Page 127 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes 7.5.7 Comprehensive Policy Package for SSIs and Tiny Sector, 2000

You should note that the main focus of this policy is as follows:
(a) The exception for excise duty limit raised from 50 lakh to ` 1 crore to recover the
attractiveness.

(b) Credit related capital subsidy of 12% compared to loans for technology upgradation was
provided in specified industries.
(c) The third census of small scale industries by the ministry of SSI was showed, which also
enclosed sickness and its reasons in SSI’s.
(d) The limit of investment was enlarged in industry related service and business creativities
from ` 5 lakh to ` 10 lakh.
(e) The pattern of granting ` 75000 to each small scale enterprise for gaining ISO 9000
documentation was continued till the end of 10th plan.
(f) SSI connotations were interested to develop and operate challenging laboratories. One
time capital grant of 50% was given on repayment basis to each association.

(g) The limit of composite loan was improved from ` 10 lakh to ` 25 lakh.
(h) A group was established for rationalization of inspection and repeal of redundant laws
and regulations.

(i) The coverage of on-going Integrated Infrastructure Development (IID) was improved to
protection all areas in the country with 50% arrangement for rural areas and 50% allocating
of plots for tiny sector.

(j) The family income eligibility limit of ` 24000 was enhanced to ` 40000 per annum under
the Prime Minister Rozgar Yozna (PMRY).

7.5.8 Industrial Policy Package for SSI, 2001-02

You need to take into consideration that this policy emphasises the following:

(a) The investment limit was enhanced from ` 1 crore to ` 5 crore for units in hosiery and
hand tool sub sectors.
(b) The corpus fund set up under the Credit Guarantee Fund Scheme was increased from 125
crore to 200 crore.
(c) Credit Guarantee cover was provided in contradiction of a collective credit of ` 23 crore
till December 2001.
(d) 14 items were de-reserved in June 2001 related to leather goods, shoes and toys.
(e) Market Development Assistant Scheme was thrown wholly for SSI sector.
(f) Four UNIDO assisted projects were ordered during the year under the Cluster Development
Programme.

7.5.9 Industrial Policy on SSIS, 2003-04

You must understand that the following are the highlights of this endeavour:
(a) 73 items held in reserve for high-class manufacture in the SSI sector were de-reserved in
June 2003. These comprise chemical and their products, leather and leather products,
laboratory reagents, etc.

122 LOVELY PROFESSIONAL UNIVERSITY