MSME Biotech Subsidy

AN OVERVIEW
3
Ministry of Small Scale Industries
Chapter 1
1.1.0 BACKGROUND
1.1.1 The smal l scal e i ndustri es (SSI)
consti tute an i mportant segment of the
Indian economy in terms of their contribution
t o t he count ry s i ndust ri al product i on,
exports, employment and creation of an
ent repreneuri al base. The Government
establ i shed the Mi ni stry of Smal l Scal e
Industries and Agro and Rural Industries
(SSI & ARI) in October, 1999 as the nodal
Mi ni stry for formul ati on of pol i ci es and
Central sector programmes/schemes, their
implementation and related co-ordination, to
supplement the efforts of the States for
pr omot i on and devel opment of t hese
industries in India. The Ministry of SSI &
ARI was bi f ur cat ed i nt o t wo separ at e
Ministries, namely, Ministry of Small Scale
Industries and Ministry of Agro and Rural
Industries in September, 2001.
1.1.2 The role of the Ministry of Small
Scale Industries is thus to mainly assist the
States in their efforts to promote growth and
devel opment of the SSI, enhance thei r
competitiveness in an increasingly market-
l ed economy and generati ng addi ti onal
employment opportunities. In addition, the
Mi ni st ry at t empt s t o address i ssues of
count ry-wi de common concerns of t hi s
segment and also undertake advocacy on
behal f of the SSI for thi s purpose. The
AN OVERVIEW
specific schemes/programmes undertaken
by the organisations of the Ministry seek to
f aci l i t at e/ pr ovi de one or mor e of t he
following:
adequate credit from financial
institutions/banks;
funds for technology upgradation
and modernisation;
integrated infrastructural facilities;
modern testing facilities and
quality certification laboratories;
access to modern management
practices, entrepreneurship
development and skill upgradation
through appropriate training
facilities;
assistance for better access to
domestic and export markets; and
cluster-wide measures to promote
capacity-building and
empowerment of the units and
their collectives, in addition to all
or some of the above-mentioned
supports.
1.2.0 ORGANISATIONS OF THE
MINISTRY
1.2.1 The formulation and implementation
of the policies and programmes/projects/
4
Annual Report 2006-2007
schemes is undertaken by the Ministry with
the assistance of its attached office and
public sector enterprise, namely, the Small
Industry Development Organisation (SIDO)
and t he Nat i onal Smal l I ndust r i es
Corporation Ltd (NSIC).
1.2.2 Government has also set up the
National Commission on Enterprises in the
Unorganised Sector (NCEUS) to suggest
policies and programmes for addressing the
wi de r ange of i ssues af f ect i ng t he
productive potential of the large segment
of unorganised micro and small productive
units.
1.3.0 SMALL INDUSTRIES
DEVELOPMENT
ORGANISATION (SIDO)
1.3.1 The Of f i ce of t he Devel opment
Commissioner (Small Scale Industries) [DC
(SSI)] is also known as the Small Industry
Devel opment Or gani sat i on ( SI DO) .
Established in 1954, it is the apex body for
assisting the Government in formulating
and overseeing the implementation of its
pol i ci es and pr ogr ammes/ pr oj ect s/
schemes. The SI DO i s headed by t he
Addi t i onal Secr et ar y & Devel opment
Commissioner (SSI).
1.3.2 SIDO provi des a comprehensi ve
range of common faci l i ti es, technol ogy
support servi ces, marketi ng assi stance,
entrepreneurial development support, etc.,
through its network of 30 Small Industries
Service Institutes (SISIs), 28 Branch SISIs,
4 Regional Testing Centres (RTCs), 7 Field
Test i ng St at i ons ( FTSs) , 2 Smal l
Ent r epr eneur Pr omot i on and Tr ai ni ng
Institutes (SEPTIs) and 1 Hand Tool Design
Devel opment and Trai ni ng Centre. The
SIDO also has a network of Tool Rooms
and Process-cum-Product Devel opment
Centres (PPDCs) to provide technology and
training support. These institutions are run
as aut onomous bodi es, r egi st er ed as
societies under the Societies Act.
1.3.3 Over the last 52 years, the SIDO
has served a very useful purpose as a
catalyst of growth of the micro, small and
medi um ent er pr i ses t hr ough i t s vast
network of field organisations spread all
over the country.
1.4.0 NATIONAL SMALL
INDUSTRIES CORPORATION
LTD. (NSIC)
The Nat i onal Smal l I ndust r i es
Corporation Ltd., (NSIC), was established
by the Government in 1955 as a Public
Sector Company, with a view to promoting,
aiding and fostering the growth of micro,
small and medium enterprises (MSMEs) in
t he count ry, wi t h f ocus on commerci al
aspect s of t hei r oper at i ons. NSI C
implements several schemes to help the
MSMEs i n t he ar eas of r aw mat er i al
procurement, product marketi ng, credi t
rating, acquisition of technologies, adoption
of improved management practices, etc.
through i ts 7 Zonal Offi ces, 26 Branch
Of f i ces, 15 Sub Of f i ces, 5 Nat i onal
5
Technical Services Centres, 2 Software
Technology Parks and 3 Technical Services
Extension Centres, spread practically all
over the country. The Corporation, an ISO:
9001-2000 Company has al so set up a
number of t ur nkey pr oj ect s i n many
developing countries.
1.5.0 NATIONAL
ENTREPRENEURSHIP
DEVELOPMENT INSTITUTES
(EDIs)
Entrepreneurship development and
training is one of the key elements for the
promoti on of Mi cro, Smal l and Medi um
Enterprises (MSMEs), particularly, the first
generation entrepreneurs. To undertake
this task on regular basis, the Ministry has
set up 3 national-level Entrepreneurship
Devel opment I nst i t ut es, vi z Nat i onal
I nst i t ut e of Smal l I ndust r y Ext ensi on
Training (NISIET) at Hyderabad, National
Insti tute of Entrepreneurshi p and Smal l
Busi ness Devel opment ( NI ESBUD) at
Noi da and I ndi an I nst i t ut e of
Entrepreneurshi p (IIE) at Guwahati , as
autonomous societies. These institutes are
engaged i n the devel opment of trai ni ng
modules, undertaking research and training
and provi di ng consul t ancy servi ces f or
ent r epr eneur shi p devel opment and
promotion of MSMEs.
1.6.0 NATIONAL COMMISSION FOR
ENTERPRISES IN THE
UNORGANISED SECTOR
(NCEUS)
The Nat i onal Commi ssi on f or
Enterprises in the Unorganised Sector has
been constituted in September, 2004 for a
period of three years. The Commission has
been given the mandate to examine the
problems of enterprises in the unorganised
sector and suggest measures to overcome
them. It consists of a Chairman, three full
time members, three part-time members
and an Advi sor y Boar d consi st i ng of
eminent experts from fields related to the
unorganised sector.
RECENT POLICY INITIATIVES
8
9
RECENT POLICY INITIATIVES
Chapter 2
2.1.0 MICRO, SMALL AND MEDIUM
ENTERPRISES
DEVELOPMENT ACT, 2006
2.1.1 There was a longstanding demand
f rom ent repreneurs, smal l i ndust ry
associations and related stakeholders for a
si ngl e comprehensi ve l egi sl ati on. The
Mi cro, Smal l and Medi um Ent erpri ses
Development (MSMED) Act, 2006 is the first
Act for micro, small and medium enterprises
which, inter alia, provides for establishment
of a statutory National Board for Micro, Small
and Medi um Ent erpri ses, f i l i ng of
memoranda, measures f or promot i on,
devel opment and enhancement of
competitiveness of micro, small and medium
enterprises, credit facilities, procurement
preference and provisions related to delayed
payments to micro and small enterprises.
The medium sector has been defined for the
first time in India and Micro enterprises have
been defined for the first time in this Act.
2.1.2 The necessary Notifications/Rules,
etc. under the Act have been notified by
the Central Government and MSMED Act,
2006 came into effect from 2
nd
October ,
2006.
2.2.0 CLASSIFICATION OF
INDUSTRIES ( NOW
ENTERPRISES )
2.2.1 Under the MSMED Act 2006, the
ear l i er , r at her l i mi t ed, concept of
Industries has been widened to that of
Ent er pr i ses . Ent er pr i ses have been
cl assi f i ed broadl y i nt o t wo cat egori es,
namel y ent er pr i ses engaged i n t he
manuf act ur e/ pr oduct i on of goods
pertaining to any industry; & enterprises
engaged in providing/rendering of services.
Enterprises have been defined in terms of
i nvest ment i n pl ant and machi ner y/
equipment (excluding land & building) as
below (Table 2.1).
Investment in plant and machinery/equipment (excluding land
and building)
Manufacturing Enterprises Service Enterprises
Micro Up to Rs. 25 lakh Up to Rs. 10 lakh
Small More than Rs. 25 lakh and More than Rs. 10 lakh and
up to Rs. 5 crore up to Rs. 2 crore
Medium More than Rs. 5 crore and More than Rs. 2 crore and
up to Rs. 10 crore up to Rs. 5 crore
De fi ni t i o n o f MSM Ent e rpri s e s : Tabl e 2 . 1
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2.3.0 APEX CONSULTATIVE BODY
WITH WIDE
REPRESENTATION OF
STAKEHOLDERS
2.3.1 Under the new Act, acti on have
been i ni t i at ed f or const i t ut i on of t he
Nat i onal Boar d f or Mi cr o, Smal l and
Medium Enterprises, which will be headed
by t he Cent r al Mi ni st er I n Char ge of
MSMEs and will consist of members from
(i ) MPs (i i ) Represent at i ves of Cent ral
Ministries (iii) State Governments (iv) UT
Administration, RBI, SIDBI, NABARD (v)
Associations of MSMEs including women
(vi) Persons of eminence and (vii) Central
Trade Union Organisations.
2.3.2 National Board for Micro, Small and
Medium Enterprises will have a statutory
status as against non-statutory SSI Board.
I t wi l l be mandat or y t o hol d quar t er l y
meetings of National Board.
2.3.3 Functions of the National Board for
MSMEs will be to (i) examine the factors
affecting the promotion and development
of MSMEs and revi ew the pol i ci es and
programmes of the Central Government in
this regard (ii) make recommendations on
matters referred to as above or any other
mat t er r ef er r ed t o i t by t he Cent r al
Gover nment ( i i i ) advi se t he Cent r al
Government on the use of Fund or Funds
constituted under section 12 of the MSMED
Act.
2.4.0 ADVISORY COMMITTEE
2.4.1 As per the provisions of MSMED
Act, 2006, the Central Government has
al r eady const i t ut ed an Advi sor y
Committee, for a period of two years with
effect from 27
th
September, 2006, which
is headed by Union Secretary In-Charge
of MSMEs. The other members are Union
Secr et ar i es of Mi ni st r y/ Depar t ment of
Commerce, Food Processing Industries,
Labour and Empl oyment , Revenue,
Advi sor ( VSI ) , Pl anni ng Commi ssi on,
Secretaries (dealing with micro, small and
medi um ent er pr i ses) , of t he St at e
Governments of Andhra Pradesh, Assam,
Ut t ar Pr adesh, Pr esi dent , Tami l nadu
Associ at i on of Cot t age and Ti ny
Ent r epr eneur s, Chennai , Pr esi dent ,
Federat i on of I ndi an Mi cro, Smal l and
Medi um Ent er pr i ses, New Del hi and
Presi dent , CI I , New Del hi . I t s member
secret ary wi l l be t he Uni on Addi t i onal
Secr et ar y and Devel opment
Commissioner (SSI), New Delhi.
2.4.2 Funct i ons of t he Advi sor y
Committee will be to (i) examine the matters
referred to it by the National Board; (ii)
advi se Central Government on matters
specified in clauses 7(i),9,10,11,12 and 14
of MSMED Act 2006 and (iii) advise State
Governments on matters specified in the
rules under clause 32 of the MSMED Act,
2006.
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OTHER INITIATIVES
2.5.0 NATIONAL MANUFACTURING
COMPETITIVENESS
PROGRAMME (NMCP)
2.5.1 The Government with an objective
t o suppor t t he manuf act ur i ng sect or
ent erpri ses (part i cul arl y t he smal l and
medium enterprises) in their endeavour to
become competitive, announced in 2005-06,
f ormul at i on of Nat i onal Manuf act uri ng
Competitiveness Programme (NMCP) The
design of the scheme was to be worked out
by t he Nat i onal Manuf act ur i ng
Compet i t i veness Counci l ( NMCC) i n
consultation with the industry.
2.5.2 Accordingly, the five year NMCP, as
finalised by NMCC was accepted by the
Gover nment and announced f or
i mpl ementati on i n the Budget 2006-07,
which comprised ten component schemes,
which, inter alia, include the schemes for
application of lean manufacturing, design
clinic, promotion of ICT in manufacturing
sect or , set t i ng up Mi ni - Tool Rooms,
technology & quality management support
for SMEs, entrepreneurial & management
development of SMEs, encouragement of
quality management standards and quality
technol ogy tool s, nati onal campai gn for
investment in intellectual property, SMEs &
t echnol ogy up-gradat i on act i vi t i es and
marketing support/assistance to SMEs. Its
implementation will be in the PPP model.
2.6.0 PACKAGE FOR PROMOTION
OF MICRO AND SMALL
ENTERPRISES
2.6.1 In order to assist the micro and small
enterprises in fully harnessing their potential by
enhancing their competitiveness to face the
challenges of stiff competition (both in the
domestic and global market) and in availing
opportunities generated by trade liberalization,
the Government in the NCMP declared that a
major promotional package will be announced
for this segment to provide full support in the
areas of credit, technological up-gradation,
marketing and infrastructure up-gradation in
major industrial infrastructure. In fulfilment of
this assurance in the NCMP, a package has
been formulated which, inter alia, include issues
concerning (i) legislative back up; (ii) credit
support; (iii) fiscal measures; (iv) support for
cluster based development; (v) technological
and quality up-gradation support; (vi) marketing
support; (vii) support for entrepreneurial and
managerial development; (viii) empowerment of
women owned enterprises; (ix) strengthening of
Prime Ministers Rozgar Yajana and (x)
strengthening of data base for MSME Sector.
2.7.0 RESERVATION / DE-
RESERVATION OF
PRODUCTS FOR
MANUFACTURE IN THE
SMALL SCALE SECTOR
2.7.1 With a view to providing to the SSI
opportunities for technological upgradation,
promotion of exports and economies of scale,
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items reserved for exclusive manufacture by
the SSI have been dereserved from time to
time. The dereservation process involves
extensive consultation with all the stake
holders, including the SSI associations and
various Ministries/Departments concerned
and the Planning Commission. As per the
provisions of the I (DR) Act an Advisory
Commi ttee has been consti tuted whi ch
recommends reservation/dereservation of
i t ems f rom t i me t o t i me. The Advi sory
Committee makes its recommendations on
the basis of the laid down procedure in the
I (D&R) Act , 1951 whi ch rel at es t o t he
economy of scale, the level of employment,
the possibility of encouraging and diffusing
entrepreneurship in industry, the prevention
of concentration of economic power to the
detriment of the common interest and any
other issue which the Committee may think
fit. The Advisory Committee has met 26 times
so far. The last meeting of the committee was
held on 24
th
October 2006. During the year
2006-07, 180 items reserved for manufacture
i n smal l scal e i ndustri es have been de-
reserved. As on date, there are 326 items
reserved for exclusive manufacture in small
scale sector.
N NN NN M MM MM
P PP PP O OO OO
13
SMALL INDUSTRIES
DEVELOPMENT ORGANISATION
(SIDO)
15
Chapter 3
SMALL INDUSTRIES DEVELOPMENT
ORGANISATION (SIDO)
3.1.0 ROLE AND FUNCTIONS
3.1.1 The Of f i ce of t he Devel opment
Commi ssi oner (Smal l Scal e Industri es)
headed by the Development Commissioner,
i s an apex body f or assi st i ng t he
Government in formulating, coordinating,
implementing and monitoring policies and
pr ogr ammes f or pr omot i on and
devel opment of t he mi cr o, smal l and
medium enterprises (MSME) in the country.
I t provi des a comprehensi ve range of
facilities and services to the MSME through
a network of 30 Small Industries Service
I nst i t ut es( SI SI s) , 28 Br anch SI SI s, 4
Regional Testing Centres (RTCs), 7 Field
Testi ng Stati ons (FTSs), 1 Hand Tool
Design Development and Training Centre
and 2 Small Entrepreneur Promotion and
Training Institutes (SEPTIs).
3.1.2 With a view to facilitating transfer
of technology for technological upgradation
of t he MSME, Technol ogy Resour ce
Centres (TRC) have been set up in all the
30 SI SI s. These Cent r es i dent i f y
appropriate technologies and work with the
MSME to assist them in acquiring them.
With increasing emphasis on cluster based
development of the MSME, the TRCs have
started concentrating on clusters of small
i ndust r i es f or del i ver y of appr opr i at e
technology related services.
3.1.3 Besides, there are 18 autonomous
bodi es operati ng wi th the SIDO, whi ch
offer to the MSME an array of services in
pr oduct desi gn, t ool i ng, r esear ch and
human resource development, marketing,
et c. These aut onomous i nst i t ut i ons
i ncl ude 10 Tool Rooms l ocat ed at
Hyder abad, Bhubaneshwar , Kol kat a,
Jamshedpur , Aur angabad, I ndor e,
Ahmedabad, Ludhi ana, Jal andhar and
Guwahati; two Central Footwear Training
I nst i t ut es at Agr a and Chennai ; t wo
Pr oduct - cum- Pr ocess Devel opment
Cent r es at Agr a and Meer ut ; one
Fragrance & Flavour Development Centre
at Kannauj, one Centre for Development
of Gl ass I ndust r y at Fi r ozabad, one
Institute for Design of Electrical Measuring
Instruments at Mumbai and one Electronic
Ser vi ce and Tr ai ni ng Cent r e at
Ramnagar.
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3.1.4 The major activities of SIDO include
the following:
Advi si ng t he Gover nment i n
f or mul at i on of pol i ci es and
programmes/projects/schemes for
the promotion and development of
the MSME.
Provi di ng t echno-economi c and
managerial consultancy, common
facility and extension services to the
MSME.
Provi di ng support for technol ogy
upgradation, modernisation, quality
i mprovement and i nf rast ruct ure
facilities.
Assi st i ng t he MSME i n human
r esour ce devel opment t hr ough
training and skill upgradation.
Provi di ng economi c i nf ormat i on
services to the MSME.
Maintaining a close liaison with the
Cent r al Mi ni st r i es, Pl anni ng
Commission, State Governments,
Fi nanci al I nst i t ut i ons and ot her
organisations concerned with the
development of the MSME.
Evol vi ng, i mpl ement i ng and
coor di nat i ng pol i ci es and
programmes for development of the
MSME as ancillaries to large and
medium industries.
Provi di ng testi ng and cal i brati on
services to the MSME.
I mpl ement i ng / moni t or i ng t he
flagship schemes of:
o Credit Guarantee Fund
o Credit Linked Capital Subsidy
for Technology Upgradation
o Smal l I ndust r i es Cl ust er
Development Programme
3.1.5 An amount of Rs. 378.11 crore has
been allocated for implementation of the
pl an schemes duri ng the fi nanci al year
2006-07.
3.2.0 SIDO SCHEMES/ MEASURES
FOR PROMOTION OF SMALL
SCALE INDUSTRIES
3.2.1 ADVERTISING AND PUBLICITY
3.2.1.1 The Adver t i si ng and Publ i ci t y
Division of Small Industries Development
Or gani sat i on ( SI DO) di ssemi nat es
information about the Government policies
and programmes, incentives and facilities
and institutional support services available
t o MSMEs. I t coor di nat es wi t h t he
Directorate of Audio Visual Publicity (DAVP)
and SI DO s f i el d of f i ces f or t i mel y
appear ance of adver t i sement s on
ent r epr eneur shi p devel opment
programmes, skill development courses,
et c. , i n l ocal l anguage newspapers i n
different parts of the country.
3.2.1.2 An ef f ect i ve medi a pl an f or
coverage was prepared for wide publicity of
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the special events organised by the Ministry
of Small Scale Industries and Ministry of
Agr o & Rur al i ndust r i es. 7 di spl ay
advertisements for National Expo of Small,
Agr o & Rur al I ndust r i es and Nat i onal
Convention & National Award Function were
designed and released in all daily English/
Hindi newspapers for wide publicity across
the country for a period of 14 days. Publicity
material for such events covering handbills,
brochures, exhibitors directory, jingles on
radio, TV spot massages, hoarding, posters,
banners i n Engl i sh & Hi ndi , et c. , was
prepared for various modes of publicity. In
addition to this, advertisement on the Micro,
Smal l and Medi um Ent er pr i ses
Development Act, 2006 was also designed
and released in the national newspapers on
2
nd
October, 2006 for general awareness.
The Di vi si on al so ar r anged t he pr ess
conference and meet and coordinated the
press coverage & releases of such events.
3.2.2 LAGHU UDYOG SAMACHAR
AND OTHER PUBLICATIONS
3.2.2.1 Laghu Udyog Samachar , a bi -
monthly Journal in English and Hindi for
MSMEs i s di ssemi nat i ng updat ed
information for the benefit of the prospective
and existing entrepreneurs. Laghu Udyog
Samachar is an important window in print
for the MSMEs, providing access to the
latest information on a variety of topics. It
cr eat es awar eness and di ssemi nat es
information on policies and programmes of
the Central and the State Governments,
Government of I ndi a orders, ci rcul ars,
gazet t e not i f i cat i ons, f i el d act i vi t i es,
statistical and economic information as well
as articles on various issues pertaining to
the MSMEs.
3.2.2.2 During the year 2006-07, following
publications were brought out:
(i) Laghu Udyog Samachar Bilingual
January - March, 2006
(ii) Laghu Udyog Samachar Bilingual
April May & June-July,
2006 (combined issue)
(iii) Laghu Udyog Samachar Bilingual
August September,
2006
(iv) Laghu Udyog Samachar Bilingual
October -December, 2006
(In press)
(v) A Guide to New English
Entrepreneurs
(vi) Naye Udmiyon Ke Liye Hindi
Margdarshika (In press)
3.2.3 INFORMATION &
FACILITATION COUNTER
(IFC)
The Informati on and Faci l i tati on
Counter (IFC) in the office of the DC (SSI)
is disseminating updated information for the
benefi t of the prospecti ve and exi sti ng
entrepreneurs. The IFC provides speedy
and easy access to information to the public
on the services and activities of SIDO and
related institutions in the area of MSMEs
18
promotion and development. The IFC is
computerised (Touch Screen Kiosk) and
supplemented by hard copies of information
such as brochures, pamphlets, books, etc.
The general information and documents
made available to the entrepreneurs pertain
to (i) counselling & information on how to
set up an enterprise and provide proper
gui dance, (i i ) document s on t echni cal
schemes, proj ect reports and detai l s of
various programmes implemented by the
SIDO, (iii) policies concerning MSMEs and
schemes of various State Governments for
promotion of MSMEs, (iv) give information
on the filing of memorandum, (v) information
on the Micro, Small and Medium Enterprises
Development Act, 2006, (vi) credit policies
of the Government, (vi) statistics related to
small scale industries, (vii) technical and
marketing information concerning MSMEs,
(vi i ) l i st of Items reserved for excl usi ve
manufacture in MSMEs, etc.
3.2.4 SMALL ENTERPRISE
INFORMATION & RESOURCE
CENTRE NETWORK (SENET)
3.6.4.1 Smal l Enterpri se Informati on &
Resource Centre Network (SENET), was
launched in April 1997 SENET has been
awarded the Golden Icon National Award 2005
for Best Documented Knowledge Resource
under Professi onal Category by the
Department of Administrative Reforms & Public
Grievances (DARPG), Government of India.
The scheme of SENET was modified and its
scope enlarged to include office automation.
The objectives of the SENET scheme are:
to pioneer, create and promote web-
based dat abase of al l r el evant
i nf or mat i on, dat a, et c. , f or t he
benefit of small scale sector;
to facilitate easier on-line access to
information seekers, especially the
small scale sector, by networking
to the extent possible, all relevant
dat a f r om Cent r al & St at e
governments, government agencies
engaged directly or indirectly in the
promotion, development, etc. of the
MSME sector, National and State-
level industry associations, NGOs,
etc.;
to establish possible linkages with
exi st i ng dat abases and t he end
entrepreneurs for development and
promotion of the small scale sector;
t o st andar di se by i nt r oduci ng
automation tools and related soft-
wares to streamline data storage
activity in the office of the DC(SSI)
wi th an obj ecti ve of bri ngi ng out
transparency of relevant real time
data through on-line access by the
public;
to create and maintain a website for
hosti ng al l rel evant data, to the
extent possible, as available within
the Office of the DC (SSI);
to al so hyperl i nk other websi tes,
especially field formations of the
19
Office of the DC(SSI), autonomous
bodi es, ot her gover nment
departments, etc. in order to enable
one-stop-access for the information
seeker s, i ndust r y associ at i ons,
individual industries, etc.;
3.2.4.2 PERFORMANCE /
ACHIEVEMENTS OF SENET
3.2.4.2.1 In the headquarters at Delhi,
IT-Infrastructure in the main Centre has
been developed with a dedicated server
room having several independent servers,
including two web-servers for hosting this
offices website. Three database servers
have been commissioned along with 2-Mbps
dedicated leased-line connectivity along
with a structured LAN. An English website
was created and launched in 2000. It was
upgraded to a knowledge-based database
dr i ven, i nt er act i ve por t al , whi ch was
launched on 30
th
August 2001. This portal
now has more than 8000 pages of static
information and is being updated regularly.
