1 AN OVERVIEW 1.1.0 BACKGROUND 1.1.1 The small scale industries (SSI) constitute an important segment of the Indian economy in terms of their contribution to the country’s industrial production, exports, employment and creation of an entrepreneurial base. The Government established the Ministry of Small Scale Industries and Agro and Rural Industries (SSI & ARI) in October, 1999 as the nodal Ministry for formulation of policies and Central sector programmes/schemes, their implementation and related co-ordination, to supplement the efforts of the States for promotion and development of these industries in India. The Ministry of SSI & ARI was bifurcated into two separate Ministries, namely, Ministry of Small Scale Industries and Ministry of Agro and Rural Industries in September, 2001. 1.1.2 The role of the Ministry of Small Scale Industries is thus to mainly assist the States in their efforts to promote growth and development of the SSI, enhance their competitiveness in an increasingly market-led economy and generating additional employment opportunities. In addition, the Ministry attempts to address issues of country-wide common concerns of this segment and also undertake advocacy on behalf of the SSI for this purpose. The specific schemes/programmes undertaken by the organisations of the Ministry seek to facilitate/ provide one or more of the following: l adequate credit from financial institutions/ banks; l funds for technology upgradation and modernisation; l integrated infrastructural facilities; l modern testing facilities and quality certification laboratories; l access to modern management practices and skill upgradation through appropriate training facilities; l assistance for better access to domestic and export markets; and l cluster-wide measures to promote capacity-building and empowerment of the units and their collectives, in addition to all or some of the above-mentioned supports. 1.2.0 ORGANISATIONS OF THE MINISTRY 1.2.1 The formulation and implementation of the policies and programmes/projects/ schemes is undertaken by the Ministry with the assistance of its attached office and public Chapter I
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2005-2006
GOVERNMENT OF INDIAMINISTRY OF SMALL SCALE INDUSTRIES
Contents
Chapter I Page No.
An Overview_______________________________________________________________1
Chapter II
Small Industry Development Organisation (SIDO)_________________________________ 5
Chapter III
National Small Industries Corporation Ltd.______________________________________ 42
Chapter IV
Training and Entrepreneurship Development____________________________________ 50
Chapter V
National Commission for Enterprises in the Unorganised Sector (NCEUS)____________ 61
Chapter VI
International Cooperation___________________________________________________ 64
Chapter VII
Activities in the North Eastern Region__________________________________________70
Chapter VIII
Development Activities for Women____________________________________________72
Chapter IX
Use of Official Language____________________________________________________ 76
available credit to the 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 accordance with the
Comprehensive Policy Package on SSI
announced 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.
38
2.23.2 The scheme covers collateral free
credit facility (term loan and/or working capital
including non fund based working capital)
extended by eligible lending institutions to new
and existing SSI units as well as Small Scale
Service and Business (Industry related)
Entities (SSSBEs) including Information
Technology and Software Industry up to Rs.
25 lakh per borrowing unit. The guarantee
cover would be up to 75% of the credit,
subject to maximum guarantee limit of Rs.
18.75 lakh. However, the Member Lending
Institutions (MLIs) are allowed to extend
additional credit facilities against collateral
security and/or third party guarantee to the
borrowers already covered under the scheme
in those cases where the credit facility already
covered under the scheme has reached the
ceiling of Rs. 25 lakh. The lending institutions
availing of guarantee from the Trust have to
pay one time guarantee fee of 2.5% and
service fee of 0.75% per annum of the credit
facility sanctioned by the lending institution to
the borrower. Further, as announced in the
“Policy Package for Stepping up Credit to
Small and Medium Enterprises”, 2005, the
guarantee fee has been reduced from 2.5%
to 1.5% for the following categories of loans/
borrowers:
(a) All loans up to Rs. 2.00 lakh.
(b) All eligible women entrepreneurs.
(c) All eligible borrowers located in the NE
region including Sikkim and in Jammu &
Kashmir.
Further, Public Sector Banks will be encouraged
to absorb the annual service fee in excess of
0.25% for all borrowers mentioned in categories
(a) to (c).
2.23.3 The Credit Guarantee Scheme was
initially approved for one year with a corpus of
Rs. 125 crore contributed by the Government
of India and SIDBI in the ratio of 4: 1.
Subsequently, the Government decided to
continue the scheme beyond one year. The
corpus of CGTSI has been enhanced to Rs.
1056.55 crore with the contribution of Rs. 845.24
crore from the GoI and Rs. 211.31 crore from
SIDBI.
2.23.4 As on 30th November 2005, 52 eligible
institutions comprising 28 Public Sector Banks,
10 Private Sector Banks, 11 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 in
the Credit Guarantee Scheme. 34552 proposals
were approved for guarantee cover for
aggregate credit of Rs. 790.47 crore.
2.24.0 MICRO FINANCEPROGRAMME
2.24.1 The Government launched the revised
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 contributing to the
security deposits required from the MFIs/NGOs
to get loan from SIDBI. The Government of India
39
provides funds for Micro Finance Programme
to SIDBI under ‘Portfolio Risk Fund’ (PRF). This
fund is used for security deposit requirement of
the loan amount from the MFIs/NGOs. At
present, SIDBI takes fixed deposit equal to 10%
of the loan amount. The share of MFIs/NGOs
would be 2.5% of the loan amount (i.e., 25% of
the security deposit) and balance 7.5% (i.e., 75%
of the security deposit) is adjusted from the
funds provided by the Government under the
PRF.
2.24.2 As on 30th
November 2005, the
Government has released an amount of Rs. 225
lakh towards PRF, which has been fully utilized
by SIDBI. The funds under PRF are utilised for
extending loans in the hitherto underserved
States like North Eastern States including
Sikkim, Bihar, Jharkhand, West Bengal, Orissa,
Madhya Pradesh, Chattisgarh, Uttar Pradesh,
Jammu & Kashmir, Rajasthan and Uttaranchal.
As on 30th November 2005, cumulative loan
amount of Rs. 34.66 crore has been provided
to MFIs/NGOs under the scheme, thereby
benefiting 1,64,434 persons.
2.25.0 CREDIT LINKED CAPITALSUBSIDY SCHEME(CLCSS)
2.25.1 The Government has been operating
a scheme for technology upgradation for the SSI
called the Credit Linked Capital Subsidy
Scheme (CLCSS). The Scheme aims at
facilitating technology upgradation by providing
upfront capital subsidy to SSI units, including
agro & rural industry units, on institutional
finance (credit) availed of by them for
modernisation of their production equipment
(plant and machinery) and technology. Existing
SSI units registered with the State Directorates
of Industries, which upgrade with the state- of
-the -art technology, with or without expansion
as well as new SSI units which are registered
with the State Directorate of Industries and
which set up their facilities only with the
appropriate eligible and proven technology are
eligible.
2.25.2 The Scheme was launched on
1st October, 2000 for a period of five years or till
the sanction of capital subsidy reached Rs. 600
crore, whichever was earlier. The Small
Industries Development Bank of India (SIDBI)
and the National Bank for Agriculture and Rural
Development (NABARD) are the two nodal
agencies for implementing this Scheme, credit
being made available through eligible Primary
Lending Institutions (PLIs). Eligible PLIs include
scheduled commercial banks, eligible
cooperative banks (other than urban
cooperative banks), eligible Regional Rural
Banks (RRBs), National Small Industries
Corporation (NSIC), State Financial
Corporations (SFCs) and North Eastern
Development Financial Institution (NEDFi).
2.25.3 The guidelines of the Scheme have been
revised from time to time by the Governing and
Technology Approval Board (GTAB) of CLCSS
to include more sub-sectors/products and
improved technologies under the Scheme. List
of 45 approved sub-sectors/products under
the current CLCSS guidelines is as under:
40
(1) Bio tech Industries
(2) Common Effluent Treatment Plants
(3) Corrugated Boxes
(4) Drugs and Pharmaceuticals
(5) Dyes and Intermediates
(6) Industries based on Medicinal and
Aromatic Plants
(7) Plastic Moulded/ Extruded Products and
Parts/ Components
(8) Rubber Processing including Cycle/
Rickshaw Tyres
(9) Food Processing (including Ice Creams)
(10) Poultry Hatcheries & Cattle Feeds
(11) Dimensional Stones (excluding quarrying
and mining)
(12) Glass and Ceramics, including Tiles
(13) Leather and Leather Products, including
Footwear and Garments
(14) Electronic Equipment, viz., Test,
Measuring, Assembly/Manufacturing,
Industrial Process Control; Analytical,
Medical, Electronic Consumer &
Communication, etc.
