SPECIFIC PROGRAMME TO PROMOTE NEW SSI UNITS AS WELL AS
REVIVAL OF SICK UNITS IN N.E. STATES

1. Credit Guarantee Scheme:
   
   The Credit Guarantee Fund Scheme for Small Industries envisages provision of guarantees to the extent of 75% in respect of credit facilities up to a maximum of Rs. 25 lakh extended by the eligible banks (and other lending institutions), which have registered with the Credit Guarantee Fund Trust for Small Industries (CGTSI) as Member Lending Institutions (MLIs), to the SSI units and Small Scale Service and Business (Industry Related) Enterprises (SSSBEs), without any collateral security and/ or third party guarantee. The Scheme is being operated by the Credit Guarantee Fund Trust for Small Industries (CGTSI), set up by the Government of India and Small Industries Development Bank of India (SIDBI).
2. Micro-Finance Programme:
   
   The revised Scheme of Micro-Finance Programme launched in the year 2003-04 has been tied up with the existing programme of SIDBI by way of contributing towards security deposits required from the Micro-Finance Institutions (MFIs)/Non-Government Organisations (NGOs) to get loan from SIDBI. The primary objective of the scheme is to expand the reach of the SIDBI's scheme by providing the needed equity support to the MFIs/NGOs so as to ensure their long-term sustainability. The scheme would also help SIDBI in meeting the training needs of NGOs, Self-Help Groups (SHGs), intermediaries and entrepreneurs and also in enhancing awareness about the Micro-Credit Programmes across the country. The funds provided by the Government under the scheme would be utilized for expansion of Micro-Credit Programmes in the hitherto underserved States including all North-Eastern States & Sikkim.
3. Revival of Sick SSI units:
   
   
   • Based on the recommendations of the Working group constituted under the chairmanship of Shri S.S. Kohli, the then Chairman of Indian Banks' Association, the RBI has drawn up revised guidelines for rehabilitation of sick SSI units, which include inter-alia change in the definition of sick SSI units, norms for deciding on their viability, etc.The RBI has circulated the revised guidelines on 16th
   
   
   
   • January 2002 to all the Scheduled Commercial banks for implementation. The revised definition would enable banks to take action at an early stage for revival of the potentially viable sick units. The RBI has informed that the banks have been advised to review the progress made in implementation of the revised guidelines annually as on March of every year by their respective Boards.

OTHER DEVELOPMENTAL ACTIVITIES IN NORTH EAST REGION

1. Setting up of Tool Room Training Centre (TRTC) at Guwahati
   
   To assist the small scale industry in the North Eastern Region, for their technological upgradation by providing precision quality toolings and trained man power, Govt.of India has set up one Tool Room & Training Center at Guwahati (Assam) at a cost of Rs. 13.28 crores. The contribution of State Government of Assam is Rs. 3.98 crores towards land & building.



• The first phase of construction of the TRTC building to be constructed by the State Government of Assam is nearing completion except some civil works in the workshop and electrical connection etc. Machinery and equi;pemtns are under procurement and shall be installed on completion of the building. Under second phase of construction, the State Government of Assam have to construct hostel and staff quarters.



• However, the training activities of the Tool Room have partly commenced and they have started a two year Certificate Course in Machinist Tool Room at its permanent complex (under completion) and a few short term training programmes at SISI, Guwahati campus. During the Feb. 2005, the tool room has trained 37 candidates in short term training programmes in the area of Auto CAD/CNC Technology, Master CAM etc. and 20 candidates in Two Year Certificate Course in Machinist Tool Room.



2. Entrepreneurship Development Programme in North East Region
   
   2 Entrepreneurship Development Programmes, 2 Motivation Campaigns and 2 Management Development Programmes were conducted in North East Region and altogether 250 persons were trained.



3. Vender Development Programme in North East Region
   
   A National Level Vendor Development Programme-cum-Industrial Exhibition was organized by SISI Guwahati and Directorate of Industries & Commerce (Govt. of Assam) from 12th to 14th Feb. 2005 at Jorhat. In which around 18 small scale units participated besides large scale organizations such as DGQA and Central Public Sector Undertakings.