a new
Mini Tool Room and 75% cost of machinery
& equipment limited to Rs. 7.5 crore for
upgradation of existing Mini Tool Room.
The balance machinery cost and the cost
39
Annual Report 2006-2007
of land and building and recurring
expenditure is funded by the concerned
State Government.
OBJECTIVES:
(a)
Manufacture of jigs, fixtures, cutting
tools, gauges, press tools, plastic
moulds, forging dies, pressure
casting dies and other tooling for
small scale industries. Advanced
tool making process using CAD/
CAM techniques are to be adopted.
(b)
To provide training facility in tool
manufacturing and tool design to
generate a work force of skilled
workers, supervisors, engineers/
designers etc.
(c)
To work as a Nucleus Centre for
providing consultancy, information
service, documentation etc. for
solving the problems related to
tooling of industries in the region.
(d)
To act as a Common Facility Centre
for small scale industries and to
assist them in product and prototype
development.
PRESENT STATUS:
The proposals received from Governments
of Kerala, Madhya Pradesh, Karnataka
(Hubli & Hassan), West Bengal for
Upgradation of their existing tool rooms and
proposals from Governments of Nagaland,
Tripura, Jharkhand (Ranchi & Dumka),
Chhattisgarh for setting up of new Mini Tool
40
Rooms have been approved and
procurement of machinery & equipment is
in progress. MTRs at Bhopal, Aroor
(Kerala), Howrah, Dimapur (Nagaland) are
already functioning.
3.11.0 MARKETING ASISTANCE AND
EXPORT PROMOTION
3.11.1 PARTICIPATION IN OVERSEAS
TRADE FAIRS
The SIDO is to participate in 10 fairs for the
year 2006-07. Upto November, 2006,
DC(SSI) has participated in four fairs Hannover Messe – 06, Germany, DIY Show,
Japan, Made-in-India Show, China & ATF06, Cape Town (South Africa) and exhibits
of 51 SSI units were displayed by 40 SSI
representatives under SIDO stall. Exhibits
from 72 SSI units are expected for display
by their representatives in the remaining six
International Trade Fairs under SIDO stall
upto March, 2007.
3.11.2 SSI-MDA SCHEME
As per modified guidelines, participating unit
in trade fair may get total subsidy upto Rs.
1.25 lakh per unit (Rs. 1.5 lakh for micro
manufacturing enterprise) once in a year
towards subsidy on space rent, shipping
cost & air fare. This year, 90 individual
participants will benefit under the scheme.
Rs. 5.25 lakh have been reimbursed to 35
SSI units for adoption of Bar Code
Certificate from GS1 and about 45 SSI units
are anticipated to avail subsidy for adoption
Ministry of Small Scale Industries
of Bar Code upto March, 2007. Under the
scheme, seven market studies will be also
taken by SISIs.
3.12.0 REGIONAL TESTING
CENTRES
3.12.1 SIDO is operating four Regional
Testing Centres(RTCs) located at New
Delhi, Mumbai, Chennai and Kolkata.
Regional Testing Centres provide testing
and calibration facilities to industries in
general and small scale industries in
particular for raw materials, semi finished
and finished products, manufactured by
them. These centres are equipped with the
Electrical Calibration
Metallurgical Testing & Analysis
Mechanical Calibration
State of art indigenous and imported
equipments in the disciplines of chemical,
mechanical, metallurgical and electrical
engineering to under take performance
test, type test and acceptance test of semi
finished, finished products etc. The
Centres also undertake calibration works
for measuring instruments and equipments
confirming to international standards.
These Centres are accredited by
internationally recognized National
Accreditation Board of Testing &
Calibration laboratories(NABL) certification
as per ISO(17025).
41
Annual Report 2006-2007
3.12.2 The performance of RTCs and their
self-sufficiency level during last four years
are as follows (Table 3.1).
3.13.2 The presence of FTSs in the field
has enabled the cluster of industries in the
small scale sector to utilize the testing
Performance of RTC’s : Table 3.1
Year
Revenue
earned
(Rs. lakh)
Recurring
Expenditure
(Rs. lakh)
%age of Revenue/
Expenditure
(self-sufficiency
No. of jobs
completed
No. of tests
performed
level)
2002-03
238.80
344.30
69.35
12336
134646
2003-04
268.50
343.18
78.24
12409
139569
2004-05
259.74
367.88
70.60
10872
136362
2005-06
247.60
393.50
62.92
11616
134454
2006-07 (up to 227.69
319.82
71.19
9031
115157
106.61
71.19
3010
38386
31
st
Dec.’06)
Jan.’07to
75.90
March’07
(Anticipated)
3.13.0 FIELD TESTING STATIONS
3.13.1 In order to provide testing facilities
in the area with cluster of industries and
some strategic areas, the Government of
India have set up seven Field Testing
Stations at Jaipur, Bhopal, Kolhapur,
Hyderabad, Bangalore, Pondicherry and
Chenganacherry. The Field Testing
Station, Chenganacherry has been
recently shifted to the premises of Small
Entrepreneur Promotion and Training
Institute (SEPTI), Ettumanur. These
Testing Stations extend facilities for
testing of various products viz .chemicals,
dye-stuffs, lamps, rubber products,
castings and forgings, paints and
varnishes, domestic electrical appliances,
general engineering etc.
42
facilities. These FTSs in fact act as
extension of the RTCs thereby serving the
needs of the industries situated in far-flung
areas. The Field Testing Stations are
regularly modernizing/upgrading their
facilities to cater the need of industries in
general and SSI sector in particular,
situated in their locality.
3.13.3 The budget provision is made for
meeting both the recurring and nonrecurring expenditure of Field Testing
Stations (FTSs). The performance of Field
Testing Stations in terms of number of jobs
executed, tests conducted and the revenue
earning is monitored continuously.
3.13.4 The performance of FTSs during
last four years is as follows (Table 3.2)
Ministry of Small Scale Industries
Performance of FTS’s : Table 3.2
Year
Revenue
earned
(Rs. lakh)
Recurring
Expenditure
(Rs. lakh)
%age of Revenue/
Expenditure
(self-sufficiency
No. of jobs
completed
No. of tests
performed
level)
2002-03
50.38
81.36
61.55
8004
34508
2003-04
61.59
78.32
78.64
11035
43306
2004-05
82.88
88.80
93.33
15150
57269
2005-06
85.25
96.59
88.26
16378
57963
68.79
80.60
85.35
12400
41507
22.93
26.87
85.35
4133
13836
2006-07 (up to
31 st Dec.’06
Jan.’07 to
March’07
(Anticipated)
3.14.0 SETTING UP OF TESTING
CENTRES BY INDUSTRIES
ASSOICATION &
MODERNISATION/EXPANSION
OF QUALITY MARKING
CENTRES UNDER THE AEGIS
OF STATE GOVERNMENTS
3.14.1
Under
this
scheme,
Government of India provides one time
capital grant-in-aid equal to 50% of the cost
of testing equipment and machinery
(restricted to Rs.50 lakh) to the Industries
Associations, to set up and operate testing
laboratories of international standards and
also for modernization/expansion of existing
Quality Marking Centres of State
Government and their autonomous bodies.
3.14.2
The scheme covers the
Testing Laboratories established by
Industries Associations including Chamber
of Commerce, Industrial Co-operatives
registered
under
the
Societies
(Registration) act or under any statutory Act.
It also covers expansion/modernization of
the existing centres under the aegis of State
Governments and State Government funded
autonomous bodies.
3.14.3
The year-wise expenditure
incurred so far and the number of testing
centres assisted during the current plan are
furnished below (Table 3.3)
Expenditure incurred/No. of
Testing Cenres assisted : Table 3.3
S.
No.
Year
Expenditure
incurred
No. of
Centres
(Rs. in lakh)
assisted
1.
2002-03
9.50
1
2.
2003-04
Nil
-
3.
2004-05
40.95
1
4.
2005-06
5.
2006-07
8.84
1
(up to Nov., 06)
43
Annual Report 2006-2007
3.15.0 TECHNOLOGY UPGRADATION
3.15.1 SMALL INDUSTRY CLUSTER
DEVELOPMENT PROGRAMME
(SICDP)
3.15.1.1
Broadly,
the
Cluster
Development
Programme
(CDP)
implemented till March, 2006 consisted of
assistance mainly in “soft” areas which
encompasses activities like general
awareness and trust building, counselling,
training and capacity building, exposure
visits,
credit
facilitation,
market
developments etc. It was felt that the “hard”
component, which is directed towards
assisting technology improvements, quality
standardization and testing mainly in the
form of ‘Common Facility Centres’ (CFCs)
equipped with a variety of hardware and
facilities which individual cluster units
cannot afford but are necessary for
technology upgradation, ensuring quality
standards, need to be suitably incorporated
as one of the important component of the
CDP implemented by SIDO.
3.15.1.2
Keeping this in view and the
need for providing stimulating environment
for innovative and competitive micro & small
enterprises, the SICDP guidelines were
comprehensively revised in March, 2006
making the cluster programme more broadbased by facilitating substantial economics
of scale in terms of deployment of available
resources in the medium to long term. The
Government of India’s assistance under the
scheme was enhanced upto Rs.8 crore to
support soft as well as hard intervention
including setting up of common facility
44
centres. The revised guidelines were given
wider publicity and all state governments
have been repeatedly requested to send
suitable proposals for consideration under
this scheme. After issuing the revised
Guidelines, three proposals for setting up
CFCs have been approved so far during the
current year. In addition, diagnostic studies
of 104 new clusters have also been taken
up to identify the area of interventions
required in these clusters.
3.15.1.3
The strategy is now to
subsume the essential features of the
schemes having collective approach for
development of clusters such as Scheme
for Integrated Infrastructural Development
and Scheme for setting up of Testing
Centres/programmes under SICDP.
Although the objective of SICDP is to
provide assistance to MSE for common
purpose, it is also not less important to
strengthen industrial units located in the
cluster individually. There are schemes of
Ministry of SSI for credit, technology
upgradation, quality certification, such as,
Credit Guarantee Scheme for investment,
Credit Linked Capital Subsidy Scheme for
technology upgradation, ISO 9000/14001
reimbursement scheme for certification, etc.
through which assistance is provided to an
individual micro & small enterprise. Under
the new approach, the emphasis is to
dovetail all such schemes under SICDP for
the overall development of MSE and
optimum utilisation of resources.
3.15.1.4
Several other Ministries/
Departments and agencies have also taken
up their versions of “cluster development”. In
Ministry of Small Scale Industries
order to harmonise divergences in the concept
as well as content of cluster development
programmes, an Empowered Group of
Ministers (EGoM) has been constituted very
recently under the chairmanship of the
External Affairs Minister. Ministry of SSI has
been nominated for servicing the EGoM.
The scheme provides incentive (of upto Rs. 75,
000 per unit) to SSI units which acquire ISO
9000/ISO 14001 certifications. The scheme, in
operation since March 1994, was enlarged to
include reimbursement of expenses for
acquiring ISO 14001 certification also w.e.f. 28th
October 2002.
3.15.2 ISO-9000/ISO-14001
CERTIFICATION
REIMBURSEMENT SCHEME
3.15.2.2 The procedural guidelines,
application forms, etc., have been placed on
the SIDO website, (www.laghu-udyog.com)
and (www.smallindustryindia.com).
3.15.2.1The process of economic liberalisation
and market reforms has opened up the Indian
small scale sector to global competition. In
order to enhance the competitive strength of
the small scale sector, the Government
introduced an incentive scheme for their quality
improvement and environment management.
3.15.2.3 Since the inception of the scheme of
ISO-9000 reimbursement, 13433 SSI units
amounting to Rs. 70.88 crore have been
benefited upto Nov.2006. Year wise status of
the units reimbursed under ISO 9000 Incentive
Scheme is as under (Table 3.4)
Status of the units reimbursed under ISO 9000 Incentive Scheme : Table 3.4
Year
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-05
2005-06
2006-07
Total:
No. of Units
3
10
48
54
85
174
361
649
992
1182
917
3314
4101
1543
13433
Amount of assistance (Rs. crore)
Rs. .016
Rs. .043
Rs. .25
Rs. .39
Rs.0.49
Rs. 0.96
Rs.2.25
Rs.4.05
Rs.6.00
Rs.6.99
Rs.4.77
Rs.17.33
Rs.19.44
Rs. 7.37(up to 21.11.06)
Rs.70.88
Average assistance/unit = Rs. 52,765
45
Annual Report 2006-2007
3.16.0 ENERGY CONSERVATION
PROGRAMME (UNDER
TECHNOLOGY
UPGRADATION SCHEME)
3.16.1 I n p u r s u a n c e t o t h e N a t i o n a l
Programme on Energy Conservation, ‘Small
Industry Development Organisation’ (SIDO)
launched this programme in small scale
industries in the year 1990-1991. There are
many energy intensive areas in small scale
sector, such as foundry, forging, steel rerolling mills, glass & ceramic, bakeries, etc.
The source of energy for these industries
is coke/coal, petroleum products and
electricity. The consumption of energy in
this small scale sector is very high.
3.16.2 Achievements of the programme
upto December 2006 during 2006-07 are:
No. of programmes allocated
to SISIs and RTCs
Programme conducted upto
Dec, 2006
No. of persons benefited from
SSI sector
33
3.17.2 During the year 2006-07, till 31 st
Dec. 2007 an amount of Rs. 98.2 lakh was
allotted to SISI/ Br. SISIs for purchase of
new CNC machines and CAD/CAM
Software. During the year, SISIs located
at Allahabad, Guwahati, Mumbai, Chennai,
Kanpur, Bangalore purchased high techmachines and CAD/CAM softwares. Till
date, 17 workshops has been upgraded
under this scheme.
3.18.0 INTEGRATED
INFRASTRUCTURAL
DEVELOPMENT (IID) SCHEME
4
60
3.17.0 UPGRADATION OF SIDO
WORKSHOP INTO MINI TOOL
ROOM
3.17.1 A Scheme of “Upgradation of SIDO
Workshops into Mini Tool Rooms” was
approved in 1992-93, envisaging conversion
of a few common facility workshops
attached to SISIs/Br. SISIs into Mini Tool
Rooms. Consequently, CNC machines,
46
CAD/CAM software, etc., have been
provided to the workshops at SISI, Mumbai,
Chennai, Bangalore, Jaipur, Delhi, Kolkata,
Kanpur, Ludhiana, Indore, Patna, Goa,
Thrissur, Guwahati, Jammu and Ranchi and
Br. SISI, Mangalore, Varanasi, Gwalior,
Hubli, Allahabad, etc. CAD/CAM facilities
have also been provided in selected SIDO
field offices as per the need of the area.