(15) Fans & Motors
(16) General Light Service (GLS)
(17) Information Technology (Hardware)
(18) Mineral Filled Sheathed Heating Elements
(19) Transformers/Coils/Chokes, including
Solenoid Coils
(20) Wires & Cables
(21) Auto Parts and Components
(22) Bicycle Parts
(23) Combustion Devices/Appliances
(24) Forgings & Hand Tools
(25) Foundries – Steel and Cast Iron
(26) General Engineering Works
(27) Gold Plating and Jewellery
(28) Locks
(29) Steel Furniture
(30) Toys
(31) Non-Ferrous Foundries
(32) Sport Goods
(33) Cosmetics
(34) Readymade Garments
(35) Wooden Furniture
(36) Mineral Water Bottles
(37) Paints
(38) Agricultural Implements and Post Harvest
Equipment
(39) Beneficiation of Graphite and Phosphate
(40) Khadi and Village Industries
(41) Coir and Coir Products
(42) Steel Re-rolling and/or Pencil Ingot Making
(43) Zinc Sulphate
(44) Welding Electrodes
(45) Sewing Machines
2.25.5 The amount of subsidy sanctioned
during 2001-02 and 2005-06 (April - November,
2005) is Rs. 24.09 crore (approx.). However, most
of it (Rs. 13.6 crore approx.) has been sanctioned
during 2004-05. The year-wise amount of
subsidy disbursed and number of units
assisted under the Scheme are given below:
41
2.25.6 To accelerate the pace of implementa-
tion of the Scheme and in the light of the experience
gathered in implementing the Scheme, the on-
going CLCSS has been amended:
Year No. of units Amount of
assisted sanctioned subsidy
(Rs. lakh)
2001-02 9 21.36
2002-03 47 93.96
2003-04 150 374.90
2004-05 526 1359.78
2005-06* 203 559.46
Total 935 2409.46
* April-November 2005
(a) to raise the ceiling on loans under the
Scheme from Rs. 40 lakh to Rs. 1 crore;
(b) to raise the rate of capital subsidy from
12 per cent to 15 per cent;
(c) to calculate the admissible capital
subsidy with reference to the purchase
price of plant and machinery, instead of
the term loan disbursed to the beneficiary
unit;
(d) to do away with the practice of
categorisation of SSI units into slabs on
the basis of their present investment for
determining the eligible subsidy; and
(e) to extend the validity of the Scheme upto
31st March, 2007.
Shri Pranab Mukherjee, Defence Minister inaugurating the National Expo of Small Agro & Rural Industries
42
3.1.0 National Small Industries
Corporation Limited (NSIC) has completed
50 years of its service to the small
enterprises. During this period, the
Corporation provided a wide range of
services to the SSI sector, in the fields of
marketing, equipment financing, technology
upgradation, exports, training and common
facilities. Over these five decades of,
growth, development and transition, NSIC
has proved its strength within the country
and abroad by promoting modernisation,
quality consciousness, strengthening of
linkages of the small with large, medium
enterprises and enhancing exports of the
SSI sector.
3.1.1 NSIC carries forward its mission to
assist small enterprises with a set of schemes
designed to put them in a competitive and
advantageous position, after drawing lessons
from the result of the schemes implemented in
the past on its own overall financial health. The
schemes now comprise facilitating marketing
support, credit support, technology support and
other support services.
NATIONAL SMALL INDUSTRIESCORPORATION LTD.
3.2.0 ORGANISATIONAL SET -UP
The Corporation is manned by a team of
professionals at different levels and delivers its
assistance through:
� 6 Zonal Offices located at Mumbai,
Chennai, Kolkata, Hyderabad, Delhi and
Noida.
� 27 Branch Offices and 19 Sub-Offices
over 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 Software Technology Parks – one at
Okhla, New Delhi and the other at
Chennai.
� 2 Offices outside India – at Dubai
(UAE) and Johannesburg (South
Africa).
Chapter III
43
3.3.0 SCHEMES OF THECORPORATION
3.3.1 Marketing Services
Marketing is critical to the growth and survival
of small enterprises in today’s intensely
competitive market. NSIC acts as a facilitator
to promote SSI products and has devised a
number of schemes to support small
enterprises in their marketing efforts, both within
and outside the country. These schemes are
briefly described below:
� Consortia and Tender Marketing: In their
individual capacity, small enterprises face
problems to procure and execute large
orders, which inhibit their growth as well
as graduation. NSIC, accordingly, forms
consortia of units manufacturing the
same products, explores the market and
secures orders for bulk quantities. These
orders are then distributed among the SSI
units in tune with their production capacity.
Testing facilities are also provided to help
these units ensure that the quality of their
products conforms with the standard
specifications.
� Single Point Registration for Government
Purchases: NSIC operates a Single Point
Registration Scheme, wherein the
registered SSI units get purchase
preference in Government purchases.
The units registered under this scheme
get the following facilities :
� Advance intimation of tenders
issued by DGS&D.
� Issue of tender sets free of cost.
� Exemption from payment of earnest
money deposit.
� Waiver of security deposit up to the
monetary limit for which the unit is
registered.
� Issue of competency certificate in
case the value of an order exceeds
the monetary limit, after due
verification.
� Exhibitions and Technology Fairs: To
showcase the competencies of the SSI
and to enhance their market access,
NSIC participates in select International
and National Exhibitions and Trade Fairs
every year and facilitates participation
of the small enterprises by providing
them concessions in rentals, etc.
Participation in these events exposes
the SSI units to international practices
and enhances their marketing
prospects.
� Export of Products and Projects: NSIC
facilitates exports of products and
projects of the SSI to other countries. The
major areas of operation are:
� Export of products such as
handicrafts, leather items, hand
tools, pipes/fittings, builders’
hardware, etc.
� Supply of small industry projects on
turnkey basis.
� Export of IT solutions from India.
44
3.3.2 Financing
� Facilitation of Finance through
Commercial Banks: In order to ensure
smooth credit flow to small enterprises,
NSIC has entered into strategic alliances
with commercial banks for providing long-
term/working capital financing of the small
enterprises across the country. The
arrangement envisages forwarding of
loan applications of the interested small
enterprises by NSIC to the banks for
sanction of loans.
� NSIC also provides limited finance for
equipment and in addition financing for
procurement of raw material and
marketing activities (short term)
3.3.3 Technology Services
Technology is the key to enhancing a company’s
competitive advantage. Small enterprises need
to develop and implement suitable technology
strategy, in addition to financial, marketing and
operational strategies, and adopt that which
helps integrate their operations with their
environment, customers and suppliers.
NSIC offers small units the following support
services through its Technical Services Centres
and Extension Centres:
Advising on application of new techniques
� Material testing facilities through
accredited laboratories.
� Product design including CAD/CAM.
� Common facility support in machining,
EDM, CNC, etc.
3.3.4 Support Services
� Infomediary Services
Information plays a vital role in the success of
any business. Recognising the importance of
information and its relevance to the SSI units,
NSIC provides Infomediary Services to small
units. Besides hosting a web site
(www.nsic.co.in), NSIC hosts sector specific
portals for focused information dissemination.
Under this scheme, small units can become
members and avail of a number of value-added
services. Some important services are:
� Supplier database.
� Market intelligence database.
� Energy and environment services at
selected centres.
� Classroom and practical training for skill
upgradation.
NSIC Technical Services Centres are
located at the following places:
Location Focus area
Chennai Leather & footwear
Howrah General engineering
Hyderabad Electronics & computer
application
New Delhi Machine tools & related
activities
Rajkot Energy audit & energy
conservation activities
Rajpura Domestic electrical appliances
Aligarh Lock cluster & die and tool
making
45
� Technology providers’ database.
� Information providers’ database.
� Linkages with relevant institutions.
� E to E services.
� E to B services.
� Value additions like database/
directories on who makes machines,
who makes components, spare
capacity bulletin boards, discussion
forums, virtual exhibitions, etc.
� Mentoring and Advisory Services
Inadequate management skills are often the
cause of non-performance of small enterprises.
NSIC’s mentoring and advisory services are
aimed at addressing this impediment to growth.
