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 loans given to SSIs without collateral security and/or third party guarantee up to a maximum of Rs. 25 lakh, by banks (and other lending institutions) which have registered with the Credit Guarantee Fund Trust for Small Industries (CGTSI) as Member Lending Institutions (MLIs). 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. 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.



• During the month the Tool Room & Training Centre, Guwahati has conducted an Integrated Course in Manufacturing Technology for 3 trainees.
  
2. As on 31st May, 2005, 643 proposals for Rs. 14.93 Crore were approved under the Credit Guarantee Scheme from the North Eastern States (including Sikkim). 12 Seminars and 3 workshops on Credit Guarantee Scheme were attended/participated by CGTSI in the North-Eastern Region (including Sikkim).