Paper Presentation

ANNUAL REPORT

GOVERNMENT OF INDIAMINISTRY OF SMALL SCALE INDUSTRIES

2004-2005

ContentsPage No.

Chapter IOverview 1

Chapter IISmall Industry Development Organization (SIDO) 5

Chapter IIICredit and Fiscal Concessions to the SSI Sector 41

Chapter IVNational Small Industries Corporation (NSIC) Ltd. 49

Chapter VTraining and Entrepreneurship Development 58

Chapter VIInternational Cooperation 69

Chapter VIIActivities in the North Eastern Region 71

Chapter VIIIDevelopment Activities for Women 73

Chapter IXUse of Official Language 76

Chapter XVigilance Matters 78

Chapter XICitizens’ Charter 80

Facts at a Glance 82

Acronyms 84

TablesPage No.

A. Performance of Regional Testing Centres 17

B. Summary Report, Coverage and Highlights of the Final Results of

Third Census (2001-02) 23

C. Section-wise details of Common Facility & Testing Services-PPDC, Meerut 30

D. Physical Target & Achievements of CFTI, Chennai 33

E. Actual & Anticipated Achievements of CFTI, Agra 33

F Flow of Credit to SSI Sector from all Public Sector Banks, since 2000 41

G. Status of Credit to Tiny Sector since 2000 42

H Financial performance year wise under

Credit Linked Capital Subsidy Scheme (CLCSS) 46

I. Various Reasons for Sickness/Incipient Sickness 48

J. Types of Programme and Number of Participants - IIE 60

K. Entrepreneurship Education - IIE 62

L. Academic Performance of NISIET 65

M. Training Programmes conducted by NIESBUD during 2004-05 67

N. Proposals (State-wise) Approved for North Eastern Region

and Amount of Guarantee under the Credit Guarantee Scheme 71

1

Chapter I

OVERVIEW

1.0 BACKGROUND

The small scale industries (SSI) constitute

one of the vibrant sectors of the Indian

economy in terms of employment generation,

the strong entrepreneurial base it helps to

create and its share in industrial production

and exports. The Government created

Ministry of Small Scale Industries and Agro

and Rural Industries (SSI&ARI) in October,

1999 as the nodal Ministry for formulation of

policy and co-ordination of Central assistance

relating to promotion and development of the

small scale industries in India. The Ministry

of Small Scale Industries and Agro and Rural

Industries (SSI&ARI) was bifurcated into two

separate Ministries, namely, Ministry of Small

Scale Industries and Ministry of Agro and

Rural Industries in September, 2001. Taking

into account the high potential for growth in

the SSI sector in terms of output, employment

and exports, the role of the Ministry of Small

Scale Industries is to strengthen the SSI

sector, to enable it to remain competitive in

market-led economy and generate additional

employment opportunities. For achieving

these objectives, the endeavor of the Ministry

is to provide the SSI sector proper and timely

inputs like:

! adequate credit from financial institutions/

banks;

! funds for technology upgradation and

modernization;

! adequate infrastructural facilities;

! modern testing facilities and quality

certification laboratories;

! modern management practices and skill

upgradation through advanced

training facilities;

! marketing assistance; and

! level playing field at par with the large

industries sector;

2.0 MINISTRY

2.1 The Ministry of SSI designs policies,

programmes, projects and schemes in

consultation with its organizations and various

stakeholder and monitors their implementation

with a view to assisting the promotion and

growth of small scale industries. The Ministry

also performs the function of policy advocacy

on behalf of the SSI sector with other Ministries/

Departments of the Central Government and

the State and Union Territories.

2

2.2 The implementation of policies and various

programmes/projects/schemes for providing

infrastructure and support services to small

enterprises is undertaken through its attached

office, namely the Small Industry Development

Organization (SIDO) and the National Small

Industries Corporation (NSIC) Ltd., a public

sector undertaking under the Ministry.

3.0 SMALL INDUSTRY DEVE-LOPMENT ORGANIZATION(SIDO)

3.1 The Office of the Development

Commissioner (Small Scale Industries) is also

known as the Small Industry Development

Organization (SIDO). It is an apex body for

assisting the Ministry in formulating,

coordinating, implementing and monitoring

policies and programmes for the promotion and

development of small scale industries in the

country and is headed by the Development

Commissioner (SSI).

3.2 In addition, the SIDO provides a

comprehensive range of common facilities,

technology support services, marketing

assistance, etc., through its network of 30 Small

Industries Service Institutes (SISIs), 28 Branch

SISIs, 7 Field Testing Stations (FTS), 4

Regional Testing Centres, 2 Small Entrepreneur

Promotion and Training Institutes (SEPTI) and

1 Hand Tool Design Development and Training

Centre. The SIDO also has a network of Tool

Rooms, Process-cum-Product Development

Centres (PPDCs) and technology and training

support institutes which are run as autonomous

bodies registered as societies under the

Societies Act.

4.0 NATIONAL SMALL INDUS-TRIES CORPORATION (NSIC)LTD.

4.1 The National Small Industries Corporation

Ltd. was set up with a view to promoting, aiding

and fostering the growth of small scale

industries in the country with focus on

commercial aspects of these functions. NSIC

continues to implement its various programmes

and projects throughout the country to assist

the SSI units. The Corporation has been

assisting the sector through the following

schemes and activities:

! Supply of both indigenous and imported

machines on easy hire-purchase terms

! Composite term loan scheme

! Procurement, supply and distribution, of

indigenous and imported raw-materials

! Marketing of small industries products

! Export of small industries products and

developing export-worthiness of small

scale units

! Enlisting competent units and facilitating

their participation in Government Stores

Purchase Programme

! Training in several technical trades

! Sensitizing SSI units on technological

upgradation through Software

Technology Parks and Technology

Transfer Centres

! Mentoring & advisory services

3

! Technology business incubators

! Setting up small scale industries in other

developing countries on turnkey basis

! Other areas & international co-operation

4.2 Over the years, the Corporation has made

significant contribution to the growth of the SSI

sector in India. The Corporation has also set

up a large number of turnkey projects in a

number of developing countries. The

Corporation is an ISO: 9001-2000 Company.

5.0 SMALL SCALE INDUSTRIESBOARD

5.1 The SSI Board is the apex non-

statutory advisory body constituted by the

Government of India to render advice on all

issues pertaining to the SSI sector. The Minister

incharge of the SSI Ministry is the Chairman of

the Board. Members of the Board, include inter

alia State Industries Ministers, selected

Members of Parliament, Secretaries of various

Departments of the Central Government, Heads

of Financial Institutions, Representatives of

Industry Associations and Eminent Experts.

5.2 The SSI Board provides to its members

a forum for interaction to facilitate co-operation

and inter-institutional linkages and to render

advice to the Government on various policy

matters, for the development of the sector.

5.3 The Board was first constituted in 1954.

Its term is for two years. The Board was last

constituted on 18th January, 2003, with 101

members and held its 48th meeting on 17

th

January, 2004.

6.0 NATIONAL INSTITUTES FORE N T R E P R E N E U R S H I PDEVELOPMENT

As entrepreneurship development and

training is one of the key elements for the

promotion of small scale industries, the Ministry

has established three National Institutes, viz.

the National Institute of Small Industry

Extension Training (NISIET) at Hyderabad, the

National Institute of Entrepreneurship and Small

Business Development (NIESBUD) at New

Delhi and the Indian Institute of Entrepreneur-

ship (IIE) at Guwahati as autonomous bodies.

These Institutes are responsible for develop-

ment of training models and undertaking of

research and training for entrepreneurship

development in the SSI sector.

7.0 NATIONAL COMMISSION ONENTERPRISES IN THEUNORGANIZED/INFORMALSECTOR

7.1 The National Commission on Enterprises

in the Unorganized/Informal Sector was

constituted in September, 2004 under the

chairmanship of Dr. Arjun K. Sengupta, an

eminent economist. It has three full-time

Members and two part-time Members and an

Advisory Board consisting of 11 eminent experts

from different fields relating to the unorganized/

informal sector. The Commission will

recommend measures considered necessary

for bringing about improvement in the

productivity of the informal sector enterprises,

generation of large scale employment

4

opportunities on a sustainable basis, particularly

in the rural areas, enhancing the com-

petitiveness of the sector in the emerging global

environment, linkage of the sector with

institutional framework in areas such as credit,

raw material, infrastructure, technology

upgradation, marketing and formulation of

suitable arrangements for skill development.

7.2 In accordance with its terms of

reference, the Commission and its Advisory

Board have held several rounds of

deliberations on a host of issues relating to

the unorganized/informal sector enterprises.

In the light of these deliberations, the following

issues have been identified so far by the

Commission for detailed consideration and

recommendations:

! notion of growth poles for the informal sector

in the form of clusters/hubs, where external

economies need to be provided to spur

employment generation and productivity

enhancement and the feasibility of

integrating the initiatives and programmes

of various Ministries in this domain;

! skill formation in the informal sector and

potential for public private partnership in

providing the required skills;

! provision of micro finance and related

services to the informal sector

enterprises and strengthening of the

institutional framework in this area; and

! issues concerning social security for the

workers in the informal sector and instru-

mentalities for achieving this objective.

Shri Anupam Dasgupta, Secretary (SSI & ARI) is handing over the cheques of contribution for the PrimeMinisters’ Relief Fund (for Tsunami victims), to Hon’ble Minister of SSI & ARI Shri Mahabir Prasad. Also seen

in the picture are Smt. Stuti N. Kacker Jt. Secretary - SSI and Shri Rajiv Bhatnagar, CMD-NSIC

5

Chapter II

SMALL INDUSTRY DEVELOPMENTORGANIZATION (SIDO)

1.0 Small Industry Development Organization

headed by the Development Commissioner, is

an apex body for formulating, coordinating,

implementing and monitoring policies and

programmes for the promotion and

development of the small scale industries in the

country. It provides a comprehensive range of

facilities and services to small scale units

through a network of 30 Small Industries

Service Institutes (SISIs), 28 Branch SISIs, 7

Field Testing Stations, 4 Regional Testing

Centres, 2 Small Entrepreneur Promotion and

Training Institutes (SEPTI) and 1 Hand Tool

Design Development and Training Centre.

1.1 For the benefit of Small Scale Industries

seeking information about the latest

technologies available all over the world,

Technology Resource Centres (TRCs) have

been set up in all 30 SISIs. These TRCs are

acting as an agency for identifying appropriate

technology, help in acquiring skills for use of

technology, as well as facilitate absorption of

technology. In due course of time, TRC in each

SISI would be linked to the cluster development

programme and will prepare information on

technology based industrial cluster. The TRC

will work as a facilitator and enable the small

industries to access different web sites for the

latest information and help the industry to adopt

viable advanced technology suitable to local

conditions.

1.2 There are also a few specialized

institutions, like The Central Institute of Tool

Design, Hyderabad, The Central Tool Room &

Training Centres at Bhubaneswar and Kolkata,

Central Tool Room at Ludhiana, 3 Indo-German

Tool Rooms at Indore, Aurangabad and

Ahmedabad and Indo-Danish Tool Room at

Jamshedpur, Institute for Design of Electrical

Measuring Instruments (IDEMI), Mumbai,

Electronics Service & Training Centre,

Ramnagar (Uttaranchal), 2 Central Footwear

Training Institutes at Agra and Chennai, 2

Process-cum-Product Development Centres at

Agra & Meerut and Fragrance and Flavour

Development Centre, Kannauj and Centre for

Development of Glass Industry, Ferozabad

which provide training and technical services

in their respective specified fields.

The important activities of the organization

are:

! Advising the Government in policy formu-

lating for the promotion and development

of small-scale industries

6

! Providing techno-economic and

managerial consultancy, common facility

and extension services to small-scale

units

! Providing facilities for technology

upgradation, modernization, quality

improvement and infrastructure

! Human Resource Development through

training and skill upgradation

! Providing economic information services

! Maintaining a close liaison with the

Central Ministries, Planning Commission,

State Governments, financial institutions

and other organizations concerned with

the development of the small-scale

industries

! Evolving and coordinating policies and

programmes for development of small-

scale industries as ancillaries to large and

medium scale industries

! Provide testing calibrations services to

Small Scale Units

! Implementing / monitoring of Credit

Guarantee Fund Scheme and Credit

Linked Capital Subsidy Scheme

An amount of Rs. 315.55 crore has been

allocated for implementation of the Plan

Schemes during the financial year 2004-05.

2.0 SMALL & MEDIUM ENTER-PRISES DEVELOPMENT BILL

A single comprehensive Act for

promotion, development and enhancement of

competitiveness of small enterprises has been

a long outstanding demand of the Sector,

especially with a view to free the sector from

a plethora of laws and regulations and visit of a

large number of inspectors, which it has to face

with limited awareness and resources. Ministry

of SSI has drafted a Small & Medium

Enterprises Development Bill to address the

issues of small scale sector relating to:

! Registration

! Credit

! State Procurement

! Labour regulations

! Delayed payment to SSIs

! Reservation

3.0 RESERVATION POLICY

The policy of reservation of items for

exclusive manufacture in the small scale sector

was initiated in 1967 with 47 items. Reservation

grants protection to small scale units against

large/medium scale undertakings including

multi-nationals, who are not allowed to

manufacture these items except under 50%

export obligation.

3.1 In order to provide statutory backing to

the reservation in small scale sector, the

Industries (Development & Regulation) Act,

1951 was amended in March 1984 empowering

the Government to reserve items. This

necessitated the constitution of an Advisory

Committee under the provisions of Section

29(B) of the Act on reservation in March, 1984.

The Secretary (SSI) is the Chairman of this

7

Committee. The other Members of this

Committee are Secretary (IP&P), Secretary

(Commerce), Advisor (VSI), Planning

Commission with AS&DC (SSI) as Member-

Secretary.

3.2 This Committee has met 23 times and the

last meeting was held on 02-09-2004. On the

recommendations of this Committee,

Government de-reserved 85 items on 20-10-

2004. As on date, 605 items are reserved for

exclusive manufacture in the small scale sector.

Enhancement of investment limit, for export

oriented/high tech items reserved for

manufacture in SSI sector, from Rs. 1 crore to

5 crore

4.0 ENHANCEMENT OF INVEST-MENT LIMIT FOR EXPORTORIENTED / HIGH TECHITEMS

In order to enhance the competitiveness

of the small scale sector, in the changing

scenario of economic liberalization and

globalization, the investment limit in respect

of certain hi-tech and export oriented items was

enhanced to Rs.5 crore enable them to

undertake technological upgradation. During

the year 2003-04, investment limit in respect

of seven items of sports goods reserved for

exclusive manufacture in small scale sector

was enhanced and notified vide Notification

No. S.O.1109 (E) dated 13-10-2004. With this,

the number of items, which have investment

ceiling of Rs.5 crore in plant and machinery

has risen to 71.

5.0 FOREIGN DIRECT INVEST-MENT IN SSI

A small scale unit cannot have more than

24 per cent equity in its paid up capital from any

industrial undertaking, either foreign or domestic.

If the equity from another company (including

foreign equity) exceeds 24 per cent, even if the

investment in plant and machinery in the unit

does not exceed Rs.1 crore, the unit loses its

small scale status. The Ministry has

communicated its consent to the enhancement

of this limit to 49%. Non-small scale units can

manufacture items reserved for the small scale

sector only after obtaining an industrial license.

In such cases the non-small scale unit is required

to undertake an obligation to export 50% of the

production of SSI reserved items. The Ministry

is also making a reference to the Department of

IP&P about reduction of this export obligation to

30% as recommended by the Study Group.

6.0 SMALL INDUSTRIES SER-VICE INSTITUTES

The scheme has been continuing from the 6th

Five Year Plan. Out of the 58 SISIs / Br. SISIs,

15 SISIs/Br.SISIs are in the backward and hilly

areas of the country.

The main activities of Small Industries Service

Institutes/Branches are as follows:

! Assistance/Consultancy to prospective

and existing Entrepreneurs,

! Preparation of State Industrial Profile and

District Industrial Potential Surveys,

8

! Preparation/updation of project profiles,

! Holding of Entrepreneurship

Development Programmes, Motivational

Campaigns, Management Development

Programmes, Skill Development

Programmes,

! Production Index,

! Energy Conservation,

! Pollution Control,

! Quality Control & Upgradation,

! Export Promotion,

! Ancillary Development,

! Common facility workshop/Lab,

! Preparation of Directory of specific

industry,

! Intensive Technical Assistance,

! Coordination with DICs and other state

government official,

! Undertaking of Market Surveys.

6.1 The SISIs also perform job works and

provide common facility services to the small /

tiny units through workshops set up in these

institutes. During the year, 3630 units were

assisted by way of developing high tech jigs,

fixtures, tools, models, prototypes etc.and

2416 trainees are to be trained in the area of

Mechanical, Metallurgy, Chemical, Food and

Glass & Ceramic technology. 69 District

Potential Survey Reports and 10 State Industrial

Survey Reports have been prepared upto

December, 2004.

7.0 UPGRADATION OF WORK-SHOP INTO MINI TOOL ROOM

A few workshops have been converted

into Mini Tool Rooms and provided hi-tech

machines, CAD/CAM software, CNC machines

etc. have been provided to the selected

workshops like SISI Mumbai, Chennai,

Bangalore, Jaipur, Delhi, Kolkata, Kanpur,

Ludhiana, Indore, Patna, Goa, Thrissur,

Guwahati, Jammu, Ranchi, Br. SISI

Mangalore, Varanasi, Gwalior. Further to

keep pace with technological requirements,

more CAD/CAM, computer aided facilities

have been added in selected SIDO field offices

as per the need of the local industry. 15000

educated unemployed youth are to be trained

in the area of IT, Computer Aided Designing/

Computer Aided Manufacturing (CAD/CAM),

including specialized training on CNC

machines. In the coming years, all the

workshops attached with SISIs will be

equipped with CAD/CAM software and hi-tech

machines.

SISI, Agartala organised a two-week ManagementDevelopment Programme on Marketing Management from13th to 24th September, 2004 at Agartala. On this occasion

Dr. V. S. Murthy, Director, SISI, Agartala delivering thewelcome address

9

8.0 ADVERTISING & PUBLI-CATIONS/LAGHU UDYOGSAMACHAR

Advertising and Publications

The Advertising and Publication Division

of Small Industry Development Organization

(SIDO) creates awareness about Government

Policies and Programmes; Incentives &

Facilities, Institutional Support Services

available to the Small Scale Sector. It

coordinates with DAVP & SIDO offices for

timely publication of advertisements on

different entrepreneurship development

training courses, management development

programmes, skill development courses in

newspapers in different parts of the country in

its local languages.

9.0 LAGHU UDYOG SAMACHARAND OTHER PUBLICATIONS

9.1 Laghu Udyog Samachar, a Quarterly

Journal in English and Hindi for Small Scale

Industry Sector is disseminating updated

information for the benefit of the prospective

and existing entrepreneurs. Laghu Udyog

Samachar is an important window in print for

the small scale industry sector, 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, Gazette

Notifications, field activities, statistical and

economic information as well as articles on

various issues pertaining to the Small Scale

Industries.

9.2 On the occasion of the Golden Jubilee of

SIDO (1954-2004), a Commemorative Issue of

Laghu Udyog Samachar was released on

August 30, 2004. During the year, 2004-05 the

following publications were brought out:

(i) Final Results: Third All English

India Census of

SSI – 2001-02

(ii) SIDO’s Half Century English

(iii) SIDO’s Half Century Hindi

(iv) Laghu Udyog Samachar Bilingual

January – June, 2004

(v) Laghu Udyog Samachar Bilingual

January-June, 2004

10.0 INFORMATION & FACILI-TATION COUNTER (IFC)

The Information and Facilitation Counter

(IFC) in the office of DC (SSI) disseminates

updated information for the benefit of the

prospective and existing entrepreneurs on the

services and activities of the DC (SSI) and

related institutions in the area of small scale

industry promotion and development. The

Information Counter is computerized and

supplemented by hard copies of information

such as brochures, pamphlets, books, etc. The

services made available are (i) counseling &

information on how to set up a SSI unit,

(ii) supply of technical information, project

reports and details of various programmes,

10

(iii) guidance on policies concerning small

enterprises and schemes of various State

Governments, (iv) information on the

registration scheme and supply of registration

forms, (v) information on the IDR Act and the

Notifications on definition, etc. issued under the

Act. (vi) educates on Credit Policies of the

Government, (vii) supply of statistics related to

the small scale industries, (viii) technical and

marketing information concerning small scale

industries, (ix) list of Items reserved for

exclusive manufacture in the SSI sector.

