Mission for the Millennium
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
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.
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
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.
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
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
Strengthening Rural Artisan Complexes.
Modernisation and capacity building
in Village industries.
Special thrust on small agro-industries.
Bridge critical infrastructure gaps
Strengthening National Cluster Development
Programme, including identification of critical infrastructure gaps on
Functional Industrial parks.
Entrepreneurship Devlopment :
Strengthening National Entrepreneurship
Development Board :
Comprehensive plan for promotion of
Close linkages with premier institutions,
engaged in management and entrepreneurial training.
Adoption of "turn-key concept" for entrepreneurship
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