Question : BOOST TO SSI INDUSTRIES



(a) whether the Government has recently taken steps to boost the Small Scale Industries in the country;

(b) if so, the details thereof;

(c) the amount earmarked for the year 2004-05 in this regard;

(d) whether any meeting with the representatives of SSI was held recently; and

(e) if so, the problems/demands made by the representatives; and

(f) the corrective steps taken by the Government in this regard?

Answer given by the minister

MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES ( SHRI MAHABIR PRASAD )

(a) & (b) : It has been the conscious approach of the Government to promote and develop the small scale industries (SSI) sector. Accordingly, Government continues to lay emphasis on meeting the concerns of the SSI, as is evident by various measures announced from time to time.The Govt. announced a Comprehensive Policy Package in August, 2000 to strengthen the small scale industries sector and enhance its domestic and global competitiveness, which inter alia provides easier access to credit, availability of collateral free composite loan up to Rs. 25 lakhs, marketing support, capital subsidy for technological up-gradation and improved infrastructure. In addition, overnment and the Reserve Bank of India have also announced various other measures/incentives including instructions to Banks to provide credit to SSI at interest within a band of 2% plus minus their Prime Lending Rate (PLR), introduction of Laghu Udyami Card Scheme, selective enhancement of investment limits in respect of high-tech and export oriented items to enable SSIs to compete successfully.

(c) An amount of Rs. 428.00 crores has been earmarked for the year 2004-05 in this regard.

(d) to (f): Yes, Sir. The meeting of the 48th SSI Board which is comprised representatives of Central Government, Financial Institutions, State/UT Ministers of SSI, Central/State level industrial associations, etc. was held on 17th January, 2004. The problems raised in it relate to credit, simplification of rules and regulations, marketing, modernisation and infrastructure. Concerns expressed by the stakeholders are taken into consideration while designing support measures for promotion and development of SSI Sector.