11.0 SMALL ENTERPRISE IN-FORMATION & RESOURCECENTRE NETWORK (SENET)

Small Enterprise Information & Resource

Centre Network (SENET), was launched by the

Office of the DCSSI in April, 1997, at an

estimated cost of Rs. 434.5 lakh. The scheme

was modified and its scope was enlarged to

include office automation. The modified scheme

was approved in March, 2000 at the estimated

cost of Rs. 1140.38 lakh. The scheme continued

in X plan with an outlay of Rs 1700 lakh.

The objectives of the SENET project are:

! to pioneer, create and promote databases

and information,

! to facilitate networking amongst the

information seekers, of the small scale

sector, including the central/state

governments, government agencies

engaged directly or indirectly in the

promotion and development of the SSI

sector, national and state level industry

associations, NGOs,

! to establish linkages with existing

databases and the entrepreneur, for

development and promotion of the small

scale sector,

! to carry out office automation in the office

of the DC(SSI) for bringing out trans-

parency in the functioning of the office,

! to create a Website for hosting data

available within the organization,

! to host alliance databases in order to

serve as a one-stop-shop for information

seekers, industry associations and also

individual industries.

Actual Performance

! 20 SENET centers were initially given

servers & networking components for 64

KBPS leased line connectivity to the main

center and database building, with trained

staff. 10 more SISIs were provided with

computer hardware and training to the

staff during 2002-03. Servers of 64 KBPS,

ISDN dialup connectivity and LAN is being

set up in these SISI’s during the current

year.

! A website was created and launched in

2000. It was upgraded to a knowledge-

based database driven, interactive portal

and launched on August 30, 2001. This

portal now has more than 8000 pages of

static information and is being updated

twice weekly. It has a message board,

11

online polls section, on line events

section, monthly e-news bulletin, etc.

! Under office automation of SIDO, 170

PCs were provided to the officers, upto

Section Officer level along with LAN

connectivity. Main Center infrastructure

developed with Server room along with

9 servers including 2 web servers

hosting the web portal and 3 database

servers were commissioned along with

leased line connectivity and a structured

LAN.

! A multimedia presentation package on

SIDO as well as SSI sector were brought

out in the form of CD-ROM. Revised

version 2.0 of the CD was released in

2001. The latest version 3.0 is now being

released.

! Security audit was carried out and the

entire infrastructure was reinforced with

Intruder Detection System and other

security measures.

! Online Search Facility for ISO 9000

reimbursement cases was launched

during November 2004.

! Monthly E-Newsletter was launched from

December, 2004

SENET has been awarded the Golden

Icon National Award 2005 for “Best

Documented Knowledge Resource” under

Professional Category by the Deptt. of

Administrative Reforms & Public Grievances,

Government of India and the Department of

Information Technology.

12.0 CONSTRUCTION OF OFFICEACCOMMODATION FORSIDO FIELD OFFICES

90% of the SIDO offices located in

various parts of the country have their own

permanent buildings which were constructed

out of the funds allotted under the scheme.

During the year 2003-04, building with vacant

land was purchased for SISI, Solan. Efforts are

being made to purchase a piece of land for

SISI Ahmedabad for construction of its own

building. The building for remaining SISIs

building will be constructed during 10th Five

Year Plan. Further, under this scheme, funds

are being provided for maintenance/renovation

of the SIDO buildings.

12.1 Construction of residentialaccommo-dation for the officers &staff of SIDO in N.E. Region, HillyAreas, Union territories andBackward and Difficult Areas.

To provide residential accommodation

to the officers and staff of SIDO posted in

North Eastern and other far flung areas

where suitable rented accommodation at

reasonable rent is not available, residential

accommodation is constructed. Since the

inception of the scheme, residential

accommodation at Srinagar, Guwahati, Aizwal,

Tura, Tezpur and Port Blair have been

constructed. Construction is under progress at

Silvasa.

12

13.0 LIBRARY

SIDO is maintaining Libraries at its Hqrs.

office at Nirman Bhawan and in all its field

Institutes. These libraries are a source of

information and are maintained with the

objective of making available the technical

information required for the development of

small scale industries. In the era of Information

Technology the SIDO libraries are being

equipped with computers, photostat machines,

internet connectivity in a phased manner.

During the year more than 50 technical journals

were purchased. About 30 libraries attached

with SISIs/RTCs were modernized and

equipped with computers, technical books with

an expenditure of Rs.22.00 lakh.

14.0 MANAGEMENT DEVELOP-MENT PROGRAMMES

Organizing of Management

Development Training programmes constitutes

an integral part of the activities of SIDO,

besides counseling and consultancy services.

The objective of imparting training in

management subjects is to improve decision-

making capabilities resulting in higher

productivity and profitability of existing and

potential entrepreneurs. Inputs on scientific/

modern management trends/practices are

provided to the participants in short duration

sessions, by experts.

14.1 During the year 2004-2005, 340 MDPs

will be held for 7000 entrepreneurs/

participants, an amount of Rs.40.69 lakh has

been sanctioned for the same. Upto Dec.,

2004, 163 MDPs have been conducted

benefiting 3100 entrepreneurs. 148 MDPs are

expected to be conducted during remaining

months of the financial year for about 3700

entrepreneurs.

15.0 SIDO OFFICERS TRAININGPROGRAMME

During the year 2004-05, it was decided

to nominate 400 officers/ officials incurring the

budgeted expenditure of Rs. 50.00 lakh for

training of its officers and officials posted at its

field offices i.e. Small Industries Service

Institute, Branch Institutes, Regional Testing

Centres etc. located all over India as well as

from its Headquarters at New Delhi. 322 officers

/ officials have been nominated for different

training programmes within the country upto

November 30, 2004.

16.0 ENTREPRENEURSHIP DEV-ELOPMENT PROGRAMMES

Motivation and Training are the two

crucial inputs for promoting entrepreneurship

and sustaining the growth of existing small-

scale industries. Small Industry Develo-

pment Organization (SIDO) has been

providing these inputs regularly through

various Small Industries Service Institutes

(SISIs). Regional Testing Centres (RTCs)

and SEPTI, Tiruvalla.

16.1 Entrepreneurship Development

Programmes are being organized as a regular

13

training activity to cultivate the latent qualities

of youth both (men & women) by enlightening

them on various aspects that are necessary to

be considered while setting up enterprises. The

duration of these training programmes varies

from 4 to 6 weeks with a minimum intake of 20

participants in each course. 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.

16.2 During the year 2004-05, SIDO will be

conducting 619 EDPs for about 15000

entrepreneurs in the country and an amount of

Rs.216.31 lakh has been sanctioned. Upto

Dec.,2004, 346 EDPs have been conducted

benefiting 8700 entrepreneurs and about 260

EDPs are expected to be conducted during the

remaining months of financial year 2004-05, for

about 6300 entrepreneurs.

17.0 WORLD TRADE ORGANI-ZATION (WTO) CELL

The Cell is maintaining a 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 interest of the small scale

industries.

17.1 Various vital issues which arose due

to the Fourth WTO Ministerial Conference

Doha were dealt with. Requisite feedback

on the modalities for negotiations on non-

agricultural products was sent to Department

of Commerce, Ministry of Commerce &

Industry.

17.2 Similarly, inputs to Ministry of Commerce

and Industry, Department of Commerce were

also sent in regard to various Bilateral Trade

Agreements under which negotiations are going

on for exchange of tariff concessions. These

Agreements are SAARC Preferential Trading

Arrangement (SAPTA), Bangkok Agreement

with Republic of Korea, China, Sri Lanka and

Bangladesh, Agreement on Economic

Cooperation between India & ASEAN countries

(Brunei, Darussalem, Cambodia, Indonesia,

Shri A. Sahasranaman, Principal Secretary (Industries &Commerce), Govt. of J & K distributing certificate to one of

the trainee. The samples of Cricket Bat & other sports goods,produced by the trainees during the programme, are

exhibited on the table

14

Laos, Malaysia, Myanmar, Phillipines,

Singapore, Thailand, Vietnam), India -

Singapore Comprehensive Economic

Cooperation Agreement (CECA) Preferential

Trade Agreement between India and

MERCOSUR (Created by Argentina, Brazil,

Paraguay and Uruguay), Agreement on SAFTA,

Preferential Trade Agreement with Chile and

India-Thailand, Free Trade Agreement.

18.0 NATIONAL AWARD FORSMALL SCALE ENTRE-PRENEURS

To boost the morale and motivate small

scale entrepreneurs to set up and manage SSI

units so as to achieve higher levels of productive

management through modernization, quality

upgradation, market expansion, export development, innovation and technological

improvements, an incentive-cum-recognition

scheme of National Awards to Small Scale

Entrepreneurs is in operation. The Awards

consist of a certificate, a trophy and cash prizes

amounting to Rs. 25,000, Rs. 20,000 and Rs.

15,000 for first, second, third positions,

respectively. Special Awards at par with the

National Award to an outstanding SC/ST and a

woman entre-preneur have also been

introduced since 1993. Special Recognition

Awards carrying cash prize of Rs.10,000, a

certificate and a trophy is given to an

entrepreneur from each State/UT.

18.1 For the Year 2002, 20 entrepreneurs were

selected from various States/UTs for the above-

mentioned awards. Dr. Manmohan Singh,

Hon’ble Prime Minister of India gave theseNational Awards Presentation

National Awards Presentation

15

awards in a glittering function held on August

30, 2004 at Vigyan Bhawan, New Delhi.

18.2 National Awards for Research &

Development Efforts in Small Scale

Industries: The Govt. of India has instituted a

scheme of National Award for Research and

Development Efforts in the Small Scale

Industries, to promote the concept of in-house

research and development efforts for

strengthening technical soundness and spirit of

innovation amongst the units, in the larger

interest of overall qualitative development of the

Small Scale Industries.

18.3 The First, Second and Third Award under

this scheme carries cash prizes of

Rs. 25,000, Rs. 20,000 & Rs. 15,000 res-

pectively besides a trophy and a certificate per

annum.

18.4 For the year 2002, Dr. Manmohan Singh,

Hon’ble Prime Minister of India honoured 3

Entrepreneurs on August 30, 2004.

19.0 SUB-CONTRACTING EX-CHANGE FOR ANCILLARYDEVELOPMENT

Following the announcement of the

liberalized policy, a scheme for setting up of

Sub-Contracting Exchanges by Industries

Associations/NGOs was launched. Under this

scheme the financial assistance upto Rs. 4.7

lakh is provided for purchasing the capital

equipment such as computer and accesso-

ries, suitable software, furniture, photocopier

machine, telephone, fax machine, spiral bin-

ding and cutting machine etc. So far 54 Sub-

Contracting Exchanges have been set up by

Industries Associations/NGOs in various parts

of the country (upto November, 2004). Five

more Sub-contracting Exchanges are likely

to be set up by the end of the financial year

2004-2005.

20.0 VENDOR DEVELOPMENTPROGRAMME

Under the existing schemes, Vendor

Development Programme both at National and

State Level are conducted by Small Industries

Service Institutes. 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 business linkages. About 40-45

Vendor Development Programmes are

conducted in a year of which 8-10 are at the

National Level. 15 Vendor Development

Programmes have been conducted by the Small

SSI Convension/Golden Jubilee Celebration - felicitatingformer Development Commissioner, SSI

16

Industries Service Institutes, in the different part

of the country till November, 2004 and about

25 Vendor Development Programmes are likely

to conducted by the end of the financial year.

provides one time assistance upto 90% of the

cost of machinery and equipment (limited to

Rs. 9 crore) for setting up a new Mini Tool Room

and 75% cost of machinery and equipment

limited to Rs. 7.5 crore for upgradation of

existing Mini Tool Rooms. The balance

machinery cost and the cost of land and building

and recurring expenditure is to be funded by

the concerned State Government.

Objectives

! 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 processes using

CAD/CAM techniques are to be adopted.

! to provide training facility in tool

manufacturing and tool design to

generate a work force of skilled workers,

supervisors, engineers/designers etc.

! 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.

! 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 for Mini Tool

Rooms from Governments of Kerala, Madhya

Pradesh, Karnataka & West Bengal for

Upgradation of their existing tool rooms have

A section of audience during the inaugural session of theNational Level Exhibition-cum-Vendor Development

Programme

21.0 MINI TOOL ROOM &TRAINING CENTRE

A ‘Mini Tool Room Scheme’ has been

launched, to help State Governments to set up

Small Tool Rooms, for creating localized

training and production facilities and for

rendering assistance to the small scale units,

in the field of Tool & Die Making. The scheme

Group Captain of Air Force and other dignitoriesvisiting the stalls

17

been approved and procurement of machinery

& equipment is in progress.

The proposals from Governments of

Nagaland, Tripura and Jharkhand for setting up

new Mini Tool Rooms have also been approved.

22.0 REGIONAL TESTINGCENTRES/FIELD TESTINGSTATIONS (RTC/FTS)

Four Regional Testing Centres (RTCs)

located at New Delhi, Mumbai, Chennai and

Kolkata provide testing facilities to small scale

industrial units for raw materials, semi-finished

products and finished products manufactured

by them. These centres are equipped with the

state of art indigenous and imported equipment,

in the disciplines of Chemical, Mechanical,

Metallurgical and Electrical Engineering. The

Centres also undertake Performance test, Type

test and Acceptance test of semi-finished,

finished products and also calibration works for

measuring instruments and equipment. They

are also engaged in development of testing

processes of various products.

22.1 Besides, RTCs also render technical

support to the small scale units in upgrading

the quality of the products manufactured by

them. They also provide Consultancy Services

in testing and quality management and in

process quality system to SSIs.

22.2 All the RTCs are accredited by

internationally recognized NABL certification as

per ISO 17025 for Laboratories. RTC, Mumbai

has also been recognized by SASO (Saudi

Arabian Standards Organization) and are

testing products exported to that region in

addition to Europe and South Africa as per IEC/

BSEN/SABS standards.

22.3 The performance of RTCs during last

three years and the self-sufficiency level of

these centers are as follows:-

23.0 FIELD TESTING STATIONS

In order to provide testing facilities in the

areas of industry clusters, the Government of

India have set up Field Testing Stations at

Jaipur, Bhopal, Kolhapur, Hyderabad,

Year Revenue Recurring %age of revenue/ No. of jobs No. of testsearned Expenditure expenditure (self- completed performed

(Rs. lakh) (Rs. Lakh) sufficiency level)

2001-2002 245.54 341.23 71.95 13732 134860

2002-2003 238.80 344.30 69.35 12336 134646

2003-2004 258.50 343.18 75.32 12409 139569

2004-2005 186.90 292.33 63.94 8564 107596upto Dec.04

Performance of Regional Testing Centres

18

Pondicherry, Chenganacherry and Bangalore.

These Testing Centres 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.

24.0 SETTING UP OF TESTINGCENTRES BY INDUSTRYASSOCIATIONS & MODERNI-SATION / EXPANSION OFQUALITY MARKING CEN-TRES UNDER THE AEGIS OFSTATE GOVERNMENT

Under the plan scheme, Government of

India provides one time capital grant in aid equal

to 50% of the cost of testing machinery and

equipment, restricted to Rs. 50 lakh, to the

Industries Associations which wish to set up and

operate testing laboratories of international

standards and also for modernization/

expansion of existing Quality Marking Centres

of State Governments and their Autonomous

bodies. Rest of the expenditure on testing

machinery and equipment, land and building

and working capital has to be borne by the

Industry Association/State Government.

24.1 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 centers under the

aegis of State Government and State

Government funded autonomous bodies.

24.2 The objective of the scheme is to promote

setting up of testing centers to offer facilities

mainly to Industrial units including SSI units

located in the State for testing the quality of raw

materials, components and the end products

as per the relevant standard specifications.

19

24.3 Under the scheme, 12 Testing Centres

have been provided central grant-in-aid. Out

of these, 5 Testing Centres have been set up

by the Industry Associations and the remaining

7 are Quality Marking Centres under the aegis

of different State Governments. Budget

provision of Rs.50 lakh has been made for the

year 2004-05.

25.0 SMALL INDUSTRY CLUSTERDEVELOPMENT PRO-GRAMME

The Office of the Development

Commissioner (SSI) had launched a scheme

on Technology Upgradation and Management

Programme called UPTECH in 1998 for cluster

of industries, where there is commonality in the

method of production, quality control and test-

ing, energy conservation, pollution control etc.

among the units (of the cluster). The scheme

focused on technology development of the

cluster. In view of globalization of economy,

small scale sector faces a stiff competition not

only on quality and price front but other fronts,

like marketing, export, raw material

procurement etc. and a collective approach by

the SSI units to mitigate the common problems

of the cluster have been considered to be

effective for cluster development. The scheme

has, therefore, been renamed as Small Industry

Cluster Development Programme (SICDP) so

that it can focus on all the aspects viz marketing,

export, study visit, skill upgradation, etc. for

development of the cluster in addition to

technology as a holistic approach is more

appropriate for cluster development.

25.1 Seventy eight clusters have so far been

taken for development under SICDP which

comprised thirty nine clusters for the year 2003-

04 and eighteen clusters till December during

2004-05. The list of clusters taken up during

2004-05 is as below:

! Food Processing, Muzaffarpur, Bihar

! Steel Re-rolling Mills, Raipur, Chhatisgarh

! Agricultural Implements, Karnal, Haryana

! General & Light Engineering, Parwanoo,

Himachal Pradesh

! Readymade Garments, Bangalore,

Karnataka

! Gold Ornaments, Thrissur, Kerala

! Readymade Garments, Indore, Madhya

Pradesh

! Brass & Bell Metal, Khurda, Orissa

! Agricultural Implements, Moga, Punjab

! Ball Bearings, Jaipur, Rajasthan

! Leather Footwear, Agra, Uttar Pradesh

! Leather Goods, Shaniniketan, Uttar

Pradesh

! Installation of Common Facility Centre in

Brass/ Bronze Utensils Manufacturing

Cluster at Pareb, Bihar

! Development of Whiteware Cluster at

Khurja, U.P.

! Development of Auto Parts Clusters at

Phagwara, Jalandhar and Ludhiana

! Development of Cane & Bamboo

Cluster at Dimapur, Nagaland

25.2 In addition to this, a National Resource

Centre was set up at NISIET, Hyderabad to train

20

Cluster Development Executives, carry out

research related to cluster development etc.

25.3 Development of Toy Industry, Stone

Industry, Machine Tool Industry, Lock Industry

and Hand Tool Industry have been taken up

as a National Programme in collaboration with

UNIDO at a project cost of US$ 2.2 million, US$

1.2 million, US$ 1.2 million, US$ 1.2 million

and US$ 0.75 million, respectively. GOI

contribution for the programme is US$ 1.1

million, US$ 0.6 million, US$ 0.6 million US$

0.48 million and US$ 0.3 million, respectively.

26.0 ISO 9000 / ISO 14001 CERTI-FICATION REIMBURSEMENTSCHEME

The scheme for ISO 9000 reimburse-

ment, in operation since March 1994, was

enlarged to include reimbursement of expenses

for acquiring ISO 14001 certification also with

effect from October 28, 2002.

The salient features of the scheme are:

! The Scheme envisages reimbursement

of charges for acquiring ISO-9000/14001

(or its equivalent) certification to the extent

of 75% of the cost subject to a maximum

of Rs. 75,000/- in total.

! All Small Scale industries with Permanent

Registration are eligible to avail the

Incentive Scheme.

! The scheme is applicable only to those

units who have already acquired ISO 9000

(or its equivalent)/ISO 14001 certification.

! The scheme provides one time reimbur-

sement. The amount of subsidy/financial

support if already received from the State

Govt./financial institution shall be adjusted

against the entitlement of reimbursement

under this scheme.

! Govt. of India has extended the Scheme

upto the 10th Five Year Plan, i.e., March

31, 2007.

26.1 During the year 2004-05, 2011 SSI units

have been reimbursed Rs.10.72 crore upto

31.12.2004. About 4000 SSI units are expected

to be benefited through this scheme during the

year 2004-05.

26.2 Awareness/Motivational & Edu-cational Training Programme on IS0 9000/14001: Office of the DC (SSI) has simulta-

neously taken up Awareness/Motivational &

Educational Training Programme on ISO 9000

and TQM through its field Institutions (SISIs &

RTCs) to sensitize the Small Scale Industries

in ISO 9000 and TQM Quality Systems so that

they are motivated to adopt the International

Quality System and become competitive in the

global market. So far about 200 programmes

(one/two/four/five day’s duration) have been

conducted and 7223 participants have been

benefited upto December, 2004.

