(a): whether the Union Government has dereserved more items from the Small Scale Sector;
(b): if so, the details and the impact of the said move on the growth of SSI;
(c): whether there is inordinate delay in releasing credit by Banks to SSI units; and
(d): is so, the steps proposed to be taken to release the sanctioned credit to the SSI units?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES ( SHRI MAHABIR PRASAD )
(a)&(b): In the Union Budget for 2004-2005 presented in Parliament
on 8th July, 2004, the Government has proposed dereservation of 85
items. As per the procedure, items to be reserved are identified
in consultation with the stakeholders.
Dereservation of certain items has been done over the years
after consulting the stakeholders so as to allow greater
opportunities to the SSIs for technological upgradation, promotion
of exports and achieving economies of scale.
(c)&(d): Cases of delay in release of credit to the SSI sector
have come to the notice of the Government. The matter has been
reviewed and a time-frame has been fixed for disposal of loan
applications by the banks, which is a maximum of 2 weeks for loans
upto Rs.25,000 and 4 weeks for loans upto Rs. 5 lakh provided the
loan applications are complete in all respects and accompanied by
a check list. The Reserve Bank of India has instructed the banks
to adhere to these norms.