3.18.1 T h e I n t e g r a t e d I n f r a s t r u c t u r a l
Development (IID) aims at providing basic
infrastructural facilities like power
distribution network, water, roads,
telecommunication, drainage and pollution
control facility, banks, storage and
marketing outlets, common service
facilities and technological back up
services etc., to enable establishment of
small scale and tiny units, thereby creating
employment opportunities and increasing
exports. The scheme covers rural as well
as urban areas with a provision for 50%
Ministry of Small Scale Industries
reservation for rural areas and 50%
industrial plots for tiny sector. The scheme
also
provides
for
upgradation/
strengthening of the infrastructural
facilities in the existing old industrial
estates.
3.18.2 Under the scheme the State/Union
Territory governments concerned or a good
Non-governmental organization (NGO) with
sound financial position are required to select
suitable sites, firm up the project proposal
and get the project appraised by Small
Industries Development Bank of India
(SIDBI). The estimated cost for setting up
an IID centre is Rs. 5 crore (excluding the
cost of land). The central government
provides 40% of the cost as grant, limited to
a maximum of Rs. 2 crore and the remaining
amount would be loan from SIDBI/Banks/
Financial institutions or state funds.
3.18.3 In order to provide a fillip to the
growth of small scale industries, a special
incentive is envisaged in the scheme for the
North Eastern Region (including Sikkim),
J&K, Himachal Pradesh and Uttarakhand
with a provision of central grant up to 80%
of the project cost (subject to a maximum
of Rs. 4 crore).
3.18.4 The IID scheme is demand driven
and the initiative for setting up of an IID
centre has to be taken by the state/Union
Territory governments.
3.18.5 Upto December, 2006, 105 Centres
in various states, including 21 for
upgradation of old industrial estates, have
been approved. Out of the 84 new centres,
34 centres have been completed and
remaining others are at various stages of
implementation. Small and tiny units have
been established in 48 centres and they are
operational. In all 2112 units have been
established and 21878 persons have been
employed. As regards projects for
upgradation of infrastructural facilities, work
in two projects has been completed which
has helped enhancement of operational
efficiency of the units located therein.
Central grant of Rs. 115.87 crore has been
released (in full or a part) to 98 centres upto
31.12.2006. During 2006-07 (upto
December, 2006), 3 new IID centres have
been sanctioned.
3.19.0 COLLECTION OF STATISTICS
OF SSIs
3.19.1 The scheme was started during Fifth
Five Year Plan period in 1975 with the
objective to collect, compile and
disseminate statistical data/information on
small scale industrial sector. Conduct of
Census, Sample Survey, collection of IIP
data and Updation of frame are covered
under the scheme. The scheme is
implemented through State Directorates of
Industries (SDIs) and its Districts Industries
Centres (DICs).
3.19.2 The coverage of the scheme has
been extended to collect data on the Micro,
Small and Medium Enterprises since 2 nd
October 2006 (the day of commencement
47
Annual Report 2006-2007
of the MSMED Act 2006). A decision has
also been taken to conduct a new census
for the MSMEs. To facilitate launching of
the census, it is intended to computerize all
DICs during the 11 th Five Year Plan for
which a proposal has been submitted to the
Planning Commission.
Collection/collation of data for
compilation IIP for SSI sector (with
base 1970).
Updation in the base year for IIP for
SSI from 1970 to 2001-02.
Data collection on 18 reserved items
for inclusion in the general index of
3.19.3 Under the Scheme the following
work are being undertaken:
CSO
Computation of Index of Industrial
Production for small scale sector for
working out growth in production.
Analysis of Registration data.
Preparing work concerning of the 4th
census of MSMEs.
Supply of monthly production data
to Central Statistical Organisation
(CSO) so as to represent SSI sector
in the overall Index of Industrial
Production (IIP) brought out by
(CSO).
3.19.5 INDEX OF INDUSTRIAL
PRODUCTION (IIP) FOR SSI
SECTOR
The objective of IIP is to estimate the growth
Estimation of information on number
of units un-registered.
in production of SSI sector. It is compiled
Estimation
of
production,
employment both registered & unregistered.
based on a basket of 356 items contributing
on a quarterly basis. The IIP is constructed
77% of production as per the First Census.
This data is collected from 2400 units having
an annual production of Rs. 1 crore. As a
48
Updation of Frame and analysis of
Registration
data
and
correspondence with State/UT
Directorates of Industries.
follow up of the Third Census it has been
Conducting census and sample
survey/diagnostic survey, from time
to time.
3.19.4 Performance under the Scheme
during 2006-07 is as under:
Accordingly, at All India level, a basket of
decided to change the base year from 1970
to 2001-02 and also to select a new basket
so as to make the IIP more representative.
468 items covering 24,749 industrial units
have been selected. These items contribute
about 75.5% of the production of the SSI
Sector.
Ministry of Small Scale Industries
3.19.6 PERFORMANCE OF SSIs
3.19.6.1 Based on the data received from
the sampled units, the quarterly index with
the base year 2001-02 for the period April 2002
to March 2006 has been compiled. The growth
rates of SSI sector for the year 2002-03, 200304, 2004-05 and 2005-06 estimated on the
basis of the new series of IIP vis-à-vis old series
of IIP and with total manufacturing sector are
given below (Table 3.5)
It may be seen that the overall industrial
growth rate of the Small Scale Industries
sector in terms of Index of Industrial
Production (IIP) (Base: 2001-02=100) rose
to 12.32% during the
year 2005-06 as
compared to 10.88% during the year 200405. The SSI sector has also consistently
registered a higher growth rate as compared
to the overall manufacturing sector.
3.19.6.2
The Office of the DC (SSI)
of SSI Sector. The table showing the time
provides estimates in respect of various
series data on various economic parameters
performance parameters relating to the growth
is given below (Table 3.6).
Growth rates of SSI sector : Table 3.5
Year
Growth rates of
1970 base IIP
Growth rates of
2001-02 base IIP
Growth rates of
manufacturing sector
with base year 1993-94
2002-2003
7.68 %
8.68 %
6.0
2003-2004
8.59 %
9.64 %
7.4
2004-2005
9.96 %
10.88 %
9.2
2005-2006
10.40 %
12.32 %
9.1
49
Annual Report 2006-2007
Time series data : Table 3.6
Sl.
No.
50
Year
Total SSI Fixed
Production( Rs crore) Employment Exports
units (lakh Inves- . Current Constant (lakh
(Rs.
numbers) tment
Prices
Prices
persons)
crore)
(Rs crore) (1993-94)
1
1990-91
67.87
2
1991-92
3
1992-93
4
1993-94
5
1994-95
6
1995-96
7
1996-97
8
1997-98
9
1998-99
10
1999-00
11
2000-01
12
2001-02
70.63
(4.07)
73.51
(4.07)
76.49
(4.07)
79.60
(4.07)
82.84
(4.07)
86.21
(4.07)
89.71
(4.07)
93.36
(4.07)
97.15
(4.07)
101.1
(4.07)
105.21
(4.07)
13
2002-03
14
2003-04
15
2004-05
16
2005-06
109.49
(4.07)
113.95
(4.07)
118.59
(4.07)
123.42
(4.07)
93555
78802
84728
158.34
9664
100351
80615
87355
165.99
(7.26)
(2.30)
(3.1)
(4.83)
109623
84413
92246
174.84
(9.24)
(4.71)
(5.6)
(5.33)
115795
98796
98796
182.64
(5.63)
(17.04)
(7.1)
(4.46)
123790
122154of RTC’s
108774: Table
191.40
Performance
3.1
(6.9)
(23.64)
(10.1)
(4.79)
125750
147712
121175
197.93
(1.58)
(20.92)
(11.40)
(3.42)
130560
167805
134892
205.86
(3.82)
(13.60)
(11.32)
(4.00)
133242
187217 146262.9
213.16
(2.05)
(11.57)
(8.43)
(3.55)
135482
210454 157525.1
220.55
(1.68)
(12.41)
(7.7)
(3.46)
139982
233760 170379.2
229.10
(3.32)
(11.07)
(8.16)
(3.88)
146845
261297 184401.4
238.73
(4.90)
(11.78)
(8.23)
(4.21)
154349
282270
195613
249.33
(5.11)
(8.03)
(6.06)
(4.44)
At 2001
-02 prices
162317
314850
306771
260.21
(5.16)
(11.54)
(8.68)
(4.36)
170219
364547
336344
271.42
(4.87)
(15.78)
(9.64)
(4.31)
178699
429796
372938
282.57
(4.98)
(17.90)
(10.88)
(4.11)
188113
497842
418884
294.91
(5.27)
(15.83)
(12.32)
(4.37)
13883
(43.66)
17784
(28.10)
25307
(42.30)
29068
(14.86)
36470
(25.46)
39248
(7.62)
44442
(13.23)
48979
(10.21)
54200
(10.66)
69797
(28.78)
71244
(2.07)
86013
(20.73)
97644
(13.52)
124417
(27.42)
NA
Ministry of Small Scale Industries
3.19.7 COMPARISON OF THE SSI
SECTOR WITH THE OVERALL
INDUSTRIAL SECTOR
The small-scale sector has maintained a higher
rate of growth vis-à-vis the overall industrial
sector. The comparative growth rates of
production for both the sectors during last five
years are given below (Table 3.7)
conducted with the reference year of 200102 was 249.33 lakh numbers. Units
operated with fixed premises are treated as
SSIs. As per the estimates compiled for the
year 2005-06 the employment was 294.91
lakh persons in SSI sector. The share of
SSIs in the total employment among units
engaged in manufacturing and services is
around 34.93%.
Growth rates of production : Table 3.7
Year
Growth Rate
of SSI
sector (%)
Overall
industrial
sector (%)
2002-03
8.68
5.70
2003-04
9.64
6.90
2004-05
10.88
8.40
2005-06
12.32
8.10
3.19.8 CONTRIBUTION OF SSI IN THE
GROSS DOMESTIC PRODUCT (GDP)
(Table 3.8).
Contribution of SSI : Table 3.8
Year
1999-2000
Contribution of SSI (%) at 19992000 prices in
Total industrial
production
Gross
Domestic
Product (GDP)
39.74
5.86
3.19.10
THE DATABASE ON THE
MSME SECTOR
The MSMED Act came into effect on 2 nd
October 2006. Accordingly, the coverage
and the investment ceiling have been
widened and the sector is now called as
micro, small and medium enterprises sector.
There is an immediate requirement to
update the database accordingly. A fresh
census is going to be conducted during
2007-08 to serve the purpose.
3.20.0 CREDIT GUARANTEE FUND
SCHEME FOR SMALL
INDUSTRIES
3.20.1 Government introduced the Credit
2000-2001
39.71
6.04
Guarantee Fund Scheme for Small
2001-2002
39.12
5.77
Industries in May 2000, with the objective
2002-2003
38.89
5.91
of making available credit to SSI units,
2003-2004
38.80
5.82
particularly tiny units, for loans up to Rs.
10 lakh without collateral/ third party
3.19.9 EMPLOYMENT FROM SSI
guarantees. The scheme is being operated
SECTOR
by the Credit Guarantee Fund Trust for
The total employment from SSI sector Small Industries (CGTSI) set up jointly by
(including SSSBEs) in the country as per the Government of India and SIDBI. The
t h e T h i r d A l l I n d i a C e n s u s o f S S I s loan limit under the scheme has been
51
Annual Report 2006-2007
enhanced to Rs. 25 lakh per borrower in
terms of the Comprehensive Policy Package
on SSI announced by the Hon’ble Prime
Minister on 30 th August, 2000, when the
scheme was formally launched.
fund will be raised to Rs.2500 crore by
2010-11. The corpus of CGTSI has been
enhanced to Rs.1336.55 crore with the
contribution of Rs.1069.25 crore from the
GoI and Rs.267.30 crore from SIDBI.
3.20.2 The scheme covers collateral-free
credit facility (term loan and/ or working
capital including non fund based working
capital) extended by eligible lending
institutions to new and existing micro and
small enterprises up to Rs.25 lakh per
borrowing unit. The guarantee cover is up
to 75% of the credit sanctioned subject to
maximum guarantee limit of Rs. 18.75 lakh.
However, the Member Lending Institutions
(MLIs) are allowed to extend additional
credit facilities against collateral security
and/ or third party guarantee to the
borrowers already covered under the
scheme in those cases where the credit
facility already covered under the scheme
has reached the ceiling of Rs.25 lakh. The
MLIs availing guarantee from the Trust have
to pay one time Guarantee Fee of 1.5%
(reduced from 2.5% to 1.5% w.e.f. 1 April
2006) and Service Fee of 0.75% per annum
of the credit facility sanctioned by the
lending institution to the borrower.
3.20.4 A s o n 3 1 s t D e c e m b e r 2 0 0 6 , 5 9
eligible institutions comprising 28 Public
Sector Banks, 13 Private Sector Banks, 15
Regional Rural Banks (RRBs), National
Small Industries Corporation (NSIC), North
Eastern Development Finance Corporation
(NEDFi) and Small Industries Development
Bank of India (SIDBI) have become Member
Lending Institutions (MLIs) of CGTSI for
participating under the Credit Guarantee
Scheme. Under the scheme, 61,312
proposals amounting to Rs.1543.63 crore
have been approved for guarantee cover up
to 31 st December 2006.
3.20.3 The Credit Guarantee Scheme was
initially approved for one year with a corpus
of Rs.125 crore contributed by the
Government of India and SIDBI in the ratio
of 4:1. Subsequently, Government decided
to continue the scheme beyond one year
and the Finance Minister in the Budget
2006-07 has announced that the corpus
52
3.21.0 MICRO FINANCE
PROGRAMME
3.21.1 Government has launched a revised
Scheme under the Micro Finance
Programme of SIDBI in 2003-04.
Government of India provides funds for
Micro-Finance Programme to SIDBI under
a ‘Portfolio Risk Fund’ (PRF), which is used
for security deposit requirement of the loan
amount from the MFIs/NGOs. At present,
SIDBI takes fixed deposit equal to 10% of
the loan amount. Under the PRF, the share
of MFIs/NGOs is 2.5% of the loan amount
(i.e. 25% of security deposit) and balance
7.5% (i.e. 75% of security deposit) is
adjusted from the funds provided by the
Ministry of Small Scale Industries
Government under the scheme.
3.21.2 A s o n 3 1 s t D e c e m b e r 2 0 0 6 ,
Government has released an amount of
Rs.9 crore towards ‘Portfolio Risk Fund’
(PRF). Of this, Rs.7.64 has been utilized by
SIDBI upto December 2006. The funds
under PRF are utilized for extending loans
in the hitherto underserved States (viz.,
North Eastern States including Sikkim,
Bihar, Jharkhand, West Bengal, Orissa,
Madhya Pradesh, Chattisgarh, Uttar
Pradesh, Jammu & Kashmir, Rajasthan and
Uttaranchal) and less-served States. As on
31 s t D e c e m b e r 2 0 0 6 , c u m u l a t i v e l o a n
amount of Rs.101.87 crore has been
provided to MFIs/NGOs under the scheme,
thereby benefiting 3.21 lakh persons.
