Annual Report 2004-05 - Ministry of Micro, Small and Medium ...

ANNUAL REPORT2004-2005GOVERNMENT OF INDIAMINISTRY OF SMALL SCALE INDUSTRIES

Chapter IContentsPage No.Overview 1Chapter IISmall Industry Development Organization (SIDO) 5Chapter IIICredit and Fiscal Concessions to the SSI Sector 41Chapter IVNational Small Industries Corporation (NSIC) Ltd. 49Chapter VTraining and Entrepreneurship Development 58Chapter VIInternational Cooperation 69Chapter VIIActivities in the North Eastern Region 71Chapter VIIIDevelopment Activities for Women 73Chapter IXUse of Official Language 76Chapter XVigilance Matters 78Chapter XICitizens’ Charter 80Facts at a Glance 82Acronyms 84

TablesPage No.A. Performance of Regional Testing Centres 17B. Summary Report, Coverage and Highlights of the Final Results ofThird Census (2001-02) 23C. Section-wise details of Common Facility & Testing Services-PPDC, Meerut 30D. Physical Target & Achievements of CFTI, Chennai 33E. Actual & Anticipated Achievements of CFTI, Agra 33F Flow of Credit to SSI Sector from all Public Sector Banks, since 2000 41G. Status of Credit to Tiny Sector since 2000 42HFinancial performance year wise underCredit Linked Capital Subsidy Scheme (CLCSS) 46I. Various Reasons for Sickness/Incipient Sickness 48J. Types of Programme and Number of Participants - IIE 60K. Entrepreneurship Education - IIE 62L. Academic Performance of NISIET 65M. Training Programmes conducted by NIESBUD during 2004-05 67N. Proposals (State-wise) Approved for North Eastern Regionand Amount of Guarantee under the Credit Guarantee Scheme 71

Chapter IOVERVIEW1.0 BACKGROUNDThe small scale industries (SSI) constituteone of the vibrant sectors of the Indianeconomy in terms of employment generation,the strong entrepreneurial base it helps tocreate and its share in industrial productionand exports. The Government createdMinistry of Small Scale Industries and Agroand Rural Industries (SSI&ARI) in October,1999 as the nodal Ministry for formulation ofpolicy and co-ordination of Central assistancerelating to promotion and development of thesmall scale industries in India. The Ministryof Small Scale Industries and Agro and RuralIndustries (SSI&ARI) was bifurcated into twoseparate Ministries, namely, Ministry of SmallScale Industries and Ministry of Agro andRural Industries in September, 2001. Takinginto account the high potential for growth inthe SSI sector in terms of output, employmentand exports, the role of the Ministry of SmallScale Industries is to strengthen the SSIsector, to enable it to remain competitive inmarket-led economy and generate additionalemployment opportunities. For achievingthese objectives, the endeavor of the Ministryis to provide the SSI sector proper and timelyinputs like:! adequate credit from financial institutions/banks;! funds for technology upgradation andmodernization;! adequate infrastructural facilities;! modern testing facilities and qualitycertification laboratories;! modern management practices and skillupgradation through advancedtraining facilities;! marketing assistance; and! level playing field at par with the largeindustries sector;2.0 MINISTRY2.1 The Ministry of SSI designs policies,programmes, projects and schemes inconsultation with its organizations and variousstakeholder and monitors their implementationwith a view to assisting the promotion andgrowth of small scale industries. The Ministryalso performs the function of policy advocacyon behalf of the SSI sector with other Ministries/Departments of the Central Government andthe State and Union Territories.1

2.2 The implementation of policies and variousprogrammes/projects/schemes for providinginfrastructure and support services to smallenterprises is undertaken through its attachedoffice, namely the Small Industry DevelopmentOrganization (SIDO) and the National SmallIndustries Corporation (NSIC) Ltd., a publicsector undertaking under the Ministry.3.0 SMALL INDUSTRY DEVE-LOPMENT ORGANIZATION(SIDO)3.1 The Office of the DevelopmentCommissioner (Small Scale Industries) is alsoknown as the Small Industry DevelopmentOrganization (SIDO). It is an apex body forassisting the Ministry in formulating,coordinating, implementing and monitoringpolicies and programmes for the promotion anddevelopment of small scale industries in thecountry and is headed by the DevelopmentCommissioner (SSI).3.2 In addition, the SIDO provides acomprehensive range of common facilities,technology support services, marketingassistance, etc., through its network of 30 SmallIndustries Service Institutes (SISIs), 28 BranchSISIs, 7 Field Testing Stations (FTS), 4Regional Testing Centres, 2 Small EntrepreneurPromotion and Training Institutes (SEPTI) and1 Hand Tool Design Development and TrainingCentre. The SIDO also has a network of ToolRooms, Process-cum-Product DevelopmentCentres (PPDCs) and technology and trainingsupport institutes which are run as autonomousbodies registered as societies under theSocieties Act.4.0 NATIONAL SMALL INDUS-TRIES CORPORATION (NSIC)LTD.4.1 The National Small Industries CorporationLtd. was set up with a view to promoting, aidingand fostering the growth of small scaleindustries in the country with focus oncommercial aspects of these functions. NSICcontinues to implement its various programmesand projects throughout the country to assistthe SSI units. The Corporation has beenassisting the sector through the followingschemes and activities:! Supply of both indigenous and importedmachines on easy hire-purchase terms! Composite term loan scheme! Procurement, supply and distribution, ofindigenous and imported raw-materials! Marketing of small industries products! Export of small industries products anddeveloping export-worthiness of smallscale units! Enlisting competent units and facilitatingtheir participation in Government StoresPurchase Programme! Training in several technical trades! Sensitizing SSI units on technologicalupgradation through SoftwareTechnology Parks and TechnologyTransfer Centres! Mentoring & advisory services2

! Technology business incubators! Setting up small scale industries in otherdeveloping countries on turnkey basis! Other areas & international co-operation4.2 Over the years, the Corporation has madesignificant contribution to the growth of the SSIsector in India. The Corporation has also setup a large number of turnkey projects in anumber of developing countries. TheCorporation is an ISO: 9001-2000 Company.5.0 SMALL SCALE INDUSTRIESBOARD5.1 The SSI Board is the apex nonstatutoryadvisory body constituted by theGovernment of India to render advice on allissues pertaining to the SSI sector. The Ministerincharge of the SSI Ministry is the Chairman ofthe Board. Members of the Board, include interalia State Industries Ministers, selectedMembers of Parliament, Secretaries of variousDepartments of the Central Government, Headsof Financial Institutions, Representatives ofIndustry Associations and Eminent Experts.5.2 The SSI Board provides to its membersa forum for interaction to facilitate co-operationand inter-institutional linkages and to renderadvice to the Government on various policymatters, for the development of the sector.5.3 The Board was first constituted in 1954.Its term is for two years. The Board was lastconstituted on 18 th January, 2003, with 101members and held its 48 thmeeting on 17 thJanuary, 2004.6.0 NATIONAL INSTITUTES FORENTREPRENEURSHIPDEVELOPMENTAs entrepreneurship development andtraining is one of the key elements for thepromotion of small scale industries, the Ministryhas established three National Institutes, viz.the National Institute of Small IndustryExtension Training (NISIET) at Hyderabad, theNational Institute of Entrepreneurship and SmallBusiness Development (NIESBUD) at NewDelhi and the Indian Institute of Entrepreneurship(IIE) at Guwahati as autonomous bodies.These Institutes are responsible for developmentof training models and undertaking ofresearch and training for entrepreneurshipdevelopment in the SSI sector.7.0 NATIONAL COMMISSION ONENTERPRISES IN THEUNORGANIZED/INFORMALSECTOR7.1 The National Commission on Enterprisesin the Unorganized/Informal Sector wasconstituted in September, 2004 under thechairmanship of Dr. Arjun K. Sengupta, aneminent economist. It has three full-timeMembers and two part-time Members and anAdvisory Board consisting of 11 eminent expertsfrom different fields relating to the unorganized/informal sector. The Commission willrecommend measures considered necessaryfor bringing about improvement in theproductivity of the informal sector enterprises,generation of large scale employment3

opportunities on a sustainable basis, particularlyin the rural areas, enhancing the competitivenessof the sector in the emerging globalenvironment, linkage of the sector withinstitutional framework in areas such as credit,raw material, infrastructure, technologyupgradation, marketing and formulation ofsuitable arrangements for skill development.7.2 In accordance with its terms ofreference, the Commission and its AdvisoryBoard have held several rounds ofdeliberations on a host of issues relating tothe unorganized/informal sector enterprises.In the light of these deliberations, the followingissues have been identified so far by theCommission for detailed consideration andrecommendations:! notion of growth poles for the informal sectorin the form of clusters/hubs, where externaleconomies need to be provided to spuremployment generation and productivityenhancement and the feasibility ofintegrating the initiatives and programmesof various Ministries in this domain;! skill formation in the informal sector andpotential for public private partnership inproviding the required skills;! provision of micro finance and relatedservices to the informal sectorenterprises and strengthening of theinstitutional framework in this area; and! issues concerning social security for theworkers in the informal sector and instrumentalitiesfor achieving this objective.Shri Anupam Dasgupta, Secretary (SSI & ARI) is handing over the cheques of contribution for the PrimeMinisters’ Relief Fund (for Tsunami victims), to Hon’ble Minister of SSI & ARI Shri Mahabir Prasad. Also seenin the picture are Smt. Stuti N. Kacker Jt. Secretary - SSI and Shri Rajiv Bhatnagar, CMD-NSIC4

Chapter IISMALL INDUSTRY DEVELOPMENTORGANIZATION (SIDO)1.0 Small Industry Development Organizationheaded by the Development Commissioner, isan apex body for formulating, coordinating,implementing and monitoring policies andprogrammes for the promotion anddevelopment of the small scale industries in thecountry. It provides a comprehensive range offacilities and services to small scale unitsthrough a network of 30 Small IndustriesService Institutes (SISIs), 28 Branch SISIs, 7Field Testing Stations, 4 Regional TestingCentres, 2 Small Entrepreneur Promotion andTraining Institutes (SEPTI) and 1 Hand ToolDesign Development and Training Centre.1.1 For the benefit of Small Scale Industriesseeking information about the latesttechnologies available all over the world,Technology Resource Centres (TRCs) havebeen set up in all 30 SISIs. These TRCs areacting as an agency for identifying appropriatetechnology, help in acquiring skills for use oftechnology, as well as facilitate absorption oftechnology. In due course of time, TRC in eachSISI would be linked to the cluster developmentprogramme and will prepare information ontechnology based industrial cluster. The TRCwill work as a facilitator and enable the smallindustries to access different web sites for thelatest information and help the industry to adoptviable advanced technology suitable to localconditions.1.2 There are also a few specializedinstitutions, like The Central Institute of ToolDesign, Hyderabad, The Central Tool Room &Training Centres at Bhubaneswar and Kolkata,Central Tool Room at Ludhiana, 3 Indo-GermanTool Rooms at Indore, Aurangabad andAhmedabad and Indo-Danish Tool Room atJamshedpur, Institute for Design of ElectricalMeasuring Instruments (IDEMI), Mumbai,Electronics Service & Training Centre,Ramnagar (Uttaranchal), 2 Central FootwearTraining Institutes at Agra and Chennai, 2Process-cum-Product Development Centres atAgra & Meerut and Fragrance and FlavourDevelopment Centre, Kannauj and Centre forDevelopment of Glass Industry, Ferozabadwhich provide training and technical servicesin their respective specified fields.The important activities of the organizationare:! Advising the Government in policy formulatingfor the promotion and developmentof small-scale industries5

! Providing techno-economic andmanagerial consultancy, common facilityand extension services to small-scaleunits! Providing facilities for technologyupgradation, modernization, qualityimprovement and infrastructure! Human Resource Development throughtraining and skill upgradation! Providing economic information services! Maintaining a close liaison with theCentral Ministries, Planning Commission,State Governments, financial institutionsand other organizations concerned withthe development of the small-scaleindustries! Evolving and coordinating policies andprogrammes for development of smallscaleindustries as ancillaries to large andmedium scale industries! Provide testing calibrations services toSmall Scale Units! Implementing / monitoring of CreditGuarantee Fund Scheme and CreditLinked Capital Subsidy Schemecompetitiveness of small enterprises has beena long outstanding demand of the Sector,especially with a view to free the sector froma plethora of laws and regulations and visit of alarge number of inspectors, which it has to facewith limited awareness and resources. Ministryof SSI has drafted a Small & MediumEnterprises Development Bill to address theissues of small scale sector relating to:! Registration! Credit! State Procurement! Labour regulations! Delayed payment to SSIs! Reservation3.0 RESERVATION POLICYThe policy of reservation of items forexclusive manufacture in the small scale sectorwas initiated in 1967 with 47 items. Reservationgrants protection to small scale units againstlarge/medium scale undertakings includingmulti-nationals, who are not allowed tomanufacture these items except under 50%export obligation.An amount of Rs. 315.55 crore has beenallocated for implementation of the PlanSchemes during the financial year 2004-05.2.0 SMALL & MEDIUM ENTER-PRISES DEVELOPMENT BILLA single comprehensive Act forpromotion, development and enhancement of3.1 In order to provide statutory backing tothe reservation in small scale sector, theIndustries (Development & Regulation) Act,1951 was amended in March 1984 empoweringthe Government to reserve items. Thisnecessitated the constitution of an AdvisoryCommittee under the provisions of Section29(B) of the Act on reservation in March, 1984.The Secretary (SSI) is the Chairman of this6

Committee. The other Members of thisCommittee are Secretary (IP&P), Secretary(Commerce), Advisor (VSI), PlanningCommission with AS&DC (SSI) as Member-Secretary.3.2 This Committee has met 23 times and thelast meeting was held on 02-09-2004. On therecommendations of this Committee,Government de-reserved 85 items on 20-10-2004. As on date, 605 items are reserved forexclusive manufacture in the small scale sector.Enhancement of investment limit, for exportoriented/high tech items reserved formanufacture in SSI sector, from Rs. 1 crore to5 crore4.0 ENHANCEMENT OF INVEST-MENT LIMIT FOR EXPORTORIENTED / HIGH TECHITEMSIn order to enhance the competitivenessof the small scale sector, in the changingscenario of economic liberalization andglobalization, the investment limit in respectof certain hi-tech and export oriented items wasenhanced to Rs.5 crore enable them toundertake technological upgradation. Duringthe year 2003-04, investment limit in respectof seven items of sports goods reserved forexclusive manufacture in small scale sectorwas enhanced and notified vide NotificationNo. S.O.1109 (E) dated 13-10-2004. With this,the number of items, which have investmentceiling of Rs.5 crore in plant and machineryhas risen to 71.5.0 FOREIGN DIRECT INVEST-MENT IN SSIA small scale unit cannot have more than24 per cent equity in its paid up capital from anyindustrial undertaking, either foreign or domestic.If the equity from another company (includingforeign equity) exceeds 24 per cent, even if theinvestment in plant and machinery in the unitdoes not exceed Rs.1 crore, the unit loses itssmall scale status. The Ministry hascommunicated its consent to the enhancementof this limit to 49%. Non-small scale units canmanufacture items reserved for the small scalesector only after obtaining an industrial license.In such cases the non-small scale unit is requiredto undertake an obligation to export 50% of theproduction of SSI reserved items. The Ministryis also making a reference to the Department ofIP&P about reduction of this export obligation to30% as recommended by the Study Group.6.0 SMALL INDUSTRIES SER-VICE INSTITUTESThe scheme has been continuing from the 6 thFive Year Plan. Out of the 58 SISIs / Br. SISIs,15 SISIs/Br.SISIs are in the backward and hillyareas of the country.The main activities of Small Industries ServiceInstitutes/Branches are as follows:! Assistance/Consultancy to prospectiveand existing Entrepreneurs,! Preparation of State Industrial Profile andDistrict Industrial Potential Surveys,7

! Preparation/updation of project profiles,! Holding of EntrepreneurshipDevelopment Programmes, MotivationalCampaigns, Management DevelopmentProgrammes, Skill DevelopmentProgrammes,! Production Index,! Energy Conservation,! Pollution Control,! Quality Control & Upgradation,! Export Promotion,! Ancillary Development,! Common facility workshop/Lab,! Preparation of Directory of specificindustry,! Intensive Technical Assistance,! Coordination with DICs and other stategovernment official,! Undertaking of Market Surveys.6.1 The SISIs also perform job works andprovide common facility services to the small /SISI, Agartala organised a two-week ManagementDevelopment Programme on Marketing Management from13th to 24th September, 2004 at Agartala. On this occasionDr. V. S. Murthy, Director, SISI, Agartala delivering thewelcome addresstiny units through workshops set up in theseinstitutes. During the year, 3630 units wereassisted by way of developing high tech jigs,fixtures, tools, models, prototypes etc.and2416 trainees are to be trained in the area ofMechanical, Metallurgy, Chemical, Food andGlass & Ceramic technology. 69 DistrictPotential Survey Reports and 10 State IndustrialSurvey Reports have been prepared uptoDecember, 2004.7.0 UPGRADATION OF WORK-SHOP INTO MINI TOOL ROOMA few workshops have been convertedinto Mini Tool Rooms and provided hi-techmachines, CAD/CAM software, CNC machinesetc. have been provided to the selectedworkshops like SISI Mumbai, Chennai,Bangalore, Jaipur, Delhi, Kolkata, Kanpur,Ludhiana, Indore, Patna, Goa, Thrissur,Guwahati, Jammu, Ranchi, Br. SISIMangalore, Varanasi, Gwalior. Further tokeep pace with technological requirements,more CAD/CAM, computer aided facilitieshave been added in selected SIDO field officesas per the need of the local industry. 15000educated unemployed youth are to be trainedin the area of IT, Computer Aided Designing/Computer Aided Manufacturing (CAD/CAM),including specialized training on CNCmachines. In the coming years, all theworkshops attached with SISIs will beequipped with CAD/CAM software and hi-techmachines.8

8.0 ADVERTISING & PUBLI-CATIONS/LAGHU UDYOGSAMACHARAdvertising and PublicationsThe Advertising and Publication Divisionof Small Industry Development Organization(SIDO) creates awareness about GovernmentPolicies and Programmes; Incentives &Facilities, Institutional Support Servicesavailable to the Small Scale Sector. Itcoordinates with DAVP & SIDO offices fortimely publication of advertisements ondifferent entrepreneurship developmenttraining courses, management developmentprogrammes, skill development courses innewspapers in different parts of the country inits local languages.9.0 LAGHU UDYOG SAMACHARAND OTHER PUBLICATIONSvarious issues pertaining to the Small ScaleIndustries.9.2 On the occasion of the Golden Jubilee ofSIDO (1954-2004), a Commemorative Issue ofLaghu Udyog Samachar was released onAugust 30, 2004. During the year, 2004-05 thefollowing publications were brought out:(i) Final Results: Third All EnglishIndia Census ofSSI – 2001-02(ii) SIDO’s Half Century English(iii) SIDO’s Half Century Hindi(iv) Laghu Udyog Samachar BilingualJanuary – June, 2004(v) Laghu Udyog Samachar BilingualJanuary-June, 200410.0 INFORMATION & FACILI-TATION COUNTER (IFC)9.1 Laghu Udyog Samachar, a QuarterlyJournal in English and Hindi for Small ScaleIndustry Sector is disseminating updatedinformation for the benefit of the prospectiveand existing entrepreneurs. Laghu UdyogSamachar is an important window in print forthe small scale industry sector, providing accessto the latest information on a variety of topics.It creates awareness and disseminatesinformation on policies and programmes of theCentral and the State Governments,Government of India Orders, Circulars, GazetteNotifications, field activities, statistical andeconomic information as well as articles onThe Information and Facilitation Counter(IFC) in the office of DC (SSI) disseminatesupdated information for the benefit of theprospective and existing entrepreneurs on theservices and activities of the DC (SSI) andrelated institutions in the area of small scaleindustry promotion and development. TheInformation Counter is computerized andsupplemented by hard copies of informationsuch as brochures, pamphlets, books, etc. Theservices made available are (i) counseling &information on how to set up a SSI unit,(ii) supply of technical information, projectreports and details of various programmes,9

