(a): the impact of structural reforms on the Small Scale Industries Sector;
(b): whether Small Scale Industry Sector has suffered due to opening up of the economy;
(c): if so, the steps taken by the Government in this regard;
(d): whether the Government proposes to provide preferential opportunity in order to extend investment limit for SSI; and
(e): if so, the details thereof?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES ( SHRI MAHABIR PRASAD )
(a)to(c): While structural reforms leading to opening up of the
economy have exposed the small scale industries (SSI) sector to
greater competition, the Government has aimed at protecting the
SSIs from their adverse impact by bringing out a Comprehensive
Policy Package on 30th August, 2000 which contains provisions to
strengthen small scale industry sector and enhance its
competitiveness both domestically and globally. The support
measures, interalia, include easier access to credit, marketing
support, availability of collateral free composite loan, capital
subsidy for technological up- gradation and improved
infrastructure. The timely support measures have helped the SSI
sector to gain resilience to withstand the pressure of fast
changing economic scenario.
(d)&(e): In order to enable the hi-tech and export oriented units
to face the market competition, the investment ceiling in plant
and machinery for items reserved for manufacture in SSI Sector in
the field of knitwear, hand-tools, drugs and pharmaceuticals and
stationery has been raised from Rs. 1 crore to 5 crore. In case of
items reserved for manufacture in sports goods sector, draft
notification for raising the investment ceiling from Rs.1 crore to
Rs. 5 crore has been laid on the table of the House in July, 2002,
as per the prescribed procedure.