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Comprehensive policy package for SSI & Tiny Sector Entrepreneurship Management

Prof Bharat Nadkarni

Entrepreneurship Management
Comprehensive policy package for SSI & Tiny Sector
The Small scale industry (SSI) has emerged as Indias engine of growth in the new millineum. By the end of March 2000, SSI sector accounted for nearly 40 % of gross value of output in the manufacturing sector and 35 % of total exports from the country. There are around 32 lakh SSI/ tiny units in the country employing more than 18 million people. The most important challenge faced by the SSI and tiny sector is that of growing competition both globally and domestically. The sector has also been facing problems which relate to 1) Credit 2) Infrastructure 3) Technology 4) Marketing 5) Delayed payment 6) Hassels on account of so many rules and regulations

Entrepreneurship Management
In order to enable this sector to avail the opportunities and play its role as an engine of growth, it is essential to address to the problems effectively and urgently. For having a focused attention on the development of SSI and tiny sector, GOI has created a new ministry of SSI & Agro and Rural industries in october 1999. Interim report of the S P Gupta study team constituted by the planning commission provided the background material for the consideration of the group of ministers under the chairmanship of Mr L K Advani.The team was put together by PM Mr A B Vajpayee. On the recommendations from the team, a comprehensive policy package for the SSI and tiny sector was announced on 30 August 2000 by the PM.

Entrepreneurship Management
Support Organisations 1. Small industries development organisation (SIDO) 2. Small industries service institute (SISI) - its a service agency 3. National small industries corpn. Ltd. (NSIC) 4. Small industries development bank of India (SIDBI) 5. Technology bureau for small enterprises ( TBSE) 6. Maharashtra industrial development corpn. (MIDC) 7. Maharashtra small scale industries development corpn. Ltd. (MSSIDC) 8. Maharashtra industrial & technical consultancy services ltd. (MITCON)

Concessions & Incentives for SSI

Protective

Investment Limit Reservation Policy Interest on Delayed Payment Act

Government of India Government of India Government of India

Marketing
Price & Purchase Preference
Marketing Support

NSIC
NSIC / MSSIDC

Vendor Development Programme (VDP) SISI

Sub-contract Exchanges (SCX)


Market Development Assistance Programme (MDAP)

SISI
SIDO / SIDBI

Foreign Direct Investment


Participation in Equity of SSI

Government of India
Government of India

Technology
Technical Consultancy Organization (TCOs) Science & Technology Parks (STPs) State Government State Government

Research & Development (R&D)


Product & Process Development Centres (PPDC), Field Testing Stations (FTS),

NRDC / CSIR
SIDO / SISI

Tool Rooms (TR), Regional Testing Centres


(RTC), Tool Design Institutes (TDI), etc. Technology Development & Modernization SIDBI

Fund (TDMF)

Technology
ISO 9000 / ISO 14001 Certification SIDBI Integrated Technology Upgradation Programme SIDBI (UPTECH) Small Industries Management Assistance Programme SIDBI (SIMAP) Technology Bureau for Small Enterprise (TBSE) SIDBI Common Effluent Treatment Plant (CETP) State Government & GOI National Innovation and Business Incubation Programme SIDBI

Finance

Priority Sector Credit Policy

Reserve Bank of India

Bill Discounting
Factoring Service

Financial Institutes / Banks


Financial Institutes / Banks

Composite Loans

Financial Institutes / Bank

Finance
Liberal Credit Access
Liberal Working Capital Norms Venture Capital Funds Over The Counter Exchange of India (OTCEI)

Reserve Bank of India


Reserve Bank of India Financial Insti / Banks Government of India

Credit Guarantee Scheme (CGS)


National Equity Fund (NEF)

SIDBI
SIDBI

Taxation

Concessions under Income Tax Act

Government of India

Concessions under Central Excise


Concession under Stamp Duty

Government of India
State Government

Infrastructure

Integrated Infrastructure Development Scheme (IID)

Government of India

Cluster-based Infrastructure Development State Government

Human Resource Development


Entrepreneurship Development Institute of India (EDII) Government of India

National Institute for Entrepreneurship & Small


Business Development (NIESBUD) Indian Institute for Entrepreneurship (IIE)

Government of India

Government of India

Small Industries Extension Training Institute


of India (SIETII) Centres for Entrepreneurship Development (CEDs)

Government of India

State Government

Miscellaneous
Credit Rating WTO Sensitization Programmes Prime Minister Rojgar Yojna (PMRY) Deendayal Hath Kargha Protsahan Yojna Comprehensive Package for Khadi & Village Industries SIDBI SISI SIDO

KVIC
KVIC

Miscellaneous
Relaxation under Environment Laws Government State

Small Enterprises Information and


Research Centre Network (SENET) Rural Industries Programme (RIP) Package Scheme for I.T. Units Government

SISI
SISI & others State

Modified Scheme
Package Scheme of Incentives -State Government:

Capital Subsidy in Backward Areas only


Interest Subsidy on Term Loan for new Textile, Hosiery & Knitwear Units only. Octroi Refund in Backward Areas only Electricity Duty Exemption in Backward Areas and to

Sunrise Sectors

Neglected Areas

Reforms in Labour Laws Reforms in Power Sector