(iii) guidance on policies concerning smallenterprises and schemes of various StateGovernments, (iv) information on theregistration scheme and supply of registrationforms, (v) information on the IDR Act and theNotifications on definition, etc. issued under theAct. (vi) educates on Credit Policies of theGovernment, (vii) supply of statistics related tothe small scale industries, (viii) technical andmarketing information concerning small scaleindustries, (ix) list of Items reserved forexclusive manufacture in the SSI sector.11.0 SMALL ENTERPRISE IN-FORMATION & RESOURCECENTRE NETWORK (SENET)Small Enterprise Information & ResourceCentre Network (SENET), was launched by theOffice of the DCSSI in April, 1997, at anestimated cost of Rs. 434.5 lakh. The schemewas modified and its scope was enlarged toinclude office automation. The modified schemewas approved in March, 2000 at the estimatedcost of Rs. 1140.38 lakh. The scheme continuedin X plan with an outlay of Rs 1700 lakh.The objectives of the SENET project are:! to pioneer, create and promote databasesand information,! to facilitate networking amongst theinformation seekers, of the small scalesector, including the central/stategovernments, government agenciesengaged directly or indirectly in thepromotion and development of the SSIsector, national and state level industryassociations, NGOs,! to establish linkages with existingdatabases and the entrepreneur, fordevelopment and promotion of the smallscale sector,! to carry out office automation in the officeof the DC(SSI) for bringing out transparencyin the functioning of the office,! to create a Website for hosting dataavailable within the organization,! to host alliance databases in order toserve as a one-stop-shop for informationseekers, industry associations and alsoindividual industries.Actual Performance! 20 SENET centers were initially givenservers & networking components for 64KBPS leased line connectivity to the maincenter and database building, with trainedstaff. 10 more SISIs were provided withcomputer hardware and training to thestaff during 2002-03. Servers of 64 KBPS,ISDN dialup connectivity and LAN is beingset up in these SISI’s during the currentyear.! A website was created and launched in2000. It was upgraded to a knowledgebaseddatabase driven, interactive portaland launched on August 30, 2001. Thisportal now has more than 8000 pages ofstatic information and is being updatedtwice weekly. It has a message board,10

online polls section, on line eventssection, monthly e-news bulletin, etc.! Under office automation of SIDO, 170PCs were provided to the officers, uptoSection Officer level along with LANconnectivity. Main Center infrastructuredeveloped with Server room along with9 servers including 2 web servershosting the web portal and 3 databaseservers were commissioned along withleased line connectivity and a structuredLAN.! A multimedia presentation package onSIDO as well as SSI sector were broughtout in the form of CD-ROM. Revisedversion 2.0 of the CD was released in2001. The latest version 3.0 is now beingreleased.! Security audit was carried out and theentire infrastructure was reinforced withIntruder Detection System and othersecurity measures.! Online Search Facility for ISO 9000reimbursement cases was launchedduring November 2004.! Monthly E-Newsletter was launched fromDecember, 2004SENET has been awarded the GoldenIcon National Award 2005 for “BestDocumented Knowledge Resource” underProfessional Category by the Deptt. ofAdministrative Reforms & Public Grievances,Government of India and the Department ofInformation Technology.12.0 CONSTRUCTION OF OFFICEACCOMMODATION FORSIDO FIELD OFFICES90% of the SIDO offices located invarious parts of the country have their ownpermanent buildings which were constructedout of the funds allotted under the scheme.During the year 2003-04, building with vacantland was purchased for SISI, Solan. Efforts arebeing made to purchase a piece of land forSISI Ahmedabad for construction of its ownbuilding. The building for remaining SISIsbuilding will be constructed during 10 th FiveYear Plan. Further, under this scheme, fundsare being provided for maintenance/renovationof the SIDO buildings.12.1 Construction of residentialaccommo-dation for the officers &staff of SIDO in N.E. Region, HillyAreas, Union territories andBackward and Difficult Areas.To provide residential accommodationto the officers and staff of SIDO posted inNorth Eastern and other far flung areaswhere suitable rented accommodation atreasonable rent is not available, residentialaccommodation is constructed. Since theinception of the scheme, residentialaccommodation at Srinagar, Guwahati, Aizwal,Tura, Tezpur and Port Blair have beenconstructed. Construction is under progress atSilvasa.11

13.0 LIBRARYSIDO is maintaining Libraries at its Hqrs.office at Nirman Bhawan and in all its fieldInstitutes. These libraries are a source ofinformation and are maintained with theobjective of making available the technicalinformation required for the development ofsmall scale industries. In the era of InformationTechnology the SIDO libraries are beingequipped with computers, photostat machines,internet connectivity in a phased manner.During the year more than 50 technical journalswere purchased. About 30 libraries attachedwith SISIs/RTCs were modernized andequipped with computers, technical books withan expenditure of Rs.22.00 lakh.14.0 MANAGEMENT DEVELOP-MENT PROGRAMMESOrganizing of ManagementDevelopment Training programmes constitutesan integral part of the activities of SIDO,besides counseling and consultancy services.The objective of imparting training inmanagement subjects is to improve decisionmakingcapabilities resulting in higherproductivity and profitability of existing andpotential entrepreneurs. Inputs on scientific/modern management trends/practices areprovided to the participants in short durationsessions, by experts.14.1 During the year 2004-2005, 340 MDPswill be held for 7000 entrepreneurs/participants, an amount of Rs.40.69 lakh hasbeen sanctioned for the same. Upto Dec.,2004, 163 MDPs have been conductedbenefiting 3100 entrepreneurs. 148 MDPs areexpected to be conducted during remainingmonths of the financial year for about 3700entrepreneurs.15.0 SIDO OFFICERS TRAININGPROGRAMMEDuring the year 2004-05, it was decidedto nominate 400 officers/ officials incurring thebudgeted expenditure of Rs. 50.00 lakh fortraining of its officers and officials posted at itsfield offices i.e. Small Industries ServiceInstitute, Branch Institutes, Regional TestingCentres etc. located all over India as well asfrom its Headquarters at New Delhi. 322 officers/ officials have been nominated for differenttraining programmes within the country uptoNovember 30, 2004.16.0 ENTREPRENEURSHIP DEV-ELOPMENT PROGRAMMESMotivation and Training are the twocrucial inputs for promoting entrepreneurshipand sustaining the growth of existing smallscaleindustries. Small Industry DevelopmentOrganization (SIDO) has beenproviding these inputs regularly throughvarious Small Industries Service Institutes(SISIs). Regional Testing Centres (RTCs)and SEPTI, Tiruvalla.16.1 Entrepreneurship DevelopmentProgrammes are being organized as a regular12

enefiting 8700 entrepreneurs and about 260EDPs are expected to be conducted during theremaining months of financial year 2004-05, forabout 6300 entrepreneurs.17.0 WORLD TRADE ORGANI-ZATION (WTO) CELLShri A. Sahasranaman, Principal Secretary (Industries &Commerce), Govt. of J & K distributing certificate to one ofthe trainee. The samples of Cricket Bat & other sports goods,produced by the trainees during the programme, areexhibited on the tabletraining activity to cultivate the latent qualitiesof youth both (men & women) by enlighteningthem on various aspects that are necessary tobe considered while setting up enterprises. Theduration of these training programmes variesfrom 4 to 6 weeks with a minimum intake of 20participants in each course. The coursecontents of such EntrepreneurshipDevelopment Programmes were so designedso as to provide useful information on product/process design, manufacturing practicesinvolved, testing and quality control, selectionand usage of appropriate machinery andequipments, project profile preparation,marketing avenues/techniques, product/servicepricing, export opportunities, infrastructurefacilities available, financial and financialinstitutions, cash flow, etc.16.2 During the year 2004-05, SIDO will beconducting 619 EDPs for about 15000entrepreneurs in the country and an amount ofRs.216.31 lakh has been sanctioned. UptoDec.,2004, 346 EDPs have been conductedThe Cell is maintaining a close liaisonwith other concerned Ministries andDepartments like Ministry of Commerce &Industry, Directorate General of ForeignTrade, Directorate General of Anti-dumping& Allied Duties, DG (Safeguard), so as to keepupdated with regard to WTO Agreements andto protect the interest of the small scaleindustries.17.1 Various vital issues which arose dueto the Fourth WTO Ministerial ConferenceDoha were dealt with. Requisite feedbackon the modalities for negotiations on nonagriculturalproducts was sent to Departmentof Commerce, Ministry of Commerce &Industry.17.2 Similarly, inputs to Ministry of Commerceand Industry, Department of Commerce werealso sent in regard to various Bilateral TradeAgreements under which negotiations are goingon for exchange of tariff concessions. TheseAgreements are SAARC Preferential TradingArrangement (SAPTA), Bangkok Agreementwith Republic of Korea, China, Sri Lanka andBangladesh, Agreement on EconomicCooperation between India & ASEAN countries(Brunei, Darussalem, Cambodia, Indonesia,13

Laos, Malaysia, Myanmar, Phillipines,Singapore, Thailand, Vietnam), India -Singapore Comprehensive EconomicCooperation Agreement (CECA) PreferentialTrade Agreement between India andMERCOSUR (Created by Argentina, Brazil,Paraguay and Uruguay), Agreement on SAFTA,Preferential Trade Agreement with Chile andIndia-Thailand, Free Trade Agreement.18.0 NATIONAL AWARD FORSMALL SCALE ENTRE-PRENEURSTo boost the morale and motivate smallscale entrepreneurs to set up and manage SSIunits so as to achieve higher levels of productivemanagement through modernization, qualityupgradation, market expansion, exportNational Awards Presentationdevelopment, innovation and technologicalimprovements, an incentive-cum-recognitionscheme of National Awards to Small ScaleEntrepreneurs is in operation. The Awardsconsist of a certificate, a trophy and cash prizesamounting to Rs. 25,000, Rs. 20,000 and Rs.15,000 for first, second, third positions,respectively. Special Awards at par with theNational Award to an outstanding SC/ST and awoman entre-preneur have also beenintroduced since 1993. Special RecognitionAwards carrying cash prize of Rs.10,000, acertificate and a trophy is given to anentrepreneur from each State/UT.National Awards Presentation18.1 For the Year 2002, 20 entrepreneurs wereselected from various States/UTs for the abovementionedawards. Dr. Manmohan Singh,Hon’ble Prime Minister of India gave these14

19.0 SUB-CONTRACTING EX-CHANGE FOR ANCILLARYDEVELOPMENTSSI Convension/Golden Jubilee Celebration - felicitatingformer Development Commissioner, SSIawards in a glittering function held on August30, 2004 at Vigyan Bhawan, New Delhi.18.2 National Awards for Research &Development Efforts in Small ScaleIndustries: The Govt. of India has instituted ascheme of National Award for Research andDevelopment Efforts in the Small ScaleIndustries, to promote the concept of in-houseresearch and development efforts forstrengthening technical soundness and spirit ofinnovation amongst the units, in the largerinterest of overall qualitative development of theSmall Scale Industries.18.3 The First, Second and Third Award underthis scheme carries cash prizes ofRs. 25,000, Rs. 20,000 & Rs. 15,000 respectivelybesides a trophy and a certificate perannum.18.4 For the year 2002, Dr. Manmohan Singh,Hon’ble Prime Minister of India honoured 3Entrepreneurs on August 30, 2004.Following the announcement of theliberalized policy, a scheme for setting up ofSub-Contracting Exchanges by IndustriesAssociations/NGOs was launched. Under thisscheme the financial assistance upto Rs. 4.7lakh is provided for purchasing the capitalequipment such as computer and accessories,suitable software, furniture, photocopiermachine, telephone, fax machine, spiral bindingand cutting machine etc. So far 54 Sub-Contracting Exchanges have been set up byIndustries Associations/NGOs in various partsof the country (upto November, 2004). Fivemore Sub-contracting Exchanges are likelyto be set up by the end of the financial year2004-2005.20.0 VENDOR DEVELOPMENTPROGRAMMEUnder the existing schemes, VendorDevelopment Programme both at National andState Level are conducted by Small IndustriesService Institutes. These Vendor DevelopmentProgrammes provide a common platform forlarge scale industries i.e. purchasingorganizations and small scale industries assellers, to interact with each other and establishlong term business linkages. About 40-45Vendor Development Programmes areconducted in a year of which 8-10 are at theNational Level. 15 Vendor DevelopmentProgrammes have been conducted by the Small15

A section of audience during the inaugural session of theNational Level Exhibition-cum-Vendor DevelopmentProgrammeIndustries Service Institutes, in the different partof the country till November, 2004 and about25 Vendor Development Programmes are likelyto conducted by the end of the financial year.provides one time assistance upto 90% of thecost of machinery and equipment (limited toRs. 9 crore) for setting up a new Mini Tool Roomand 75% cost of machinery and equipmentlimited to Rs. 7.5 crore for upgradation ofexisting Mini Tool Rooms. The balancemachinery cost and the cost of land and buildingand recurring expenditure is to be funded bythe concerned State Government.Objectives! manufacture of jigs, fixtures, cutting tools,gauges, press tools, plastic moulds,forging dies, pressure casting dies andother tooling for small scale industries.Advanced tool making processes usingCAD/CAM techniques are to be adopted.! to provide training facility in toolmanufacturing and tool design togenerate a work force of skilled workers,supervisors, engineers/designers etc.Group Captain of Air Force and other dignitoriesvisiting the stalls21.0 MINI TOOL ROOM &TRAINING CENTREA ‘Mini Tool Room Scheme’ has beenlaunched, to help State Governments to set upSmall Tool Rooms, for creating localizedtraining and production facilities and forrendering assistance to the small scale units,in the field of Tool & Die Making. The scheme! to work as a Nucleus Centre for providingconsultancy, information service,documentation etc. for solving theproblems related to tooling of industriesin the region.! to act as a Common Facility Centre forsmall scale industries and to assist themin product and prototype development.Present statusThe proposals received for Mini ToolRooms from Governments of Kerala, MadhyaPradesh, Karnataka & West Bengal forUpgradation of their existing tool rooms have16

een approved and procurement of machinery& equipment is in progress.The proposals from Governments ofNagaland, Tripura and Jharkhand for setting upnew Mini Tool Rooms have also been approved.22.0 REGIONAL TESTINGCENTRES/FIELD TESTINGSTATIONS (RTC/FTS)Four Regional Testing Centres (RTCs)located at New Delhi, Mumbai, Chennai andKolkata provide testing facilities to small scaleindustrial units for raw materials, semi-finishedproducts and finished products manufacturedby them. These centres are equipped with thestate of art indigenous and imported equipment,in the disciplines of Chemical, Mechanical,Metallurgical and Electrical Engineering. TheCentres also undertake Performance test, Typetest and Acceptance test of semi-finished,finished products and also calibration works formeasuring instruments and equipment. Theyare also engaged in development of testingprocesses of various products.22.1 Besides, RTCs also render technicalsupport to the small scale units in upgradingthe quality of the products manufactured bythem. They also provide Consultancy Servicesin testing and quality management and inprocess quality system to SSIs.22.2 All the RTCs are accredited byinternationally recognized NABL certification asper ISO 17025 for Laboratories. RTC, Mumbaihas also been recognized by SASO (SaudiArabian Standards Organization) and aretesting products exported to that region inaddition to Europe and South Africa as per IEC/BSEN/SABS standards.22.3 The performance of RTCs during lastthree years and the self-sufficiency level ofthese centers are as follows:-23.0 FIELD TESTING STATIONSIn order to provide testing facilities in theareas of industry clusters, the Government ofIndia have set up Field Testing Stations atJaipur, Bhopal, Kolhapur, Hyderabad,Performance of Regional Testing CentresYear Revenue Recurring %age of revenue/ No. of jobs No. of testsearned Expenditure expenditure (self- completed performed(Rs. lakh) (Rs. Lakh) sufficiency level)2001-2002 245.54 341.23 71.95 13732 1348602002-2003 238.80 344.30 69.35 12336 1346462003-2004 258.50 343.18 75.32 12409 1395692004-2005 186.90 292.33 63.94 8564 107596upto Dec.0417

Pondicherry, Chenganacherry and Bangalore.These Testing Centres extend facilities fortesting of various products viz. chemicals, dyestuffs,lamps, rubber products castings andforgings, paints and varnishes, domesticelectrical appliances, general engineering etc.24.0 SETTING UP OF TESTINGCENTRES BY INDUSTRYASSOCIATIONS & MODERNI-SATION / EXPANSION OFQUALITY MARKING CEN-TRES UNDER THE AEGIS OFSTATE GOVERNMENTUnder the plan scheme, Government ofIndia provides one time capital grant in aid equalto 50% of the cost of testing machinery andequipment, restricted to Rs. 50 lakh, to theIndustries Associations which wish to set up andoperate testing laboratories of internationalstandards and also for modernization/expansion of existing Quality Marking Centresof State Governments and their Autonomousbodies. Rest of the expenditure on testingmachinery and equipment, land and buildingand working capital has to be borne by theIndustry Association/State Government.24.1 The scheme covers the TestingLaboratories established by IndustriesAssociations including Chamber of Commerce,Industrial Co-operatives registered under theSocieties (Registration) Act or under anystatutory Act. It also covers expansion/modernization of the existing centers under theaegis of State Government and StateGovernment funded autonomous bodies.24.2 The objective of the scheme is to promotesetting up of testing centers to offer facilitiesmainly to Industrial units including SSI unitslocated in the State for testing the quality of rawmaterials, components and the end productsas per the relevant standard specifications.18

24.3 Under the scheme, 12 Testing Centreshave been provided central grant-in-aid. Outof these, 5 Testing Centres have been set upby the Industry Associations and the remaining7 are Quality Marking Centres under the aegisof different State Governments. Budgetprovision of Rs.50 lakh has been made for theyear 2004-05.25.0 SMALL INDUSTRY CLUSTERDEVELOPMENT PRO-GRAMMEThe Office of the DevelopmentCommissioner (SSI) had launched a schemeon Technology Upgradation and ManagementProgramme called UPTECH in 1998 for clusterof industries, where there is commonality in themethod of production, quality control and testing,energy conservation, pollution control etc.among the units (of the cluster). The schemefocused on technology development of thecluster. In view of globalization of economy,small scale sector faces a stiff competition notonly on quality and price front but other fronts,like marketing, export, raw materialprocurement etc. and a collective approach bythe SSI units to mitigate the common problemsof the cluster have been considered to beeffective for cluster development. The schemehas, therefore, been renamed as Small IndustryCluster Development Programme (SICDP) sothat it can focus on all the aspects viz marketing,export, study visit, skill upgradation, etc. fordevelopment of the cluster in addition totechnology as a holistic approach is moreappropriate for cluster development.25.1 Seventy eight clusters have so far beentaken for development under SICDP whichcomprised thirty nine clusters for the year 2003-04 and eighteen clusters till December during2004-05. The list of clusters taken up during2004-05 is as below:! Food Processing, Muzaffarpur, Bihar! Steel Re-rolling Mills, Raipur, Chhatisgarh! Agricultural Implements, Karnal, Haryana! General & Light Engineering, Parwanoo,Himachal Pradesh! Readymade Garments, Bangalore,Karnataka! Gold Ornaments, Thrissur, Kerala! Readymade Garments, Indore, MadhyaPradesh! Brass & Bell Metal, Khurda, Orissa! Agricultural Implements, Moga, Punjab! Ball Bearings, Jaipur, Rajasthan! Leather Footwear, Agra, Uttar Pradesh! Leather Goods, Shaniniketan, UttarPradesh! Installation of Common Facility Centre inBrass/ Bronze Utensils ManufacturingCluster at Pareb, Bihar! Development of Whiteware Cluster atKhurja, U.P.! Development of Auto Parts Clusters atPhagwara, Jalandhar and Ludhiana! Development of Cane & BambooCluster at Dimapur, Nagaland25.2 In addition to this, a National ResourceCentre was set up at NISIET, Hyderabad to train19

