(a) whether the Government propose to strengthen the small scale industries in order
to create employment and to make them self- dependent;
(b) if so, whether the Government have formulated any specific schemes in this regard;
and
(c) if so, the details thereof?
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SMALL SCALE
INDUSTRIES, MINISTER OF STATE IN THE DEPARTMENT OF PERSONNEL AND TRAINING,DEPARTMENT
OF PENSIONS AND PENSIONERS` WELFARE OF THE MINISTRY OF PERSONNEL,PUBLIC GRIEVANCES
AND PENSIONS, MINISTER OF STATE IN THE MINISTRY OF PLANNING AND MINISTER OF STATE
IN THE DEPARTMENTS OF ATOMIC ENERGY AND SPACE ( SMT. VASUNDHARA RAJE )
(a) to (c): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PART (a) TO (c) IN RESPECT OF THE LOK SABHA
STARRED QUESTION NO. 343 FOR REPLY ON 7TH AUGUST, 2002
(a) to (c): Promotion and development of Small Scale Industries (SSI) Sector has been
conscious policy of the Government. While the development of Small Scale Industries is
primarily the responsibility of the State/ U.T Governments, the Central Government
assists and supplements their efforts in this regard. With a view to further strengthen
this sector, the Government announced a Comprehensive Policy Package on 30th August, 2000 which provides for enhanced fiscal and credit support, better infrastructure and marketing facilities and incentives for technology upgradation. The Package aims to enhance its competitiveness both domestically and globally, leading to higher growth and greater employment opportunities.The Policy Package comprises of various schemes and policy initiatives like raising composite loans` limit from Rs. 10 lakh to Rs. 25 lakh; raising of project cost limit under National Equity Fund Scheme from Rs. 25 lakh to Rs. 50 lakh; raising eligible loan limit under Credit Guarantee Scheme from Rs. 10 lakh to Rs. 25 lakh; introduction of Credit Linked Capital Subsidy Scheme for Technology Upgradation; continuation of the scheme of granting Rs. 75,000 to enterprises for obtaining ISO 9000 certification in the Tenth Plan also; enhancement of limit of excise exemption from Rs. 50 lakh to Rs. 1 crore; enhancement of investment limit for Small Scale Service and
Business (Industry Related) Enterprises from Rs. 5 lakh to Rs. 10 lakh; increasing
the coverage of ongoing Integrated Infrastructure Development (IID) Scheme to progressively
cover all areas in the country; raising the family income eligibility limit from
Rs. 24,000 to Rs. 40,000 per annum under Prime Minister`s Rozgar Yojana, etc.
Other measures taken by the Government to strengthen the Sector include enhancement of
working capital limit computed on the basis of a minimum of 20% of annual projected
turnover from Rs. 4 crore to Rs. 5 crore; enhancement of limit of collateral free
loans from Rs. 1 lakh to Rs. 5 lakh, revision in definition of sickness and norms for
rehabilitation of sick units, launching of Laghu Udyami Credit Cards, etc.