It offers mentor-mentee relationship in which the
mentor, a person with wide experience in
running his own business, provides his services
to an individual or a group of units. An advisor, a
senior professional, generally retired and a
specialist in a specific area assists in the
process. Mentors and advisors provide the
necessary professional and moral support in
the early lifecycle of an enterprise or to existing
units facing critical operational problems.
� Performance and Credit Rating
Scheme for Small Industries
To enable small enterprises to diagnose the
strength and weaknesses of their existing
operations and take corrective measures to
enhance their organisational strengths, a need
was felt for introducing a Rating Scheme
specially designed for the small enterprises.
The Rating Scheme seeks to encourage the
small enterprise increase their productivity,
since a good rating would enhance their
acceptability in the market and also make
access to credit quicker and cheaper and thus
help reduce the cost of credit. Besides, the
rating would also infuse a sense of confidence
amongst the buyers of SSI products. With
these objectives, Government of India has
appointed NSIC as the implementing agency to
operate the Performance and Credit Rating
Scheme for small enterprises. The scheme is
being operated through accredited rating
agencies in the country like CARE, CRISIL,
D&B, FITCH, ICRA and ONICRA. Government
provides financial assistance to small
enterprises to the extent of 75 per cent of the
cost of rating, subject to a maximum of
Rs. 40, 000.
� Software Technology Parks
NSIC Software Technology Parks (STPs)
facilitate small industries in setting up 100 per
cent export-oriented units for software exports.
They also act as nodal points to activate
software exports directly through NSIC. These
STPs extend support in terms of the requisite
infrastructure to the SSI units to start business
operations with a minimum lead time. The
scheme is governed by the STPI regulations of
the Department of Information Technology,
Government of India. NSIC established the first
STP at Okhla, New Delhi in 1995 and second
in Chennai in 2001. Several small scale units
have taken advantage of these parks and
contributed export earnings to the exchequer.
46
� International Consultancy Services
For the last five decades, NSIC has acquired
various skill sets in the development process
of small enterprises. These skills are being
networked to offer consultancy services for
other developing countries. This activity was
started during 2004-05 and is expected to
occupy a place in the future service profile of
the Corporation. The areas of consultancy are
as listed below:
� Capacity Building
� Policy & Institutional Framework
� Entrepreneurship Development
� Business Development Services
3.4.0 HUMAN RESOURCEDEVELOPMENT &TRAINING
Human resource is the essence in any
organisation. In order to keep abreast with the
changing technology and advancements in
various fields, the Corporation strived to keep
its human resource current with 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 fulfil the identified needs.
Besides, a number of officials were also
nominated for domestic training programmes,
seminars and workshops conducted by
professional bodies like FICCI, CII, NIESBUD,
SCOPE, NISIET, Associated Chambers of
Commerce & Industry of India, Indo African
Society, WASME, IMA, CBI Academy, FIEO,
ASSOCHAM, Institute of Socio Economic
Research & Action, Indian Machine Tool
Manufacturers Association, Logic Consultants
(P) Ltd. and PHD Chamber of Commerce and
Industry.
3.5.0 MAJOR EVENTS DURING2005-06
� Techmart India’ 2005 (14-27
November, 2005)
NSIC organised Techmart India ’2005, the
13th International Technology Fair coinciding with
Shri Mahabir Prasad, Hon’ble Union Minister of SSI and ARIpaid a visit to Techmart India 2005. Accompanying the Hon’ble
Minister are Shri H.P. Kumar, CMD, NSIC and Shri C.Jose,Chairman, Coir Board
47
India International Trade Fair at Pragati Maidan,
New Delhi. The event was sponsored by the
Ministry of SSI.
13th series of Techmart India’ 2005, received
tremendous response from trade and
industry. More than 230 units, including those
in the North Eastern Region, participated in
the event.
“North East Panorama”, a special display of
products from the North Eastern States, was
organised as part of Techmart India’ 2005 to
provide marketing opportunities to them.
Some of the items displayed were powder
coating machines, automatic filling & packaging
machines, tool room machines, pumps &
motors, abrasives, decoilers, refractories,
testing machines, furnaces, auto parts, R.O.
systems and water purifiers, communications
systems, public address systems, hand tools,
corrugated roofing sheets, switches & other
electrical items, genset & grass cutting
machines, automatic papad and roti making
machines, gem stone drilling and polishing
machines, high pressure liquid purification
systems, etc.
Foreign delegates from Sri Lanka, South Africa,
Congo, Saudi Arabia, Nigeria, Russia, Mexico,
Spain, Zimbabwe, Mauritius, Cyprus and
Bahrain visited Techmart.
NSIC was awarded Gold Medal for “Special
Display of North East Sector” in IITF’ 2005.
� Buyer -Seller meets: Bulk and
Government departmental buyers such
as the Railways, Defence,
Communications and large companies
are invited to participate in buyer-seller
meets to enrich SSI unit’s knowledge
regarding terms and conditions, quality
standards, etc. required by these buyers.
These programmes are aimed at vendor
development from among SSI units for
the bulk manufacturers.
� Third Commonwealth India Small
Business Competitiveness Development
Programme (20 - 26 November, 2005)
National Small Industries Corporation, in
association with Commonwealth Secretariat,
London (COMSEC) has been hosting a series
of pan-Commonwealth institution building
programmes on Small Business
Competitiveness Development. These
programmes focus at building and developing
institutional capacity on competitive small
business policies and strategies for
Commonwealth developing states.
Shri Anupam Dasgupta, Secretary, Ministry of SSI & ARIinspecting the handicrafts exhibited by Woman Entrepreneurfrom Rajasthan in Techmart 2005. Also seen in the picture is
Shri H.P. Kumar, CMD, NSIC
48
Shri Mahabir Prasad, Hon’ble Union Minister of SSI and ARI is seen inaugurating the third Commonwealth-India Small BusinessCompetitiveness Development Programme organised by NSIC
NSIC organised a seminar on “Innovative Financing for Small Enterprise Development” on September 26, 2005 at New Delhi. Theseminar was the part of the “National Expo of Small, Agro and Rural Industries” organised by Ministry of SSI and ARI from
September 26 to 29, 2005 at New Delhi. Dr. Syeda Hameed, Member, Planning Commission inaugurated the seminar. Also seen inthe picture are Shri Anupam Dasgupta, Secretary, Ministry of SSI & ARI, Shri Satyanada Mishra, AS&DC SSI and Shri H.P. Kumar,
CMD, NSIC, Shri B.D. Narang, Former Chairman, Oriental Bank of Commerce, Shri C. Chandran, CEO, KVIC
49
The third programme in this series was held at
New Delhi during 20 – 26 November, 2005. The
theme of the programme was “Networking the
Commonwealth SMEs through sharing best
practices for enhanced competitiveness”. The
programme was inaugurated by Shri Mahabir
Prasad, Hon’ble Union Minister of SSI & ARI and
the keynote address was delivered by Shri
Anupam Dasgupta, Secretary to Government
of India, Ministries of SSI & ARI.
An Agreement on Mutual Cooperation was
also signed between NSIC and Pacific Islands
Forum Secretarial at the inaugural session of
the programme. The objective of this
agreement is to enhance the cooperation
between India and the Pacif ic Islands
countries in the development of their SME
activities.
50
4.0 Entrepreneurship Development and
Training is one of the key elements for
development of small scale industries,
particularly, the first generation entrepreneurs. The
Indian Institute of Entrepreneurship (IIE),
Guwahati; the National Institute of Small Industry
Seminars and Workshops 02 105 4 200 06 305Consultancy & Research 16 — 4 — 20 —
Total 220 7393 99 3210 319 10603
56
4.4.4 Research and Consultancy
During 2005-06, the Institute took up the
following research and consultancy projects:
� Study on Demand and Supply
Assessment of Ozone Deflecting
Substances in India, sponsored by the
Ministry of Environment and Forests,
Government of India.
� Technical Break-up Unit/Interface of KVIC.
� Handholding and Monitoring Services for
20 Clusters in the Country.
� Project on Crochet Lace Cluster at
Narsapur, West Godavari District, Andhra
Pradesh.
� Study on Curriculum Models for
Entrepreneurship Development,
sponsored by the Ministry of SSI,
Government of India.
� Study on Competency Mapping of Indian
SMEs for Global Promotion, sponsored
by the Ministry of SSI, Government of
India.
� Study on Self-sustainability of Information
Support Facilities in and around industrial
clusters (particularly of SMEs) sponsored
by the Department of Scientific and
Industrial Research, Government of India.