27.0 MODERNIZATION OF SIDOWORKSHOPS

This is an ongoing Plan Scheme with the

allocation of Rs.500 lakh during the 10th Plan

for the workshops attached to SISIs/Br.SISIs.

Funds are generally provided to SISIs/Br.SISIs

for replacing their outdated/out of order machi-

21

nes. Funds are also being provided for purchase

of accessories, equipments which are required

for these machines for developing Jigs, Fix-

tures, Dies, and Tools etc. On these machines,

training is also imparted to the workers

sponsored by SSI units and unemployed youth

seeking jobs in SSI units. During the year Rs.

45 lakh were spent to upgrade the existing

infrastructure and Rs.5 lakh in N.E region.

28.0 ENERGY CONSERVATIONPROGRAMME (UNDERTECHNOLOGY UPGRADA-TION SCHEME)

In pursuance to the National Programme

on Energy Conservation, SIDO launched this

programme for Small Scale Industries in 1990-

91. There are many energy intensive areas in

Small Scale Sector, such as foundry, forging,

steel steel re-rolling mills, SSI units adopting

Energy audits to improve energy efficiency and

fuel substitution, and monitoring the imple-

mentation of recommendations.

28.1 During the year 2004-05, 30 Awareness

and Motivational–cum-Educational Pro-

grammes on Energy Conservation at the cost

of Rs. 1.80 lakh have been allocated to SISIs

for the benefit of about 900 SSI units.

29.0 INTEGRATED INFRASTRUC-TURAL DEVELOPMENT (IID)SCHEME

The Integrated Infrastructural Develop-

ment (IID) Scheme was launched in 1994, with

the objectives to promote small scale and tiny

units, creating employment opportunities and

developing exports. The Scheme covers

districts which are not covered under the Growth

Centres Scheme. The aim of the IID Scheme is

to provide developed sites with infrastructural

facilities like power distribution network, water,

tele-communication, drainage and pollution

control facilities, roads, banks, raw materials,

storage and marketing outlets, common service

facilities and technological back-up services etc.

The Scheme covers rural as well as urban areas

with a provision of 50% reservation for rural

areas and 50% industrial plots are to be

reserved for tiny sector. The Scheme also

provides for upgradation/strengthening of the

infrastructural facilities in the existing old

industrial estates.

29.1 The estimated cost to set up an IID

Centre is Rs. 5.00 crore (excluding cost of

land). Central Government provides 40% to

a maximum of Rs.2.00 crore as grant and

remaining amount could be loan from SIDBI/

Banks/Financial Institutions or the State

funds.

29.2 Special dispensation for NE Region

(including Sikkim), J&K, H.P and

Uttaranchal: With a view to give a fillip to the

growth of small industries in the North East

Region and a few other states, Govt. of India

relaxed the funding pattern of this Scheme for

North East Region (including Sikkim), J&K, H.P.

and Uttaranchal. As per revised funding pattern,

Govt. of India provides central grant upto 80%

to a maximum of Rs.4.00 crore and the

remaining amount could be loan from SIDBI/

Banks/Financial Institutions or the State funds.

Such agencies should have good track record

and sound financial position.

22

29.3 Progress : Till 31.12.2004, the Central

Government has approved the setting up of 97

centres in various states including 13 projects

for upgradation of infrastructure in the existing

industrial Estates. During the year 2004-05(upto

December, 2004), 5 new IID Centres have been

sanctioned. Out of the total central grant of

Rs.179.08 crore committed for these projects,

an amount of Rs.82.43 crore has been released

upto Dec. 2004. About 23000 sites are propo-

sed to be developed in these centres and 5597

sites have been allotted to the small/tiny units.

30.0 SCHEME ON COLLECTION OFSTATISTICS OF SSIs

The scheme was started 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 Districts Industries Centres (DICs).

30.1 Under the Scheme the following workare being undertaken: (i) Computation of Index

of Industrial Production for small-scale sector

for working out growth in production; (ii) Supply

of monthly production data to Central Statistical

Organization (CSO) so as to represent SSI

sector in the overall Index of Industrial Pro-

duction (IIP) brought out by CSO; (iii) Estimation

of information on number of un-registered units;

(iv) Estimation of production, employment of

both registered and unregistered units; (v)

Updation of Frame and analysis of registration

data and correspondence with State/UT

Directorates of Industries and (vi) Conducting

census and sample survey/diagnostic survey,

from time to time.

30.2 The objective of the Sample Surveys was

(i) to estimate proportion of working units,

closed/untraceable units etc. and to facilitate in

estimating the mortality rates of Small Scale

Industrial Units in various lines of production;

and (ii) to provide Industry wise (2-digits level

of NIC) ratios of SSI units, in respect of

estimated investment, employment, production,

capacity utilization, exports, gross/net value

added, value of raw material consumed etc.

30.3 So far two sample surveys have been

conducted during 1994-95 and 1999-2000 and

one on “Diagnostic Survey” on sickness during

1982-83.

31.0 THIRD CENSUS

The Census, besides updating the

previous Census data, helps in identifiying shift/

changes taken place in the small scale sector.

The first census was conducted in 1973-74 and

the reference year was calendar year 1972.

Second census was conducted in 1990-91 with

the reference year was financial year 1987-88.

31.1 After a gap of about 12 years, the Office

of the DC(SSI) launched the Third Census in

November, 2002. In this census, the units

registered permanently upto March 31, 2001

were covered on complete enumeration basis.

A total of 22,62,401 units were surveyed. Out

of these, 13,74,974 units were found to be

working and remaining 8,87,427 units (39%)

were found closed.

23

31.2 The Unregistered SSI sector was

surveyed for the first time in the third census.

This sector was surveyed using a two-stage

stratified sampling design. Out of 9,94,357

villages and urban blocks, 19,579 villages and

urban blocks were surveyed to identify the units

of unregistered SSI sector. The size of the

unregistered SSI sector is estimated to be

91,46,216. This comprises 38.75 % SSIs and

61.25 % SSSBEs.

Summary Report, Coverage and Highlights of the Final Results of Third Census (2001-02)

Characteristics Registered SSI sector Unregd. sector Total SSI sector

1. Size of the sector 13,74,974 91,46,216 1,05,21,190

2. No. of rural units 6,09,537 51,98,822 58,08,359(44.33 %) (56.8 %) (55 %)

3. No. of SSIs 9,01,291 35,44,577 44,45,868(65.55 %) (38.75 %) (42.26 %)

4. No. of SSSBEs 4,73,683 56,01,639 60,75,322(34.45 %) (61.25 %) (57.74 %)

5. No. of ancillary units 45,797 86,516 1,32,313(% age of no. of SSIs) (5.08 %) (2.44 %) (2.98 %)

6. No. of tiny units 8,82,496 35,43,091 44,25,587among SSIs (99.9 %) (97.9 %) (99.5 %)

7. No. of women 1,37,534 9,26,187 10,63,721enterprises (10 %) (10.13 %) (10.11 %)

8. Nature of activity:Manufacturing/ 8,72,449 33,03,366 41,75,815Assembling/Processing (63.45 %) (36.12 %) (39.69 %)

Repairing & 28,843 16,92,663 17,21,506Maintenance (2.10 %) (18.50 %) (16.36 %)

Services 4,73,682 41,50,187 46,23,869(34.45 %) (45.38 %) (43.95 %)

9. Type of organisation :

Proprietary 12,21,702 88,62,548 1,00,84,250(88.85 %) (96.9 %) (95.8 %)

Partnership 99,190 1,03,662 2,02,852(7.21 %) (1.13 %) (1.9 %)

Pvt. Company 33,284 38,153 71,437(2.42 %) (0.42 %) (0.68 %)

Cooperatives 4,715 9,854 14,569(0.34 %) (0.11 %) (0.14 %)

Others 16,083 1,31,999 1,48,082(1.17 %) (1.44 %) (1.41 %)

24

Characteristics Registered SSI sector Unregd. sector Total SSI sector

10. No. of units managed by :

SC 1,07,934 9,43,969 10,51,903(7.85 %) (10.32 %) (10 %)

ST 48,560 4,74,271 5,22,831(3.53 %) (5.19 %) (4.97 %)

OBC 5,29,406 38,11,372 43,40,778(38.50 %) (41.67 %) (41.26 %)

Others 6,89,074 39,16,604 46,05,678(50.12 %) (42.82 %) (43.8 %)

11. No. of units managed 1,14,361 8,80,780 9,95,141by women (8.32 %) (8.37 %) (9.46 %)

12. Main source of power :No power needed 3,60,611 38,55,035 42,15,646

(26.23 %) (42.15 %) (40 %)

Coal 28,841 2,95,165 3,24,006(2.10 %) (3.23 %) (3.1 %)

Oil 40,401 5,55,416 5,95,817(2.94 %) (6.07 %) (5.66 %)

LPG 7,222 55,237 62,459(0.53 %) (0.60 %) (0.59 %)

Electricity 8,99,657 40,25,262 49,24,919(65.43 %) (44.01 %) (46.8 %)

Non-conventional energy 7,142 60,539 67,681(0.52 %) (0.66 %) (0.64 %)

Traditional energy/ Firewood 31,100 2,99,562 3,30,662(2.26 %) (3.28 %) (3.14 %)

13. No. of units having outstanding 2,76,333 5,01,306 7,77,639loan as on 31-3-2002 (20.1 %) (5.48 %) (7.39 %)

14. No. of units having outstanding 1,96,137 2,82,267 4,78,404loan with institutional sources (14.26 %) (3.09 %) (4.55 %)as on 31-3-2002

15. No. of sick units (with erosion 46,431 58,338 1,04,769of net-worth by more than (3.38 %) (0.64 %) (1 %)50 % or delay in repaymentof institutional loan by morethan 12 months)

16. No. of incipient sick units 1,58,023 5,92,899 7,50,922(decline in gross output over (11.5 %) (6.48 %) (7.14 %)three consecutive years)

17. No. of sick units as per RBI 38,403 46,887 85,290criteria, i.e., those that are sick (19.6 %) (16.61 %) (17.8 %)among units having outstandingloan with institutional sources

25

Characteristics Registered SSI sector Unregd. sector Total SSI sector

18. No. of sick/ incipient sick units 1,92,328 6,30,568 8,22,896(with erosion of net-worth by (13.98 %) (6.89 %) (7.82 %)more than 50 % or delay inrepayment of institutional loanby more than 12 months ordecline in gross output overthree consecutive years)

19. Reasons for sickness/incipient sickness :Lack of demand 1,11,508 4,35,121 5,46,629

(58 %) (69 %) (66 %)

Shortage of working capital 1,09,844 2,69,648 3,79,492(57 %) (43 %) (46 %)

Non-availability of raw material 23,493 76,029 99,522

(12 %) (12 %) (12 %)

Power Shortage 33,099 77,345 1,10,444(17 %) (12 %) (13 %)

Labour Problems 12,182 26,282 38,464(6 %) (4 %) (5 %)

Marketing problems 70,202 2,24,002 2,94,204(37 %) (36 %) (36 %)

Equipment problems 16,995 76,038 93,033(9 %) (12 %) (11 %)

Management problems 9,124 21,088 30,212(5 %) (3 %) (4 %)

20. Per unit employment 4.48 2.05 2.37

21. Total employment 61,63,479 1,87,69,284 2,49,32,763

22. Per unit original value of Plant 2.21 0.27 0.52& Machinery (in Rs.lakhs)

23. Total original value of Plant 30,32,868 24,56,492 54,89,360& Machinery (in Rs.lakhs)

24. Per unit fixed investment 6.68 0.68 1.47(in Rs. Lakhs)

25. Total fixed investment 91,79,207 62,55,660 1,54,34,867(in Rs. Lakhs)

26. Per unit Gross Output 14.78 0.86 2.68(in Rs.lakhs)

27. Total Gross Output 2,03,25,462 79,01,536 2,82,26,998(in Rs. Lakhs)

28. No. of exporting units 7,344 43,262 50,606

29. Value of exports (in Rs. lakhs) 12,30,826 1,89,130 14,19,956

26

ESTIMATED NO. OF UNITS WITH RESPECT

TO REASONS FOR NON-REGISTRATION

Not aware of the provisions 53.13 %

for registration

Not interested 39.86 %

Complicated procedures 3.87 %

Local laws/ regulations 1.76 %

do not permit

Clearance not available 1.38 %

from Municipality etc.

31.3 Highlights of Third Census of SSISector

The main highlights of the Third Census

of Small Scale Industries are as follows:

Registered SSI sector

! All the SSI units permanently registered

upto March 31, 2001 numbering 22,62,401

were surveyed on complete enumeration

basis, of which 13,74,974 units (61 %)

were found to be working and 8,87,427

units (39 %) were found to be closed.

! Of the 13,74,974 working units, 9,01,291

were SSIs and 4,73,683 were SSSBEs.

Thus, the proportion of SSIs was 65.55

%. About 5.08 % of the SSI units were

ancillary units. The proportion of the units

operating in rural areas was 44.33 %.

! In terms of no. of working units, six States,

viz., Tamil Nadu (13.09 %), Uttar Pradesh

(11.85 %), Kerala (10.69 %), Gujarat

(10.08 %), Karnataka (8.04 %) and

Madhya Pradesh (7.41 %) had a share

of 61.16 %.

! With regard to closed units, six States,

viz., Tamil Nadu (14.33 %), Uttar Pradesh

(13.78 %), Punjab (9.32 %), Kerala (8.43

%), Madhya Pradesh (7.4 %) and

Maharashtra (6.11 %) had a share of

59.37 %.

Characteristics Registered SSI sector Unregd. Sector Total SSI sector

30. Employment per 0.67 3.00 1.62Rs. one lakh investment

31. Units maintaining accounts 4,04,672 5,98,333 10,03,005(29.43 %) (6.54 %) (9.53 %)

32. No. of economic activities as per 672 619 672National Industrial Classification-1998, pursued in SSI sector

33. No. of products/ services as per 5,983 2,680 6,003ASICC produced/ rendered inSSI sector

34. No. of reserved products (as per 877 382 878the reserve list effective on31-3-2001) produced in SSI sector

27

! The per unit employment was 4.48. The

employment per rupees one lakh

investment in fixed assets was 0.67.

! Rice milling industry topped the list in

terms of gross output. In terms of exports,

textile garments and clothing accessories

industry was on top.

! Compared to Second Census, the Third

Census brought out some structural

changes in the registered SSI sector.

While the proportion of working units

remained the same by and large, the

domination of SSIs among the working

units has been reduced considerably from

96 % to 66 %. This is mainly due to the

increase in the number of units engaged

in services. The per unit employment has

gone down from 6.29 to 4.48. The per unit

fixed investment has gone up from

Rs.1.60 lakh to 6.68 lakh. This could be

due to technological upgradation.

Unregistered SSI sector

! This sector was surveyed using a two-

stage stratified sampling design. Out of

the 9,94,357 villages and urban blocks,

19,579 villages and urban blocks were

surveyed to identify the units of

unregistered SSI sector. Out of these,

information was completely received in

respect of 19,278 villages and urban

blocks. In these villages and urban blocks,

the enumerators selected 1,68,665

unregistered SSI units for survey, but they

could actually survey 1,67,665 units.

! The size of the unregistered SSI sector

is estimated to be 91,46,216. Of these,

only 38.75 % were SSIs and the rest were

SSSBEs.

! The reasons for non-registration were

elicited in the Third Census. Interestingly,

53.13 % of the units informed that they

were not aware of the provision for

registration, while 39.86 % of the units

indicated that they were not interested.

! About 45.38 % of the units were engaged

in Services while 36.12 % were engaged

in manufacturing and the rest of the 18.5

% in repair/ maintenance.

! Maximum number of unregistered SSI

units (16.89 %) were located in Uttar

Pradesh. The other States having very

high concentration of unregistered SSI

units were Andhra Pradesh, West Bengal,

Maharashtra, Madhya Pradesh, Tamil

Nadu, Karnataka, Bihar, Rajasthan and

Gujarat.

! 96.9 % of the units were proprietary units

and about 1.13 % of the units were

partnership units.

! The average employment was 2.05 and

the employment generated per one lakh

fixed investment was 3 persons.

! About 10.13 % of the units were women

enterprises and 57 % of the units were

managed by socially backward classes.

Total SSI sector

! The size of the total SSI sector is estimated

to be over one crore (1,05,21,190). About

28

42.26 % of these units were SSIs and the

rest were SSSBEs. The number of

ancillaries among SSIs were 2.98 %.

! About 47.22 % of the units were located

in Uttar Pradesh, Andhra Pradesh,

Maharashtra, Madhya Pradesh and Tamil

Nadu.

! The Services Sector emerged as the

dominant component in the Total SSI

Sector with a share of 44 % of the units.

! Although registration is voluntary in the

SSI sector, the registered SSI sector was

found to be the cream of the total SSI

sector. In terms of size, it was only 13 %,

but in terms of investment its share was

59 % and it contributed to 59 % of the

total production.

! About 95.8 % of the units were of

proprietary type of ownership. Entre-

preneurs belonging to socially backward

classes managed about 56 % of the units.

! The number of women enterprises was

10.11 %. The number of enterprises

actually managed by women was 9.46 %.

! The number of women employees was

of the order of 13.31 %. The employees

belonging to socially backward classes

numbered 57.45 %.

32.0 RESEARCH INSTITUTIONS

Electronics Service & Training Centre(ESTC), Ramnagar, Uttaranchal

Electronics Service & Training Centre

(ESTC) was set up with UNDP assistance as

a Government of India Society under the

Societies Registration Act 1860 in April, 1986.

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.

Significant Work done : (i) Setting up training

facilities in the field of HF cable and fibre optics

technology and Bio- Medical equipment; (ii)

Software development for the institutes under

SIDO; (iii) Developed Motor Speed Ratio meter;

and (iv) The training modules are designed as

per the need of the industry with more emphasis

on hand on training.

33.0 CENTRE FOR THE DEVE-LOPMENT OF GLASSINDUSTRY, FIROZABAD

Centre for the Development of Glass

Industry was established by Government of

India with the assistance of UNDP and active

support of Government of Uttar Pradesh to

promote and modernize glass industry by way

of upgrading the conventional technologies

presently in use and transfer of modern

technology. 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,

auxiliary furnaces, introduction of new type of

glasses and their standardization,

environmental protection and to introduce

29

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 : (i) Developed and

constructed a fuel efficient Pot Arch Furnace;

(ii) Erected an electric operated Rounder

Furnace for making small solid glass beads

of size 0.5 mm diameter; (iii) Construction of

pot arch and development of Pot Transfer

Trolley; (iv) Achieved fuel saving by way of

modification in conventional 12 pot furnace

and by way of insulation of crown and damper

to the extent of 300 NM and 500 NM

respectively; and (v) Helped the glass

industry in monitoring the ambient air quality

and flew gas ana-lysis of the furnaces stack

for suggesting better combustion control

practices.

34.0 PRODUCT-CUM PROCESSDEVELOPMENT CENTREMEERUT

PPDC (Sports Goods & Leisure time

equipments), Meerut was set up in 1984 as a

Govt. of India Society with UNDP assistance

mainly to cater the technical need of sports

goods industry in the country. The institute aims

at upgradation as well as improvement in

existing technology, quality control, in house

R&D activities and providing workshop and

testing facilities to the sports goods and allied

industry.

Major activities during the year 2004-2005

!!!!! Training: The Centre has organised five

training courses on Sports Goods manu-

facturing at Meerut (U.P.), Srinagar (J&K) &

Jalandhar (Punjab). 77 candidates participated

in these training courses.

!!!!! Seminar: A get-together with industrial

units was organized on September 25, 2004

at PPDC, Meerut with a view to familiarize

industry members with the latest common

facilities of the Centre. 92 participants attended

the programme.

!!!!! R&D Activities : The following R&D

activities are under process:

- New Type Clicking Press (Prototype).

- Cricket Ball Panel Hole Piercing Machine

(Prototype) before stitching.

- Cricket Ball Leather by Alum Combination

tanning.

!!!!! Survey/Study Report : Presentation

Programme of Study Report for Sports Goods

Cluster at Jalandhar, prepared for UNIDO was

conducted on August 25, 2004 .112 members

of the sports goods industry attended the

programme.

