ANNUAL REPORT

2004-2005

GOVERNMENT OF INDIA MINISTRY OF SMALL SCALE INDUSTRIES

Contents
Page No.

Chapter I
Overview 1

Chapter II
Small Industry Development Organization (SIDO) 5

Chapter III
Credit and Fiscal Concessions to the SSI Sector 41

Chapter IV
National Small Industries Corporation (NSIC) Ltd. 49

Chapter V
Training and Entrepreneurship Development 58

Chapter VI
International Cooperation 69

Chapter VII
Activities in the North Eastern Region 71

Chapter VIII
Development Activities for Women 73

Chapter IX
Use of Official Language 76

Chapter X
Vigilance Matters 78

Chapter XI
Citizens Charter 80 82 84

Facts at a Glance Acronyms

Tables
Page No.

A. B.

Performance of Regional Testing Centres Summary Report, Coverage and Highlights of the Final Results of Third Census (2001-02)

17

23 30 33 33 41 42

C. D. E. F G. H

Section-wise details of Common Facility & Testing Services-PPDC, Meerut Physical Target & Achievements of CFTI, Chennai Actual & Anticipated Achievements of CFTI, Agra Flow of Credit to SSI Sector from all Public Sector Banks, since 2000 Status of Credit to Tiny Sector since 2000 Financial performance year wise under Credit Linked Capital Subsidy Scheme (CLCSS)

46 48 60 62 65 67

I. J. K. L. M. N.

Various Reasons for Sickness/Incipient Sickness Types of Programme and Number of Participants - IIE Entrepreneurship Education - IIE Academic Performance of NISIET Training Programmes conducted by NIESBUD during 2004-05 Proposals (State-wise) Approved for North Eastern Region and Amount of Guarantee under the Credit Guarantee Scheme

71

Chapter I OVERVIEW
1.0 BACKGROUND
The small scale industries (SSI) constitute one of the vibrant sectors of the Indian economy in terms of employment generation, the strong entrepreneurial base it helps to create and its share in industrial production and exports. The Government created
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adequate credit from financial institutions/ banks;

funds for technology upgradation and modernization; adequate infrastructural facilities; modern testing facilities and quality certification laboratories; modern management practices and skill upgradation through advanced training facilities;

Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) in October, 1999 as the nodal Ministry for formulation of policy and co-ordination of Central assistance relating to promotion and development of the small scale industries in India. The Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) was bifurcated into two separate Ministries, namely, Ministry of Small Scale Industries and Ministry of Agro and Rural Industries in September, 2001. Taking into account the high potential for growth in the SSI sector in terms of output, employment and exports, the role of the Ministry of Small Scale Industries is to strengthen the SSI sector, to enable it to remain competitive in market-led economy and generate additional employment opportunities. For achieving these objectives, the endeavor of the Ministry is to provide the SSI sector proper and timely inputs like:

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marketing assistance; and level playing field at par with the large industries sector;

2.0 MINISTRY
2.1 The Ministry of SSI designs policies,

programmes, projects and schemes in consultation with its organizations and various stakeholder and monitors their implementation with a view to assisting the promotion and growth of small scale industries. The Ministry also performs the function of policy advocacy on behalf of the SSI sector with other Ministries/ Departments of the Central Government and the State and Union Territories.

2.2

The implementation of policies and various

bodies registered as societies under the Societies Act.

programmes/projects/schemes for providing infrastructure and support services to small enterprises is undertaken through its attached office, namely the Small Industry Development Organization (SIDO) and the National Small Industries Corporation (NSIC) Ltd., a public sector undertaking under the Ministry.

4.0 NATIONAL SMALL INDUSTRIES CORPORATION (NSIC) LTD.

4.1 The National Small Industries Corporation

Ltd. was set up with a view to promoting, aiding

3.0 SMALL INDUSTRY DEVELOPMENT ORGANIZATION (SIDO)

3.1 The Office of the Development

and fostering the growth of small scale industries in the country with focus on commercial aspects of these functions. NSIC continues to implement its various programmes and projects throughout the country to assist the SSI units. The Corporation has been assisting the sector through the following schemes and activities:
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Commissioner (Small Scale Industries) is also known as the Small Industry Development Organization (SIDO). It is an apex body for assisting the Ministry in formulating, coordinating, implementing and monitoring policies and programmes for the promotion and development of small scale industries in the country and is headed by the Development Commissioner (SSI). 3.2 In addition, the SIDO provides a

Supply of both indigenous and imported machines on easy hire-purchase terms Composite term loan scheme Procurement, supply and distribution, of indigenous and imported raw-materials Marketing of small industries products Export of small industries products and developing export-worthiness of small scale units Enlisting competent units and facilitating their participation in Government Stores Purchase Programme Training in several technical trades Sensitizing SSI units on technological upgradation through Software Technology Parks and Technology Transfer Centres Mentoring & advisory services

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comprehensive range of common facilities, technology support services, marketing assistance, etc., through its network of 30 Small Industries Service Institutes (SISIs), 28 Branch SISIs, 7 Field Testing Stations (FTS), 4 Regional Testing Centres, 2 Small Entrepreneur Promotion and Training Institutes (SEPTI) and 1 Hand Tool Design Development and Training Centre. The SIDO also has a network of Tool Rooms, Process-cum-Product Development Centres (PPDCs) and technology and training support institutes which are run as autonomous

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Technology business incubators Setting up small scale industries in other developing countries on turnkey basis Other areas & international co-operation

6.0 NATIONAL INSTITUTES FOR ENTREPRENEURSHIP DEVELOPMENT

As entrepreneurship development and

4.2 Over the years, the Corporation has made significant contribution to the growth of the SSI sector in India. The Corporation has also set up a large number of turnkey projects in a number of developing countries. The Corporation is an ISO: 9001-2000 Company.

training is one of the key elements for the promotion of small scale industries, the Ministry has established three National Institutes, viz. the National Institute of Small Industry Extension Training (NISIET) at Hyderabad, the National Institute of Entrepreneurship and Small Business Development (NIESBUD) at New Delhi and the Indian Institute of Entrepreneurship (IIE) at Guwahati as autonomous bodies. These Institutes are responsible for development of training models and undertaking of research and training for entrepreneurship development in the SSI sector.