� Consultancy Services on Micro Enterprise
Mapping of Self-Help Groups in the
Districts of Rajasthan, sponsored by the
Rural Non-Farm Development Agency
(RUDA), Jaipur.
� Study on Entrepreneurship
Development Education in Professional
Colleges of select States in India,
sponsored by Ministry of SSI,
Government of India.
� Extending Escort Services for Setting up
of Industrial Units at Tribal Industrial
Estate, Cherlapally, Hyderabad,
sponsored by the A.P. Scheduled Tribes
Cooperative Finance Corporation Ltd.,
Andhra Pradesh.
� Promotion of Self-employment Activities
among the Tribal Youth in Andhra
Pradesh, sponsored by the A.P.
Scheduled Tribes Cooperative Finance
Corporation Ltd., Andhra Pradesh.
� Industrial Potential of Packaging
Industries at Visakhapatnam, Andhra
Pradesh, sponsored by the Municipal
Corporation of Visakhapatnam, Andhra
Pradesh.
� Evaluation of Training Programmes under
NORAD, sponsored by the Andhra
Pradesh Women’s Cooperative Finance
Corporation Ltd., Hyderabad.
� Evaluation of Schemes implemented by
Maulana Azad Arthik Vikas Mahamandal,
Mumbai.
� Preparation of Business Plan for
Handicraft Clusters, sponsored by
the Development Commissioner
(Handicrafts), Government of India.
4.4.5 NISIET Initiatives on ClusterDevelopment
4.4.5.1 NISIET initiatives in this field are
centred around handholding and monitoring
57
services, training, consultancy, research, etc.
NISIET has already trained Government
officials from States like Uttar Pradesh,
Andhra Pradesh, Kerala and the North
Eastern Region, and of financial institutions
like Andhra Bank, SBH, and customised
programmes for the officials of Canara Bank
and NABARD. As on date, NISIET is involved
in developing 21 clusters with the funding
support of Development Commissioner
(Small Scale Industries), Ministry of SSI
across the country.
4.4.5.2 Successful case studies are under
preparation highlighting usefulness of the
interventions in all the clusters. Preliminary
results have been encouraging, reflecting
sincere initiatives in the field by the CDEs and
the SISIs with active support by NISIET which
has emerged as a center of excellence to cater
to the needs of not only the SME clusters but
also rural & artisan clusters in the country.
NISIET is also working on preparation of
business plan for cluster development in
Handicrafts at the request of the Office of
Development Commissioner (Handicrafts),
Government of India.
4.4.6 Financial Performance
Income target fixed for the year is Rs. 605.30
lakh against which the actual income realised,
as on 30th November 2005 is Rs. 466.15 lakh.
The target for the year is expected to be achieved
by 31st March 2006.
4.5 NATIONAL INSTITUTEFOR ENTREPRENEURSHIPAND SMALL BUSINESSDEVELOPMENT(NIESBUD)
4.5.1 The National Institute for
Entrepreneurship & 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
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; maximising
benefits and accelerating the process of
58
entrepreneurship development; conducting
programmes for motivators, trainers and
entrepreneurs which are commonly not
undertaken by other agencies and organising
activities which help in developing an
entrepreneurial culture in the society.
4.5.2 During April - November, 2005, the
Institute has organised 16 training programmes
with 334 participants, as against of target of 32
training programmes for 2005-06.
4.5.3 11 training programmes as under
were organised for trainers/promoters, which
were attended by 195 persons:
(a). PRADAN (Professional Assistance for
Development Action), a five day
Accreditation Programme on
Entrepreneurship Motivation Training
(First Phase) for 18 professionals.
(b). On a request received from Uttar Pradesh
Industrial Consultancy Organisation
(UPICO), a one-week Awareness
Programme on Achievement Motivation.
(c). A special training programme on Capacity
Building for Field Functionaries – Project
Leaders and Field Officers – of
Chetanalaya, a Non-Governmental
Organisation doing considerable work for
Self Help Groups (SHGs) and Co-
operatives in urban areas.
(d). At the request of the Department of
Women and Child Welfare, Ministry of
Human Resource Development, a series
of 2 Sensitisation Programmes of 10 days
each, for Business Counsellors/
Consultants of Swa Shakti Project.
(e). A One-week Business Advisors’ Training
Programme, which was attended by
participants from the Directorate of
Industries; Government of Uttaranchal,
Coir Board and Union Ministry of Urban
Employment and Poverty Alleviation.
(f). A training programme on Planning &
Organising EDPs for the Faculty of
Apparel Training & Design Centre (ATDC)
which focused on familiarising the
participants with techniques of designing
EDPs; concept of behaviour objectives;
enterprise launching and enterprise
management competencies.
(g). A first-ever training programme on Small
Business Planning & Promotion, for
middle and senior management, attended
by participants drawn from Small
Industries Service Institutes (SISIs);
Grameen Bank; Maharashtra Centre for
Entrepreneurship Development; Ministry
of Urban Employment and Poverty
Alleviation, Government of India and Khadi
& Village Industries Commission.
(h). Institute’s first training programme on
Human Resources Development through
Entrepreneurship Training for national
participants, organised at Dev Sanskriti
University, Haridwar attended by
participants from Small Industries Service
Institutes (SISIs), Coir Board and
Commission of Khadi & Village Industries.
(i). 8th Trainers’ Training Programme on Project
Formulation and Appraisal attended by
participants from Small Industries Service
59
Institutes (SISIs) and the Directorates of
Industries of Bihar, Karnataka, Madhya
Pradesh, Nagaland and Delhi.
(j). 28th Accreditation Programme for
Motivational Trainers.
4.5.4 The Institute organised two
International Training Programmes during the
period. The Institute’s first six-week training
programme on Human Resource Development
through Entrepreneurship Training was
attended by participants from Myanmar, Bhutan,
Republic of Slovakia, Philippines and
Uzbekistan. The training programme on Small
Business Planning & Promotion was attended
by persons from Russia, the Philippines,
Myanmar, Iran, Iraq and Mozambique.
4.5.5 Under the National Entrepreneurship
Development Board (NEDB) Scheme, the
Institute was assigned the task of organising
10 Workshops on Gender Equity through
Enterprise Development, in association with
some Universities. The Institute organised three
such Workshops in association with Himachal
Pradesh University, Banaras Hindu University
and Aligarh Muslim University.
4.5.6 Research Assignments andPublications
4.5.6.1 During the year, the Institute carried out
the following research projects/studies and
submitted reports:
� Report of Research Study on “Project
Identification Practices Amongst
Entrepreneurs”, sponsored by the Ministry
of SSI.
� Report of the Evaluation Study of Science
& Technology Entrepreneurs Parks
(STEP) Projects – Punjab Women Dairy
Projects (Phase I & II), sponsored by the
Department of Women & Child
Development, Ministry of Human
Resource Development.
4.5.6.2 In addition, the Institute
� finalised the terms of reference with the
Department of Women & Child
Development, Ministry of Human
Resource Development; Government of
India for undertaking an Evaluation Study
of Mahila Dairy Vikas, Almora, Uttaranchal
sponsored by that Department under its
STEP Project;
� submitted proposals to the Small
Industries Development Organization
(SIDO) for undertaking two Research/
Evaluation Studies on Entrepreneurship
Development Programmes of SIDO and
Small Industries Service Institutes (SISIs)
and Branch SISIs; and
� was engaged as one of the Technical
Agencies under the Scheme of Fund for
Re-generation of Traditional Industries of
the Ministry of Agro & Rural Industries,
Government of India.
60
Programmes for International participants
Women Enterpreneurship Development Programme participants
61
5.1 The National Commission for
Enterprises in the Unorganised Sector
(NCEUS) was constituted on 20th September
2004 and consists of a Chairman, two full time
Members, one Member Secretary and three
part time Members. An Advisory Board
consisting of 10 eminent experts and activists
concerned with the unorganised sector was
also constituted to advise the Commission.
The Commission has been given the mandate
to examine the problems of the Unorganised
Sector (also referred to as Informal Sector)
and suggest measures to overcome them. The
term of the Commission, which was initially
fixed at one year, has been extended to three
years.
5.2 The following are the Terms of
Reference assigned to the Commission:
(1) Review of the status of unorganised/
informal sector in India including the nature
of enterprises, their size, spread and
scope and magnitude of employment.