3.22.0 CREDIT LINKED CAPITAL
SUBSIDY SCHME (CLCSS)
3.22.1 T h e M i n i s t r y o f S m a l l S c a l e
Industries (SSI) is operating a scheme for
technology upgradation of Small Scale
Industries (SSI) called the Credit Linked
Capital Subsidy Scheme (CLCSS). The
Scheme aims at facilitating technology
upgradation by providing upfront capital
subsidy to SSI units, including tiny, khadi,
village and coir industrial units, on
institutional finance (credit) availed of by
them for modernisation of their production
equipment (plant and machinery) and
techniques. The Scheme (pre-revised)
provided for 12 per cent capital subsidy to
SSI units, including tiny units, on
institutional finance availed of by them for
induction of well established and improved
technology in selected sub-sectors/products
approved under the Scheme. The eligible
amount of subsidy calculated under the prerevised scheme was based on the actual
loan amount not exceeding Rs. 40 lakh.
3.22.2 T h e F i n a n c e M i n i s t e r m a d e a n
announcement in the Budget Speech of
2004-05 to raise the ceiling for loans under
the Scheme from Rs. 40 lakh to Rs. 1 crore
and rate of subsidy from 12 per cent to 15
per cent. Further, in the light of the
experience gathered in implementing the
Scheme, certain other modifications as
under were also made in it to make it more
useful to the SSI units, including tiny, khadi,
village and coir industrial units, in taking up
technology upgradation on a larger scale:
(a)
the ceiling on loans under the
Scheme was raised from Rs. 40
lakh to Rs. 1 crore;
(b)
the rate of subsidy was enhanced
from 12 per cent to 15 per cent;
(c)
the admissible capital subsidy is to
be calculated with reference to the
purchase price of plant and
machinery, instead of the term loan
disbursed to the beneficiary unit;
(d)
the practice of categorisation of SSI
units in different slabs on the basis
of their present investment for
determining the eligible subsidy has
been done away with ; and
(e)
the operation of the Scheme has
been extended upto 31 st March,
2007.
53
Annual Report 2006-2007
3.23.0 PROPOSED SCHEME TO BE
LAUNCHED FOR CAPACITY
BUILDING, STRENGTHENING
3.22.3 Year-wise details of approvals given
OF DATABASE AND
under the CLCSS are as under (Table 3.9)
ADVOCACY BY INDUSTRY/
ENTERPRISE ASSOCIATIONS,
CLCSS details of approvals : Table 3.9
IN CONSULTATION WITH AND
Year
No. of units
Amount of
WITH FINANCIAL
assisted
sanctioned
PARTICIPATION BY THE
(Rs. lakh)
LATTER.
The above amendments are effective from
September 29, 2005.
2001-02
9
21.36
2002-03
47
93.97
2003-04
150
368.79
2004-05
526
1351.89
2005-06
699
1801.17
2006-07 (upto
Nov.06)
1189
3795.47
Total
2620
7432.65
3.22.4 Consequent upon the increase of
ceiling of loan from Rs. 40 lakh to Rs. 1.0
crore and increase in rate of subsidy from
12 per cent to 15 per cent from September
29, 2005, the progress under the CLCSS
has been encouraging. While the
cumulative amount of subsidy disbursed
between 2001- 02 and 2006-07 (up to Nov.,
06) by the nodal agencies was Rs.74.33
crore (approx.), most of it has been
sanctioned during the period from October,
2005 to November, 2006. During 2006-07
up to November 2006, 1189 units availed
capital subsidy of Rs.37.95 crore. This
shows that the amendments made in the
then existing CLCSS guidelines have
increasingly encouraged tiny and small
scale industrial units to undertake
modernisation through availing of capital
subsidy under the CLCSS.
54
3.23.1 I t h a s b e e n f e l t t h a t t h e
Associations of Micro and Small
Enterprises do not have adequate capacity
to collect and interpret data relating to
changes in the market scenario, owing to
the limited availability of funds and the
absence of expertise in the matter. As a
result, their articulation of views on specific
issues concerning to their product groups
leaves much to be desired. In spite of the
fact that the Associations of the MSEs have
been made members of the SSI board and
the members of the steering Committees
of certain national programmes for
development of some products, their
existing weakness prevent them from
playing the expected role effectively. Even
in their role as facilitators for their members
in government assisted schemes like
setting up of sub contracting exchanges,
testing laboratories, etc., the capacity of
these Associations has been found to be
deficient.
3.23.2 T o s t r e n g t h e n t h e i r r o l e a n d
increase their efficiency, financial
assistance has been proposed for the
Ministry of Small Scale Industries
secretarial and advisory/extension
services of selected Associations
depending on the size and the reach of
the Associations.
The beneficiary
associations are to provide the regular
manpower at their own cost and office
space and also bear 50 per cent of the
cost of modernization of their facilities and
equipment and training of the their
personnel.
55
Page No.
56
NATIONAL SMALL
INDUSTRIES
CORPORATION LTD.
VD
Chapter 4
Ministry of Small Scale Industries
NATIONAL SMALL INDUSTRIES
CORPORATION LTD.
4.1.0 N a t i o n a l
Small
Industries
Corporation Ltd. (NSIC) has completed 51
years of service to the small enterprises.
During this period, the Corporation provided
a wide range of services to the SSI sector,
in the fields of marketing, equipment
financing, technology upgradation, exports,
training and common facilities. Over these
five decades of, growth, development and
transition, NSIC has proved its strength
within the country and abroad by promoting
modernisation, quality consciousness,
strengthening of linkages of the small with
large, medium enterprises and enhancing
exports of the SSI sector.
4.1.1 NSIC carries forward its mission to
assist small enterprises with a set of
schemes designed to put them in a
competitive and advantageous position. The
schemes now comprise facilitating
marketing support, credit support,
te ch nol ogy s up p o r t a n d o t h e r s u p port
services.
4.2.0 ORGANISATIONAL SET – UP
The Corporation is manned by a team of
professionals at different levels and delivers
its assistance through:
7 Zonal Offices located at Mumbai,
Chennai, Kolkata, Hyderabad,
Delhi, Noida and Central Zone
covering the States of Gujarat,
Madhya Pradesh & Chattisgarh.
26 Branch Offices and 15 Suboffices over states.
5 Technical Services Centres
located at Chennai, Howrah,
Hyderabad, Okhla and Rajkot.
3 Technical Services Extension
Centres located at Aligarh, Rajpura
and Guwahati.
2 Software Technology Parks – one
at Okhla, New Delhi and other at
Chennai.
2 Offices outside India – at Dubai
(UAE) and Johannesburg (South
Africa).
4.3.0 SCHEMES OF THE
CORPORATION
59
Annual Report 2006-2007
4.3.1
MARKETING ASSISTANCE
Marketing, a strategic tool for business
development is critical to the growth and
survival of small enterprises in today’s
intensely competitive market. NSIC acts as
a facilitator to promote the products of small
enterprises and has devised a number of
schemes to support small enterprises in
their marketing efforts, both in and outside
the country. These schemes are briefly
described as under:Raw Material Distribution: NSIC
has made arrangements with bulk
manufacturers like M/s. Steel
Authority of India Ltd. (SAIL), M/s.
Rashtriya Ispat Nigam Ltd. (RNIL), M/
s. National Aluminium Company Ltd.
(NALCO) and Sterlite group for
procuring raw materials like Steel,
Aluminium, Zinc and Copper etc. to
provide raw material alongwith
financial assistance as per the
requirements of small enterprises.
Through such arrangements benefit
of economies of scale are also availed
by the small enterprises. NSIC has
also opened godowns at Tarapur,
New Delhi, Faridabad and Silvassa
to facilitate the small enterprises to
make available the required material
at ease, to bring down their inventory
cost and also arranging to provide raw
material closer to their works.
Consortia
and
Tender
Marketing: Small Enterprises in
60
their individual capacity face
problems to procure & execute
large orders, which inhibit and
restrict their growth. NSIC
accordingly adopts Consortia
approach and forms consortia of
units manufacturing the same
products, thereby easing out
marketing problems of small
enterprises. The Corporation
explores the market and secures
orders for bulk quantities. These
orders are then distributed to small
enterprises in tune with their
production capacity. Testing
facilities are also provided to
enable small enterprises to
improve and maintain the quality
of their products conforming to the
standard specifications.
Single Point Registration for
Government Purchase: NSIC
operates a Single Point Registration
Scheme under the Government
Purchase Programme, wherein the
registered small enterprises get
purchase preference in Government
Purchase Programme, exemption
from payment of Earnest Money
Deposit etc. The small enterprises
registered under this scheme get
the following facilities :
Issue of tender sets free of
cost.
Advance intimation of tenders
issued by DGS&D.
Ministry of Small Scale Industries
Exemption from payment of
earnest money.
Waiver of security deposit up
to the monetary limit for which
the enterprise is registered.
Issue
of
competency
certificate in case the value of
an order exceeds the
monetary limit, after due
verification.
Exhibitions and Technology
Fairs:
To
showcase
the
competencies of Indian small
enterprises and to capture market
opportunities, NSIC participates in
select international and national
exhibitions and trade fairs every
year.
NSIC facilitates the
participation of the small enterprises
by providing concessions in rental
etc. Participation in these events
exposes small enterprises to
international
practices
and
enhances their business prowess.
Buyer - Seller Meets: Bulk and
departmental buyers such as
Railways, Defence, Communication
departments and large companies
are invited to participate in buyerseller meets to enrich small
enterprises knowledge regarding
Dr. Chandrapal, Union Secretary, Ministry of SSI & ARI being escorted by Shri Ravindra Nath, Chief
General Manager (Fin.) & Zonal General Manager, South-II, NSIC, on his visit to National Industrial
Exhibition-cum-Vendor Development Programme organised by NSIC at Hyderabad
61
Annual Report 2006-2007
terms and conditions, quality
standards, etc required by the
buyer. These programmes are
aimed at vendor development from
small enterprises for the bulk
manufacturers.
Export of Products and Projects:
NSIC is a recognized Export
House and exporting products
and projects of small
enterprises of India to other
countries. The major areas of
operation are:
Export of products such as
h a n d i c r a f t s , l e a t her items,
hand tools, pipes / fittings,
builders’ hardware etc.
Supply of Small Industry
projects on turnkey basis.
Export of IT solutions from
India.
Seminars & Intensive Campaigns
During the year 2006-07, upto 31 st
December, 2006, Corporation organized /
participated in 376 Seminars / Intensive
Campaigns
/
Entrepreneurship
Development Programmes.
4.3.2
TECHNOLOGY SUPPORT
NSIC offers small enterprises the
following technology support services
through its Technical Services Centres and
Extension Centres:
A d v i s i n g o n a p p l i c a t i on of new
62
techniques
Material testing facilities through
accredited laboratories
Product design including CAD
Common facility support
machining, EDM, CNC, etc.
in
Energy and environment services at
selected Centres
Practical
training
upgradation
for
skill
Focus areas of NSIC Technical
Services Centres are as under:
Name of the
Focus area
Centre
Chennai
Leather & Footwear
Howrah
General Engineering
Hyderabad
Electronics &
Computer Application
New Delhi
Machine Tools &
related activities
Rajkot
Energy Audit &
Energy Conservation
activities
Rajpura (Punjab)
Domestic Electrical
Appliances
Aligarh (UP)
Lock Cluster & Die
and Tool making
Technology Transfer Centre
NSIC, through its Technology
Transfer Centre, sources and disseminates
information on technology for small
Ministry of Small Scale Industries
enterprises at national and international
level. Main objective is to enhance
enterprise-to-enterprise cooperation among
the small enterprises of India and those of
targeted countries. This is achieved through
organizing business and technology
missions of small enterprises to various
countries, partner matching through one on
one-business meetings. The Centre has
established institutional linkages with
national and international R&D institutions,
Industry Associations of the country and
abroad for the purpose of technology
sourcing / dissemination to SMEs. The
organisation has signed Memorandum of
Understanding with partner institutions in
different countries for facilitating technology
partner matchmaking.
4.3.3 FINANCING SCHEMES
NSIC facilitates financing for small
enterprises in the following manner:
Meeting credit needs of Small
Enterprises through tie-up
arrangements with Banks
NSIC has entered into tie-up
arrangements with seven banks ( i.e.
United Bank of India, UCO Bank, Oriental
Bank of Commerce, Central Bank of India,
Bank of Maharashtra, YES Bank and UTI
Bank) for sanction of term loan and working
capital facilities to the small enterprise as
per their requirement. Such arrangements
facilitate smooth credit flow to small
enterprises.
Financing for procurement of
Raw Material (Short term)
This has already been explained
above under ‘Raw Material
Distribution’.
Financing
for
Marketing
Activities (Short term)
NSIC facilitates financing for
marketing actives such as Internal
Marketing, Exports and Bill
Discounting to small enterprises.
Performance & Credit Rating
Scheme for Small Enterprises
NSIC is the implementing agency and
operating this scheme through accredited
rating agencies i.e. CARE, CRISIL, D&B,
FITCH, ICRA, ONICRA and SMERA. The
fee to be paid by the small enterprises for
the rating, is subsidized by the Government
to the extent of 75% upto a maximum of Rs.
40,000/-. The scheme has become quite
popular now and getting good response
from the small enterprises. The rating
serves as a trusted third party opinion on
the unit’s capabilities and credit worthiness.
4.3.4 SUPPORT SERVICES
Infomediary Services
Recognizing the importance of information
and its relevance to small enterprises, NSIC
provides Infomediary Services to small
units. Under this scheme, small enterprises
can become members and avail a number
63
Annual Report 2006-2007
of value added services. Some important
services are:
Supplier database
Market intelligence
Technology providers
facility services; support and extension
services; supply of machinery, equipment
and transfer of technology; ancillary
development
and
subcontracting
relationships and technical & entrepreneurial
training. NSIC’s initiatives are:
Information providers
Linkages
institutions
with
relevant
E to E services
E to B services
Value additions like directories
on who makes machines, who
makes components, spare
capacity bulletin boards,
discussion forums, virtual
exhibitions, etc.
International Cooperation
Various
skill
sets
in
the
development process of small enterprises
acquired by NSIC over last 5 decades, are
being networked to offer consultancy
services for other developing countries. The
areas of consultancy are as listed below:
Capacity Building
Policy & Institutional Framework
Exchange of business/ technology
missions with various countries for
facilitating enterprise-to-enterprise
cooperagy transfers, and other
forms of sustainable collaboration.
Exploring new markets and areas of
cooperation through:
Identification of new export
markets by participating in
sector-specific exhibitions all
over the world.