A Hindi language website has also been
created and regularly maintained through an
hyperlink. The entire IT-infrastructure has
been protected by installation of a highly
sophisticated Intruder Detection System
(IDS). Local Area Networking (LAN) has
been introduced by providing computers to
almost all the officers. All computers have
been networked wi th LAN and are al so
provided with internet connections. A few
computers have been provided with access
to view live parliamentary proceedings. On-
l i ne dat a f or I SO-9000 rei mbursement
scheme has been introduced. The latest
MSMED Act-2006 has been hosted on the
websi t e. Document Management
I nf or mat i on Syst em ( DMI S) has been
introduced to enable a system to track file
tracking.
3.2.4.2.2 In field offices of the Office of
t he DC(SSI ), 20 SENET Cent res were
initially given networking equipment for 64
kbps leased line connection to the main
centre and database building. 10 more SISIs
were provided with networking hardware.
Almost all SISIs will be networked during
the current financial year. All SISIs have
been hyperlinked to website of the Office
of the DC(SSI). Thirty numbers of Touch
Screen Kiosks have been installed in all the
f i el d of f i ces, namel y Smal l I ndust r i es
Services Institutes (SISIs) throughout the
country to enable information seekers get
any web-based data pertaining to office of
the DC(SSI).
3.2.5 MODERNISATION OF SIDO
LIBRARIES
3.2.5.1 SI DO mai nt ai ns l i br ar i es at i t s
headquarters and i n al l i ts fi el d offi ces.
These libraries make available technical
information required for the development of
t he SSI . The l i brari es are used by t he
officers of the institutes and entrepreneurs
in the area to learn about new developments
i n var i ous segment s of i ndust r i al and
busi ness envi r onment . The l i br ar i es
20
maintain technical books, journals, reports,
project profiles, statistical surveys, other
related publications, etc.
3.2.5.2 During the year 2006-07, funds to
the tune of Rs. 19 lakh have been provided
to 37 Institutes to purchase technical books,
journals, magazines including installation of
computer to keep update record of the
books.
3.2.6 SCIENCE & TECHNOLOGY,
RESEARCH AND
DEVELOPMENT
3.2.6.1 ELECTRONICS SERVICE &
TRAINING CENTRE (ESTC),
RAMNAGAR, UTTARANCHAL
El ect roni cs Servi ce & Trai ni ng Cent re
(ESTC) has been set up at Ramnagar
(Uttarakhand) with UNDP assistance as a
Government of Indi a Soci ety under the
Societies Registration Act, 1860 in April
1986 in the State of Uttarakhand. The main
obj ecti ve of setti ng of thi s Centre i s to
devel op human resources t o meet t he
essent i al r equi r ement s f or t r ansf er of
technology in assembly and manufacturing
of electronic items and parts to promote
growth of electronics industry in the small
scal e sect or. The proj ect was i ni t i al l y
approved by the Government of India in
September 1985 and the Centre became
operational in April 1989.
3.2.6.2 INSTITUTE FOR DESIGN OF
ELECTRICAL MEASURING
INSTRUMENTS (IDEMI)
The I nst i t ut e f or Desi gn of El ect r i cal
Measuring Instruments (IDEMI) was set up
i n Mumbai (Maharasht ra) i n 1969 wi t h
UNDP assistance for assisting, mainly, the
smal l scal e i ndust ri es i n t he areas of
desi gni ng, t ool i ng and manuf act ur i ng
electrical, electronics and process control
measuring instruments. The Institute has
been regi stered as a Soci ety under the
Societies Registration Act, 1860.
3.2.6.3 PROCESS CUM PRODUCT
DEVELOPMENT CENTRE
(SPORTS GOODS & LEISURE
TIME EQUIPMENTS), MEERUT.
Process cum Product Development Centre
(Sports Goods & Leisure time equipments),
Meerut was set up during 1984 as a Govt.
of Indi a Soci ety wi th UNDP assi stance
mainly to cater to the technical need of
sports goods industry in the country. The
Cent re ai ms at upgradat i on as wel l as
improvement in existing technology, quality
cont r ol , i n house R&D act i vi t i es and
providing Workshop & Testing facilities to
the sports goods & allied industry.
Significant work done during the year: (i)
CNC Technology Centre under mechanical
wor kshop of PPDC, Meer ut has been
started during June 2006 for the benefit of
Spor t s Goods i ndust r y ( i i ) A t est i ng
l abor at or y i n t he pr emi ses of CI HT,
Jalandhar has been started in the month of
August 2006 for the benefit of Sports Goods
industry at Jalandhar (iii) A wood seasoning
plant for common facility centre at Sethar
21
for cricket bat cluster of District Anantnag,
(Jammu & Kashmir)under small industry
cluster development programme costing to
Rs.2.46 Crores is being installed by this
Centre on turn key basis. The first module
of seasoning plant has been installed at the
site.
3.2.6.4 CENTRE FOR THE
DEVELOPMENT OF GLASS
INDUSTRY, FIROZABAD
With a view to modernize the existing glass
industry and upgrade the technology for the
manufacture of different types of glasses,
a Centre for the Devel opment of Gl ass
I ndust r y ( CDGI ) was est abl i shed by
Government of India with the assistance of
UNDP and active support of Government of
Uttar Pradesh. The main objective of the
Centre is to provide technical support to the
smal l scal e gl ass i ndust r y by way of
installation of energy efficient glass melting
furnaces, auxillary furnaces, introduction of
new t ype of gl asses and t hei r
standardization, environmental protection
and to introduce developed techniques for
the decoration of glasswares and training
for skill development so as to improve the
quality and productivity of glass units.
Technical officers of Glass & Ceramic Trade
have prepared and submitted 16 project
profiles on various items till date (ii) Provide
Technol ogy and Qual i t y Upgr adat i on
Support (i i i ) I dent i f i ed a t echnol ogy,
namely Vertical Shaft Brick Kiln (VSBK)
Technology, under Technology and Quality
Upgradation Programme of Govt. of India
which has been approved by CCEA and will
be provided to five clusters of small scale
bri ck manufacturers at di fferent pl aces
initially in Punjab, U.P. and M.P. Directors,
SISI of the respective States have been
di r ect ed t o st ar t t he gr ound wor k f or
implementation of the said programme.
3.2.6.5 PROCESS AND PRODUCT
DEVELOPMENT CENTRE, AGRA
Process and Product Development Centre,
Agra was set up in 1985 with the assistance
of Government of India, Government of UP
and UNDP/UNIDO.
PPDC, Agr a has under t aken t he
development work of divided blast cupola
for the sewing machine cluster, Ludhiana
(ii) PPDC, Agra has conducted diagnostic
study for the agriculture implements cluster,
Karnal (iii) PPDC, Agra has received the
recognition of NCVT for different ongoing
long term training courses (iv) Under the
Cl ust er Devel opment Pr ogr amme, t he
Centre has undertaken the brass/bronze
cluster of Pareb (Bihar) and is in process
to set up a common facility centre at Pareb
to assist the SSI units. The Centre is also
working on the development of gun cluster
at Munger. PPDC has already prepared the
study reports of these clusters.
22
3.2.6.6 CENTRAL INSTITUTE OF TOOL
DESIGN, HYDERABAD
Central Institute of Tool Design, Hyderabad
was established in the year 1968 by Govt.
of India with the assistance of UNDP/ILO.
Ori gi nal i nvestment i n the Insti tute was
Rs.2.37 crore. The aim of the Institute was
to fulfil tooling and training needs of small
scale industries in the field of Tool Design
and manufacturing.
Significant work done during the year: (i) The
Institute has developed import substitute tools
for Research Centres, IMARAT (a DRDO
establishment) (ii) Under the bilateral training,
the Institute had trained 25 international
participants from Iraq, Nigeria, Cambodia,
Philippines, Tanzania, Zambia, Thailand,
Syria, Uzbekistan, Bangladesh & Sri Lanka
(iii) The Institute has arranged 96 State
Government scholarships amounting to Rs.
19. 20 l akh duri ng 2005-06 t o soci al l y
backward classes like SC/ST/OBC and also
physi cal l y di sabl ed candi dates (i v) The
Ordinance Factories Institute of Learning,
Ordnance factory Board, Yeddumaialaram
enlisted the training services of the Institute
for training Junior Works Manager (direct
recrui tment) i n CAD/CAM area (v) The
facilities at the tool room has been upgraded
to keep pace with the latest technological
developments (vi)The training modules are
designed as per the need of the industry with
more emphasis on hands on training.
3.2.6.7 FRAGRANCE & FLAVOUR
DEVELOPMENT CENTRE,
KANNAUJ (U.P.)
Fragrance and Flavour Development Centre
has been set up at Kannauj in 1991 by Govt.
of India in collaboration with UNDP/UNIDO
and Govt . of U. P. f or t echnol ogi cal
upgr adat i on of essent i al oi l s, ar oma
chemicals, fragrance & flavour industry in
the country, especially in the small scale
sector. The Centre is being managed by a
regi st ered Soci et y under t he Soci et i es
Registration Act, 1861.
Total 11 fragrance & flavour were created
f or aggar bat t i , hai r oi l , spr ay, ar oma
vaporizer and confectionary products (ii)
FFDC has t aken ext ensi on wor k f or
cultivation of aromatic crops such as French
basi l , mi nt s, l emongr ass, pal mr osa,
citronella, patchouli, rose, buch, jatropha
and safed musli.
3.2.7 TRAINING AND MANPOWER
DEVELOPMENT
3.2.7.1 CENTRAL FOOTWEAR
TRAINING INSTITUTE, CHENNAI
The Central Footwear Training Institute,
Chennai i s a Govt . of I ndi a Soci et y
f unct i oni ng under Smal l I ndust r i es
Devel opment Organi sat i on, Mi ni st ry of
Small Scale Industries. The basic objective
of t he I nst i t ut e i s t o devel op human
resources for footwear and allied industries
through various training programmes on
footwear technology and allied subjects.
23
The Institute is presently conducting various
types of long term, short term and part time
trai ni ng courses on vari ous subj ects of
footwear technol ogy. Besi des thi s, the
institute provides technical support services
to the user industry by making its facilities
avai l abl e t o t hem. The I nst i t ut e al so
provides services for development of new
products and patterns as per given sample
or concept.
Significant work done during the year (i)
Under HRD mi ssi on, CFTI have been
allotted 14,400 candidates to be trained
during this year 2006-07 out of which 85%
of candi dates are women. So far 7200
candi dat es i ncl udi ng 6120 women
candi dates have been trai ned (i i ) CFTI,
Chennai has installed CAD/CAM facility,
CNC milling machine for making sole mould,
PU Pouring machine for making unit sole,
f oot bed & compl et e shoe and Di e l ess
cut t i ng machi ne f or cut t i ng of upper
components without using the die in the
Institute for providing training as well as
common faci l i ty servi ces to smal l scal e
industries (iii) CFTI, Chennai secured third
place at international level in a designing
compet i t i on organi zed by LI NEAPPLE,
ITALY, which is a remarkable achievement
of the year 2006-07.
3.2.7.2 CENTRAL FOOTWEAR
TRAINING INSTITUTE, AGRA
The Central Footwear Training Institute,
Agra is a Govt. of India Society functioning
under Smal l I ndust r i es Devel opment
Or gani sat i on, Mi ni st r y of Smal l Scal e
I ndust r i es. The basi c obj ect i ve of t he
Institute is to develop human resources for
f oot wear and al l i ed i ndust ri es t hrough
various training programmes on footwear
t echnol ogy and al l i ed subj ect s. The
Institute is presently conducting various
types of long term, short term and part time
trai ni ng courses on vari ous subj ects of
footwear technol ogy. Besi des thi s, the
Institute provides technical support services
to the user industry by making its facilities
avai l abl e t o t hem. The I nst i t ut e al so
provides services for development of new
products and patterns as per given sample
or concept.
Significant work done during the year (i) A
footwear proj ect for the devel opment of
ar t i sans i n cl ust er ar ea has been
undertaken from Gujrat Industries Marketing
Corporation Limited, Gandhinagar, Gujrat in
which 19 artisans have been trained (ii)
CFTI, Agra has installed CAD/CAM facility,
CNC milling machine for making sole mould,
PU Pouring machine for making unit sole,
f oot bed & compl et e shoe and Di el ess
cut t i ng machi ne f or cut t i ng of upper
components without using the die in the
Institute for providing training as well as
common faci l i ty servi ces to smal l scal e
industries.
3.2.7.3 Under t he Umbr el l a of Smal l
I ndust r i es Devel opment Or gani zat i on
(SIDO) Ministry of SSI & ARI, there are 30
Small Industries Service Institutes (SISIs)
and 28 Branch SISIs spread all over the
24
count r y r ender i ng t echno- manager i al
assi st ance t o SSI f or t hei r growt h and
devel opment . Besi des provi di ng ot her
services for the development of small scale
industries, these Institutes organize number
of training programmes to train potential
entrepreneurs in improving their techno/
managerial knowledge and skill with a view
to facilitating them to start their small scale
industries including service enterprises in
various fields.
The training programmes conducted
are:-
1. Industri al Moti vati on Campai gns
(IMCs)
2. Ent r epr eneur shi p Devel opment
Programmes (EDPs)
3. Ski l l Devel opment Pr ogr amme
(SDPs)
4. Management Devel opment
Programmes (MDPs)
3.2.7.4 INDUSTRIAL MOTIVATION
CAMPAIGNS (IMC)
SIDO conducts Industrial Motivation
Campaigns(IMCs) (duration of 1 day or 2
days) to identify and motivate traditional /
non- t r adi t i onal ent r epr eneur s havi ng
pot ent i al f or set t i ng up smal l scal e
industries so as to lead them towards self-
empl oyment. Duri ng 2006-07, 360 IMCs
have been conducted and upto December,
2006 as many as 48, 000 pr ospect i ve
entrepreneurs including 4500 SC, 1700 ST
and 6200 women have been motivated to
st art t hei r uni t s. Around 320 I MCs are
expected to be conducted during remaining
months of the financial year for motivating
about 33,000 entrepreneurs.
3.2.7.5 ENTREPRENEURSHIP
DEVELOPMENT PROGRAMMES
(EDPs)
Ent r epr eneur shi p Devel opment
Programmes are bei ng organi zed as a
regular training activity. The duration of
these training programmes varies from 4 to
6 weeks and mi ni mum i nt ake of 20
par t i ci pant s i n each cour se. Gener al
Ent r epr eneur shi p Devel opment
Programmes were organized by the field
institutions of SIDO. The course contents
of such Entrepreneurshi p Devel opment
Programmes were so designed so as to
provi de usef ul i nf ormat i on on product /
process design, manufacturing practices
i nvol ved, t est i ng and qual i t y cont r ol ,
sel ect i on and usage of appr opr i at e
machinery and equipments, project profile
preparation, marketing avenues/techniques,
pr oduct / ser vi ce pr i ci ng, expor t
oppor t uni t i es, i nf r ast r uct ur e f aci l i t i es
available, financial and financial institutions,
cash flow, etc. Field visits to small scale
units and hand-on-training on machines/
processes were also arranged.
The revised training schedules also assist
ent r epr eneur s i n pr epar i ng det ai l ed
feasibility report their appropriate appraisal,
25
evaluation, modification, if necessary, also
being advised for carrying out corrections
i n feasi bi l i ty report. Programmes so far
or gani zed i nt er - al i a i ncl uded Her bal
Cosmet i cs, Hi gh Fashi on Gar ment s,
Hosiery, Food & Fruit Processing Industries,
I nf or mat i on Technol ogy, Har dwar e
Mai nt enance, Soap and Det er gent s,
Leather Products/Novelties, Servicing of
Househol d El ect r i cal Appl i ances and
El ect r oni c Gadget s, Gem Cut t i ng &
Pol i shi ng, Engi neeri ng Pl ast i cs , Tour
operators, Mobile repairing, Beautician etc.
During the year 2006-07, 564 EDPs have
been conducted and 12000 entrepreneurs
including 2800 SC, 350 ST and 3200 women
have been trained up to December 2006.
Around 220 EDPs are expect ed t o be
conducted during the remaining months for
pr ovi di ng t r ai ni ng t o ar ound 6000
entrepreneurs.
3.2.7.6 SEPTI, TIRUVALLA
The Small Entrepreneurs Promotion and
Training Institute Tiruvalla was setup during
1994 wi t h t he obj ect i ve t o gener at e
employment opportunities in rural as well
as urban areas through setting up of micro
ent er pr i se, and pr oper t r ai ni ng f or
shar peni ng t he t echni cal ski l l s and
encour agi ng t he manager i al t al ent i n
ent r epr eneur s. SEPTI Ti r uval l a was
conceived to be a full time training institute
to train 1000 entrepreneurs every year. At
present all the training programmes are of
2 months EDPs and courses are scheduled
on a quarterly pattern. The result of good
training an average of 25 % of the trainees
of this institute succeed in setting up their
own i ndustry, some of the trai nees are
getting jobs in foreign countries and most
of them are getting jobs in other parts of
the country. During 2003-04 SEPTI Tiruvalla
has earned an amount of Rs.16.54 lakh
through different EDPs.
3.2.7.7 SEPTI, ETTAMANUR
The Product i on Cent re Et t amanur was
conver t ed i nt o Smal l Ent r epr eneur
Promotion and Training Institute in the year
2000 for i mparti ng trai ni ng to arti sans/
ent r epr eneur s of Ker al a i n var i ous
disciplines as per the need of the area. The
Institute constantly identified and reviews
t he new emergi ng t rades havi ng qui ck
employment potential, develops appropriate
curricula focusing on end job profiles. The
cour ses compr i se of ar t i san t r ade,
management , I T sof t war e, comput er
hardware and other emerging technologies
including bio-technology etc.
3.2.8 SKILL DEVELOPMENT
PROGRAMME
Compr ehensi ve t r ai ni ng
programmes are organi zed t o upgrade
existing skills and to create new skills in
wor ker s and t echni ci ans of SSI s by
or gani si ng var i ous t echni cal t r ai ni ng
courses for them. The basic objective has
been to provide training to skilled workers
engaged in small scale units and to equip
26
them with better and improved technological
ski l l s of pr oduct i on. Techni ci ans and
workers sponsored by t he MSMEs are
imparted such training to develop their skills
in different trades at 42 Workshops attached
to SISIs all over India. Small Industries
Service Institute (SISIs) in their Workshops
or gani ze r egul ar cour ses i n var i ous
t echni cal t r ades and manuf act ur i ng
processes. Such techni cal courses are
conducted twice/thrice a year by the SISIs.
Courses conducted by SISIs are in Machine
Shop Pr act i ce, Heat Tr eat ment s,
Electroplating, Sheet metal, Welding Tool
& Die Making, Carpentary, Lens Grinding,
Cerami cs, I ndust ri al & Art Wares, et c.
Besides SISIs, Regional Testing Centres,
Tool Room and Training Centres, Process-
cum-Product Development Centres, Central
Foot wear Tr ai ni ng I nst i t ut es and
Entrepreneurshi p Trai ni ng Insti tutes are
also imparting training in different trades to
upgrade t he ski l l s of t he workers and
artisans. Emphasis have been given to
organize specific tailor made programmes
f or t he ski l l devel opment of soci al l y
di sadvant aged gr oups ( OBC, SC, ST,
Minorities and women) in regions of the
states including the less developed areas.
3.2.8.1 During the year 2006-07, 180 SDPs
have been conduct ed and 3100
and 200 women have been trained up to
December 2006. Around 150 SDPs are
expect ed t o be conduct ed dur i ng t he
remaining months for providing training to
around 3000 entrepreneurs.
3.2.9 OUT-REACH PROGRAMME
FOR SKILL DEVELOPMENT IN
BACKWARD AREAS
In order to cater to specific requirements of
disadvantaged groups and for backward
areas, which face problem in travelling to
ur ban cent r es f or at t endi ng t hese
devel opment pr ogr ammes, Out - r each
Pr ogr ammes f or Ski l l Devel opment i n
Backward Areas are under consideration.
I t i s pr oposed t o st ar t some of t hese
programmes in this year as Pilot Schemes.
Amongst autonomous organi zati ons, an
exercise has been undertaken by the CFTIs,
PPDCs, CDGI, FFDC to advise short time
programmes and their financing is under
consideration. Such bodies have also been
advi sed t o cont act st at e and cent r al
agencies that are interested in assisting
such pr ogr amme and dovet ai l some
programmes in collaboration with them.
3.2.10 MANAGEMENT
DEVELOPMENT
PROGRAMMES (MDPs)
3.2.10.1 Or gani zi ng Management
Devel opment Tr ai ni ng pr ogr ammes
constitutes an integral part of the activities
of SI DO besi des counsel l i ng and
consultancy services. Management Training
cour se on var i ous ar eas of i ndust r i al
management initiatives are also devised for
owner-cum-manager and supervisory level
personnel of small scale industries. These
training programmes are continuously re-
structured in their contents keeping in view
27
the demands of the area and the l ocal
requirements of the industries. The nature
of target groups and its profile determines
the modification in course content to be
made in order to make them suitable for
cont empor ar y manager i al t r ends and
practices which may be used by small scale
industry executives for attaining desired
strength of managerial action. The subjects
covered under these training programmes
pertain to various aspects of Management
covering Industrial Management, Human
Resour ce Management , Mar ket i ng
Management , Expor t Management &
Documentati on, Materi al s Management,
Fi nanci al Management , I nf or mat i on
Technology & Exports, ISO 9000, WTO, IPR
etc.
3.2.10.2 During the year 2006-07, 210
MDPs have been conduct ed and 5300
and 450 women have been trained up to
December 2006. Around 180 MDPs are
expect ed t o be conduct ed dur i ng t he
remaining months for providing training to
around 3700 entrepreneurs.
3.3.0 WTO CELL
3.3.1 A separate WTO Cell in the Office
of Development Commissioner (Small Scale
Industries) was set up during 1999 to co-
ordinate the latest developments in regard
to World Trade Organization. The objectives
of the Cell inter-alia include (a) to keep
abreast with the recent developments in the
WTO, (b) to disseminate information to SSI
Associations and other stakeholders about
the vari ous aspects of WTO & i ts l i kel y
implications for the small enterprises, (c) to
coor di nat e wi t h ot her Mi ni st r i es and
Departments of the Govt. of India, (d) to
assi st pol i cy f or mat i on f or MSMEs i n
conformi ng wi th the provi si ons of WTO
Agreement s and (e) t o organi ze WTO
Sensi t i zat i on Workshops/ Semi nars f or
creating awareness, capacity building and
sectoral study.
3.3.2 With a view to create awareness
among the MSMEs units, SSI Associations
& other stakeholders on WTO Agreements
and its implications for them, this Ministry
is organizing workshops/seminars all over
the country. As part of this process, three
awareness programmes on various aspects
of WTO are to be organised during current
year.
3.3.3 6 one-day workshops on Intellectual
Property Rights (IPRs) have been organised
during the current year so far. It is further
pr oposed t o or gani se 8 mor e such
programmes for creating awareness on this
issue for the MSME sector.
3.3.4 The Cell is maintaining close liaison
wi t h ot her concer ned Mi ni st r i es and
Departments like Ministry of Commerce &
Industry, Directorate General of Foreign
Trade, Directorate General of Anti-dumping
& Allied Duties, DG (Safeguard), so as to
keep updat ed wi t h r egar d t o WTO
Agreements and to protect the interests of
small scale industries.
28
3.3.5 In view of the sixth WTO Ministerial
Conf er ence, a meet i ng on WTO
negoti ati ons on Non-Agri cul tural Market
Access (NAMA) was organised under the
chai rmanshi p of Addi ti onal Secretary &
Development Commissioner (SSI) and in
consultation with the Ministry of Commerce
& Industry. Various SSI associations & other
stakeholders participated in this meeting
and exchanged t hei r vi ews / concerns
regarding the SSI sector.
3.3.6 As par t of t he i nt er - mi ni st er i al
consultation process, inputs were provided
to the Ministry of Commerce and Industry
in regard to the ongoing negotiations on
various trade agreements for exchange of
tariff concessions. These agreements, inter
alia, included SAARC Preferential Trading
Arrangement (SAPTA), India - Singapore
Comprehensi ve Economi c Cooperat i on
Agreement (CECA), Free Trade Agreement
(FTA) wi th GULF Co-operati on Counci l
(GCC), Preferential Trade Agreement (PTA)
between India & Mauritius under Framework
of Comprehensive Economic Partnership
Agr eement , I ndi a- ASEAN Tr ade
negot i at i ons Gr oup Kul al ampur ;
BIMSTEC-FTA.