Cluster Development Executives, carry outresearch related to cluster development etc.25.3 Development of Toy Industry, StoneIndustry, Machine Tool Industry, Lock Industryand Hand Tool Industry have been taken upas a National Programme in collaboration withUNIDO at a project cost of US$ 2.2 million, US$1.2 million, US$ 1.2 million, US$ 1.2 millionand US$ 0.75 million, respectively. GOIcontribution for the programme is US$ 1.1million, US$ 0.6 million, US$ 0.6 million US$0.48 million and US$ 0.3 million, respectively.26.0 ISO 9000 / ISO 14001 CERTI-FICATION REIMBURSEMENTSCHEMEThe scheme for ISO 9000 reimbursement,in operation since March 1994, wasenlarged to include reimbursement of expensesfor acquiring ISO 14001 certification also witheffect from October 28, 2002.The salient features of the scheme are:! The Scheme envisages reimbursementof charges for acquiring ISO-9000/14001(or its equivalent) certification to the extentof 75% of the cost subject to a maximumof Rs. 75,000/- in total.! All Small Scale industries with PermanentRegistration are eligible to avail theIncentive Scheme.! The scheme is applicable only to thoseunits who have already acquired ISO 9000(or its equivalent)/ISO 14001 certification.! The scheme provides one time reimbursement.The amount of subsidy/financialsupport if already received from the StateGovt./financial institution shall be adjustedagainst the entitlement of reimbursementunder this scheme.! Govt. of India has extended the Schemeupto the 10 th Five Year Plan, i.e., March31, 2007.26.1 During the year 2004-05, 2011 SSI unitshave been reimbursed Rs.10.72 crore upto31.12.2004. About 4000 SSI units are expectedto be benefited through this scheme during theyear 2004-05.26.2 Awareness/Motivational & EducationalTraining Programme on IS0 9000/14001: Office of the DC (SSI) has simultaneouslytaken up Awareness/Motivational &Educational Training Programme on ISO 9000and TQM through its field Institutions (SISIs &RTCs) to sensitize the Small Scale Industriesin ISO 9000 and TQM Quality Systems so thatthey are motivated to adopt the InternationalQuality System and become competitive in theglobal market. So far about 200 programmes(one/two/four/five day’s duration) have beenconducted and 7223 participants have beenbenefited upto December, 2004.27.0 MODERNIZATION OF SIDOWORKSHOPSThis is an ongoing Plan Scheme with theallocation of Rs.500 lakh during the 10 th Planfor the workshops attached to SISIs/Br.SISIs.Funds are generally provided to SISIs/Br.SISIsfor replacing their outdated/out of order machi-20

nes. Funds are also being provided for purchaseof accessories, equipments which are requiredfor these machines for developing Jigs, Fixtures,Dies, and Tools etc. On these machines,training is also imparted to the workerssponsored by SSI units and unemployed youthseeking jobs in SSI units. During the year Rs.45 lakh were spent to upgrade the existinginfrastructure and Rs.5 lakh in N.E region.28.0 ENERGY CONSERVATIONPROGRAMME (UNDERTECHNOLOGY UPGRADA-TION SCHEME)In pursuance to the National Programmeon Energy Conservation, SIDO launched thisprogramme for Small Scale Industries in 1990-91. There are many energy intensive areas inSmall Scale Sector, such as foundry, forging,steel steel re-rolling mills, SSI units adoptingEnergy audits to improve energy efficiency andfuel substitution, and monitoring the implementationof recommendations.28.1 During the year 2004-05, 30 Awarenessand Motivational–cum-Educational Programmeson Energy Conservation at the costof Rs. 1.80 lakh have been allocated to SISIsfor the benefit of about 900 SSI units.29.0 INTEGRATED INFRASTRUC-TURAL DEVELOPMENT (IID)SCHEMEThe Integrated Infrastructural Development(IID) Scheme was launched in 1994, withthe objectives to promote small scale and tinyunits, creating employment opportunities anddeveloping exports. The Scheme coversdistricts which are not covered under the GrowthCentres Scheme. The aim of the IID Scheme isto provide developed sites with infrastructuralfacilities like power distribution network, water,tele-communication, drainage and pollutioncontrol facilities, roads, banks, raw materials,storage and marketing outlets, common servicefacilities and technological back-up services etc.The Scheme covers rural as well as urban areaswith a provision of 50% reservation for ruralareas and 50% industrial plots are to bereserved for tiny sector. The Scheme alsoprovides for upgradation/strengthening of theinfrastructural facilities in the existing oldindustrial estates.29.1 The estimated cost to set up an IIDCentre is Rs. 5.00 crore (excluding cost ofland). Central Government provides 40% toa maximum of Rs.2.00 crore as grant andremaining amount could be loan from SIDBI/Banks/Financial Institutions or the Statefunds.29.2 Special dispensation for NE Region(including Sikkim), J&K, H.P andUttaranchal: With a view to give a fillip to thegrowth of small industries in the North EastRegion and a few other states, Govt. of Indiarelaxed the funding pattern of this Scheme forNorth East Region (including Sikkim), J&K, H.P.and Uttaranchal. As per revised funding pattern,Govt. of India provides central grant upto 80%to a maximum of Rs.4.00 crore and theremaining amount could be loan from SIDBI/Banks/Financial Institutions or the State funds.Such agencies should have good track recordand sound financial position.21

29.3 Progress : Till 31.12.2004, the CentralGovernment has approved the setting up of 97centres in various states including 13 projectsfor upgradation of infrastructure in the existingindustrial Estates. During the year 2004-05(uptoDecember, 2004), 5 new IID Centres have beensanctioned. Out of the total central grant ofRs.179.08 crore committed for these projects,an amount of Rs.82.43 crore has been releasedupto Dec. 2004. About 23000 sites are proposedto be developed in these centres and 5597sites have been allotted to the small/tiny units.30.0 SCHEME ON COLLECTION OFSTATISTICS OF SSIsThe scheme was started with the objectiveto collect, compile and disseminate statisticaldata/information on small scale industrial sector.Conduct of Census, Sample Survey, Collectionof IIP data and Updation of frame are coveredunder the scheme. The scheme is implementedthrough State Directorates of Industries (SDIs)and Districts Industries Centres (DICs).30.1 Under the Scheme the following workare being undertaken: (i) Computation of Indexof Industrial Production for small-scale sectorfor working out growth in production; (ii) Supplyof monthly production data to Central StatisticalOrganization (CSO) so as to represent SSIsector in the overall Index of Industrial Production(IIP) brought out by CSO; (iii) Estimationof information on number of un-registered units;(iv) Estimation of production, employment ofboth registered and unregistered units; (v)Updation of Frame and analysis of registrationdata and correspondence with State/UTDirectorates of Industries and (vi) Conductingcensus and sample survey/diagnostic survey,from time to time.30.2 The objective of the Sample Surveys was(i) to estimate proportion of working units,closed/untraceable units etc. and to facilitate inestimating the mortality rates of Small ScaleIndustrial Units in various lines of production;and (ii) to provide Industry wise (2-digits levelof NIC) ratios of SSI units, in respect ofestimated investment, employment, production,capacity utilization, exports, gross/net valueadded, value of raw material consumed etc.30.3 So far two sample surveys have beenconducted during 1994-95 and 1999-2000 andone on “Diagnostic Survey” on sickness during1982-83.31.0 THIRD CENSUSThe Census, besides updating theprevious Census data, helps in identifiying shift/changes taken place in the small scale sector.The first census was conducted in 1973-74 andthe reference year was calendar year 1972.Second census was conducted in 1990-91 withthe reference year was financial year 1987-88.31.1 After a gap of about 12 years, the Officeof the DC(SSI) launched the Third Census inNovember, 2002. In this census, the unitsregistered permanently upto March 31, 2001were covered on complete enumeration basis.A total of 22,62,401 units were surveyed. Outof these, 13,74,974 units were found to beworking and remaining 8,87,427 units (39%)were found closed.22

31.2 The Unregistered SSI sector wassurveyed for the first time in the third census.This sector was surveyed using a two-stagestratified sampling design. Out of 9,94,357villages and urban blocks, 19,579 villages andurban blocks were surveyed to identify the unitsof unregistered SSI sector. The size of theunregistered SSI sector is estimated to be91,46,216. This comprises 38.75 % SSIs and61.25 % SSSBEs.Summary Report, Coverage and Highlights of the Final Results of Third Census (2001-02)Characteristics Registered SSI sector Unregd. sector Total SSI sector1. Size of the sector 13,74,974 91,46,216 1,05,21,1902. No. of rural units 6,09,537 51,98,822 58,08,359(44.33 %) (56.8 %) (55 %)3. No. of SSIs 9,01,291 35,44,577 44,45,868(65.55 %) (38.75 %) (42.26 %)4. No. of SSSBEs 4,73,683 56,01,639 60,75,322(34.45 %) (61.25 %) (57.74 %)5. No. of ancillary units 45,797 86,516 1,32,313(% age of no. of SSIs) (5.08 %) (2.44 %) (2.98 %)6. No. of tiny units 8,82,496 35,43,091 44,25,587among SSIs (99.9 %) (97.9 %) (99.5 %)7. No. of women 1,37,534 9,26,187 10,63,721enterprises (10 %) (10.13 %) (10.11 %)8. Nature of activity:Manufacturing/ 8,72,449 33,03,366 41,75,815Assembling/Processing (63.45 %) (36.12 %) (39.69 %)Repairing & 28,843 16,92,663 17,21,506Maintenance (2.10 %) (18.50 %) (16.36 %)Services 4,73,682 41,50,187 46,23,869(34.45 %) (45.38 %) (43.95 %)9. Type of organisation :Proprietary 12,21,702 88,62,548 1,00,84,250(88.85 %) (96.9 %) (95.8 %)Partnership 99,190 1,03,662 2,02,852(7.21 %) (1.13 %) (1.9 %)Pvt. Company 33,284 38,153 71,437(2.42 %) (0.42 %) (0.68 %)Cooperatives 4,715 9,854 14,569(0.34 %) (0.11 %) (0.14 %)Others 16,083 1,31,999 1,48,082(1.17 %) (1.44 %) (1.41 %)23

Characteristics Registered SSI sector Unregd. sector Total SSI sector10. No. of units managed by :SC 1,07,934 9,43,969 10,51,903(7.85 %) (10.32 %) (10 %)ST 48,560 4,74,271 5,22,831(3.53 %) (5.19 %) (4.97 %)OBC 5,29,406 38,11,372 43,40,778(38.50 %) (41.67 %) (41.26 %)Others 6,89,074 39,16,604 46,05,678(50.12 %) (42.82 %) (43.8 %)11. No. of units managed 1,14,361 8,80,780 9,95,141by women (8.32 %) (8.37 %) (9.46 %)12. Main source of power :No power needed 3,60,611 38,55,035 42,15,646(26.23 %) (42.15 %) (40 %)Coal 28,841 2,95,165 3,24,006(2.10 %) (3.23 %) (3.1 %)Oil 40,401 5,55,416 5,95,817(2.94 %) (6.07 %) (5.66 %)LPG 7,222 55,237 62,459(0.53 %) (0.60 %) (0.59 %)Electricity 8,99,657 40,25,262 49,24,919(65.43 %) (44.01 %) (46.8 %)Non-conventional energy 7,142 60,539 67,681(0.52 %) (0.66 %) (0.64 %)Traditional energy/ Firewood 31,100 2,99,562 3,30,662(2.26 %) (3.28 %) (3.14 %)13. No. of units having outstanding 2,76,333 5,01,306 7,77,639loan as on 31-3-2002 (20.1 %) (5.48 %) (7.39 %)14. No. of units having outstanding 1,96,137 2,82,267 4,78,404loan with institutional sources (14.26 %) (3.09 %) (4.55 %)as on 31-3-200215. No. of sick units (with erosion 46,431 58,338 1,04,769of net-worth by more than (3.38 %) (0.64 %) (1 %)50 % or delay in repaymentof institutional loan by morethan 12 months)16. No. of incipient sick units 1,58,023 5,92,899 7,50,922(decline in gross output over (11.5 %) (6.48 %) (7.14 %)three consecutive years)17. No. of sick units as per RBI 38,403 46,887 85,290criteria, i.e., those that are sick (19.6 %) (16.61 %) (17.8 %)among units having outstandingloan with institutional sources24

Characteristics Registered SSI sector Unregd. sector Total SSI sector18. No. of sick/ incipient sick units 1,92,328 6,30,568 8,22,896(with erosion of net-worth by (13.98 %) (6.89 %) (7.82 %)more than 50 % or delay inrepayment of institutional loanby more than 12 months ordecline in gross output overthree consecutive years)19. Reasons for sickness/incipient sickness :Lack of demand 1,11,508 4,35,121 5,46,629(58 %) (69 %) (66 %)Shortage of working capital 1,09,844 2,69,648 3,79,492(57 %) (43 %) (46 %)Non-availability of raw material 23,493 76,029 99,522(12 %) (12 %) (12 %)Power Shortage 33,099 77,345 1,10,444(17 %) (12 %) (13 %)Labour Problems 12,182 26,282 38,464(6 %) (4 %) (5 %)Marketing problems 70,202 2,24,002 2,94,204(37 %) (36 %) (36 %)Equipment problems 16,995 76,038 93,033(9 %) (12 %) (11 %)Management problems 9,124 21,088 30,212(5 %) (3 %) (4 %)20. Per unit employment 4.48 2.05 2.3721. Total employment 61,63,479 1,87,69,284 2,49,32,76322. Per unit original value of Plant 2.21 0.27 0.52& Machinery (in Rs.lakhs)23. Total original value of Plant 30,32,868 24,56,492 54,89,360& Machinery (in Rs.lakhs)24. Per unit fixed investment 6.68 0.68 1.47(in Rs. Lakhs)25. Total fixed investment 91,79,207 62,55,660 1,54,34,867(in Rs. Lakhs)26. Per unit Gross Output 14.78 0.86 2.68(in Rs.lakhs)27. Total Gross Output 2,03,25,462 79,01,536 2,82,26,998(in Rs. Lakhs)28. No. of exporting units 7,344 43,262 50,60629. Value of exports (in Rs. lakhs) 12,30,826 1,89,130 14,19,95625

Characteristics Registered SSI sector Unregd. Sector Total SSI sector30. Employment per 0.67 3.00 1.62Rs. one lakh investment31. Units maintaining accounts 4,04,672 5,98,333 10,03,005(29.43 %) (6.54 %) (9.53 %)32. No. of economic activities as per 672 619 672National Industrial Classification-1998, pursued in SSI sector33. No. of products/ services as per 5,983 2,680 6,003ASICC produced/ rendered inSSI sector34. No. of reserved products (as per 877 382 878the reserve list effective on31-3-2001) produced in SSI sectorESTIMATED NO. OF UNITS WITH RESPECTTO REASONS FOR NON-REGISTRATIONNot aware of the provisions 53.13 %for registrationNot interested 39.86 %Complicated procedures 3.87 %Local laws/ regulations 1.76 %do not permitClearance not available 1.38 %from Municipality etc.31.3 Highlights of Third Census of SSISectorThe main highlights of the Third Censusof Small Scale Industries are as follows:Registered SSI sector! All the SSI units permanently registeredupto March 31, 2001 numbering 22,62,401were surveyed on complete enumerationbasis, of which 13,74,974 units (61 %)were found to be working and 8,87,427units (39 %) were found to be closed.! Of the 13,74,974 working units, 9,01,291were SSIs and 4,73,683 were SSSBEs.Thus, the proportion of SSIs was 65.55%. About 5.08 % of the SSI units wereancillary units. The proportion of the unitsoperating in rural areas was 44.33 %.! In terms of no. of working units, six States,viz., Tamil Nadu (13.09 %), Uttar Pradesh(11.85 %), Kerala (10.69 %), Gujarat(10.08 %), Karnataka (8.04 %) andMadhya Pradesh (7.41 %) had a shareof 61.16 %.! With regard to closed units, six States,viz., Tamil Nadu (14.33 %), Uttar Pradesh(13.78 %), Punjab (9.32 %), Kerala (8.43%), Madhya Pradesh (7.4 %) andMaharashtra (6.11 %) had a share of59.37 %.26

! The per unit employment was 4.48. Theemployment per rupees one lakhinvestment in fixed assets was 0.67.! Rice milling industry topped the list interms of gross output. In terms of exports,textile garments and clothing accessoriesindustry was on top.! Compared to Second Census, the ThirdCensus brought out some structuralchanges in the registered SSI sector.While the proportion of working unitsremained the same by and large, thedomination of SSIs among the workingunits has been reduced considerably from96 % to 66 %. This is mainly due to theincrease in the number of units engagedin services. The per unit employment hasgone down from 6.29 to 4.48. The per unitfixed investment has gone up fromRs.1.60 lakh to 6.68 lakh. This could bedue to technological upgradation.Unregistered SSI sector! This sector was surveyed using a twostagestratified sampling design. Out ofthe 9,94,357 villages and urban blocks,19,579 villages and urban blocks weresurveyed to identify the units ofunregistered SSI sector. Out of these,information was completely received inrespect of 19,278 villages and urbanblocks. In these villages and urban blocks,the enumerators selected 1,68,665unregistered SSI units for survey, but theycould actually survey 1,67,665 units.! The size of the unregistered SSI sectoris estimated to be 91,46,216. Of these,only 38.75 % were SSIs and the rest wereSSSBEs.! The reasons for non-registration wereelicited in the Third Census. Interestingly,53.13 % of the units informed that theywere not aware of the provision forregistration, while 39.86 % of the unitsindicated that they were not interested.! About 45.38 % of the units were engagedin Services while 36.12 % were engagedin manufacturing and the rest of the 18.5% in repair/ maintenance.! Maximum number of unregistered SSIunits (16.89 %) were located in UttarPradesh. The other States having veryhigh concentration of unregistered SSIunits were Andhra Pradesh, West Bengal,Maharashtra, Madhya Pradesh, TamilNadu, Karnataka, Bihar, Rajasthan andGujarat.! 96.9 % of the units were proprietary unitsand about 1.13 % of the units werepartnership units.! The average employment was 2.05 andthe employment generated per one lakhfixed investment was 3 persons.! About 10.13 % of the units were womenenterprises and 57 % of the units weremanaged by socially backward classes.Total SSI sector! The size of the total SSI sector is estimatedto be over one crore (1,05,21,190). About27

42.26 % of these units were SSIs and therest were SSSBEs. The number ofancillaries among SSIs were 2.98 %.! About 47.22 % of the units were locatedin Uttar Pradesh, Andhra Pradesh,Maharashtra, Madhya Pradesh and TamilNadu.! The Services Sector emerged as thedominant component in the Total SSISector with a share of 44 % of the units.! Although registration is voluntary in theSSI sector, the registered SSI sector wasfound to be the cream of the total SSIsector. In terms of size, it was only 13 %,but in terms of investment its share was59 % and it contributed to 59 % of thetotal production.! About 95.8 % of the units were ofproprietary type of ownership. Entrepreneursbelonging to socially backwardclasses managed about 56 % of the units.! The number of women enterprises was10.11 %. The number of enterprisesactually managed by women was 9.46 %.! The number of women employees wasof the order of 13.31 %. The employeesbelonging to socially backward classesnumbered 57.45 %.32.0 RESEARCH INSTITUTIONSElectronics Service & Training Centre(ESTC), Ramnagar, UttaranchalElectronics Service & Training Centre(ESTC) was set up with UNDP assistance asa Government of India Society under theSocieties Registration Act 1860 in April, 1986.The main objective of setting of this Centre isto develop human resources to meet theessential requirements for transfer oftechnology in assembly and manufacturing ofelectronic items and parts to promote growthof electronics industry in the small scalesector.Significant Work done : (i) Setting up trainingfacilities in the field of HF cable and fibre opticstechnology and Bio- Medical equipment; (ii)Software development for the institutes underSIDO; (iii) Developed Motor Speed Ratio meter;and (iv) The training modules are designed asper the need of the industry with more emphasison hand on training.33.0 CENTRE FOR THE DEVE-LOPMENT OF GLASSINDUSTRY, FIROZABADCentre for the Development of GlassIndustry was established by Government ofIndia with the assistance of UNDP and activesupport of Government of Uttar Pradesh topromote and modernize glass industry by wayof upgrading the conventional technologiespresently in use and transfer of moderntechnology. The main objective of the centreis to provide technical support to the smallscale glass industry by way of installation ofenergy efficient glass melting furnaces,auxiliary furnaces, introduction of new type ofglasses and their standardization,environmental protection and to introduce28

developed techniques for the decoration ofglasswares and training for skill developmentso as to improve the quality and productivityof glass units.Significant work done : (i) Developed andconstructed a fuel efficient Pot Arch Furnace;(ii) Erected an electric operated RounderFurnace for making small solid glass beadsof size 0.5 mm diameter; (iii) Construction ofpot arch and development of Pot TransferTrolley; (iv) Achieved fuel saving by way ofmodification in conventional 12 pot furnaceand by way of insulation of crown and damperto the extent of 300 NM and 500 NMrespectively; and (v) Helped the glassindustry in monitoring the ambient air qualityand flew gas ana-lysis of the furnaces stackfor suggesting better combustion controlpractices.34.0 PRODUCT-CUM PROCESSDEVELOPMENT CENTREMEERUTPPDC (Sports Goods & Leisure timeequipments), Meerut was set up in 1984 as aGovt. of India Society with UNDP assistancemainly to cater the technical need of sportsgoods industry in the country. The institute aimsat upgradation as well as improvement inexisting technology, quality control, in houseR&D activities and providing workshop andtesting facilities to the sports goods and alliedindustry.Major activities during the year 2004-2005! Training: The Centre has organised fivetraining courses on Sports Goods manufacturingat Meerut (U.P.), Srinagar (J&K) &Jalandhar (Punjab). 77 candidates participatedin these training courses.! Seminar: A get-together with industrialunits was organized on September 25, 2004at PPDC, Meerut with a view to familiarizeindustry members with the latest commonfacilities of the Centre. 92 participants attendedthe programme.! R&D Activities : The following R&Dactivities are under process:- New Type Clicking Press (Prototype).- Cricket Ball Panel Hole Piercing Machine(Prototype) before stitching.- Cricket Ball Leather by Alum Combinationtanning.! Survey/Study Report : PresentationProgramme of Study Report for Sports GoodsCluster at Jalandhar, prepared for UNIDO wasconducted on August 25, 2004 .112 membersof the sports goods industry attended theprogramme.! Branch PPDC, Jammu: With a view toactivate the Br. PPDC, Jammu, two machinesand other equipment have been installed andaction for installation of electric connection of10 KVA is under process.29

