Mission for the Millennium

Policy :

Create a sound policy environment to help the sector cope with the emerging challenges of globalisation. Measures to include :-

  • Constitution of State level advisory boards.
  • Separate policy for Tiny and Micro enterprises.
  • Higher investment limit for ancillary units.
  • Special dispensation for sectors with high export potential.
  • Special thrust on modernisation and technology upgradation of existing units.
  • Focus of Reservation policy on enhancement of competitiveness.
  • Special package for promotion and development of small and village enterprises in North-eastern and Hill regions.

Foreign Direct Investment :

Encourage FDI as a means to infuse additional resources, technology and modern management practices with a view to making the sector internationally competitive. Measures to include :-

  • Enhancement in the limit of foreign equity participation, subject to management control vesting with Indian shareholders.
  • Placement of Foreign Direct Investment in SSI sector, under Automatic Route within the enhanced equity cap.

Industrial Legislation :

Simplify, Immediate measures to include:-

  • High powered Committee for recommending single comprehensive legislation for SSI units.
  • Simplification of inspection procedures based on self declaration and post audit.
  • Review Coir-Board Act and KVIC Act in the context of emerging challenges.

Administrative Setup :

Redefining the role of the existing machinery to make it more responsive. Measures to include:-

  • High powered Committee to recommend the most appropriate organisational structure for MSME-DO and SSIs.
  • Mechanism for participation of SSI Associations and NGOs in the Small and Village Enterprises Development Programmes.

Credit :

Strengthen credit delivery system through :

  • Credit Gaurantee Scheme
  • Earmarking flow of bank credit to micro, tiny and small enterprises.
  • Scheme for credit rating of small scale units.
  • Exploring possibilities of securitisation of gauranteed loans.
  • Exploring possiblities of strengthening viable State Financial Corporations.
  • Promoting Venture Capital Funds and Factoring services, exclusively for small scale sector.

Delayed Payments :

Facilitate timely payment through :-

  • Mandatory schedule in audited balance sheets for reflecting interest accrued under Delayed Payments Act.
  • Special Mechanism, including Industry facilitation Councils at state level, for settlement of disputes regarding delayed payments.

Rehabilitation of Sick Units :

Put in place an appropriate policy framework for addressing the problem of industrial sickness through :

  • Strengthening of State Level Inter-Institutional Committee (SLIIC) for timely identification and rehabilitation if sick units.
  • Exploring the possibility of introducing statutory provision for the revival of viable sick units.
  • Exploring the possibility of setting up of Debt Recovery Tribunals for facilitating recovery of SSI dues of commercial banks and financial institutions.

Technology Development :

Modernise small scale enterprises through a multipronged approach, interalia, including :

  • National Modernisation plans for select sectors having high export potential.
  • National plan for technology exchanges.
  • High powered committee to recommend linkages between R&D institutions, training institutions, technology banks and user groups.
  • Expand the scope and coverage of Technology Development and Modernisation Fund Scheme.
  • Inroduce Standards for Testing.
  • Efforts to introduce Utility Patent Protection for small inovations.

Marketing :

Extend comprehensive marketing support through :

  • Project Sub-contracting Promotion policy.
  • Vendor Development Programme for linkages between small, medium and large industry.
  • Thrust on Rural marketing.
  • Comprehensive policy for investment marketing brand promotion and overseas market access.

Fiscal Regime :

Create an appropriate fiscal environment through :

  • Rationalisation of taxes and tariffs for small scale industries.
  • Rationalisation of subsidies to make them WTO compatible.
  • Organise WTO sesitisation programmes for small scale industries.

Village Industries :

Focus through :

  • Strengthening Prime Minister's Rozgar Yojna and Rural Employment Generation Programme.
  • Strengthening National Rural Industries Programme.
  • Strengthening Rural Artisan Complexes.
  • Modernisation and capacity building in Village industries.
  • Special thrust on small agro-industries.

Infrastructure :

Bridge critical infrastructure gaps through :

  • Strengthening National Cluster Development Programme, including identification of critical infrastructure gaps on cluster basis.
  • Functional Industrial parks.

Entrepreneurship Devlopment :

Strengthening National Entrepreneurship Development Board :

  • Comprehensive plan for promotion of rural enterpreneurship.
  • Close linkages with premier institutions, engaged in management and entrepreneurial training.
  • Adoption of "turn-key concept" for entrepreneurship training.

International Co-operation :

Strengthen bilateral and international cooperation through :

  • Separate cell in the Ministry for International Cooperation and joint ventures.
  • Sector specific development programmes with the assistance of UNIDO and UNDP.
  • SME Partenariat with various international and multilateral organisations.

Information Technology :

Strengthen IT support :

  • Master Website on Small Industries comprising information on policies and procedures, technology, products, etc., with hyperlinks to states and countries.
  • Comprehensive plan for preparing Small Scale Industries for e-commerce, with appropriate electronic infrastructure support.


Related Links:

Ministry of  SSI
Citizen Charter
Comprehensive Policy Package 2000