3.4.0 INTELLECTUAL PROPERTY
RIGHTS (IPR)
3.4.1 With the onset of the trade related
aspect s of I nt el l ect ual Propert y Ri ght s
(TRIPS) agreement under WTO and the
consequent changes made by vari ous
countri es i n thei r IPR l aws i ncl udi ng by
India, the issues of IPR have gained special
i mportance i n the Smal l Scal e Industry
sector. It was noticed that changes of far
reaching consequences were being effected
i n t he busi ness l andscape wi t hout t he
MSME sector being aware of it. It was also
felt that IPRs require understanding and
attenti on by the i ndustry. To meet thi s
objective, the IPR Cell was created in the
office of DC (SSI) in the year 2001-02 for
generating awareness amongst the MSMEs
on IPR rel ated i ssues. The smal l scal e
entrepreneurs are being sensitised to the
need for protection and methodology to be
adopted for IPR management through not
onl y di f f usi on and upgr adat i on of
technology, but also employing existing IPR
resources for the purpose. Till date, more
t han 75 such pr ogr ammes have been
or gani sed t hr ough SI SI s al l over t he
country. During the current financial year
2006-07, i t i s proposed t o conduct 24
sensitization programmes, out of which 10
programmes have been conducted so far
and rest will be completed in the coming
mont hs. Fi ve of t hese sensi t i zat i on
pr ogr ammes ar e bei ng or gani sed i n
association with European Union (EA)
India, Trade and Investment Development
Programme (TIDP). With the initiatives of
the office of DC(SSI), Kulu Shawls(Kulu)
and Wet Grinder(Coimbatore) have been
registered under Geographical Indications
(GI) Act and efforts are being made to assist
other group of industries/clusters to register
under G.I. Act. This office alongwith World
Intellectual Property Organisation (WIPO)
has made a short film on IPR especially for
29
the guidance of the MSMEs. By protecting
their intellectual property, small scale units
can i ncrease t hei r compet i t i veness. I P
protection will help in -
Pr event i ng compet i t or s f r om
copyi ng or cl osel y i mi t at i ng a
companys product or services.
Avoi di ng wast ef ul i nvest ment i n
r esear ch and devel opment and
marketing.
Cr eat i ng a cor por at e i dent i t y
through a trademark and branding
strategy.
Increasing the market value of the
company and enhancing access to
new market.
Intellectual Property Rights consist
of Patent, Trade Marks, Industrial
Desi gns, Copy Ri ght s, Tr ade
Secr et s and Geogr aphi cal
Indications etc.
3.5.0 BIOTECHNOLOGY
3.5.1 A Biotechnology Cell was created in
the office of the Development Commissioner
(Small Scale Industries) on 16.08.2002 to
deal with the matter for the development
and promotion of biotechnology industry in
the small scale sector. A Task Force has
al so been creat ed i n t he Of f i ce of t he
Devel opment Commi ssi oner ( SSI ) t o
suggest new initiatives for the development
and growth of smal l enterpri ses i n thi s
sect or wher ei n Depar t ment of
Biotechnology, Govt. of India and Biotech
Consor t i um I ndi a Li mi t ed ( BCI L) ar e
member s. The obj ect i ve of t he
Biotechnology Cell is also to identify the
pot ent i al ar eas of bi ot echnol ogy f or
expl oi t at i on and concer t ed ef f or t s f or
promoting the MSME industrial activities in
this area. The areas of tissue culture, bio-
f er t i l i zer s, bi o- pest i ci des, mushr oom
cultivation, solid waste management are in
focus.
3.5.2 To disseminate information on the
use of bi ot echnol ogy, a number of
sensitization programmes on biotechnology
in various parts of the country have been
organized during the recent years and more
such programmes will be organized in near
future. These sensitization programmes are
being organized in collaboration with the
Department of Biotechnology and Biotech
Consortium India Ltd.(BCIL), New Delhi and
various State Government agencies.
3.5.3 During year 2006-07, 2 three days
trai ni ng programmes were conducted at
New Delhi and Bangalore on IPR related
issues specially for Biotechnology based
units alongwith World Intellectual Property
Or gani sat i on ( WI PO) , Dept t . of
Biotechnology through Biotech Consortium
India Ltd. (BCIL) New Delhi. Also a set of
guidelines for establishing Biotechnology
based units is under preparation for the
guidance of the prospective entrepreneurs.
30
3.5.4 To assist MSME entrepreneurs in
get t i ng basi c under st andi ng of t he
technologies, products and processes, a
set of project profiles have been prepared
i n coordi nati on wi th the Department of
Bi ot echnol ogy and Bi ot ech Consort i um
I ndi a Li mi t ed cover i ng t he f ol l owi ng
areas:
Plant Tissue Culture
Bio fertilizers
Bio pesticides
Fr esh Wat er Pr awn Cul t ur e /
Hatchery
Vermicomposting
Micro propagation Technology
Medicinal Plant Extractions
PCR Diagnostics
Organic farming
3.6.0 NATIONAL AWARD TO
SMALL SCALE
ENTREPRENEURS
3.6.1 The Scheme of honour i ng
entrepreneurs wi th Nati onal Awards to
Small Scale Entrepreneurs for displaying
ent r epr eneur i al ski l l s and t r ai t s was
instituted by Government of India in the
year 1983. The objective of the scheme is
to boost up the morale and motivate the
small scale entrepreneurs to manage their
Shri Pranab Mukherjee, the then Honble Defence Minister and Shri Mahabir Prasad, Honble Union
Minister of SSI & ARI giving away prize to a successful woman entrepreneur
31
units in such a manner that they achieve
hi gher l evel s of pr oduct i vi t y t hr ough
modernization, market expansion, export
devel opment , i nnovat i ons et c. Thr ee
National Awards (First, Second and Third)
and Speci al Recogni ti on Awards for an
ent r epr eneur exhi bi t i ng out st andi ng
performance from each of the participating
States/UT are given under this Scheme.
Duri ng the year 1993, the scheme was
extended to add Special Awards at par with
t he Fi rst Nat i onal Award t o honour an
outstanding woman entrepreneur and an
out st andi ng ent r epr eneur f r om SC/ ST
communi t y. Besi des a Tr ophy and a
Certificate, the First, Second & Third Award
car r y a Cash Pr i ze of Rs. 25, 000/ - ,
Rs.20,000/- and 15,000/- respectively. The
Special Recognition Award carries a cash
prize of Rs.10,000/- each and a Trophy and
a Certificate.
3.6.2 20 ent r epr eneur s have been
honoured with these Awards for the year
2005 by the Honble Defence Minister in
the convention held on 7
th
October 2006.
Shri Pranab Mukherjee, the then Honble Defence Minister alongwith Shri Mahabir Prasad, Honble
Union Minister of SSI & ARI is giving away the National Award. From left to right are, National Awardee,
Shri A.C. Jose, Chariman Coir Board, Union Minister (SSI & ARI), then Defence Minister, Shri Anupam
Dasgupta, the then Secretary (SSI&ARI) and Shri Jawhar Sircar, Addtional Secretary and Development
Commissioner (SSI)
32
3.7.0 NATIONAL AWARD FOR
RESEARCH AND
DEVELOPMENT
3.7.1 Government of India have instituted
a Scheme of National Awards under the title
Nat i onal Awards f or Research &
Devel opment Efforts i n Smal l Scal e
I ndustri es f rom t he year 1999. The
objective of the Scheme is to encourage in-
house R&D efforts including innovation in
Small Scale Industries. Under this Scheme,
Fi rst , Second and Thi rd Awards are
conferred to deserving registered small scale
industries. The First, Second and Third
Awards carry a Cash Prize of Rs. 25,000/-,
Rs. 20,000/- and Rs. 15,000/- respectively
besides a Certificate and a Trophy.
3.7.2 3 ent r epr eneur s have been
honoured with these Awards for the year
2005 by Honble Defence Minister in the
convention held on 7
th
October 2005.
3.8.0 NATIONAL AWARD FOR
QUALITY PRODUCTS
3.8.1 Government of Indi a i nsti tuted a
scheme of National Awards under the title
Nati onal Award for Qual i ty Products i n
Small Scale Sector in the year 1986. The
mai n obj ect i ves of t he scheme ar e t o
promote the concept of Quality and Quality
Assur ance amongst t he smal l scal e
ent repreneurs. Smal l Scal e I ndust ri es
engaged in the production of such items
selected for the year are honoured with
33
Awards. One National Award is given for
each category of the items selected. The
award carries a Trophy, a Certificate and a
Cash Prize of Rs.25,000/-. 18 entrepreneurs
have been honoured with these Awards for
the year 2005 for 18 products groups by the
Honble Defence Minister in the convention
held on 7
th
October 2006.
3.9.0 SUB-CONTRACTING
EXCHANGE FOR ANCILLARY
DEVELOPMENT
3.9.1 Ancillarisation and sub contracting
in India, started simultaneously with the
Government setting up enterprises almost
in all the core sectors viz. manufacturing
equi pment f or def ence/ r ai l ways/
t el ecommuni cat i on, heavy el ect r i cal ,
el ect r oni cs, chemi cal s, f er t i l i zer s,
pet rol eum/ pet ro-chemi cal s and vari ous
ot her engi neer i ng and pr ocessi ng
industries. The large industries notably HMT
and other PSUs started sub-contracting low
tech items to small scale/ancillary industries
that developed a sound base.
3.9.2 In order to help the vendees/vendors,
Sub Contracting Exchanges were set up by
Small Industries Development Organisation
(SIDO) in selected Small Industries Service
Institute for storing data with regard to the
capacities and capabilities of small scale units
in terms of products manufactured/services
rendered. The Sub Contracting Exchange
also maintains the requirements of buyers,
which could be products, components, sub-
assemblies, and services
3.9.3 The main objective of storing such
a data is to arrange match-making through
an appropriate software between a buyer
and sel l er that may resul t i n i ncreased
business opportunities. 35 Sub-contracting
Exchanges have been set up i n Smal l
Industries Service Institute/Branch Small
Industries Service Institutes. Under Small
I ndust r i es Devel opment Or gani sat i on
(SIDO) which are now being strengthened
under the exi sti ng scheme by provi di ng
necessary capital equipment, furniture etc.
3.9.4 Under thi s scheme, the fi nanci al
assistance up to Rs. 4.7 lakh is provided to
Industries Association/NGOs for purchasing
capital equipment such as Computer and
accessories, suitable software, furniture,
phot ocopi er machi ne, t el ephone, Fax
machine, spiral binding & cutting machine,
etc.
3.9.5 A matching grant is also provided
to these Exchanges on tapering basis for
building rent, stationery, phone/fax charges,
electricity charges and conveyance at the
rate of 50%, 30% and 10% of the running
expenses not exceeding Rs.1.25, 0.75 and
0.25 lakh per year respectively during the
initial three years subject to a ceiling of Rs.
1.57 lakh per SCX.
3.9.6 So f ar 61 Sub- Cont r act i ng
Exchanges have been sanctioned which
have been set up by I ndust r i es
Associations/NGOs in various parts of the
country up to 30.11.06. Four more Sub-
contracting Exchanges are likely to be set
34
up duri ng the remai ni ng months of the
financial year 2006-07.
3.9.7 Under the existing scheme, Vendor
Development Programme both at National
and State Level are also conducted by Small
Industries Service Institute. These Vendor
Devel opment Pr ogr ammes pr ovi de a
common platform for large scale industries
i .e. purchasi ng organi zati ons and smal l
scale industries as sellers to interact with
each other and establish long term linkages.
3.9.8 2 Vendor Devel opment
Programmes have been conducted by the
Smal l Industri es Servi ce Insti tute i n the
different part of the country till 30.11.2006
and about 43 Vendor Devel opment
Programmes are likely to be conducted in
the remaining months of the financial year
2006-07.
3.10.0 SCHEMES OF TOOL ROOMS
3.10.1 CENTRAL TOOL ROOM,
LUDHIANA
Central Tool Room, Ludhiana was
established by Govt. of India in technical
collaboration with Govt. of Federal Republic
of Germany and wi th acti ve support of
Government of Punj ab for provi di ng the
services in the area of tooling (Tool Design
and Tool Manufacture), Precision Machining,
Heat Treatment, Technical Training and
Technical Consultancy to metal working
industry in general and small scale industries
in particular so as to improve the quality and
productivity of such units.
Est abl i shed one of t he best Rapi d
Pr ot ot ypi ng Cent r e i n t he count r y ( i i )
Devel oped sever al t ool i ngs as I mpor t
Trainees at Central Tool Room, Ludhiana
35
substitution for SSIs (iii) III Moulds were
devel oped for Door Cl oser and l ock for
exporting products to snowing regions of
Europe for a SSI uni t (i v) Speci al Heat
Treatment process was establ i shed for
surgical tools, dies, moulds etc.
3.10.2 INDO-GERMAN TOOL ROOM,
AHMEDABAD
Indo-German Tool Room, Ahmedabad was
est abl i shed by Government of I ndi a i n
technical collaboration with the Government
of Federal Republic of Germany. The Tool
Room has been set up to fulfil the tooling
and t rai ni ng needs of t he smal l scal e
industries in the field of Tool Design and
Manuf act ur e and t r ai ni ng of t echni cal
personnel in these fields.
Devel oped several t ool i ngs as i mport
substitution for SSIs (ii) The facilities at the
tool room has been upgraded to keep pace
with the latest technological developments
(iii) The training modules are designed as
per the need of the i ndustry wi th more
emphasis on hands on training (iv) The Tool
Room developed import substitute moulds
f or bul l et case magazi ne f or def ence
requirement, a thin walled article moulds for
an SSI unit. Few progressive tools were
made f or pump i mpel l er i mprovi ng
productivity and pump efficiency.
3.10.3 INDO GERMAN TOOL ROOM,
INDORE
I ndo- Ger man Tool Room, I ndor e was
est abl i shed by Government of I ndi a i n
technical collaboration with the Government
of Federal Republic of Germany. The State
Government of Madhya Pradesh provided
land and building to the project. The Tool
Room has been set up to fulfil the tooling
and t rai ni ng needs of t he smal l scal e
industries in the field of Tool Design and
Manuf act ur e and t r ai ni ng of t echni cal
personnel in these fields.
The Tool Room has completed the precision
motion jacks which has been exported to M/
s. CERN, Switzerland on behalf of Centre
for Advanced Technology, Indore (ii) The
Tool room developed Injection Mould for
Switchgear Industry (iii) Developed several
toolings as import substitution for SSIs (iv)
The facilities at the tool room has been
upgraded t o keep pace wi t h t he l at est
technological developments (v) The training
modules are designed as per the need of
the industry with more emphasis on hands
on training.
3.10.4 INDO-GERMAN TOOL ROOM,
AURANGABAD
I ndo- Ger man Tool Room,
Pratical training of trainees at IGTR, Indore
36
Aur angabad was est abl i shed by
Gover nment of I ndi a i n t echni cal
col l abor at i on wi t h t he Gover nment of
Federal Republic of Germany. The State
Government of Maharashtra provided land
and building to the project. The Tool Room
has been set up to fulfil the tooling and
training needs of the small scale industries
in the field of Tool Design and Manufacture
and training of technical personnel in these
fields.
The t ool r oom has achi eved I SO
14001: 2004 cert i f i cat e (Envi ronment al
Management System) (ii) The tool room has
successfully conducted the training course
of one-year duration in the area of Tool &
Di e Maki ng for 22 students from South
Africa (iii) Developed several toolings as
import substitution for SSIs (iv) The tool
room is taking steps to develop e-learning/
e- t eachi ng pr act i ces i n t ool and di e
technology (v) The facilities at the tool room
has been upgraded to keep pace with the
latest technological developments (vi) The
training modules are designed as per the
need of the industry with more emphasis on
hands on t r ai ni ng ( vi i ) Near l y 100%
placement for the long term trainees has
been achieved (viii) MoUs have been signed
for continuous CAD/CAM and Tool Design
educat i on wi t h Jawahar l al Nehr u
Engineering College Aurangabad ad MGM
College of Engineering, Nanded (ix) To have
awareness about t he t rai ni ng courses
offered by the tool room, various schools
have been approached to arrange the visit
of their students to tool room and large
number of students from different schools
have visited the facilities of IGTR (x) The
tool room has first time developed the 2-
wheel er LPDC di e f or M/ s. Endurance
Transmission System.
3.10.5 CENTRAL TOOL ROOM &
TRAINING CENTRE, KOLKATA
Cent ral Tool Room & Trai ni ng Cent re,
Kolkata has been established during 1977-
Pratical training of trainees at IGTR, Aurangabad
37
78 under technical co-operation programme
bet ween Gover nment s of I ndi a and
Denmark to upgrade technol ogy and to
consolidate the project.
Devel oped sever al t ool i ngs as i mpor t
substitution for SSIs (ii) The Centre has
devel oped, manuf act ured and suppl i ed
Blanking Die for Two Rupee Coin to Govt.
of India Mints- Kolkata and Mumbai with
necessar y modi f i cat i ons i n t he Coi n
Desi gn as desi red by the Mi nts. Si nce
these Blanking Die used to be imported
earlier by the Mints these supplies have
enabl ed the Mi nts to save consi derabl e
amount of Forei gn Exchange (i i i ) The
training modules are designed as per the
need of the industry with more emphasis
on hands on training (iv) The facilities of
the tool room has been upgraded to keep
pace wi t h t he l at est t echnol ogi cal
developments.
3.10.6 CENTRAL TOOL ROOM &
TRAINING CENTRE,
BHUBANESHWAR
Cent ral Tool Room & Trai ni ng Cent re,
Bhubaneshwar has been set up in the year
1991 under Techni cal Co- oper at i on
Programme between Government of India
and Government of Denmark, for whi ch
agreement was signed in June, 1989.
CTTC, Bhubaneswar has got t he
Occupat i onal Heal t h and Saf et y
Admi ni strati ve System (OHSAS) 18001
certificate from NQA Certification Body (ii)
A total of 520 trainees were placed in 86
different companies including 65 SMEs (iii)
Tailor made Training for Trainers Programme
conduct ed on CNC Programmi ng and
Comput er Hardware Mai nt enance
Management conduct ed f or Di rect or of
Technical Education & Training, Orissa. 19
Infrastructure at TRTC, Kolkota
38
l ect urers, i nst ruct ors f rom di f f erent
Government Polytechnics participated in the
programme (iv) Summer Vacation Training
is being conducted for 1008 Engineering
st udent s f rom 40 di f f erent Engi neeri ng
Colleges of 5 States out of which 233 are
girls. This is the highest number of students
the Tool Room has ever handled at a time
(v) Manufactured 3 samples components to
be used for tri-cycle meant for physically
handi capped f or Art i f i ci al Li mbs
Manufacturing Corporation, Bhubaneswar
(vi) Executed machining of Guide Block for
manufacturing of complex holes on turbine
blades, which are being exported to USA,
f or a Kol kat a based SSI , M/ s. Dut t a &
Dasgupta.
3.10.7 INDO DANISH TOOL ROOM,
JAMSHEDPUR
Indo-Danish Tool Room, (formerly Central
Tool Room & Training Centre), Jamshedpur
has been set up in the year 1991 under
Techni cal Co- oper at i on Pr ogr amme
bet ween Gover nment of I ndi a and
Government of Denmark.
Devel oped several t ool i ngs as i mport
substitution for SSIs (ii) The facilities at the
tool room has been upgraded to keep pace
with the latest technological developments (iii)
The training modules are designed as per the
need of the industry with more emphasis on
hands on training (iv) Nearly 100% placement
has been achieved for various long term
t rai nees (v) Govt . of Jharkhand has
sponsored trai ni ng programmes for the
students of SC/ST/Minority.
3.10.8 HAND TOOL DESIGN
DEVELOPMENT AND TRAINING
CENTRE, NAGAUR.
The Hand Tool Design Development
39
and Training Centre, Naguar (SIDO FIELD
UNI T) has been set up at Nagaur i n
Raj asthan i n the year 1988. The mai n
objective of this project is to develop hand
tool i ndustry i n smal l and ti ny secti ons
l ocat ed i n around Nagaur by provi di ng
consul t ancy and advi sor y ext ensi on
services in the areas of tool room, heat
t reat ment , met al f i ni shi ng, f orgi ng and
testing, common facility services to these
small and tiny industries. They are also
assisting small scale units to adopt modern
technology in the field of product design,
production process and quality control for
cost r educt i on and i mpr ovement i n
profitability. Testing facilities and training
facilities are also provided for upgradation
of qual i t y of pr oduct i on and t r ai ned
manpower.
3.10.9 CENTRAL INSTITUTE OF HAND
TOOL, JALANDHAR
Wi t h a vi ew t o upgrade t he hand t ool
technology in the country and to provide
t he necessar y t echnol ogy suppor t
services, the Govt. of India has set up the
Cent r al I nst i t ut e of Hand Tool s as a
National Institute at Jalandhar in the State
of Punj ab as aut onomous organi sat i on
with the assistance of U.N. I.D.O. in the
year 1983.
The facilities at the tool room has been
upgraded t o keep pace wi t h t he l at est
technological developments (ii) The training
modules are designed as per the need of
the industry with more emphasis on hands-
on t rai ni ng (i i i ) Process devel oped f or
manuf act ur e of Hex shaf t i ndust r y
machi ner y at var i ous st ages ( i v) The
institute has received ISO 9001:2000 and
ISO 14000:2004 certification.
3.10.10 TOOL ROOM & TRAINING
CENTRE, GUWAHATI
TRTC Guwahat i i s bei ng set up by
Government of India at Guwahati with an
obj ect i ve t o cr eat e f aci l i t i es f or
manuf act uri ng of t ool s & di es and f or
training in tool & die making in the North
East Region. The land & building for the
project is being provided by Government of
Assam. The first phase of construction of
building is nearing completion, however,
TRTC Guwahati has started the training
activities in the campus of SISI, Guwahati.
3.10.11 MINI TOOL ROOM & TRAINING
CENTRE
A Mi ni Tool Room Scheme has been
approved to help State Governments to set
up Small Tool Rooms for creating localized
t r ai ni ng and pr oduct i on f aci l i t i es f or
rendering assistance to the small scale units
i n t he f i el d of Tool & Di e Maki ng. The
scheme provides one time assistance upto
90% of the cost of machinery & equipment,
limited to Rs. 9 crore, for setting up a new
Mini Tool Room and 75% cost of machinery
& equipment limited to Rs. 7.5 crore for
upgradation of existing Mini Tool Room.
The balance machinery cost and the cost
40
of l and and bui l di ng and r ecur r i ng
expenditure is funded by the concerned
State Government.
OBJECTIVES:
(a) Manufacture of jigs, fixtures, cutting
tools, gauges, press tools, plastic
moul ds, f or gi ng di es, pr essur e
casting dies and other tooling for
small scale industries. Advanced
tool maki ng process usi ng CAD/
CAM techniques are to be adopted.
(b) To provide training facility in tool
manufacturing and tool design to
generate a work force of ski l l ed
workers, supervi sors, engi neers/
designers etc.
(c) To work as a Nucleus Centre for
providing consultancy, information
servi ce, document at i on et c. f or
sol vi ng t he probl ems rel at ed t o
tooling of industries in the region.
(d) To act as a Common Facility Centre
for smal l scal e i ndustri es and to
assist them in product and prototype
development.
PRESENT STATUS:
The proposals received from Governments
of Keral a, Madhya Pradesh, Karnataka
( Hubl i & Hassan) , West Bengal f or
Upgradation of their existing tool rooms and
proposals from Governments of Nagaland,
Tri pura, Jharkhand (Ranchi & Dumka),
Chhattisgarh for setting up of new Mini Tool
Rooms have been appr oved and
procurement of machinery & equipment is
i n pr ogr ess. MTRs at Bhopal , Ar oor
(Kerala), Howrah, Dimapur (Nagaland) are
already functioning.
3.11.0 MARKETING ASISTANCE AND
EXPORT PROMOTION
3.11.1 PARTICIPATION IN OVERSEAS
TRADE FAIRS
The SIDO is to participate in 10 fairs for the
year 2006-07. Upt o November, 2006,
DC(SSI) has parti ci pated i n four fai rs -
Hannover Messe 06, Germany, DIY Show,
Japan, Made-in-India Show, China & ATF-
06, Cape Town (South Africa) and exhibits
of 51 SSI units were displayed by 40 SSI
representatives under SIDO stall. Exhibits
from 72 SSI units are expected for display
by their representatives in the remaining six
International Trade Fairs under SIDO stall
upto March, 2007.
3.11.2 SSI-MDA SCHEME
As per modified guidelines, participating unit
in trade fair may get total subsidy upto Rs.
1.25 lakh per unit (Rs. 1.5 lakh for micro
manufacturing enterprise) once in a year
towards subsidy on space rent, shipping
cost & ai r fare. Thi s year, 90 i ndi vi dual
participants will benefit under the scheme.
Rs. 5.25 lakh have been reimbursed to 35
SSI uni t s f or adopt i on of Bar Code
Certificate from GS1 and about 45 SSI units
are anticipated to avail subsidy for adoption
41
of Bar Code upto March, 2007. Under the
scheme, seven market studies will be also
taken by SISIs.
3.12.0 REGIONAL TESTING
CENTRES
3.12.1 SIDO i s operati ng four Regi onal
Testi ng Centres(RTCs) l ocated at New
Del hi , Mumbai , Chennai and Kol kat a.