Identification of countries in
which India has potential to
export its technology, products
and projects, such as the SubSaharan countries, Central
Asia the Indo-China region etc.
Assistance to these countries
in formulating their policy and
institutional framework.
Software Technology Parks
Business Development Services
Other important initiatives are through setting
up of institutional frameworks for promotion
of small enterprises; conducting technoeconomic assessment surveys; setting up
industrial estates, provision of common
64
NSIC-Software Technology Parks (STPs)
facilitate small enterprises in setting up
100% export-oriented units for software
exports. They also act as nodal point to
activate software exports directly through
NSIC. These STPs extend support in terms
Ministry of Small Scale Industries
of the requisite infrastructure to the small
enterprises to start business operations with
a minimum lead time. The scheme is
governed by STPI regulations of the Ministry
of Information Technology, Government of
India. NSIC established the first STP at
Okhla, New Delhi in 1995 and second in
Chennai in 2001. Several small enterprises
have taken advantage of these parks and
contributed export earnings to the
exchequer.
4.4.0 NEW INITIATIVES
4.4.1 Insurance of Export Credit for
small enterprises under strategic
alliance between NSIC and ECGC:
NSIC has entered, recently, into an
arrangement with Export Credit Guarantee
Corporation of India Ltd. (ECGC) for
facilitating small enterprises to insure their
export credits. Small enterprises would be
helped in insuring their export credits
through any office of the Corporation,
located all over the country. This
arrangement shall strengthen promotion of
exports from small enterprises.
4.4.2 R e a c h i n g
Enterprises
out
to
through the offices of the industry
associations. This arrangement with the
industry association / federation shall
facilitate small enterprises in getting the
services of the Corporation at their
doorstep.
4.4.3 E s t a b l i s h m e n t o f B u s i n e s s Incubator
NSIC has set up a Technology Business
Incubator for the IT sector in the premises
of NSIC-Technical Service Centre at Okhla,
New Delhi. Infrastructure facilities like ready
to move in space, hardware, software etc.
have been provided in the IT incubator.
These facilities are available to the IT
Incubator occupants, which include first
generation entrepreneurs, start-up
entrepreneurs having viable business
project, individuals aspiring to venture into
new projects. Once the IT incubates’
projects are ready for commercialization,
the marketing services, legal services,
advisory services are also provided to them.
4.4.4 New infrastructure projects to
facilitate SMEs in marketing their
products
Small
For the purpose of reaching out to the small
enterprises, NSIC, during the year 2006-07,
signed MoUs with various industry
associations located all over the country.
The details / information about the schemes
of the Corporation is being disseminated
NSIC is establishing a Marketing
Development-cum-Business Park at Okhla,
New Delhi, New Delhi and also developing
an Exhibition-cum-Marketing Development
Business Park at Hyderabad. A Laghu
Udyog Mart is also being set up at Okhla,
New Delhi by utilizing the available space
and erecting sufficient number of hangers
65
Annual Report 2006-2007
for exhibition purposes. After completion of
these projects, adequate infrastructure
facilities shall be provided to the micro,
small & medium enterprises at economical
rates. This will help them in enhancing their
marketing avenues by way of capturing new
markets and expanding existing market.
4.5.0
MAJOR EVENTS IN 2006-07
4.5.1
INTERNATIONAL EXHIBITIONS:
Techmart India’ 2006 (14-27
November, 2006)
NSIC organised the 14th series of Techmart India,
2006 coinciding with India International Trade Fair
at Pragati Maidan, New Delhi. The event was
sponsored by Ministry of SSI, Government of
India. Shri Mahabir Prasad, Hon’ble Union
Minister for Small Scale Industries and Agro &
Rural Industries, Govt. of India inaugurated
Techmart India’ 2006 on Nov. 15, 2006. 186 small
enterprises including 57 small enterprises from
North Eastern states of India and 27 units from
the state of Jammu & Kashmir & Hilly area
participated in Techmart India, 2006. This year,
as new initiate was taken by NSIC for providing
special enclosure of “Working Techmart” where
standalone Technologies for entrepreneurs were
on display besides live cluster demonstration of
units from North Eastern States. 29 foreign
Shri Mahabir Prasad, Hon’ble Union Minister of SSI & A&RI inaugurating the Techmart India’ 2006 at
Pragati Maidan, New Delhi. Shri Anupam Dasgupta, the then Secretary (SSI & A&RI) and Shri H.P.
Kumar, Chairman-cum-Managing Director, NSIC were also present on the occasion
66
Ministry of Small Scale Industries
machines such as Jewellery making
machine / plastic extruder machine /
silver extraction machine etc.
SME & Technology Fair 2006,
Port Louis
A Panoramic view of Techmart India’ 2006 held
at Pragati Maidan, New Delhi
delegations from Mauritius, Belarus,
Mozambique, Tanzania, Peru, Iraq, Yemen,
Botswana, Japan, South Africa besides 45
delegates from Common Wealth countries also
visited Techmart. NSIC was awarded Gold Medal
for Special Display in the theme category in
Techmart India, 2006 by India Trade Promotion
Organisation, the organiser of IITF-2006.
Rwanda International
Fair,2006, Kigali
The exhibition was organized by Small
Enterprises
and
Handicrafts
Development Authority, Govt. of
Mauritius. NSIC displayed products and
catalogues of small enterprises i.e.
agriculture
implements
and
machineries, material handling
equipments, fruits & bakery, crate
washers, milk dairy products and Agro
& Industrial Chemicals and other
appropriate technologies were
displayed through flow charts.
SAITEX 2006, Johannesburg,
South Africa
Trade
NSIC participated for the first time
in this exhibition from 25th August,
2006 to 4th Sept., 2006. Twelve
machines were on display in this
exhibition.
International
Machinery
Exhibition and Trade Fair,
Colombo
NSIC participated in International
Machinery Exhibition & Trade Fair at
Colombo from 8th – 10th Sept.,2006
for displaying SSI products /
NSIC participated in SAITEX 2006 (10th 13th
Oct.,2006) at Johannesburg (South Africa)
displaying small scale technologies from India
through flow charts like harvester combines
engineering goods, Home furnishings and
herbal products, confectionary machinery and
SSI projects.
Expovall, Michoachan, Mexico
NSIC participated in Expovall, Michoachan
(14th – 19th Nov., 2006) at Mexico. The
participants displayed ladies readymade
garments, home textile, high fashion
garments.
67
Annual Report 2006-2007
The National Small Industries Corporation : Table 4.1
Performance at a Glance
I. MOU TARGETS
S. Parameters
No.
Targets for Targets
2006-07
upto Dec’06
(70% of the
annual target)
Achievements Remarks
upto Dec’06
1
Gross Income
(Rs. lakh)
31000
21700
26785.37
2
Gross Margin
(Rs. lakh)
1410
987
681.47
3
Technology Support – 1.50
Revenue Generated
through Common
Facilities(Rs. Crore)
1.05
1.06
4
Recovery of:
i) Current Dues (%)
ii) Overdue
Amount (%)
85
85
62.68
10
7.00
2.58
5
Internal Marketing
Activity
(Rs. Crore)
50
35.00
Tender
Submitted:
79.18
Orders
Executed:
11.79
6
Revenue from
Infrastructure
(Rs. Crore)
5
3.50
4.46
7
Technology Support
– Services rendered
to units (nos.)
2700
1890
3313
8
Assistance Provided
to Women
Entrepreneurs
(nos.)
100
70
172
9
Performance and
Credit Rating –
Units Accredited
(nos.)
10 Net addition under
Informediary
Support (Nos.)
68
1800
1260
2104
1500
1050
1456
The gross margin for the
corresponding period of
the last year was Rs.
231.53 lakh that has been
improved to Rs. 681.47
lakh as on 31.12.2006.
Efforts are being made
for recovery of dues by
launching a new One
Time Settlement Scheme.
Internal Marketing
activity is likely
to pick up in
subsequent months.
applications have been
received for rating under
the scheme. As of
2104 Dec.’06 rating has
been assigned to 1231
units.
TRAINING AND
ENTREPRENEURSHIP
DEVELOPMENT
Chapter 5
Ministry of Small Scale Industries
TRAINING AND ENTREPRENEURSHIP
DEVELOPMENT
5.0
Entrepreneurship development and
training is one of the key elements for
development of micro, small and medium
enterprises (MSMEs), particularly, the first
generation entrepreneurs. The National
Institute of Small Industry Extension Training
(NISIET), Hyderabad The Indian Institute of
Entrepreneurship (IIE), Guwahati, and the
National Institute of Entrepreneurship and
Small Business Development (NIESBUD),
NOIDA have been set up as national – level
institutions for promotion of MSMEs through
training and entrepreneurship development.
To promote and assist entrepreneurship
development in the country, the Ministry has
also been implementing (in addition to the
schemes of SIDO) two important schemes,
namely, promotion of entrepreneurship
development institutions (EDI) and scheme
of National Entrepreneurship Development
Board (NEDB).The main objectives of these
programmes
are
(i)
promoting
entrepreneurship for creating elf-employment
through enterprise creation; (ii) facilitating
creation of training infrastructure; and (iii)
supporting research of entrepreneurship
related issues.
5.1
ENTREPRENEURSHIP
DEVELOPMENT
INSTITUTIONS (EDI) SCHEME
5.1.1
Under the EDI scheme, grant is
given for setting up of new entrepreneurship
development institutions (EDIs) and also for
up-gradation and modernisation of existing
EDIs in the country. Under the scheme, a
matching grant of 50 per cent, subject to a
ceiling of Rs.100 lakh is provided for
building, equipment, training aids etc. the
balance is contributed by the State/Union
Territory Governments and other agencies.
Financial assistance provided under this
scheme is only catalytic and supportive to
the contribution and efforts of State/Union
Territory Governments and other agencies.
Against budgetary allocation of Rs.250 lakh
for 2006-07, Rs.85 lakh have been released
up to 31.12.2006 under this scheme.
5.2
NATIONAL
ENTREPRENEURSHIP
DEVELOPMENT BOARD
(NEDB) SCHEME
5.2.1 This is an ongoing scheme from the
Ninth Plan, which was continued in the 10th
Plan. The main objective of the scheme is to
promote entrepreneurial climate and inculcate
entrepreneurship as a career. During 200607, a budget provision of Rs.200.00 lakh has
been made against which Rs.26.03 lakh has
already been released up-to 31.12.2006. A
recent review of the scheme has revealed that
continuation of the NEDB had become
unnecessary and that the efficacy of the
71
Annual Report 2006-2007
individual scheme components has not been
optimal. Government has, therefore, decided
to abolish the NEDB and recast the scheme
contents/components, with a view to
sharpening their focus and improving their
impact. Therefore, for the Eleventh Plan no
allocation has been proposed for this scheme,
rather it is being replaced by a new scheme
to be now known as the Scheme of “Micro
and Small Enterprises – Initiation, Support,
Promotion, Integration, Revitalization and
Empowerment (MSE - INSPIRE)”.
5.3
NATIONAL INSTITUTE OF
SMALL INDUSTRY
EXTENSION TRAINING
(NISIET), HEYDERABAD.
5.3.1 NISIET, formerly known as Central
Industrial Extension Training Institute
(CIETI), was set up in 1960 at New Delhi
as a Department of Central Government
under the Ministry of Commerce and
Industry. Its main objective was to provide
training to the personnel of the Central
Small Industries Organisation as well as the
Departments of Industries of the State
Governments. Subsequently, in 1962, it
was shifted to Hyderabad and converted
into an autonomous society. In 1984, the
Institute was renamed as National Institute
of Small Industry Extension Training
(NISIET). NISIET’s role has benefited not
only the Indian micro, small and medium
enterprises (MSMEs) but also those in other
Shri Mahabir Prasad, Hon’ble Union Minister of SSI & ARI during his visit to NISIET
72
Ministry of Small Scale Industries
developing countries and helped in
promoting self-employment and enterprise
development. The Institute is constantly
evolving with time, modifying its focus with
the emerging needs of MSMEs and
providing them solutions in the form of
consultancy, training, research, and
education. NISIET’s programmes are
designed to have universal relevance for
successfully training the entrepreneurs to
face challenges and competition in the era
of globalisation.
5.3.2
The academic activities of the Institute
are organized through centres of excellence
focusing on specific needs of the MSMEs. The
Academic Council of the institute is the nucleus
coordinating body for benchmarking, formulation
and evaluation of academic activities and
programmes.
5.3.3
Performance of the Institute for 2005-06
(actual) and for the period April – December 2006
(actual) and the projection for the remaining three
months of 2006-07 is presented below (Table 5.1).
Performance of NISIET at a glance : Table 5.1
73
Annual Report 2006-2007
5.3.4 The new training building of the
Institute has put to use during the year
under report, which is having 14 lecture
halls, one conference hall, and one
multipurpose hall besides accommodation
for the faculty and other support service.
During the year, the following three
important publications have been brought
out by the Institute:
(i)
Handbook on Cluster Development.
(ii)
Counselling, Re-training and Redeployment – a collection of
seminar papers.
(iii)
Cluster Development Manual.
5.3.5 Highlights of the main activities of
the institute are as under:
A new centre, ‘National Resource
Centre for Cluster Development’
has been functioning in the Institute
since January 2004 as a nodal
agency for cluster development in
the country. Besides conducting
orientation programmes and
experience sharing workshops for
the benefit of cluster development
executives (CDEs), the Institute has
been providing mentoring services
for 20 clusters under the scheme of
Small
Industries
Cluster
Inauguration of New Training Building of NISIET by Shri Mahabir Prasad, Hon’ble Union Minister of SSI & ARI
74
Ministry of Small Scale Industries
Development Programme of SIDO.
Furthermore, the Institute has
conducted diagnostic studies and
prepared business plans for 10
clusters sponsored by the
Development
Commissioner
(Handicrafts), Ministry of Textiles.
Out of these 10 clusters, the
Institute has been engaged as
implementing agency for three
clusters and as a technical agency
for the remaining clusters. In
addition, the Institute is also
functioning as an implementing
agency for two more clusters
sponsored by the Development
Commissioner (Handlooms) for
implementation of Integrated
Handloom Cluster Development
Scheme to promote socio-economic
conditions of weavers and
handloom sector as a whole.
The Institute has entered into a
Memorandum of understanding with
Khadi
Village
Industries
Inauguration of International Training Programme
Commission (KVIC) for successful
implementation of the Scheme of
Fund for Regeneration of Traditional
Industries (SFURTI) for the
development of khadi, village and
coir industries clusters development
in the country.
The Institute entered into an
agreement with the Development
Commissioner
(Handlooms),
Ministry of textiles, for evaluation of
two projects. The first project
consists of five schemes viz., (i)
Deen Dayal Hathkargha Protsahan
Yojana (DDHPY), (ii) Handloom
Export Scheme (HES), (iii) Work
shed-cum-Housing
Scheme
(WCHS), (iv) Weavers Welfare
Schemes, and (v) Marketing
Promotion Programme (MPP); while
the second project consists of two
schemes viz., (i) Health Insurance
Scheme (HIS) and (ii) Integrated
Handloom Training Project (IHTP).
