Policy on small-scale units on the anvil

By Our Staff Reporter

BANGALORE, JUNE 2. The Union Minister of State for Small Scale, Agro and Rural Industries, Ms. Vasundhara Raje, today said the Government had taken major policy initiatives for meeting the requirements of small-scale industries and was likely to finalise a comprehensive national policy in three months.

Ms. Raje was speaking at the inaugural session of the golden jubilee celebrations of the Karnataka Small Scale Industries Association (KASSIA) here.

She said the Centre had realised the urgent need for evolving a comprehensive policy for small-scale industries in the wake of the problems being faced by them. A credit guarantee scheme with a corpus of Rs. 125 crores had already been approved to ensure smooth flow of credit to small and tiny units. The scheme would be operated by the Small Industries Development Bank of India (SIDBI). It would provide guarantee in respect of bank loans up to Rs. 10 lakhs, she added.

Ms. Raje said the Union Budget for 2000-2001 had dispensed with collateral security for loan up to Rs. five lakhs. It had also enhanced the limit of the composite loan scheme to Rs. 10 lakhs. The Technology Development and Modernisation Fund Scheme had been extended by three years. The SIDBI equity support had been increased from Rs. 10 lakhs to Rs. 25 lakhs.

The Centre had a vision of a ``strong and vibrant SSI sector which can contribute to economic progress and job creation,'' Ms. Raje said and added that the WTO agreement would imply the lowering of trade barriers and tariffs for exports.

She expressed the hope that the SSIs would get more export opportunities as they exported goods worth Rs. 50,000 crores in 1998-99.

Explaining the development of SSIs, she said in 1991, there were only 19 lakh small scale units. In seven years, their number increased to 31 lakh. The small scale sector had created 42 lakh new jobs, while the major industries and the Government could generate only 14.3 lakh new jobs. Given the situation in the country, there was no alternative but to develop the small scale sector, she added.

Ms. Raje pointed out that no successful small scale industry would remain as an SSI for ever. There was no reason to fear the WTO as the ``Union Government will not abdicate its role in supporting this sector.'' she said.

The past presidents of the KASSIA were felicitated on the occasion.

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Section  : National
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