Regional Testing Centres provide testing
and cal i brati on faci l i ti es to i ndustri es i n
gener al and smal l scal e i ndust r i es i n
particular for raw materials, semi finished
and fi ni shed products, manufactured by
them. These centres are equipped with the
St at e of art i ndi genous and i mport ed
equipments in the disciplines of chemical,
mechani cal , metal l urgi cal and el ectri cal
engi neeri ng to under take performance
test, type test and acceptance test of semi
f i ni shed, f i ni shed pr oduct s et c. The
Centres also undertake calibration works
for measuring instruments and equipments
conf i r mi ng t o i nt er nat i onal st andar ds.
These Cent r es ar e accr edi t ed by
i nt er nat i onal l y r ecogni zed Nat i onal
Accr edi t at i on Boar d of Test i ng &
Calibration laboratories(NABL) certification
as per ISO(17025).
Mechanical Calibration
Electrical Calibration
Metallurgical Testing & Analysis
42
3.13.0 FIELD TESTING STATIONS
3.13.1 In order to provide testing facilities
in the area with cluster of industries and
some strategic areas, the Government of
I ndi a have set up seven Fi el d Test i ng
St at i ons at Jai pur , Bhopal , Kol hapur ,
Hyderabad, Bangalore, Pondicherry and
Chenganacher r y. The Fi el d Test i ng
St at i on, Chenganacher r y has been
recently shifted to the premises of Small
Ent r epr eneur Pr omot i on and Tr ai ni ng
I nst i t ut e ( SEPTI ) , Et t umanur . These
Test i ng St at i ons ext end f aci l i t i es f or
testing of various products viz .chemicals,
dye- st uf f s, l amps, r ubber pr oduct s,
cast i ngs and f or gi ngs, pai nt s and
varnishes, domestic electrical appliances,
general engineering etc.
f aci l i t i es. These FTSs i n f act act as
extension of the RTCs thereby serving the
needs of the industries situated in far-flung
areas. The Fi el d Test i ng St at i ons are
r egul ar l y moder ni zi ng/ upgr adi ng t hei r
facilities to cater the need of industries in
gener al and SSI sect or i n par t i cul ar ,
situated in their locality.
3.13.3 The budget provision is made for
meet i ng bot h t he r ecur r i ng and non-
recurri ng expendi t ure of Fi el d Test i ng
Stations (FTSs). The performance of Field
Testing Stations in terms of number of jobs
executed, tests conducted and the revenue
earning is monitored continuously.
3.13.4 The performance of FTSs during
last four years is as follows (Table 3.2)
Year Revenue Recurring %age of Revenue/ No. of jobs No. of tests
earned Expenditure Expenditure completed performed
(Rs. lakh) (Rs. lakh) (self-sufficiency
level)
2002-03 238.80 344.30 69.35 12336 134646
2003-04 268.50 343.18 78.24 12409 139569
2004-05 259.74 367.88 70.60 10872 136362
2005-06 247.60 393.50 62.92 11616 134454
2006-07 (up to 227.69 319.82 71.19 9031 115157
31
st
Dec.06)
Jan.07to 75.90 106.61 71.19 3010 38386
March07
(Anticipated)
3.12.2 The performance of RTCs and their
self-sufficiency level during last four years
are as follows (Table 3.1).
3.13.2 The presence of FTSs in the field
has enabled the cluster of industries in the
smal l scal e sector to uti l i ze the testi ng
Pe rfo rmanc e o f RTCs : Tabl e 3 . 1
43
3.14.0 SETTING UP OF TESTING
CENTRES BY INDUSTRIES
ASSOICATION &
MODERNISATION/EXPANSION
OF QUALITY MARKING
CENTRES UNDER THE AEGIS
OF STATE GOVERNMENTS
3.14.1 Under t hi s scheme,
Government of Indi a provi des one ti me
capital grant-in-aid equal to 50% of the cost
of t est i ng equi pment and machi ner y
(restricted to Rs.50 lakh) to the Industries
Associations, to set up and operate testing
laboratories of international standards and
also for modernization/expansion of existing
Qual i t y Mar ki ng Cent r es of St at e
Government and their autonomous bodies.
3.14.2 The scheme cover s t he
Test i ng Labor at or i es est abl i shed by
Industries Associations including Chamber
of Commerce, I ndust ri al Co-operat i ves
r egi st er ed under t he Soci et i es
(Registration) act or under any statutory Act.
It also covers expansion/modernization of
the existing centres under the aegis of State
Governments and State Government funded
autonomous bodies.
3.14.3 The year-wi se expendi t ure
incurred so far and the number of testing
centres assisted during the current plan are
furnished below (Table 3.3)
S. Year Expenditure No. of
No. incurred Centres
(Rs. in lakh) assisted
1. 2002-03 9.50 1
2. 2003-04 Nil -
3. 2004-05 40.95 1
4. 2005-06
5. 2006-07 8.84 1
(up to Nov., 06)
Year Revenue Recurring %age of Revenue/ No. of jobs No. of tests
earned Expenditure Expenditure completed performed
(Rs. lakh) (Rs. lakh) (self-sufficiency
level)
2002-03 50.38 81.36 61.55 8004 34508
2003-04 61.59 78.32 78.64 11035 43306
2004-05 82.88 88.80 93.33 15150 57269
2005-06 85.25 96.59 88.26 16378 57963
2006-07 (up to
31
st
Dec.06 68.79 80.60 85.35 12400 41507
Jan.07 to
March07
(Anticipated) 22.93 26.87 85.35 4133 13836
Pe rfo rmanc e o f FTSs : Tabl e 3 . 2
Expe ndi t ure i nc urre d/ No . o f
Te s t i ng Ce nre s as s i s t e d : Tabl e 3 . 3
44
3.15.0 TECHNOLOGY UPGRADATION
3.15.1 SMALL INDUSTRY CLUSTER
DEVELOPMENT PROGRAMME
(SICDP)
3.15.1.1 Br oadl y, t he Cl ust er
Devel opment Pr ogr amme ( CDP)
implemented till March, 2006 consisted of
assi stance mai nl y i n soft areas whi ch
encompasses act i vi t i es l i ke gener al
awareness and trust building, counselling,
training and capacity building, exposure
vi si t s, cr edi t f aci l i t at i on, mar ket
developments etc. It was felt that the hard
component , whi ch i s di rect ed t owards
assisting technology improvements, quality
standardization and testing mainly in the
form of Common Facility Centres (CFCs)
equipped with a variety of hardware and
f aci l i t i es whi ch i ndi vi dual cl ust er uni t s
cannot af f or d but ar e necessar y f or
technology upgradation, ensuring quality
standards, need to be suitably incorporated
as one of the important component of the
CDP implemented by SIDO.
3.15.1.2 Keeping this in view and the
need for providing stimulating environment
for innovative and competitive micro & small
enterpri ses, the SICDP gui del i nes were
comprehensively revised in March, 2006
making the cluster programme more broad-
based by facilitating substantial economics
of scale in terms of deployment of available
resources in the medium to long term. The
Government of Indias assistance under the
scheme was enhanced upto Rs.8 crore to
support soft as well as hard intervention
i ncl udi ng setti ng up of common faci l i ty
centres. The revised guidelines were given
wider publicity and all state governments
have been repeatedly requested to send
suitable proposals for consideration under
t hi s scheme. Af t er i ssui ng t he revi sed
Guidelines, three proposals for setting up
CFCs have been approved so far during the
current year. In addition, diagnostic studies
of 104 new clusters have also been taken
up to i denti fy the area of i nterventi ons
required in these clusters.
3.15.1.3 The st r at egy i s now t o
subsume t he essent i al f eat ures of t he
schemes havi ng col l ecti ve approach for
development of clusters such as Scheme
for Integrated Infrastructural Development
and Scheme f or set t i ng up of Test i ng
Cent r es/ pr ogr ammes under SI CDP.
Al t hough t he obj ect i ve of SI CDP i s t o
provi de assi stance to MSE for common
purpose, it is also not less important to
strengthen industrial units located in the
cluster individually. There are schemes of
Mi ni st r y of SSI f or cr edi t , t echnol ogy
upgradation, quality certification, such as,
Credit Guarantee Scheme for investment,
Credit Linked Capital Subsidy Scheme for
technology upgradation, ISO 9000/14001
reimbursement scheme for certification, etc.
through which assistance is provided to an
individual micro & small enterprise. Under
t he new approach, t he emphasi s i s t o
dovetail all such schemes under SICDP for
t he over al l devel opment of MSE and
optimum utilisation of resources.
3.15.1.4 Several other Mi ni stri es/
Departments and agencies have also taken
up their versions of cluster development. In
45
order to harmonise divergences in the concept
as well as content of cluster development
programmes, an Empowered Group of
Ministers (EGoM) has been constituted very
recentl y under the chai rmanshi p of the
External Affairs Minister. Ministry of SSI has
been nominated for servicing the EGoM.
3.15.2 ISO-9000/ISO-14001
CERTIFICATION
REIMBURSEMENT SCHEME
3.15.2.1The process of economic liberalisation
and market reforms has opened up the Indian
small scale sector to global competition. In
order to enhance the competitive strength of
the smal l scal e sector, the Government
introduced an incentive scheme for their quality
improvement and environment management.
The scheme provides incentive (of upto Rs. 75,
000 per unit) to SSI units which acquire ISO
9000/ISO 14001 certifications. The scheme, in
operation since March 1994, was enlarged to
i ncl ude rei mbursement of expenses for
acquiring ISO 14001 certification also w.e.f. 28
th
October 2002.
3. 15. 2. 2 The procedural gui del i nes,
application forms, etc., have been placed on
the SIDO website, (www.laghu-udyog.com)
and (www.smallindustryindia.com).
3.15.2.3 Since the inception of the scheme of
ISO-9000 reimbursement, 13433 SSI units
amounting to Rs. 70.88 crore have been
benefited upto Nov.2006. Year wise status of
the units reimbursed under ISO 9000 Incentive
Scheme is as under (Table 3.4)
St at us of t he uni t s re i mburs e d unde r ISO 9 0 0 0 Inc e nt i ve Sc he me : Tabl e 3 . 4
Year No. of Units Amount of assistance (Rs. crore)
1993-94 3 Rs. .016
1994-95 10 Rs. .043
1995-96 48 Rs. .25
1996-97 54 Rs. .39
1997-98 85 Rs.0.49
1998-99 174 Rs. 0.96
1999-2000 361 Rs.2.25
2000-2001 649 Rs.4.05
2001-2002 992 Rs.6.00
2002-2003 1182 Rs.6.99
2003-2004 917 Rs.4.77
2004-05 3314 Rs.17.33
2005-06 4101 Rs.19.44
2006-07 1543 Rs. 7.37(up to 21.11.06)
Total: 13433 Rs.70.88
Average assistance/unit = Rs. 52,765
46
3.16.0 ENERGY CONSERVATION
PROGRAMME (UNDER
TECHNOLOGY
UPGRADATION SCHEME)
3.16.1 I n pur suance t o t he Nat i onal
Programme on Energy Conservation, Small
Industry Development Organisation (SIDO)
launched this programme in small scale
industries in the year 1990-1991. There are
many energy intensive areas in small scale
sector, such as foundry, forging, steel re-
rolling mills, glass & ceramic, bakeries, etc.
The source of energy for these industries
i s coke/ coal , pet r ol eum pr oduct s and
electricity. The consumption of energy in
this small scale sector is very high.
3.16.2 Achi evements of the programme
upto December 2006 during 2006-07 are:
No. of programmes allocated
to SISIs and RTCs 33
Programme conducted upto
Dec, 2006 4
No. of persons benefited from
SSI sector 60
3.17.0 UPGRADATION OF SIDO
WORKSHOP INTO MINI TOOL
ROOM
3.17.1 A Scheme of Upgradation of SIDO
Workshops i nt o Mi ni Tool Rooms was
approved in 1992-93, envisaging conversion
of a f ew common f aci l i t y wor kshops
attached to SISIs/Br. SISIs into Mini Tool
Rooms. Consequent l y, CNC machi nes,
CAD/ CAM sof t war e, et c. , have been
provided to the workshops at SISI, Mumbai,
Chennai, Bangalore, Jaipur, Delhi, Kolkata,
Kanpur, Ludhi ana, Indore, Patna, Goa,
Thrissur, Guwahati, Jammu and Ranchi and
Br. SISI, Mangal ore, Varanasi , Gwal i or,
Hubli, Allahabad, etc. CAD/CAM facilities
have also been provided in selected SIDO
field offices as per the need of the area.
3.17.2 During the year 2006-07, till 31
st
Dec. 2007 an amount of Rs. 98.2 lakh was
allotted to SISI/ Br. SISIs for purchase of
new CNC machi nes and CAD/ CAM
Software. During the year, SISIs located
at Allahabad, Guwahati, Mumbai, Chennai,
Kanpur, Bangalore purchased high tech-
machi nes and CAD/CAM softwares. Ti l l
date, 17 workshops has been upgraded
under this scheme.
3.18.0 INTEGRATED
INFRASTRUCTURAL
DEVELOPMENT (IID) SCHEME
3.18.1 The I nt egr at ed I nf r ast r uct ur al
Development (IID) aims at providing basic
i nf r ast r uct ur al f aci l i t i es l i ke power
di st r i but i on net wor k, wat er , r oads,
telecommunication, drainage and pollution
cont r ol f aci l i t y, banks, st or age and
mar ket i ng out l et s, common ser vi ce
f aci l i t i es and t echnol ogi cal back up
services etc., to enable establishment of
small scale and tiny units, thereby creating
employment opportunities and increasing
exports. The scheme covers rural as well
as urban areas with a provision for 50%
47
r eser vat i on f or r ur al ar eas and 50%
industrial plots for tiny sector. The scheme
al so pr ovi des f or upgr adat i on/
st r engt heni ng of t he i nf r ast r uct ur al
f aci l i t i es i n t he exi st i ng ol d i ndust r i al
estates.
3.18.2 Under the scheme the State/Union
Territory governments concerned or a good
Non-governmental organization (NGO) with
sound financial position are required to select
suitable sites, firm up the project proposal
and get the proj ect apprai sed by Smal l
I ndust ri es Devel opment Bank of I ndi a
(SIDBI). The estimated cost for setting up
an IID centre is Rs. 5 crore (excluding the
cost of l and). The cent ral government
provides 40% of the cost as grant, limited to
a maximum of Rs. 2 crore and the remaining
amount would be loan from SIDBI/Banks/
Financial institutions or state funds.
3.18.3 In order to provide a fillip to the
growth of small scale industries, a special
incentive is envisaged in the scheme for the
North Eastern Region (including Sikkim),
J&K, Himachal Pradesh and Uttarakhand
with a provision of central grant up to 80%
of the project cost (subject to a maximum
of Rs. 4 crore).
3.18.4 The IID scheme is demand driven
and the initiative for setting up of an IID
centre has to be taken by the state/Union
Territory governments.
3.18.5 Upto December, 2006, 105 Centres
i n var i ous st at es, i ncl udi ng 21 f or
upgradation of old industrial estates, have
been approved. Out of the 84 new centres,
34 cent r es have been compl et ed and
remaining others are at various stages of
implementation. Small and tiny units have
been established in 48 centres and they are
operational. In all 2112 units have been
established and 21878 persons have been
empl oyed. As r egar ds pr oj ect s f or
upgradation of infrastructural facilities, work
in two projects has been completed which
has hel ped enhancement of operati onal
ef f i ci ency of t he uni t s l ocat ed t herei n.
Central grant of Rs. 115.87 crore has been
released (in full or a part) to 98 centres upto
31. 12. 2006. Dur i ng 2006- 07 ( upt o
December, 2006), 3 new IID centres have
been sanctioned.
3.19.0 COLLECTION OF STATISTICS
OF SSIs
3.19.1 The scheme was started during Fifth
Fi ve Year Pl an peri od i n 1975 wi th the
obj ect i ve t o col l ect , compi l e and
disseminate statistical data/information on
small scale industrial sector. Conduct of
Census, Sample Survey, collection of IIP
data and Updation of frame are covered
under t he scheme. The scheme i s
implemented through State Directorates of
Industries (SDIs) and its Districts Industries
Centres (DICs).
3.19.2 The coverage of the scheme has
been extended to collect data on the Micro,
Small and Medium Enterprises since 2
nd
October 2006 (the day of commencement
48
of the MSMED Act 2006). A decision has
also been taken to conduct a new census
for the MSMEs. To facilitate launching of
the census, it is intended to computerize all
DICs duri ng the 11
th
Fi ve Year Pl an for
which a proposal has been submitted to the
Planning Commission.
3.19.3 Under the Scheme the fol l owi ng
work are being undertaken:
Computation of Index of Industrial
Production for small scale sector for
working out growth in production.
Supply of monthly production data
to Central Statistical Organisation
(CSO) so as to represent SSI sector
i n the overal l Index of Industri al
Product i on (I I P) brought out by
(CSO).
Estimation of information on number
of units un-registered.
Est i mat i on of pr oduct i on,
employment both registered & un-
registered.
Updation of Frame and analysis of
Regi st r at i on dat a and
cor r espondence wi t h St at e/ UT
Directorates of Industries.
Conduct i ng census and sampl e
survey/diagnostic survey, from time
to time.
3.19.4 Perf ormance under t he Scheme
during 2006-07 is as under:
Col l ect i on/ col l at i on of dat a f or
compilation IIP for SSI sector (with
base 1970).
Updation in the base year for IIP for
SSI from 1970 to 2001-02.
Data collection on 18 reserved items
for inclusion in the general index of
CSO
Analysis of Registration data.
Preparing work concerning of the 4
th
census of MSMEs.
3.19.5 INDEX OF INDUSTRIAL
PRODUCTION (IIP) FOR SSI
SECTOR
The objective of IIP is to estimate the growth
in production of SSI sector. It is compiled
on a quarterly basis. The IIP is constructed
based on a basket of 356 items contributing
77% of production as per the First Census.
This data is collected from 2400 units having
an annual production of Rs. 1 crore. As a
follow up of the Third Census it has been
decided to change the base year from 1970
to 2001-02 and also to select a new basket
so as to make the IIP more representative.
Accordingly, at All India level, a basket of
468 items covering 24,749 industrial units
have been selected. These items contribute
about 75.5% of the production of the SSI
Sector.
49
3.19.6 PERFORMANCE OF SSIs
3.19.6.1 Based on the data received from
the sampled units, the quarterly index with
the base year 2001-02 for the period April 2002
to March 2006 has been compiled. The growth
rates of SSI sector for the year 2002-03, 2003-
04, 2004-05 and 2005-06 estimated on the
basis of the new series of IIP vis--vis old series
of IIP and with total manufacturing sector are
given below (Table 3.5)
It may be seen that the overall industrial
growth rate of the Small Scale Industries
sect or i n t erms of I ndex of I ndust ri al
Production (IIP) (Base: 2001-02=100) rose
to 12.32% duri ng the year 2005-06 as
compared to 10.88% during the year 2004-
05. The SSI sector has also consistently
registered a higher growth rate as compared
to the overall manufacturing sector.
3.19.6.2 The Offi ce of the DC (SSI)
provides estimates in respect of various
performance parameters relating to the growth
Year Growth rates of Growth rates of Growth rates of
1970 base IIP 2001-02 base IIP manufacturing sector
with base year 1993-94
2002-2003 7.68 % 8.68 % 6.0
2003-2004 8.59 % 9.64 % 7.4
2004-2005 9.96 % 10.88 % 9.2
2005-2006 10.40 % 12.32 % 9.1
Growt h rat e s of SSI s e c t or : Tabl e 3 . 5
of SSI Sector. The table showing the time
series data on various economic parameters
is given below (Table 3.6).
50
Pe rfo rmanc e o f RTCs : Tabl e 3 . 1
Sl. Year Total SSI Fixed Production( Rs crore) Employment Exports
No. units (lakh Inves- . Current Constant (lakh (Rs.
numbers) tment Prices Prices persons) crore)
(Rs crore) (1993-94)
1 1990-91 67.87 93555 78802 84728 158.34 9664
2 1991-92 70.63 100351 80615 87355 165.99 13883
(4.07) (7.26) (2.30) (3.1) (4.83) (43.66)
3 1992-93 73.51 109623 84413 92246 174.84 17784
(4.07) (9.24) (4.71) (5.6) (5.33) (28.10)
4 1993-94 76.49 115795 98796 98796 182.64 25307
(4.07) (5.63) (17.04) (7.1) (4.46) (42.30)
5 1994-95 79.60 123790 122154 108774 191.40 29068
(4.07) (6.9) (23.64) (10.1) (4.79) (14.86)
6 1995-96 82.84 125750 147712 121175 197.93 36470
(4.07) (1.58) (20.92) (11.40) (3.42) (25.46)
7 1996-97 86.21 130560 167805 134892 205.86 39248
(4.07) (3.82) (13.60) (11.32) (4.00) (7.62)
8 1997-98 89.71 133242 187217 146262.9 213.16 44442
(4.07) (2.05) (11.57) (8.43) (3.55) (13.23)
9 1998-99 93.36 135482 210454 157525.1 220.55 48979
(4.07) (1.68) (12.41) (7.7) (3.46) (10.21)
10 1999-00 97.15 139982 233760 170379.2 229.10 54200
(4.07) (3.32) (11.07) (8.16) (3.88) (10.66)
11 2000-01 101.1 146845 261297 184401.4 238.73 69797
(4.07) (4.90) (11.78) (8.23) (4.21) (28.78)
12 2001-02 105.21 154349 282270 195613 249.33 71244
(4.07) (5.11) (8.03) (6.06) (4.44) (2.07)
At 2001
-02 prices
13 2002-03 109.49 162317 314850 306771 260.21 86013
(4.07) (5.16) (11.54) (8.68) (4.36) (20.73)
14 2003-04 113.95 170219 364547 336344 271.42 97644
(4.07) (4.87) (15.78) (9.64) (4.31) (13.52)
15 2004-05 118.59 178699 429796 372938 282.57 124417
(4.07) (4.98) (17.90) (10.88) (4.11) (27.42)
16 2005-06 123.42 188113 497842 418884 294.91 NA
(4.07) (5.27) (15.83) (12.32) (4.37)
Ti me s e ri e s dat a : Tabl e 3 . 6
51
3.19.7 COMPARISON OF THE SSI
SECTOR WITH THE OVERALL
INDUSTRIAL SECTOR
The small-scale sector has maintained a higher
rate of growth vis--vis the overall industrial
sector. The comparative growth rates of
production for both the sectors during last five
years are given below (Table 3.7)
conducted with the reference year of 2001-
02 was 249. 33 l akh number s. Uni t s
operated with fixed premises are treated as
SSIs. As per the estimates compiled for the
year 2005-06 the employment was 294.91
lakh persons in SSI sector. The share of
SSIs in the total employment among units
engaged in manufacturing and services is
around 34.93%.
3.19.10 THE DATABASE ON THE
MSME SECTOR
The MSMED Act came into effect on 2
nd
October 2006. Accordingly, the coverage
and t he i nvest ment cei l i ng have been
widened and the sector is now called as
micro, small and medium enterprises sector.
There i s an i mmedi at e requi rement t o
update the database accordingly. A fresh
census is going to be conducted during
2007-08 to serve the purpose.
3.20.0 CREDIT GUARANTEE FUND
SCHEME FOR SMALL
INDUSTRIES
3.20.1 Government introduced the Credit
Guar ant ee Fund Scheme f or Smal l
Industries in May 2000, with the objective
of maki ng avai l abl e credi t to SSI uni ts,
particularly tiny units, for loans up to Rs.
10 l akh wi t hout col l at er al / t hi r d par t y
guarantees. The scheme is being operated
by the Credi t Guarantee Fund Trust for
Small Industries (CGTSI) set up jointly by
the Government of India and SIDBI. The
l oan l i mi t under t he scheme has been
3.19.8 CONTRIBUTION OF SSI IN THE
GROSS DOMESTIC PRODUCT (GDP)
(Table 3.8).
3.19.9 EMPLOYMENT FROM SSI
SECTOR
The t ot al empl oyment f rom SSI sect or
(including SSSBEs) in the country as per
t he Thi r d Al l I ndi a Census of SSI s
Year Growth Rate Overall
of SSI industrial
sector (%) sector (%)
2002-03 8.68 5.70
2003-04 9.64 6.90
2004-05 10.88 8.40
2005-06 12.32 8.10
Co nt ri but i o n o f SSI : Tabl e 3 . 8
Year Contribution of SSI (%) at 1999-
2000 prices in
Total industrial Gross
production Domestic
Product (GDP)
1999-2000 39.74 5.86
2000-2001 39.71 6.04
2001-2002 39.12 5.77
2002-2003 38.89 5.91
2003-2004 38.80 5.82
Gro wt h rat e s o f pro duc t i o n : Tabl e 3 . 7
52
enhanced to Rs. 25 lakh per borrower in
terms of the Comprehensive Policy Package
on SSI announced by the Honble Prime
Minister on 30
th
August, 2000, when the
scheme was formally launched.