The Institute has been recognised
as a nodal agency of the Ministry of
Heavy Industries and Public
Enterprises, for the implementation
of Counselling, Retraining and
Redeployment (CRR) Scheme of
rationalised employees of Central
Public Sector Undertakings. The
Institute was allocated a target of
retraining of 3500 rationalised
employees under this Scheme
during 2006-07. As against this
75
Annual Report 2006-2007
target, 2502 employees were
already retrained by end of
December 2006 and expected to
fulfil the target for the year.
5.4.1 The
Indian
Institute
of
Entrepreneurship (IIE) was set up at Guwahati
in 1993. It took over NISIET’s NER Centre from
1st April 1994. The Institute is completing 13th
year of its operation on 31st March 2007. During
The Institute has been implementing this period the Institute has expanded its
p r o g r a m m e s s p o n s o r e d b y t h e activities to a great extent covering all facets
Ministry of Development of North- of MSME activities. IIE’s Regional Office at
Eastern Region for training the Uttaranchal has become fully operational. Since
officials of North-Eastern States in its establishment and up to December 2006,
v a r i o u s a r e a s o f e n t e r p r i s e the Institute has organized 1090 training
development.
programmes/workshops/seminars/meets
where 35342 participants participated. The
As an effort towards restructuring its Institute has obtained ISO-9001-2000
manpower, the Institute has been certification from the Bureau of Indian
a p p r o v e d a s p e c i a l v o l u n t a r y Standards. The Institute has expanded its
retirement scheme (VRS). Under canvas not only in terms of geographical
the scheme, it was envisaged to coverage but also diversifying into various
r e t i r e 4 3 g r o u p ‘ C ’ a n d ‘ D ’ areas of the activities related to socio-economic
employees of the Institute. 18 development. The Institute organises training
employees of the Institute have programmes and undertakes research and
a l r e a d y a v a i l e d V R S under the consultancy services in the field of promotion
s c h e m e a n d s o m e m o r e a r e of MSMEs and entrepreneurship.
expected to opt for the scheme.
The Institute has accepted income
generation target of Rs. 650.87 lakh
during 2006-07 as against which the
actual income realised as on 31 st
December 2006 was Rs.707.27
lakh. During the current financial
year, the Institute is expected to
generate net surplus of Rs.
Rs.20.30 lakh.
5.4
76
INDIAN INSTITUTE OF
ENTERPRENEURSHIP (IIE)
GUWAHATI.
Shri P.R. Kyndiah, Hon’ble Union Minister of Tribal
Affairs and Development of North Eastern Region,
Chairman, NEC, Presiding the Annual General
Body Meeting of IIE
Ministry of Small Scale Industries
5.4.3 Highlights of the main achievements
of the Institute are as under:-
His Excellency, Lt. General (Retd.) Shri Ajai
Singh, Hon’ble Governor of Assam, inaugurating
the first PGDME Course of the Institute. Sitting
on the dais (R) is Shri Ripon Borah, Hon’ble
Minister of Education, Assam
5.4.2 The types and number of training
programmes organized and number of
participants trained during 2005-06 and
2006-07 (up to December 2006) and
expected achievement for the year are as
under (Table 5.2)
Promotion of new entrepreneurs has
been the major focus of training
organised by the Institute. In order
to promote new entrepreneurs, the
Institute organises rural, general
and women EDPs, sector specific
EDPs, etc. details of which are
given below (Table 5.3)
Details of EDP by IIE : Table 5.3
Sl.
Type of
Programmes
No. of
Programmes
No. of
Partici
pants
1
General EDP
10
300
2
Women EDP
03
71
3
Sector Specific
EDPs
21
1328
4
EDP for PMRY
Beneficiaries
2
215
Total
36
1914
Types of Programme and Number of Participants (IIE) : Table 5.2
77
Annual Report 2006-2007
Besides continuing its Rural
Industries Programme (RIP) in
Meghalaya, Manipur and Barpeta in
Assam, the Institute started its RIP
at Nongpoh in Meghalaya with the
help of SIDBI. Another area
approach that the Institute has
undertaken is the STED Project in
Bongaigaon
to
promote
entrepreneurship with technological
intervention sponsored by the
Department of Science and
Technology.
Industry where a total of 66
participants participated.
At the instance of Coir Board,
Ministry of Agro and Rural
Industries, the Institute organised
16 sector-specific programmes in
Coir based industries, covering
1217 participants from North
Eastern Region.
For creation of environment for
entrepreneurship development,
during April-December 2006, the
Institute has organised 13
programmes for orientation of
officials from sport agencies
covering 328 participants. The
details of these programmes are as
under (Table 5.5).
At the instance of the Ministry of
Science & Technology, Government
of India, the Institute also organized
three programmes, one on Herbal
Medicine, one on Areca nut leaf
plates and one Rubber Plantation
The Institute also organized two
programmes, one each on Finishing
and Dying Techniques covering 45
participants.
The Institute organised a series of
Programmes for growth and
development
of
existing
entrepreneurs
during
AprilDecember 2006 as per details given
below (Tabel 5.4).
For creation of awareness and
orientation for college and university
students
regarding
entrepreneurship, during April-
IIE Programmes for existing entrepreneurs : Table 5.4
78
Ministry of Small Scale Industries
IIE Programmes of orientation : Table 5.5
organized one AIRTSC sponsored
programme for youths of schedule
caste community where 25
participants participated. The
Institute also started its six months
Teachers’ Training Programme on
Computer Applications where 20
teachers are participating.
Shri Anupam Dasgupta, then Union Secretary (SSI &
ARI) going round the Gems Cutting and Polishing
Centre of the Institute alongwith (on is left ) Shri Pravir
Kumar, Joint Secretary, Ministry of SSI
December 2006, the Institute has
organised 15 programmes covering
884 students from various colleges,
universities and polytechnic
institutes.
In the area of information
technology, the Institute has
organized 3 Training Programmes.
The Institute has also organised 1
Programme on Basic Computer
Application Skills where 21
participants attended. It also
During April-December 2006, the
Institute has organised three
workshops on trade related
entrepreneurship assistance and
development scheme and one each
on handloom Cluster Scheme and
SFURTI.
Altogether
218
participants attended these
Workshops/Seminars.
The
Institute
has
been
implementing a comprehensive
entrepreneurship development
programme (CEDP) on gem stone
processing hosiery and woollen
garment manufacturing. The
Institute has set up two training
centres, one at its campus and
one at Aizwal, for gem stone
79
Annual Report 2006-2007
processing; and two centres for
hosiery and woollen garment
manufacturing, one in Sikkim and
another in Arunachal Pradesh.
This initiative is the first of its kind
in the North-East for imparting skill
development
training
to
prospective entrepreneurs and
artisans by offering six-month and
three-month certificate courses, in
gemstone processing and hosiery
processing, respectively. Besides,
incubation facilities, technical
support, market linkages, etc. are
also provided to prospective
entrepreneurs. Till December
2006, 30 entrepreneurs in
Gemstone and 56 in Hosiery were
trained.
The Institute has been appointed as
a Technical Agency by the Ministry
of Agro and Rural Industries for
overlooking several khadi, village
industries and coir clusters in
Eastern and North-Eastern Regions
under Scheme for Fund for
Regeneration
of
Traditional
Industries (SFURTI). The Institute
has started a series of sensitization
programmes and pre-diagnostic
studies for the prospective clusters
in the region.
The Cane & Bamboo Cluster at
Dimapur in Nagaland and Handloom
Cluster in Manipur, are the Institute’s
maiden ventures into the cluster
initiative in North East. Considering A view of Zonal Level Workshop on SFURTI at the
the availability of local resources and Institute premises
local craftsmanship, the Institute has
Business
Facilitation
&
initiated the process of development
Development Centre (BFDC) is a
of cluster of traditional and rural
wing of IIE to provide support
artisans in these sectors. The
services to small enterprises in
Institute organized a five-day
North-East Region including
Exhibition-cum-Sale Campaign of
Sikkim. The BFDC has been
Handloom & Handicraft products of
positioned to help the first
cluster actors as part of its Cluster
generation entrepreneurs. During
Initiative at Guwahati from 23 to 27
the year, 347 entrepreneurs
October 2006.
utilized the services of BFDC. 80
80
Ministry of Small Scale Industries
(PGDME). The first batch of the
course started in July 2006. This
course
aims
at
providing
comprehensive
inputs
on
entrepreneurial as well as
managerial aspects of running a
business.
Project Reports have been
prepared and submitted to
commercial Banks and NEDFI for
finance, out of which financial
assistance for 27 projects have
already been sanctioned. A total of
35 new business units made
operational during the year.
The Institute had organised
delegation of entrepreneurs from
North East to visit China and Hong
Kong
in
association
with
Federation of Industries and
Commerce of North East Region
(FINER).
The
delegation
comprised of 10 entrepreneurs
from Assam, Nagaland, Mizorm,
Sikkim and Meghalaya and
representatives of IIE and FINER.
The objective of the delegation
was to explore the possibilities of
business tie-ups, collaborations,
bilateral
trade,
economic
cooperation, technology transfer,
joint
ventures,
investment
proposals and marketability of
indigenous products of North East
to these countries.
During the year the Institute has
completed the following Research
and Consultancy studies:
(i)
Pro poor Dairy Development in
Assam : Improving Traditional
Dairy
Marketing
and
Processing - sponsored by
International
Livestock
Research Institute.
(ii)
Women Entrepreneurs and
Institutional
Finance
sponsored by Office of
Development Commissioner of
Small Scale Industries.
(iii) A S t u d y o n C o i r r e l a t e d
activities in North East vis-àvis Potentials- sponsored by
Coir Board.
In addition, a study on Industries based on
ancillary and support services of large and
medium industries of North East India is in
progress.
The Institute has launched a Post
Graduate Diploma Course in
Management and Entrepreneurship
5.5
NATIONAL INSTITUTE FOR
ENTREPRENEURSHIP AND
SMALL BUSINESS
DEVELOPMENT (NIESBUD),
NOIDA
5.5.1 T h e
National
Institute
for
Entrepreneurship & Small Business
81
Annual Report 2006-2007
Development (NIESBUD), Noida was set up
in 1983 as an apex institution in the field of
entrepreneurship development to promote,
support and sustain entrepreneurship and
small business through training, education,
research and consultancy services.
5.5.2 The major activities of the Institute
include, evolving model syllabi for training
various target groups, providing effective
training strategies, methodology, manuals and
tools, facilitating and supporting Central/State
Governments and other agencies in executing
programmes of entrepreneurship and small
business development; maximizing benefits
and accelerating the process of
entrepreneurship development; conducting
programmes for motivators, trainers and
entrepreneurs.
5.5.3 T h e
Institute
helps
other
Entrepreneurship Development Institutions
in various ways, such as developing syllabi
in entrepreneurship for different target
groups, training of faculty and developing
training aids.
5.5.4 During April-December, 2006, the
Institute has organised 62 training activities
with 1510 participants. The category-wise
details of the training programmes thus
organized are given below (Table 5.6).
The participants of one of the International Training Programmes during Field Visits
82
Ministry of Small Scale Industries
NIESBUD - Details of the training programmes : Table 5.6
5.5.5 One of the focus target areas of the
training activities of the Institute during the
period was organizing of Small Business
Opportunities & Development Programmes
for Women and Weaker Sections of the
society. A total of 11 activities with 348
persons were organized towards this end.
5.5.6 The Institute has reached an
understanding with the NSIC Ltd., for
undertaking training activities under Small
Enterprise Establishment Programme (SEEP)
aimed at providing handholding facilities to
existing/potential entrepreneurs. The initial two
activities under the Programme have been
initiated at Dehradun and Haldwani (Uttranchal).
5.5.7 The Institute has been awarded the
work of conducting of EDPs in the States of
Delhi, U.P. and Haryana by the Ministry of Food
Processing Industries.
5.5.8 The Institute organized a series of
training activities (11) under Swarna Jayanti
Shahri Rojgar Yojana of the Ministry of Urban
Employment & Poverty alleviation, Government
of India, during the period.
5.5.9 The Institute has been performing
the functions of a Technical Agency under
the SFURTI – Scheme of Fund for Regeneration of Traditional Industries –
Ministry of Agro & Rural Industries,
Government of India.
5.5.10 T h e I n s t i t u t e o r g a n i s e d t h e 5 t h
Commonwealth – India Small Business
Competitiveness Development Programme
at its Campus from November 19 – 24,
2006, which was attended by 50 delegates
from 32 countries.
5.5.11 Further, the Institute conducted four
international training programmes with 61
participants from different Afro-Asian
countries.
The themes of these
programmes were - Human Resource
Development Through Entrepreneurship
Education; Small Business Planning &
Promotion; Women and Enterprise
Development – A Trainers / Promoters
Programme; and Trainer’s Training on
Entrepreneurship & Promotion of Income
Generation Activities.
83
Annual Report 2006-2007
5.5.12 During April-December 2006, the
Institute organised 5 Seminars, Workshops
& Conferences consisting of 155 delegates.
These events also included a two-day
National Meet of Trainers in Enterprise
Development, which was attended by 45
delegates and 20 special invitees.
5.5.13 During the year, the Institute has
carried out / working on the following
research / evaluation studies:(i)
(ii)
84
Evaluation Study of Mahila Dairy
Vikas, Almora, Uttranchal (STEP
Projects) under sponsorship of
Department of Women & Child
Development, Ministry of Human
Resource
Development,
Government of India.
Evaluation Study of Aromatic &
Herbal Farming – Ex-service
League
(STEP
Projects)
Department of Women and Child
Development, Ministry of Human
Resource Development being
implemented in the State of Jammu
& Kashmir.
(iii)
Evaluation Study of the schemes of
National Backward Classes Finance
& Development Corporation
(NBCFDC) in U.P. and Uttranchal.
(iv) “Impact Study of ISO – 9000
System Application in SSI Sector in
the NCR” awarded by the Office of
the DC(SSI).
(iv)
Evaluation Study of Schemes of
National Safai Karamcharis Finance
Development Corporation in the
state of Andhra Pradesh.
NATIONAL
COMMISSION FOR
ENTERPRISES IN THE
UNORGANISED SECTOR
Chapter 6
Ministry of Small Scale Industries
NATIONAL COMMISSION FOR ENTERPRISES
IN THE UNORGANISED SECTOR
6.1
NCEUS
The National Commission for Enterprises
in the Unorganised Sector (NCEUS) was
constituted on 20 th September 2004 and
consists of a Chairman, two full time
Members, one Member Secretary and two
part time Members. An Advisory Board
consisting of 10 eminent experts and
activists concerned with the unorganised
sector was also constituted to advise the
Commission. The Commission has been
given the mandate to examine the problems
of the Unorganised Sector (also referred to
as Informal Sector) and suggest measures
to overcome them. The term of the
Commission, which was initially fixed at one
year, has been extended to three years.