! Other activities : The vehicle is providedto collect and eliver the job work at the site ofunit to attract the job works and to facilitatethe units.35.1 Special work done : PPDC, Agra hasconducted a diagnostic study and made a reportof PAREB Cluster of Brass utensilsmanufacturing units. In this connection, anSection-wise details of Common Facility & Testing Services - PPDC, MeerutSl. Name of the Section No. of Jobs No. of units RevenueNo. attended benefited earned (Rs.)1. Leather Processing Workshop 62 24 40,592.002. Mechanical Workshop 76 29 6,11,856.003. Wood Workshop 147 37 74,721.004. Rubber/Plastic Workshop 1 1 6,500.005. Testing Lab 105 26 2,50,168.006. Training - - 2,000.00Total 391 117 9,85,837.0035.0 PROCESS & PRODUCTDEVELOPMENT CENTRE,AGRAThe Process & Product DevelopmentCentre, Agra, a National level Centre, wasestablished by Govt. of India with the supportof Govt. of UP and assistance of UNDP/UNIDOto provide requisite technical inputs fortechnological upgradation specially in forgingand casting industry in small scale sector tobuild up their image among the entrepreneursand instil confidence among them. The Centrealso extends consultancy and training facilitiesto improve and update skill and knowledge ofmanpower of various levels of the small scaleunits.amount of Rs.110 lakhs has been sanctionedfor establishing a common facility centre atPAREB for improving the above cluster ofindustries. All efforts are being made byPPDC Agra to standardize low cost gas firedcupola.35.2 International Cooperation : A MOU hasbeen signed during May 2004 with CTI LouiseBergers Group as a technical collaborator inthe area of combustion engineering for thedevelopment of low cost gas fired cupolafurnace.35.3 Special Programme for Women :Computer operator and programmingassistance course has been started by theCentre giving special preference to women30

candidates. 15 women candidates areundergoing training in it.35.4 Assistance to SSIs : 94 small scale unitshave been assisted in the area of developmentof cast and forged components, cupola energyconservation, pollution control, emission testingof cupola, material testing, rejection control etc.36.0 FRAGRANCE & FLAVOURDEVELOPMENT CENTRE,KANNAUJ (U.P.)FFDC is the only center of its kind in thecountry which is catering to the needs of the smallscale sector in the field of quality upgradationand providing common facilities services for theprocessing of essential oils, creation of fragrance& flavours etc. to the small scale sector as alsoassistance to the farmers in improvingagronomical practices for cultivation of aromaticplants. The Centre is presently providingfollowing services:! Quality Assessment and standardization.! Creation of fragrance and flavors.! Processing technology.! Agro technology extension services.! Information, documentation and trainingin the various facets of essential oilindustry including value addition.36.1 In order to broaden the activities of thecentre and extend the facilities & services tothe other parts of the country, a cluster approachhas been adopted for the development ofaromatic & medicinal plants and Neem basedproducts under Mission for Millennium-2000programme nominating FFDC as animplementing agency. The locations of theseclusters are Neem products at Jhalawar(Rajasthan), Mint & other essential oils at Patna(Bihar), Vetiver at Dhaulpur (Rajasthan), Kewraat Berhampur (Orissa) and Geranium atBhowali (Uttranchal).36.2 It is estimated with the setting up ofthese 5 clusters during the Tenth Five YearPlan, an additional 50,000 hectares of landwould be brought under cultivation ofAromatic plants and Neem resulting in settingup of at least 5000 distillation units nearplantation area and creation of additional 2lakh job opportunities both in farm andindustrial sector.37.0 INSTITUTE FOR DESIGN OFELECTRICAL MEASURINGINSTRUMENTS (IDEMI),MUMBAIIDEMI was set up in collaboration withUNDP as a Government of India Society underthe Societies Registration Act 1860, in the year1969. The Institute renders calibration andelectric measuring instruments testingfacilities, technical consultancy in designdevelopment and proto-type fabrication andconducts training course in the filed ofinstrumentation. IDEMI has rendered excellentservice to the Industry during the last 35 Yearsand the Institute has earned a name amongstthe Instruments Manufacturers, its users andGovt. Organizations.31

Significant Work done! IDEMI, Mumbai has completed NozzleBlock/ Rotor Shaft for ISRO. This hasbeen first time indigenized by IDEMI,Mumbai and has received theappreciation from ISRO.! Fibre Optics testing and training facilitybeing added.! Energy Meter type testing facility beingadded.! The facilities at laboratories and workshops has been upgraded to keep pacewith the latest technological development.! The training modules are designed as perthe need of the industry with moreemphasis on hand on training.38.0 CENTRAL INSTITUTE OFTOOL DESIGN, HYDERABADCentral Institute of Tool Design,Hyderabad was established in the year 1968by Govt. of India with the assistance of UNDP/ILO. It was the first institute of its kind in thecountry. The original investment of the institutewas Rs.2.37 crore. The aim of the institute wasto fulfill the tooling and training needs of smallscale industries in the field of tool design andmanufacturing.Significant work done! The tool room has achieved ISO 9001-2000 certificate.! The institute has developed importsubstitute tools for Research Centres,Imarat (a DRDO establishment)! The institute has conducted internationaltraining programmes under variousbilateral agreements such as ITEC, TCSColombo Plan, and Aid to Sri Lanka etc.! The facilities at the tool room has beenupgraded to keep pace with the latesttechnological developmentsThe training modules are designed as perthe need of the industry with more emphasison hands on training39.0 CENTRAL FOOTWEAR TRAI-NING INSTITUTE, CHENNAIThe Central Footwear Training Institute(CFTI), Chennai, a Govt. of India Society is apioneer Institution, rendering various types oftraining programmes on footwear technologyand allied subjects.Information Dissemination : The instituteprovides the information on the FootwearIndustry, Technology and Trade through its wellequipped Library that contains numerous booksand periodicals.40.0 CENTRAL FOOTWEAR TRAI-NING INSTITUTE, AGRAThe Institute holds affiliation with themost prestigious Textile Institute, U.K. and alsorecognized by AICTE for its Two YearsDiploma Course in “Footwear Design &32

Physical Target & Achievements of CFTI, ChennaiSl. Particulars 2003-04 2004-05 2004-05No. (Actual) (Upto (Anticipated forDec.’04) remaining Periodof 2004-05)1 No. of training courses (long term) 5 5 12 No. of training courses (short term) 4 6 63 No. of trainees 386 470 2504 No. of units benefited 51 72 205 No. of Job undertaken 101 302 1006 Revenue Generated (Rs. in lakhs) 59.33 48.38 43.507 Recurring Expenditure (Rs. in Lakhs) 58.88 45.57 40.608 % Recovery 101% 90.90% 107%Production Technology”. The major activitiesof the Institute are:! To train personnel in footwear technologyfor the fresher and for personnel alreadyengaged in this field,! To develop products & design with a viewto secure advantage in export production,! To provide training & research facilities totrainers in the footwear and alliedindustries with a view to upgrade their skill,! To provide consultancy services for smallscale units in the field of footwear industryand,! To promote acquisition of InternationalStandards in footwear industry.Actual & Anticipated Achievements of CFTI, AgraSl. Particulars Actual Anticipated forNo. (Upto Dec.,04) remaining monthsof 2004-051. No. of Training Courses(Long Term) 02 022. No. of Training Courses (Short Term) 06 033. No. of trainees trained/passedout 214/88 160/1204. No. of unit benefited 87 765. No. of Job undertaken 1250 6226. Revenue Generated (Rs. in Lacs) 59.44 25.667. Recurring Expenditure (Rs. in Lacs) 35.51 24.498. % of Recovery 129.89 104.7733

41.0 TOOL ROOMS41.1 Central Tool Room & TrainingCentre, KolkataCentral Tool Room & Training Centre,Kolkata was established during 1977-78 undertechnical co-operation programme betweenGovernments of India and Denmark to upgradetechnology and to consolidate the project.Germany and with active support of Governmentof Punjab for providing the services in the areaof tooling (Tool Design and Tool Manufacture),Precision Machining, Heat Treatment, TechnicalTraining and Technical Consultancy to metalworking industry in general and small scaleindustries in particular so as to improve thequality and productivity of such units.Significant work done : (i) The tool room hasachieved ISO 9001-2000 certificate; (ii)Developed several toolings as importsubstitution; (iii) The facilities at the tool roomhas been upgraded to keep pace with the latesttechnological developments; and (iv) Thetraining modules are designed as per the needof the industry with more emphasis on handson training Nearly 100% placement has beenachieved for various long term traineesCoordinate measuring machine in the Inspection Wing ofCentral Tool Room & Training Centre, Kolkata41.3 Indo-German Tool Room,AhmedabadSignificant work done (i) The tool room hasachieved ISO 9001:2000 certificate; (ii) Developedseveral toolings as import substitution;(iii) The facilities at the tool room have beenupgraded to keep pace with the latest technologicaldevelopments and (iv) The training modulesare designed as per the need of the industrywith more emphasis on hands on trainingIndo-German Tool Room, Ahmedabadwas established by Government of India intechnical collaboration with the Government ofFederal Republic of Germany. The Tool Roomhas been set up to fulfill the tooling and trainingneeds of the small scale industries in the fieldof Tool Design and Manufacture and trainingof technical personnel in these fields.41.2 Central Tool Room, LudhianaCentral Tool Room, Ludhiana wasestablished by Govt. of India in technicalcollaboration with Govt. of Federal Republic ofSignificant work done : (i) The tool room hasachieved ISO 9001-2000 certificate; (ii) the toolroom has admitted a batch of 09 trainees fromSouth Africa for a 1-year Course in the area oftool and die making; (iii) developed several34

Convocation ceremony of Diploma in Tool and Die makingstudents of IGTR, Ahmedabadtoolings as import substitution; (iv) the facilitiesat the tool room has been upgraded to keeppace with the latest technological developments;and (v) the training modules aredesigned as per the need of the industry withmore emphasis on hands on training.41.4 Indo-German Tool Room,AurangabadIndo-German Tool Room, Aurangabadwas established by Government of India intechnical collaboration with the Government ofFederal Republic of Germany. The StateGovernment of Maharashtra provided land andbuilding to the project. The Tool Room hasbeen set up to fulfill the tooling and trainingneeds of the small scale industries in the fieldof Tool Design and Manufacture and trainingof technical personnel in these fields.Significant work done : (i) the tool room hasachieved ISO 9001-2000 certificate; (ii) the toolroom has admitted a batch of 09 trainees fromSouth Africa for a 1-year Course in the areaof tool and die making; (iii) to provide accessto tool room facilities to SSIs located in otherareas, the tool room has opened sub-centresat Pune and Mumbai; (iv) developed severaltoolings as import substitution; (v) the tool roomis taking steps to develop e-learning/e-teachingpractices in tool and die technology; (vi) thefacilities at the tool room has been upgraded tokeep pace with the latest technologicaldevelopments; (vii) the training modules aredesigned as per the need of the industry withmore emphasis on hands on training; and (viii)nearly 100% placement for the long termtrainees has been achieved41.5 Indo German Tool Room, IndoreIndo-German Tool Room, Indore wasestablished by Government of India in technicalcollaboration with the Government of FederalRepublic of Germany. The State Governmentof Madhya Pradesh provided land and buildingto the project. The Tool Room has been set upto fulfill the tooling and training needs of thesmall scale industries in the field of Tool Designand Manufacture and training of technicalpersonnel in these fields.Significant work done : (i) the tool room hasachieved ISO 9001-2000 certificate; (ii)developed several toolings as importsubstitution; (iii) the facilities at the tool roomhas been upgraded to keep pace with the latesttechnological developments; (iv) the trainingmodules are designed as per the need of theindustry with more emphasis on hands ontraining; and (v) nearly 100% placement hasbeen achieved for various long term trainees.35

41.6 Central Tool Room & TrainingCentre, BhubaneshwarCentral Tool Room & Training Centre,Bhubaneshwar has been set up in the year 1991under Technical Co-operation Programmebetween Government of India and Governmentof Denmark, for which agreement was signedin June, 1989.Significant work done : (i) the tool room hasachieved ISO 9001-2000 certificate; (ii) the toolroom has got ISO 14001:1996 Certification; (iii)the tool room has assembled first lot ofassemblies for Light Combat Aircraft (LCA)–Tejas for Aeronautical Development Authority;(iv) developed several toolings as importsubstitution; (v) the tool room is taking steps todevelop e-learning/e-teaching practices in tooland die technology; (vi) the facilities at the toolroom has been upgraded to keep pace with thelatest technological developments; (vii) thetraining modules are designed as per the needof the industry with more emphasis on handson training; (viii) nearly 100% placement for thelong term trainees has been achieved; and (ix)the tool room has trained 291 women traineesin their different short term CAD/CAM courses.Significant work done: (i) the tool room hasachieved ISO 9001-2000 certificate; (ii)developed several toolings as importsubstitution; (iii) the facilities at the tool roomhas been upgraded to keep pace with thelatest technological developments; (iv) thetool room has introduced 6-months course onMetrology exclusively for the girls; (v) thetraining modules are designed as per theneed of the industry with more emphasis onhands on training; and (vi) nearly 100%placement has been achieved for various longterm trainees.Visit of Chairman/AS & DC (SSI) to IDTR Jamshedpur(Production Section)41.7 Indo Danish Tool Room,JamshedpurIndo Danish Tool Room, (formerly CentralTool Room & Training Centre), Jamshedpur hasbeen set up in the year 1991 under TechnicalCo-operation Programme between Governmentof India and Government of Denmark.Visit of Chairman/AS & DC (SSI) to IDTR Jamshedpur(Training Section)36

41.8 Central Institute of Hand Tool,Jalandhar41.9 Hand Tool Design Developmentand Training Centre, NagaurThe hand tools industry consists oforganized small scale and cottage sector whichhas undergone a rapid expansion in the country.About 80% of hand tool industry is located inand round Jalandhar in Punjab, Nagaur inRajasthan, Puralia in West Bengal and Tumkurin Karnataka. The hand tool industry is playinga vital role in the economic development andearning valuable foreign exchange for thecountry.With a view to upgrade the hand tooltechnology in the country and to provide thenecessary technology support services, theGovernment of India set up the Central Instituteof Hand Tools as a National Institute atJalandhar in the State of Punjab as autonomousorganization with the assistance of UNIDO inthe year 1983.Significant work done : (i) the tool room hasachieved ISO 9001-2000 certificate; (ii) thefacilities at the tool room has been upgraded tokeep pace with the latest technologicaldevelopments; (iii) the training modules aredesigned as per the need of the industry withmore emphasis on hands on training; (iv) theInstitute has been identified for capacity buildingof the institute under National Programme forpromoting energy efficiency in Hand Tool SSISector in India, a programme launched byMinistry of SSI, Govt. of India jointly withUNIDO, Hand Tool Industries Association &SIDBI.The Hand Tool Design Developmentand Training Centre, Naguar was set up atNagaur in Rajasthan in the year 1988. Themain objective of this project is to develophand tool industry in small and tiny sectionslocated in and around Nagaur by providingconsultancy and advisory extension servicesin the areas of tool room, heat treatment,metal finishing, forging and testing, commonfacility services to these small and tinyindustries. Centre is also assisting small scaleunits to adopt modern technology in the fieldof product design, production process andquality control for cost reduction andimprovement in profitability. Testing facilitiesand training facilities are also provided for upgradation of quality of production and trainedmanpower.Significant work done : The Institute has beenidentified for capacity building under NationalProgramme for promoting energy efficiency inHand Tool SSI Sector in India, a programmelaunched by Ministry of SSI, Govt. of India jointlywith UNIDO, Hand Tool Industries Associationand SIDBI.41.10 Tool Room & Training Centre,GuwahatiIn order to create facilities formanufacturing of tools & dies and for trainingin tool & die making in the North Eastern region,a Tool Room & Training Centre (TRTC) is being37

established at Guwahati at an estimated costof Rs. 13.28 crore. The tool room has sincebeen registered as a Society under theSocieties Registration Act. Land and buildingfor this scheme has been provided by the StateGovernment of Assam. Training activities of thecentre have been started for the time being atSISI, Guwahati campus. During the year, thetool room has conducted 09 short term coursesin which 62 trainees were trained. The tool roomis also conducting a two-year Machinist coursein which 20 trainees are enrolled.42.0 CONFERENCE OF MINI-STERS (SSI/KVI/COIR) OFSTATES/UTSA conference of Ministers (SSI/KVI/COIR)was organized on 25 th June 2004 at New Delhito review major schemes of the sector, particularlythose which are implemented at theState/UT level or those which require specialinitiatives on the part of the State/U.T. Governments.In addition, views and suggestions of theStates/UTs were sought to carve out a roadmapfor the successful implementation of theNational Common Minimum Programme of theGovernment, specifically for the small scaleindustries and agro and rural industriesincluding Khadi and village industries of thecountry and to make them more competitive andensure their growth and development.43.0 INDUSTRIAL MOTIVATIONCAMPAIGNS (IMC)SIDO conducts Industrial MotivationCampaigns (duration of 1 day or 2 days) toidentify and motivate traditional / non-traditionalentrepreneurs having potential for setting upsmall-scale industries so as and to lead themtowards self-employment. Upto Dec.04 about250 IMCs have been conducted benefited30,000 prospective entrepreneurs and about260 IMCs are expected to be conducted duringremaining months of the financial year forbenefiting about 30,000 entrepreneurs.44.0 BIOTECHNOLOGYAdvances in biotechnology have had anoverwhelming impact on the society.Biotechnology holds great promise in meetingthe needs of the growing population forinnovative medicines, higher productivity inagriculture and value addition includingnutritional enhancement and protection ofenvironment. Considering the importance ofthe sector from an industrial point of view,Government has recognized biotechnology asa thrust area. While initial efforts have beenmade by the Department of Biotechnology, nowthe Ministry of SSI has taken-up the task ofencouraging biotechnology in the SSI sector.Accordingly, a Biotechnology Cell has beencreated in the Ministry of SSI to deal with thematter for the development and promotion ofbiotechnology in the small scale sector. Todisseminate information on the use ofbiotechnology, a number of sensitizationprogrammes on biotechnology in various partsof the country are being organized incollaboration with the Department ofBiotechnology, Biotech Consortium IndiaLimited (BCIL), and various State Governmentagencies.38

During the year 2004-05, 20 one daysensitization programmes on Biotechnologyhave been proposed to be held at various partsof the country. Out of which four programmeshave already been conducted including a fivedays training programme on Hi-Tech BusinessOpportunities in Biotech Sector held atLudhiana during 20 – 24 th Sept. 2004. It is alsoproposed to organize two days seminar on IPRrelated issues on Biotechnology at Bangaloreon January, 2005.To assist SSI entrepreneurs in gettingbasic understanding of the technologies,products and processes, a set of projectprofiles have been prepared in coordinationwith the Department of Biotechnology andBiotech Consortium India Limited BCIL), NewDelhi.45.0 MARKETING ASSISTANCEAND EXPORT PROMOTION45.1 Participation in the Overseas TradeFairsThe Office of the DevelopmentCommissioner (SSI) has participated in PoznanFashion Week (Poland) (Sept. 7–9, 2004), 69 thThessaloniki Fair, Greece (Sept. 11 –19, 2004),Aapex Show, Las Vegas (USA) (Nov. 2 – 5,2004) and Bahrain Fair, Manama (Bahrain)(Nov. 28– Dec. 7, 2004) and exhibits of 84 SSIunits were displayed. Exhibits from 100 SSIunits are anticipated to be displayed in theremaining five International Trade Fairs underSIDO stall during the current financial year.45.2 Training Programme on Packagingfor ExportsOne training programme was organizedby SISI, Goa in which 75 SSIs participated. 23programmes have been lined up with SISIs andthese programmes will be conducted inassociation with Indian Institute of Packagingduring the current financial year.45.3 SSI-Marketing DevelopmentAssistance SchemeRs. 4.12 lakhs have been reimbursed to28 SSI units for adoption of Bar Code Certificatefrom EAN India and Rs. 1.00 lakh released toFISME, New Delhi for printing of 2000 copiesof the study “WTO Negotiations and SSIs” byFISME & RIS. More than 70 SSI units areanticipated to avail the financial assistance foradoption of Bar Code Certificate during thecurrent financial year.45.4 Index of Industrial Production (IIP)for SSI sectorThe objective of IIP is to estimate thegrowth in production of SSI sector. It is compiledon a quarterly basis. At present this division isworking out the growth in production throughIndex of Industrial Production (IIP) with the baseyear 1970. The IIP is constructed based on abasket of 356 items contributing 77% ofproduction as per the First Census. This datais collected from2400 units having an annualproduction of Rs. one crore.45.5 As a follow up of the Third Census it hasbeen decided to change the base year from39

1970 to 2001-02 and also to select a new basketso as to make the IIP more representative.Accordingly, at All India level, a basket of 468items covering 24,749 industrial units have beenselected. These items contribute about 75.5%of the production of the SSI Sector.1994 with the objective to provide employmentopportunities in rural as well as urban areasthrough setting up of micro enterprise, andproper training for sharpening the technical skilland encouraging the managerial talent inentrepreneurs.45.6 Directorate of Industries of all the States/UTs have been requested for collecting baseyear production data and subsequent monthlydata from April 1, 2002 onwards. After receivingthe data with the new base year, the revisedindex with base year 2001-02 will be released.45.7 Updation of Frame and analysis ofRegistration DataThe registration of the SSI units is doneby the State/UT Directorates at DIC level. Theregistration records contain valuable informationand are analyzed to estimate growth of smallscalesector in terms of number of units andemployment at various levels like states/districtsand industrial groups.The frame is the database of the unitsregistered with the State Directorate ofIndustries (DIs). The frame up to March 31,2001 has been updated. For further updationof the frame after Third Census, the Director ofIndustries have been asked to remove thoseunits found closed in the Third Census and alsoto send frame updated up to March 31, 2005.46.0 SEPTI TIRUVALLAThe Small Entrepreneurs Promotion andTraining Institute Tiruvalla was setup duringSEPTI Tiruvalla was set up as a full timetraining institute to train 1000 entrepreneursevery year. At present all the trainingprogrammes are of 2 months EDPs and coursesare scheduled on a quarterly pattern. As a resultof good training an average of 25 % of thetrainees of this institute succeeded in settingup their own industry, some of the trainees aregetting jobs in foreign countries and most ofthem are getting jobs in other parts of thecountry. During 2004-05, SEPTI Tiruvalla hasearned an amount of Rs. 10.14 lakh throughEDPs.47.0 SEPTI ETTUMANURKnown earlier as Production CentreEttumanur, was converted into SmallEntrepreneur Promotion and Training Institutein 2000 for imparting training to artisans/entrepreneurs of Kerala in various disciplinesas per the need of the area. The Instituteconstantly identified and reviewed the newemerging trades having quick employmentpotential, developed appropriate curriculafocusing on end job profiles. The coursescomprises of artisan trade, management, ITsoftware, computer hardware and otheremerging technologies including bio-technologyetc. During 2004-05 this institute has earnedRs. 24.69 lakh through different.EDPs.40