(2) Identity constraints faced by small
enterprises with regard to freedom of
carrying out the enterprise, access to raw
NATIONAL COMMISSION FORENTERPRISES IN THE UNORGANISED
SECTOR (NCEUS)
Chapter V
materials, finance, skills,
entrepreneurship development,
infrastructure, technology and markets
and suggest measures to provide
institutional support and linkages to
facilitate easy access to them.
(3) Suggest the legal and policy environment
that should govern the informal/
unorganised sector for growth,
employment exports and promotion.
(4) Examine the range of existing
programmes that relate to employment
generation in informal/unorganised sector
and suggest improvement for their
redesign.
(5) Identify innovative legal and financial
instruments to promote the growth of the
informal sector.
(6) Review of the existing arrangements for
estimating employment and
unemployment in the informal sector and
examine why the rate of growth in
employment has stagnated in the 1990.
(7) Suggest elements of an employment
strategy focusing on the informal sector.
62
(8) Review Indian labour laws, consistent
with labour rights and with the
requirements of expanding growth of
industry and services particularly in the
informal sector and improving productivity
and competitiveness.
(9) Review the social security system
available for labour in the informal sector
and make recommendations for
expanding their coverage.
5.3 Task Forces Constituted byNCEUS
The National Commission has constituted Task
Forces to deliberate on the following issues
identified for immediate intervention and make
appropriate recommendations:
� Social Security for Unorganised Sector
Workers;
� Statistical issues in the Unorganised/
Informal Sector; and
� Skill formation in the Unorganised Sector.
Task Forces on Access to Technology and
Infrastructure, Access to Markets, Raw
Materials and Finance and Legal and Policy
issues concerning enterprises in the
Unorganised Sector are being constituted.
5.4 Concept of Growth Poles
5.4.1 The NCEUS proposed the formation
of Growth Poles in different parts of the country
with a view to (i) integrating within a geographical
location a number of clusters of unorganised
production units engaged in manufacturing,
services and non-farm activities and (ii)
facilitating the expansion of production of and
employment in these micro and small
enterprises. The Growth Poles would
incorporate the concept of Provision of Urban
Amenities in Rural Areas (PURA) that has been
advocated by the President of India. This
proposal also found mention in the Finance
Minister’s Budget Speech, 2005-06.
5.4.2 In the first instance, the Commission
proposed the launch of a few pilot projects for
Growth Poles. For this purpose, the State
Governments were requested to identify a
number of multi-product industrial/artisanal/
handloom and handicrafts clusters that have the
potential to evolve into Growth Poles. After
detailed discussions with the State
Governments, the proposals submitted by the
Governments of Chhattisgarh, Kerala,
Rajasthan, Uttaranchal and West Bengal have
been shortlisted by the Commission. The
Government of Chhattisgarh has recommended
a Growth Pole at Kondagaon in Bastar District
to give an impetus to the expansion of
enterprises based on the resources and skill
endowments available in the tribal belt of the
State. The Government of Kerala has proposed
a Growth Pole in Kollam District for expansion
of the existing clusters of coir, handicrafts,
handloom, cashew processing and tourism
related enterprises. The Government of
Rajasthan has recommended a Growth Pole
at Sikandara in Dausa District for accelerated
development of clusters of stone cutting and
carving, leather, handloom and khadi,
handicrafts and agricultural implements
63
production units. The Government of
Uttaranchal has proposed the development of
a Growth Hub in Chamoli District to coordinate
the interventions of various promotional
agencies mandated to develop a wide range of
products and services based on the State’s
natural resources. The Government of West
Bengal has proposed the creation of a cluster-
based Growth Pole in Domjur Block of Howrah
District to facilitate the expansion of the clusters
of rubber based industries, food processing
units, foundries, chemical industries, zari and
jewellery/gem stone and apparel units.
5.4.3 The Commission proposes to
undertake detailed technical studies for each of
the five suggested sites to work out the full details
of the identified Growth Pole pilot projects.
5.5 Redrafting of the UnorganisedSector Workers Bill
The drafts of the Unorganised Sector Workers’
Social Security Bill, 2005 and the Unorganised
Sector Workers’ (Conditions of Work and
Livelihood Promotion) Bill, 2005 have been
furnished to the Ministry of Labour &
Employment and the Prime Minister’s Office,
pursuant to a request for assistance in re-
drafting of the Unorganised Sector Workers’ Bill,
2004. The reformulated Bills have also been
placed in the public domain for engaging a wider
public discussion. The Commission is currently
preparing explanatory notes to the Bills and
formulating proposals for operationalising their
provisions.
5.6 Review of the National Policy onUrban Street Vendors
The Commission has been engaged in re-
examination of the National Policy on Urban
Street Vendors and, in this context, interacting
with various stakeholders. In the light of these
interactions, a draft of a revised National Policy
on Urban Street Vendors has been referred to
the Ministry of Urban Employment and Poverty
Alleviation.
64
6.1 INTERNATIONALCOOPERATION SCHEME
6.1.1 International Cooperation Scheme for
modernisation, technology upgradation and
competitiveness enhancement of small
enterprises has been under implementation
since 1996. Under this Scheme, small
entrepreneurs are taken to potential foreign
markets, for firm/association level interactions
on, inter alia, sourcing technology, exploring
export markets of their products and learning
best practices.
6.1.2 The Scheme now encompasses the
following activities:
� Participation in exhibitions, fairs and
buyer-seller meets (with an international
component).
� Exchange of business delegations, to
explore new areas of technology
upgradation, facilitating joint ventures,
improving marketability of SSI products,
foreign collaborations, etc.
� Holding of seminars/buyer-seller meets,
to promote enterprise-to-enterprise
interactions through selected agencies,
both in India & abroad.
INTERNATIONAL COOPERATION
Chapter VI
6.1.3 During 2005-06, participation of SSIs
in international exhibitions and deputation of
business delegations has been sponsored
under the Scheme.
6.2 INDIA GLOBAL SUMMITON MSMES
The Confederation of Indian Industry (CII),
jointly with the Ministry of Small Scale
Industries, and in association with the National
Small Industries Corporation (NSIC) and Small
Industries Development Bank of India (SIDBI)
organised “India Global Summit on MSMEs –
Facing Competition through Consolidation” on
25 – 26 November 2005 at New Delhi. The
Summit was inaugurated by Shri Pranab
Mukherjee, Defence Minister and Shri Mahabir
Prasad, Minister for Small Scale Industries and
Agro & Rural Industries. The Summit
witnessed participation from more than 500
delegates from India and abroad. While the
domestic participation basically comprised the
stakeholders from the MSME sector, the
overseas participation comprised
representatives from 34 countries across the
globe. The Summit aimed at enhancing
cooperation among the MSME in India and their
counterparts abroad and facilitating the
process of globalisation.
65
Shri Pranab Mukherjee, Hon’ble Defence Minister lighting the lamp at the inauguration of India Global Summit on SME’ during25-26 November, 2005. (Below) Shri Mahabir Prasad, Hon’ble Minister of SSI&ARI is addressing the delegates
66
6.3 PAN COMMONWEALTHINSTITUTION BUILDINGPROGRAMMES ONSMALL BUSINESSCOMPETITIVENESSDEVELOPMENT
6.3.1 NSIC in association with the
Commonwealth Secretariat, London organised
the second (in a series of
four institution-building programmes)
Commonwealth - India Small Business
Competitiveness Development Programme
during 17-22 April 2005 at Chennai. 61 policy
makers and practitioners, representing 36
Member States of the Commonwealth attended
this programme. The focus of the programme
was on the role of technology and financing in
developing small business competitiveness and
on pro-poor employment generation
programmes, through the development of agro
and rural industries.
6.3.2 NSIC organised the third
Commonwealth Programme on Small
Business Competitiveness Development
during 20-25, November, 2005 at New Delhi.
The theme of the programme was
“Networking the Commonwealth SMEs
through Sharing Best Practices for
Enhanced Competitiveness”. Fifty senior
policy makers and practitioners representing
35 member States of the Commonwealth
attended the five-day programme. The
participants were exposed to a combination
of best practices, case studies and field
visits.