!!!!! Branch PPDC, Jammu: With a view to

activate the Br. PPDC, Jammu, two machines

and other equipment have been installed and

action for installation of electric connection of

10 KVA is under process.

30

!!!!! Other activities : The vehicle is provided

to collect and eliver the job work at the site of

unit to attract the job works and to facilitate

the units.

35.0 PROCESS & PRODUCTDEVELOPMENT CENTRE,AGRA

The Process & Product Development

Centre, Agra, a National level Centre, was

established by Govt. of India with the support

of Govt. of UP and assistance of UNDP/UNIDO

to provide requisite technical inputs for

technological upgradation specially in forging

and casting industry in small scale sector to

build up their image among the entrepreneurs

and instil confidence among them. The Centre

also extends consultancy and training facilities

to improve and update skill and knowledge of

manpower of various levels of the small scale

units.

Sl. Name of the Section No. of Jobs No. of units RevenueNo. attended benefited earned (Rs.)

1. Leather Processing Workshop 62 24 40,592.00

2. Mechanical Workshop 76 29 6,11,856.00

3. Wood Workshop 147 37 74,721.00

4. Rubber/Plastic Workshop 1 1 6,500.00

5. Testing Lab 105 26 2,50,168.00

6. Training - - 2,000.00

Total 391 117 9,85,837.00

Section-wise details of Common Facility & Testing Services - PPDC, Meerut

amount of Rs.110 lakhs has been sanctioned

for establishing a common facility centre at

PAREB for improving the above cluster of

industries. All efforts are being made by

PPDC Agra to standardize low cost gas fired

cupola.

35.2 International Cooperation : A MOU has

been signed during May 2004 with CTI Louise

Bergers Group as a technical collaborator in

the area of combustion engineering for the

development of low cost gas fired cupola

furnace.

35.3 Special Programme for Women :

Computer operator and programming

assistance course has been started by the

Centre giving special preference to women

35.1 Special work done : PPDC, Agra has

conducted a diagnostic study and made a report

of PAREB Cluster of Brass utensils

manufacturing units. In this connection, an

31

candidates. 15 women candidates are

undergoing training in it.

35.4 Assistance to SSIs : 94 small scale units

have been assisted in the area of development

of cast and forged components, cupola energy

conservation, pollution control, emission testing

of cupola, material testing, rejection control etc.

36.0 FRAGRANCE & FLAVOURDEVELOPMENT CENTRE,KANNAUJ (U.P.)

FFDC is the only center of its kind in the

country which is catering to the needs of the small

scale sector in the field of quality upgradation

and providing common facilities services for the

processing of essential oils, creation of fragrance

& flavours etc. to the small scale sector as also

assistance to the farmers in improving

agronomical practices for cultivation of aromatic

plants. The Centre is presently providing

following services:

! Quality Assessment and standardization.

! Creation of fragrance and flavors.

! Processing technology.

! Agro technology extension services.

! Information, documentation and training

in the various facets of essential oil

industry including value addition.

36.1 In order to broaden the activities of the

centre and extend the facilities & services to

the other parts of the country, a cluster approach

has been adopted for the development of

aromatic & medicinal plants and Neem based

products under Mission for Millennium-2000

programme nominating FFDC as an

implementing agency. The locations of these

clusters are Neem products at Jhalawar

(Rajasthan), Mint & other essential oils at Patna

(Bihar), Vetiver at Dhaulpur (Rajasthan), Kewra

at Berhampur (Orissa) and Geranium at

Bhowali (Uttranchal).

36.2 It is estimated with the setting up of

these 5 clusters during the Tenth Five Year

Plan, an additional 50,000 hectares of land

would be brought under cult ivation of

Aromatic plants and Neem resulting in setting

up of at least 5000 distillation units near

plantation area and creation of additional 2

lakh job opportunities both in farm and

industrial sector.

37.0 INSTITUTE FOR DESIGN OFELECTRICAL MEASURINGINSTRUMENTS (IDEMI),MUMBAI

IDEMI was set up in collaboration with

UNDP as a Government of India Society under

the Societies Registration Act 1860, in the year

1969. The Institute renders calibration and

electric measuring instruments testing

facilities, technical consultancy in design

development and proto-type fabrication and

conducts training course in the filed of

instrumentation. IDEMI has rendered excellent

service to the Industry during the last 35 Years

and the Institute has earned a name amongst

the Instruments Manufacturers, its users and

Govt. Organizations.

32

Significant Work done

! IDEMI, Mumbai has completed Nozzle

Block/ Rotor Shaft for ISRO. This has

been first time indigenized by IDEMI,

Mumbai and has received the

appreciation from ISRO.

! Fibre Optics testing and training facility

being added.

! Energy Meter type testing facility being

added.

! The facilities at laboratories and work

shops has been upgraded to keep pace

with the latest technological develop-

ment.

! The training modules are designed as per

the need of the industry with more

emphasis on hand on training.

38.0 CENTRAL INSTITUTE OFTOOL DESIGN, HYDERABAD

Central Institute of Tool Design,

Hyderabad was established in the year 1968

by Govt. of India with the assistance of UNDP/

ILO. It was the first institute of its kind in the

country. The original investment of the institute

was Rs.2.37 crore. The aim of the institute was

to fulfill the tooling and training needs of small

scale industries in the field of tool design and

manufacturing.

Significant work done

! The tool room has achieved ISO 9001-

2000 certificate.

! The institute has developed import

substitute tools for Research Centres,

Imarat (a DRDO establishment)

! The institute has conducted international

training programmes under various

bilateral agreements such as ITEC, TCS

Colombo Plan, and Aid to Sri Lanka etc.

! The facilities at the tool room has been

upgraded to keep pace with the latest

technological developments

The training modules are designed as per

the need of the industry with more emphasis

on hands on training

39.0 CENTRAL FOOTWEAR TRAI-NING INSTITUTE, CHENNAI

The Central Footwear Training Institute

(CFTI), Chennai, a Govt. of India Society is a

pioneer Institution, rendering various types of

training programmes on footwear technology

and allied subjects.

Information Dissemination : The institute

provides the information on the Footwear

Industry, Technology and Trade through its well

equipped Library that contains numerous books

and periodicals.

40.0 CENTRAL FOOTWEAR TRAI-NING INSTITUTE, AGRA

The Institute holds affiliation with the

most prestigious Textile Institute, U.K. and also

recognized by AICTE for its Two Years

Diploma Course in “Footwear Design &

33

Production Technology”. The major activities

of the Institute are:

! To train personnel in footwear technology

for the fresher and for personnel already

engaged in this field,

! To develop products & design with a view

to secure advantage in export production,

! To provide training & research facilities to

trainers in the footwear and allied

industries with a view to upgrade their skill,

! To provide consultancy services for small

scale units in the field of footwear industry

and,

! To promote acquisition of International

Standards in footwear industry.

Sl. Particulars 2003-04 2004-05 2004-05No. (Actual) (Upto (Anticipated for

Dec.’04) remaining Periodof 2004-05)

1 No. of training courses (long term) 5 5 1

2 No. of training courses (short term) 4 6 6

3 No. of trainees 386 470 250

4 No. of units benefited 51 72 20

5 No. of Job undertaken 101 302 100

6 Revenue Generated (Rs. in lakhs) 59.33 48.38 43.50

7 Recurring Expenditure (Rs. in Lakhs) 58.88 45.57 40.60

8 % Recovery 101% 90.90% 107%

Physical Target & Achievements of CFTI, Chennai

Actual & Anticipated Achievements of CFTI, Agra

Sl. Particulars Actual Anticipated forNo. (Upto Dec.,04) remaining months

of 2004-05

1. No. of Training Courses(Long Term) 02 02

2. No. of Training Courses (Short Term) 06 03

3. No. of trainees trained/passedout 214/88 160/120

4. No. of unit benefited 87 76

5. No. of Job undertaken 1250 622

6. Revenue Generated (Rs. in Lacs) 59.44 25.66

7. Recurring Expenditure (Rs. in Lacs) 35.51 24.49

8. % of Recovery 129.89 104.77

34

41.0 TOOL ROOMS

41.1 Central Tool Room & TrainingCentre, Kolkata

Central Tool Room & Training Centre,

Kolkata was established during 1977-78 under

technical co-operation programme between

Governments of India and Denmark to upgrade

technology and to consolidate the project.

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 : (i) The tool room has

achieved ISO 9001-2000 certificate; (ii)

Developed several toolings as import

substitution; (iii) The facilities at the tool room

has been upgraded to keep pace with the latest

technological developments; and (iv) The

training modules are designed as per the need

of the industry with more emphasis on hands

on training Nearly 100% placement has been

achieved for various long term trainees

41.3 Indo-German Tool Room,Ahmedabad

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 fulfill 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 : (i) The tool room has

achieved ISO 9001-2000 certificate; (ii) the tool

room has admitted a batch of 09 trainees from

South Africa for a 1-year Course in the area of

tool and die making; (iii) developed several

Coordinate measuring machine in the Inspection Wing ofCentral Tool Room & Training Centre, Kolkata

Significant work done (i) The tool room has

achieved ISO 9001:2000 certificate; (ii) Deve-

loped several toolings as import substitution;

(iii) The facilities at the tool room have been

upgraded to keep pace with the latest technolo-

gical developments and (iv) The training modu-

les are designed as per the need of the industry

with more emphasis on hands on training

41.2 Central Tool Room, Ludhiana

Central Tool Room, Ludhiana was

established by Govt. of India in technical

collaboration with Govt. of Federal Republic of

35

toolings as import substitution; (iv) the facilities

at the tool room has been upgraded to keep

pace with the latest technological develop-

ments; and (v) the training modules are

designed as per the need of the industry with

more emphasis on hands on training.

41.4 Indo-German Tool Room,Aurangabad

Indo-German Tool Room, 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 fulfill 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 : (i) the tool room has

achieved ISO 9001-2000 certificate; (ii) the tool

room has admitted a batch of 09 trainees from

South Africa for a 1-year Course in the area

of tool and die making; (iii) to provide access

to tool room facilities to SSIs located in other

areas, the tool room has opened sub-centres

at Pune and Mumbai; (iv) developed several

toolings as import substitution; (v) the tool room

is taking steps to develop e-learning/e-teaching

practices in tool and die technology; (vi) the

facilities at the tool room has been upgraded to

keep pace with the latest technological

developments; (vii) the training modules are

designed as per the need of the industry with

more emphasis on hands on training; and (viii)

nearly 100% placement for the long term

trainees has been achieved

41.5 Indo German Tool Room, Indore

Indo-German Tool Room, Indore was

established by Government of India in 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 fulfill 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 : (i) the tool room has

achieved ISO 9001-2000 certificate; (ii)

developed several toolings as import

substitution; (iii) the facilities at the tool room

has been upgraded to keep pace with the latest

technological developments; (iv) the training

modules are designed as per the need of the

industry with more emphasis on hands on

training; and (v) nearly 100% placement has

been achieved for various long term trainees.

Convocation ceremony of Diploma in Tool and Die makingstudents of IGTR, Ahmedabad

36

41.6 Central Tool Room & TrainingCentre, 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 : (i) the tool room has

achieved ISO 9001-2000 certificate; (ii) the tool

room has got ISO 14001:1996 Certification; (iii)

the tool room has assembled first lot of

assemblies for Light Combat Aircraft (LCA)–

Tejas for Aeronautical Development Authority;

(iv) developed several toolings as import

substitution; (v) the tool room is taking steps to

develop e-learning/e-teaching practices in tool

and die technology; (vi) the facilities at the tool

room has been upgraded to keep pace with the

latest technological developments; (vii) the

training modules are designed as per the need

of the industry with more emphasis on hands

on training; (viii) nearly 100% placement for the

long term trainees has been achieved; and (ix)

the tool room has trained 291 women trainees

in their different short term CAD/CAM courses.

41.7 Indo Danish Tool Room,Jamshedpur

Indo Danish Tool Room, (formerly Central

Tool Room & Training Centre), Jamshedpur has

been set up in the year 1991 under Technical

Co-operation Programme between Government

of India and Government of Denmark.

Significant work done: (i) the tool room has

achieved ISO 9001-2000 certificate; (ii)

developed several toolings as import

substitution; (iii) the facilities at the tool room

has been upgraded to keep pace with the

latest technological developments; (iv) the

tool room has introduced 6-months course on

Metrology exclusively for the girls; (v) the

training modules are designed as per the

need of the industry with more emphasis on

hands on training; and (vi) nearly 100%

placement has been achieved for various long

term trainees.

Visit of Chairman/AS & DC (SSI) to IDTR Jamshedpur(Production Section)

Visit of Chairman/AS & DC (SSI) to IDTR Jamshedpur(Training Section)

37

41.8 Central Institute of Hand Tool,Jalandhar

The hand tools industry consists of

organized small scale and cottage sector which

has undergone a rapid expansion in the country.

About 80% of hand tool industry is located in

and round Jalandhar in Punjab, Nagaur in

Rajasthan, Puralia in West Bengal and Tumkur

in Karnataka. The hand tool industry is playing

a vital role in the economic development and

earning valuable foreign exchange for the

country.

With a view to upgrade the hand tool

technology in the country and to provide the

necessary technology support services, the

Government of India set up the Central Institute

of Hand Tools as a National Institute at

Jalandhar in the State of Punjab as autonomous

organization with the assistance of UNIDO in

the year 1983.

Significant work done : (i) the tool room has

achieved ISO 9001-2000 certificate; (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

Institute has been identified for capacity building

of the institute under National Programme for

promoting energy efficiency in Hand Tool SSI

Sector in India, a programme launched by

Ministry of SSI, Govt. of India jointly with

UNIDO, Hand Tool Industries Association &

SIDBI.

41.9 Hand Tool Design Developmentand Training Centre, Nagaur

The Hand Tool Design Development

and Training Centre, Naguar was 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 and 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. Centre is 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 up

gradation of quality of production and trained

manpower.

Significant work done : The Institute has been

identified for capacity building under National

Programme for promoting energy efficiency in

Hand Tool SSI Sector in India, a programme

launched by Ministry of SSI, Govt. of India jointly

with UNIDO, Hand Tool Industries Association

and SIDBI.

41.10 Tool Room & Training Centre,Guwahati

In order to create facilities for

manufacturing of tools & dies and for training

in tool & die making in the North Eastern region,

a Tool Room & Training Centre (TRTC) is being

38

established at Guwahati at an estimated cost

of Rs. 13.28 crore. The tool room has since

been registered as a Society under the

Societies Registration Act. Land and building

for this scheme has been provided by the State

Government of Assam. Training activities of the

centre have been started for the time being at

SISI, Guwahati campus. During the year, the

tool room has conducted 09 short term courses

in which 62 trainees were trained. The tool room

is also conducting a two-year Machinist course

in which 20 trainees are enrolled.

42.0 CONFERENCE OF MINI-STERS (SSI/KVI/COIR) OFSTATES/UTS

A conference of Ministers (SSI/KVI/COIR)

was organized on 25th June 2004 at New Delhi

to review major schemes of the sector, parti-

cularly those which are implemented at the

State/UT level or those which require special

initiatives on the part of the State/U.T. Govern-

ments. In addition, views and suggestions of the

States/UTs were sought to carve out a roadmap

for the successful implementation of the

National Common Minimum Programme of the

Government, specifically for the small scale

industries and agro and rural industries

including Khadi and village industries of the

country and to make them more competitive and

ensure their growth and development.

43.0 INDUSTRIAL MOTIVATIONCAMPAIGNS (IMC)

SIDO conducts Industrial Motivation

Campaigns (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 and to lead them

towards self-employment. Upto Dec.04 about

250 IMCs have been conducted benefited

30,000 prospective entrepreneurs and about

260 IMCs are expected to be conducted during

remaining months of the financial year for

benefiting about 30,000 entrepreneurs.

44.0 BIOTECHNOLOGY

Advances in biotechnology have had an

overwhelming impact on the society.

Biotechnology holds great promise in meeting

the needs of the growing population for

innovative medicines, higher productivity in

agriculture and value addition including

nutritional enhancement and protection of

environment. Considering the importance of

the sector from an industrial point of view,

Government has recognized biotechnology as

a thrust area. While initial efforts have been

made by the Department of Biotechnology, now

the Ministry of SSI has taken-up the task of

encouraging biotechnology in the SSI sector.

Accordingly, a Biotechnology Cell has been

created in the Ministry of SSI to deal with the

matter for the development and promotion of

biotechnology in the small scale sector. To

disseminate information on the use of

biotechnology, a number of sensitization

programmes on biotechnology in various parts

of the country are being organized in

collaboration with the Department of

Biotechnology, Biotech Consortium India

Limited (BCIL), and various State Government

agencies.

39

During the year 2004-05, 20 one day

sensitization programmes on Biotechnology

have been proposed to be held at various parts

of the country. Out of which four programmes

have already been conducted including a five

days training programme on Hi-Tech Business

Opportunities in Biotech Sector held at

Ludhiana during 20 – 24th Sept. 2004. It is also

proposed to organize two days seminar on IPR

related issues on Biotechnology at Bangalore

on January, 2005.

To assist SSI 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 BCIL), New

Delhi.

45.0 MARKETING ASSISTANCEAND EXPORT PROMOTION

45.1 Participation in the Overseas TradeFairs

The Office of the Development

Commissioner (SSI) has participated in Poznan

Fashion Week (Poland) (Sept. 7–9, 2004), 69th

Thessaloniki Fair, Greece (Sept. 11 –19, 2004),

Aapex Show, Las Vegas (USA) (Nov. 2 – 5,

2004) and Bahrain Fair, Manama (Bahrain)

(Nov. 28– Dec. 7, 2004) and exhibits of 84 SSI

units were displayed. Exhibits from 100 SSI

units are anticipated to be displayed in the

remaining five International Trade Fairs under

SIDO stall during the current financial year.

45.2 Training Programme on Packagingfor Exports

One training programme was organized

by SISI, Goa in which 75 SSIs participated. 23

programmes have been lined up with SISIs and

these programmes will be conducted in

association with Indian Institute of Packaging

during the current financial year.

45.3 SSI-Marketing DevelopmentAssistance Scheme

Rs. 4.12 lakhs have been reimbursed to

28 SSI units for adoption of Bar Code Certificate

from EAN India and Rs. 1.00 lakh released to

FISME, New Delhi for printing of 2000 copies

of the study “WTO Negotiations and SSIs” by

FISME & RIS. More than 70 SSI units are

anticipated to avail the financial assistance for

adoption of Bar Code Certificate during the

current financial year.

45.4 Index of Industrial Production (IIP)for SSI sector

The objective of IIP is to estimate the

growth in production of SSI sector. It is compiled

on a quarterly basis. At present this division is

working out the growth in production through

Index of Industrial Production (IIP) with the base

year 1970. The IIP is constructed based on a

basket of 356 items contributing 77% of

production as per the First Census. This data

is collected from2400 units having an annual

production of Rs. one crore.

45.5 As a follow up of the Third Census it has

been decided to change the base year from

40

1970 to 2001-02 and also to select a new basket

so as to make the IIP more representative.

Accordingly, at All India level, a basket of 468

items covering 24,749 industrial units have been

selected. These items contribute about 75.5%

of the production of the SSI Sector.

45.6 Directorate of Industries of all the States/

UTs have been requested for collecting base

year production data and subsequent monthly

data from April 1, 2002 onwards. After receiving

the data with the new base year, the revised

index with base year 2001-02 will be released.

45.7 Updation of Frame and analysis ofRegistration Data

The registration of the SSI units is done

by the State/UT Directorates at DIC level. The

registration records contain valuable information

and are analyzed to estimate growth of small-

scale sector in terms of number of units and

employment at various levels like states/districts

and industrial groups.

The frame is the database of the units

registered with the State Directorate of

Industries (DIs). The frame up to March 31,

2001 has been updated. For further updation

of the frame after Third Census, the Director of

Industries have been asked to remove those

units found closed in the Third Census and also

to send frame updated up to March 31, 2005.

46.0 SEPTI TIRUVALLA

The Small Entrepreneurs Promotion and

Training Institute Tiruvalla was setup during

1994 with the objective to provide employment

opportunities in rural as well as urban areas

through setting up of micro enterprise, and

proper training for sharpening the technical skill

and encouraging the managerial talent in

entrepreneurs.

SEPTI Tiruvalla was set up as 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. As a result

of good training an average of 25 % of the

trainees of this institute succeeded 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 2004-05, SEPTI Tiruvalla has

earned an amount of Rs. 10.14 lakh through

EDPs.