Chapter IIICREDIT AND FISCAL CONCESSIONTO SSI SECTOR1.0 The credit is one of the critical inputs forthe promotion and development of small scaleindustries. To ensure timely and adequate creditto the SSI sector the Government isimplementing several schemes. The existingcomponents of the credit policy for small scaleindustries are stated below:1.1 Priority Sector Lending : Credit to thesmall scale sector is ensured as part of thepriority sector lending by banks.provided by State Financial Corporations(SFCs), Scheduled Commercial Banks andSmall Industries Development Corporations(SIDCs). Credit in direct/ indirect forms is alsoundertaken to some extent by NABARD, NSICetc.Measures for improving flow of credit toSSI sector through announcement made inUnion Budget and comprehensive policypackage are as under:1.2 Institutional Arrangement : SmallIndustries Development Bank of India (SIDBI)is the apex refinance bank. Term loans are1.3 Collateral security dispensed with forloans up to Rs. 5 lakh: Exemption limit fordispensing with requirements of collateralFlow of Credit to SSI Sector from all Public Sector Banks since 2000As at the end of March(Amount Rs. crore)2000 2001 2002 2003 2004 (P)Net Bank Credit 2,92,943 3,40,888 3,96,954 4,77,899 5,58,608Credit to SSI 45,788 48,445 49,743 52,988 58,277No. of SSI Accounts 22.72 22.80 22.23 16. 95 16.33(in lakh)SSI Credit as 15.6 14.2 12.5 11.1 10.1percentage ofNet Bank Credit(P): Provisional41

Status of Credit to Tiny Sector since 2000(Amount Rs Crore)At the end At the end At the end At the end At the endof March, of March of March, of March, of March,2000 2001 2002 2003 2004 (P)Net bank credit to 24,742 26,019 27,030 26,937 30,826tiny sectorTiny credit as 54.0 53.7 54.3 50.8 52.9percentage of netSSI credit(P): Provisionalsecurities has been raised to Rs. 5 lakh for bothtiny and SSI units. Further, the RBI has advisedthe banks that they may, on the basis of goodtrack record and financial position of the units,increase the limit of dispensation of collateralrequirement for loans upto Rs.25 lakh.1.4 Composite Loan Scheme limitenhanced to Rs. 50 lakh : The existingComposite Loan Scheme of banks helps smallborrowers by providing working capital and termloans through a single window. To promotecredit flow to small borrowers, the compositeloan limit has been increased from Rs.50 lakhto Rs.1 crore.1.5 NEF Scheme to cover projects up toRs. 50 lakh : As announced in theComprehensive Policy Package for SSIs, theproject cost ceiling under the National EquityFund (NEF) Scheme has been enhanced fromRs.25 lakh to Rs.50 lakh. The extent of softloan assistance is 25% of the project costsubject to a maximum of Rs. 10 lakh perproject.1.6 Specialized SSI bank branch in eachdistrict and SSI clusters : Banks have beenadvised to open at least one Specialized SSIbranch in each district. Further, banks havebeen permitted to categorise their general bankbranches having 60% or more of their advancesto SSI sector as Specialized SSI branches inorder to provide better service to this sector asa whole. As at the end of March, 2004, 497Specialized SSI Branches have beenoperationalised.1.7 Interest rate : As per the announcementmade by the Hon’ble Finance Minister in theUnion Budget 2003-04, Indian Banks’Association (IBA) has advised the banks toadopt the interest rate band of 2% above andbelow their prime lending rates (PLRs) forsecured advances.1.8 Small and Medium Enterprise (SME)Fund : A Small and Medium Enterprises (SME)Fund of Rs.10,000 crore has been set up underSIDBI as per the announcements made by thethen Hon’ble Finance Minister on 9 th January,42

2004. The SME Fund would, inter-alia, addressthe problem of inadequacy of financialresources at competitive rates for the smallscale sector. The fund has been madeoperational with effect from April 1, 2004.1.9 Laghu Udyami Credit Cards : LaghuUdyami Credit Card (LUCC) scheme has beenliberalized by enhancing the credit limit fromRs.2 lakh to Rs.10 lakh, for borrowers who havea satisfactory track record.2.0 CREDIT GUARANTEE FUNDSCHEME FOR SMALLINDUSTRIESextended by eligible lending institutions to newand existing SSI units/ Small Scale Service andBusiness (Industry related) Enterprises(SSSBEs) including Information Technologyand Software Industry upto Rs. 25 lakh perborrowing unit. The guarantee cover would beupto 75% of the credit subject to maximumguarantee limit of Rs. 18.75 lakh. The lendinginstitutions availing guarantee from the Trusthave to pay one time guarantee fee of 2.5% ofthe credit facility (comprising of term loan and/or working capital) sanctioned by the lendinginstitution to the borrower and annual servicefee of 1% per annum on the outstanding loanon 31 st March of each year.The Government introduced the CreditGuarantee Fund Scheme for Small Industriesin May, 2000 with the objective of makingavailable credit to SSI units, particularly tinyunits, for loans up to Rs. 10 lakh withoutcollateral/ third party guarantees. The schemeis being operated by the Credit Guarantee FundTrust for Small Industries (CGTSI) set up jointlyby the Government of India and SIDBI. The loanlimit under the scheme, which was Rs. 10 lakhper borrower, has been enhanced to Rs. 25 lakhper borrower in terms of Comprehensive PolicyPackage on SSI announced by the Hon’blePrime Minister on 30 th August, 2000, when thescheme was formally launched. Necessarymodifications have been carried out in theindenture of the Trust to enable the CGTSI toguarantee loans up to Rs. 25 lakh.2.1 The scheme covers collateral free creditfacility (term loan and/ or working capital)2.2 The Credit Guarantee Scheme wasinitially approved for one year with a corpus ofRs. 125 crore contributed by the Governmentof India and SIDBI in the ratio of 4: 1.Subsequently, the Government decided tocontinue the scheme beyond one year. Thecorpus of CGTSI has been enhanced to Rs.931.55 crore with the contribution of Rs. 745.24crore from the GoI and Rs. 186.31 crore fromSIDBI.2.3 As on December, 2004, 50 eligibleinstitutions comprising 27 Public Sector Banks,12 Private Sector Banks, 8 Regional RuralBanks (RRBs), National Small IndustriesCorporation (NSIC), North EasternDevelopment Finance Corporation (NEDFi) andSmall Industries Development Bank of India(SIDBI) have become Member LendingInstitutions (MLIs) of CGTSI for participatingunder the Credit Guarantee Scheme. As43

limit of Rs. 100 lakh is continuing in the currentfiscal given as under:When Modvat benefit is not availedValue of clearances Rate of Duty0-100 lakh NilAbove 100 lakh Normal rate of dutyWhen Modvat benefit is availedValue of clearances Rate of Duty0-100 lakh Sixty per cent ofnormal dutyAbove 100 lakh Normal rate of dutyregards progress of implementation, 19803proposals were approved for guarantee coverfor aggregate credit of Rs. 395.50 crore.3.0 FISCAL CONCESSIONS TOSSI SECTOR3.1 General SSI Exemption Scheme :Consequent upon the announcement ofComprehensive Policy Package for SSI Sectorby the Prime Minister on 30 th August,2000, fullexcise exemption up to turnover of Rs. 100 lakhper annum has been provided to SSI Sectorwith effect from 1 st September, 2000. Under theGeneral Excise Exemption Scheme, unitshaving turnover of less than Rs.3 crore, areeligible for the excise exemption. The exemption3.2 Income Tax benefit to new SSI units :Under Section 80-IB, the Small Scale unitcommencing production between 1 st April, 1995and 31 st March, 2000 were allowed a deductionof 25% of the profits (30% for companies) for aperiod of 10 years. In the wake of liberalizationthe SSI Sector needs fiscal support so that itcan withstand competition. Therefore, theFinance Ministry amended Section 80-IB inUnion Budget 2000-01 to provide continuousconcessions to SSI units commencingproduction even after 31 st March, 2000. Unitsset-up on or before 31-3-2002 shall be eligiblefor the benefit.Shaping a sole in mechanised process44

4.0 NEW FISCAL INCENTIVESANNOUNCED IN THEBUDGET 2004-054.1 Direct Taxes : In order to promote agroprocessingindustries, 100 per cent deductionof profits for 5 years and 25 per cent of profitsfor the next 5 years will be allowed in the caseof new agro-processing industries set up toprocess, preserve and package fruits andvegetables.4.2 Excise Duty : (i) General SSI ExciseExemption Scheme has been extended towatches, upto MRP of Rs. 500; (i) excise dutyon steel has been enhanced from 8 per cent to12 per cent. Excise duty on Hand tools such asspades, shovels, sickles etc has beenexempted; (ii) in order to protect matches madein the non-mechanised sector, excise duty onmatches made in the mechanized/semimechanisedsector has been increased from 8per cent (without Cenvat credit) to 16 per cent(with Cenvat credit); (iii) mandatory Cenvat dutyhas been withdrawn from Handloom andPowerloom sectors; (iv) excise duty on gasstoves of Retail Sale Price (RSP) not exceedingRs. 2000 per unit has been reduced from 16%to 8%; and (v) RSP limit for availing excise dutyexemption on footwear has been raised fromRs.125 to Rs. 250 per pair.4.3 Customs Duties : Customs duty hasbeen reduced on non-alloy steel from 15 percent to 10 per cent. Peak rate of customs dutyon alloy steel, copper, lead, zinc and basemetals has been reduced to 15 per cent.5.0 CREDIT LINKED CAPITALSUBSIDY SCHEME (CLCSS)A scheme on Credit Linked CapitalSubsidy (CLCSS) was launched in the year2000. The purpose of the scheme is to facilitatetechnology upgradation of SSI units in thespecified products/sub sectors by providing12% capital subsidy for induction of proventechnologies approved under the Scheme.5.1 Technology Upgradation under thescheme would mean a significant step up fromthe present technology level to a substantiallyhigher one involving improved productivity and/or improvement in the quality of products and /or improved environmental conditions includingwork involvement for the unit. This will alsoinclude installation of improved packagingtechniques, anti pollution measures, energyconservation machinery, on line quality controlequipments and in house testing facilities.5.2 Thirty nine sub sectors have beenapproved under the scheme eligible forassistance which comprises nine sub-sectors/products included during 2003-04 and anothernine till December during 2004-05. The wellestablishedand improved technologies for eachsub-sector have been identified for whichsubsidy is available. The scope of scheme isgradually being widened by adding new subsectorsand new technologies under thescheme for assistance. Nine sub-sectors andeleven new technologies have been includedunder the scheme during 2004-05 tillDecember.45

5.3 At present, the following products/sub –sectors have been covered under the Scheme:-a) During 2002-03 : (i) Leather and LeatherProducts including Footwear and Garments; (ii)Food processing (including Ice Creammanufacturing); (iii) Information Technology(Hardware); (iv) drugs and Pharmaceuticals; (v)Auto Parts and Components; (vi) ElectronicIndustry particularly relating to design andmeasuring; (vii) Glass and Ceramic Itemsincluding Tiles; (viii) Dyes and Intermediates;(ix) Toys; (x) Rubber Processing includingCycle/ Rickshaw Tyres; (xi) Forging & HandTools; (xii) Bicycle Parts; (xiii) Foundries–Steeland Cast Iron; (xiv) Dimensional Stone Industry(excluding quarrying and mining); (xv) Industrybased on Medicinal and Aromatic plants; (xvi)Combustion Devices / appliances; (xvii) GoldPlating and Jewellery; (xviii) Common EffluentTreatment Plant; (xix) Bio tech Industry; (xx)Plastic Moulded/ Extruded Products and Parts/Components; and (xxi) Corrugated Boxes.b) During 2003-04: (xxii) GeneralEngineering Works; (xxiii) Poultry Hatchery &Cattle Feed Industry; (xxiv) Fans & MotorsIndustry; (xxv) Transformer/Coils/Chokesincluding solenoid coils; (xxvi) Mineral FilledSheathed Heating Element; (xxvii) Wires &Cable Industry; (xxviii) General Light Service(GLS); (xxix) Steel Furniture; and (xxx) Toys;c) During 2004-05 (till December) : (xxxi)Non-Ferrous Foundry; (xxxii) Sport Goods;(xxxiii) Cosmetics; (xxxiv) ReadymadeGarments; (xxxv) Wooden Furniture; (xxxvi)Mineral Water Bottle; (xxxvii) Paints; (xxxviii)Agricultural Implements and Post HarvestEquipments; and (xxxix) Beneficiation ofGraphite and Phosphate.Financial performance year wise under CreditLinked Capital Subsidy Scheme (CLCSS)Year No. of Subsidy disbursedunits to SSI units(Rs. Lakh)2001-02 9 21.362002-03 47 96.802003-04 150 374.892004-05 289 785.00(upto Dec., 04)Total 495 1278.055.4 Small Industries Development Bank ofIndia (SIDBI) and National Bank for Agricultureand Rural Development (NABARD) act as theNodal Agencies which in turn operate througheligible Scheduled Commercial Banks, eligibleState Financial Corporations, eligible CooperativeBanks (other than Urban CooperativeBanks), eligible Regional Rural Banks, NationalSmall Industries Corp. (NSIC) and NorthEastern Development Financial Institution formaking available subsidy to small scale units.5.5 The scheme is monitored by Governingand Technology Approval Board (GTAB). TheSecretary (SSI & ARI) is the Chairperson of theBoard and the Development Commissioner(SSI) is its Member Secretary. The GTAB wouldalso periodically review the functioning of theScheme. There is a Technical Sub-Committeeunder GTAB to consider inclusion of new subsectors/productsand Well-Established andImproved Technologies under the Scheme.46

6.0 MICRO FINANCE PRO-GRAMMEThe Government has launched arevised Scheme of Micro Finance Programmein 2003-04. The scheme has been tied up withthe existing programme of SIDBI, which isunder operation since January, 1999, by wayof contributing towards security depositsrequired from the MFIs/NGOs to get loan fromSIDBI. The salient features of the scheme areas under:-! Arranging Fixed Deposits for MFIs/NGOs : The Government of India will providefunds for Micro-Finance Programme to SIDBI,which may be called ‘Portfolio Risk Fund’. Thisfund would be used for security depositrequirement of the loan amount from the MFIs/NGOs and to meet the cost of interest loss. Atpresent SIDBI takes fixed deposit equal to 10%of the loan amount. The share of MFIs/NGOswould be 2.5% of the loan amount (i.e. 25% ofsecurity deposit) and balance 7.5% (i.e. 75%of security deposit) would be adjusted from thefunds provided by the Government of India.! Training and Studies on Micro-FinanceProgramme.! Institution Building for ‘Intermediaries’for identification of viable projects: Anamount of Rs. 25 lakh was released towards‘Portfolio Risk Fund’, which has been fullyutilized by SIDBI. The funds under PRF areutilized for extending loans in the hithertounderserved States like North Eastern Statesincluding Sikkim, Bihar, Jharkhand, WestBengal, Orissa, Madhya Pradesh, Chattisgarh,Uttar Pradesh, Jammu & Kashmir, Rajasthanand Uttaranchal. During the current FY 2004-05, an amount of Rs. 1.00 crore has beenreleased towards ‘Portfolio Risk Fund’, therebyenhancing the PRF to Rs. 1.25 crore.7.0 SICKNESS IN SSI SECTOR! Sickness was identified through the latestdefinition of RBI given by Kohli committeeand incipient sickness was identified interms of continuous decline in grossoutput.! Sickness in the total SSI sector was ofthe order of 1%, whereas in the registeredand unregistered SSI sectors it was 3.38% and 0.64 % respectively.! The maximum number of sick units waslocated in West Bengal, Kerala,Maharashtra, Karnataka and AndhraPradesh. About 59.53 % of the sick unitswere located in these five States.! Out of the units having loan outstandingwith institutional sources like banks andfinancial institutions, sickness was about47

19.6 % in the registered SSI sector and16.61 % in the case of unregistered SSIsector. In the total SSI sector, thispercentage was 17.8.! Incipient sickness identified in terms ofcontinuous decline in gross output was11.5 % in the registered SSI sector and6.48 % in the unregistered SSI sector.In the total SSI sector, this percentagewas 7.4.! Combining the three yardsticks used tomeasure sickness, viz., (a) delay inrepayment of loan over one year, (b)decline in net worth by 50 %, and (c)decline in output in last three years, about13.98 % of the units in the registered SSIsector were identified to be either sick orincipient sick, while this percentage wasonly 6.89 in the case of unregistered units.In the total SSI sector, this percentagewas 7.82.! The States of Kerala, Tamil Nadu, AndhraPradesh, Karnataka, and Maharashtrahad maximum number of sick/ incipientlysick SSI units. These five States togetheraccounted for 54.28 % of the sick/incipiently sick SSI units in the country.! ‘Lack of demand’ and ‘Shortage ofworking capital’ were the main reasonsfor sickness/ incipient sickness in boththe registered and unregistered SSIsectors.Various Reasons for Sickness/Incipient SicknessReason for sickness/ Proportion of sick/ incipient sick units *incipient sickness Total Regd. Unregd.SSI Sector SSI sector SSI sector1. Lack of demand 66 % 58 % 69 %2. Shortage of working capital 46 % 57 % 43 %3. Non-availability of raw material 12 % 12 % 12 %4. Power shortage 13 % 17 % 12 %5. Labour problems 5 % 6 % 4 %6. Marketing problems 36 % 37 % 36 %7. Equipment problems 11 % 9 % 12 %8. Management problems 4 % 5 % 3 %48

Chapter IVNATIONAL SMALL INDUSTRIESCORPORATION (NSIC) LTD.1.0 NSIC, an ISO 9001:2000 company sinceMay, 2003 has been striving to fulfill its missionof promoting, aiding and fostering the growthof small scale industries and industry relatedsmall scale service / business enterprises since1955. Over a period of five decades of transition,growth and development, NSIC has proved itsstrength within the country and abroad byrendering marketing, technology and creditsupport to small industries as well as bystrengthening linkages with large and mediumenterprises and exports of projects and productsfrom small scale enterprises. NSIC is the onlyISO 9001 certified facilitator in the country andamongst a select few globally.2.0 ORGANIZATIONAL SET-UPThe Corporation is manned by a team ofprofessionals at different levels of functioning.NSIC delivers its assistance through:! 6 Zonal offices located at Mumbai,Chennai, Kolkata, Hyderabad, Delhi andNoida.! 26 Branch Offices and 15 Sub-Offices forcluster development dispersed indifferent states.! 5 Technical Service Centres located atChennai, Howrah, Hyderabad, Okhla andRajkot.! 3 Technical Service Extension Centreslocated at Aligarh, Rajpura and Guwahati.! 2 Offices outside India–one at Dubai(UAE) and the other at Johannesburg(South Africa).! 2 Software Technology Parks–one atOkhla, New Delhi and the other atChennai.3.0 SCHEMES FOR ASSISTANCETO SSIs3.1 For Marketing! Consortia Marketing & Brand BuildingFormation of consortia of smallenterprises in specific product groups isencouraged to enable the small enterprises tobe competitive and to integrate their capacities.The Corporation explores markets and securesbulk orders, which are farmed out to small unitsin accordance with their production capacity.Testing facilities are also being provided to49

enable the units to improve and maintain thequality of their products.! Government Stores PurchaseProgrammeThe Government gives emphasis onpurchase of various items from small-scaleindustries. Preferential purchase policy hasbeen introduced and the Corporation has beendesignated as the “Nodal Agency” to promotemarketing of small industry products to theGovernment. The Corporation is continuouslytrying to enlarge the number of unitsparticipating in the Government StoresPurchase Programme. The NSIC registeredunits have an added advantage, they are notonly recognized at par with the units directlyregistered with DGS&D but they also need nofurther registration with other governmentdepartments as well as Public SectorUndertakings. Further the enlisted units arealso not required to pay any earnest money orsecurity deposits for participating in tendersunder this scheme. The data pertaining to theGovernment Purchase registered units hasbeen fully computerized and a directory of unitsenlisted under the programme is publishedperiodically.! Raw Material AssistanceMaking available, the right type of rawmaterial at an appropriate price in time, not onlyenhances the competitive capacity of small unitsbut also arrests sickness of the units. Keepingthis in view, the Corporation through itsdistribution system has been supplementing theavailability of raw materials to a large numberof small industries, all over the country.! Special Arrangement with NationalAluminium Company Limited(NALCO)In order to facilitate the SSI units inprocurement of Aluminium at a competitiveprice, the Corporation has entered into anMemorandum of Understanding with NationalAluminium Company. Under this arrangement,the Corporation is getting volume basedquantity and other discounts, on all India basisand a part of the same is passed on to the smallscale units, to reduce their cost of raw materialsand make the finished products morecompetitively priced.! Allocation of SteelAs a new initiative, NSIC is pursuing withMinistry of Steel for allocation of Iron and Steelfor distribution to SSI units in selected States.! ExportThe Corporation continued its efforts forfacilitating exports from small industries byundertaking the following measures:- Identifying international market opportunitiesfor the products manufactured inthe small scale units.- Show casing the SSI products effectivelyat different international fora andexhibitions.50