3.20.2 The scheme covers collateral-free
credit facility (term loan and/ or working
capital including non fund based working
capi t al ) ext ended by el i gi bl e l endi ng
institutions to new and existing micro and
smal l enterpri ses up to Rs.25 l akh per
borrowing unit. The guarantee cover is up
to 75% of the credit sanctioned subject to
maximum guarantee limit of Rs. 18.75 lakh.
However, the Member Lending Institutions
(MLIs) are al l owed to extend addi ti onal
credit facilities against collateral security
and/ or t hi r d par t y guar ant ee t o t he
bor r ower s al r eady cover ed under t he
scheme in those cases where the credit
facility already covered under the scheme
has reached the ceiling of Rs.25 lakh. The
MLIs availing guarantee from the Trust have
to pay one time Guarantee Fee of 1.5%
(reduced from 2.5% to 1.5% w.e.f. 1 April
2006) and Service Fee of 0.75% per annum
of t he credi t f aci l i t y sanct i oned by t he
lending institution to the borrower.
3.20.3 The Credit Guarantee Scheme was
initially approved for one year with a corpus
of Rs. 125 cr or e cont r i but ed by t he
Government of India and SIDBI in the ratio
of 4:1. Subsequently, Government decided
to continue the scheme beyond one year
and the Fi nance Mi ni ster i n the Budget
2006-07 has announced that the corpus
fund wi l l be rai sed to Rs.2500 crore by
2010-11. The corpus of CGTSI has been
enhanced to Rs.1336.55 crore wi th the
contribution of Rs.1069.25 crore from the
GoI and Rs.267.30 crore from SIDBI.
3.20.4 As on 31
st
December 2006, 59
eligible institutions comprising 28 Public
Sector Banks, 13 Private Sector Banks, 15
Regi onal Rural Banks (RRBs), Nati onal
Small Industries Corporation (NSIC), North
Eastern Development Finance Corporation
(NEDFi) and Small Industries Development
Bank of India (SIDBI) have become Member
Lending Institutions (MLIs) of CGTSI for
participating under the Credit Guarantee
Scheme. Under t he scheme, 61, 312
proposals amounting to Rs.1543.63 crore
have been approved for guarantee cover up
to 31
st
December 2006.
3.21.0 MICRO FINANCE
PROGRAMME
3.21.1 Government has launched a revised
Scheme under t he Mi cr o Fi nance
Pr ogr amme of SI DBI i n 2003- 04.
Government of Indi a provi des funds for
Micro-Finance Programme to SIDBI under
a Portfolio Risk Fund (PRF), which is used
for security deposit requirement of the loan
amount from the MFIs/NGOs. At present,
SIDBI takes fixed deposit equal to 10% of
the loan amount. Under the PRF, the share
of MFIs/NGOs is 2.5% of the loan amount
(i.e. 25% of security deposit) and balance
7. 5% (i . e. 75% of securi t y deposi t ) i s
adjusted from the funds provided by the
53
Government under the scheme.
3.21.2 As on 31
st
December 2006,
Government has released an amount of
Rs.9 crore towards Portfolio Risk Fund
(PRF). Of this, Rs.7.64 has been utilized by
SIDBI upto December 2006. The funds
under PRF are utilized for extending loans
in the hitherto underserved States (viz.,
North Eastern States i ncl udi ng Si kki m,
Bi har, Jharkhand, West Bengal , Ori ssa,
Madhya Pr adesh, Chat t i sgar h, Ut t ar
Pradesh, Jammu & Kashmir, Rajasthan and
Uttaranchal) and less-served States. As on
31
st
December 2006, cumul at i ve l oan
amount of Rs. 101. 87 cr or e has been
provided to MFIs/NGOs under the scheme,
thereby benefiting 3.21 lakh persons.
3.22.0 CREDIT LINKED CAPITAL
SUBSIDY SCHME (CLCSS)
3.22.1 The Mi ni st r y of Smal l Scal e
Industries (SSI) is operating a scheme for
technol ogy upgradati on of Smal l Scal e
Industries (SSI) called the Credit Linked
Capi tal Subsi dy Scheme (CLCSS). The
Scheme ai ms at faci l i tati ng technol ogy
upgradation by providing upfront capital
subsidy to SSI units, including tiny, khadi,
vi l l age and coi r i ndust r i al uni t s, on
institutional finance (credit) availed of by
them for modernisation of their production
equi pment ( pl ant and machi ner y) and
t echni ques. The Scheme (pre-revi sed)
provided for 12 per cent capital subsidy to
SSI uni t s, i ncl udi ng t i ny uni t s, on
institutional finance availed of by them for
induction of well established and improved
technology in selected sub-sectors/products
approved under the Scheme. The eligible
amount of subsidy calculated under the pre-
revised scheme was based on the actual
loan amount not exceeding Rs. 40 lakh.
3.22.2 The Fi nance Mi ni st er made an
announcement i n the Budget Speech of
2004-05 to raise the ceiling for loans under
the Scheme from Rs. 40 lakh to Rs. 1 crore
and rate of subsidy from 12 per cent to 15
per cent . Fur t her , i n t he l i ght of t he
experience gathered in implementing the
Scheme, certai n other modi fi cati ons as
under were also made in it to make it more
useful to the SSI units, including tiny, khadi,
village and coir industrial units, in taking up
technology upgradation on a larger scale:
(a) t he cei l i ng on l oans under t he
Scheme was raised from Rs. 40
lakh to Rs. 1 crore;
(b) the rate of subsidy was enhanced
from 12 per cent to 15 per cent;
(c) the admissible capital subsidy is to
be calculated with reference to the
pur chase pr i ce of pl ant and
machinery, instead of the term loan
disbursed to the beneficiary unit;
(d) the practice of categorisation of SSI
units in different slabs on the basis
of t hei r pr esent i nvest ment f or
determining the eligible subsidy has
been done away with ; and
(e) the operation of the Scheme has
been extended upto 31
st
March,
2007.
54
The above amendments are effective from
September 29, 2005.
3.22.3 Year-wise details of approvals given
under the CLCSS are as under (Table 3.9)
3.23.0 PROPOSED SCHEME TO BE
LAUNCHED FOR CAPACITY
BUILDING, STRENGTHENING
OF DATABASE AND
ADVOCACY BY INDUSTRY/
ENTERPRISE ASSOCIATIONS,
IN CONSULTATION WITH AND
WITH FINANCIAL
PARTICIPATION BY THE
LATTER.
3.23.1 I t has been f el t t hat t he
Associ at i ons of Mi cr o and Smal l
Enterprises do not have adequate capacity
to col l ect and i nterpret data rel ati ng to
changes in the market scenario, owing to
the l i mi ted avai l abi l i ty of funds and the
absence of expertise in the matter. As a
result, their articulation of views on specific
issues concerning to their product groups
leaves much to be desired. In spite of the
fact that the Associations of the MSEs have
been made members of the SSI board and
the members of the steering Committees
of cer t ai n nat i onal pr ogr ammes f or
devel opment of some pr oduct s, t hei r
exi st i ng weakness pr event t hem f r om
playing the expected role effectively. Even
in their role as facilitators for their members
i n gover nment assi st ed schemes l i ke
setting up of sub contracting exchanges,
testing laboratories, etc., the capacity of
these Associations has been found to be
deficient.
3.23.2 To st r engt hen t hei r r ol e and
i ncr ease t hei r ef f i ci ency, f i nanci al
assi st ance has been proposed f or t he
3.22.4 Consequent upon the increase of
ceiling of loan from Rs. 40 lakh to Rs. 1.0
crore and increase in rate of subsidy from
12 per cent to 15 per cent from September
29, 2005, the progress under the CLCSS
has been encour agi ng. Whi l e t he
cumulative amount of subsidy disbursed
between 2001- 02 and 2006-07 (up to Nov.,
06) by the nodal agencies was Rs.74.33
cr or e ( appr ox. ) , most of i t has been
sanctioned during the period from October,
2005 to November, 2006. During 2006-07
up to November 2006, 1189 units availed
capital subsidy of Rs.37.95 crore. This
shows that the amendments made in the
t hen exi st i ng CLCSS gui del i nes have
i ncreasi ngl y encouraged ti ny and smal l
scal e i ndust r i al uni t s t o under t ake
modernisation through availing of capital
subsidy under the CLCSS.
Year No. of units Amount of
assisted sanctioned
(Rs. lakh)
2001-02 9 21.36
2002-03 47 93.97
2003-04 150 368.79
2004-05 526 1351.89
2005-06 699 1801.17
2006-07 (upto 1189 3795.47
Nov.06)
Total 2620 7432.65
CLCSS de t ai l s o f appro val s : Tabl e 3 . 9
55
secr et ar i al and advi sor y/ ext ensi on
ser vi ces of sel ect ed Associ at i ons
depending on the size and the reach of
t he Associ at i ons. The benef i ci ar y
associ ati ons are to provi de the regul ar
manpower at thei r own cost and offi ce
space and also bear 50 per cent of the
cost of modernization of their facilities and
equi pment and t r ai ni ng of t he t hei r
personnel.
Page No.
56
NATIONAL SMALL
INDUSTRIES
CORPORATION LTD.
VD
59
4.1.0 Nat i onal Smal l I ndust r i es
Corporation Ltd. (NSIC) has completed 51
years of service to the small enterprises.
During this period, the Corporation provided
a wide range of services to the SSI sector,
i n t he f i el ds of mar ket i ng, equi pment
financing, technology upgradation, exports,
training and common facilities. Over these
five decades of, growth, development and
transition, NSIC has proved its strength
within the country and abroad by promoting
moderni sat i on, qual i t y consci ousness,
strengthening of linkages of the small with
large, medium enterprises and enhancing
exports of the SSI sector.
4.1.1 NSIC carries forward its mission to
assi st smal l ent er pr i ses wi t h a set of
schemes desi gned t o put t hem i n a
competitive and advantageous position. The
schemes now compr i se f aci l i t at i ng
mar ket i ng suppor t , cr edi t suppor t ,
t echnol ogy suppor t and ot her suppor t
services.
4.2.0 ORGANISATIONAL SET UP
The Corporation is manned by a team of
professionals at different levels and delivers
its assistance through:
7 Zonal Offices located at Mumbai,
Chennai , Kol kat a, Hyder abad,
NATIONAL SMALL INDUSTRIES
CORPORATION LTD.
Chapter 4
Del hi , Noi da and Cent r al Zone
coveri ng t he St at es of Guj arat ,
Madhya Pradesh & Chattisgarh.
26 Branch Of f i ces and 15 Sub-
offices over states.
5 Techni cal Ser vi ces Cent r es
l ocat ed at Chennai , Howr ah,
Hyderabad, Okhla and Rajkot.
3 Techni cal Servi ces Ext ensi on
Centres located at Aligarh, Rajpura
and Guwahati.
2 Software Technology Parks one
at Okhla, New Delhi and other at
Chennai.
2 Offices outside India at Dubai
(UAE) and Johannesburg (South
Africa).
4.3.0 SCHEMES OF THE
CORPORATION
60
4.3.1 MARKETING ASSISTANCE
Marketi ng, a strategi c tool for busi ness
development is critical to the growth and
survi val of smal l enterpri ses i n today s
intensely competitive market. NSIC acts as
a facilitator to promote the products of small
enterprises and has devised a number of
schemes to support small enterprises in
their marketing efforts, both in and outside
the country. These schemes are briefly
described as under:-
Raw Material Distribution: NSIC
has made arrangements with bulk
manuf act urers l i ke M/ s. St eel
Authority of India Ltd. (SAIL), M/s.
Rashtriya Ispat Nigam Ltd. (RNIL), M/
s. National Aluminium Company Ltd.
(NALCO) and St erl i t e group f or
procuring raw materials like Steel,
Aluminium, Zinc and Copper etc. to
provi de raw mat eri al al ongwi t h
f i nanci al assi st ance as per t he
requirements of small enterprises.
Through such arrangements benefit
of economies of scale are also availed
by the small enterprises. NSIC has
also opened godowns at Tarapur,
New Delhi, Faridabad and Silvassa
to facilitate the small enterprises to
make available the required material
at ease, to bring down their inventory
cost and also arranging to provide raw
material closer to their works.
Consor t i a and Tender
Marketing: Smal l Enterpri ses i n
t hei r i ndi vi dual capaci t y f ace
probl ems t o procure & execut e
l ar ge or der s, whi ch i nhi bi t and
r est r i ct t hei r gr owt h. NSI C
accor di ngl y adopt s Consor t i a
approach and forms consorti a of
uni t s manuf act ur i ng t he same
pr oduct s, t her eby easi ng out
mar ket i ng pr obl ems of smal l
ent er pr i ses. The Cor por at i on
explores the market and secures
orders for bulk quantities. These
orders are then distributed to small
ent er pr i ses i n t une wi t h t hei r
pr oduct i on capaci t y. Test i ng
f aci l i t i es ar e al so pr ovi ded t o
enabl e smal l ent er pr i ses t o
improve and maintain the quality
of their products conforming to the
standard specifications.
Si ngl e Poi nt Regi st rat i on f or
Government Purchase: NSI C
operates a Single Point Registration
Scheme under t he Government
Purchase Programme, wherein the
regi stered smal l enterpri ses get
purchase preference in Government
Purchase Programme, exemption
from payment of Earnest Money
Deposit etc. The small enterprises
registered under this scheme get
the following facilities :
Issue of tender sets free of
cost.
Advance intimation of tenders
issued by DGS&D.
61
Exempti on from payment of
earnest money.
Waiver of security deposit up
to the monetary limit for which
the enterprise is registered.
I ssue of compet ency
certificate in case the value of
an or der exceeds t he
monet ar y l i mi t , af t er due
verification.
Exhi bi t i ons and Technol ogy
Fai rs: To showcase t he
compet enci es of I ndi an smal l
enterprises and to capture market
opportunities, NSIC participates in
sel ect i nternati onal and nati onal
exhi bi ti ons and trade fai rs every
year . NSI C f aci l i t at es t he
participation of the small enterprises
by providing concessions in rental
etc. Participation in these events
exposes smal l ent er pr i ses t o
i nt er nat i onal pr act i ces and
enhances their business prowess.
Buyer - Seller Meets: Bul k and
depar t ment al buyer s such as
Railways, Defence, Communication
departments and large companies
are invited to participate in buyer-
sel l er meet s t o enr i ch smal l
enterpri ses knowl edge regardi ng
Dr. Chandrapal, Union Secretary, Ministry of SSI & ARI being escorted by Shri Ravindra Nath, Chief
General Manager (Fin.) & Zonal General Manager, South-II, NSIC, on his visit to National Industrial
Exhibition-cum-Vendor Development Programme organised by NSIC at Hyderabad
62
t er ms and condi t i ons, qual i t y
st andar ds, et c r equi r ed by t he
buyer. These programmes are
aimed at vendor development from
smal l ent er pr i ses f or t he bul k
manufacturers.
Export of Products and Projects:
NSIC is a recognized Export
House and exporting products
and pr oj ect s of smal l
enterprises of India to other
countries. The major areas of
operation are:
Export of products such as
handi cr af t s, l eat her i t ems,
hand tool s, pi pes / fi tti ngs,
builders hardware etc.
Suppl y of Smal l I ndust r y
projects on turnkey basis.
Export of IT sol uti ons from
India.
Seminars & Intensive Campaigns
During the year 2006-07, upto 31
st
December, 2006, Corporation organized /
participated in 376 Seminars / Intensive
Campai gns / Ent r epr eneur shi p
Development Programmes.
4.3.2 TECHNOLOGY SUPPORT
NSIC offers small enterprises the
f ol l owi ng t echnol ogy suppor t ser vi ces
through its Technical Services Centres and
Extension Centres:
Advi si ng on appl i cat i on of new
techniques
Material testing facilities through
accredited laboratories
Product design including CAD
Common f aci l i t y suppor t i n
machining, EDM, CNC, etc.
Energy and environment services at
selected Centres
Pr act i cal t r ai ni ng f or ski l l
upgradation
Focus areas of NSI C Techni cal
Services Centres are as under:
Name of the Focus area
Centre
Chennai Leather & Footwear
Howrah General Engineering
Hyderabad Electronics &
Computer Application
New Delhi Machine Tools &
related activities
Rajkot Energy Audit &
Energy Conservation
activities
Rajpura (Punjab) Domestic Electrical
Appliances
Aligarh (UP) Lock Cluster & Die
and Tool making
Technology Transfer Centre
NSI C, t hr ough i t s Technol ogy
Transfer Centre, sources and disseminates
i nf or mat i on on t echnol ogy f or smal l
63
enterprises at national and international
l evel . Mai n obj ect i ve i s t o enhance
enterprise-to-enterprise cooperation among
the small enterprises of India and those of
targeted countries. This is achieved through
or gani zi ng busi ness and t echnol ogy
missions of small enterprises to various
countries, partner matching through one on
one-business meetings. The Centre has
est abl i shed i nst i t ut i onal l i nkages wi t h
national and international R&D institutions,
Industry Associations of the country and
abr oad f or t he pur pose of t echnol ogy
sourci ng / di ssemi nati on to SMEs. The
organisation has signed Memorandum of
Understanding with partner institutions in
different countries for facilitating technology
partner matchmaking.
4.3.3 FINANCING SCHEMES
NSIC facilitates financing for small
enterprises in the following manner:
Meeting credit needs of Small
Ent erpri ses t hrough t i e- up
arrangements with Banks
NSI C has ent er ed i nt o t i e- up
ar r angement s wi t h seven banks ( i . e.
United Bank of India, UCO Bank, Oriental
Bank of Commerce, Central Bank of India,
Bank of Maharashtra, YES Bank and UTI
Bank) for sanction of term loan and working
capital facilities to the small enterprise as
per their requirement. Such arrangements
f aci l i t at e smoot h cr edi t f l ow t o smal l
enterprises.
Fi nanci ng for procurement of
Raw Material (Short term)
This has already been explained
above under Raw Mat er i al
Distribution.
Fi nanci ng f or Market i ng
Activities (Short term)
NSI C f aci l i t at es f i nanci ng f or
marketing actives such as Internal
Mar ket i ng, Expor t s and Bi l l
Discounting to small enterprises.
Perf ormance & Credi t Rat i ng
Scheme for Small Enterprises
NSI C i s t he i mpl ement i ng agency and
operating this scheme through accredited
rating agencies i.e. CARE, CRISIL, D&B,
FITCH, ICRA, ONICRA and SMERA. The
fee to be paid by the small enterprises for
the rating, is subsidized by the Government
to the extent of 75% upto a maximum of Rs.
40,000/-. The scheme has become quite
popular now and getting good response
f rom t he smal l ent erpri ses. The rat i ng
serves as a trusted third party opinion on
the units capabilities and credit worthiness.
4.3.4 SUPPORT SERVICES
Infomediary Services
Recognizing the importance of information
and its relevance to small enterprises, NSIC
provi des Infomedi ary Servi ces to smal l
units. Under this scheme, small enterprises
can become members and avail a number
64
of value added services. Some important
services are:
Supplier database
Market intelligence
Technology providers
Information providers
Li nkages wi t h r el evant
institutions
E to E services
E to B services
Value additions like directories
on who makes machines, who
makes component s, spar e
capaci t y bul l et i n boar ds,
di scussi on f or ums, vi r t ual
exhibitions, etc.
International Cooperation
Var i ous ski l l set s i n t he
development process of small enterprises
acquired by NSIC over last 5 decades, are
bei ng net wor ked t o of f er consul t ancy
services for other developing countries. The
areas of consultancy are as listed below:
Capacity Building
Policy & Institutional Framework
Business Development Services
Other important initiatives are through setting
up of institutional frameworks for promotion
of small enterprises; conducting techno-
economic assessment surveys; setting up
i ndustri al estates, provi si on of common
faci l i ty servi ces; support and extensi on
services; supply of machinery, equipment
and t ransf er of t echnol ogy; anci l l ary
devel opment and subcont ract i ng
relationships and technical & entrepreneurial
training. NSICs initiatives are:
Exchange of business/ technology
missions with various countries for
facilitating enterprise-to-enterprise
cooperagy t ransf ers, and ot her
forms of sustainable collaboration.
Exploring new markets and areas of
cooperation through:
Identi fi cati on of new export
market s by part i ci pat i ng i n
sector-specific exhibitions all
over the world.
Identification of countries in
whi ch Indi a has potenti al to
export its technology, products
and projects, such as the Sub-
Saharan count ri es, Cent ral
Asia the Indo-China region etc.
Assistance to these countries
in formulating their policy and
institutional framework.
Software Technology Parks
NSIC-Software Technology Parks (STPs)
faci l i tate smal l enterpri ses i n setti ng up
100% export-ori ented uni ts for software
exports. They also act as nodal point to
activate software exports directly through
NSIC. These STPs extend support in terms
65
of the requisite infrastructure to the small
enterprises to start business operations with
a mi ni mum l ead t i me. The scheme i s
governed by STPI regulations of the Ministry
of Information Technology, Government of
India. NSIC established the first STP at
Okhla, New Delhi in 1995 and second in
Chennai in 2001. Several small enterprises
have taken advantage of these parks and
cont r i but ed expor t ear ni ngs t o t he
exchequer.
4.4.0 NEW INITIATIVES
4.4.1 Insurance of Export Credit for
smal l ent erpri ses under st rat egi c
alliance between NSIC and ECGC:
NSI C has ent er ed, r ecent l y, i nt o an
arrangement with Export Credit Guarantee
Cor por at i on of I ndi a Lt d. ( ECGC) f or
facilitating small enterprises to insure their
export credits. Small enterprises would be
hel ped i n i nsuri ng t hei r export credi t s
t hrough any of f i ce of t he Corporat i on,
l ocat ed al l over t he count r y. Thi s
arrangement shall strengthen promotion of
exports from small enterprises.
4.4.2 Reachi ng out t o Smal l
Enterprises
For the purpose of reaching out to the small
enterprises, NSIC, during the year 2006-07,
si gned MoUs wi t h var i ous i ndust r y
associations located all over the country.
The details / information about the schemes
of the Corporation is being disseminated
t hr ough t he of f i ces of t he i ndust r y
associations. This arrangement with the
i ndust ry associ at i on / f ederat i on shal l
facilitate small enterprises in getting the
ser vi ces of t he Cor por at i on at t hei r
doorstep.
4.4.3 Est abl i shment of Busi ness -
Incubator
NSIC has set up a Technology Business
Incubator for the IT sector in the premises
of NSIC-Technical Service Centre at Okhla,
New Delhi. Infrastructure facilities like ready
to move in space, hardware, software etc.
have been provided in the IT incubator.
These f aci l i t i es are avai l abl e t o t he I T
Incubator occupants, whi ch i ncl ude fi rst
gener at i on ent r epr eneur s, st ar t - up
ent r epr eneur s havi ng vi abl e busi ness
project, individuals aspiring to venture into
new proj ect s. Once t he I T i ncubat es
projects are ready for commercialization,
the marketi ng servi ces, l egal servi ces,
advisory services are also provided to them.
4.4.4 New infrastructure projects to
f aci l i t at e SMEs i n market i ng t hei r
products
NSI C i s est abl i shi ng a Mar ket i ng
Development-cum-Business Park at Okhla,
New Delhi, New Delhi and also developing
an Exhibition-cum-Marketing Development
Busi ness Park at Hyderabad. A Laghu
Udyog Mart is also being set up at Okhla,
New Delhi by utilizing the available space
and erecting sufficient number of hangers
66
for exhibition purposes. After completion of
these proj ects, adequate i nfrastructure
facilities shall be provided to the micro,
small & medium enterprises at economical
rates. This will help them in enhancing their
marketing avenues by way of capturing new
markets and expanding existing market.
4.5.0 MAJOR EVENTS IN 2006-07
4.5.1 INTERNATIONAL EXHIBITIONS:
Techmart I ndi a 2006 ( 14- 27
November, 2006)
NSIC organised the 14
th
series of Techmart India,
2006 coinciding with India International Trade Fair
at Pragati Maidan, New Delhi. The event was
sponsored by Ministry of SSI, Government of
India. Shri Mahabir Prasad, Honble Union
Minister for Small Scale Industries and Agro &
Rural Industries, Govt. of India inaugurated
Techmart India 2006 on Nov. 15, 2006. 186 small
enterprises including 57 small enterprises from
North Eastern states of India and 27 units from
the state of Jammu & Kashmir & Hilly area
participated in Techmart India, 2006. This year,
as new initiate was taken by NSIC for providing
special enclosure of Working Techmart where
standalone Technologies for entrepreneurs were
on display besides live cluster demonstration of
units from North Eastern States. 29 foreign
Shri Mahabir Prasad, Honble Union Minister of SSI & A&RI inaugurating the Techmart India 2006 at
Pragati Maidan, New Delhi. Shri Anupam Dasgupta, the then Secretary (SSI & A&RI) and Shri H.P.
Kumar, Chairman-cum-Managing Director, NSIC were also present on the occasion
67
delegations from Mauritius, Belarus,
Mozambique, Tanzania, Peru, Iraq, Yemen,
Botswana, Japan, South Africa besides 45
delegates from Common Wealth countries also
visited Techmart. NSIC was awarded Gold Medal
for Special Display in the theme category in
Techmart India, 2006 by India Trade Promotion
Organisation, the organiser of IITF-2006.