47.0 SEPTI ETTUMANUR

Known earlier as Production Centre

Ettumanur, was converted into Small

Entrepreneur Promotion and Training Institute

in 2000 for imparting training to artisans/

entrepreneurs of Kerala in various disciplines

as per the need of the area. The Institute

constantly identified and reviewed the new

emerging trades having quick employment

potential, developed appropriate curricula

focusing on end job profiles. The courses

comprises of artisan trade, management, IT

software, computer hardware and other

emerging technologies including bio-technology

etc. During 2004-05 this institute has earned

Rs. 24.69 lakh through different.EDPs.

41

Chapter III

CREDIT AND FISCAL CONCESSIONTO SSI SECTOR

1.0 The credit is one of the critical inputs for

the promotion and development of small scale

industries. To ensure timely and adequate credit

to the SSI sector the Government is

implementing several schemes. The existing

components of the credit policy for small scale

industries are stated below:

1.1 Priority Sector Lending : Credit to the

small scale sector is ensured as part of the

priority sector lending by banks.

1.2 Institutional Arrangement : Small

Industries Development Bank of India (SIDBI)

is the apex refinance bank. Term loans are

provided by State Financial Corporations

(SFCs), Scheduled Commercial Banks and

Small Industries Development Corporations

(SIDCs). Credit in direct/ indirect forms is also

undertaken to some extent by NABARD, NSIC

etc.

Measures for improving flow of credit to

SSI sector through announcement made in

Union Budget and comprehensive policy

package are as under:

1.3 Collateral security dispensed with for

loans up to Rs. 5 lakh: Exemption limit for

dispensing with requirements of collateral

(Amount Rs. crore)

As at the end of March

2000 2001 2002 2003 2004 (P)

Net Bank Credit 2,92,943 3,40,888 3,96,954 4,77,899 5,58,608

Credit to SSI 45,788 48,445 49,743 52,988 58,277

No. of SSI Accounts 22.72 22.80 22.23 16. 95 16.33

(in lakh)

SSI Credit as 15.6 14.2 12.5 11.1 10.1

percentage of

Net Bank Credit

(P): Provisional

Flow of Credit to SSI Sector from all Public Sector Banks since 2000

42

securities has been raised to Rs. 5 lakh for both

tiny and SSI units. Further, the RBI has advised

the banks that they may, on the basis of good

track record and financial position of the units,

increase the limit of dispensation of collateral

requirement for loans upto Rs.25 lakh.

1.4 Composite Loan Scheme limit

enhanced to Rs. 50 lakh : The existing

Composite Loan Scheme of banks helps small

borrowers by providing working capital and term

loans through a single window. To promote

credit flow to small borrowers, the composite

loan limit has been increased from Rs.50 lakh

to Rs.1 crore.

1.5 NEF Scheme to cover projects up to

Rs. 50 lakh : As announced in the

Comprehensive Policy Package for SSIs, the

project cost ceiling under the National Equity

Fund (NEF) Scheme has been enhanced from

Rs.25 lakh to Rs.50 lakh. The extent of soft

loan assistance is 25% of the project cost

subject to a maximum of Rs. 10 lakh per

project.

1.6 Specialized SSI bank branch in each

district and SSI clusters : Banks have been

advised to open at least one Specialized SSI

branch in each district. Further, banks have

been permitted to categorise their general bank

branches having 60% or more of their advances

to SSI sector as Specialized SSI branches in

order to provide better service to this sector as

a whole. As at the end of March, 2004, 497

Specialized SSI Branches have been

operationalised.

1.7 Interest rate : As per the announcement

made by the Hon’ble Finance Minister in the

Union Budget 2003-04, Indian Banks’

Association (IBA) has advised the banks to

adopt the interest rate band of 2% above and

below their prime lending rates (PLRs) for

secured advances.

1.8 Small and Medium Enterprise (SME)

Fund : A Small and Medium Enterprises (SME)

Fund of Rs.10,000 crore has been set up under

SIDBI as per the announcements made by the

then Hon’ble Finance Minister on 9th January,

Status of Credit to Tiny Sector since 2000

(Amount Rs Crore)

At the end At the end At the end At the end At the endof March, of March of March, of March, of March,

2000 2001 2002 2003 2004 (P)

Net bank credit to 24,742 26,019 27,030 26,937 30,826

tiny sector

Tiny credit as 54.0 53.7 54.3 50.8 52.9

percentage of net

SSI credit

(P): Provisional

43

2004. The SME Fund would, inter-alia, address

the problem of inadequacy of financial

resources at competitive rates for the small

scale sector. The fund has been made

operational with effect from April 1, 2004.

1.9 Laghu Udyami Credit Cards : Laghu

Udyami Credit Card (LUCC) scheme has been

liberalized by enhancing the credit limit from

Rs.2 lakh to Rs.10 lakh, for borrowers who have

a satisfactory track record.

2.0 CREDIT GUARANTEE FUNDSCHEME FOR SMALLINDUSTRIES

The Government introduced the Credit

Guarantee Fund Scheme for Small Industries

in May, 2000 with the objective of making

available credit to SSI units, particularly tiny

units, for loans up to Rs. 10 lakh without

collateral/ third party guarantees. The scheme

is being operated by the Credit Guarantee Fund

Trust for Small Industries (CGTSI) set up jointly

by the Government of India and SIDBI. The loan

limit under the scheme, which was Rs. 10 lakh

per borrower, has been enhanced to Rs. 25 lakh

per borrower in terms of Comprehensive Policy

Package on SSI announced by the Hon’ble

Prime Minister on 30th August, 2000, when the

scheme was formally launched. Necessary

modifications have been carried out in the

indenture of the Trust to enable the CGTSI to

guarantee loans up to Rs. 25 lakh.

2.1 The scheme covers collateral free credit

facility (term loan and/ or working capital)

extended by eligible lending institutions to new

and existing SSI units/ Small Scale Service and

Business (Industry related) Enterprises

(SSSBEs) including Information Technology

and Software Industry upto Rs. 25 lakh per

borrowing unit. The guarantee cover would be

upto 75% of the credit subject to maximum

guarantee limit of Rs. 18.75 lakh. The lending

institutions availing guarantee from the Trust

have to pay one time guarantee fee of 2.5% of

the credit facility (comprising of term loan and/

or working capital) sanctioned by the lending

institution to the borrower and annual service

fee of 1% per annum on the outstanding loan

on 31st March of each year.

2.2 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, the Government decided to

continue the scheme beyond one year. The

corpus of CGTSI has been enhanced to Rs.

931.55 crore with the contribution of Rs. 745.24

crore from the GoI and Rs. 186.31 crore from

SIDBI.

2.3 As on December, 2004, 50 eligible

institutions comprising 27 Public Sector Banks,

12 Private Sector Banks, 8 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. As

44

regards progress of implementation, 19803

proposals were approved for guarantee cover

for aggregate credit of Rs. 395.50 crore.

3.0 FISCAL CONCESSIONS TOSSI SECTOR

3.1 General SSI Exemption Scheme :

Consequent upon the announcement of

Comprehensive Policy Package for SSI Sector

by the Prime Minister on 30th August,2000, full

excise exemption up to turnover of Rs. 100 lakh

per annum has been provided to SSI Sector

with effect from 1st September, 2000. Under the

General Excise Exemption Scheme, units

having turnover of less than Rs.3 crore, are

eligible for the excise exemption. The exemption

limit of Rs. 100 lakh is continuing in the current

fiscal given as under:

When Modvat benefit is availed

Value of clearances Rate of Duty

0-100 lakh Sixty per cent of

normal duty

Above 100 lakh Normal rate of duty

When Modvat benefit is not availed

Value of clearances Rate of Duty

0-100 lakh Nil

Above 100 lakh Normal rate of duty

Shaping a sole in mechanised process

3.2 Income Tax benefit to new SSI units :

Under Section 80-IB, the Small Scale unit

commencing production between 1st April, 1995

and 31st March, 2000 were allowed a deduction

of 25% of the profits (30% for companies) for a

period of 10 years. In the wake of liberalization

the SSI Sector needs fiscal support so that it

can withstand competition. Therefore, the

Finance Ministry amended Section 80-IB in

Union Budget 2000-01 to provide continuous

concessions to SSI units commencing

production even after 31st March, 2000. Units

set-up on or before 31-3-2002 shall be eligible

for the benefit.

45

4.0 NEW FISCAL INCENTIVESANNOUNCED IN THEBUDGET 2004-05

4.1 Direct Taxes : In order to promote agro-

processing industries, 100 per cent deduction

of profits for 5 years and 25 per cent of profits

for the next 5 years will be allowed in the case

of new agro-processing industries set up to

process, preserve and package fruits and

vegetables.

4.2 Excise Duty : (i) General SSI Excise

Exemption Scheme has been extended to

watches, upto MRP of Rs. 500; (i) excise duty

on steel has been enhanced from 8 per cent to

12 per cent. Excise duty on Hand tools such as

spades, shovels, sickles etc has been

exempted; (ii) in order to protect matches made

in the non-mechanised sector, excise duty on

matches made in the mechanized/semi-

mechanised sector has been increased from 8

per cent (without Cenvat credit) to 16 per cent

(with Cenvat credit); (iii) mandatory Cenvat duty

has been withdrawn from Handloom and

Powerloom sectors; (iv) excise duty on gas

stoves of Retail Sale Price (RSP) not exceeding

Rs. 2000 per unit has been reduced from 16%

to 8%; and (v) RSP limit for availing excise duty

exemption on footwear has been raised from

Rs.125 to Rs. 250 per pair.

4.3 Customs Duties : Customs duty has

been reduced on non-alloy steel from 15 per

cent to 10 per cent. Peak rate of customs duty

on alloy steel, copper, lead, zinc and base

metals has been reduced to 15 per cent.

5.0 CREDIT LINKED CAPITALSUBSIDY SCHEME (CLCSS)

A scheme on Credit Linked Capital

Subsidy (CLCSS) was launched in the year

2000. The purpose of the scheme is to facilitate

technology upgradation of SSI units in the

specified products/sub sectors by providing

12% capital subsidy for induction of proven

technologies approved under the Scheme.

5.1 Technology Upgradation under the

scheme would mean a significant step up from

the present technology level to a substantially

higher one involving improved productivity and

/or improvement in the quality of products and /

or improved environmental conditions including

work involvement for the unit. This will also

include installation of improved packaging

techniques, anti pollution measures, energy

conservation machinery, on line quality control

equipments and in house testing facilities.

5.2 Thirty nine sub sectors have been

approved under the scheme eligible for

assistance which comprises nine sub-sectors/

products included during 2003-04 and another

nine till December during 2004-05. The well-

established and improved technologies for each

sub-sector have been identified for which

subsidy is available. The scope of scheme is

gradually being widened by adding new sub-

sectors and new technologies under the

scheme for assistance. Nine sub-sectors and

eleven new technologies have been included

under the scheme during 2004-05 till

December.

46

5.3 At present, the following products/sub –

sectors have been covered under the Scheme:-

a) During 2002-03 : (i) Leather and Leather

Products including Footwear and Garments; (ii)

Food processing (including Ice Cream

manufacturing); (iii) Information Technology

(Hardware); (iv) drugs and Pharmaceuticals; (v)

Auto Parts and Components; (vi) Electronic

Industry particularly relating to design and

measuring; (vii) Glass and Ceramic Items

including Tiles; (viii) Dyes and Intermediates;

(ix) Toys; (x) Rubber Processing including

Cycle/ Rickshaw Tyres; (xi) Forging & Hand

Tools; (xii) Bicycle Parts; (xiii) Foundries–Steel

and Cast Iron; (xiv) Dimensional Stone Industry

(excluding quarrying and mining); (xv) Industry

based on Medicinal and Aromatic plants; (xvi)

Combustion Devices / appliances; (xvii) Gold

Plating and Jewellery; (xviii) Common Effluent

Treatment Plant; (xix) Bio tech Industry; (xx)

Plastic Moulded/ Extruded Products and Parts/

Components; and (xxi) Corrugated Boxes.

b) During 2003-04: (xxii) General

Engineering Works; (xxiii) Poultry Hatchery &

Cattle Feed Industry; (xxiv) Fans & Motors

Industry; (xxv) Transformer/Coils/Chokes

including solenoid coils; (xxvi) Mineral Filled

Sheathed Heating Element; (xxvii) Wires &

Cable Industry; (xxviii) General Light Service

(GLS); (xxix) Steel Furniture; and (xxx) Toys;

c) During 2004-05 (till December) : (xxxi)

Non-Ferrous Foundry; (xxxii) Sport Goods;

(xxxiii) Cosmetics; (xxxiv) Readymade

Garments; (xxxv) Wooden Furniture; (xxxvi)

Mineral Water Bottle; (xxxvii) Paints; (xxxviii)

Agricultural Implements and Post Harvest

Equipments; and (xxxix) Beneficiation of

Graphite and Phosphate.

5.4 Small Industries Development Bank of

India (SIDBI) and National Bank for Agriculture

and Rural Development (NABARD) act as the

Nodal Agencies which in turn operate through

eligible Scheduled Commercial Banks, eligible

State Financial Corporations, eligible Coope-

rative Banks (other than Urban Cooperative

Banks), eligible Regional Rural Banks, National

Small Industries Corp. (NSIC) and North

Eastern Development Financial Institution for

making available subsidy to small scale units.

5.5 The scheme is monitored by Governing

and Technology Approval Board (GTAB). The

Secretary (SSI & ARI) is the Chairperson of the

Board and the Development Commissioner

(SSI) is its Member Secretary. The GTAB would

also periodically review the functioning of the

Scheme. There is a Technical Sub-Committee

under GTAB to consider inclusion of new sub-

sectors/products and Well-Established and

Improved Technologies under the Scheme.

Year No. of Subsidy disbursedunits to SSI units

(Rs. Lakh)

2001-02 9 21.36

2002-03 47 96.80

2003-04 150 374.89

2004-05 289 785.00(upto Dec., 04)

Total 495 1278.05

Financial performance year wise under CreditLinked Capital Subsidy Scheme (CLCSS)

47

including Sikkim, Bihar, Jharkhand, West

Bengal, Orissa, Madhya Pradesh, Chattisgarh,

Uttar Pradesh, Jammu & Kashmir, Rajasthan

and Uttaranchal. During the current FY 2004-

05, an amount of Rs. 1.00 crore has been

released towards ‘Portfolio Risk Fund’, thereby

enhancing the PRF to Rs. 1.25 crore.

7.0 SICKNESS IN SSI SECTOR

! Sickness was identified through the latest

definition of RBI given by Kohli committee

and incipient sickness was identified in

terms of continuous decline in gross

output.

! Sickness in the total SSI sector was of

the order of 1%, whereas in the registered

and unregistered SSI sectors it was 3.38

% and 0.64 % respectively.

! The maximum number of sick units was

located in West Bengal, Kerala,

Maharashtra, Karnataka and Andhra

Pradesh. About 59.53 % of the sick units

were located in these five States.

! Out of the units having loan outstanding

with institutional sources like banks and

financial institutions, sickness was about

6.0 MICRO FINANCE PRO-GRAMME

The Government has launched a

revised Scheme of Micro Finance Programme

in 2003-04. The scheme has been tied up with

the existing programme of SIDBI, which is

under operation since January, 1999, by way

of contributing towards security deposits

required from the MFIs/NGOs to get loan from

SIDBI. The salient features of the scheme are

as under:-

!!!!! Arranging Fixed Deposits for MFIs/

NGOs : The Government of India will provide

funds for Micro-Finance Programme to SIDBI,

which may be called ‘Portfolio Risk Fund’. This

fund would be used for security deposit

requirement of the loan amount from the MFIs/

NGOs and to meet the cost of interest loss. At

present SIDBI takes fixed deposit equal to 10%

of the loan amount. The share of MFIs/NGOs

would be 2.5% of the loan amount (i.e. 25% of

security deposit) and balance 7.5% (i.e. 75%

of security deposit) would be adjusted from the

funds provided by the Government of India.

!!!!! Training and Studies on Micro-Finance

Programme.

!!!!! Institution Building for ‘Intermediaries’

for identification of viable projects: An

amount of Rs. 25 lakh was released towards

‘Portfolio Risk Fund’, which has been fully

utilized by SIDBI. The funds under PRF are

utilized for extending loans in the hitherto

underserved States like North Eastern States

48

19.6 % in the registered SSI sector and

16.61 % in the case of unregistered SSI

sector. In the total SSI sector, this

percentage was 17.8.

! Incipient sickness identified in terms of

continuous decline in gross output was

11.5 % in the registered SSI sector and

6.48 % in the unregistered SSI sector.

In the total SSI sector, this percentage

was 7.4.

! Combining the three yardsticks used to

measure sickness, viz., (a) delay in

repayment of loan over one year, (b)

decline in net worth by 50 %, and (c)

decline in output in last three years, about

13.98 % of the units in the registered SSI

sector were identified to be either sick or

incipient sick, while this percentage was

only 6.89 in the case of unregistered units.

In the total SSI sector, this percentage

was 7.82.

! The States of Kerala, Tamil Nadu, Andhra

Pradesh, Karnataka, and Maharashtra

had maximum number of sick/ incipiently

sick SSI units. These five States together

accounted for 54.28 % of the sick/

incipiently sick SSI units in the country.

! ‘Lack of demand’ and ‘Shortage of

working capital’ were the main reasons

for sickness/ incipient sickness in both

the registered and unregistered SSI

sectors.

Reason for sickness/ Proportion of sick/ incipient sick units *

incipient sickness Total Regd. Unregd.

SSI Sector SSI sector SSI sector

1. Lack of demand 66 % 58 % 69 %

2. Shortage of working capital 46 % 57 % 43 %

3. Non-availability of raw material 12 % 12 % 12 %

4. Power shortage 13 % 17 % 12 %

5. Labour problems 5 % 6 % 4 %

6. Marketing problems 36 % 37 % 36 %

7. Equipment problems 11 % 9 % 12 %

8. Management problems 4 % 5 % 3 %

Various Reasons for Sickness/Incipient Sickness

49

Chapter IV

NATIONAL SMALL INDUSTRIESCORPORATION (NSIC) LTD.

1.0 NSIC, an ISO 9001:2000 company since

May, 2003 has been striving to fulfill its mission

of promoting, aiding and fostering the growth

of small scale industries and industry related

small scale service / business enterprises since

1955. Over a period of five decades of transition,

growth and development, NSIC has proved its

strength within the country and abroad by

rendering marketing, technology and credit

support to small industries as well as by

strengthening linkages with large and medium

enterprises and exports of projects and products

from small scale enterprises. NSIC is the only

ISO 9001 certified facilitator in the country and

amongst a select few globally.

2.0 ORGANIZATIONAL SET-UP

The Corporation is manned by a team of

professionals at different levels of functioning.

NSIC delivers its assistance through:

!!!!! 6 Zonal offices located at Mumbai,

Chennai, Kolkata, Hyderabad, Delhi and

Noida.

!!!!! 26 Branch Offices and 15 Sub-Offices for

cluster development dispersed in

different states.

!!!!! 5 Technical Service Centres located at

Chennai, Howrah, Hyderabad, Okhla and

Rajkot.

!!!!! 3 Technical Service Extension Centres

located at Aligarh, Rajpura and Guwahati.

!!!!! 2 Offices outside India–one at Dubai

(UAE) and the other at Johannesburg

(South Africa).

!!!!! 2 Software Technology Parks–one at

Okhla, New Delhi and the other at

Chennai.

3.0 SCHEMES FOR ASSISTANCETO SSIs

3.1 For Marketing

! Consortia Marketing & Brand Building

Formation of consortia of small

enterprises in specific product groups is

encouraged to enable the small enterprises to

be competitive and to integrate their capacities.

The Corporation explores markets and secures

bulk orders, which are farmed out to small units

in accordance with their production capacity.

Testing facilities are also being provided to

50

enable the units to improve and maintain the

quality of their products.

! Government Stores Purchase

Programme

The Government gives emphasis on

purchase of various items from small-scale

industries. Preferential purchase policy has

been introduced and the Corporation has been

designated as the “Nodal Agency” to promote

marketing of small industry products to the

Government. The Corporation is continuously

trying to enlarge the number of units

participating in the Government Stores

Purchase Programme. The NSIC registered

units have an added advantage, they are not

only recognized at par with the units directly

registered with DGS&D but they also need no

further registration with other government

departments as well as Public Sector

Undertakings. Further the enlisted units are

also not required to pay any earnest money or

security deposits for participating in tenders

under this scheme. The data pertaining to the

Government Purchase registered units has

been fully computerized and a directory of units

enlisted under the programme is published

periodically.