- Counselling on market intelligence andproviding technology upgradationsupport.! Trade Fairs and ExhibitionsTo showcase the competencies of IndianSSIs and to capture market opportunities, NSICparticipates in select international and nationalexhibitions & trade fairs. NSIC facilitates theparticipation of small scale units in these fairs.! Techmart India 2004 (14-27 November,2004)Shri Mahabir Prasad, Hon’ble Minister for Small Scale Industriesand Agro & Rural Industries inaugurating Techmart India’ 2004.Accompanied by Shri Anupam Dasgupta, Secretary, Ministryof SSI & A&RI and Shri Rajiv Bhatnagar, CMD, NSIC and SmtStuti N. Kacker, Joint Secretary, Ministry of SSINSIC organized Techmart India’2004, the12 th International Technology Fair coincidingwith India International Trade Fair at PragatiMaidan, New Delhi. The event was sponsoredby the Ministry of SSI, Government of India.Techmart India’2004 was inaugurated byHon’ble Minister for Small Scale Industries andAgro & Rural Industries. Secretary, Ministry ofSSI & ARI, Government of India was alsopresent during the inaugural function.12 th series of Techmart India’2004,coinciding with “Golden Jubilee Year” of NSICreceived tremendous response form trade andindustry. More than 236 units including clusterunits participated in Techmart India’2004.Refractories, Testing Machine, Furnaces, AutoParts, R.O. System and Water Purifier,Communication system, Public AddressSystems, Hand Tools, Corrugated RoofingSheet, Switches & other Electrical Items,Genset & Grass Cutting Machine etc.Foreign delegates from Sri Lanka, Haiti,South Africa, Rwanda, Zambia, Algeria, Congo,Comoros, Malawi, Brazil, Syria, Qatar, SaudiArabia, China, Dubai, Uganda, Nigeria andMadagascar visited the Techmart.NSIC was awarded the highest award bythe India Trade Promotion Organization for“EXCELLENCE IN SPECIAL DISPLAY” inIITF’2004.Some of the items displayed were PowderCoating Machine, Automatic Filling &Packaging Machine, Tool Room Machine,Pumps & Motors, Abrasive, Decoiler,! International Exhibitions- NSIC participated in Sources 2004“Giftware Exhibition” at New York, USA51

from 15 - 18 May 2004 wherein 8 smallscale units from Moradabad, Noida & UPdisplayed their products. A large numberof representatives from prominent stores,buying houses, importers, wholesalersand retailers visited the stalls and hadbusiness discussions with theparticipating small scale units.Subsequent to the exhibition, follow-upmeetings with important buyers wereorganized.- NSIC participated in South AfricanInternational Trade Exhibition(SAITEX), 2004 from 5-8 October 2004.The products displayed in NSIC enclavewere Nuts & Bolts, Fasteners, DomesticElectrical appliances, DisposableSyringes & Needles, Bicycle & Bicycleparts, Hand Tools, Cosmetic items, BodyCare products, Compressed Non-Asbestos / Asbestos fiber Jointing GasketSheet etc. More than 200 businessvisitors from South Africa, Botswana,Zambia, Mozambique and Nigeria visitedNSIC’s pavilion in SAITEX.December 12 – 16, 2004. Six small scaleunits participated under the NSIC bannerin an area of 57 sq. mt.! Buyer Seller MeetsThe buyer seller meets, aim at bringingbulk buyers and SSI suppliers on a commonplatform, in order to facilitate vendordevelopment. These buyer seller meets alsosensitize the small entrepreneurs to therequirements of bulk buyers, in respect ofquality, manufacturing practices, productsspecifications, delivery schedules and pricing.! Display centre for SSI productsTo assist the small-scale units in marketing theirproducts, NSIC has established a state of theart Display Centre at Okhla, New Delhi. ThisDisplay Centre will exhibit products in differentsector manufactured by SSIs. The DisplayCentre has a special enclave for SSI productsfrom the North Eastern Region.3.2 For Technology Upgration :- NSIC participated in the CPHI 2004 – aninternational exhibition on pharmaceutical& allied industries at Brussels,Belgium from 7-9 December 2004,Fourteen bulk drug manufacturersparticipated in NSIC display, whichcovered an area of 240 sq. mt.- NSIC participated in InternationalAutumn Trade Fair in Dubai from! NSIC - Technical Service Centres /Extension Service CentresNSIC - Technical Services Centres /Extension Centres provide valuable technologyand common facility support to SSIs. Thissupport is in the form of conventional & hi-techmachining facilities, specialized testing facilitiesand other quality upgradation services. Servicesin the area of energy/ environment audit,52

consultancy for ISO 9000 and preparation ofproject exports for SSIs are also provided.NSIC-TSCs at New Delhi, Howrah,Rajkot, Chennai and Hyderabad enjoy thestatus of ‘In House R&D Centres’ of Departmentof Scientific and Industrial Research (Ministryof Science & Technology).In order to cater to the needs of SSIs toface the challenges arising due to recenteconomic & policy changes like lifting of quantityrestrictions & globalization, the TechnicalCentres have taken the challenge head on andstarted several hi – tech training programmesin the area of CAD/CAM, hydraulic andpneumatic controls etc.! Software Technology ParkRecognizing the importance ofinformation technology in the globalizeeconomy, NSIC has established two SoftwareTechnology Parks (STP) – one at New Delhi in1995 and second at Chennai in 2001. Thesetwo parks are established under the SoftwareTechnology Parks of India (STPI) Scheme ofMinistry of Information Technology.The STPs provide infrastructural facilitiesand create conducive business environment forthe software exporters. NSIC has createdrequisite infrastructure in terms of fully built upworking space, high speed data communicationfacilities, business centres, round the clockpower backup and other logistics support to thesmall scale software exporters. In addition tothe infrastructural facilities, NSIC also providesvalue addition services in terms of making theproject reports, liaisoning with the authoritiesof the project, facilitating custom bondingformalities etc. The software enterprises canstart the business operations with minimumlead-time. Since, the developed infrastructureis readily available, they also save capitalexpenditure on creation of such facilities.In NSIC-STP at Okhla, 28 software exportunits have utilized the facilities since itsinception in 1995. Around 10 enterprises grewbig and vacated the space. At present, thereare 14 units operating in the STP. Chennai STPhouses 12 software export units.! Technology Transfer CentreTechnology Transfer Centre at Okhla, Delhidisseminates technological information relevantto the needs of SSIs, facilitates enterprise toenterprise relationships, assists in upgradationof technology and encourages industry –institutional linkages.! Energy AuditNSIC - Technical Service Centre, Rajkothas been approved as “energy auditor” byPetroleum Conservation Research Association,Government of Gujarat, Maharashtra EnergyDevelopment Agency and Gujarat EnergyDevelopment Agency.The Centre has established a full-fledgedEnvironmental Laboratory, which has been53

ecognized by the Gujarat Pollution ControlBoard has recognized this Center as aSCHEDULE – I environmental auditor.NTSC, Chennai has also been registeredwith Tamil Nadu State Electricity Board as anapproved auditor to conduct energy audit forhigh-tension industrial and commercialestablishments in Tamil Nadu.! Technology Business Incubators! Tie Up with BanksNSIC is making tie up arrangement withcommercial banks in order to facilitate sanctionof credit limits from these banks to small scaleindustries. Under this arrangement, proposalsof small industries for their credit needs willbe forwarded by NSIC to these banks forsanction. Working arrangements, in thisregards, have been finalized with United Bankof India.Emerging technological and knowledgebasedentrepreneurial ideas have to be fosteredand developed in a supportive environmentbefore they become attractive for commercialinvestments. Hence, the need arises forincubation centers. A scheme of the Corporationfor setting up an Incubation Centre at Okhla hasbeen approved by the administrative Ministryand would become operational soon.NSIC in association with Department ofScience & Technology is also in the processof setting up a Science & Technology Incubatorat NTSC, Rajkot.! Performance and Credit Rating ForSSIsThe fast changing global economicscenario has thrown up many opportunities andchallenges to the small scale industries inIndia. While, on the one hand, many opportunitieshave opened up for the small scale sectorto enhance productivity and look for newmarkets in other countries, it has also put anobligation on them to upgrade their competencein terms of technology, management & financialstrength to successfully meet the globalcompetition.3.3 Credit for SSIsNSIC facilitates credit support fortechnology upgradation programmes for smallscale industries through its equipment financingschemes. In addition to equipment financing,NSIC also provides limited financing support formarketing activities i.e. raw materialprocurement, exports, internal marketing andbill discounting.Accordingly, a need was felt forintroducing a Performance and Credit RatingScheme for Small Scale Industries. It isexpected that the Scheme would facilitateadequate credit flow to SSI sector at areasonable cost. Besides this, credit ratingwould also infuse a sense of confidenceamongst the buyers, for taking a decision onsourcing material from the enterprises.54

3.4 Infomediary ServicesKeeping in mind the information needsof small industries, NSIC has conceptualizedInfomediary Services – a one-stop, one-windowshop that provides information on business,technology and finance.Infomediary Services are primarilydelivered through NSIC website, which is beingconverted to a portal. Member companies havespecial password protected access, to valueadded information, on trade statistics, globaltrade leads, investment opportunities, tenderinformation and technology sources. Regulare-mail alerts are sent to registered membersand visitors on new initiatives of NSIC. Allmembers are given listing, in the sector basedonline manufacturers directory, as well as facilityto create their homepage on NSIC site.Premium members enjoy special privileges,such as automatic tender alerts on e-mail, fortheir chosen areas of products and services.Banner display on NSIC site and discounts inall other services are also offered to themembers. The overall objective of InfomediaryServices is to create, sustain and serve onlinethe community of small entrepreneurs toshowcase their competence on the web. Thefeatures and services are being upgraded andmany new features, such as expert chats, virtualexhibition, auction center and discussion forumare being introduced in the new NSIC portal.3.5 Mentoring and Advisory ServicesUnbalanced management skills are oftena problem in small enterprises. NSIC’smentoring and advisory services are aimed ateffectively addressing this impediment togrowth. It offers mentor and pupil relationshipservices, in which the mentor, is a person withwide experience in running his own businessand who volunteers his / her services toindividuals or a group of units- the pupils. Onthe other hand, an advisor is a senior professional,generally retired and a specialist in aspecific area who assists identified enterprisesin tackling specific technical or business relatedproblems. Mentors and advisors providenecessary professional and moral support in theearly lifecycle of an enterprise or to existing unitscritical operational problems.4.0 INTERNATIONAL COOPE-RATIONUnder its International CooperationProgramme, NSIC facilitates enterprise-toenterprisecooperation and sharing of bestpractices and experiences with otherdeveloping countries.! Commonwealth India Small BusinessCompetitiveness DevelopmentProgramme (15-19 November, 2004)National Small Industries Corporation, incollaboration with the CommonwealthSecretariat, London (COMSEC) organized apan-Commonwealth programme on SmallBusiness Competitiveness Development. Theprogramme was held in New Delhi from 15 –19 November 2004. Hon’ble Union Minister forSSI & ARI inaugurated the programme. 35senior policy makers and practitionersrepresenting over 31 member States from theCommonwealth attended this programme.55

Shri Mahabir Prasad, Hon’ble Minister for Small Scale Industries and Agro & Rural Industries, Shri AnupamDasgupta, Secretary, Ministry of SSI & A&RI and Shri Rajiv Bhatnagar, CMD, NSIC at the inaugural session ofCommonwealth-India Small Business Competitiveness Development Programme at New DelhiThe objective of the programme was toshowcase India’s achievements in the area ofsmall business development as well as shareexperiences & lessons learnt from rest of theCommonwealth. The programme focused atbuilding and developing institutional capacity oncompetitive small business policies andstrategies for Commonwealth developingStates. This was done through a combinationof best practices, case studies and field visits.The program also provided an opportunity forpolicy makers and practitioners to network.! Setting Up Of Vocational TrainingCentre at Jakarta, Indonesia UnderITEC ProgrammeAn agreement for setting up of VocationalTraining Centre for construction sector atJakarta, Indonesia on turnkey basis was signedbetween NSIC and the Ministry of ExternalAffairs, Govt. of India. The total value of theproject is Rs.308.70 lakh. The project is underexecution. Plant and equipments for the Centrehave already been commissioned.The programme was divided into eightworking sessions. Each session had speakersfrom India and from COMSEC. Group work wasalso kept on each day, where participantsdeliberated on various industries related issuesconcerning India and Commonwealth memberStates. The programme evaluation report,recently submitted by the independent evaluatorMr. N. Vittal, highlighted that the event achievedall its major objectives and fulfilled theparticipant’s expectations.5.0 NORTH EASTERN REGIONNSIC has a network of offices in NER.This includes two-branch offices at Guwahati(Assam) and Imphal (Manipur) and four subofficesat Dimapur (Nagaland), Itanagar(Arunachal Pradesh), Shillong (Meghalaya) andAgartala (Tripura).The efforts of NSIC in the North East Regionare aimed at spreading industrial culture in the56

egion. The training programmes increaseemployment opportunities of the trainees andenhance possibilities of self-employment. NSICalso organizes exhibitions with an exclusivefocus on NER to popularize the products of theregion.NSIC, in association with InternationalCentre for Advancement for ManufacturingTechnology (ICAMT) of UNIDO, is planning toimplement a three-year project for capacitybuilding of SSI units in Food Processing Sectorin the North Eastern Region.6.0 ASSISTANCE TO RATIONA-LIZED WORKERS UNDERTHE SCHEME OF COUN-SELLING, RE-TRAINING ANDRE-DEPLOYMENT OF EM-PLOYEES OF CPSUSA Scheme on Counseling, Re-trainingand Re-deployment (CRR) of employees ofCPSUs is run by the Government of India. Oneof the objectives of the Scheme is to suitablyequip the rationalized workers for redeployment,so that they continue to be usefuland productive. For this, the Govt. of Indiaarranges free training/re-training of theseworkers for wage employment and selfemployment,through nodal agencies forundertaking the training / retraining at differentplaces in the country. NSIC is the nodal agencyat Kolkata, Howrah, Hooghly, Durgapur,Ranchi, Burnpur, Bokaro and Dhanbad underthe CRR scheme.7.0 HUMAN RESOURCE DEVE-LOPMENT & TRAININGIn order to keep abreast with the changingtechnology and advancements in the variousfields, the Corporation strived to keep its humanresource current with the latest developmentsrelating to their functional areas. NSIC Corporateoffice and nine major branch offices are certifiedfor ISO 9001:2000. Continuous efforts are put into identify the training needs and evolve suitabletraining plans to fulfill the identified needs.Quality Management System ISO9001:2000 calls for continuous improvementand training being an important element of thestandard, the Corporation has taken all outefforts to train people on ISO 9001-2000awareness and Internal Quality Audit Training.In the present operational environment,computing skills are essential for every employeein the Corporation. An intensive training wasorganized for the administrative and supportpersonnel in application of computers.8.0 CITIZEN’S CHARTERNSIC is committed to efficient and promptservice on the basis of objectivity, transparencyand courtesy in dealing with citizens for thepromotion and growth of small-scale industries.To inculcate these values in the employees,NSIC has come out with a Citizen’s Charter.Officers have been assigned to work as a linkbetween the public and the Corporation andmembers of public can get in touch with theseofficers for guidance and help.57

Chapter VTRAINING ANDENTREPRENEURSHIP DEVELOPMENT1.0 Entrepreneurship Development andTraining is one of the key elements for thedevelopment of small scale industries,particularly, the first generation entrepreneurs.To promote the entrepreneurship developmentin the country, the Ministry implements 2important schemes, namely, promotion ofEntrepreneurship Development Institutions(EDI) and Scheme of National EntrepreneurshipDevelopment Board (NEDB). The IndianInstitute of Entrepreneurship (IIE), at Guwahati;the National Institute of Small IndustryExtension Training (NISIET), at Hyderabad andthe National Institute of Entrepreneurship andSmall Business Development (NIESBUD), atNew Delhi under Ministry of SSI are responsiblefor training and entrepreneurship developmentin the SSI Sector.2.0 ENTREPRENEURSHIP DEVE-LOPMENT INSTITUTIONS(EDI) SCHEMEUnder the EDI Scheme, grant is given forsetting up of new Entrepreneurship DevelopmentInstitutions and also for upgradation andmodernization of existing EntrepreneurshipDevelopment Institutions in the country. Underthe Scheme, a matching grant of 50%, subjectto a ceiling of Rs. 1 crore is provided for building,equipments, training aids, etc. The balance50% is contributed by the State Governments/Financial Institutions. During 2004-05 anamount of Rs. 210 lakh has been sanctionedfor the promotion of EDI in the country. During2005-06, a budget provision of Rs. 200 lakh hasbeen provided under the Scheme.3.0 NATIONAL ENTREPRENEUR-SHIP DEVELOPMENT BOARD(NEDB) SCHEMEThe National EntrepreneurshipDevelopment Board (NEDB) scheme is beingimplemented by the Ministry of SSI. The NEDB,is the apex body for entrepreneurshipdevelopment in the country. It devises andrecommends to the Government, schemes forthe promotion of entrepreneurship forencouraging self-employment and setting up ofthe small scale industries and small business.Under the Scheme, grant is provided to reputedorganizations engaged in the entrepreneurshipdevelopment for organizing workshops/seminars; conducting research studies relevantto entrepreneurship development. During 2004-05, the Ministry has approved a proposal forsetting up of an incubator centre for Gems and58

Jewellery at Guwahati by IIE, Guwahati at a totalcost of Rs. 41.80 lakh. This Centre will cater forthe development of the Gems and Jewelleryindustries of the region. A few studies havealso been assigned to reputed institutions, onvarious issues, relating to entrepreneurshipdevelopment in the country.4.0 INDIAN INSTITUTE OFENTREPRENEURSHIP (IIE),GUWAHATI4.1 Indian Institute of Entrepreneurship (IIE),will complete its 11th year of operation on 31March 2005. During this period, the Institute hasorganized 537 training programmes/workshops/seminars/meets wherein 15,472 participantsparticipated.training programmes for 2626 participants, while43 programmes are scheduled to be completedby March 2005. Out of the total 72 completedprogrammes, 26 programmes were on “Promotionof New Entrepreneurs”, 20 programmes on“Growth of Existing Entrepreneurs”, 2programmes on “Creation of Environment forEntrepreneurship”, 19 programmes on “EntrepreneurshipEducation”, 2 Seminars, and 3programmes on Information Technology. Betterinfrastructure facilities of the Institute, greaterawareness about the Institute and addition ofnew areas of Entrepreneurship Developmenthave been responsible for increase in thenumber of programmes. The details of thetraining programmes, during 2004-05 (up toNovember 2004) and expected achievement forthe year can be seen at the following Table.His Excellency, Lt. General (Retd.) Shri Ajai Singh Hon’bleGovernor of Assam and President of IIE, with Lt. General(Retd.) Shri S. S. Mehta, PVSM, VSM, Principal Adviser,NE Region, CII during the workshop on Industrialisationof NE Region4.3 Promotion of new entrepreneurs hasbeen a major focus area of training organizedby IIE. In order to promote new entrepreneurs,the Institute organizes EDPs for rural areas andfor women and general participants; crashcourses on Self Employment, sector specificEDPs, etc. The Institute is continuing its RuralIndustries Programme (RIP) with the help ofSIDBI in Meghalaya, Manipur and Barpeta inAssam. The Institute has initiated aComprehensive EDP on Gems Stone Cuttingand Polishing.4.2 During the year 2004-05 the Instituteproposes to organize 115 training programmes,seminars, workshops and meets, where 3716participants are expected to participate. UptoNovember 2004, the Institute completed 724.4 At the instance of the Ministry of FoodProcessing Industries, Ministry of Small ScaleIndustries, Ministry of Science andTechnology, Government of India, and NorthEastern Development Financial Corporation,59