Rwanda I nt ernat i onal Trade
Fair,2006, Kigali
NSIC participated for the first time
in this exhibition from 25th August,
2006 to 4th Sept., 2006. Twel ve
machines were on display in this
exhibition.
I nt ernat i onal Machi nery
Exhi bi t i on and Trade Fai r,
Colombo
NSIC participated in International
Machinery Exhibition & Trade Fair at
Colombo from 8th 10th Sept.,2006
f or di spl ayi ng SSI product s /
machines such as Jewellery making
machine / plastic extruder machine /
silver extraction machine etc.
SME & Technol ogy Fai r 2006,
Port Louis
The exhibition was organized by Small
Enterprises and Handicrafts
Development Authority, Govt. of
Mauritius. NSIC displayed products and
catalogues of small enterprises i.e.
agriculture implements and
machineries, material handling
equipments, fruits & bakery, crate
washers, milk dairy products and Agro
& Industrial Chemicals and other
appropriate technologies were
displayed through flow charts.
SAI TEX 2006, Johannesburg,
South Africa
NSIC participated in SAITEX 2006 (10th 13th
Oct.,2006) at Johannesburg (South Africa)
displaying small scale technologies from India
through flow charts like harvester combines
engineering goods, Home furnishings and
herbal products, confectionary machinery and
SSI projects.
Expovall, Michoachan, Mexico
NSIC participated in Expovall, Michoachan
(14th 19th Nov., 2006) at Mexico. The
participants displayed ladies readymade
garments, home texti l e, hi gh fashi on
garments.
A Panoramic view of Techmart India 2006 held
at Pragati Maidan, New Delhi
68
The National Small Industries Corporation : Table 4.1
Performance at a Glance
I. MOU TARGETS
S. Parameters Targets for Targets Achievements Remarks
No. 2006-07 upto Dec06 upto Dec06
(70% of the
annual target)
1 Gross Income 31000 21700 26785.37
(Rs. lakh)
2 Gross Margin 1410 987 681.47 The gross margin for the
(Rs. lakh) corresponding period of
the last year was Rs.
231.53 lakh that has been
improved to Rs. 681.47
lakh as on 31.12.2006.
3 Technology Support 1.50 1.05 1.06
Revenue Generated
through Common
Facilities(Rs. Crore)
4 Recovery of:
i) Current Dues (%) 85 85 62.68 Efforts are being made
ii) Overdue for recovery of dues by
Amount (%) 10 7.00 2.58 launching a new One
Time Settlement Scheme.
5 Internal Marketing 50 35.00 Tender Internal Marketing
Activity Submitted: activity is likely
(Rs. Crore) 79.18 to pick up in
Orders subsequent months.
Executed:
11.79
6 Revenue from 5 3.50 4.46
Infrastructure
(Rs. Crore)
7 Technology Support 2700 1890 3313
Services rendered
to units (nos.)
8 Assistance Provided
to Women
Entrepreneurs
(nos.) 100 70 172
9 Performance and applications have been
Credit Rating received for rating under
Units Accredited the scheme. As of
(nos.) 1800 1260 2104 2104 Dec.06 rating has
been assigned to 1231
units.
10 Net addition under 1500 1050 1456
Informediary
Support (Nos.)
TRAINING AND
ENTREPRENEURSHIP
DEVELOPMENT
71
5.0 Entrepreneurship development and
trai ni ng i s one of the key el ements for
development of micro, small and medium
enterprises (MSMEs), particularly, the first
generati on entrepreneurs. The Nati onal
Institute of Small Industry Extension Training
(NISIET), Hyderabad The Indian Institute of
Entrepreneurship (IIE), Guwahati, and the
National Institute of Entrepreneurship and
Small Business Development (NIESBUD),
NOIDA have been set up as national level
institutions for promotion of MSMEs through
training and entrepreneurship development.
To promote and assist entrepreneurship
development in the country, the Ministry has
also been implementing (in addition to the
schemes of SIDO) two important schemes,
namel y, promoti on of entrepreneurshi p
development institutions (EDI) and scheme
of National Entrepreneurship Development
Board (NEDB).The main objectives of these
programmes are (i ) promot i ng
entrepreneurship for creating elf-employment
through enterprise creation; (ii) facilitating
creation of training infrastructure; and (iii)
supporting research of entrepreneurship
related issues.
5.1 ENTREPRENEURSHIP
DEVELOPMENT
INSTITUTIONS (EDI) SCHEME
5.1.1 Under the EDI scheme, grant i s
TRAINING AND ENTREPRENEURSHIP
DEVELOPMENT
Chapter 5
given for setting up of new entrepreneurship
development institutions (EDIs) and also for
up-gradation and modernisation of existing
EDIs in the country. Under the scheme, a
matching grant of 50 per cent, subject to a
cei l i ng of Rs. 100 l akh i s pr ovi ded f or
building, equipment, training aids etc. the
balance is contributed by the State/Union
Territory Governments and other agencies.
Financial assistance provided under this
scheme is only catalytic and supportive to
the contribution and efforts of State/Union
Territory Governments and other agencies.
Against budgetary allocation of Rs.250 lakh
for 2006-07, Rs.85 lakh have been released
up to 31.12.2006 under this scheme.
5.2 NATIONAL
ENTREPRENEURSHIP
DEVELOPMENT BOARD
(NEDB) SCHEME
5.2.1 This is an ongoing scheme from the
Ninth Plan, which was continued in the 10
th
Plan. The main objective of the scheme is to
promote entrepreneurial climate and inculcate
entrepreneurship as a career. During 2006-
07, a budget provision of Rs.200.00 lakh has
been made against which Rs.26.03 lakh has
already been released up-to 31.12.2006. A
recent review of the scheme has revealed that
cont i nuat i on of t he NEDB had become
unnecessary and that the efficacy of the
72
individual scheme components has not been
optimal. Government has, therefore, decided
to abolish the NEDB and recast the scheme
cont ent s/ component s, wi t h a vi ew t o
sharpening their focus and improving their
impact. Therefore, for the Eleventh Plan no
allocation has been proposed for this scheme,
rather it is being replaced by a new scheme
to be now known as the Scheme of Micro
and Small Enterprises Initiation, Support,
Promotion, Integration, Revitalization and
Empowerment (MSE - INSPIRE).
5.3 NATIONAL INSTITUTE OF
SMALL INDUSTRY
EXTENSION TRAINING
(NISIET), HEYDERABAD.
5.3.1 NISIET, formerly known as Central
I ndust r i al Ext ensi on Tr ai ni ng I nst i t ut e
(CIETI), was set up in 1960 at New Delhi
as a Department of Central Government
under t he Mi ni st r y of Commer ce and
Industry. Its main objective was to provide
trai ni ng to the personnel of the Central
Small Industries Organisation as well as the
Departments of Industri es of the State
Governments. Subsequently, in 1962, it
was shifted to Hyderabad and converted
into an autonomous society. In 1984, the
Institute was renamed as National Institute
of Smal l I ndust r y Ext ensi on Tr ai ni ng
(NISIET). NISIETs role has benefited not
only the Indian micro, small and medium
enterprises (MSMEs) but also those in other
Shri Mahabir Prasad, Honble Union Minister of SSI & ARI during his visit to NISIET
73
devel opi ng count r i es and hel ped i n
promoting self-employment and enterprise
development. The Institute is constantly
evolving with time, modifying its focus with
t he emer gi ng needs of MSMEs and
provi di ng them sol uti ons i n the form of
consul t ancy, t r ai ni ng, r esear ch, and
educat i on. NI SI ET s programmes are
designed to have universal relevance for
successfully training the entrepreneurs to
face challenges and competition in the era
of globalisation.
5.3.2 The academic activities of the Institute
are organized through centres of excellence
focusing on specific needs of the MSMEs. The
Academic Council of the institute is the nucleus
coordinating body for benchmarking, formulation
and evaluation of academic activities and
programmes.
5.3.3 Performance of the Institute for 2005-06
(actual) and for the period April December 2006
(actual) and the projection for the remaining three
months of 2006-07 is presented below (Table 5.1).
Pe rfo rmanc e o f NISIET at a gl anc e : Tabl e 5 . 1
74
5.3.4 The new trai ni ng bui l di ng of the
Insti tute has put to use duri ng the year
under report, which is having 14 lecture
hal l s, one conf er ence hal l , and one
multipurpose hall besides accommodation
for the faculty and other support service.
Dur i ng t he year , t he f ol l owi ng t hr ee
important publications have been brought
out by the Institute:
(i) Handbook on Cluster Development.
(ii) Counselling, Re-training and Re-
depl oyment a col l ect i on of
seminar papers.
(iii) Cluster Development Manual.
5.3.5 Highlights of the main activities of
the institute are as under:
A new centre, National Resource
Centre for Cl uster Devel opment
has been functioning in the Institute
si nce January 2004 as a nodal
agency for cluster development in
the country. Besides conducting
or i ent at i on pr ogr ammes and
experience sharing workshops for
the benefit of cluster development
executives (CDEs), the Institute has
been providing mentoring services
for 20 clusters under the scheme of
Smal l I ndust r i es Cl ust er
Inauguration of New Training Building of NISIET by Shri Mahabir Prasad, Honble Union Minister of SSI & ARI
75
Development Programme of SIDO.
Fur t her mor e, t he I nst i t ut e has
conducted diagnostic studies and
prepared busi ness pl ans f or 10
cl ust er s sponsor ed by t he
Devel opment Commi ssi oner
(Handicrafts), Ministry of Textiles.
Out of t hese 10 cl ust er s, t he
I nst i t ut e has been engaged as
i mpl ement i ng agency f or t hr ee
clusters and as a technical agency
f or t he r emai ni ng cl ust er s. I n
addi t i on, t he I nst i t ut e i s al so
f unct i oni ng as an i mpl ement i ng
agency f or t wo mor e cl ust er s
sponsored by t he Devel opment
Commi ssi oner ( Handl ooms) f or
i mpl ement at i on of I nt egr at ed
Handl oom Cl ust er Devel opment
Scheme to promote socio-economic
condi t i ons of weaver s and
handloom sector as a whole.
The Insti tute has entered i nto a
Memorandum of understanding with
Khadi Vi l l age I ndust r i es
Commission (KVIC) for successful
implementation of the Scheme of
Fund for Regeneration of Traditional
I ndust r i es ( SFURTI ) f or t he
development of khadi, village and
coir industries clusters development
in the country.
The I nst i t ut e ent er ed i nt o an
agreement with the Development
Commi ssi oner ( Handl ooms) ,
Ministry of textiles, for evaluation of
t wo pr oj ect s. The f i r st pr oj ect
consists of five schemes viz., (i)
Deen Dayal Hathkargha Protsahan
Yoj ana (DDHPY), (i i ) Handl oom
Export Scheme (HES), (i i i ) Work
shed- cum- Housi ng Scheme
( WCHS) , ( i v) Weaver s Wel f ar e
Schemes, and ( v) Mar ket i ng
Promotion Programme (MPP); while
the second project consists of two
schemes viz., (i) Health Insurance
Scheme (HIS) and (ii) Integrated
Handloom Training Project (IHTP).
The Institute has been recognised
as a nodal agency of the Ministry of
Heavy I ndust r i es and Publ i c
Enterprises, for the implementation
of Counsel l i ng, Ret r ai ni ng and
Redepl oyment (CRR) Scheme of
rationalised employees of Central
Public Sector Undertakings. The
Institute was allocated a target of
r et r ai ni ng of 3500 r at i onal i sed
empl oyees under t hi s Scheme
duri ng 2006-07. As agai nst thi s
Inauguration of International Training Programme
76
t ar get , 2502 empl oyees wer e
al r eady r et r ai ned by end of
December 2006 and expected to
fulfil the target for the year.
The Institute has been implementing
pr ogr ammes sponsor ed by t he
Ministry of Development of North-
East ern Regi on f or t rai ni ng t he
officials of North-Eastern States in
var i ous ar eas of ent er pr i se
development.
As an effort towards restructuring its
manpower, the Institute has been
appr oved a speci al vol unt ar y
retirement scheme (VRS). Under
the scheme, i t was envi saged to
r et i r e 43 gr oup C and D
empl oyees of t he I nst i t ut e. 18
empl oyees of t he I nst i t ut e have
al r eady avai l ed VRS under t he
scheme and some mor e ar e
expected to opt for the scheme.
The Institute has accepted income
generation target of Rs. 650.87 lakh
during 2006-07 as against which the
actual income realised as on 31
st
December 2006 was Rs. 707. 27
lakh. During the current financial
year, the Institute is expected to
gener at e net sur pl us of Rs.
Rs.20.30 lakh.
5.4 INDIAN INSTITUTE OF
ENTERPRENEURSHIP (IIE)
GUWAHATI.
5.4.1 The Indi an Insti tute of
Entrepreneurship (IIE) was set up at Guwahati
in 1993. It took over NISIETs NER Centre from
1
st
April 1994. The Institute is completing 13
th
year of its operation on 31
st
March 2007. During
this period the Institute has expanded its
activities to a great extent covering all facets
of MSME activities. IIEs Regional Office at
Uttaranchal has become fully operational. Since
its establishment and up to December 2006,
the Institute has organized 1090 training
programmes/workshops/semi nars/meets
where 35342 participants participated. The
Insti tute has obtai ned ISO-9001-2000
certi fi cati on from the Bureau of Indi an
Standards. The Institute has expanded its
canvas not only in terms of geographical
coverage but also diversifying into various
areas of the activities related to socio-economic
development. The Institute organises training
programmes and undertakes research and
consultancy services in the field of promotion
of MSMEs and entrepreneurship.
Shri P.R. Kyndiah, Honble Union Minister of Tribal
Affairs and Development of North Eastern Region,
Chairman, NEC, Presiding the Annual General
Body Meeting of IIE
77
5.4.2 The types and number of training
programmes organi zed and number of
parti ci pants trai ned duri ng 2005-06 and
2006- 07 ( up t o December 2006) and
expected achievement for the year are as
under (Table 5.2)
5.4.3 Highlights of the main achievements
of the Institute are as under:-
Promotion of new entrepreneurs has
been the maj or focus of trai ni ng
organised by the Institute. In order
to promote new entrepreneurs, the
Insti tute organi ses rural , general
and women EDPs, sector specific
EDPs, et c. det ai l s of whi ch are
given below (Table 5.3)
Hi s Excel l ency, Lt. General (Retd.) Shri Aj ai
Singh, Honble Governor of Assam, inaugurating
the first PGDME Course of the Institute. Sitting
on the dai s (R) i s Shri Ri pon Borah, Hon bl e
Minister of Education, Assam
Sl. Type of No. of No. of
Programmes Programmes Partici
pants
1 General EDP 10 300
2 Women EDP 03 71
3 Sector Specific
EDPs 21 1328
4 EDP for PMRY
Beneficiaries 2 215
Total 36 1914
Ty pe s o f Pro gramme and Numbe r o f Part i c i pant s (IIE) : Tabl e 5 . 2
De t ai l s o f EDP by IIE : Tabl e 5 . 3
78
I ndust r y wher e a t ot al of 66
participants participated.
The Insti tute al so organi zed two
programmes, one each on Finishing
and Dying Techniques covering 45
participants.
The Institute organised a series of
Pr ogr ammes f or gr owt h and
devel opment of exi st i ng
ent r epr eneur s dur i ng Apr i l -
December 2006 as per details given
below (Tabel 5.4).
For creat i on of envi ronment f or
ent r epr eneur shi p devel opment ,
duri ng Apri l -December 2006, the
I nst i t ut e has or gani sed 13
pr ogr ammes f or or i ent at i on of
of f i ci al s f r om spor t agenci es
cover i ng 328 par t i ci pant s. The
details of these programmes are as
under (Table 5.5).
For cr eat i on of awar eness and
orientation for college and university
st udent s r egar di ng
ent r epr eneur shi p, dur i ng Apr i l -
Besi des cont i nui ng i t s Rur al
I ndust r i es Pr ogr amme ( RI P) i n
Meghalaya, Manipur and Barpeta in
Assam, the Institute started its RIP
at Nongpoh in Meghalaya with the
hel p of SI DBI . Anot her ar ea
approach t hat t he I nst i t ut e has
undertaken is the STED Project in
Bongai gaon t o pr omot e
entrepreneurship with technological
i nt er vent i on sponsor ed by t he
Depar t ment of Sci ence and
Technology.
At t he i nst ance of Coi r Boar d,
Mi ni st r y of Agr o and Rur al
Industries, the Institute organised
16 sector-specific programmes in
Coi r based i ndust ri es, coveri ng
1217 par t i ci pant s f r om Nor t h
Eastern Region.
At the instance of the Ministry of
Science & Technology, Government
of India, the Institute also organized
three programmes, one on Herbal
Medi ci ne, one on Areca nut l eaf
plates and one Rubber Plantation
IIE Pro gramme s fo r e xi s t i ng e nt re pre ne urs : Tabl e 5 . 4
79
December 2006, the Institute has
organised 15 programmes covering
884 students from various colleges,
uni ver si t i es and pol yt echni c
institutes.
I n t he ar ea of i nf or mat i on
t echnol ogy, t he I nst i t ut e has
organized 3 Training Programmes.
The Institute has also organised 1
Programme on Basi c Comput er
Appl i cat i on Ski l l s wher e 21
par t i ci pant s at t ended. I t al so
organized one AIRTSC sponsored
programme for youths of schedule
cast e communi t y wher e 25
par t i ci pant s par t i ci pat ed. The
Institute also started its six months
Teachers Training Programme on
Computer Applications where 20
teachers are participating.
During April-December 2006, the
I nst i t ut e has or gani sed t hr ee
wor kshops on t r ade r el at ed
entrepreneurship assistance and
development scheme and one each
on handloom Cluster Scheme and
SFURTI . Al t oget her 218
par t i ci pant s at t ended t hese
Workshops/Seminars.
The I nst i t ut e has been
i mpl ement i ng a comprehensi ve
ent r epr eneur shi p devel opment
programme (CEDP) on gem stone
processi ng hosi ery and wool l en
gar ment manuf act ur i ng. The
Insti tute has set up two trai ni ng
centres, one at i ts campus and
one at Ai zwal , f or gem st one
Shri Anupam Dasgupta, then Union Secretary (SSI &
ARI) going round the Gems Cutting and Polishing
Centre of the Institute alongwith (on is left ) Shri Pravir
Kumar, Joint Secretary, Ministry of SSI
IIE Pro gramme s o f o ri e nt at i o n : Tabl e 5 . 5
80
processi ng; and two centres for
hosi er y and wool l en gar ment
manufacturing, one in Sikkim and
anot her i n Ar unachal Pr adesh.
This initiative is the first of its kind
in the North-East for imparting skill
devel opment t r ai ni ng t o
pr ospect i ve ent r epr eneur s and
artisans by offering six-month and
three-month certificate courses, in
gemstone processing and hosiery
processing, respectively. Besides,
i ncubat i on f aci l i t i es, t echni cal
support, market linkages, etc. are
al so pr ovi ded t o pr ospect i ve
ent r epr eneur s. Ti l l December
2006, 30 ent r epr eneur s i n
Gemstone and 56 in Hosiery were
trained.
The Cane & Bamboo Cl ust er at
Dimapur in Nagaland and Handloom
Cluster in Manipur, are the Institutes
mai den ventures i nto the cl uster
initiative in North East. Considering
the availability of local resources and
local craftsmanship, the Institute has
initiated the process of development
of cluster of traditional and rural
art i sans i n t hese sect ors. The
I nst i t ut e organi zed a f i ve-day
Exhibition-cum-Sale Campaign of
Handloom & Handicraft products of
cluster actors as part of its Cluster
Initiative at Guwahati from 23 to 27
October 2006.
The Institute has been appointed as
a Technical Agency by the Ministry
of Agro and Rural Industri es for
overlooking several khadi, village
i ndust r i es and coi r cl ust er s i n
Eastern and North-Eastern Regions
under Scheme f or Fund f or
Regener at i on of Tr adi t i onal
Industries (SFURTI). The Institute
has started a series of sensitization
programmes and pre-di agnost i c
studies for the prospective clusters
in the region.
Busi ness Faci l i t at i on &
Development Centre (BFDC) is a
wi ng of I I E t o pr ovi de suppor t
servi ces to smal l enterpri ses i n
Nor t h- East Regi on i ncl udi ng
Si kki m. The BFDC has been
posi t i oned t o hel p t he f i r st
generation entrepreneurs. During
t he year , 347 ent r epr eneur s
utilized the services of BFDC. 80
A view of Zonal Level Workshop on SFURTI at the
Institute premises
81
Pr oj ect Repor t s have been
pr epar ed and submi t t ed t o
commercial Banks and NEDFI for
f i nance, out of whi ch f i nanci al
assi st ance f or 27 proj ect s have
already been sanctioned. A total of
35 new busi ness uni t s made
operational during the year.
During the year the Institute has
completed the following Research
and Consultancy studies:
(i) Pro poor Dairy Development in
Assam : Improving Traditional
Dai r y Mar ket i ng and
Processi ng - sponsored by
I nt er nat i onal Li vest ock
Research Institute.
(ii) Women Ent repreneurs and
I nst i t ut i onal Fi nance -
sponsor ed by Of f i ce of
Development Commissioner of
Small Scale Industries.
(iii) A St udy on Coi r r el at ed
activities in North East vis--
vis Potentials- sponsored by
Coir Board.
In addition, a study on Industries based on
ancillary and support services of large and
medium industries of North East India is in
progress.
The Institute has launched a Post
Gr aduat e Di pl oma Cour se i n
Management and Entrepreneurship
(PGDME). The first batch of the
course started in July 2006. This
cour se ai ms at pr ovi di ng
compr ehensi ve i nput s on
ent r epr eneur i al as wel l as
manageri al aspects of runni ng a
business.
The I nst i t ut e had or gani sed
delegation of entrepreneurs from
North East to visit China and Hong
Kong i n associ at i on wi t h
Feder at i on of I ndust r i es and
Commerce of North East Regi on
( FI NER) . The del egat i on
compr i sed of 10 ent r epr eneur s
from Assam, Nagal and, Mi zorm,
Si kki m and Meghal aya and
representatives of IIE and FINER.
The obj ect i ve of t he del egat i on
was to explore the possibilities of
busi ness ti e-ups, col l aborati ons,
bi l at er al t r ade, economi c
cooperation, technology transfer,
j oi nt vent ur es, i nvest ment
pr oposal s and mar ket abi l i t y of
indigenous products of North East
to these countries.
5.5 NATIONAL INSTITUTE FOR
ENTREPRENEURSHIP AND
SMALL BUSINESS
DEVELOPMENT (NIESBUD),
NOIDA
5.5.1 The Nat i onal I nst i t ut e f or
Ent r epr eneur shi p & Smal l Busi ness
82
Development (NIESBUD), Noida was set up
in 1983 as an apex institution in the field of
entrepreneurship development to promote,
support and sustain entrepreneurship and
small business through training, education,
research and consultancy services.
5.5.2 The major activities of the Institute
include, evolving model syllabi for training
various target groups, providing effective
training strategies, methodology, manuals and
tools, facilitating and supporting Central/State
Governments and other agencies in executing
programmes of entrepreneurship and small
business development; maximizing benefits
and accel erati ng the process of
entrepreneurship development; conducting
programmes for motivators, trainers and
entrepreneurs.
5.5.3 The I nst i t ut e hel ps ot her
Entrepreneurship Development Institutions
in various ways, such as developing syllabi
i n ent repreneurshi p f or di f f erent t arget
groups, training of faculty and developing
training aids.
5.5.4 During April-December, 2006, the
Institute has organised 62 training activities
with 1510 participants. The category-wise
detai l s of the trai ni ng programmes thus
organized are given below (Table 5.6).
The participants of one of the International Training Programmes during Field Visits
83
5.5.5 One of the focus target areas of the
training activities of the Institute during the
period was organizing of Small Business
Opportunities & Development Programmes
for Women and Weaker Secti ons of the
society. A total of 11 activities with 348
persons were organized towards this end.
5.5.6 The Institute has reached an
understanding with the NSIC Ltd., for
undertaking training activities under Small
Enterprise Establishment Programme (SEEP)
aimed at providing handholding facilities to
existing/potential entrepreneurs. The initial two
activities under the Programme have been
initiated at Dehradun and Haldwani (Uttranchal).
5.5.7 The Institute has been awarded the
work of conducting of EDPs in the States of
Delhi, U.P. and Haryana by the Ministry of Food
Processing Industries.
5.5.8 The Institute organized a series of
training activities (11) under Swarna Jayanti
Shahri Rojgar Yojana of the Ministry of Urban
Employment & Poverty alleviation, Government
of India, during the period.
5.5.9 The Institute has been performing
the functions of a Technical Agency under
the SFURTI Scheme of Fund for Re-
gener at i on of Tr adi t i onal I ndust r i es
Mi ni st r y of Agr o & Rur al I ndust r i es,
Government of India.
5.5.10 The I nst i t ut e or gani sed t he 5
t h
Commonweal th Indi a Smal l Busi ness
Competitiveness Development Programme
at i ts Campus from November 19 24,
2006, which was attended by 50 delegates
from 32 countries.
