Page 128 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 7: Indian Industries

(b) Selective improvement of speculation in plant and apparatus from ` 1 crore to ` 5 crore. It Notes
was for 13 items in motionless sector and 10 items of drugs and pharmaceuticals sector,
from June 2003.
(c) Banks were absorbed to deliver credit to SSI sector within a notice rate band of 2 per cent
above and below their Prime Lending Rates (PLR).

(d) The complex loan limit for SSI was raised up from ` 25 lakh to ` 50 lakh.
(e) The limit of allowance of collateral condition was raised from ` 15 lakh to ` 25 lakh on the
basis of good path record and financial position of the unit.

(f) The lower limit of ` 5 lakh on loans enclosed under the Credit Guarantee Scheme was
detached. All loans up to ` 25 lakh were made qualified for guarantee cover under the
Credit Guarantee Scheme.
(g) 417 specialised bank branches were made working for SSIs.
(h) Third all India census for SSI was conducted throughout the country and its final results
were released on January 17, 2004.
(i) 60 clusters were recognized in July 2003 for focused progress.
(j) Small and Medium Enterprise (SME) fund of ` 10000 crore was set up under SIDBI to
resolve the problematic of insufficient finance for SSIs.
(k) Laghu Udyami Credit Card Scheme was liberalized. In this scheme, the credit perimeter
was improved to ` 10 lakh from ` 2 lakh. But, it was only for borrowers with acceptable
track record.

7.5.10 Policy Initiatives on SSI, 2004-05

You must note that the policy initiatives for this year are as follows:
(a) The national command on Enterprises in the Un-organised/Informal Sector was set up in
September 2004. It recommended events measured essential for development in the output
of these enterprises, compeers of large scale employment prospects, bond of the sector to
institutional outline in areas such as credit, raw material supply, infrastructure, technology
up gradation, marketing amenities and skill development by training.

(b) 85 items were de-reserved in October 2004.
(c) The speculation limit in plant and equipment was raised from ` 1 crore to ` 5 crore in
October 2004, in reverence of seven items of sports goods to assist in upgrading the
technology and improve competitiveness.
(d) The Small and Medium Enterprise (SME) fund of ` 10000 crore was started by SIDBI since
April 2004, with 80% of the giving for SSI units. The interest rate was 2% below the
prevailing Prime Lending Rate (PLR) of the SIDBI.
(e) The reserve Bank of India raised the composite loan limit from ` 50 lakh to ` 1 crore.
(f) Promotional Package for small enterprises was initiated.

7.5.11 Policy Package for SME, 2005-06

It is essential to note that this policy package covers the following points:
(a) The Ministry of Small Scale Industries has recognised 180 items for de-reservation.

LOVELY PROFESSIONAL UNIVERSITY 123