6.4 OTHER SIGNIFICANTEVENTS
(i) A Memorandum of Understanding (MoU)
on cooperation in the sphere of support
of small and private entrepreneurship
between India and Uzbekistan was signed
by the Minister (SSI & ARI) and the First
Deputy Prime Minister and Minister of
Economy, Government of Uzbekistan, on
05 April 2005, at New Delhi.
(ii) Minister (SSI & ARI) visited Mauritius to
attend the SME and Handicrafts Fair-
2005, during 08-10 April 2005, at the
Shri Pravir Kumar, Joint Secretary, Ministry of SSI, addressingthe participants at the Valedictory session of the India Global
Summit on MSMEs
67
invitation of the Minister of Small
Enterprises, Cooperatives, Handicrafts
and Informal Sector, Government of
Mauritius.
(iii) Mr. Nicolas Forissier, Minister of State for
Agriculture, Food Processing, Fisheries
and Rural Affairs, Republic of France met
the Minister (SSI & ARI) on 13 April 2005.
It was decided to establish a Sub-Group
on cooperation for matters relating to
small enterprises (particularly in the areas
of agro, rural, khadi & coir sectors) within
the Joint Working Group on Agriculture
(under the Indo French Agreement in the
field of Agriculture, Fisheries, Rural
Development, Forestry & Food
industries).
(iv) At the invitation of the World Association
of Small and Medium Enterprises
(WASME), Secretary (SSI & ARI)
participated in the WASME 2005-World
SME Convention –XVI International
Conference at Bucharest, Romania
during 14 – 19 May 2005 and made a
presentation at the Plenary Session on
“Indian SMEs – Harnessing Opportunities
of Globalisation”.
(v) The first Meeting of the Joint Committee
set up under the MoU between the
Governments of India and Sri Lanka on
cooperation in small-scale industries
sector was held at New Delhi on 7 July
2005. Dr. U. Vidana Pathirana, Secretary,
Ministry of Industry & Investment
Promotion, Government of Sri Lanka &
Shri Anupam Dasgupta, Secretary
(SSI&ARI) led the respective delegations
at the Joint Committee meeting.
(vi) Mr. Madan Murlidhar Dullo, Minister of
Foreign Affairs, International Trade and
Cooperation, Government of Mauritius
met Minister (SSI&ARI) in his office on 02
September 2005.
(vii) A delegation led by Mr. Mohammed Hanif
Atmar, Minister of Rural Rehabilitation and
Development, Government of Afghanistan
Shri Mahabir Prasad, Hon’ble Union Minister of SSI and ARI interacting with Women entrepreneurs from Seychelles participating inTechmart India 2005 organised by NSIC at New Delhi
68
met Minister (SSI&ARI) on 03 October
2005 and requested to depute a multi-
disciplinary team of experts from India
to Afghanistan to undertake study of
its small scale sector, identify its
strengths and weaknesses and make
recommendations on the possible
strategies for its development.
(viii) The Director, National Agency for Small
and Medium Size Enterprises and
Cooperative (NASMSEC), Government of
Romania, Mrs. Florentina Ionescu met
Joint Secretary (SSI) on 24 October 2005.
Both sides agreed to facilitate enterprise
- to - enterprise cooperation between India
and Romania through exchange of
Discussion taking place at the First Joint Committee Meeting as per the Memorandum of Understanding (MoU) between Ministryof Small Scale Industries. Govt. of India and Ministry of Industry, Govt. of Sri Lanka on 07.07.2005 at New Delhi
economic missions and delegations
comprising entrepreneurs.
(ix) A delegation led by H.E. Shri Alhaji Ahmed
Mohammad Makarfi, Executive Governor
of the Kaduna State of Nigeria, met
Minister (SSI&ARI) on 17.11.2005 at New
Delhi, to discuss cooperation in the small
scale sector between India & Nigeria. The
delegation also visited NSIC & Techmart.
(x) A delegation led by Mr. Mathew
Szymanski, Chief of Staff, U.S. House
Small Business Committee met
Secretary (SSI&ARI) on 13.12.2005 in
New Delhi, to discuss areas of
cooperation in the small scale sector.
69
(xi) The Mexican Ambassador in India
proposed an MoU for cooperation in the
small scale sector between the Ministry
of SSI, Government of India and
Secretariat of Economy of the United
Mexican States, which is likely to be
signed soon.
(xii) Secretary (SSI & ARI) visited the U.K. to
discuss ongoing and future Small
Business Development Competitiveness
Programmes with the Commonwealth
Secretariat.
70
7.1 The North Eastern region, consisting
of Assam, Arunachal Pradesh, Manipur,
Mizoram, Meghalaya, Nagaland, Tripura and
Sikkim, has abundant natural resources and
these resources can be harnessed for all-round
economic development of and employment
generation in the region through promotion and
establishment of micro and small enterprises.
Name of the State No of units Fixed investment Production Employment
(Rs. crore) (Rs crore)
SIKKIM 415 12.60 44 1580
ARUNACHAL 1411 34.17 69 4330
PRADESH
NAGALAND 15623 378.55 540 66466
MANIPUR 54101 403.67 703 153715
MIZORAM 12529 139.89 207 28622
TRIPURA 27448 329.27 461 62861
MEGHALAYA 25383 164.45 481 75607
ASSAM 219092 1287.39 4907 487871
TOTAL 356002 2749.99 7412 881052
7.2 PROFILE OF THE MSESECTOR IN NORTHEASTERN REGION
The available figures of estimated number of
SSI units, fixed investment, production and
employment in North Eastern region for
2004-05 are as follows:
7.3 The Ministry of SSI is actively
promoting the development of small scale
industries in the North Eastern region through
the programmes and schemes implemented
by its organisations. SIDO has SISIs at
Gangtok, Guwahati, Imphal, Agartala and also
ACTIVITIES IN THE NORTH EASTERNREGION
Chapter VII
71
Branch SISIs at Aizwal, Dimapur, Itanagar,
Diphu, Silchar, Tezpur, Shillong, and Tura.
There is a Tool Room and Training Centre
at Guwahati (see details in para. 2.13.10).
NSIC has a Technical Service Centre at
Guwahati and a network of offices in the
region, including Branch Office at Guwahati
(Assam) and sub-offices at Imphal (Manipur),
Dimapur (Nagaland), Itanagar (Arunachal
Pradesh), Shillong (Meghalaya) and Agartala
(Tripura).
7.4 SIGNIFICANT ACTIVITIES
7.4.1 As on 31 January 2006, 840 proposals
for loans Rs. 20.07 crore to SSI units were
approved under the Credit Guarantee Scheme
from the North Eastern States (including
Sikkim).
7.4.2 In 2005-06 (upto January 2006), 50
Entrepreneurship Development Programmes,
61 Motivational Campaigns and 39
Management Development Programmes were
conducted by the SIDO field institutions in the
region for 5039 persons.
7.4.3 For growth of small industries in the
region, the funding pattern of Integrated
Infrastructural Development (IID) Scheme has
been relaxed, providing for upto 80% of Central
grant with maximum of Rs. 4 crore.
7.4.4 The activities of the NSIC include
training programmes to increase self-
employment opportunities of the trainees in the
region. In Techmart India’ 2005, “North East
Panorama”, a special display of products from
North Eastern States, was organised to provide
marketing opportunities to the participating SSI
units. NSIC was awarded for Gold Medal for
“Special Display of North East Sector“ in the
IITF, 2005.
7.4.5 The activities of IIE, Guwahati in the
NER are detailed in paragraph 4.3 above.
NSIC organized “TECHMARTINDIA-2005” from November 14-27,2005 at Pragati Maidan, New Delhi.Techmart India 2005 showcased themanufacturing strengths of Indian
small scale Industries. It alsoprovided the platform from
technology seekers and technologyproviders to meet, discuss and
conclude agreements on technicalcollaboration/technology transfer etc.
Shri Mahabir Prasad, Hon’bleMinister of SSI&ARI is seen watching
the demonstration by SSIparticipants from North East at
Techmart India 2005
72
8.1 In the policy measure for promoting and
strengthening small, tiny and village enterprises
announced in Parliament on 06.08.1991, it was
stated that the definition of women enterprises
would be simplified. Accordingly, the definition of
‘Women Enterprises’ has been revised as under:
“A small scale industrial unit/industry - related
service or business enterprise, managed by
one or more women entrepreneurs in
proprietary concerns, or in which she/they
individually or jointly have a share capital of not
less then 51 per cent as partners/shareholders/
directors of private limited company/members
of co-operative society.”
8.2 PARTICIPATION OFWOMEN IN SSI SECTOR
8.2.1 In the Third All India Census of SSIs,
the participation of women in the SSI sector has
been categorised in three roles: some women
are owners of enterprises, some managers of
enterprises and some employees. With regard
to ownership, the definition mentioned above
has been adopted.