5.5.11 Further, the Institute conducted four
international training programmes with 61
par t i ci pant s f r om di f f er ent Af r o- Asi an
count r i es. The t hemes of t hese
pr ogr ammes wer e - Human Resour ce
Devel opment Through Entrepreneurshi p
Educat i on; Smal l Busi ness Pl anni ng &
Pr omot i on; Women and Ent er pr i se
Devel opment A Trai ners / Promoters
Programme; and Trai ner s Trai ni ng on
Entrepreneurship & Promotion of Income
Generation Activities.
NIESBUD - De t ai l s o f t he t rai ni ng pro gramme s : Tabl e 5 . 6
84
5.5.12 During April-December 2006, the
Institute organised 5 Seminars, Workshops
& Conferences consisting of 155 delegates.
These event s al so i ncl uded a t wo-day
Nati onal Meet of Trai ners i n Enterpri se
Development, which was attended by 45
delegates and 20 special invitees.
5.5.13 During the year, the Institute has
carri ed out / worki ng on t he f ol l owi ng
research / evaluation studies:-
(i) Evaluation Study of Mahila Dairy
Vikas, Almora, Uttranchal (STEP
Pr oj ect s) under sponsor shi p of
Depar t ment of Women & Chi l d
Devel opment, Mi ni stry of Human
Resour ce Devel opment ,
Government of India.
(ii) Eval uat i on St udy of Aromat i c &
Her bal Far mi ng Ex- ser vi ce
League ( STEP Pr oj ect s)
Department of Women and Child
Devel opment, Mi ni stry of Human
Resour ce Devel opment bei ng
implemented in the State of Jammu
& Kashmir.
(iii) Evaluation Study of the schemes of
National Backward Classes Finance
& Devel opment Cor por at i on
(NBCFDC) in U.P. and Uttranchal.
(iv) Impact Study of ISO 9000
System Application in SSI Sector in
the NCR awarded by the Office of
the DC(SSI).
(iv) Eval uati on Study of Schemes of
National Safai Karamcharis Finance
Devel opment Corporati on i n the
state of Andhra Pradesh.
NATIONAL
COMMISSION FOR
ENTERPRISES IN THE
UNORGANISED SECTOR
87
6.1 NCEUS
The National Commission for Enterprises
in the Unorganised Sector (NCEUS) was
constituted on 20
th
September 2004 and
consi st s of a Chai r man, t wo f ul l t i me
Members, one Member Secretary and two
part ti me Members. An Advi sory Board
consi st i ng of 10 emi nent exper t s and
activists concerned with the unorganised
sector was also constituted to advise the
Commission. The Commission has been
given the mandate to examine the problems
of the Unorganised Sector (also referred to
as Informal Sector) and suggest measures
t o over come t hem. The t er m of t he
Commission, which was initially fixed at one
year, has been extended to three years.
6.2 TERMS OF REFERNCE
The following are the Terms of Reference
assigned to the Commission:
(1) Revi ew of t he st at us of
unorganised/informal sector in India
including the nature of enterprises,
their size, spread and scope and
magnitude of employment.
(2) Identity constraints faced by small
enterprises with regard to freedom
of car r yi ng out t he ent er pr i se,
access to raw materials, finance,
ski l l s, ent r epr eneur shi p
devel opment , i nf r ast r uct ur e,
technology and markets and suggest
measures to provi de i nsti tuti onal
support and l i nkages to faci l i tate
easy access to them.
(3) Suggest t he l egal and pol i cy
environment that should govern the
i nf or mal / unor gani sed sect or f or
growth, empl oyment exports and
promotion.
(4) Exami ne t he r ange of exi st i ng
pr ogr ammes t hat r el at e t o
employment generation in informal/
unorgani sed sect or and suggest
improvement for their redesign.
(5) I dent i f y i nnovat i ve l egal and
financial instruments to promote the
growth of the informal sector.
(6) Revi ew of t he exi st i ng
ar r angement s f or est i mat i ng
employment and unemployment in
the informal sector and examine why
the rate of growth in employment
has stagnated in the 1990.
(7) Suggest el ement s of an
empl oyment strategy focusi ng on
NATIONAL COMMISSION FOR ENTERPRISES
IN THE UNORGANISED SECTOR
Chapter 6
88
the informal sector.
(8) Revi ew I ndi an l abour l aws,
consi stent wi th l abour ri ghts and
with the requirements of expanding
growt h of i ndust ry and servi ces
particularly in the informal sector
and i mpr ovi ng pr oduct i vi t y and
competitiveness.
(9) Review the social security system
available for labour in the informal
sector and make recommendations
for expanding their coverage.
6.3 TASK FORCES CONSTITUTED
BY NCEUS
The Nat i onal Commi ssi on has
constituted Task Forces to deliberate on the
following issues identified for immediate
i nt er vent i on and make appr opr i at e
recommendations:
Soci al Securi ty for Unorgani sed
Sector Workers;
St at i st i cal i ssues i n t he
Unorganised/Informal Sector; and
Skill formation in the Unorganised
Sector.
Task For ces on Access t o
Technology and Infrastructure, Access to
Markets, Raw Materials and Finance and
Legal and Pol i cy i ssues concer ni ng
enterprises in the Unorganised Sector are
being constituted.
6.4 CONCEPT OF GROWTH
POLES
6.4.1 The NCEUS proposed the formation
of Growth Poles in different parts of the
country with a view to (i) integrating within
a geographical location a number of clusters
of unorganised production units engaged in
manuf act uri ng, servi ces and non-f arm
activities and (ii) facilitating the expansion
of production of and employment in these
micro and small enterprises. The Growth
Pol es woul d i ncorporate the concept of
Provision of Urban Amenities in Rural Areas
(PURA) that has been advocated by the
President of India. This proposal also found
mention in the Finance Ministers Budget
Speech, 2005-06.
6.4.2 In this context, the Commission had
t aken- up t he mat t er wi t h t he St at e
Governments / UTs for identification and
selection of pilot projects of Growth poles
i n t he st at es. I n r esponse t he St at e
Government s of Chhat t i sgarh, Keral a,
Rajasthan, Uttaranchal and West Bengal
submi t t ed t hei r pr el i mi nar y pr oposal s
identifying the location for the Growth Poles
i n the States for whi ch Detai l ed Proj ect
Reports (DPRs) are being prepared.
6.5 UNORGANISED SECTOR
WORKERS BILL
The Commi ssi on submi t t ed Report on
Social Security for Unorganised Workers to
the Honble Prime Minister on 16.5.2006. A
89
copy of the Report was also given to Honble
Labour and Empl oyment Mi ni st er and
Honble Minister of Small Scale Industry and
Agro and Rural Industry. The report was
also presented to the Planning Commission.
A Press conference was organised to give
wide publicity to the Report. Chairman and
officials of the NCEUS while visiting the
Kolkata discussed the Report and also met
Trade Uni on Leaders and organi sati ons
working in the Unorganised Sector.
6.6 NATIONAL POLICY ON
URBAN STREET VENDORS
The Commi ssi on submi t t ed a
Report and Recommendations on National
Pol i cy on Urban Street Vendors to the
Hon bl e Mi ni ster for Urban and Poverty
Alleviation on 5.5.2006.
Kumari Selja, Honble Union Minister of State (i/c), Ministry of Housing and Urban Poverty Alleviation,
is being presented the Report and Recommendations on National Policy on Urban Street Vendors by
Dr. Arjun K. Sengupta, Chairman, NCEUS
Page No.
90
INTERNATIONAL
COOPERATION
93
Chapter 7
INTERNATIONAL COOPERATION
7.1 INTERNATIONAL
COOPERATION SCHEME
7.1.1 International Cooperation Scheme
f or moder ni sat i on and t echnol ogy up-
gr adat i on and compet i t i veness
enhancement of small enterprises has been
under implementation since 1996. Under
this Scheme, small entrepreneurs are taken
t o pot ent i al f or ei gn mar ket s, f or f i r m/
association level interactions on, inter alia,
sour ci ng t echnol ogy, expl or i ng expor t
markets of their products and learning best
practices.
7.1.2 The Scheme now
encompasses the following activities:
Participation in exhibitions, fairs and
buyer - sel l er meet s ( wi t h an
international component).
Exchange of business delegations, to
expl ore new areas of technol ogy
upgradation, facilitating joint ventures,
i mprovi ng marketabi l i ty of SSI
products, foreign collaborations, etc.
Hol di ng of semi nars/buyer-sel l er
meets, to promote enterpri se-to-
ent erpri se i nt eract i ons t hrough
selected agencies, both in India &
abroad.
7.1.3 Duri ng 2006-07, parti ci pati on of
SSI s i n i nt er nat i onal exhi bi t i ons and
deputati on of busi ness del egati ons has
been sponsored under the Scheme.
7.2 INDIA GLOBAL SUMMIT ON
SME
The Ministry and Confederation of India
Industry (CII) jointly with NSIC & SIDBI
organised India Global Summit on SMEs
Emerging Challenges & Opportunities, on
22 and 23 November, 2006 at New Delhi.
Honble Minister (HI & PE) inaugurated the
Summi t . Hon bl e Mi ni st er of St at e f or
Industry inaugurated the Summit. The Global
Summit, facilitated networking and sharing
of best international practices in the SME
Sector, to provide a sustainable focus on the
future global development and growth of
SMEs. Enabling policies, role of finance/
i nnovat i ve f i nance & measure f or ri sk
sharing, value addition through Information
and Communi cati on Technol ogy; Gl obal
Outsourcing Opportunities and Global Small
Enterprise are some of the topics that were
deliberated upon during the Summit. 400
foreign delegates from 30 countries from
across the globe attended the Summit.
7.3 Commonweal t h- I ndi a Smal l
Busi ness Compet i t i ve Devel opment
Programme
94
During the year two programmes were held.
7.3.1 The fourth and final programme in
t he f i r st ser i es of pan- Commonweal t h
Institution-Building Programmes on Small
Busi ness Competi ti veness Devel opment
was hel d at Chennai duri ng 23-28 Apri l
2006. The programme was organised by
the Ministries of SSI&ARI, Commonwealth
Secretariat, London, NSIC, EXIM Bank and
M S Swaminathan Research Foundation
( MSSRF) , Chennai . The t heme of t he
pr ogr amme was Pover t y Al l evi at i on
through Sustainable SME Development, in
whi ch 53 del egat es f r om 44
Commonweal t h count ri es part i ci pat ed.
Besides, presentations and discussion on
the theme of the programme, related field
visits were also organised.
7.3.2 The fi rst Commonweal th Indi a
Smal l Busi ness Compet i t i veness
Development Programme in the next series
of Commonweal th Indi a Smal l Busi ness
Competitiveness Development Programmes
i n Indi a was hel d at NEISBUD campus,
Noida from November 19 to November 24,
2006. Mi ni st ry of SSI , Commonweal t h
Secretariat, NSIC and Exim Bank were the
partner institutions for organizing this event.
The theme of the programme was SME
Devel opment , Gr owt h and Pover t y
Al l evi at i on . For t y- ei ght seni or pol i cy
makers and practitioners representing 26
The dignitaries in the course of one of the Technical Sessions during 5th Commonweath-India Small
Business Competitiveness Development Programme
95
member States from the Commonwealth
attended this five day programme. The
participants were exposed to a combination
of best practices and case studies. Field
visits to various industries and institutions
were also organized. Key resource persons
f rom di f f erent Commonweal t h member
States deliberated upon various significant
i ssues r el at ed t o enhancement of
compet i t i veness of SMEs. Vi si t of t he
participating delegates to Techmart-India
2006 was also organized, where they were
exposed to more than 200 technol ogi es
appropriate for small enterprises.
7.4 Ot her si gni f i cant event s
including signing of Memorandum of
Understandings and Joint Committee
Meetings:
(i). A delegation led by Shri Mahabir
Prasad, Mi ni st er of Smal l Scal e
I ndust r i es & Agr o and Rur al
I ndust r i es vi si t ed Rwanda and
Uganda during 29 August 2006 to 2
Sept ember , 2006 t o di scuss
cooper at i on bet ween t hese
countri es and Indi a i n the smal l
scal e sector. Duri ng the vi si t to
Rwanda, a Memor andum of
Under st andi ng ( MoU) on
cooperation in the field of micro,
smal l and medi um ent er pr i ses
(MSMEs) was signed between the
Ministry of Small Scale Industries,
Government of India and Ministry of
Commerce, Industry, Investment
Pr omot i on, Tour i sm and
Cooper at i ves ( MI NI COM) ,
Government of Republic of Rwanda.
The Minister and the accompanying
del egati on al so attended the 9
th
Rwanda Internati onal Trade Fai r
2006 at Kigali, Rwanda.
(ii). For promoting and developing small
and medium sized enterprises, a
Memor andum of Under st andi ng
(MOU) was si gned bet ween t he
Ministry of Small Scale Industries of
India and the National Agency for
Smal l and Medi um- Si zed
Enterprises and Co-operatives of
Romani a on 23. 10. 2006 at New
Delhi.
(iii). The first Joint Committee Meeting
( JCM) , under t he MOU on
Cooperation in the field of Micro,
Smal l and Medi um ent er pr i ses
between the Secretariat of Economy
of the United Mexican States and
t he Mi ni st r y of Smal l Scal e
Industries and the Ministry of Agro
and Rural Industries of the Republic
of India signed on 27.3.2006, was
hel d on 25.9.2006 at New Del hi .
Duri ng t he meet i ng, t he Annual
Acti on Pl an for 2006-2007 under
Ar t i cl e 2. 2( a) of t he MoU was
finalised.
(iv). Dur i ng t he Joi nt Commi ssi on
meeting between India and Tunisia
at Tunis during 5
th
8
th
February,
2007, Cooperation Agreement in the
96
field of Small and Medium Sized
Enterprises between Governments
of India and Tunisia was signed. In
t he agr eed Mi nut es of Joi nt
Commission, areas where India &
Tunisia would cooperate in the small
scale sector have been listed.
(v). A del egati on l ed by H.E., Amah
Marie Tehoua, Minister of Industry
and Promotion of Private Sector,
Republ i c of Cot e D I voi r e met
Minister (SSI&ARI) and officers of
Ministries of SSI&ARI on 14.2.2007
at New Delhi. During this meeting,
MoU between Ministry of Industry
and Promotion of Private Sector,
Republ i c of Cot e D I voi r e and
Ministries of Small Scale Industry
and Agro Rural Industries was also
signed.
(vi). H.E. Mr. Sam Kutesa, Minister of
Foreign Affairs, Republic of Uganda
cal l ed on Hon bl e Mi ni st er of
SSI&ARI) on 1.11.2006 as a follow
up on the recent visit of Minister
(SSI&ARI) to Uganda and requested
f or assi st ance f r om I ndi a on
providing training.
(vii). Mr. Carlos Agostino Do Rasario, High
Commissioner of Mozambique called
on Joint Secretary(SSI) to discuss
areas of cooperation between the two
countries in the small scale and agro
rural industrial sector.
(viii). To under st and and di scuss
development of small and agro rural
i ndustri es i n Indi a, an Ethi opi an
delegation led by Mr. Mekuria Haile,
Head, Trade, Industry and Urban
Development Bureau had a meeting
with officers of Ministries of SSI &
ARI on 22-05-2006.
(ix). Mr . I nder j i t Coomar aswamy,
Director, Economic Affairs Division,
Commonwealth Secretariat, Mr. Sev
Vet t i vet pi l l ai , Chi ef Execut i ve
Of f i cer , Aur eos Capi t al and
Professor Rao, Administrative Staff
College of India (ASCI), Hyderabad
met with officers in Ministry of SSI
on 6.7.2006, to discuss a Proposal
for Capacity Building in SMEs in
Africa and South Asia, prepared by
ASCI under Commonweal t h s
Private Investment Initiative (CPII).
(x). Ministry of External Affairs (MEA)
arranged a meeti ng between Mr.
Ahmad Ben Said Jaffar, Minister of
External Affairs and Cooperation of
Comoros and Mi ni stry of SSI on
26.7.2006 to discuss assistance by
the Ministry of SSI in setting up of a
Vocati onal and Entrepreneurshi p
Training Institute (VETI) and also
small scale industries in Comoros.
(xi). A meet i ng was hel d bet ween
officers of Ministry of SSI with H.E.
Gabr i el Fassi l , Ambassador of
Eritrea on 19.9.2006 in New Delhi
to discuss the possibility of transfer
of appropriate technology for small
projects in Eritrea.
97
(xii). High Commissioner of the Kingdom
of Lesotho, H.E. Shabbir H. Peerbhai
called on Joint Secretary (SSI) on
7.9.2006 to discuss further areas of
cooperation under the existing MoU
between the Governments of India &
Lesot ho f or promot i on and
development of small enterprises.
(xiii). H. E. Prot ai s Mi t t al i , Mi ni st er of
Commerce, Industry, Investment
Promotion, Tourism & Cooperatives
(MINICOM) called on the Minister of
SSI&ARI on 6.10.2006 to discuss
further cooperation between India &
Rwanda in the small scale, agro and
rural industrial sectors. An MOU had
been signed between Ministry of SSI
and MINICOM in August, 2006 during
Minister (SSI&ARI)s visit to Rwanda.
(xiv). A meet i ng was hel d bet ween
officers of Ministry of SSI&ARI with
a study team from the Development
Research Centre (DRC) from the
State Council of Peoples Republic
of China (PRC) on 15.12.2006 in
Udyog Bhavan, New Delhi.
(xv). Officers from the Ministry of SSI had
a meet i ng wi t h t he Egypt i an
delegation comprising Mr. Moustafa,
M/o International Cooperation and
Mr . Abdel Rahman A. Raouf ,
Commercial Counsellor, M/o Trade
and Industry, Govt. of Egypt on
15.12.2006 in Udyog Bhavan, New
Delhi to discuss the possibilities of
cooper at i on i n t he f i el d of
development of SMEs, under the
pr ovi si ons of Joi nt Act i on Pl an
signed with Egypt.
(xvi). Secret ary (SSI &ARI ) vi si t ed t he
Commonwealth Secretariat, London
and Warwick Manufacturing Group
(WMG) i n t he UK duri ng 7-12
September, 2006 to participate in the
Overal l Eval uat i on of t he
Commonweal t h - I ndi a Smal l
Busi ness Compet i t i veness
Devel opment Programme and
discuss future of the Programme with
the Director & representatives of the
Special Advisory Services Division
(SASD), Commonwealth Secretariat
and al so t he col l aborat i ve
opportunities between WMG and the
Ministries of SSI & ARI.
(xvii). Joint Secretary, Ministry of Small
Scale Industries and CMD, NSIC
visited Commonwealth Secretariat,
London (UK) during 27-30 October,
2006 t o part i ci pat e i n a Revi ew
Workshop organi sed by
Commonweal t h Secret ari at i n
connection with Commonwealth
I ndi a Smal l Busi ness
Compet i t i veness Devel opment
Programme.
(xviii). Joint Secretary (ARI) visited Athens
(Greece) duri ng 6-8 November,
2006 to participate in OECD APEC
Gl obal Conf er ence Removi ng
bar r i er s t o SME access t o
International Markets.
Page No.
98
ACTIVITIES IN THE
NORTH EASTERN REGION
101
8.1 NE REGION
The North-Eastern Region, consisting of
Assam, Ar unachal Pr adesh, Mani pur ,
Mizoram, Meghalaya, Nagaland, Tripura
and Sikkim has abundant natural resources.
These resources can be uti l i zed for al l
r ound economi c devel opment and
employment generation in the region.
8.2 ROLE OF MINISTRY
The Ministry of SSI is actively promoting the
development of Small Scale industries in
t he Nor t h East er n r egi on t hr ough t he
programmes and schemes implemented by
i t s or gani sat i on. SI DO has SI SI s at
Gangtok, Guwahati, Imphal, Agartala and
al so branch SI SI s at Ai zwal , Di mapur,
ACTIVITIES IN THE NORTH EASTERN
REGION
Chapter 8
Itanagar, Diphu, Silchar, Tezpur, Shillong
and Tur a. Ther e i s a Tool Room and
Training Centre at Guwahati.
8.3 PROFILE OF THE SSI
SECTOR IN NORTH EASTERN
REGION
A statement showing estimated number of
SSI units, fixed investment, production and
empl oyment i n Northeast regi on of the
country for the year 2005-06 is given below
(Table 8.1).
8.4 SIGNIFICANT ACTIVITIES
8.4.1 As per the instructions of Govt. of
Indi a, 10% of the total budget i s to be
ear mar ked f or devel opment of Nor t h
Es t imat ed number of SSI unit s , fixed inves t ment , product ion and
employment in NE region : Table 8 . 1
102
Eastern Region. Rs.38.62 crore has been
earmarked exclusively for North Eastern
Region and Rs. 25.31 crore has already
been incurred on various developmental
activities in North Eastern Region.
8.4.2 A proposal received from Govt. of
Nagaland for setting up a Mini Tool Room
has been approved and procurement of
machinery & equipment is in progress.
8.4.3 Under I I D scheme, a speci al
incentive is envisaged for the North Eastern
Region (including Sikkim) with a provision
of central grant up to 80% of the project cost
(subject to a maximum of Rs. 4 crore ) to
provide a fillip to the growth of Small Scale
Industries.
8.4.4 Up to December, 2006, 13 Centres
i n vari ous states i .e. Assam, Mi zoram,
Tripura and Nagaland, have been approved.
Out of the 13 centres, 2 centres have been
compl eted and remai ni ng others are at
various stages of implementation. Rs. 30.36
crore has been released (in full or in part)
to IID centres located in North East Region
up to 31.12.2006.
8.4.5 Resi dent i al accommodat i on at
Guwahati , Ai zawl , Tura & Tezpur have
been const ruct ed and const ruct i on f or
mor e quar t er s i s under pr ogr ess at
Guwahati wi th the obj ecti ve to provi de
residential accommodation to the Officers
& Staff of SIDO posted in North-Eastern
Areas.
Shri Mani Shankar Aiyar, Honble Union Ministry of North East Region inaugurating the 4th North East Expo2007
at NSIC Exhibition Centre, New Delhi. Shri H.P. Kumar, Chairman-cum-Managing Director, NSIC and Ms.
Sushma Singh, Union Secretary, Department of North East Region also graced the occasion
103
8.5 NSICS ACTIVITIES IN NER
8.5.1NSIC has a network of offices
i n North Eastern Regi on. Thi s i ncl udes
branch office at Guwahati (Assam) and sub-
of f i ces at I mphal ( Mani pur ) , Di mapur
(Nagaland), Itanagar (Arunachal Pradesh),
Shillong (Meghalaya) and Agartala (Tripura).
NSIC has a Demonstration-cum-Training
Cent r e at Guwahat i , whi ch pr ovi des
t echni cal t r ai ni ng, ski l l upgr adat i on
pr ogr ammes and ent r epr eneur shi p
development programmes.
8.5.2 NSIC, Guwahati conducted various
I nt ensi ve Mot i vat i onal - cum- Awar eness
Programme in all the States of North East
i n associ at i on wi t h r egi onal bodi es /
i nst i t ut i ons engaged i n ser vi ng smal l
ent er pr i ses i . e. SI SI , Gangt ok; DI C,
Di mapur; Nagal and & North East Smal l
Scale Industries Association (NESSIA) at
Jorhat, (Assam).
8.5.3 Five Small Enterprise Establishment
Programmes (SEEP) have been conducted in
North Eastern Region with 25 candidates in each
programme. The programmes have been
conducted in Gangtok, Meghalaya, Byrnihut,
Kokrajaar (Assam) Tinsukhia. NSIC Guwahati
arranged imparting training and skill upgradation
in the field of leather footwear and minor articles,
hospitality and tourism management, catering and
baking technology, TV and mobile phone repair,
machinist, computer hardware and networking
etc.
The activities of IIE, Guwahati in the
NER are detailed in the Chapter V on Training
and Entrepreneurship Development.
Shri Mahabir Prasad, Honble Union Ministry of SSI & ARI, visiting the Cluster Actors from Dimapur, Nagaland
participating in the IITF, New Delhi
Page No.
104
DEVELOPMENT
ACTIVITIES FOR WOMEN
107
9.1 In the policy measure for promoting
and strengthening small, tiny and village
enterprises announced in Parliament on
06.08.1991, it was stated that the definition
of women enterprises would be simplified.
Accordi ngl y, t he def i ni t i on of Women
Enterprises has been revised as under:
A smal l scal e i ndustri al uni t/i ndustry -
rel ated servi ce or busi ness enterpri se,
managed by one or mor e women
entrepreneurs in proprietary concerns, or in
which she/they individually or jointly have
a share capital of not less then 51 per cent
as par t ner s/ shar ehol der s/ di r ect or s of
private limited company/members of co-
operative society.
9.2 PARTICIPATION OF WOMEN
IN SSI SECTOR
9.2.1 In the Thi rd Al l Indi a Census of
SSIs, the participation of women in the SSI
sector has been categorised in three roles:
some women are owners of enterprises,
some managers of enterprises and some
employees. With regard to ownership, the
def i ni t i on ment i oned above has been
adopted.