Types of Programme and Number of Participants - IIESl. Programmes No. of Pro- No. of No. of No. ofNo grammes Participants Programmes ParticipantsCompleted Trained 2004-2005 2004-2005during during2003-04 2003-04 Completed To be Completed ExpectedUp to Completed Up to Nov. DecemberNov.2004 Dec,2004 2004 to Marchto March 200520051. Promotion of New 78 2642 46 32 1582 800Entrepreneurs (PNE)2. Growth of Existing 9 170 2 - 29 -Entrepreneurs (GEE)3. Creation of 28 1082 22 10 969 340Environment forEntrepreneurship(CEE)4. Entrepreneurship 4 118 2 1 46 50Education (EE)5. Information 1 7 - - - -Technology (IT)6. Seminar/ Workshop7. OthersTotal 120 4019 72 43 2626 1190in Food Processing, Health, Gem StonePolishing and Plastic Packaging industries,considering the immense potential of thesesectors in the North East, for 374 participants.The Institute with the assistance of Office ofthe Development Commissioner (SSI),Government of India also started its projectfor development of Cane and Bamboo Clusterin Nagaland.Participants during Gems cutting and polishing Trainingthe Institute has organized 16 (as onNovember 2004) sector specific programmes4.5 The Institute hosted the second phase ofthe Advance International Programme on Smalland Medium Enterprises ManagementDevelopment conducted in association with60

Participants of EDP on Food Processing, Imphal duringpractical demonstrationNIESBUD and Linkoping University, Sweden.The first phase was held at Stockholm, Sweden.The programme was sponsored by SwedishInternational Development Agency.Dr. Kobus Visser, Professor, Department of Management,University of Western Cape, Cape Town, South Africa,delivering Foundation Day Lecture4.6 The Institute organized a programme onBorder Trade with Bangladesh and Myanmarfor the entrepreneurs of the North EasternRegion. The Institute also organized aprogramme on Export Marketing to createawareness about the opportunities in the exportsector.4.7 The Institute proposes to hold a series ofprogrammes for the beneficiaries of KVICschemes, during the financial year 2004-05. TillNovember 2004, the Institute has organized 16programmes for 606 KVIC beneficiaries. By endof March 2005, the Institute will organize 16more programmes of this kind.4.8 Considering the importance of creating anenvironment for entrepreneurship development,the Institute has been organizing programmesfor the orientation of the support officials. Duringthe year (upto November 2004) the Institute hasShri A. K. Baruah, Programme Director of EDP on Jute &its allied products, welcoming the participantsorganized two such programmes for 29participants.4.9 Creating awareness and orientation forcollege and university teachers on entrepreneurshiphas been one of the core areas of theInstitute. The Institute organized a teachers’training programme in entrepreneurship developmentfor college and university teachers. Inaddition to this, the Institute has alreadyorganized 14 programmes for college studentsat the instance of the Department of Scienceand Technology, Government of India; 2 programmesfor polytechnic students of Nagaland,61

at the instance of the Government of Nagalandand 2 programmes for the youth in general, atthe instance of the North Eastern Council,Shillong. Till November 2004, 939 persons haveparticipated in these programmes. The detailsare given in the Table.for providing a forum for interaction andexchange of views by various agencies andentrepreneurs. Till date, the Institute hasorganized 2 workshops, one on Industrializationof The North Eastern Region and the other onProspects of Gems and Jewellery Industries inEntrepreneurship Education - IIESl. Type of Programmes No.of No.ofNo. Programmes Participants1 Teachers Training Programme on Entrepreneurship 1 82 EDP for Polytechnic Students of Nagaland 2 343 EAP for College Students EAP for Youth 14 7204 2 158Total 19 9204.10 At the instance of the North EasternCouncil, Shillong, the Institute has organized 2teachers’ training programmes on computerapplication skills. The Institute also organized acertificate course on basic computer applicationsfor 49 participants (as on November 2004).4.11 The Institute has been organizingseminars, workshops, meets and conferencesthe North East. One more workshop/seminarwill be organized by the end of March 2005.4.12 The Institute completed the followingresearch and consultancy assignments duringthe year:! The Status of Small Scale Industries ofthe North Eastern States of India, 2004sponsored by the Ministry of Small ScaleIndustries, Government of India, NewDelhi! Diagnostic Study of Bee Keeping Clusterat Nalbari and Jorhat Districts of Assam,2004, sponsored by KVIC, GuwahatiDr. P. Sinha, Programme Director, welcoming theparticipants of the workshop on Empowerment of Women! Study on the Impact of North East IndustrialPolicy, 1997-2004, sponsored by theMinistry of Small Scale Industries,Government of India, New Delhi62

The following research and consultancyassignments are on-going:! Entrepreneurship Development effortsand training need assessment forentrepreneurial growth in North East! Profiles of 100 successful entrepreneursfrom North East! Evaluation of Scheme for Support toTraining & Employment Programme(STEP) for women projects, beingimplemented by Assam Apex WeaversArtisans Cooperative Federation, forHandloom Weavers.4.13 Secretary, SSI&ARI, Government ofIndia, formally inaugurated the ‘Centre forComprehensive EDP on Gems Cutting andPolishing’ at the Institute’s premises atGuwahati on 24 September 2004. It is expectedthat the Center would help the artisans indeveloping their skill and contribute to theeconomic development of the region.4.14 An MoU has been signed between IndianInstitute of Entrepreneurship and theDepartment of Industrial Development,Government of Uttaranchal in the presence ofthe Hon’ble Chief Minister, Shri N.D. Tiwari, forsetting up its regional office at Dehra Dun witha contribution of Rs. 5.0 lakh from the UttranchalGovernment.4.15 The Indian Institute of Entrepreneurship,Guwahati organized the 10 th Foundation Daylecture on ‘Entrepreneurship in DifferentShri N. D. Tiwari (m), Honurable Chief Minister ofUttaranchal, during signing of MoU between IndianInstitute of Entrepreneurship and the Departmentof Industrial Development, Uttaranchal for settingup its Regional office at Dehra dun.Cultural and Socio-economic Contexts:Comparative Aspects on Entrepreneurship’.The lecture was delivered by Dr. Kobus Visser,Professor, Department of Management,University of Western Cape, Cape Town, SouthAfrica. His Excellency, Lt. General (Retd.) AjaiSingh, Governor of Assam and the Presidentof IIE, in his address, urged the institute to drawperspective plans and programmes to cater tothe needs of the growth and development ofthe small scale and medium enterprises of thenorth eastern region.4.16 The Institute publishes a Quarterly IIENewsletter, which highlights the activities of theInstitute and caters to the information needs ofthe entrepreneurs of the North East.The Institute published a book titled“Swaniyojanar Sandhanat Udyamita” (Selfemploymentthrough Entrepreneurship), by ShriJiten Chandra Kalita, IIE Faculty which was63

formally released by the Secretary (SSI & ARI),Government of India.5.0 NATIONAL INSTITUTE OFSMALL INDUSTRY EXTEN-SION TRAINING (NISIET)constantly evolving with time, modifying itsfocus with the emerging needs of SMEs,providing them solutions in the form ofconsultancy, training, research, and educationto retain their competitive edge in ever-changingmarkets.5.1 The NISIET was set up as an apexinstitute in 1960 by the Government of India,with the Charter of assisting in the promotion,development, and modernization of small andmedium enterprises (SMEs) in the country,mainly by creating a pro-business environmentwhich would enable SMEs to progress towardssuccess and prosperity. With its vast expertisein the areas of entrepreneurship, policy,technology, management, and informationservices, the institute is consistently assistingthe SMEs to face with confidence, thechallenges brought about by globalization andthe impact of IT on their businesses.As a global organisation, NISIET’s stellarrole in positioning the SMEs on the growthtrajectory has benefited not only the Indian SMEsector, but also developing countries around theworld in promoting self-employment andenterprise development. The institute is5.2 The academic performance indicators for2003-04 and for the period from April 1, 2004to November 30, 2004 (actual) and theprojection for the remaining four months of2004-05 are as presented in the Table.5.3 During 2004-05, the Institute has takenup the following research and consultancyprojects:! Evaluation of on-going schemes ofNBCFDC in Kerala! Evaluation of on-going schemes ofNBCFDC in Tamilnadu! Evaluation of Training Schemes ofNBCFDC in Kerala! Study on Demand and SupplyAssessment of Ozone DepletingSubstance in India sponsored by Ministryof Environment and Forest, Governmentof India, New Delhi.! Technical Break-up Unit/Interface of KVIC! Environmental reporting for Al-KabeerExports, Hyderabad! Environmental auditing for NicholasPiramal, Hyderabad! Environmental Auditing for AlfexInternational, Hyderabad64

Academic Performance of NISIETProgrammes 2003-04 2004-05No. of No. of From 1.4.2004 From 1.12.2004 TotalProgra- Partici- to 30.11.2004 to 31.3.2005mmes pants (actuals) (Projections)No. of No. of No. of No. of No. of No. ofProgra- Partici- Progra- Partici- Progra- Particimmespants mmes Pants mmes PantsEntrepreneurshipDevelopmentProgrammesEDPs underChief Minister’sEmpowerment of 448 32640 — — — — — —Youth of A.P. forUnemployedYouth! Counselling, 24 1276 17 843 43 2150 60 2993Re-training andRe-deploymentof rationalizedemployeesof CPSUs! EDPs on Food — — 09 250 59 1475 68 1725ProcessingIndustries! Other EDPs 22 620 05 121 20 600 25 721Other Programmes:National:Announced 24 251 16 162 23 230 39 392Sponsored 33 1066 19 484 30 650 49 1134International:Announced 11 203 11 101 6 120 17 221Sponsored 04 52 03 18 2 30 05 48Educational:PG Diploma 16 200 08 71 2 30 10 101IT 13 119 15 361 11 275 26 636IGNOU 03 300 03 157 — — 03 157Seminars and 45 1326 12 510 10 300 22 810WorkshopsConsultancy & 27 — 14 — 07 — 21 —ResearchTotal 670 38053 132 3078 213 5860 345 893865

! Achieving self-sufficiency of societies byGirijan Cooperative Corporation (GCC).! Handholding and monitoring services for20 clusters in the country.! Project on Crochet Lace cluster atNarsapur, West Godavari District, AndhraPradesh.! Design of project profiles for SMEs inMauritius! Study on Curriculum Models forEntrepreneurship Development! Study on Competency Mapping of IndianSMEs for Global Promotion.5.4 In order to cope with the increased polydimensionalnature of academic activities andprogrammes, the old Training Building wasdemolished and a new building was constructedto improve the physical infrastructure of theinstitute, landscaping and designing of gardenswas also separate environs were created andconstructed for specific activities like motivationof entrepreneurs, open-air spots, grounds, andtheatres for programmes, festivals, andacademic discussions latest gadgets and otheressential aids like computers with latestL to R : Dr. C. Rani, Director, CEIE, Dr. Poornima Advani,Chairperson, NCW; HE The Governor of Andhra PradeshShri Surjit Singh Barnala; Dr. Chukka Kondaiah,Principal Director, NISIETsoftware were made available to promote fasterand convenient learning by participants.5.5 Small Enterprise National DocumentationCentre (SENDOC) operations were augmentedby switching over to electronic and digitalinformation services and products, and theacquisition and installation of electronic journalsdatabase and industrial analysis database. Inaddition, a number of CD-ROMs were addedto strengthen the information support system.6.0 NATIONAL INSTITUTE FORENTREPRENEURSHIP ANDSMALL BUSINESS DEVELOPMENT(NIESBUD), NOIDA, UTTARPRADESH6.1 The National Institute for Entrepreneurship& Small Business Development(NIESBUD) is a registered society under theMinistry of Small Scale Industries, Governmentof India. The major activities of the Instituteinclude, development of model syllabi fortraining of various target groups; providing66

of Training Module for Women Producers inTASAR and organized a Rural Clinic for existingentrepreneurs in District Gautam Budh Nagar,U.P. While 22 training programmes wereconducted by the Institute with 558, participantsduring the corresponding period of 2003-04.During the year the Institutes shifting to its newcampus in NOIDA which affected its full workingfor almost 3 months.effective training strategies, methodology,manuals and tools; facilitating and supportingCentral/State Governments and other agenciesin executing programmes of entrepreneurshipand small business development; maximizingbenefits and accelerating the process ofentrepreneurship development; conductingprogrammes for motivators, trainers andentrepreneurs which are commonly notundertaken by other agencies and organizingactivities which help in developing anentrepreneurial culture in the society.6.2 During the first 8 months of 2004-05 (Aprilto November, 2004), the Institute has organized16 training programmes with 304 participants.Besides, the Institute undertook the Study onTraining Needs Assessment and Development6.3 The details of the training programmes(upto November 2004) conducted by the Instituteare as per the details given in the Table.6.4 The Institute organized the followingSeminars and Workshops.i) A two- day Seminar was organized at thespecial request of the Commissioner andDirector of Industries, Govt. of UttarPradesh, on “Preventing IndustrialSickness and Sticky Advances”. It wasattended by 30 participants.ii)The workshop on “Impact of World TradeOrganization (WTO) on Small & MediumEnterprises (SMES)” were conducted atMoradabad for 30 participants, sponsoredby the Commissioner & Director ofIndustries, Government of Uttar Pradesh.Training Programmes conducted by NIESBUD during 2004-05Training No. of programme No. of participants(1) Trainers’ Training 8 106(2) Entrepreneurial Motivation Programme 5 46(3) Other Training Programme 8 144(4) International Training Programme 2 3467

6.5 During the remaining four months of theyear 2004-2005, the Institute expects to conduct14 training Programmes besides undertakingthe following activities:-! The Institute has been recognized/approval as a Nodal Centre for organizingtraining activities under Counseling,Retraining & Redeployment (CRR)Scheme for Rationalized/RetrenchedEmployees of Central Public SectorUndertakings (CPSUs) at NOIDA, NewDelhi and Aurangabad.! The Institute’s proposal submitted to theMinistry of Urban Affairs & Employment,Govt. of India for conducting series ofworkshops & seminars for functionariesof the Swarna Jayanti Shahari RojgarYojana, is expected to fructify in nearfuture.! The Institute is going to organize aNational Meet of Trainers on EnterpriseDevelopment, under the auspices of theMinistry of Small Scale Industries.! The Institute has been recognized as aNodal Training Centre by the IndiraGandhi National Open University(IGNOU) and Guru Gobind SinghUniversity / for their respective training /academic activities. The Institute is alsoin the process of organizing a series ofEntrepreneurship Awareness Programmesfor Under-Graduate and Post-Graduate students of various disciplinesof Guru Gobind Singh University.6.6 The Institute commenced operations fromits new integrated campus at NOIDA from April,2004. The campus spread over 2.5 acres ofland has interalia facilities for holdingconferences / meetings / classes/group /work/workshops etc. simultaneously, besides 32Hostel Rooms on a twin sharing basis withadequate infrastructural and recreationalfacilities for the inmates.6.7 As part of the MoU (Memorandum ofUnderstanding) signed between the Ministry ofSSI, Govt. of India and the People’s DemocraticRepublic of Algeria on Small & MediumEnterprises and Handicrafts, the Instituteintends to assist in creating an environmentconducive for promotion of Small Enterprisesin Algeria, developing Human Resource forentrepreneurship development throughorganizing Trainers’ Training Programmes,sector specific EDPs and workshops / seminarsfor Banks and Support Organizations.6.8 The Institute is closely associated withimplementation of the MoU signed between theGovernments of India and Kenya in the field ofMicro & Small Enterprises Sector.6.9 The Institute is negotiating with CAPMER,Rawanda for long-term collaboration in the areaof entrepreneurship development in terms oforganizing Entrepreneurship Training Programmes;developing curriculum for Trainers’Training; exchange of faculty between the twocountries and to generally have a sustained partnershipfor development of SMEs in Rawanda.68

Chapter VIINTERNATIONAL COOPERATION1.0 INTERNATIONAL COOPERA-TION SCHEMEInternational Cooperation Scheme formodernization and technology upgradation ofsmall-scale enterprises has been underimplementation since 1996. Under thisScheme, SE entrepreneurs are taken topotential foreign markets, for a one to oneinteraction, for sourcing technology and forexport of products. Small enterprises haveemerged as a focus area for forging andpromoting trade and investment ties with othercountries. The economic reform programmes,envisage the emergence of the Indian industryas a global competitor, with substantialpresence in the international markets.Technology upgradation, modernization of SSIsector and promotion of exports from this sectorare interlinked issues which are importantobjectives of this Scheme.1.1 The Scheme was introduced in the 9 thPlan and has been continued in 10 th Plan, andhas been revised recently. The Scheme nowencompasses the following activities:! Participation in Exhibitions, Fairs andBuyer-Seller Meets (with an internationalcomponent).! Exchange of business delegations, toexplore new areas of technologyupgradation, facilitating joint ventures,improving marketability of SSI products,foreign collaborations etc.! Holding of seminars/buyer-seller meets,to promote enterprise-to-enterpriseinteraction through selected agencies,both in India & abroad.! Conducting of surveys and studies foridentifying individual units/ cluster ofunits, for the purpose of intensiveenterprise to enterprise interactionthrough NSIC Ltd. and other national levelorganizations /institutions.2.0 INDIA GLOBAL SUMMIT ONSMES! The Ministry and Confederation of IndianIndustry (CII) jointly with NSIC & SIDBIorganized the “India Global Summit onSMEs – Emerging Challenges &Opportunities”, from 23 and 24November, 2004 at New Delhi. Hon’bleMinister (SSI & ARI) inaugurated theSummit. Dr. R. Chidambaram, PrincipalScientific Advisor to the Government ofIndia also gave a presentation. The69

Global Summit, facilitated networking andsharing of best international practices inthe SME sector, to provide a sustainablefocus on the future global developmentand growth of SMEs. Enabling policies,role of finance/innovative finance &measure for risk sharing, value additionthrough Information and CommunicationTechnology; Global OutsourcingOpportunities and Global Small Enterpriseare some of the topics, that weredeliberated upon during the summit. 137foreign delegates from 27 countriesacross the globe attended the Summit.3.0 SIGNIFICANT EVENTS! His Excellency Mr. Mehmed Dikme,Bulgarian Minister of Agriculture andForestry, Republic of Bulgaria called onHon’ble Minister of Small Scale Industries& Agro and Rural Industries on 18 thNovember, 2004 at New Delhi to discussareas of mutual cooperation in the smallscale and agro-rural industrial sectors.! Mr. Ghenoun Lakhdar, SecretaryGeneral, Ministry of Small and MediumEnterprises and Handicrafts, Algeria,discussed cooperation for developmentof SMEs with Secretary (SSI&ARI) andother senior officers in the Ministry.! A Syrian delegation led by Dr. HusseinM. Amach, Acting Minister, PrimeMinister’s Office, Syria also met seniorofficials of the Ministry during thisperiod.! Secretary (SSI & ARI) visited South Africaand Lesotho during September, 2004 toidentify concrete projects for cooperationin the small scale sector. During his visitto the Kingdom of Lesotho, aMemorandum of Understanding betweenGovernment of the Republic of India andthe Government of the Kingdom ofLesotho for the promotion anddevelopment of Small Scale Enterpriseswas signed.! His Excellency Mr. Paolo ScarpaBonazza Buaro, the Italian UnderSecretary for Agriculture and ForestPolicy, met Hon’ble Minister (SSI &ARI) on 6 December, 2004 anddiscussed possible areas of cooperationbetween India and Italy for thepromotion and development of the smallscale sector.! The first session of the Joint Committeebetween Government of India and Algeriainstituted under Article 5 of the MoU onCooperation in the SME sector was heldon 22.11.2004 at New Delhi.70