DEVELOPMENT ACTIVITIES FORWOMEN
ChapterVIII
8.2.2 The total number of women
enterprises in the SSI Sector was estimated at
10, 63, 721 (10.11 %). The estimated number
of enterprises actually managed by women was
9, 95, 141 (9.46 %).
8.2.3 About 13% of the women enterprises
were in the registered SSI category, the rest
being unregistered. Of the enterprises managed
by women, 11.5% were in the registered SSI
category.
8.2.4 The share of the units managed by
women in terms of employment was 7.14%.
The employment generated per Rs. 1 lakh
investment in the units managed by women
was 2.49.
8.2.5 The total number of female employees
in the SSI sector is estimated at 33, 17, 496.
About 57.62% of the women were employed in
SSI units located in the States of Tamil Nadu,
Kerala, Karnataka, West Bengal and Andhra
Pradesh.
8.2.6 The proportion of female employees
in the total employment in the SSI sector was
73
13.315%. In the States/Union Territories of
Mizoram, Orissa, Karnataka, Goa,
Lakshadweep, Kerala, Tamil Nadu and
Pondicherry, the share of women employment
was significantly higher (more than 20%),
compared with the total employment in the
respective States.
8.3 In India, Women entrepreneurs have
been in business for quite some time and
achieved remarkable success. However, their
number is still small. One of the reasons for
this is the initial hesitation and inhibition, which
emanates from the traditional and societal
perception of the role of women. Like any other
entrepreneurs, a new women entrepreneur has
to compete with those who are already well
established. Therefore, women entrepreneurs
have to not only face the gender insensitivity
and bias prevalent in the society but also
compete against established competition. In its
industrial policy, the Government of India has
laid considerable emphasis on the promotion
of women entrepreneurship, particularly first
generation women entrepreneurs, through
various training and support services. Special
attention is given by organising exclusive
entrepreneurship development programmes for
women. In these programmes, the trainees/
entrepreneurs are exposed, through
demonstration and training, to the manufacture
of a variety of products. Thus, many women
are trained every year by the Institutes of the
Ministry. The available feedback shows that
these women have not limited themselves to
the conventional ventures but also set up hi-
tech industries in the fields of information
technology, engineering, graded grey iron, non-
ferrous casting and sophisticated electronic
equipment, etc. Tool Rooms have started
designing special courses for women in the field
of tool engineering. Voluntary organisations in
the country are also doing commendable work
in the field of women entrepreneurship
development. Associations of women
entrepreneurs have also come up and are doing
remarkably well in some States.
8.4 TRAINING OF WOMENENTREPRENEURS
Various institutes of the SIDO conduct need -
based training programmes for existing and
prospective entrepreneurs. During 2005-06 (up
to December ’05), 15000 women participated
in these training programmes, i.e., Industrial
Motivational Campaigns, Entrepreneurship
Development Programmes and Management
Development Programmes conducted by SISIs
and CFTI, Agra and Chennai.
8.5 WOMEN EMPOWERMENTUNDER IID SCHEME
Association of Lady Entrepreneurs of Andhra
Pradesh (ALEAP), an NGO comprising the
women members only, has successfully
completed the implementation of an IID project
at village Gajularamaram, District Rangareddy,
A.P. 64 units have been established in this IID
Centre, which generated employment for 1400.
Further, 108 women entrepreneurs have
benefited from this project. Out of the total
project cost of Rs. 347 lakh, Government of India
74
provided grant to the tune of Rs. 139 lakh.
Another IID project at Vijyawada, District
Krishna, A.P. is being implemented by ALEAP.
The total project cost is Rs. 370 lakh.
Government of India grant of Rs. 91.38 lakh has
been released for this project.
8.6 TRADE RELATEDENTREPRENEURSHIPASSISTANCE ANDDEVELOPMENT (TREAD)FOR WOMEN
8.6.1 Women have been among the most
disadvantaged sections of the population with
regard to access to and control over resources.
Problems faced by them continue to be grave
particularly for illiterate & semi - literate women
of rural and urban areas In order to alleviate their
problems, Government of India launched a
scheme titled “Trade Related Entrepreneurship
Assistance and Development” (TREAD). The
scheme envisages economic empowerment of
such women through trade related training,
information and counselling/extension activities
related to trades, products, services etc.
8.6.2 Under this scheme, Government of
India (GoI) gives grant up to 30% of the total
project cost as appraised by lending institutions
which would finance the remaining 70% as loan
assistance to applicant women, who have no
easy access to credit from banks due to their
cumbersome procedures and the inability of
poor & usually illiterate/semi-literate women to
provide adequate collateral security. The GoI
grant and the loan from the lending agencies to
assist such women are routed through eligible
NGOs/SHGs/MFIs engaged in assisting poor
women through any kind of income generating
activities in non- farm sector.
8.6.3 Training organisations, viz., Small
Industries Service Institutes (SISIs),
Entrepreneurship Development Institutes
(EDIs), National Institute of Small Industries
Extension Training (NISIET) and the NGOs
conducting training programmes for
empowerment of women beneficiaries identified
under the scheme are provided a grant upto Rs.
1.00 lakh per programme, provided such
institutions also bring their share to the extent
of minimum 25% of the Government grant.
However NGOs are allowed to conduct training
programmes only after they take up some
lending proposals of women entrepreneurs
under this scheme.
8.6.4 Institutions such as NISIET, NIESBUD,
IIE, SISIs, EDIs sponsored by State
Governments and any other suitable institution
of repute are provided need based GoI grant
primarily for undertaking activities aiming at
empowerment of women such as field surveys,
research studies, evaluation studies, designing
of training modules, etc., covered under the
scheme. The grant is limited up to Rs. 5 lakh
per project.
8.6.5 During 2005-06, Rs. 7.73 lakh have
been sanctioned as GoI grant for capacity
building of three NGOs whose projects have
been appraised by Canara Bank. About 435
women beneficiaries are likely to be benefited
through the projects approved by the Bank
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under the TREAD Scheme. It is expected that
10 more projects would be appraised during the
year and another 1000 women entrepreneurs
would benefit during the remaining period of the
current financial year.
8.6.6 Indian Institute of Entrepreneurship
(IIE), Dehradun and Guwahati have conducted
7 EDPs and provided process - cum - product
development training to 166 women under the
scheme. IIE, Dehradun has been sanctioned
grant of Rs. 3 lakh for conducting 3 EDPs under
the scheme. It is expected that another 100
women would be trained by IIE, Dehradun
during the remaining period of the current
financial year.
8.6.7 IIE, Dehradun and Guwahati are also
conducting two studies on “Prospects of
Women and Problems Faced by Women
Entrepreneurs” in the Uttaranchal and Assam
respectively.
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9.1 Hindi is the Official Language of the
Union of India and the Government policy is
aimed at progressively increasing the use of
Hindi in official work. Effective steps were taken
during the year in the Ministry of Small Scale
Industries to ensure compliance of 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
9.2 COMPLIANCE OF THEPROVISIONS OF THEOFFICIAL LANGUAGEACT, 1963
All documents such as resolutions, general
orders, rules, licences, etc., under section 3(3)
of the Official Language Act and all papers laid
on the Tables of the Houses of Parliament were
issued in Hindi and English. The Ministry is
already notified under the Official Language
Rule 10(4).
9.3 REPLIES TO LETTERS INHINDI
All letters received in Hindi were replied to in
Hindi.
USE OF OFFICIAL LANGUAGE
Chapter IX
9.4 CORRESPONDENCE INHINDI
Letters to State Governments, Union Territory
Administrations and Central Government offices
located in regions ‘A’ and ‘B’ were issued in Hindi,
to the maximum extent possible. Similarly, efforts
were made to send letters in Hindi to Central
Government offices located in region ‘C’, as per
the targets laid down in the annual programme.
9.5 SECTIONS SPECIFIEDFOR WORKING IN HINDI
The sections of the Ministry, notified for doing
all work in Hindi, are working satisfactorily.
9.6 MONITORING ANDINSPECTIONS
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 were inspected
, to ensure use of Hindi and compliance of the
Official Language policy.
9.7 TRAINING OF OFFICIALS
All officials of the Ministry have already been
trained in Hindi typing and stenography.
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9.8 USE OF MECHANICALAIDS
As required under the Official Language Act,
bilingual facilities have been provided on office
equipment in the Ministry. Computers and
terminals have also been installed with facility
to work in Hindi.