!!!!! Raw Material Assistance

Making available, the right type of raw

material at an appropriate price in time, not only

enhances the competitive capacity of small units

but also arrests sickness of the units. Keeping

this in view, the Corporation through its

distribution system has been supplementing the

availability of raw materials to a large number

of small industries, all over the country.

!!!!! Special Arrangement with National

Aluminium Company Limited

(NALCO)

In order to facilitate the SSI units in

procurement of Aluminium at a competitive

price, the Corporation has entered into an

Memorandum of Understanding with National

Aluminium Company. Under this arrangement,

the Corporation is getting volume based

quantity and other discounts, on all India basis

and a part of the same is passed on to the small

scale units, to reduce their cost of raw materials

and make the finished products more

competitively priced.

!!!!! Allocation of Steel

As a new initiative, NSIC is pursuing with

Ministry of Steel for allocation of Iron and Steel

for distribution to SSI units in selected States.

!!!!! Export

The Corporation continued its efforts for

facilitating exports from small industries by

undertaking the following measures:

- Identifying international market oppor-

tunities for the products manufactured in

the small scale units.

- Show casing the SSI products effectively

at different international fora and

exhibitions.

51

- Counselling on market intelligence and

providing technology upgradation

support.

!!!!! Trade Fairs and Exhibitions

To showcase the competencies of Indian

SSIs and to capture market opportunities, NSIC

participates in select international and national

exhibitions & trade fairs. NSIC facilitates the

participation of small scale units in these fairs.

!!!!! Techmart India 2004 (14-27 November,

2004)

NSIC organized Techmart India’2004, the

12th International Technology Fair coinciding

with India International Trade Fair at Pragati

Maidan, New Delhi. The event was sponsored

by the Ministry of SSI, Government of India.

Techmart India’2004 was inaugurated by

Hon’ble Minister for Small Scale Industries and

Agro & Rural Industries. Secretary, Ministry of

SSI & ARI, Government of India was also

present during the inaugural function.

12th series of Techmart India’2004,

coinciding with “Golden Jubilee Year” of NSIC

received tremendous response form trade and

industry. More than 236 units including cluster

units participated in Techmart India’2004.

Some of the items displayed were Powder

Coating Machine, Automatic Filling &

Packaging Machine, Tool Room Machine,

Pumps & Motors, Abrasive, Decoiler,

Refractories, Testing Machine, Furnaces, Auto

Parts, R.O. System and Water Purifier,

Communication system, Public Address

Systems, Hand Tools, Corrugated Roofing

Sheet, Switches & other Electrical Items,

Genset & Grass Cutting Machine etc.

Foreign delegates from Sri Lanka, Haiti,

South Africa, Rwanda, Zambia, Algeria, Congo,

Comoros, Malawi, Brazil, Syria, Qatar, Saudi

Arabia, China, Dubai, Uganda, Nigeria and

Madagascar visited the Techmart.

NSIC was awarded the highest award by

the India Trade Promotion Organization for

“EXCELLENCE IN SPECIAL DISPLAY” in

IITF’2004.

!!!!! International Exhibitions

- NSIC participated in Sources 2004

“Giftware Exhibition” at New York, USA

Shri Mahabir Prasad, Hon’ble Minister for Small Scale Industriesand Agro & Rural Industries inaugurating Techmart India’ 2004.Accompanied by Shri Anupam Dasgupta, Secretary, Ministryof SSI & A&RI and Shri Rajiv Bhatnagar, CMD, NSIC and SmtStuti N. Kacker, Joint Secretary, Ministry of SSI

52

from 15 - 18 May 2004 wherein 8 small

scale units from Moradabad, Noida & UP

displayed their products. A large number

of representatives from prominent stores,

buying houses, importers, wholesalers

and retailers visited the stalls and had

business discussions with the

participating small scale units.

Subsequent to the exhibition, follow-up

meetings with important buyers were

organized.

- NSIC participated in South African

International Trade Exhibition

(SAITEX), 2004 from 5-8 October 2004.

The products displayed in NSIC enclave

were Nuts & Bolts, Fasteners, Domestic

Electrical appliances, Disposable

Syringes & Needles, Bicycle & Bicycle

parts, Hand Tools, Cosmetic items, Body

Care products, Compressed Non-

Asbestos / Asbestos fiber Jointing Gasket

Sheet etc. More than 200 business

visitors from South Africa, Botswana,

Zambia, Mozambique and Nigeria visited

NSIC’s pavilion in SAITEX.

- NSIC participated in the CPHI 2004 – an

international exhibition on pharma-

ceutical & allied industries at Brussels,

Belgium from 7-9 December 2004,

Fourteen bulk drug manufacturers

participated in NSIC display, which

covered an area of 240 sq. mt.

- NSIC participated in International

Autumn Trade Fair in Dubai from

December 12 – 16, 2004. Six small scale

units participated under the NSIC banner

in an area of 57 sq. mt.

!!!!! Buyer Seller Meets

The buyer seller meets, aim at bringing

bulk buyers and SSI suppliers on a common

platform, in order to facilitate vendor

development. These buyer seller meets also

sensitize the small entrepreneurs to the

requirements of bulk buyers, in respect of

quality, manufacturing practices, products

specifications, delivery schedules and pricing.

!!!!! Display centre for SSI products

To assist the small-scale units in marketing their

products, NSIC has established a state of the

art Display Centre at Okhla, New Delhi. This

Display Centre will exhibit products in different

sector manufactured by SSIs. The Display

Centre has a special enclave for SSI products

from the North Eastern Region.

3.2 For Technology Upgration :

!!!!! NSIC - Technical Service Centres /

Extension Service Centres

NSIC - Technical Services Centres /

Extension Centres provide valuable technology

and common facility support to SSIs. This

support is in the form of conventional & hi-tech

machining facilities, specialized testing facilities

and other quality upgradation services. Services

in the area of energy/ environment audit,

53

consultancy for ISO 9000 and preparation of

project exports for SSIs are also provided.

NSIC-TSCs at New Delhi, Howrah,

Rajkot, Chennai and Hyderabad enjoy the

status of ‘In House R&D Centres’ of Department

of Scientific and Industrial Research (Ministry

of Science & Technology).

In order to cater to the needs of SSIs to

face the challenges arising due to recent

economic & policy changes like lifting of quantity

restrictions & globalization, the Technical

Centres have taken the challenge head on and

started several hi – tech training programmes

in the area of CAD/CAM, hydraulic and

pneumatic controls etc.

!!!!! Software Technology Park

Recognizing the importance of

information technology in the globalize

economy, NSIC has established two Software

Technology Parks (STP) – one at New Delhi in

1995 and second at Chennai in 2001. These

two parks are established under the Software

Technology Parks of India (STPI) Scheme of

Ministry of Information Technology.

The STPs provide infrastructural facilities

and create conducive business environment for

the software exporters. NSIC has created

requisite infrastructure in terms of fully built up

working space, high speed data communication

facilities, business centres, round the clock

power backup and other logistics support to the

small scale software exporters. In addition to

the infrastructural facilities, NSIC also provides

value addition services in terms of making the

project reports, liaisoning with the authorities

of the project, facilitating custom bonding

formalities etc. The software enterprises can

start the business operations with minimum

lead-time. Since, the developed infrastructure

is readily available, they also save capital

expenditure on creation of such facilities.

In NSIC-STP at Okhla, 28 software export

units have utilized the facilities since its

inception in 1995. Around 10 enterprises grew

big and vacated the space. At present, there

are 14 units operating in the STP. Chennai STP

houses 12 software export units.

!!!!! Technology Transfer Centre

Technology Transfer Centre at Okhla, Delhi

disseminates technological information relevant

to the needs of SSIs, facilitates enterprise to

enterprise relationships, assists in upgradation

of technology and encourages industry –

institutional linkages.

!!!!! Energy Audit

NSIC - Technical Service Centre, Rajkot

has been approved as “energy auditor” by

Petroleum Conservation Research Association,

Government of Gujarat, Maharashtra Energy

Development Agency and Gujarat Energy

Development Agency.

The Centre has established a full-fledged

Environmental Laboratory, which has been

54

recognized by the Gujarat Pollution Control

Board has recognized this Center as a

SCHEDULE – I environmental auditor.

NTSC, Chennai has also been registered

with Tamil Nadu State Electricity Board as an

approved auditor to conduct energy audit for

high-tension industrial and commercial

establishments in Tamil Nadu.

!!!!! Technology Business Incubators

Emerging technological and knowledge-

based entrepreneurial ideas have to be fostered

and developed in a supportive environment

before they become attractive for commercial

investments. Hence, the need arises for

incubation centers. A scheme of the Corporation

for setting up an Incubation Centre at Okhla has

been approved by the administrative Ministry

and would become operational soon.

NSIC in association with Department of

Science & Technology is also in the process

of setting up a Science & Technology Incubator

at NTSC, Rajkot.

3.3 Credit for SSIs

NSIC facilitates credit support for

technology upgradation programmes for small

scale industries through its equipment financing

schemes. In addition to equipment financing,

NSIC also provides limited financing support for

marketing activities i.e. raw material

procurement, exports, internal marketing and

bill discounting.

!!!!! Tie Up with Banks

NSIC is making tie up arrangement with

commercial banks in order to facilitate sanction

of credit limits from these banks to small scale

industries. Under this arrangement, proposals

of small industries for their credit needs will

be forwarded by NSIC to these banks for

sanction. Working arrangements, in this

regards, have been finalized with United Bank

of India.

!!!!! Performance and Credit Rating For

SSIs

The fast changing global economic

scenario has thrown up many opportunities and

challenges to the small scale industries in

India. While, on the one hand, many opportu-

nities have opened up for the small scale sector

to enhance productivity and look for new

markets in other countries, it has also put an

obligation on them to upgrade their competence

in terms of technology, management & financial

strength to successfully meet the global

competition.

Accordingly, a need was felt for

introducing a Performance and Credit Rating

Scheme for Small Scale Industries. It is

expected that the Scheme would facilitate

adequate credit flow to SSI sector at a

reasonable cost. Besides this, credit rating

would also infuse a sense of confidence

amongst the buyers, for taking a decision on

sourcing material from the enterprises.

55

3.4 Infomediary Services

Keeping in mind the information needs

of small industries, NSIC has conceptualized

Infomediary Services – a one-stop, one-window

shop that provides information on business,

technology and finance.

Infomediary Services are primarily

delivered through NSIC website, which is being

converted to a portal. Member companies have

special password protected access, to value

added information, on trade statistics, global

trade leads, investment opportunities, tender

information and technology sources. Regular

e-mail alerts are sent to registered members

and visitors on new initiatives of NSIC. All

members are given listing, in the sector based

online manufacturers directory, as well as facility

to create their homepage on NSIC site.

Premium members enjoy special privileges,

such as automatic tender alerts on e-mail, for

their chosen areas of products and services.

Banner display on NSIC site and discounts in

all other services are also offered to the

members. The overall objective of Infomediary

Services is to create, sustain and serve online

the community of small entrepreneurs to

showcase their competence on the web. The

features and services are being upgraded and

many new features, such as expert chats, virtual

exhibition, auction center and discussion forum

are being introduced in the new NSIC portal.

3.5 Mentoring and Advisory Services

Unbalanced management skills are often

a problem in small enterprises. NSIC’s

mentoring and advisory services are aimed at

effectively addressing this impediment to

growth. It offers mentor and pupil relationship

services, in which the mentor, is a person with

wide experience in running his own business

and who volunteers his / her services to

individuals or a group of units- the pupils. On

the other hand, an advisor is a senior profe-

ssional, generally retired and a specialist in a

specific area who assists identified enterprises

in tackling specific technical or business related

problems. Mentors and advisors provide

necessary professional and moral support in the

early lifecycle of an enterprise or to existing units

critical operational problems.

4.0 INTERNATIONAL COOPE-RATION

Under its International Cooperation

Programme, NSIC facilitates enterprise-to-

enterprise cooperation and sharing of best

practices and experiences with other

developing countries.

!!!!! Commonwealth India Small Business

Competitiveness Development

Programme (15-19 November, 2004)

National Small Industries Corporation, incollaboration with the CommonwealthSecretariat, London (COMSEC) organized apan-Commonwealth programme on SmallBusiness Competitiveness Development. Theprogramme was held in New Delhi from 15 –19 November 2004. Hon’ble Union Minister forSSI & ARI inaugurated the programme. 35senior policy makers and practitionersrepresenting over 31 member States from theCommonwealth attended this programme.

56

The objective of the programme was to

showcase India’s achievements in the area of

small business development as well as share

experiences & lessons learnt from rest of the

Commonwealth. The programme focused at

building and developing institutional capacity on

competitive small business policies and

strategies for Commonwealth developing

States. This was done through a combination

of best practices, case studies and field visits.

The program also provided an opportunity for

policy makers and practitioners to network.

The programme was divided into eight

working sessions. Each session had speakers

from India and from COMSEC. Group work was

also kept on each day, where participants

deliberated on various industries related issues

concerning India and Commonwealth member

States. The programme evaluation report,

recently submitted by the independent evaluator

Mr. N. Vittal, highlighted that the event achieved

all its major objectives and fulfilled the

participant’s expectations.

!!!!! Setting Up Of Vocational Training

Centre at Jakarta, Indonesia Under

ITEC Programme

An agreement for setting up of Vocational

Training Centre for construction sector at

Jakarta, Indonesia on turnkey basis was signed

between NSIC and the Ministry of External

Affairs, Govt. of India. The total value of the

project is Rs.308.70 lakh. The project is under

execution. Plant and equipments for the Centre

have already been commissioned.

5.0 NORTH EASTERN REGION

NSIC has a network of offices in NER.

This includes two-branch offices at Guwahati

(Assam) and Imphal (Manipur) and four sub-

offices at Dimapur (Nagaland), Itanagar

(Arunachal Pradesh), Shillong (Meghalaya) and

Agartala (Tripura).

The efforts of NSIC in the North East Region

are aimed at spreading industrial culture in the

Shri Mahabir Prasad, Hon’ble Minister for Small Scale Industries and Agro & Rural Industries, Shri AnupamDasgupta, Secretary, Ministry of SSI & A&RI and Shri Rajiv Bhatnagar, CMD, NSIC at the inaugural session of

Commonwealth-India Small Business Competitiveness Development Programme at New Delhi

57

region. The training programmes increase

employment opportunities of the trainees and

enhance possibilities of self-employment. NSIC

also organizes exhibitions with an exclusive

focus on NER to popularize the products of the

region.

NSIC, in association with International

Centre for Advancement for Manufacturing

Technology (ICAMT) of UNIDO, is planning to

implement a three-year project for capacity

building of SSI units in Food Processing Sector

in the North Eastern Region.

6.0 ASSISTANCE TO RATIONA-LIZED WORKERS UNDERTHE SCHEME OF COUN-SELLING, RE-TRAINING ANDRE-DEPLOYMENT OF EM-PLOYEES OF CPSUS

A Scheme on Counseling, Re-training

and Re-deployment (CRR) of employees of

CPSUs is run by the Government of India. One

of the objectives of the Scheme is to suitably

equip the rationalized workers for re-

deployment, so that they continue to be useful

and productive. For this, the Govt. of India

arranges free training/re-training of these

workers for wage employment and self-

employment, through nodal agencies for

undertaking the training / retraining at different

places in the country. NSIC is the nodal agency

at Kolkata, Howrah, Hooghly, Durgapur,

Ranchi, Burnpur, Bokaro and Dhanbad under

the CRR scheme.

7.0 HUMAN RESOURCE DEVE-LOPMENT & TRAINING

In order to keep abreast with the changing

technology and advancements in the various

fields, the Corporation strived to keep its human

resource current with the latest developments

relating to their functional areas. NSIC Corporate

office and nine major branch offices are certified

for ISO 9001:2000. Continuous efforts are put in

to identify the training needs and evolve suitable

training plans to fulfill the identified needs.

Quality Management System ISO

9001:2000 calls for continuous improvement

and training being an important element of the

standard, the Corporation has taken all out

efforts to train people on ISO 9001-2000

awareness and Internal Quality Audit Training.

In the present operational environment,

computing skills are essential for every employee

in the Corporation. An intensive training was

organized for the administrative and support

personnel in application of computers.

8.0 CITIZEN’S CHARTER

NSIC is committed to efficient and prompt

service on the basis of objectivity, transparency

and courtesy in dealing with citizens for the

promotion and growth of small-scale industries.

To inculcate these values in the employees,

NSIC has come out with a Citizen’s Charter.

Officers have been assigned to work as a link

between the public and the Corporation and

members of public can get in touch with these

officers for guidance and help.

58

Chapter V

TRAINING ANDENTREPRENEURSHIP DEVELOPMENT

1.0 Entrepreneurship Development and

Training is one of the key elements for the

development of small scale industries,

particularly, the first generation entrepreneurs.

To promote the entrepreneurship development

in the country, the Ministry implements 2

important schemes, namely, promotion of

Entrepreneurship Development Institutions

(EDI) and Scheme of National Entrepreneurship

Development Board (NEDB). The Indian

Institute of Entrepreneurship (IIE), at Guwahati;

the National Institute of Small Industry

Extension Training (NISIET), at Hyderabad and

the National Institute of Entrepreneurship and

Small Business Development (NIESBUD), at

New Delhi under Ministry of SSI are responsible

for training and entrepreneurship development

in the SSI Sector.

2.0 ENTREPRENEURSHIP DEVE-LOPMENT INSTITUTIONS(EDI) SCHEME

Under the EDI Scheme, grant is given for

setting up of new Entrepreneurship Develop-

ment Institutions and also for upgradation and

modernization of existing Entrepreneurship

Development Institutions in the country. Under

the Scheme, a matching grant of 50%, subject

to a ceiling of Rs. 1 crore is provided for building,

equipments, training aids, etc. The balance

50% is contributed by the State Governments/

Financial Institutions. During 2004-05 an

amount of Rs. 210 lakh has been sanctioned

for the promotion of EDI in the country. During

2005-06, a budget provision of Rs. 200 lakh has

been provided under the Scheme.

3.0 NATIONAL ENTREPRENEUR-SHIP DEVELOPMENT BOARD(NEDB) SCHEME

The National Entrepreneurship

Development Board (NEDB) scheme is being

implemented by the Ministry of SSI. The NEDB,

is the apex body for entrepreneurship

development in the country. It devises and

recommends to the Government, schemes for

the promotion of entrepreneurship for

encouraging self-employment and setting up of

the small scale industries and small business.

Under the Scheme, grant is provided to reputed

organizations engaged in the entrepreneurship

development for organizing workshops/

seminars; conducting research studies relevant

to entrepreneurship development. During 2004-

05, the Ministry has approved a proposal for

setting up of an incubator centre for Gems and

59

Jewellery at Guwahati by IIE, Guwahati at a total

cost of Rs. 41.80 lakh. This Centre will cater for

the development of the Gems and Jewellery

industries of the region. A few studies have

also been assigned to reputed institutions, on

various issues, relating to entrepreneurship

development in the country.

4.0 INDIAN INSTITUTE OFENTREPRENEURSHIP (IIE),GUWAHATI

4.1 Indian Institute of Entrepreneurship (IIE),

will complete its 11th year of operation on 31

March 2005. During this period, the Institute has

organized 537 training programmes/workshops/

seminars/meets wherein 15,472 participants

participated.

training programmes for 2626 participants, while

43 programmes are scheduled to be completed

by March 2005. Out of the total 72 completed

programmes, 26 programmes were on “Promo-

tion of New Entrepreneurs”, 20 programmes on

“Growth of Existing Entrepreneurs”, 2

programmes on “Creation of Environment for

Entrepreneurship”, 19 programmes on “Entre-

preneurship Education”, 2 Seminars, and 3

programmes on Information Technology. Better

infrastructure facilities of the Institute, greater

awareness about the Institute and addition of

new areas of Entrepreneurship Development

have been responsible for increase in the

number of programmes. The details of the

training programmes, during 2004-05 (up to

November 2004) and expected achievement for

the year can be seen at the following Table.

4.3 Promotion of new entrepreneurs has

been a major focus area of training organized

by IIE. In order to promote new entrepreneurs,

the Institute organizes EDPs for rural areas and

for women and general participants; crash

courses on Self Employment, sector specific

EDPs, etc. The Institute is continuing its Rural

Industries Programme (RIP) with the help of

SIDBI in Meghalaya, Manipur and Barpeta in

Assam. The Institute has initiated a

Comprehensive EDP on Gems Stone Cutting

and Polishing.