6.2
access to raw materials, finance,
skills,
entrepreneurship
development,
infrastructure,
technology and markets and suggest
measures to provide institutional
support and linkages to facilitate
easy access to them.
(3)
Suggest the legal and policy
environment that should govern the
informal/unorganised sector for
growth, employment exports and
promotion.
(4)
Examine the range of existing
programmes
that
relate
to
employment generation in informal/
unorganised sector and suggest
improvement for their redesign.
(5)
Identify innovative legal and
financial instruments to promote the
growth of the informal sector.
(6)
Review
of
the
existing
arrangements
for estimating
employment and unemployment in
the informal sector and examine why
the rate of growth in employment
has stagnated in the 1990.
(7)
Suggest
elements
of
an
employment strategy focusing on
TERMS OF REFERNCE
The following are the Terms of Reference
assigned to the Commission:
(1)
Review
of
the
status
of
unorganised/informal sector in India
including the nature of enterprises,
their size, spread and scope and
magnitude of employment.
(2)
Identity constraints faced by small
enterprises with regard to freedom
of carrying out the enterprise,
87
Annual Report 2006-2007
the informal sector.
(8)
Review Indian labour laws,
consistent with labour rights and
with the requirements of expanding
growth of industry and services
particularly in the informal sector
and improving productivity and
competitiveness.
(9)
Review the social security system
available for labour in the informal
sector and make recommendations
for expanding their coverage.
6.3
TASK FORCES CONSTITUTED
BY NCEUS
The National Commission has
constituted Task Forces to deliberate on the
following issues identified for immediate
intervention and make appropriate
recommendations:
Social Security for Unorganised
Sector Workers;
Statistical
issues
in
the
Unorganised/Informal Sector; and
Skill formation in the Unorganised
Sector.
Task Forces on Access to
Technology and Infrastructure, Access to
Markets, Raw Materials and Finance and
Legal and Policy issues concerning
enterprises in the Unorganised Sector are
being constituted.
88
6.4
CONCEPT OF GROWTH
POLES
6.4.1 The NCEUS proposed the formation
of Growth Poles in different parts of the
country with a view to (i) integrating within
a geographical location a number of clusters
of unorganised production units engaged in
manufacturing, services and non-farm
activities and (ii) facilitating the expansion
of production of and employment in these
micro and small enterprises. The Growth
Poles would incorporate the concept of
Provision of Urban Amenities in Rural Areas
(PURA) that has been advocated by the
President of India. This proposal also found
mention in the Finance Minister’s Budget
Speech, 2005-06.
6.4.2 In this context, the Commission had
taken-up the matter with the State
Governments / UTs for identification and
selection of pilot projects of Growth poles
in the states. In response the State
Governments of Chhattisgarh, Kerala,
Rajasthan, Uttaranchal and West Bengal
submitted their preliminary proposals
identifying the location for the Growth Poles
in the States for which Detailed Project
Reports (DPRs) are being prepared.
6.5
UNORGANISED SECTOR
WORKERS BILL
The Commission submitted Report on
Social Security for Unorganised Workers to
the Hon’ble Prime Minister on 16.5.2006. A
Ministry of Small Scale Industries
copy of the Report was also given to Hon’ble
Labour and Employment Minister and
Hon’ble Minister of Small Scale Industry and
Agro and Rural Industry. The report was
also presented to the Planning Commission.
A Press conference was organised to give
wide publicity to the Report. Chairman and
officials of the NCEUS while visiting the
Kolkata discussed the Report and also met
Trade Union Leaders and organisations
working in the Unorganised Sector.
6.6
NATIONAL POLICY ON
URBAN STREET VENDORS
The Commission submitted a
Report and Recommendations on National
Policy on Urban Street Vendors to the
Hon’ble Minister for Urban and Poverty
Alleviation on 5.5.2006.
Kumari Selja, Hon’ble Union Minister of State (i/c), Ministry of Housing and Urban Poverty Alleviation,
is being presented the Report and Recommendations on National Policy on Urban Street Vendors by
Dr. Arjun K. Sengupta, Chairman, NCEUS
89
Page No.
90
INTERNATIONAL
COOPERATION
Chapter 7
Ministry of Small Scale Industries
INTERNATIONAL COOPERATION
7.1
INTERNATIONAL
COOPERATION SCHEME
7.1.1 International Cooperation Scheme
for modernisation and technology upgradation
and
competitiveness
enhancement of small enterprises has been
under implementation since 1996. Under
this Scheme, small entrepreneurs are taken
to potential foreign markets, for firm/
association level interactions on, inter alia,
sourcing technology, exploring export
markets of their products and learning best
practices.
7.1.2
The
Scheme
now
encompasses the following activities:
Participation in exhibitions, fairs and
buyer-seller meets (with an
international component).
Exchange of business delegations, to
explore new areas of technology
upgradation, facilitating joint ventures,
improving marketability of SSI
products, foreign collaborations, etc.
Holding of seminars/buyer-seller
meets, to promote enterprise-toenterprise interactions through
selected agencies, both in India &
abroad.
7.1.3 During 2006-07, participation of
SSIs in international exhibitions and
deputation of business delegations has
been sponsored under the Scheme.
7.2
INDIA GLOBAL SUMMIT ON
SME
The Ministry and Confederation of India
Industry (CII) jointly with
NSIC & SIDBI
organised “India Global Summit on SMEs –
Emerging Challenges & Opportunities”, on
22 and 23 November, 2006 at New Delhi.
Hon’ble Minister (HI & PE) inaugurated the
Summit. Hon’ble Minister of State for
Industry inaugurated the Summit. The Global
Summit, facilitated networking and sharing
of best international practices in the SME
Sector, to provide a sustainable focus on the
future global development and growth of
SMEs. Enabling policies, role of finance/
innovative finance & measure for risk
sharing, value addition through Information
and Communication Technology; Global
Outsourcing Opportunities and Global Small
Enterprise are some of the topics that were
deliberated upon during the Summit. 400
foreign delegates from 30 countries from
across the globe attended the Summit.
7.3
Commonwealth-India
Small
Business Competitive Development
Programme
93
Annual Report 2006-2007
During the year two programmes were held.
7.3.1 The fourth and final programme in
the fi r s t s e r i e s o f p a n - C o m monwealth
Institution-Building Programmes on Small
Business Competitiveness Development
was held at Chennai during 23-28 April
2006. The programme was organised by
the Ministries of SSI&ARI, Commonwealth
Secretariat, London, NSIC, EXIM Bank and
M S Swaminathan Research Foundation
(MSSRF), Chennai. The theme of the
programme was ‘Poverty Alleviation
through Sustainable SME Development’, in
which
53
delegates
from
44
Commonwealth countries participated.
Besides, presentations and discussion on
the theme of the programme, related field
visits were also organised.
7.3.2 The first Commonwealth – India
Small
Business
Competitiveness
Development Programme in the next series
of Commonwealth India Small Business
Competitiveness Development Programmes
in India was held at NEISBUD campus,
Noida from November 19 to November 24,
2006. Ministry of SSI, Commonwealth
Secretariat, NSIC and Exim Bank were the
partner institutions for organizing this event.
The theme of the programme was “SME
Development, Growth and Poverty
Alleviation”. Forty-eight senior policy
makers and practitioners representing 26
The dignitaries in the course of one of the Technical Sessions during 5th Commonweath-India Small
Business Competitiveness Development Programme
94
Ministry of Small Scale Industries
member States from the Commonwealth
attended this five day programme. The
participants were exposed to a combination
of best practices and case studies. Field
visits to various industries and institutions
were also organized. Key resource persons
from different Commonwealth member
States deliberated upon various significant
issues related to enhancement of
competitiveness of SMEs. Visit of the
participating delegates to Techmart-India
2006 was also organized, where they were
exposed to more than 200 technologies
appropriate for small enterprises.
7.4
Other
significant
events
including signing of Memorandum of
Understandings and Joint Committee
Meetings:
(i).
A delegation led by Shri Mahabir
Prasad, Minister of Small Scale
Industries & Agro and Rural
Industries visited Rwanda and
Uganda during 29 August 2006 to 2
September, 2006 to discuss
cooperation
between
these
countries and India in the small
scale sector. During the visit to
Rwanda, a Memorandum of
Understanding
(MoU)
on
cooperation in the field of micro,
small and medium enterprises
(MSMEs) was signed between the
Ministry of Small Scale Industries,
Government of India and Ministry of
Commerce, Industry, Investment
Promotion,
Tourism
and
Cooperatives
(MINICOM),
Government of Republic of Rwanda.
The Minister and the accompanying
delegation also attended the 9 th
Rwanda International Trade Fair
2006 at Kigali, Rwanda.
(ii).
For promoting and developing small
and medium sized enterprises, a
Memorandum of Understanding
(MOU) was signed between the
Ministry of Small Scale Industries of
India and the National Agency for
Small
and
Medium-Sized
Enterprises and Co-operatives of
Romania on 23.10.2006 at New
Delhi.
(iii).
The first Joint Committee Meeting
(JCM), under the MOU on
Cooperation in the field of Micro,
Small and Medium enterprises
between the Secretariat of Economy
of the United Mexican States and
the Ministry of Small Scale
Industries and the Ministry of Agro
and Rural Industries of the Republic
of India signed on 27.3.2006, was
held on 25.9.2006 at New Delhi.
During the meeting, the Annual
Action Plan for 2006-2007 under
Article 2.2(a) of the MoU was
finalised.
(iv).
During the Joint Commission
meeting between India and Tunisia
at Tunis during 5 th – 8 th February,
2007, Cooperation Agreement in the
95
Annual Report 2006-2007
field of Small and Medium Sized
Enterprises between Governments
of India and Tunisia was signed. In
the agreed Minutes of Joint
Commission, areas where India &
Tunisia would cooperate in the small
scale sector have been listed.
(v).
(vi).
H.E. Mr. Sam Kutesa, Minister of
Foreign Affairs, Republic of Uganda
called on Hon’ble Minister of
SSI&ARI) on 1.11.2006 as a follow
up on the recent visit of Minister
(SSI&ARI) to Uganda and requested
for assistance from India on
providing training.
(vii).
Mr. Carlos Agostino Do Rasario, High
Commissioner of Mozambique called
on Joint Secretary(SSI) to discuss
areas of cooperation between the two
countries in the small scale and agro
rural industrial sector.
(viii).
96
A delegation led by H.E., Amah
Marie Tehoua, Minister of Industry
and Promotion of Private Sector,
Republic of Cote D’Ivoire met
Minister (SSI&ARI) and officers of
Ministries of SSI&ARI on 14.2.2007
at New Delhi. During this meeting,
MoU between Ministry of Industry
and Promotion of Private Sector,
Republic of Cote D’Ivoire and
Ministries of Small Scale Industry
and Agro Rural Industries was also
signed.
To understand and discuss
development of small and agro rural
industries in India, an Ethiopian
delegation led by Mr. Mekuria Haile,
Head, Trade, Industry and Urban
Development Bureau had a meeting
with officers of Ministries of SSI &
ARI on 22-05-2006.
(ix).
Mr. Inderjit Coomaraswamy,
Director, Economic Affairs Division,
Commonwealth Secretariat, Mr. Sev
Vettivetpillai, Chief Executive
Officer, Aureos Capital and
Professor Rao, Administrative Staff
College of India (ASCI), Hyderabad
met with officers in Ministry of SSI
on 6.7.2006, to discuss a ‘Proposal
for Capacity Building in SMEs in
Africa and South Asia’, prepared by
ASCI under Commonwealth’s
Private Investment Initiative (CPII).
(x).
Ministry of External Affairs (MEA)
arranged a meeting between Mr.
Ahmad Ben Said Jaffar, Minister of
External Affairs and Cooperation of
Comoros and Ministry of SSI on
26.7.2006 to discuss assistance by
the Ministry of SSI in setting up of a
Vocational and Entrepreneurship
Training Institute (VETI) and also
small scale industries in Comoros.
(xi).
A meeting was held between
officers of Ministry of SSI with H.E.
Gabriel Fassil, Ambassador of
Eritrea on 19.9.2006 in New Delhi
to discuss the possibility of transfer
of appropriate technology for small
projects in Eritrea.
Ministry of Small Scale Industries
(xii).
High Commissioner of the Kingdom
of Lesotho, H.E. Shabbir H. Peerbhai
called on Joint Secretary (SSI) on
7.9.2006 to discuss further areas of
cooperation under the existing MoU
between the Governments of India &
Lesotho
for
promotion
and
development of small enterprises.
(xiii).
H.E. Protais Mittali, Minister of
Commerce, Industry, Investment
Promotion, Tourism & Cooperatives
(MINICOM) called on the Minister of
SSI&ARI on 6.10.2006 to discuss
further cooperation between India &
Rwanda in the small scale, agro and
rural industrial sectors. An MOU had
been signed between Ministry of SSI
and MINICOM in August, 2006 during
Minister (SSI&ARI)’s visit to Rwanda.
(xiv).
A meeting was held between
officers of Ministry of SSI&ARI with
a study team from the Development
Research Centre (DRC) from the
State Council of Peoples Republic
of China (PRC) on 15.12.2006 in
Udyog Bhavan, New Delhi.
(xv).
Officers from the Ministry of SSI had
a meeting with the Egyptian
delegation comprising Mr. Moustafa,
M/o International Cooperation and
Mr. Abdel Rahman A. Raouf,
Commercial Counsellor, M/o Trade
and Industry, Govt. of Egypt on
15.12.2006 in Udyog Bhavan, New
Delhi to discuss the possibilities of
cooperation in the field of
development of SMEs, under the
provisions of Joint Action Plan
signed with Egypt.
(xvi).
Secretary (SSI&ARI) visited the
Commonwealth Secretariat, London
and Warwick Manufacturing Group
(WMG) in the UK during 7-12
September, 2006 to participate in the
Overall
Evaluation
of
the
Commonwealth - India Small
Business
Competitiveness
Development Programme and
discuss future of the Programme with
the Director & representatives of the
Special Advisory Services Division
(SASD), Commonwealth Secretariat
and
also
the
collaborative
opportunities between WMG and the
Ministries of SSI & ARI.
(xvii).
Joint Secretary, Ministry of Small
Scale Industries and CMD, NSIC
visited Commonwealth Secretariat,
London (UK) during 27-30 October,
2006 to participate in a Review
Workshop
organised
by
Commonwealth Secretariat in
connection with Commonwealth –
India
Small
Business
Competitiveness Development
Programme.
