annual report - ministry of micro, small and medium...
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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
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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
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! 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,
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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
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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
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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.
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
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