4.4 At the instance of the Ministry of Food

Processing Industries, Ministry of Small Scale

Industries, Ministry of Science and

Technology, Government of India, and North

Eastern Development Financial Corporation,

4.2 During the year 2004-05 the Institute

proposes to organize 115 training programmes,

seminars, workshops and meets, where 3716

participants are expected to participate. Upto

November 2004, the Institute completed 72

His Excellency, Lt. General (Retd.) Shri Ajai Singh Hon’bleGovernor of Assam and President of IIE, with Lt. General(Retd.) Shri S. S. Mehta, PVSM, VSM, Principal Adviser,NE Region, CII during the workshop on Industrialisation

of NE Region

60

the Institute has organized 16 (as on

November 2004) sector specific programmes

in Food Processing, Health, Gem Stone

Polishing and Plastic Packaging industries,

considering the immense potential of these

sectors in the North East, for 374 participants.

The Institute with the assistance of Office of

the Development Commissioner (SSI),

Government of India also started its project

for development of Cane and Bamboo Cluster

in Nagaland.

4.5 The Institute hosted the second phase of

the Advance International Programme on Small

and Medium Enterprises Management

Development conducted in association with

Types of Programme and Number of Participants - IIE

Sl. Programmes No. of Pro- No. of No. of No. ofNo grammes Participants Programmes Participants

Completed Trained 2004-2005 2004-2005during during

2003-04 2003-04 Completed To be Completed ExpectedUp to Completed Up to Nov. December

Nov.2004 Dec,2004 2004 to Marchto March 2005

2005

1. Promotion of New 78 2642 46 32 1582 800Entrepreneurs (PNE)

2. Growth of Existing 9 170 2 - 29 -Entrepreneurs (GEE)

3. Creation of 28 1082 22 10 969 340Environment forEntrepreneurship(CEE)

4. Entrepreneurship 4 118 2 1 46 50Education (EE)

5. Information 1 7 - - - -Technology (IT)

6. Seminar/ Workshop

7. Others

Total 120 4019 72 43 2626 1190

Participants during Gems cutting and polishing Training

61

NIESBUD and Linkoping University, Sweden.

The first phase was held at Stockholm, Sweden.

The programme was sponsored by Swedish

International Development Agency.

4.6 The Institute organized a programme on

Border Trade with Bangladesh and Myanmar

for the entrepreneurs of the North Eastern

Region. The Institute also organized a

programme on Export Marketing to create

awareness about the opportunities in the export

sector.

4.7 The Institute proposes to hold a series of

programmes for the beneficiaries of KVIC

schemes, during the financial year 2004-05. Till

November 2004, the Institute has organized 16

programmes for 606 KVIC beneficiaries. By end

of March 2005, the Institute will organize 16

more programmes of this kind.

4.8 Considering the importance of creating an

environment for entrepreneurship development,

the Institute has been organizing programmes

for the orientation of the support officials. During

the year (upto November 2004) the Institute has

Participants of EDP on Food Processing, Imphal duringpractical demonstration

Shri A. K. Baruah, Programme Director of EDP on Jute &its allied products, welcoming the participants

Dr. Kobus Visser, Professor, Department of Management,University of Western Cape, Cape Town, South Africa,

delivering Foundation Day Lecture

organized two such programmes for 29

participants.

4.9 Creating awareness and orientation for

college and university teachers on entrepre-

neurship has been one of the core areas of the

Institute. The Institute organized a teachers’

training programme in entrepreneurship deve-

lopment for college and university teachers. In

addition to this, the Institute has already

organized 14 programmes for college students

at the instance of the Department of Science

and Technology, Government of India; 2 pro-

grammes for polytechnic students of Nagaland,

62

at the instance of the Government of Nagaland

and 2 programmes for the youth in general, at

the instance of the North Eastern Council,

Shillong. Till November 2004, 939 persons have

participated in these programmes. The details

are given in the Table.

for providing a forum for interaction and

exchange of views by various agencies and

entrepreneurs. Till date, the Institute has

organized 2 workshops, one on Industrialization

of The North Eastern Region and the other on

Prospects of Gems and Jewellery Industries in

Dr. P. Sinha, Programme Director, welcoming theparticipants of the workshop on Empowerment of Women

Entrepreneurship Education - IIE

Sl. Type of Programmes No.of No.ofNo. Programmes Participants

1 Teachers Training Programme on Entrepreneurship 1 8

2 EDP for Polytechnic Students of Nagaland 2 34

3 EAP for College Students EAP for Youth 14 720

4 2 158

Total 19 920

4.10 At the instance of the North Eastern

Council, Shillong, the Institute has organized 2

teachers’ training programmes on computer

application skills. The Institute also organized a

certificate course on basic computer applications

for 49 participants (as on November 2004).

4.11 The Institute has been organizing

seminars, workshops, meets and conferences

the North East. One more workshop/seminar

will be organized by the end of March 2005.

4.12 The Institute completed the following

research and consultancy assignments during

the year:

! The Status of Small Scale Industries of

the North Eastern States of India, 2004

sponsored by the Ministry of Small Scale

Industries, Government of India, New

Delhi

! Diagnostic Study of Bee Keeping Cluster

at Nalbari and Jorhat Districts of Assam,

2004, sponsored by KVIC, Guwahati

! Study on the Impact of North East Indu-

strial Policy, 1997-2004, sponsored by the

Ministry of Small Scale Industries,

Government of India, New Delhi

63

The following research and consultancy

assignments are on-going:

! Entrepreneurship Development efforts

and training need assessment for

entrepreneurial growth in North East

! Profiles of 100 successful entrepreneurs

from North East

! Evaluation of Scheme for Support to

Training & Employment Programme

(STEP) for women projects, being

implemented by Assam Apex Weavers

Artisans Cooperative Federation, for

Handloom Weavers.

4.13 Secretary, SSI&ARI, Government of

India, formally inaugurated the ‘Centre for

Comprehensive EDP on Gems Cutting and

Polishing’ at the Institute’s premises at

Guwahati on 24 September 2004. It is expected

that the Center would help the artisans in

developing their skill and contribute to the

economic development of the region.

4.14 An MoU has been signed between Indian

Institute of Entrepreneurship and the

Department of Industrial Development,

Government of Uttaranchal in the presence of

the Hon’ble Chief Minister, Shri N.D. Tiwari, for

setting up its regional office at Dehra Dun with

a contribution of Rs. 5.0 lakh from the Uttranchal

Government.

4.15 The Indian Institute of Entrepreneurship,

Guwahati organized the 10th Foundation Day

lecture on ‘Entrepreneurship in Different

Cultural and Socio-economic Contexts:

Comparative Aspects on Entrepreneurship’.

The lecture was delivered by Dr. Kobus Visser,

Professor, Department of Management,

University of Western Cape, Cape Town, South

Africa. His Excellency, Lt. General (Retd.) Ajai

Singh, Governor of Assam and the President

of IIE, in his address, urged the institute to draw

perspective plans and programmes to cater to

the needs of the growth and development of

the small scale and medium enterprises of the

north eastern region.

4.16 The Institute publishes a Quarterly IIE

Newsletter, which highlights the activities of the

Institute and caters to the information needs of

the entrepreneurs of the North East.

The Institute published a book titled

“Swaniyojanar Sandhanat Udyamita” (Self-

employment through Entrepreneurship), by Shri

Jiten Chandra Kalita, IIE Faculty which was

Shri N. D. Tiwari (m), Honurable Chief Minister ofUttaranchal, during signing of MoU between IndianInstitute of Entrepreneurship and the Departmentof Industrial Development, Uttaranchal for settingup its Regional office at Dehra dun.

64

formally released by the Secretary (SSI & ARI),

Government of India.

5.0 NATIONAL INSTITUTE OFSMALL INDUSTRY EXTEN-SION TRAINING (NISIET)

5.1 The NISIET was set up as an apex

institute in 1960 by the Government of India,

with the Charter of assisting in the promotion,

development, and modernization of small and

medium enterprises (SMEs) in the country,

mainly by creating a pro-business environment

which would enable SMEs to progress towards

success and prosperity. With its vast expertise

in the areas of entrepreneurship, policy,

technology, management, and information

services, the institute is consistently assisting

the SMEs to face with confidence, the

challenges brought about by globalization and

the impact of IT on their businesses.

As a global organisation, NISIET’s stellar

role in positioning the SMEs on the growth

trajectory has benefited not only the Indian SME

sector, but also developing countries around the

world in promoting self-employment and

enterprise development. The institute is

constantly evolving with time, modifying its

focus with the emerging needs of SMEs,

providing them solutions in the form of

consultancy, training, research, and education

to retain their competitive edge in ever-changing

markets.

5.2 The academic performance indicators for

2003-04 and for the period from April 1, 2004

to November 30, 2004 (actual) and the

projection for the remaining four months of

2004-05 are as presented in the Table.

5.3 During 2004-05, the Institute has taken

up the following research and consultancy

projects:

! Evaluation of on-going schemes of

NBCFDC in Kerala

! Evaluation of on-going schemes of

NBCFDC in Tamilnadu

! Evaluation of Training Schemes of

NBCFDC in Kerala

! Study on Demand and Supply

Assessment of Ozone Depleting

Substance in India sponsored by Ministry

of Environment and Forest, Government

of India, New Delhi.

! Technical Break-up Unit/Interface of KVIC

! Environmental reporting for Al-Kabeer

Exports, Hyderabad

! Environmental auditing for Nicholas

Piramal, Hyderabad

! Environmental Auditing for Alfex

International, Hyderabad

65

Programmes 2003-04 2004-05No. of No. of From 1.4.2004 From 1.12.2004 Total

Progra- Partici- to 30.11.2004 to 31.3.2005mmes pants (actuals) (Projections)

No. of No. of No. of No. of No. of No. ofProgra- Partici- Progra- Partici- Progra- Partici-mmes pants mmes Pants mmes Pants

EntrepreneurshipDevelopmentProgrammes

EDPs underChief Minister’s

Empowerment of 448 32640 — — — — — —Youth of A.P. forUnemployedYouth

! Counselling, 24 1276 17 843 43 2150 60 2993Re-training andRe-deploymentof rationalizedemployeesof CPSUs

! EDPs on Food — — 09 250 59 1475 68 1725ProcessingIndustries

! Other EDPs 22 620 05 121 20 600 25 721

Other Programmes:

National:Announced 24 251 16 162 23 230 39 392Sponsored 33 1066 19 484 30 650 49 1134

International:Announced 11 203 11 101 6 120 17 221Sponsored 04 52 03 18 2 30 05 48

Educational:PG Diploma 16 200 08 71 2 30 10 101IT 13 119 15 361 11 275 26 636IGNOU 03 300 03 157 — — 03 157

Seminars and 45 1326 12 510 10 300 22 810Workshops

Consultancy & 27 — 14 — 07 — 21 —Research

Total 670 38053 132 3078 213 5860 345 8938

Academic Performance of NISIET

66

! Achieving self-sufficiency of societies by

Girijan Cooperative Corporation (GCC).

! Handholding and monitoring services for

20 clusters in the country.

! Project on Crochet Lace cluster at

Narsapur, West Godavari District, Andhra

Pradesh.

! Design of project profiles for SMEs in

Mauritius

! Study on Curriculum Models for

Entrepreneurship Development

! Study on Competency Mapping of Indian

SMEs for Global Promotion.

5.4 In order to cope with the increased poly-

dimensional nature of academic activities and

programmes, the old Training Building was

demolished and a new building was constructed

to improve the physical infrastructure of the

institute, landscaping and designing of gardens

was also separate environs were created and

constructed for specific activities like motivation

of entrepreneurs, open-air spots, grounds, and

theatres for programmes, festivals, and

academic discussions latest gadgets and other

essential aids like computers with latest

software were made available to promote faster

and convenient learning by participants.

5.5 Small Enterprise National Documentation

Centre (SENDOC) operations were augmented

by switching over to electronic and digital

information services and products, and the

acquisition and installation of electronic journals

database and industrial analysis database. In

addition, a number of CD-ROMs were added

to strengthen the information support system.

6.0 NATIONAL INSTITUTE FORENTREPRENEURSHIP ANDSMALL BUSINESS DEVELOPMENT(NIESBUD), NOIDA, UTTARPRADESH

6.1 The National Institute for Entrepreneur-

ship & Small Business Development

(NIESBUD) is a registered society under the

Ministry of Small Scale Industries, Government

of India. The major activities of the Institute

include, development of model syllabi for

training of various target groups; providing

L to R : Dr. C. Rani, Director, CEIE, Dr. Poornima Advani,Chairperson, NCW; HE The Governor of Andhra Pradesh

Shri Surjit Singh Barnala; Dr. Chukka Kondaiah,Principal Director, NISIET

67

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 which are commonly not

undertaken by other agencies and organizing

activities which help in developing an

entrepreneurial culture in the society.

6.2 During the first 8 months of 2004-05 (April

to November, 2004), the Institute has organized

16 training programmes with 304 participants.

Besides, the Institute undertook the Study on

Training Needs Assessment and Development

of Training Module for Women Producers in

TASAR and organized a Rural Clinic for existing

entrepreneurs in District Gautam Budh Nagar,

U.P. While 22 training programmes were

conducted by the Institute with 558, participants

during the corresponding period of 2003-04.

During the year the Institutes shifting to its new

campus in NOIDA which affected its full working

for almost 3 months.

6.3 The details of the training programmes

(upto November 2004) conducted by the Institute

are as per the details given in the Table.

6.4 The Institute organized the follo-wing Seminars and Workshops.

i) A two- day Seminar was organized at the

special request of the Commissioner and

Director of Industries, Govt. of Uttar

Pradesh, on “Preventing Industrial

Sickness and Sticky Advances”. It was

attended by 30 participants.

ii) The workshop on “Impact of World Trade

Organization (WTO) on Small & Medium

Enterprises (SMES)” were conducted at

Moradabad for 30 participants, sponsored

by the Commissioner & Director of

Industries, Government of Uttar Pradesh.

Training Programmes conducted by NIESBUD during 2004-05

Training No. of programme No. of participants

(1) Trainers’ Training 8 106

(2) Entrepreneurial Motivation Programme 5 46

(3) Other Training Programme 8 144

(4) International Training Programme 2 34

68

6.5 During the remaining four months of the

year 2004-2005, the Institute expects to conduct

14 training Programmes besides undertaking

the following activities:-

! The Institute has been recognized/

approval as a Nodal Centre for organizing

training activities under Counseling,

Retraining & Redeployment (CRR)

Scheme for Rationalized/Retrenched

Employees of Central Public Sector

Undertakings (CPSUs) at NOIDA, New

Delhi and Aurangabad.

! The Institute’s proposal submitted to the

Ministry of Urban Affairs & Employment,

Govt. of India for conducting series of

workshops & seminars for functionaries

of the Swarna Jayanti Shahari Rojgar

Yojana, is expected to fructify in near

future.

! The Institute is going to organize a

National Meet of Trainers on Enterprise

Development, under the auspices of the

Ministry of Small Scale Industries.

! The Institute has been recognized as a

Nodal Training Centre by the Indira

Gandhi National Open University

(IGNOU) and Guru Gobind Singh

University / for their respective training /

academic activities. The Institute is also

in the process of organizing a series of

Entrepreneurship Awareness Progra-

mmes for Under-Graduate and Post-

Graduate students of various disciplines

of Guru Gobind Singh University.

6.6 The Institute commenced operations from

its new integrated campus at NOIDA from April,

2004. The campus spread over 2.5 acres of

land has interalia facilities for holding

conferences / meetings / classes/group /work/

workshops etc. simultaneously, besides 32

Hostel Rooms on a twin sharing basis with

adequate infrastructural and recreational

facilities for the inmates.

6.7 As part of the MoU (Memorandum of

Understanding) signed between the Ministry of

SSI, Govt. of India and the People’s Democratic

Republic of Algeria on Small & Medium

Enterprises and Handicrafts, the Institute

intends to assist in creating an environment

conducive for promotion of Small Enterprises

in Algeria, developing Human Resource for

entrepreneurship development through

organizing Trainers’ Training Programmes,

sector specific EDPs and workshops / seminars

for Banks and Support Organizations.

6.8 The Institute is closely associated with

implementation of the MoU signed between the

Governments of India and Kenya in the field of

Micro & Small Enterprises Sector.

6.9 The Institute is negotiating with CAPMER,

Rawanda for long-term collaboration in the area

of entrepreneurship development in terms of

organizing Entrepreneurship Training Progra-

mmes; developing curriculum for Trainers’

Training; exchange of faculty between the two

countries and to generally have a sustained part-

nership for development of SMEs in Rawanda.

69

Chapter VI

INTERNATIONAL COOPERATION

1.0 INTERNATIONAL COOPERA-TION SCHEME

International Cooperation Scheme for

modernization and technology upgradation of

small-scale enterprises has been under

implementation since 1996. Under this

Scheme, SE entrepreneurs are taken to

potential foreign markets, for a one to one

interaction, for sourcing technology and for

export of products. Small enterprises have

emerged as a focus area for forging and

promoting trade and investment ties with other

countries. The economic reform programmes,

envisage the emergence of the Indian industry

as a global competitor, with substantial

presence in the international markets.

Technology upgradation, modernization of SSI

sector and promotion of exports from this sector

are interlinked issues which are important

objectives of this Scheme.

1.1 The Scheme was introduced in the 9th

Plan and has been continued in 10th Plan, and

has been revised recently. 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-to-enterprise

interaction through selected agencies,

both in India & abroad.

! Conducting of surveys and studies for

identifying individual units/ cluster of

units, for the purpose of intensive

enterprise to enterprise interaction

through NSIC Ltd. and other national level

organizations /institutions.

2.0 INDIA GLOBAL SUMMIT ONSMES

! The Ministry and Confederation of Indian

Industry (CII) jointly with NSIC & SIDBI

organized the “India Global Summit on

SMEs – Emerging Challenges &

Opportunities”, from 23 and 24

November, 2004 at New Delhi. Hon’ble

Minister (SSI & ARI) inaugurated the

Summit. Dr. R. Chidambaram, Principal

Scientific Advisor to the Government of

India also gave a presentation. The

70

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 Enter-

prise are some of the topics, that were

deliberated upon during the summit. 137

foreign delegates from 27 countries

across the globe attended the Summit.

3.0 SIGNIFICANT EVENTS

! His Excellency Mr. Mehmed Dikme,

Bulgarian Minister of Agriculture and

Forestry, Republic of Bulgaria called on

Hon’ble Minister of Small Scale Industries

& Agro and Rural Industries on 18th

November, 2004 at New Delhi to discuss

areas of mutual cooperation in the small

scale and agro-rural industrial sectors.

! Mr. Ghenoun Lakhdar, Secretary

General, Ministry of Small and Medium

Enterprises and Handicrafts, Algeria,

discussed cooperation for development

of SMEs with Secretary (SSI&ARI) and

other senior officers in the Ministry.

! A Syrian delegation led by Dr. Hussein

M. Amach, Acting Minister, Prime

Minister’s Office, Syria also met senior

officials of the Ministry during this

period.

! Secretary (SSI & ARI) visited South Africa

and Lesotho during September, 2004 to

identify concrete projects for cooperation

in the small scale sector. During his visit

to the Kingdom of Lesotho, a

Memorandum of Understanding between

Government of the Republic of India and

the Government of the Kingdom of

Lesotho for the promotion and

development of Small Scale Enterprises

was signed.

! His Excellency Mr. Paolo Scarpa

Bonazza Buaro, the Italian Under

Secretary for Agriculture and Forest

Policy, met Hon’ble Minister (SSI &

ARI) on 6 December, 2004 and

discussed possible areas of cooperation

between India and Italy for the

promotion and development of the small

scale sector.

! The first session of the Joint Committee

between Government of India and Algeria

instituted under Article 5 of the MoU on

Cooperation in the SME sector was held

on 22.11.2004 at New Delhi.

71

Chapter VII

ACTIVITIES IN NORTH EASTERN REGION

1.0 The North Eastern Region, comprising of

Assam, Arunachal Pradesh, Manipur, Mizoram,

Meghalaya, Nagaland, Tripura and Sikkim has

abundant natural resources and these

resources can be harnessed for industrial

development. The Ministry of SSI is actively

promoting the development of small scale

industries in the North Eastern region through

various plans and programmes implemented by

the various organisations of the Ministry.