(xviii). Joint Secretary (ARI) visited Athens
(Greece) during 6-8 November,
2006 to participate in OECD – APEC
Global Conference “Removing
barriers to SME access to
International Markets”.
97
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98
ACTIVITIES IN THE
NORTH EASTERN REGION
Chapter 8
Ministry of Small Scale Industries
ACTIVITIES IN THE NORTH EASTERN
REGION
8.1
NE REGION
The North-Eastern Region, consisting of
Assam, Arunachal Pradesh, Manipur,
Mizoram, Meghalaya, Nagaland, Tripura
and Sikkim has abundant natural resources.
These resources can be utilized for all
round economic development and
employment generation in the region.
8.2
ROLE OF MINISTRY
The Ministry of SSI is actively promoting the
development of Small Scale industries in
the North Eastern region through the
programmes and schemes implemented by
its organisation. SIDO has SISIs at
Gangtok, Guwahati, Imphal, Agartala and
also branch SISIs at Aizwal, Dimapur,
Itanagar, Diphu, Silchar, Tezpur, Shillong
and Tura. There is a Tool Room and
Training Centre at Guwahati.
8.3
PROFILE OF THE SSI
SECTOR IN NORTH EASTERN
REGION
A statement showing estimated number of
SSI units, fixed investment, production and
employment in Northeast region of the
country for the year 2005-06 is given below
(Table 8.1).
8.4
SIGNIFICANT ACTIVITIES
8.4.1 As per the instructions of Govt. of
India, 10% of the total budget is to be
earmarked for development of North
Estimated number of SSI units, fixed investment, production and
employment in NE region : Table 8.1
101
Annual Report 2006-2007
Eastern Region. Rs.38.62 crore has been
earmarked exclusively for North Eastern
Region and Rs. 25.31 crore has already
been incurred on various developmental
activities in North Eastern Region.
8.4.2 A proposal received from Govt. of
Nagaland for setting up a Mini Tool Room
has been approved and procurement of
machinery & equipment is in progress.
8.4.3 U n d e r I I D s c h e m e , a s p e c i a l
incentive is envisaged for the North Eastern
Region (including Sikkim) with a provision
of central grant up to 80% of the project cost
(subject to a maximum of Rs. 4 crore ) to
provide a fillip to the growth of Small Scale
Industries.
8.4.4 Up to December, 2006, 13 Centres
in various states i.e. Assam, Mizoram,
Tripura and Nagaland, have been approved.
Out of the 13 centres, 2 centres have been
completed and remaining others are at
various stages of implementation. Rs. 30.36
crore has been released (in full or in part)
to IID centres located in North East Region
up to 31.12.2006.
8.4.5 R e s i d e n t i a l a c c o m m o d a t i o n a t
Guwahati, Aizawl, Tura & Tezpur have
been constructed and construction for
more quarters is under progress at
Guwahati with the objective to provide
residential accommodation to the Officers
& Staff of SIDO posted in North-Eastern
Areas.
Shri Mani Shankar Aiyar, Hon’ble Union Ministry of North East Region inaugurating the 4th North East Expo’2007
at NSIC Exhibition Centre, New Delhi. Shri H.P. Kumar, Chairman-cum-Managing Director, NSIC and Ms.
Sushma Singh, Union Secretary, Department of North East Region also graced the occasion
102
Ministry of Small Scale Industries
Dimapur; Nagaland & North East Small
Scale Industries Association (NESSIA) at
8.5.1 NSIC has a network of offices Jorhat, (Assam).
in North Eastern Region. This includes
Five Small Enterprise Establishment
branch office at Guwahati (Assam) and sub- 8.5.3
o f f i c e s a t I m p h a l ( M a n i p u r ) , D i m a p u r Programmes (SEEP) have been conducted in
(Nagaland), Itanagar (Arunachal Pradesh), North Eastern Region with 25 candidates in each
Shillong (Meghalaya) and Agartala (Tripura). programme. The programmes have been
NSIC has a Demonstration-cum-Training conducted in Gangtok, Meghalaya, Byrnihut,
C e n t r e a t G u w a h a t i , w h i c h p r o v i d e s Kokrajaar (Assam) Tinsukhia. NSIC Guwahati
t e c h n i c a l t r a i n i n g , s k i l l u p g r a d a t i o n arranged imparting training and skill upgradation
programmes
and
e n t r e p r e n e u r s h i p in the field of leather footwear and minor articles,
hospitality and tourism management, catering and
development programmes.
baking technology, TV and mobile phone repair,
8.5.2 NSIC, Guwahati conducted various machinist, computer hardware and networking
I n t e n s i v e M o t i v a t i o n a l - c u m - A w a r e n e s s etc.
Programme in all the States of North East
The activities of IIE, Guwahati in the
in association with regional bodies /
i n s t i t u t i o n s e n g a g e d i n s e r v i n g s m a l l NER are detailed in the Chapter V on ‘Training
e n t e r p r i s e s i . e . S I S I , G a n g t o k ; D I C , and Entrepreneurship Development’.
8.5
NSIC’S ACTIVITIES IN NER
Shri Mahabir Prasad, Hon’ble Union Ministry of SSI & ARI, visiting the Cluster Actors from Dimapur, Nagaland
participating in the IITF, New Delhi
103
Page No.
104
DEVELOPMENT
ACTIVITIES FOR WOMEN
Chapter 9
Ministry of Small Scale Industries
DEVELOPMENT ACTIVITIES FOR
WOMEN
9.1
In the policy measure for promoting
and strengthening small, tiny and village
enterprises announced in Parliament on
06.08.1991, it was stated that the definition
of women enterprises would be simplified.
Accordingly, the definition of ‘Women
Enterprises’ has been revised as under:
“A small scale industrial unit/industry related service or business enterprise,
managed by one or more women
entrepreneurs in proprietary concerns, or in
which she/they individually or jointly have
a share capital of not less then 51 per cent
as partners/shareholders/directors of
private limited company/members of cooperative society.”
9.2
PARTICIPATION OF WOMEN
IN SSI SECTOR
9.2.1 In the Third All India Census of
SSIs, the participation of women in the SSI
sector has been categorised in three roles:
some women are owners of enterprises,
some managers of enterprises and some
employees. With regard to ownership, the
definition mentioned above has been
adopted.
9.2.2 T h e t o t a l n u m b e r o f w o m e n
enterprises in the SSI Sector was estimated
at 10, 63, 721 (10.11 %). The estimated
number of enterprises actually managed by
women was 9, 95, 141 (9.46 %).
9.2.3 A b o u t 1 3 % o f t h e w o m e n
enterprises were in the registered SSI
category, the rest being unregistered. Of the
enterprises managed by women, 11.5%
were in the registered SSI category.
9.2.4 The share of the units managed by
women in terms of employment was 7.14%.
The employment generated per Rs. 1 lakh
investment in the units managed by women
was 2.49.
9.2.5 T h e t o t a l n u m b e r o f f e m a l e
employees in the SSI sector is estimated
at 33, 17, 496. About 57.62% of the women
were employed in SSI units located in the
States of Tamil Nadu, Kerala, Karnataka,
West Bengal and Andhra Pradesh.
9.2.6 The proportion of female employees
in the total employment in the SSI sector
was 13.315%. In the States/Union
Territories of Mizoram, Orissa, Karnataka,
Goa, Lakshadweep, Kerala, Tamil Nadu and
Pondicherry, the share of women
employment was significantly higher (more
than 20%), compared with the total
employment in the respective States.
9.3
In India, Women entrepreneurs
107
Annual Report 2006-2007
have been in business for quite some time
and achieved remarkable success.
However, their number is still small. One of
the reasons for this is the initial hesitation
and inhibition, which emanates from the
traditional and societal perception of the role
of women. Like any other entrepreneurs, a
new women entrepreneur has to compete
with those who are already well established.
Therefore, women entrepreneurs have to
not only face the gender insensitivity and
bias prevalent in the society but also
compete against established competition. In
its industrial policy, the Government of India
has laid considerable emphasis on the
promotion of women entrepreneurship,
particularly first generation women
entrepreneurs, through various training and
support services. Special attention is given
by organising exclusive entrepreneurship
development programmes for women. In
these programmes, the trainees/
entrepreneurs are exposed, through
demonstration and training, to the
manufacture of a variety of products. Thus,
many women are trained every year by the
Institutes of the Ministry. The available
feedback shows that these women have not
limited themselves to the conventional
ventures but also set up hi-tech industries
in the fields of information technology,
engineering, graded grey iron, non-ferrous
casting and sophisticated electronic
equipment, etc. Tool Rooms have started
designing special courses for women in the
field of tool engineering. Voluntary
organisations in the country are also doing
commendable work in the field of women
108
entrepreneurship
development.
Associations of women entrepreneurs have
also come up and are doing remarkably well
in some States.
9.4
The Plan Schemes of Ministry of
Small Scale Industries are for the
development of SSI Sector in the country and
the main focus is to provide a wide range of
services and facilities required for
accelerating the growth of SSI. The Plan
Schemes operated by the Ministry benefit
States/regions and individuals. In case of
programmes like entrepreneurial development
programme, Management Development
Programme,
National
Award
for
Entrepreneurial Development (Quality
Products)
and
Trade
Related
Entrepreneurship
Assistance
and
Development (TREAD) Programme for
Women, etc., the necessary guidelines have
been issued and specific reservations
provided for women.
9.5
TRAINING OF WOMEN
ENTREPRENEURS
Field Institutes of SIDO conduct
need based programmes for existing and
prospective entrepreneurs. During 2006-07
(up to December, 2006), 10050 women
participated in various training programmes
like Entrepreneurship Development
Programme
(EDP),
Management
Development Programme (MDP), Skill
Development Programme (SDP) and
Industrial Motivational Campaign (IMC).
Autonomous Bodies under this Ministry also
Ministry of Small Scale Industries
conduct various short-term/long-term training
programmes in footwear technology, tool and
dye making and other allied industries. These
institutes provided training to 20280 women.
9.6
WOMEN EMPOWERED
UNDER INTEGRATED
INFRASTRUCTURAL
DEVELOPMENT SCHEME
Association of Lady Entrepreneurs of Andhra
Pradesh (ALEAP), an NGO comprising
women members only, has successfully
completed the implementation of an IID
project at village Gajularamaram, Distt.
Rangareddy, A.P. In this, 75 units have been
established and employment generated by
these units is 1500 women. Out of the total
project cost of Rs. 347 lakh, Govt. of India
provided grant to the tune of Rs.139 lakh.
society with regard to access to and control
over resources. Problems faced by them
continue to be grave particularly for illiterate
and semi-literate women of rural and urban
areas. Apart from counseling and training,
availability of credit poses the most serious
problem for the poor women. In order to
alleviate their problems, the Ministry of
Small Scale Industries (SSI) in the
Government of India has launched a
scheme
titled
“Trade
Related
Entrepreneurship
Assistance
and
Development” (TREAD) for economic
empowerment of women through the
development of their entrepreneurial skills
in non-farm activities.
2. The three main components of this
scheme are as under:
(i)
Assistance in the form of the
Government of India (GoI) grant of
up to 30 per cent of the total project
cost, as appraised by the lending
agency, is provided to the Non
Governmental
Organisations
(NGOs)
for
promoting
entrepreneurship among target
groups of women. The remaining 70
per cent of the project cost is
financed by the lending agency as
loan for undertaking activities as
envisaged in the project.
(ii)
Selected training institutions and
NGOs
conducting
training
programmes for empowerment of
women beneficiaries identified under
this scheme can also avail of GoI grant
Another IID project at Vijyawada,
Distt. Krishna, A.P. is being implemented
by ALEAP. The total project cost is Rs.370
lakh and Government of India grant of
Rs.91.38 lakh has been released for this
project. 10 units have been established in
this Centre so far and 100 women have
been benefited from this project upto the
end of December, 2006.
9.7
TRADE RELATED
ENTREPRENEURSHIP
ASSISTANCE AND
DEVELOPMENT (TREAD) FOR
WOMEN
Traditionally, women have been amongst
the most disadvantaged sections of our
109
Annual Report 2006-2007
of up to Rs.1.00 lakh per programme,
for imparting training to the women
entrepreneurs, provided such
institutions also bring their share of at
least 25 per cent of the grant. However,
NGOs except from the North Eastern
Region (NER), would be allowed to
conduct training programmes only after
they take up some lending proposals
under this scheme.
(iii)
9.7.1
Need-based Government of India grant
up to Rs.5 lakh per project is provided
to
National
Entrepreneurship
Development Institutions (EDIs) viz.
National Institute of Small Industry
Extension Training (NISIET), National
Institute of Entrepreneurship and Small
Business Development (NIESBUD),
Indian Institute of Entrepreneurship
(IIE), EDIs sponsored by the State
Government, Small Industries Service
Institutes (SISIs), and any other
institution of repute primarily for
undertaking field surveys, research
studies, evaluation studies, designing
of training modules, etc.
PERFORMANCE DURING 200607
9.7.1.1 During the year 2006-07, Rs 41.45
lakh has been sanctioned as GOI grant to the
5 NGOs for their capacity building, whose
projects have been appraised by Canara Bank
and Canara Bank. Canara Bank has
sanctioned loan of Rs 102 lakh to these NGOs.
About 534 women are likely to be benefited
110
through the projects approved by Bank under
the TREAD Scheme so far. It is expected that
7 more projects may be appraised during the
year and another 1000 women entrepreneurs
are likely to get benefits during the remaining
period of the current financial year
9.7.1.2 Centre For Entrepreneurship
Development Madhaya Pradesh (CEDMP)
has conducted 5 EDPs and provided the
training to 138 women for their Skill
Development so that they may set up income
generating activities.
9.7.1.3 The autonomous bodies under SIDO
i.e. PPDC, Meerut, CFTI, Agra and IIE,
Dehradun have been given the sanction for
GoI grant of Rs. 3 lakh each for conducting 3
EDPs by each under the scheme. It is
expected that about 300 women are likely to
be trained by these institutions/bodies during
the remaining period of the current financial
year for economic empowerment of women
through their Skill Development so that they
may set up income generating activities.
9.7.1.4 An NGO, based in NER has been
given the financial sanction of Rs 2.00 lakh
for conducting 2 EDPs for providing training
on collection of Rubber Wood to about 50
women for their economic empowerment.
9.7.1.5 All the SISIs have been given the
financial sanction of Rs. 15000/- each for
organizing workshop to create awareness and
motivate the women, NGOs, Banks and other
Stakeholders so that more and more women
may avail of the benefits of the scheme.
USE OF OFFICIAL
LANGUAGE
Chapter 10
Ministry of Small Scale Industries
USE OF OFFICIAL LANGUAGE
10.1
Hindi is the Official Language of the
Union of India and the Government policy
is aimed at progressively increasing the use
of Hindi in official work. Effective steps were
taken during the year in the Ministry of
Small Scale Industries to ensure
compliance of Official Language policy of
the Government, implementation of the
annual programme and compliance with the
orders of the President on the
recommendations of the Committee of
Parliament on Official Language.