9.9 HINDI MONTH
Hindi month was celebrated during September,
2005 in the Ministry. Competitions were
organised during this period in Hindi typing,
Hindi stenography, debate in Hindi, Hindi essay
writing and noting and drafting in Hindi. A large
number of officers and employees participated
with enthusiasm. The messages of the Home
Minister and Cabinet Secretary were circulated
for information and compliance on this
occasion.
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10.1 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, however, provided by the
Vigilance Desk of the Department of
Industrial Policy & Promotion (DIPP),
Ministry of Commerce and Industry as the
Ministry of SSI does not have its independent
vigilance unit. The vigilance unit is, inter alia,
responsible for the following:
� identification of sensitive areas prone to
malpractices/temptations and taking
preventive measures to ensure
integrity/efficiency in Government
functioning;
� taking suitable action to achieve the
targets fixed by the Department of
Personnel & Training (DoPT)on anti-
corruption measures;
� scrutiny of complaints and initiation of
appropriate investigation measures;
� inspections and follow-up action on the
foregoing;
VIGILANCE MATTERS
Chapter X
� furnishing comments to the CVC on the
investigation reports of the Central Bureau
of Investigation(CBI);
� taking appropriate action in respect of
departmental proceedings on the advice
of the DoPT & CVC;
� obtaining second stage advice of the
CVC, wherever necessary; and
� obtaining advice of the Union Public
Service Commission (UPSC) in regard
to the nature and quantum of penalty to
be imposed, wherever necessary.
1.1 Preventive vigilance continues to
receive attention with emphasis on identification
of areas sensitive/prone to malpractices and
temptations. The guidelines/instructions issued
by the DoPT and the CVC from time to time in
this regard are followed. Action taken includes
the following:
i) Regular and surprise inspections are
carried out by the Departmental Security
Officer of the DIPP. In the attached and
subordinate offices, respective
Departmental Security Officers carry out
these inspections.
ii) Strengthening of vigilance machinery by
way of appointing CVO in the offices and
79
organisations under the Ministry, who
looks after the vigilance activities in the
office/organization concerned.
iii) A strict watch is kept on liaison men and
on other persons. The Departmental
security instructions are iterated from time
to time for streamlining entry of outsiders
in the building. To end the practice of
professional liaison men operating in the
Ministry, a fresh list of such unwanted
liaison men has been prepared.
iv) Cases of the officers, who have attained
the age of 50 years or have put in 30 years
of service, are reviewed under FR 56 (j)
in order to judge their suitability to continue
in service thereafter. The exercise is
currently being done by the Establishment
Division of the DIPP.
v) In order to make officers conscious of the
provisions of Conduct Rules applicable
to them as also to acquaint them with the
importance of departmental security,
Rules/Instructions are reiterated in this
respect from time to time.
10.2 SMALL INDUSTRIESDEVELOPMENTORGANISATION
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. The CVO is
also responsible for all the field offices of the
SIDO. The Vigilance Section deals with vigilance
matters like complaints and vigilance cases
coming within the purview of CCS (CCA) Rules,
1965 concerning Small Industries Development
Organization.
10.2.1 Apart from dealing with complaints and
vigilance cases against officers and staff
relating to corruption and improper motives, a
number of anonymous/pseudonymous
complaints as also complaints and vigilance
cases other than those of corruption or improper
motives pertaining to the officers of Small
Industries Development Organisation were also
handled. All complaints relating to corruption/
improper motives and/or delays were
investigated and suitable action taken against
officers found guilty of misconduct/
misbehaviour.
2.2 The vigilance cases in respect of
Group ‘C’ & ‘D’ staff of field offices are attended
to by the Director of the institute/centre who is
assisted by AD (Admn).The services of senior
officers both at the Headquarters office and in
the field offices are utilized for investigating the
complaints.
10.3 NATIONAL SMALLINDUSTRIESCORPORATION (NSIC)
NSIC has its own part time CVO appointed on
the advice of the CVC.
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11.1 This Charter is a declaration of the
Ministry, incorporating its mission and
commitment to the small scale entrepreneurs
and for the people of India in general.
11.2 MINISTRY OF SSI
The Ministry of Small Scale Industries is
responsible for formulation of policies and
designing programmes, projects and
schemes for promoting the growth of micro
and small enterprises in the country. The
policies and programmes/projects/schemes
are implemented by the organisations like the
Small Industry Development Organization
(SIDO), National Small Industries Corporation
Ltd. (NSIC), national level Entrepreneurship
Development Institutes, etc. The Organisations
of the Ministry have their own Citizen’s Charters.
11.3 MISSION
The mission of the Ministry is to promote, in
cooperation with other Ministries and
Departments of the Central Government, State
Governments, Union Territory Administrations
and all other stakeholders, the growth and
development of the micro and small
enterprises and to enhance their
competitiveness so that these enterprises
CITIZENS’ CHARTER
Chapter XI
contribute to accelerating the expansion of
productive employment opportunities in the
country. The Ministry seeks to fulfil its mission
by formulating appropriate policies and
designing/implementing support measures in
the fields of credit, technological upgradation,
marketing, entrepreneurship development,
etc., and undertaking effective advocacy for
these purposes.
11.4 COMMITMENT
The Ministry and its organisations are committed
to providing efficient and prompt service with
transparency and courtesy to the with citizens
and individual or groups of micro and small
enterprises.
Towards this, the Ministry will, in the spirit of
dutiful discipline, respect the rights of
individuals, entrepreneurs and their
associations. The Ministry will maintain and
uphold the confidentiality of personal and
business information disclosed to it by the
citizens. The Ministry and its organisations will
continuously review the policies and
programmes and enforcement of related laws
and regulations, in consultation with the
stakeholders concerned, with the aim of fulfilling
its mission.
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11.5 STANDARD FORGENERAL PROCEDURE
The letters received by the Ministry will be
acknowledged within 15 days and replied to as
soon as possible.
11.6 RESPONSIBILITIES OFOUR CITIZENS
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.
11.7 ASSESSINGPERFORMANCE
The Ministry will, from time to time, share its
performance with the citizens and stakeholders
through the media and its website. The Ministry
will also undertake independent surveys on
perceptions of the citizens and assessment of
its performance.
11.8 GUIDANCE AND HELP
The Information and Facilitation Counter of
the Ministry, located on the ground floor,
Gate No. 4, Nirman Bhavan, New Delhi, will
provide information on the services and
activi t ies of the Ministry and i ts
organisations.
11.9 COMPLAINTS
In case of any complaint, one may
telephone or send a letter or fax or visit the
Ministry at Udyog Bhavan, New Delhi.
However, before lodging of a complaint, one
may, first of all, use the Information and
Facilitation Counter of the Ministry. In case
one is not satisfied, the matter may be taken
up with the Grievance Off icer in this
Ministry. The address, phone and fax
numbers of the Information and Facilitation
Counter and the Grievance Cell are as
follows:
IMPORTANT ADDRESSES WEBSITES ADDRESS
(1) Grievance Cell http.//ssi.gov.in - Ministry of SSI
Deputy Secretary www.laghu-udyog.com - SIDO
Ministry of SSI www.nsicindia.com - NSIC
Room No. 124-D www.niesbud.com - NIESBUD
Udyog Bhavan www.nisiet.com - NISIET
New Delhi - 110011 www.iie.nic.in - IIE
Tel. No. 23061431
No. 011-23061756 (Fax)
(2) Information and Facilitation Counter
Gate No. 4, Ground Floor,
Nirman Bhavan, New Delhi-110 011
Tel. No. 23062219
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NATIONAL SMALL INDUSTRIESCORPORATION LIMITED (NSIC)
LOAN ASSISTANCE ANDRECOVERY PERFORMANCE
(REPORT NO. 4 OF 2005COMMERCIAL)
The review of loan assistance and recovery
performance was done by the office of the
Comptroller and Auditor General (C & AG) of
India based on the operation of NSIC in earlier
years. The audit paragraphs included in the
C&AG’s report on the basis of this review are
given below. The gist of the replies to these
paragraphs is given below:
Para:
The Company was incorporated in February
1955 to provide financial assistance to small
industrial units for industrial development
of the country. However, due to the
deficiencies in the pre-sanction appraisals
and weak recovery mechanism, a very large
SUMMARY OF RECENT AND IMPORTANTAUDIT OBSERVATIONS AND REPLIES