2.0 SMALL INDUSTY DEVELOP-MENT ORGANISATION (SIDO)

Under the Credit Guarantee Scheme (as

on 31.10.2004), 246 proposals from the North

Eastern States have been approved as per the

table given below :

2.1 The Micro Finance Scheme has been

dove tailed with the programmes of Small

Industries Development Bank of India (SIDBI),

by way of contribution towards security

deposits, required from Micro Finance

Institutions (MFIs) / Non-Government Organi-

sations (NGOs) to enable them to avail credit

facilities from SIDBI. This will not only expand

the reach of SIDBI by providing the equity

support to MFIs/NGOs in the region but this also

ensure their long-term sustainability. Besides,

it will also help in meeting the training needs of

NGOs/Self-Help Groups, facilitators and

Sl. State Number of Amount of guaranteeNo. proposals approved cover Rs. lakh

1. Assam 178 635.79

2. Manipur 29 36.66

3. Nagaland 9 80.88

4. Meghalaya 8 71.68

5. Arunachal Pradesh 2 1.90

6. Mizoram 1 8.00

7. Tripura 4 25.90

8. Sikkim 15 67.20

Total 246 928.01

Proposals (State-wise) Approved for North Eastern Region and Amount of Guarantee under theCredit Guarantee Scheme

72

entrepreneurs, and enhance the awareness

about the micro credit programmes.

2.2 To give a fillip to the growth of the small

scale industries in the North Eastern region, the

funding pattern under the Integrated

Infrastructure Development (IID) Scheme has

been relaxed from 40% to 80% for the North

Eastern region, J&K, Himachal Pradesh and

Uttaranchal. Rs. 4.30 crore has been disbursed

in the North Eastern region under the Scheme

in the current year (till 30.10.2004).

2.3 The proposal for the development of cane

and bamboo clusters at Dimapur, Nagaland has

been approved with a financial assistance of

Rs. 45 lakh, to be utilized in the current year.

The Indian Institute of Entrepreneurship (IIE),

Guwahati is the nodal agency for implementing

this project.

3.0 NATIONAL SMALL INDU-STRIES CORPORATION(NSIC) LTD.

3.1 NSIC has provided raw material

assistance to the extent of Rs. 5 crore to the

SSI units in the region. In addition, tender

marketing support to the tune of Rs. 25 lakh

was provided to the SSI units.

3.2 The NSIC Branch Office in Guwahati,

sponsored an industrial fair organized by the

Government of Nagaland in Kohima during

November, 2004. 60 SSI units from across the

North Eastern region participated in the fair.

The NSIC also conducted 2 Entrepreneurship

Development Programmes (EDPs) on agro

processing at Dainabubi, Meghalaya and

Dirang, Arunachal Pradesh. 60 entrepreneurs

from the region participated in these EDPs. 2

training courses were conducted at Chandigree

village, Meghalaya and Dirang, Arunachal

Pradesh for 25 participants.

3.3 Financial assistance of Rs. 20.58 lakh

was disbursed by NSIC in the region under the

Hire Purchase Scheme. Under the Term Loan

Scheme, financial assistance was extended, to

the entrepreneurs in the region, for upgradation

of technology. 53 SSI units from the region also

displayed their products and services in the

NSIC Display Centre at Okhla, New Delhi. The

Display Centre has an exclusive floor dedicated

for display of products from the North Eastern

States. Another Display Centre at Kolkata is

being operationalised by the NSIC, for exclusive

display of products of SSI units of the region.

4.0 COMPREHENSIVE ENTRE-PRENEURSHIP DEVELOP-MENT CENTRE (CEDC)

The Ministry has also sanctioned a

Comprehensive Entrepreneurship Develop-

ment Centre (CEDC) for gems and jewellary in

the North Eastern region. The Centre has been

set up in IIE, Guwahati. Similar Incubator

Centres are also proposed to be set up in other

North Eastern States.

73

Chapter VIII

DEVELOPMENT ACTIVITIESFOR WOMEN

1.0 In the policy measures for promotion and

strengthening of small, tiny and village

enterprises announced by the Government in

1991, it was mentioned that the definition of

Women Enterprises would be simplified.

Accordingly, the definition of “Women

Entrepreneurs” is 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 than 51% as Partners/Share-holders/

Directors of Private Limited Company/Members

of Cooperative Society”.

2.0 PARTICIPATION OF WOMENIN SSI SECTOR

! The participation of women in SSI sector

has been identified in three different roles

in the Third All India Census of SSIs. Some

women were owners of enterprises, some

were managers of enterprises and some

were employees. With regard to

ownership, an SSI or a Small Scale

Service and Business (Industry Related)

Enterprises (SSSBEs) 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 than 51 % as partners/ share

holders/ Directors of Private Limited

Company/ Members of Co-operative

Society is called a ‘Woman Enterprise’.

! The total number of women enterprises

in the total 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 %).

! About 13 % of the women enterprises

were in the registered SSI sector and the

remaining 87 % were in the unregistered

SSI sector. With regard to the enterprises

managed by women, 11.5 % were in the

registered SSI sector and 88.5 % were

in the unregistered SSI sector.

! 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%.

74

! The total number of female employees in

the SSI sector is estimated at 33,17,496.

About 57.62 % of the female employees

were employed in the SSI units located

in the States of Tamil Nadu, Kerala,

Karnataka, West Bengal and Andhra

Pradesh.

! The proportion of female employees in

the total employment in the SSI sector

was of the order of 13.31 %. In the States

of Mizoram, Orissa, Karnataka, Goa,

Lakshadweep, Kerala, Tamil Nadu and

Pondicherry, the share of women

employment was significantly higher

(more than 20 %) compared to the total

employment in the respective State.

3.0 TRAINING OF WOMENENTREPRENEURS

Various institutes working under SIDO,

conduct need based training programmes for

existing and prospective women entrepreneurs.

1500 women participated in these training

programmes i.e. Industrial Motivational

Campaign, Entrepreneurship Development

Programmes and Management Development

Programmes, conducted by SISIs through out

the country, by the end of December, 2004.

4.0 WOMEN EMPOWERMENTUNDER IID SCHEME

! Association of Lady Entrepreneurs of

Andhra Pradesh (ALEAP), an NGO

comprising of women members only, has

successfully completed the

implementation of an IID project at

Gajularamaram, Distt. Rangareddy,

Andhra Pradehs. 64 units have been

established by women entrepreneurs

providing employment to 1400 persons.

In all 108 women entrepreneurs will be

benefited from this project. Out of the total

project cost of Rs. 347 lakh, Government

of India provided grant to the tune of Rs.

139 lakh.

! Another IID project at Vijyawada, Distt.

Krishna, Andhra Pradesh is being

implemented by ALEAP at a project cost

of Rs. 370 lakh. Government of India

grant of Rs. 52.33 lakh has been released

for this project. 123 small and tiny units

are expected to come up in this IID Centre

when completed.

5.0 TRADE RELATED ENTRE-PRENEURSHIP ASSISTANCEAND DEVELOPMENT(TREAD) FOR WOMEN

Recognizing the need for economic

empowerment of women in rural/urban areas

particularly those, who have low education and

minimal means of accessing the assistance

from the developmental agencies while

pursuing their entrepreneurial initiatives for self-

employment in non-farm sector, “Trade Related

Entrepreneurship Assistance & Development”

(TREAD) scheme is being implemented.

The Scheme envisages development of

micro/tiny enterprises in the country both in the

urban and in the rural areas. The main objective

75

of the Scheme is to empower women

economically through development of their

entrepreneurial skills by eliminating constraints

faced by women in matters of trade.

Under the Scheme, there is a provision

for assistance in the form of loans, grants, trade

related training, trade information, counselling

and extension activities relating to product and

market development for women entrepreneurs

in non-farm sector, in a group mode through

reputed Voluntary Organizations (VOs), Non-

Governmental Organizations (NGOs) and Self

Help Groups (SHGs).

The scheme has three components

i) To provide assistance to the women

entrepreneurs through VOs/NGOs/SHGs

for non- farm entrepreneurial activity.

ii) To build up capacity of Entrepreneurship

Development Institutions like National

Institute for Small Industry Extension &

Training (NISIET), Hyderabad, Small

Industries Service Institutes (SISIs), State

Level EDIs etc. who will be provided

financial support in the form of

maintenance grant.

iii) To create Entrepreneurship Development

Training facility in NGOs for which the

financial support will be given for

conducting the training programmes.

Under the Scheme, the VOs, NGOs/

SHGs with the requisite experience in micro

credit, prepare project proposals on behalf of

individual women, and submit the proposals to

Financial Institution in the prescribed form.

Based on the Financial Institution’s appraisal

the project proposal is vetted by the Office of

the DC (SSI) for final approval and release of

grant up to a maximum of 30% of project cost

to NGOs. The remaining amount is to be

provided by the Financial Institution as a loan.

76

Chapter IX

USE OF OFFICIAL LANGUAGE

1.0 Hindi is the Official Language of the Union

of India and the Government policy is aimed at

increasing progressive use of Hindi in official

work. Effective steps were taken during the year

in the Ministry of Small Scale Industries to

ensure the compliance of the 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

2.0 COMPLIANCE OF THE PRO-VISIONS OF THE OFFICIALLANGUAGE ACT, 1963

All documents such as resolutions,

general orders, rules, licenses under Section

3(3)of the Official Language Act and all papers

laid on the Table of the Houses of Parliament

were issued bilingually i.e. in Hindi and English.

The Ministry is already notified under the Official

Language Rule 10(4).

3.0 REPLIES TO LETTERS INHINDI

All letters received in Hindi were replied

in Hindi only.

4.0 CORRESPONDENCE IN HINDI

Letters to State Government, Union

Territory and Central Government offices

located in regions ‘A’ and ‘B’ were issued in

Hindi, to the maximum extent possible.

Similarly, efforts were also made to send letters

in Hindi to Central Government offices located

in region ‘C’, as per the targets laid down in

the annual programme.

5.0 SECTIONS SPECIFIED FORWORKING IN HINDI

The sections of the Ministry, notified for

doing cent percent work in Hindi, are working

satisfactorily.

6.0 MONITORING AND INSPEC-TIONS

In order to ensure compliance of the

Official Language policy, there is constant

monitoring and review of the progress reports.

During the year, six Sections of the Ministry

have been inspected , to ensure use of Hindi

and compliance of the Official Language

policy.

77

7.0 TRAINING OF OFFICIALS

All officials of the Ministry, have already

been trained in Hindi typing and stenography.

8.0 USE OF MECHANICAL AIDS

As per provisions of Official Language

Act, bilingual facilities have been provided on

office equipments in the Ministry. Computers

and terminals have also been installed with

facility to work in Hindi.

9.0 HINDI MONTH

Hindi month was celebrated from 1

September to 30 September, 2004 in the

Ministry. To encourage and motivate the

employees for doing maximum official work

in Hindi, various competitions in Hindi, were

organized during this period, in Hindi typing,

Hindi stenography, debate in Hindi, Hindi

essay and noting and drafting in Hindi. A

large number of officers and employees

participated in it with great enthusiasm. On

the occasion of Hindi Month, the messages

of the Hon’ble Home Minister and the

Cabinet Secretary were circulated for

information and compliance. The prize

distribution ceremony was organised on 1

February 2005 and prizes were distributed

by the Hon’ble Minister (SSI&ARI).

Secretary(SSI&ARI) was also present on the

occasion.

Prize distribution ceremony

78

Chapter X

VIGILANCE MATTERS

1.0 The vigilance unit of the Ministry is headed

by a Chief Vigilance Officer (CVO) of the rank of

Joint Secretary, Ministry of Small Scale Industries

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 given by the Vigilance Desk of

the Department of Industrial Policy & Promotion

(DIPP), as Ministry of SSI being a newly

established Ministry does not have its own

independent vigilance unit. The vigilance unit

is, inter-alia, responsible for the following:

! identification of sensitive areas prone to

malpractices/temptations and taking

preventive measure 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

same;

! furnish of 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;

! obtain second stage advice of the CVC,

wherever necessary; and

! obtain advice of the Union Public Service

Commission (UPSC) in regard to the

nature and quantum of penalty to be

imposed, wherever necessary.

2.0 SMALL INDUSTRIES DEVE-LOPMENT ORGANISATION

The Vigilance Unit in the office of the

Development Commissioner (Small Scale

Industries), New Delhi, is headed by a CVO of

the rank of Director appointed on the advice of

the Central Vigilance Commission(CVC), with

full complement of staff under him. CVO is also

responsible for all the field offices of the SIDO.

3.0 NATIONAL SMALL INDUS-TRIES CORPORATION, NEWDELHI (NSIC)

It is the only public sector undertaking

under the Ministry of Small Scale Industries,

and has its own Part time CVO appointed on

the advice of the CVC.

79

4.0 Preventive vigilance continues to receive

priority attention with primary emphasis on

identification of areas sensitive/ prone to

malpractices and temptation. The guidelines/

instructions etc. issued by the DoPT and

CVC from time to time in this regard are

followed. Action taken inter-alia 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 etc.

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 being kept on liaison men

and on other persons. The Departmental

security instructions are reiterated from

time to time for streamlining the entry 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.

80

Chapter XI

CITIZENS’ CHARTER

1.0 This Charter is a declaration of the

Ministry, incorporating policies, missions,

commitments for the small scale entrepreneurs

and for the people of India in general.

2.0 MINISTRY OF SSI

The Ministry of Small Scale Industries

(SSI) is responsible for designing and

formulation of policy, for promoting the growth

of small scale enterprises in the country. The

actual implementation of the policy is done

by the Ministry’s field organizations like Small

Industry Development Organization (SIDO)

through their Small Industries Service

Institutes (SISI), National Small Industries

Corporation Ltd. (NSIC) etc. The

Organizations of the Ministry have their own

Citizen’s Charter.

3.0 OUR MISSION

Our mission is to support the Small Scale

Industries (SSI) by way of advocacy with the

various organizations of Government, by

providing services to support the growth

development of small scale enterprises and

by management of programmes through

Government and Non-Government

Organizations, for the benefit of small scale

industries. The objective is to promote aid and

foster growth of SSIs, by providing them

institutional support in the areas of marketing,

export, technology upgradation, training and

common facilities services. We aim at providing

prompt services/training needs to citizens

through our field agencies like Small Industry

Development Organization and the National

Small Industries Corporation, so that the growth

of the SSIs is enhanced, quality of production

is improved and more employment

opportunities are generated.

4.0 OUR VALUES

The Ministry is committed to efficient and

prompt service with transparency and courtesy

in dealing with citizens.

5.0 OUR COMMITMENT

The Ministry will be dutiful, disciplined and

will respect the right of entrepreneurs and SSI

Associations. The Ministry will maintain and

uphold the confidentiality of personal and

business information disclosed to it by citizens.

To continuously review the provisions and

enforcement of laws and regulations in

81

consultation with SSI associations and other

groups which help the SSI units.

6.0 STANDARD FOR GENERALPROCEDURE

The letters received by the Ministry will

be acknowledged in 15 days.

7.0 RESPONSIBILITIES OF OURCITIZEN

The Ministry expects continuous feed

back from the citizen on the quality of the

services provided to them and on areas in which

improvements are expected.

8.0 ASSESSING PERFORMANCE

The Ministry will share its performance

with citizens through the media. The Ministry

will hold independent surveys on perceptions

of citizens and assessment of its performance.

9.0 GUIDANCE AND HELP

The information and facilitation counter

of the Ministry located on the ground floor, Gate

No.4, Nirman Bhavan, New Delhi provide infor-

mation on the services and activities of the Minis-

try and related organizations of the SSI sector.

10.0 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 number and fax number of the

Information and Facilitation Counter and the

Grievance Cell are as follows:

11.0 IMPORTANT ADDRESSESWEBSITES ADDRESS

(2) Grievance Cell

Dy. Secretary

Ministry of SSI

Room No.124 -D

Udyog Bhavan

New Delhi - 110011

Tel. No. 23015543

No. 011-23010886 (fax)

(2) Information and Facilitation Counter

Gate No.4, Ground Floor

Nirman Bhavan

New Delhi-110 011.

Tel.No.23019219

www.ssi.nic.in - Ministry of SSI

www.laghu-udyog.com - SIDO

www.nsicindia.com - NSIC

www.niesbud.com - NIESBUD

www.nisiet.com - NISIET

www.iie.nic.in - IIE

82

FACTS AT A GLANCE

S. Year Total Fixed Production (Rs crore) Employment Exports

No. SSI Units Investment Current Constant (lakh persons) (Rs.

(numbers (Rs. crore) Prices Prices crore)

in lakh) (1993-94)

1 1990-91 67.87 93555 63518 68295 158.34 9664

2 1991-92 70.63 100351 73072 79180 165.99 13883

(4.07) (7.26) (15.04) (15.94) (4.83) (43.66)

3 1992-93 73.51 109623 85581 93523 174.84 17784

(4.07) (9.24) (17.12) (18.11) (5.33) (28.10)

4 1993-94 76.49 115795 98804 98804 182.64 25307

(4.07) (5.63) (15.45) (5.65) (4.46) (42.30)

5 1994-95 79.60 123790 122210 109116 191.40 29068

(4.07) (6.9) (23.69) (10.44) (4.79) (14.86)

6 1995-96 82.84 125750 148290 121649 197.93 36470

(4.07) (1.58) (21.34) (11.49) (3.42) (25.46)

7 1996-97 86.21 130560 168413 135380 205.86 39248

(4.07) (3.82) (13.57) (11.29) (4.00) (7.62)

8 1997-98 89.71 133242 189178 147824 213.16 44442

(4.07) (2.05) (12.33) (9.19) (3.55) (13.23)

9 1998-99 93.36 135482 212901 159407 220.55 48979

(4.07) (1.68) (12.54) (7.84) (3.46) (10.21)

10 1999-2000 97.15 139982 234255 170709 229.10 54200

(4.07) (3.32) (10.03) (7.09) (3.88) (10.66)

11 2000-01 101.1 147348 261289 184428 239.09 69797

(4.07) (5.26) (11.54) (8.04) (4.36) (28.78)

12 2001-02 105.21 154349 282270 195613 249.09 71244

(4.07) (4.75) (8.03) (6.06) (4.18) (2.07)

13 2002-03 109.49 162533 311993 210636 260.13 86013

(4.07) (5.30) (10.53) (7.68) (4.43) (20.73)

14 2003-04 113.95 170726 357733 228730 271.36 NA

(4.07) (5.04) (14.66) (8.59) (4.32)

Note (1) Figures in brackets show the percentage growth over the previous year.

(2) The production, at constant prices for the year 2003-2004, is based on the growth rate achieved

in the first three quarters of 2003-2004 (i.e. April- December, 2003).

(3) The production at current prices is compiled on the basis of average Wholesale Price Index

(April-December, 2003) of manufactured products.

83

84

ACRONYMS

ARI Agro and Rural Industries

CAD Computer Aided Design

CAM Computer Aided Manufacturing

CFTI Central Footwear Training Institute

CGFS Credit Guarantee Fund Scheme

CLCSS Credit Linked Capital Subsidy

Scheme

CNC Computerized Numerical Control

DC (SSI) Development Commissioner (Small

Scale Industries)

EDP Entrepreneurship Development

Programme

FTS Field Testing Station

IDTR Indo-Danish Tool Room

IGTR Indo-German Tool Room

IID Integrated Infrastructural Develop-

ment

IIE Indian Institute of Entrepreneurship

ISO International Organisation for

Standardization

LUCC Laghu Udyami Credit Card

MDA Market Development Assistance

MDP Management Development

Programme

NEF National Equity Fund

NIESBUD National Institute for Entrepreneur-

ship and Small Business

Development

NISIET National Institute of Small Industry

Extension Training

NSIC National Small Industries Corpo-

ration Limited.

NTSC National Small Industries

Corporation Technical Service

Centre

PMRY Prime Minister’s Rozgar Yojana

PPDC Process-cum-Product Develop-

ment Centre

RTC Regional Testing Centre

SDP Skill Development Programme

SENET Small Enterprise Information and

Resource Centre Network

SEPTI Small Entrepreneurs Promotion

and Training Institutes

SIDO Small Industries Development

Organisation

SME Small and Medium Enterprises

SSI Small Scale Industries

TDMF Technology Development Moderni-

sation Fund

TRC Technology Research Centre

TREAD Trade Related Entrepreneurship

Assistance and Development for

Women

TRTC Tool Room and Training Centre

VDP Vendor Development Programme

WTO World Trade Organisation

UNIT

1 Crore 10 Million

10 Lakh 1 Million

1 Lakh 100 Thousand