Consequently, there has been a constant
progress in the use of Official Language in
official work in all these offices.
10.4
10.2
10.5
COMPLIANCE OF THE
PROVISIONS OF THE
OFFICIAL LANGUAGE ACT,
1963
All documents such as resolutions, general
orders, rules, licences, etc., under section
3(3) of the Official Language Act and all
papers laid on the Tables of the Houses of
Parliament were issued bilingually i.e. in
Hindi and English. Some papers like general
orders meant for Departmental use were
issued in Hindi only.
10.3
REPLIES TO LETTERS IN
HINDI
All letters received in Hindi were replied to
in Hindi.
CORRESPONDENCE IN HINDI
Letters to State Governments, Union Territory
Administrations and Central Government
offices located in regions ‘A’ and ‘B’ were
issued in Hindi, to the maximum extent
possible. Similarly, efforts were made to send
letters in Hindi to Central Government offices
located in region ‘C’, as per the targets laid
down in the annual programme. About 89 per
cent correspondence were made in Hindi in
region ‘A’, 86 per cent in region ‘B’ and 81
per cent in region ‘C’ upto the quarter ending
December 2006.
SECTIONS SPECIFIED FOR
WORKING IN HINDI
The sections of the Ministry, notified for
doing all work in Hindi, are working
satisfactorily.
10.6
MONITORING AND
INSPECTIONS
In order to ensure compliance of the Official
Language policy, monitoring is done through
quarterly progress reports in the meetings
of the Official Language Implementation
Committee etc. During the year, eight
Sections of the Ministry were inspected, to
ensure use of Hindi and compliance of the
Official Language policy.
113
Annual Report 2006-2007
10.7
TRAINING OF OFFICIALS
All officials of the Ministry have already
been trained in Hindi typing and
stenography.
10.8
USE OF MECHANICAL AIDS
As required under the Official Language Act,
bilingual facilities have been provided on
office equipment in the Ministry. Computers
and terminals have also been installed with
facility to work in Hindi.
10.9
COMMITTEES
10.9.1 To review the use of Hindi in the
Ministry and to give advice to accelerate the
use of Hindi, a Hindi Advisory Committee
exists in the Ministry. The meeting of
Committee was held on 15.09.2006. Further
action on the decisions of the Committee
has been taken.
114
10.9.2 Departmental Official Language
Implementation Committee under the
chairmanship of Joint Secretary in the
Ministry of Small Scale Industries has
already been constituted. Quarterly
meetings of these committees were held
and decisions were taken regarding use of
Hindi in official work to ensure compliance
of these decisions and follow up action.
10.10 HINDI MONTH
Hindi month was celebrated during 14
September, 2006 to 13 October, 2006 in the
Ministry. Competitions were organised
during this period in Hindi typing, Hindi
stenography, debate in Hindi, General
Hindi, Hindi dictation. A large number of
officers and employees participated with
enthusiasm. The messages of the Home
Minister and Cabinet Secretary were
circulated for information and compliance on
this occasion.
VIGILANCE MATTERS
Chapter 11
Ministry of Small Scale Industries
VIGILANCE MATTERS
11.1
The vigilance unit of the Ministry is
headed by a Chief Vigilance Officer (CVO)
of the rank of Joint Secretary to the
Government of India appointed on the
advice of the Central Vigilance Commission
(CVC). The CVO functions as the nodal
point in the vigilance set-up of the Ministry.
The secretariat assistance to the CVO in
the Ministry of SSI is, however, provided
by the Vigilance Desk of the Department of
Industrial Policy & Promotion (DIPP),
Ministry of Commerce and Industry as the
Ministry of SSI does not have its
independent vigilance unit. The vigilance
unit is, inter alia, responsible for the
following:
identification of sensitive areas
prone to malpractices/temptations
and taking preventive measures to
ensure integrity/efficiency in
Government functioning;
taking suitable action to achieve the
targets fixed by the Department of
Personnel & Training (DoPT)on
anti-corruption measures;
scrutiny of complaints and initiation
of appropriate investigation
measures;
inspections and follow-up action on
the foregoing;
furnishing comments to the CVC on
the investigation reports of the
Central
Bureau
of
Investigation(CBI);
taking appropriate action in respect
of departmental proceedings on the
advice of the DoPT & CVC;
obtaining second stage advice of
the CVC, wherever necessary; and
obtaining advice of the Union Public
Service Commission (UPSC) in
regard to the nature and quantum
of penalty to be imposed, wherever
necessary.
11.1.1 Preventive vigilance continues to
receive attention with emphasis on
identification of areas sensitive/prone to
malpractices and temptations. The
guidelines/instructions issued by the DoPT
and the CVC from time to time in this regard
are followed. Action taken includes the
following:
(i)
Regular and surprise inspections
are carried out by the Departmental
Security Officer of the DIPP. In the
attached and subordinate offices,
respective Departmental Security
Officers
carry
out
these
inspections.
117
Annual Report 2006-2007
(ii)
Strengthening
of
vigilance
machinery by way of appointing
CVO in the offices and organisations
under the Ministry, who looks after
the vigilance activities in the office/
organization concerned.
(iii)
A strict watch is kept on liaison men
and on other persons. The
Departmental security instructions
are re-iterated from time to time for
streamlining entry of outsiders in the
building. To end the practice of
professional liaison men operating in
the Ministry, a fresh list of such
unwanted liaison men has been
prepared.
(iv)
Cases of the officers, who have
attained the age of 50 years or have
put in 30 years of service, are
reviewed under FR 56 (j) in order to
judge their suitability to continue in
service thereafter. The exercise is
currently being done by the
Establishment Division of the DIPP.
(v)
In order to make officers conscious
of the provisions of Conduct Rules
applicable to them as also to
acquaint them with the importance
of departmental security, Rules/
Instructions are reiterated in this
respect from time to time.
11.2
SMALL INDUSTRIES
DEVELOPMENT
ORGANISATION
The Vigilance Unit in the office of the
Development Commissioner (Small Scale
Industries), New Delhi, is headed by a CVO
118
of the rank of Director to the Government
of India appointed on the advice of the
Central Vigilance Commission (CVC), with
full complement of staff under him. The CVO
is also responsible for all the field offices of
the SIDO. The Vigilance Section deals with
vigilance matters like complaints and
vigilance cases coming within the purview
of CCS (CCA) Rules, 1965 concerning
Small Industries Development Organization.
11.2.1 Apart from dealing with complaints
and vigilance cases against officers and
staff relating to corruption and improper
motives, a number of anonymous/
pseudonymous complaints as also
complaints and vigilance cases other than
those of corruption or improper motives
pertaining to the officers of Small Industries
Development Organisation were also
handled. All complaints relating to
corruption/improper motives and/or delays
were investigated and suitable action taken
against officers found guilty of misconduct/
misbehaviour.
11.2.2 The vigilance cases in respect of
Group ‘C’ & ‘D’ staff of field offices are
attended to by the Director of the institute/
centre who is assisted by AD (Admn).The
services of senior officers both at the
Headquarters office and in the field offices
are utilized for investigating the complaints.
11.3
NATIONAL SMALL
INDUSTRIES CORPORATION
(NSIC)
NSIC has appointed its own part
time CVO on the advice of the CVC.
CITIZENS’ CHARTER / RTI ACT
Chapter 12
Ministry of Small Scale Industries
CITIZENS’ CHARTER / RTI ACT
productive employment opportunities in the
country. The Ministry seeks to fulfil its
mission by formulating appropriate policies
and designing/implementing support
measures in the fields of credit,
technological upgradation, marketing,
entrepreneurship development, etc., and
12.2 MINISTRY OF SSI
undertaking effective advocacy for these
The Ministry of Small Scale Industries is purposes.
responsible for formulation of policies and
COMMITMENT
d e s i g n i n g p r o g r a m m e s , p r o j e c t s a n d 12.4
schemes for promoting the growth of micro
The Ministry and its organisations
and small enterprises in the country. The
policies and programmes/projects/schemes are committed to providing efficient and
are implemented by the organisations like prompt service with transparency and
the
Small
Industry
D e v e l o p m e n t courtesy to the citizens and as well as micro
O r g a n i s a t i o n ( S I D O ) , N a t i o n a l S m a l l and small enterprises.
12.1
This Charter is a declaration of the
Ministry, incorporating its mission and
commitment
to
the
small
scale
entrepreneurs and for the people of India in
general.
Industries Corporation Ltd. (NSIC), national
Towards this, the Ministry will, in the
level Entrepreneurship Development
Institutes, etc. The Organisations of the spirit of dutiful discipline, respect the rights
Ministry have their own Citizen’s Charters. of individuals, entrepreneurs and their
associations. The Ministry will maintain and
uphold the confidentiality of personal and
12.3 MISSION
business information disclosed to it by the
The mission of the Ministry is to promote, citizens. The Ministry and its organisations
in cooperation with other Ministries and w i l l c o n t i n u o u s l y r e v i e w t h e p o l i c i e s ,
Departments of the Central Government, programmes and enforcement of related
S t a t e G o v e r n m e n t s , U n i o n T e r r i t o r y laws and regulations, in consultation with
Administrations and all other stakeholders, the stakeholders concerned, with the aim
the growth and development of the micro of fulfilling its mission.
and small enterprises and to enhance their
competitiveness so that these enterprises 12.5
contribute to accelerating the expansion of
STANDARD FOR GENERAL
PROCEDURE
121
Annual Report 2006-2007
The letters received by the Ministry are
generally acknowledged within 15 days and
replied to as soon as possible.
12.6
RESPONSIBILITIES OF OUR
CITIZENS
The Ministry expects continuous feed back
from the citizens on the quality of the
services provided to them and on areas in
which improvements are expected.
12.7
ASSESSING PERFORMANCE
The Ministry, from time to time, shares its
performance with the citizens and
stakeholders through the media and its
website. The Ministry also undertakes
independent surveys on perceptions of the
citizens and assessment of its
performance.
IMPORTANT ADDRESSES
(1)
(2)
122
12.8
GUIDANCE AND HELP
The Information and Facilitation Counter of
the Ministry, located on the ground floor,
Gate No.4, Nirman Bhavan, New Delhi,
provides information on the services and
activities of the Ministry and its
organisations.
12.9
COMPLAINTS
In case of any complaint, one may telephone
or send a letter or fax or visit the Ministry at
Udyog Bhavan, New Delhi. However, before
lodging of a complaint, one may, first of all,
use the Information and Facilitation Counter
of the Ministry. In case one is not satisfied,
the matter may be taken up with the
Grievance Officer in this Ministry. The
address, phone and fax numbers of the
Information and Facilitation Counter and the
Grievance Cell are as follows:
WEBSITES ADDRESS
Grievance Cell
www.ssi.nic.in
Additional Development
www.laghu-udyog.com
www.nsicindia.com
Commissioner,
www.niesbud.com
Office of the DC(SSI)
www.nisiet.com
Room No.721
www.iie.nic.in
Nirman Bhavan
New Delhi – 110011
Tel. No. 23061847
No. 011-23061017 (Fax)
Information and Facilitation Counter
Gate No.4, Ground Floor,
Nirman Bhavan, New Delhi-110 011
Tel.No.23062219
-
Ministry of SSI
SIDO
NSIC
NIESBUD
NISIET
IIE
Ministry of Small Scale Industries
12.10 RIGHT TO INFORMATION ACT
In order to promote transparency
and accountability in the working of every
public authority and to empower the citizens
to secure access to information under the
control of public authorities, the
Government of India enacted “The Right to
Information Act, 2005”. In accordance with
the provisions of section 4(1) (b) of this Act,
the Ministry of Small Scale Industries,
Government of India has brought out a
handbook for information and guidance of
the stakeholders and the general public and
hosted the same on the website of the
Ministry i.e. www.ssi.gov.in. In terms of
SIDO
NSIC
IIE, Guwahati
NISIET, Hyderabad
NIESBUD, Noida
section 5(2) of the Right to Information Act,
2005, Central Public Information Officers
(CPIO) have been designated in the
Ministry.
Attached office of the Ministry i.e. Small
Industry Development Organization (SIDO)
and other offices/organizations of Ministry
viz. the National Small Industries
Corporation Limited (NSIC), a Public Sector
Undertaking and three EDI of the Ministry
which come under the administrative control
of this Ministry, have also designated CPIOs
in respect to their organizations. The details
of CPIOs designated by them is available
on the following websites:-
www.lagu-udyog.com
www.nsicindia.com
www.iie.nic.in
www.nisiet.com
www.niesbud.com
123
Annual Report 2006-2007
ANNEXURE I
NUMBER OF SSI UNITS
FIXED INVESTMENT IN SSI SECTOR
124
Ministry of Small Scale Industries
ANNEXURE II
PRODUCTION IN SSI SECTOR
EMPLOYMENT IN SSI SECTOR
125
Annual Report 2006-2007
ABBREVIATIONS
CAD
Computer Aided Design
NSIC
CAM
Computer Aided
Manufacturing
National Small Industries
Corporation Limited.
NTSC
National Small Industries
Corporation Technical Service
Centre
CFTI
Central Footwear Training
Institute
CGFS
Credit Guarantee Fund
Scheme
PPDC
Process-cum-Product
Development Centre
CLCSS
Credit Linked Capital Subsidy
Scheme
RTC
Regional Testing Centre
SDP
Skill Development Programme
CNC
Computerized Numerical
Control
SENET
Small Enterprise Information
and Resource Centre Network
DC (SSI)
Development Commissioner
(Small Scale Industries)
SEPTI
EDP
Entrepreneurship
Development Programme
Small Entrepreneurs
Promotion and Training
Institutes
SIDO
Small Industries Development
Organisation
SME
Small and Medium
Enterprises
SSI
Small Scale Industries
TDMF
Technology Development
Modernisation Fund
TRC
Technology Research Centre
TREAD
Trade Related
Entrepreneurship Assistance
and Development for
Women
FTS
Field Testing Station
IDTR
Indo-Danish Tool Room
IGTR
Indo-German Tool Room
IID
Integrated Infrastructural
Development
IIE
Indian Institute of
Entrepreneurship
ISO
International Organisation for
Standardization
LUCC
Laghu Udyami Credit Card
MDA
Market Development
Assistance
TRTC
Tool Room and Training
Centre
MDP
Management Development
Programme
VDP
Vendor Development
Programme
NEF
National Equity Fund
WTO
World Trade Organisation
NIESBUD
National Institute for
Entrepreneurship and Small
Business Development
UNIT
1 crore
10 million
National Institute of Small
Industry Extension Training
10 lakh
1 million
1 lakh
100 thousand
NISIET
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