9.2.2 The t ot al number of women
enterprises in the SSI Sector was estimated
at 10, 63, 721 (10.11 %). The estimated
Chapter 9
DEVELOPMENT ACTIVITIES FOR
WOMEN
number of enterprises actually managed by
women was 9, 95, 141 (9.46 %).
9.2.3 About 13% of t he women
ent erpri ses were i n t he regi st ered SSI
category, the rest being unregistered. Of the
enterpri ses managed by women, 11.5%
were in the registered SSI category.
9.2.4 The share of the units managed by
women in terms of employment was 7.14%.
The employment generated per Rs. 1 lakh
investment in the units managed by women
was 2.49.
9.2.5 The t ot al number of f emal e
employees in the SSI sector is estimated
at 33, 17, 496. About 57.62% of the women
were employed in SSI units located in the
States of Tamil Nadu, Kerala, Karnataka,
West Bengal and Andhra Pradesh.
9.2.6 The proportion of female employees
in the total employment in the SSI sector
was 13. 315%. I n t he St at es/ Uni on
Territories of Mizoram, Orissa, Karnataka,
Goa, Lakshadweep, Kerala, Tamil Nadu and
Pondi cher r y, t he shar e of women
employment was significantly higher (more
t han 20%) , compar ed wi t h t he t ot al
employment in the respective States.
9.3 I n I ndi a, Women ent repreneurs
108
have been in business for quite some time
and achi eved r emar kabl e success.
However, their number is still small. One of
the reasons for this is the initial hesitation
and inhibition, which emanates from the
traditional and societal perception of the role
of women. Like any other entrepreneurs, a
new women entrepreneur has to compete
with those who are already well established.
Therefore, women entrepreneurs have to
not only face the gender insensitivity and
bi as preval ent i n t he soci et y but al so
compete against established competition. In
its industrial policy, the Government of India
has l ai d consi derabl e emphasi s on the
promot i on of women ent repreneurshi p,
par t i cul ar l y f i r st gener at i on women
entrepreneurs, through various training and
support services. Special attention is given
by organising exclusive entrepreneurship
development programmes for women. In
t hese pr ogr ammes, t he t r ai nees/
ent r epr eneur s ar e exposed, t hr ough
demonst r at i on and t r ai ni ng, t o t he
manufacture of a variety of products. Thus,
many women are trained every year by the
Insti tutes of the Mi ni stry. The avai l abl e
feedback shows that these women have not
l i mi t ed t hemsel ves t o t he convent i onal
ventures but also set up hi-tech industries
i n the fi el ds of i nformati on technol ogy,
engineering, graded grey iron, non-ferrous
cast i ng and sophi st i cat ed el ect r oni c
equipment, etc. Tool Rooms have started
designing special courses for women in the
f i el d of t ool engi neer i ng. Vol unt ar y
organisations in the country are also doing
commendable work in the field of women
ent r epr eneur shi p devel opment .
Associations of women entrepreneurs have
also come up and are doing remarkably well
in some States.
9.4 The Plan Schemes of Ministry of
Smal l Scal e I ndust ri es are f or t he
development of SSI Sector in the country and
the main focus is to provide a wide range of
servi ces and f aci l i t i es requi red f or
accelerating the growth of SSI. The Plan
Schemes operated by the Ministry benefit
States/regions and individuals. In case of
programmes like entrepreneurial development
programme, Management Devel opment
Programme, Nat i onal Award f or
Ent repreneuri al Devel opment (Qual i t y
Product s) and Trade Rel at ed
Ent repreneurshi p Assi st ance and
Devel opment (TREAD) Programme f or
Women, etc., the necessary guidelines have
been i ssued and speci f i c reservat i ons
provided for women.
9.5 TRAINING OF WOMEN
ENTREPRENEURS
Fi el d Insti tutes of SIDO conduct
need based programmes for existing and
prospective entrepreneurs. During 2006-07
(up to December, 2006), 10050 women
participated in various training programmes
l i ke Ent repreneurshi p Devel opment
Programme (EDP), Management
Devel opment Programme (MDP), Ski l l
Devel opment Programme (SDP) and
Industri al Moti vati onal Campai gn (IMC).
Autonomous Bodies under this Ministry also
109
conduct various short-term/long-term training
programmes in footwear technology, tool and
dye making and other allied industries. These
institutes provided training to 20280 women.
9.6 WOMEN EMPOWERED
UNDER INTEGRATED
INFRASTRUCTURAL
DEVELOPMENT SCHEME
Association of Lady Entrepreneurs of Andhra
Pradesh (ALEAP), an NGO compri si ng
women members onl y, has successful l y
compl eted the i mpl ementati on of an IID
proj ect at vi l l age Gaj ul aramaram, Di stt.
Rangareddy, A.P. In this, 75 units have been
established and employment generated by
these units is 1500 women. Out of the total
project cost of Rs. 347 lakh, Govt. of India
provided grant to the tune of Rs.139 lakh.
Another IID project at Vijyawada,
Distt. Krishna, A.P. is being implemented
by ALEAP. The total project cost is Rs.370
l akh and Government of Indi a grant of
Rs.91.38 lakh has been released for this
project. 10 units have been established in
this Centre so far and 100 women have
been benefited from this project upto the
end of December, 2006.
9.7 TRADE RELATED
ENTREPRENEURSHIP
ASSISTANCE AND
DEVELOPMENT (TREAD) FOR
WOMEN
Traditionally, women have been amongst
the most di sadvantaged secti ons of our
society with regard to access to and control
over resources. Problems faced by them
continue to be grave particularly for illiterate
and semi-literate women of rural and urban
areas. Apart from counseling and training,
availability of credit poses the most serious
problem for the poor women. In order to
al l evi ate thei r probl ems, the Mi ni stry of
Smal l Scal e I ndust r i es ( SSI ) i n t he
Gover nment of I ndi a has l aunched a
scheme t i t l ed Tr ade Rel at ed
Ent r epr eneur shi p Assi st ance and
Devel opment ( TREAD) f or economi c
empower ment of women t hr ough t he
development of their entrepreneurial skills
in non-farm activities.
2. The t hree mai n component s of t hi s
scheme are as under:
(i) Assi st ance i n t he f or m of t he
Government of India (GoI) grant of
up to 30 per cent of the total project
cost, as appraised by the lending
agency, i s provi ded t o t he Non
Gover nment al Or gani sat i ons
( NGOs) f or pr omot i ng
ent r epr eneur shi p among t ar get
groups of women. The remaining 70
per cent of t he pr oj ect cost i s
financed by the lending agency as
loan for undertaking activities as
envisaged in the project.
(ii) Selected training institutions and
NGOs conducti ng trai ni ng
programmes for empowerment of
women beneficiaries identified under
this scheme can also avail of GoI grant
110
of up to Rs.1.00 lakh per programme,
for imparting training to the women
entrepreneurs, provi ded such
institutions also bring their share of at
least 25 per cent of the grant. However,
NGOs except from the North Eastern
Region (NER), would be allowed to
conduct training programmes only after
they take up some lending proposals
under this scheme.
(iii) Need-based Government of India grant
up to Rs.5 lakh per project is provided
to Nati onal Entrepreneurshi p
Development Institutions (EDIs) viz.
National Institute of Small Industry
Extension Training (NISIET), National
Institute of Entrepreneurship and Small
Business Development (NIESBUD),
Indian Institute of Entrepreneurship
(IIE), EDIs sponsored by the State
Government, Small Industries Service
Insti tutes (SISIs), and any other
i nsti tuti on of repute pri mari l y for
undertaking field surveys, research
studies, evaluation studies, designing
of training modules, etc.
9.7.1 PERFORMANCE DURING 2006-
07
9.7.1.1 During the year 2006-07, Rs 41.45
lakh has been sanctioned as GOI grant to the
5 NGOs for their capacity building, whose
projects have been appraised by Canara Bank
and Canara Bank. Canara Bank has
sanctioned loan of Rs 102 lakh to these NGOs.
About 534 women are likely to be benefited
through the projects approved by Bank under
the TREAD Scheme so far. It is expected that
7 more projects may be appraised during the
year and another 1000 women entrepreneurs
are likely to get benefits during the remaining
period of the current financial year
9.7.1.2 Centre For Entrepreneurshi p
Development Madhaya Pradesh (CEDMP)
has conducted 5 EDPs and provided the
trai ni ng to 138 women for thei r Ski l l
Development so that they may set up income
generating activities.
9.7.1.3 The autonomous bodies under SIDO
i .e. PPDC, Meerut, CFTI, Agra and IIE,
Dehradun have been given the sanction for
GoI grant of Rs. 3 lakh each for conducting 3
EDPs by each under the scheme. It i s
expected that about 300 women are likely to
be trained by these institutions/bodies during
the remaining period of the current financial
year for economic empowerment of women
through their Skill Development so that they
may set up income generating activities.
9.7.1.4 An NGO, based in NER has been
given the financial sanction of Rs 2.00 lakh
for conducting 2 EDPs for providing training
on collection of Rubber Wood to about 50
women for their economic empowerment.
9.7.1.5 All the SISIs have been given the
financial sanction of Rs. 15000/- each for
organizing workshop to create awareness and
motivate the women, NGOs, Banks and other
Stakeholders so that more and more women
may avail of the benefits of the scheme.
USE OF OFFICIAL
LANGUAGE
113
10.1 Hindi is the Official Language of the
Union of India and the Government policy
is aimed at progressively increasing the use
of Hindi in official work. Effective steps were
taken duri ng the year i n the Mi ni stry of
Smal l Scal e I ndust r i es t o ensur e
compliance of Official Language policy of
the Government, i mpl ementati on of the
annual programme and compliance with the
or der s of t he Pr esi dent on t he
recommendat i ons of t he Commi t t ee of
Par l i ament on Of f i ci al Language.
Consequently, there has been a constant
progress in the use of Official Language in
official work in all these offices.
10.2 COMPLIANCE OF THE
PROVISIONS OF THE
OFFICIAL LANGUAGE ACT,
1963
All documents such as resolutions, general
orders, rules, licences, etc., under section
3(3) of the Official Language Act and all
papers laid on the Tables of the Houses of
Parliament were issued bilingually i.e. in
Hindi and English. Some papers like general
orders meant for Departmental use were
issued in Hindi only.
10.3 REPLIES TO LETTERS IN
HINDI
All letters received in Hindi were replied to
in Hindi.
USE OF OFFICIAL LANGUAGE
Chapter 10
10.4 CORRESPONDENCE IN HINDI
Letters to State Governments, Union Territory
Administrations and Central Government
offices located in regions A and B were
i ssued i n Hi ndi , to the maxi mum extent
possible. Similarly, efforts were made to send
letters in Hindi to Central Government offices
located in region C, as per the targets laid
down in the annual programme. About 89 per
cent correspondence were made in Hindi in
region A, 86 per cent in region B and 81
per cent in region C upto the quarter ending
December 2006.
10.5 SECTIONS SPECIFIED FOR
WORKING IN HINDI
The sections of the Ministry, notified for
doi ng al l wor k i n Hi ndi , ar e wor ki ng
satisfactorily.
10.6 MONITORING AND
INSPECTIONS
In order to ensure compliance of the Official
Language policy, monitoring is done through
quarterly progress reports in the meetings
of the Official Language Implementation
Commi t t ee et c. Duri ng t he year, ei ght
Sections of the Ministry were inspected, to
ensure use of Hindi and compliance of the
Official Language policy.
114
10.7 TRAINING OF OFFICIALS
All officials of the Ministry have already
been t r ai ned i n Hi ndi t ypi ng and
stenography.
10.8 USE OF MECHANICAL AIDS
As required under the Official Language Act,
bilingual facilities have been provided on
office equipment in the Ministry. Computers
and terminals have also been installed with
facility to work in Hindi.
10.9 COMMITTEES
10.9.1 To review the use of Hindi in the
Ministry and to give advice to accelerate the
use of Hindi, a Hindi Advisory Committee
exi st s i n t he Mi ni st ry. The meet i ng of
Committee was held on 15.09.2006. Further
action on the decisions of the Committee
has been taken.
10.9.2 Depart ment al Of f i ci al Language
I mpl ement at i on Commi t t ee under t he
chai rmanshi p of Joi nt Secret ary i n t he
Mi ni st ry of Smal l Scal e I ndust ri es has
al r eady been const i t ut ed. Quar t er l y
meetings of these committees were held
and decisions were taken regarding use of
Hindi in official work to ensure compliance
of these decisions and follow up action.
10.10 HINDI MONTH
Hi ndi mont h was cel ebrat ed duri ng 14
September, 2006 to 13 October, 2006 in the
Mi ni st ry. Compet i t i ons were organi sed
duri ng thi s peri od i n Hi ndi typi ng, Hi ndi
st enography, debat e i n Hi ndi , General
Hindi, Hindi dictation. A large number of
officers and employees participated with
enthusiasm. The messages of the Home
Mi ni st er and Cabi net Secr et ar y wer e
circulated for information and compliance on
this occasion.
VIGILANCE MATTERS
117
11.1 The vigilance unit of the Ministry is
headed by a Chief Vigilance Officer (CVO)
of t he r ank of Joi nt Secr et ar y t o t he
Government of I ndi a appoi nt ed on t he
advice of the Central Vigilance Commission
(CVC). The CVO functions as the nodal
point in the vigilance set-up of the Ministry.
The secretariat assistance to the CVO in
the Ministry of SSI is, however, provided
by the Vigilance Desk of the Department of
I ndust r i al Pol i cy & Pr omot i on ( DI PP) ,
Ministry of Commerce and Industry as the
Mi ni st r y of SSI does not have i t s
independent vigilance unit. The vigilance
uni t i s, i nt er al i a, r esponsi bl e f or t he
following:
i denti fi cati on of sensi ti ve areas
prone to malpractices/temptations
and taking preventive measures to
ensur e i nt egr i t y/ ef f i ci ency i n
Government functioning;
taking suitable action to achieve the
targets fixed by the Department of
Personnel & Trai ni ng (DoPT)on
anti-corruption measures;
scrutiny of complaints and initiation
of appr opr i at e i nvest i gat i on
measures;
inspections and follow-up action on
the foregoing;
furnishing comments to the CVC on
t he i nvest i gat i on report s of t he
Cent r al Bur eau of
Investigation(CBI);
taking appropriate action in respect
of departmental proceedings on the
advice of the DoPT & CVC;
obtaining second stage advice of
the CVC, wherever necessary; and
obtaining advice of the Union Public
Servi ce Commi ssi on (UPSC) i n
regard to the nature and quantum
of penalty to be imposed, wherever
necessary.
11.1.1 Preventive vigilance continues to
r ecei ve at t ent i on wi t h emphasi s on
identification of areas sensitive/prone to
mal pr act i ces and t empt at i ons. The
guidelines/instructions issued by the DoPT
and the CVC from time to time in this regard
are fol l owed. Acti on taken i ncl udes the
following:
(i) Regular and surprise inspections
are carried out by the Departmental
Security Officer of the DIPP. In the
attached and subordinate offices,
respective Departmental Security
Of f i cer s car r y out t hese
inspections.
VIGILANCE MATTERS
Chapter 11
118
(ii) St r engt heni ng of vi gi l ance
machi nery by way of appoi nti ng
CVO in the offices and organisations
under the Ministry, who looks after
the vigilance activities in the office/
organization concerned.
(iii) A strict watch is kept on liaison men
and on ot her persons. The
Departmental security instructions
are re-iterated from time to time for
streamlining entry of outsiders in the
bui l di ng. To end t he pract i ce of
professional liaison men operating in
the Mi ni stry, a fresh l i st of such
unwant ed l i ai son men has been
prepared.
(iv) Cases of the offi cers, who have
attained the age of 50 years or have
put i n 30 year s of ser vi ce, ar e
reviewed under FR 56 (j) in order to
judge their suitability to continue in
service thereafter. The exercise is
cur r ent l y bei ng done by t he
Establishment Division of the DIPP.
(v) In order to make officers conscious
of the provisions of Conduct Rules
appl i cabl e t o t hem as al so t o
acquaint them with the importance
of departmental security, Rules/
Instructions are reiterated in this
respect from time to time.
11.2 SMALL INDUSTRIES
DEVELOPMENT
ORGANISATION
The Vi gi l ance Uni t i n t he of f i ce of t he
Development Commissioner (Small Scale
Industries), New Delhi, is headed by a CVO
of the rank of Director to the Government
of Indi a appoi nted on the advi ce of the
Central Vigilance Commission (CVC), with
full complement of staff under him. The CVO
is also responsible for all the field offices of
the SIDO. The Vigilance Section deals with
vi gi l ance mat t er s l i ke compl ai nt s and
vigilance cases coming within the purview
of CCS (CCA) Rul es, 1965 concerni ng
Small Industries Development Organization.
11.2.1 Apart from dealing with complaints
and vigilance cases against officers and
staff relating to corruption and improper
mot i ves, a number of anonymous/
pseudonymous compl ai nt s as al so
complaints and vigilance cases other than
those of corrupti on or i mproper moti ves
pertaining to the officers of Small Industries
Devel opment Or gani sat i on wer e al so
handl ed. Al l compl ai nt s r el at i ng t o
corruption/improper motives and/or delays
were investigated and suitable action taken
against officers found guilty of misconduct/
misbehaviour.
11.2.2 The vigilance cases in respect of
Group C & D staff of field offices are
attended to by the Director of the institute/
centre who is assisted by AD (Admn).The
servi ces of seni or of f i cers bot h at t he
Headquarters office and in the field offices
are utilized for investigating the complaints.
11.3 NATIONAL SMALL
INDUSTRIES CORPORATION
(NSIC)
NSIC has appointed its own part
time CVO on the advice of the CVC.
CITIZENS CHARTER / RTI ACT
121
CITIZENS CHARTER / RTI ACT
Chapter 12
12.1 This Charter is a declaration of the
Mi ni st ry, i ncorporat i ng i t s mi ssi on and
commi t ment t o t he smal l scal e
entrepreneurs and for the people of India in
general.
12.2 MINISTRY OF SSI
The Ministry of Small Scale Industries is
responsible for formulation of policies and
desi gni ng pr ogr ammes, pr oj ect s and
schemes for promoting the growth of micro
and small enterprises in the country. The
policies and programmes/projects/schemes
are implemented by the organisations like
t he Smal l I ndust r y Devel opment
Or gani sat i on ( SI DO) , Nat i onal Smal l
Industries Corporation Ltd. (NSIC), national
l evel Ent r epr eneur shi p Devel opment
Insti tutes, etc. The Organi sati ons of the
Ministry have their own Citizens Charters.
12.3 MISSION
The mission of the Ministry is to promote,
i n cooperati on wi th other Mi ni stri es and
Departments of the Central Government,
St at e Gover nment s, Uni on Ter r i t or y
Administrations and all other stakeholders,
the growth and development of the micro
and small enterprises and to enhance their
competitiveness so that these enterprises
contribute to accelerating the expansion of
productive employment opportunities in the
country. The Mi ni stry seeks to ful fi l i ts
mission by formulating appropriate policies
and desi gni ng/ i mpl ement i ng suppor t
measur es i n t he f i el ds of cr edi t ,
t echnol ogi cal upgr adat i on, mar ket i ng,
entrepreneurship development, etc., and
undertaking effective advocacy for these
purposes.
12.4 COMMITMENT
The Ministry and its organisations
are committed to providing efficient and
prompt servi ce wi t h t ransparency and
courtesy to the citizens and as well as micro
and small enterprises.
Towards this, the Ministry will, in the
spirit of dutiful discipline, respect the rights
of i ndi vi dual s, ent repreneurs and t hei r
associations. The Ministry will maintain and
uphold the confidentiality of personal and
business information disclosed to it by the
citizens. The Ministry and its organisations
wi l l cont i nuousl y r evi ew t he pol i ci es,
programmes and enforcement of related
laws and regulations, in consultation with
the stakeholders concerned, with the aim
of fulfilling its mission.
12.5 STANDARD FOR GENERAL
PROCEDURE
122
The letters received by the Ministry are
generally acknowledged within 15 days and
replied to as soon as possible.
12.6 RESPONSIBILITIES OF OUR
CITIZENS
The Ministry expects continuous feed back
f rom t he ci t i zens on t he qual i t y of t he
services provided to them and on areas in
which improvements are expected.
12.7 ASSESSING PERFORMANCE
The Ministry, from time to time, shares its
per f or mance wi t h t he ci t i zens and
stakehol ders through the medi a and i ts
websi t e. The Mi ni st ry al so undert akes
independent surveys on perceptions of the
ci t i zens and assessment of i t s
performance.
12.8 GUIDANCE AND HELP
The Information and Facilitation Counter of
the Ministry, located on the ground floor,
Gate No.4, Ni rman Bhavan, New Del hi ,
provides information on the services and
act i vi t i es of t he Mi ni st r y and i t s
organisations.
12.9 COMPLAINTS
In case of any complaint, one may telephone
or send a letter or fax or visit the Ministry at
Udyog Bhavan, New Delhi. However, before
lodging of a complaint, one may, first of all,
use the Information and Facilitation Counter
of the Ministry. In case one is not satisfied,
t he mat t er may be t aken up wi t h t he
Gri evance Of f i cer i n t hi s Mi ni st ry. The
address, phone and fax numbers of the
Information and Facilitation Counter and the
Grievance Cell are as follows:
IMPORTANT ADDRESSES WEBSITES ADDRESS
(1) Grievance Cell www.ssi.nic.in - Ministry of SSI
Additional Development www.laghu-udyog.com - SIDO
Commissioner, www.nsicindia.com - NSIC
Office of the DC(SSI) www.niesbud.com - NIESBUD
Room No.721 www.nisiet.com - NISIET
Nirman Bhavan www.iie.nic.in - IIE
New Delhi 110011
Tel. No. 23061847
No. 011-23061017 (Fax)
(2) Information and Facilitation Counter
Gate No.4, Ground Floor,
Nirman Bhavan, New Delhi-110 011
Tel.No.23062219
123
12.10 RIGHT TO INFORMATION ACT
In order to promote transparency
and accountability in the working of every
public authority and to empower the citizens
to secure access to information under the
cont r ol of publ i c aut hor i t i es, t he
Government of India enacted The Right to
Information Act, 2005. In accordance with
the provisions of section 4(1) (b) of this Act,
t he Mi ni st ry of Smal l Scal e I ndust ri es,
Government of Indi a has brought out a
handbook for information and guidance of
the stakeholders and the general public and
hosted the same on the websi te of the
Mi ni stry i .e. www.ssi .gov.i n. In terms of
section 5(2) of the Right to Information Act,
2005, Central Public Information Officers
( CPI O) have been desi gnat ed i n t he
Ministry.
Attached office of the Ministry i.e. Small
Industry Development Organization (SIDO)
and other offices/organizations of Ministry
vi z. t he Nat i onal Smal l I ndust r i es
Corporation Limited (NSIC), a Public Sector
Undertaking and three EDI of the Ministry
which come under the administrative control
of this Ministry, have also designated CPIOs
in respect to their organizations. The details
of CPIOs designated by them is available
on the following websites:-
SIDO - www.lagu-udyog.com
NSIC - www.nsicindia.com
IIE, Guwahati - www.iie.nic.in
NISIET, Hyderabad - www.nisiet.com
NIESBUD, Noida - www.niesbud.com
124
ANNEXURE I
NUMBER OF SSI UNITS
FIXED INVESTMENT IN SSI SECTOR
125
PRODUCTION IN SSI SECTOR
EMPLOYMENT IN SSI SECTOR
ANNEXURE II
126
ABBREVIATIONS
CAD Computer Aided Design
CAM Computer Aided
Manufacturing
CFTI Central Footwear Training
Institute
CGFS Credit Guarantee Fund
Scheme
CLCSS Credit Linked Capital Subsidy
Scheme
CNC Computerized Numerical
Control
DC (SSI) Development Commissioner
(Small Scale Industries)
EDP Entrepreneurship
Development Programme
FTS Field Testing Station
IDTR Indo-Danish Tool Room
IGTR Indo-German Tool Room
IID Integrated Infrastructural
Development
IIE Indian Institute of
Entrepreneurship
ISO International Organisation for
Standardization
LUCC Laghu Udyami Credit Card
MDA Market Development
Assistance
MDP Management Development
Programme
NEF National Equity Fund
NIESBUD National Institute for
Entrepreneurship and Small
Business Development
NISIET National Institute of Small
Industry Extension Training
NSIC National Small Industries
Corporation Limited.
NTSC National Small Industries
Corporation Technical Service
Centre
PPDC Process-cum-Product
Development Centre
RTC Regional Testing Centre
SDP Skill Development Programme
SENET Small Enterprise Information
and Resource Centre Network
SEPTI Small Entrepreneurs
Promotion and Training
Institutes
SIDO Small Industries Development
Organisation
SME Small and Medium
Enterprises
SSI Small Scale Industries
TDMF Technology Development
Modernisation Fund
TRC Technology Research Centre
TREAD Trade Related
Entrepreneurship Assistance
and Development for
Women
TRTC Tool Room and Training
Centre
VDP Vendor Development
Programme
WTO World Trade Organisation
UNIT
1 crore 10 million
10 lakh 1 million
1 lakh 100 thousand

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