Chapter VIIACTIVITIES IN NORTH EASTERN REGION1.0 The North Eastern Region, comprising ofAssam, Arunachal Pradesh, Manipur, Mizoram,Meghalaya, Nagaland, Tripura and Sikkim hasabundant natural resources and theseresources can be harnessed for industrialdevelopment. The Ministry of SSI is activelypromoting the development of small scaleindustries in the North Eastern region throughvarious plans and programmes implemented bythe various organisations of the Ministry.2.0 SMALL INDUSTY DEVELOP-MENT ORGANISATION (SIDO)Under the Credit Guarantee Scheme (ason 31.10.2004), 246 proposals from the NorthEastern States have been approved as per thetable given below :2.1 The Micro Finance Scheme has beendove tailed with the programmes of SmallIndustries Development Bank of India (SIDBI),by way of contribution towards securitydeposits, required from Micro FinanceInstitutions (MFIs) / Non-Government Organisations(NGOs) to enable them to avail creditfacilities from SIDBI. This will not only expandthe reach of SIDBI by providing the equitysupport to MFIs/NGOs in the region but this alsoensure their long-term sustainability. Besides,it will also help in meeting the training needs ofNGOs/Self-Help Groups, facilitators andProposals (State-wise) Approved for North Eastern Region and Amount of Guarantee under theCredit Guarantee SchemeSl. State Number of Amount of guaranteeNo. proposals approved cover Rs. lakh1. Assam 178 635.792. Manipur 29 36.663. Nagaland 9 80.884. Meghalaya 8 71.685. Arunachal Pradesh 2 1.906. Mizoram 1 8.007. Tripura 4 25.908. Sikkim 15 67.20Total 246 928.0171

entrepreneurs, and enhance the awarenessabout the micro credit programmes.2.2 To give a fillip to the growth of the smallscale industries in the North Eastern region, thefunding pattern under the IntegratedInfrastructure Development (IID) Scheme hasbeen relaxed from 40% to 80% for the NorthEastern region, J&K, Himachal Pradesh andUttaranchal. Rs. 4.30 crore has been disbursedin the North Eastern region under the Schemein the current year (till 30.10.2004).2.3 The proposal for the development of caneand bamboo clusters at Dimapur, Nagaland hasbeen approved with a financial assistance ofRs. 45 lakh, to be utilized in the current year.The Indian Institute of Entrepreneurship (IIE),Guwahati is the nodal agency for implementingthis project.3.0 NATIONAL SMALL INDU-STRIES CORPORATION(NSIC) LTD.3.1 NSIC has provided raw materialassistance to the extent of Rs. 5 crore to theSSI units in the region. In addition, tendermarketing support to the tune of Rs. 25 lakhwas provided to the SSI units.3.2 The NSIC Branch Office in Guwahati,sponsored an industrial fair organized by theGovernment of Nagaland in Kohima duringNovember, 2004. 60 SSI units from across theNorth Eastern region participated in the fair.The NSIC also conducted 2 EntrepreneurshipDevelopment Programmes (EDPs) on agroprocessing at Dainabubi, Meghalaya andDirang, Arunachal Pradesh. 60 entrepreneursfrom the region participated in these EDPs. 2training courses were conducted at Chandigreevillage, Meghalaya and Dirang, ArunachalPradesh for 25 participants.3.3 Financial assistance of Rs. 20.58 lakhwas disbursed by NSIC in the region under theHire Purchase Scheme. Under the Term LoanScheme, financial assistance was extended, tothe entrepreneurs in the region, for upgradationof technology. 53 SSI units from the region alsodisplayed their products and services in theNSIC Display Centre at Okhla, New Delhi. TheDisplay Centre has an exclusive floor dedicatedfor display of products from the North EasternStates. Another Display Centre at Kolkata isbeing operationalised by the NSIC, for exclusivedisplay of products of SSI units of the region.4.0 COMPREHENSIVE ENTRE-PRENEURSHIP DEVELOP-MENT CENTRE (CEDC)The Ministry has also sanctioned aComprehensive Entrepreneurship DevelopmentCentre (CEDC) for gems and jewellary inthe North Eastern region. The Centre has beenset up in IIE, Guwahati. Similar IncubatorCentres are also proposed to be set up in otherNorth Eastern States.72

Chapter VIIIDEVELOPMENT ACTIVITIESFOR WOMEN1.0 In the policy measures for promotion andstrengthening of small, tiny and villageenterprises announced by the Government in1991, it was mentioned that the definition ofWomen Enterprises would be simplified.Accordingly, the definition of “WomenEntrepreneurs” is as under:“A Small Scale Industrial Unit/Industryrelated service or business enterprise,managed by one or more women entrepreneursin proprietary concerns, or in which she/theyindividually or jointly have a share capital of notless than 51% as Partners/Share-holders/Directors of Private Limited Company/Membersof Cooperative Society”.2.0 PARTICIPATION OF WOMENIN SSI SECTOR! The participation of women in SSI sectorhas been identified in three different rolesin the Third All India Census of SSIs. Somewomen were owners of enterprises, somewere managers of enterprises and somewere employees. With regard toownership, an SSI or a Small ScaleService and Business (Industry Related)Enterprises (SSSBEs) managed by oneor more women entrepreneurs inproprietary concerns, or in which she/ theyindividually or jointly have a share capitalof not less than 51 % as partners/ shareholders/ Directors of Private LimitedCompany/ Members of Co-operativeSociety is called a ‘Woman Enterprise’.! The total number of women enterprisesin the total SSI Sector was estimated at10,63,721 (10.11 %). The estimatednumber of enterprises actually managedby women was 9,95,141 (9.46 %).! About 13 % of the women enterpriseswere in the registered SSI sector and theremaining 87 % were in the unregisteredSSI sector. With regard to the enterprisesmanaged by women, 11.5 % were in theregistered SSI sector and 88.5 % werein the unregistered SSI sector.! The share of the units managed bywomen in terms of employment was7.14%. The employment generated perRs. 1 lakh investment in the unitsmanaged by women was 2.49%.73

! The total number of female employees inthe SSI sector is estimated at 33,17,496.About 57.62 % of the female employeeswere employed in the SSI units locatedin the States of Tamil Nadu, Kerala,Karnataka, West Bengal and AndhraPradesh.! The proportion of female employees inthe total employment in the SSI sectorwas of the order of 13.31 %. In the Statesof Mizoram, Orissa, Karnataka, Goa,Lakshadweep, Kerala, Tamil Nadu andPondicherry, the share of womenemployment was significantly higher(more than 20 %) compared to the totalemployment in the respective State.3.0 TRAINING OF WOMENENTREPRENEURSVarious institutes working under SIDO,conduct need based training programmes forexisting and prospective women entrepreneurs.1500 women participated in these trainingprogrammes i.e. Industrial MotivationalCampaign, Entrepreneurship DevelopmentProgrammes and Management DevelopmentProgrammes, conducted by SISIs through outthe country, by the end of December, 2004.4.0 WOMEN EMPOWERMENTUNDER IID SCHEME! Association of Lady Entrepreneurs ofAndhra Pradesh (ALEAP), an NGOcomprising of women members only, hassuccessfully completed theimplementation of an IID project atGajularamaram, Distt. Rangareddy,Andhra Pradehs. 64 units have beenestablished by women entrepreneursproviding employment to 1400 persons.In all 108 women entrepreneurs will bebenefited from this project. Out of the totalproject cost of Rs. 347 lakh, Governmentof India provided grant to the tune of Rs.139 lakh.! Another IID project at Vijyawada, Distt.Krishna, Andhra Pradesh is beingimplemented by ALEAP at a project costof Rs. 370 lakh. Government of Indiagrant of Rs. 52.33 lakh has been releasedfor this project. 123 small and tiny unitsare expected to come up in this IID Centrewhen completed.5.0 TRADE RELATED ENTRE-PRENEURSHIP ASSISTANCEAND DEVELOPMENT(TREAD) FOR WOMENRecognizing the need for economicempowerment of women in rural/urban areasparticularly those, who have low education andminimal means of accessing the assistancefrom the developmental agencies whilepursuing their entrepreneurial initiatives for selfemploymentin non-farm sector, “Trade RelatedEntrepreneurship Assistance & Development”(TREAD) scheme is being implemented.The Scheme envisages development ofmicro/tiny enterprises in the country both in theurban and in the rural areas. The main objective74

of the Scheme is to empower womeneconomically through development of theirentrepreneurial skills by eliminating constraintsfaced by women in matters of trade.Under the Scheme, there is a provisionfor assistance in the form of loans, grants, traderelated training, trade information, counsellingand extension activities relating to product andmarket development for women entrepreneursin non-farm sector, in a group mode throughreputed Voluntary Organizations (VOs), Non-Governmental Organizations (NGOs) and SelfHelp Groups (SHGs).The scheme has three componentsi) To provide assistance to the womenentrepreneurs through VOs/NGOs/SHGsfor non- farm entrepreneurial activity.ii) To build up capacity of EntrepreneurshipDevelopment Institutions like NationalInstitute for Small Industry Extension &Training (NISIET), Hyderabad, SmallIndustries Service Institutes (SISIs), StateLevel EDIs etc. who will be providedfinancial support in the form ofmaintenance grant.iii) To create Entrepreneurship DevelopmentTraining facility in NGOs for which thefinancial support will be given forconducting the training programmes.Under the Scheme, the VOs, NGOs/SHGs with the requisite experience in microcredit, prepare project proposals on behalf ofindividual women, and submit the proposals toFinancial Institution in the prescribed form.Based on the Financial Institution’s appraisalthe project proposal is vetted by the Office ofthe DC (SSI) for final approval and release ofgrant up to a maximum of 30% of project costto NGOs. The remaining amount is to beprovided by the Financial Institution as a loan.75

Chapter IXUSE OF OFFICIAL LANGUAGE1.0 Hindi is the Official Language of the Unionof India and the Government policy is aimed atincreasing progressive use of Hindi in officialwork. Effective steps were taken during the yearin the Ministry of Small Scale Industries toensure the compliance of the Official Languagepolicy of the Government, implementation of theannual programme and compliance with theorders of the President, on therecommendations of the Committee ofParliament on Official Language2.0 COMPLIANCE OF THE PRO-VISIONS OF THE OFFICIALLANGUAGE ACT, 1963All documents such as resolutions,general orders, rules, licenses under Section3(3)of the Official Language Act and all paperslaid on the Table of the Houses of Parliamentwere issued bilingually i.e. in Hindi and English.The Ministry is already notified under the OfficialLanguage Rule 10(4).3.0 REPLIES TO LETTERS INHINDIAll letters received in Hindi were repliedin Hindi only.4.0 CORRESPONDENCE IN HINDILetters to State Government, UnionTerritory and Central Government officeslocated in regions ‘A’ and ‘B’ were issued inHindi, to the maximum extent possible.Similarly, efforts were also made to send lettersin Hindi to Central Government offices locatedin region ‘C’, as per the targets laid down inthe annual programme.5.0 SECTIONS SPECIFIED FORWORKING IN HINDIThe sections of the Ministry, notified fordoing cent percent work in Hindi, are workingsatisfactorily.6.0 MONITORING AND INSPEC-TIONSIn order to ensure compliance of theOfficial Language policy, there is constantmonitoring and review of the progress reports.During the year, six Sections of the Ministryhave been inspected , to ensure use of Hindiand compliance of the Official Languagepolicy.76

7.0 TRAINING OF OFFICIALSAll officials of the Ministry, have alreadybeen trained in Hindi typing and stenography.8.0 USE OF MECHANICAL AIDSAs per provisions of Official LanguageAct, bilingual facilities have been provided onoffice equipments in the Ministry. Computersand terminals have also been installed withfacility to work in Hindi.9.0 HINDI MONTHHindi month was celebrated from 1September to 30 September, 2004 in theMinistry. To encourage and motivate theemployees for doing maximum official workin Hindi, various competitions in Hindi, wereorganized during this period, in Hindi typing,Hindi stenography, debate in Hindi, Hindiessay and noting and drafting in Hindi. Alarge number of officers and employeesparticipated in it with great enthusiasm. Onthe occasion of Hindi Month, the messagesof the Hon’ble Home Minister and theCabinet Secretary were circulated forinformation and compliance. The prizedistribution ceremony was organised on 1February 2005 and prizes were distributedby the Hon’ble Minister (SSI&ARI).Secretary(SSI&ARI) was also present on theoccasion.Prize distribution ceremony77

Chapter XVIGILANCE MATTERS1.0 The vigilance unit of the Ministry is headedby a Chief Vigilance Officer (CVO) of the rank ofJoint Secretary, Ministry of Small Scale Industriesappointed on the advice of the Central VigilanceCommission (CVC). The CVO functions as thenodal point in the vigilance set-up of the Ministry.The secretariat assistance to the CVO in theMinistry of SSI is given by the Vigilance Desk ofthe Department of Industrial Policy & Promotion(DIPP), as Ministry of SSI being a newlyestablished Ministry does not have its ownindependent vigilance unit. The vigilance unitis, inter-alia, responsible for the following:! identification of sensitive areas prone tomalpractices/temptations and takingpreventive measure to ensure integrity/efficiency in Government functioning;! taking suitable action to achieve thetargets fixed by the Department ofPersonnel & Training ((DoPT) on anticorruptionmeasures;! scrutiny of complaints and initiation ofappropriate investigation measures;! inspections and follow-up action on thesame;! furnish of comments to the CVC, on theinvestigation reports of the CentralBureau of Investigation(CBI);! taking appropriate action in respect ofdepartmental proceedings on the adviceof the DoPT & CVC;! obtain second stage advice of the CVC,wherever necessary; and! obtain advice of the Union Public ServiceCommission (UPSC) in regard to thenature and quantum of penalty to beimposed, wherever necessary.2.0 SMALL INDUSTRIES DEVE-LOPMENT ORGANISATIONThe Vigilance Unit in the office of theDevelopment Commissioner (Small ScaleIndustries), New Delhi, is headed by a CVO ofthe rank of Director appointed on the advice ofthe Central Vigilance Commission(CVC), withfull complement of staff under him. CVO is alsoresponsible for all the field offices of the SIDO.3.0 NATIONAL SMALL INDUS-TRIES CORPORATION, NEWDELHI (NSIC)It is the only public sector undertakingunder the Ministry of Small Scale Industries,and has its own Part time CVO appointed onthe advice of the CVC.78

4.0 Preventive vigilance continues to receivepriority attention with primary emphasis onidentification of areas sensitive/ prone tomalpractices and temptation. The guidelines/instructions etc. issued by the DoPT andCVC from time to time in this regard arefollowed. Action taken inter-alia includes thefollowing:-i) Regular and surprise inspections arecarried out by the Departmental SecurityOfficer of the DIPP. In the attached andsubordinate offices, respectiveDepartmental Security Officers carry outthese inspections etc.ii) Strengthening of vigilance machinery byway of appointing CVO in theoffices and organisations under theMinistry, who looks after the vigilanceactivities in the office/organizationconcerned.iii)iv)(v)A strict watch is being kept on liaison menand on other persons. The Departmentalsecurity instructions are reiterated fromtime to time for streamlining the entry inthe building. To end the practice ofprofessional liaison men operating in theMinistry, a fresh list of such unwantedliaison – men has been prepared.Cases of the officers, who have attainedthe age of 50 years or have put in 30 yearsof service are reviewed under FR 56 (j)in order to judge their suitability tocontinue in service thereafter. Theexercise is currently being done by theEstablishment Division of the DIPP.In order to make officers conscious of theprovisions of Conduct Rules applicableto them as also to acquaint them with theimportance of departmental security,Rules/Instructions are reiterated in thisrespect from time to time.79

Chapter XICITIZENS’ CHARTER1.0 This Charter is a declaration of theMinistry, incorporating policies, missions,commitments for the small scale entrepreneursand for the people of India in general.2.0 MINISTRY OF SSIThe Ministry of Small Scale Industries(SSI) is responsible for designing andformulation of policy, for promoting the growthof small scale enterprises in the country. Theactual implementation of the policy is doneby the Ministry’s field organizations like SmallIndustry Development Organization (SIDO)through their Small Industries ServiceInstitutes (SISI), National Small IndustriesCorporation Ltd. (NSIC) etc. TheOrganizations of the Ministry have their ownCitizen’s Charter.3.0 OUR MISSIONOrganizations, for the benefit of small scaleindustries. The objective is to promote aid andfoster growth of SSIs, by providing theminstitutional support in the areas of marketing,export, technology upgradation, training andcommon facilities services. We aim at providingprompt services/training needs to citizensthrough our field agencies like Small IndustryDevelopment Organization and the NationalSmall Industries Corporation, so that the growthof the SSIs is enhanced, quality of productionis improved and more employmentopportunities are generated.4.0 OUR VALUESThe Ministry is committed to efficient andprompt service with transparency and courtesyin dealing with citizens.5.0 OUR COMMITMENTOur mission is to support the Small ScaleIndustries (SSI) by way of advocacy with thevarious organizations of Government, byproviding services to support the growthdevelopment of small scale enterprises andby management of programmes throughGovernment and Non-GovernmentThe Ministry will be dutiful, disciplined andwill respect the right of entrepreneurs and SSIAssociations. The Ministry will maintain anduphold the confidentiality of personal andbusiness information disclosed to it by citizens.To continuously review the provisions andenforcement of laws and regulations in80

consultation with SSI associations and othergroups which help the SSI units.6.0 STANDARD FOR GENERALPROCEDUREThe letters received by the Ministry willbe acknowledged in 15 days.7.0 RESPONSIBILITIES OF OURCITIZENThe Ministry expects continuous feedback from the citizen on the quality of theservices provided to them and on areas in whichimprovements are expected.8.0 ASSESSING PERFORMANCEThe Ministry will share its performancewith citizens through the media. The Ministrywill hold independent surveys on perceptionsof citizens and assessment of its performance.9.0 GUIDANCE AND HELPThe information and facilitation counterof the Ministry located on the ground floor, GateNo.4, Nirman Bhavan, New Delhi provide informationon the services and activities of the Ministryand related organizations of the SSI sector.10.0 COMPLAINTSIn case of any complaint, one maytelephone or send a letter or fax or visit theMinistry at Udyog Bhavan, New Delhi.However, before lodging of a complaint, onemay, first of all, use the information andfacilitation counter of the Ministry. In case, oneis not satisfied, the matter may be taken up withthe Grievance Officer in this Ministry. Theaddress, phone number and fax number of theInformation and Facilitation Counter and theGrievance Cell are as follows:11.0 IMPORTANT ADDRESSESWEBSITES ADDRESS(2) Grievance CellDy. SecretaryMinistry of SSIRoom No.124 -DUdyog BhavanNew Delhi - 110011Tel. No. 23015543No. 011-23010886 (fax)(2) Information and Facilitation CounterGate No.4, Ground FloorNirman BhavanNew Delhi-110 011.Tel.No.23019219www.ssi.nic.in - Ministry of SSIwww.laghu-udyog.com - SIDOwww.nsicindia.com - NSICwww.niesbud.com - NIESBUDwww.nisiet.com - NISIETwww.iie.nic.in - IIE81

FACTS AT A GLANCES. Year Total Fixed Production (Rs crore) Employment ExportsNo. SSI Units Investment Current Constant (lakh persons) (Rs.(numbers (Rs. crore) Prices Prices crore)in lakh) (1993-94)1 1990-91 67.87 93555 63518 68295 158.34 96642 1991-92 70.63 100351 73072 79180 165.99 13883(4.07) (7.26) (15.04) (15.94) (4.83) (43.66)3 1992-93 73.51 109623 85581 93523 174.84 17784(4.07) (9.24) (17.12) (18.11) (5.33) (28.10)4 1993-94 76.49 115795 98804 98804 182.64 25307(4.07) (5.63) (15.45) (5.65) (4.46) (42.30)5 1994-95 79.60 123790 122210 109116 191.40 29068(4.07) (6.9) (23.69) (10.44) (4.79) (14.86)6 1995-96 82.84 125750 148290 121649 197.93 36470(4.07) (1.58) (21.34) (11.49) (3.42) (25.46)7 1996-97 86.21 130560 168413 135380 205.86 39248(4.07) (3.82) (13.57) (11.29) (4.00) (7.62)8 1997-98 89.71 133242 189178 147824 213.16 44442(4.07) (2.05) (12.33) (9.19) (3.55) (13.23)9 1998-99 93.36 135482 212901 159407 220.55 48979(4.07) (1.68) (12.54) (7.84) (3.46) (10.21)10 1999-2000 97.15 139982 234255 170709 229.10 54200(4.07) (3.32) (10.03) (7.09) (3.88) (10.66)11 2000-01 101.1 147348 261289 184428 239.09 69797(4.07) (5.26) (11.54) (8.04) (4.36) (28.78)12 2001-02 105.21 154349 282270 195613 249.09 71244(4.07) (4.75) (8.03) (6.06) (4.18) (2.07)13 2002-03 109.49 162533 311993 210636 260.13 86013(4.07) (5.30) (10.53) (7.68) (4.43) (20.73)14 2003-04 113.95 170726 357733 228730 271.36 NA(4.07) (5.04) (14.66) (8.59) (4.32)Note (1) Figures in brackets show the percentage growth over the previous year.(2) The production, at constant prices for the year 2003-2004, is based on the growth rate achievedin the first three quarters of 2003-2004 (i.e. April- December, 2003).(3) The production at current prices is compiled on the basis of average Wholesale Price Index(April-December, 2003) of manufactured products.82

ACRONYMSARI Agro and Rural IndustriesCAD Computer Aided DesignCAM Computer Aided ManufacturingCFTI Central Footwear Training InstituteCGFS Credit Guarantee Fund SchemeCLCSS Credit Linked Capital SubsidySchemeCNC Computerized Numerical ControlDC (SSI) Development Commissioner (SmallScale Industries)EDP Entrepreneurship DevelopmentProgrammeFTS Field Testing StationIDTR Indo-Danish Tool RoomIGTR Indo-German Tool RoomIID Integrated Infrastructural DevelopmentIIE Indian Institute of EntrepreneurshipISO International Organisation forStandardizationLUCC Laghu Udyami Credit CardMDA Market Development AssistanceMDP Management DevelopmentProgrammeNEF National Equity FundNIESBUD National Institute for Entrepreneurshipand Small BusinessDevelopmentNISIET National Institute of Small IndustryExtension TrainingNSIC National Small Industries CorporationLimited.NTSC National Small IndustriesPMRYPPDCRTCSDPSENETSEPTISIDOSMESSITDMFTRCTREADTRTCVDPWTOUNITCorporation Technical ServiceCentrePrime Minister’s Rozgar YojanaProcess-cum-Product DevelopmentCentreRegional Testing CentreSkill Development ProgrammeSmall Enterprise Information andResource Centre NetworkSmall Entrepreneurs Promotionand Training InstitutesSmall Industries DevelopmentOrganisationSmall and Medium EnterprisesSmall Scale IndustriesTechnology Development ModernisationFundTechnology Research CentreTrade Related EntrepreneurshipAssistance and Development forWomenTool Room and Training CentreVendor Development ProgrammeWorld Trade Organisation1 Crore 10 Million10 Lakh 1 Million1 Lakh 100 Thousand84