MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES ( SHRI MAHABIR PRASAD )
(a)to(g): A Statement is placed on the Table of the House.
STATEMENT REFERRED TO IN R EPLY TO PART (a) TO (g) OF THE LOK
SABHA STARRED QUESTION NO. 3 FOR REPLY ON 01.12.2004.
(a)&(b): The Government has put in place several measures to help
Small Scale Industries (SSIs) become globally competitive in the
wake of liberalization. These include special focus on areas such
as technology upgradation, infrastructure assistance through
cluster development approach, timely availability of credit,
adoption of modern management practices, use of electronic
infrastructure and other information technology (IT) applications
to help the SSIs face the emerging challenges of liberalization.
Besides, protection to the SSIs is available in the form of
raising customs duties upto the bound levels, imposing antidumping
duties, taking safeguard measures in case of surge in imports etc.
(c): The SSI production at current prices during 2002-03 and 2003-
04 is estimated at Rs.3,11,993 crore and Rs.3,57,733 crore
respectively. As per the latest data available for 2002-03, the
production in the SSI sector accounted for 39.5 per cent of the
country`s total industrial production during 2002-03, while the
exports worth Rs. 86,013 by this sector during that year accounted
for 34 per cent of the national exports. For the purpose of
comparison (on account of non-availability of the corresponding
figures for 2003-04), the following details for 2001-02 are
furnished (i) SSI production of Rs. 2,82,270 crore constituted
39.6 per cent of the total industrial production and (ii) SSI
exports of Rs.71, 244 crore accounted for 34.3 per cent of the
national exports.
(d): The quantum of production and exports by the SSI sector has
not decreased.
(e): Does not arise.
(f)&(g): The Government is in the process of formulating a major
promotional package for the small scale sector. To provide loans
at lower rate of interest to the SSIs, the Government has set up
Small and Medium Enterprises (SME) Fund of Rs.10,000 crore under
the Small Industries Development Bank of India (SIDBI). Under this
Fund, which has become operational with effect from 1st April,
2004 loans are being made available to the SSIs at a rate of
interest 2 per cent below the prevailing Prime Lending Rates(PLR)
of the SIDBI. Further, the Indian Banks` Association(IBA) has
advised all its member banks to adopt an interest rate band of 2
per cent above and below their respective PLRs for loans extended
to the SSIs.