5.0 SMALL SCALE INDUSTRIES BOARD

5.1 The SSI Board is the apex nonstatutory advisory body constituted by the Government of India to render advice on all issues pertaining to the SSI sector. The Minister incharge of the SSI Ministry is the Chairman of the Board. Members of the Board, include inter alia State Industries Ministers, selected Members of Parliament, Secretaries of various Departments of the Central Government, Heads of Financial Institutions, Representatives of Industry Associations and Eminent Experts. 5.2 The SSI Board provides to its members a forum for interaction to facilitate co-operation and inter-institutional linkages and to render advice to the Government on various policy matters, for the development of the sector. 5.3 The Board was first constituted in 1954. Its term is for two years. The Board was last constituted on 18 January, 2003, with 101 th th members and held its 48 meeting on 17 January, 2004.
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7.0 NATIONAL COMMISSION ON ENTERPRISES IN THE UNORGANIZED/INFORMAL SECTOR

7.1 The National Commission on Enterprises

in the Unorganized/Informal Sector was constituted in September, 2004 under the chairmanship of Dr. Arjun K. Sengupta, an eminent economist. It has three full-time Members and two part-time Members and an Advisory Board consisting of 11 eminent experts from different fields relating to the unorganized/ informal sector. The Commission will recommend measures considered necessary for bringing about improvement in the productivity of the informal sector enterprises, generation of large scale employment

opportunities on a sustainable basis, particularly in the rural areas, enhancing the competitiveness of the sector in the emerging global environment, linkage of the sector with institutional framework in areas such as credit, raw material, infrastructure, technology upgradation, marketing and formulation of suitable arrangements for skill development. 7.2 In accordance with its terms of

notion of growth poles for the informal sector in the form of clusters/hubs, where external economies need to be provided to spur employment generation and productivity enhancement and the feasibility of integrating the initiatives and programmes of various Ministries in this domain;

skill formation in the informal sector and potential for public private partnership in providing the required skills;

reference, the Commission and its Advisory Board have held several rounds of deliberations on a host of issues relating to the unorganized/informal sector enterprises. In the light of these deliberations, the following issues have been identified so far by the Commission for detailed consideration and recommendations:
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provision of micro finance and related services to the informal sector enterprises and strengthening of the institutional framework in this area; and issues concerning social security for the workers in the informal sector and instrumentalities for achieving this objective.

Shri Anupam Dasgupta, Secretary (SSI & ARI) is handing over the cheques of contribution for the Prime Ministers Relief Fund (for Tsunami victims), to Honble Minister of SSI & ARI Shri Mahabir Prasad. Also seen in the picture are Smt. Stuti N. Kacker Jt. Secretary - SSI and Shri Rajiv Bhatnagar, CMD-NSIC

Chapter II SMALL INDUSTRY DEVELOPMENT ORGANIZATION (SIDO)

1.0 Small Industry Development Organization latest information and help the industry to adopt viable advanced technology suitable to local conditions. 1.2 There are also a few specialized headed by the Development Commissioner, is an apex body for formulating, coordinating, implementing and monitoring policies and programmes for the promotion and development of the small scale industries in the country. It provides a comprehensive range of facilities and services to small scale units through a network of 30 Small Industries Service Institutes (SISIs), 28 Branch SISIs, 7 Field Testing Stations, 4 Regional Testing Centres, 2 Small Entrepreneur Promotion and Training Institutes (SEPTI) and 1 Hand Tool Design Development and Training Centre. 1.1 For the benefit of Small Scale Industries institutions, like The Central Institute of Tool Design, Hyderabad, The Central Tool Room & Training Centres at Bhubaneswar and Kolkata, Central Tool Room at Ludhiana, 3 Indo-German Tool Rooms at Indore, Aurangabad and Ahmedabad and Indo-Danish Tool Room at Jamshedpur, Institute for Design of Electrical Measuring Instruments (IDEMI), Mumbai, Electronics Service & Training Centre, Ramnagar (Uttaranchal), 2 Central Footwear Training Institutes at Agra and Chennai, 2 Process-cum-Product Development Centres at Agra & Meerut and Fragrance and Flavour Development Centre, Kannauj and Centre for Development of Glass Industry, Ferozabad which provide training and technical services in their respective specified fields. The important activities of the organization are:
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seeking information about the latest technologies available all over the world, Technology Resource Centres (TRCs) have been set up in all 30 SISIs. These TRCs are acting as an agency for identifying appropriate technology, help in acquiring skills for use of technology, as well as facilitate absorption of technology. In due course of time, TRC in each SISI would be linked to the cluster development programme and will prepare information on technology based industrial cluster. The TRC will work as a facilitator and enable the small industries to access different web sites for the

Advising the Government in policy formulating for the promotion and development of small-scale industries

Providing

techno-economic

and

competitiveness of small enterprises has been a long outstanding demand of the Sector, especially with a view to free the sector from a plethora of laws and regulations and visit of a large number of inspectors, which it has to face with limited awareness and resources. Ministry of SSI has drafted a Small & Medium Enterprises Development Bill to address the issues of small scale sector relating to:
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managerial consultancy, common facility and extension services to small-scale units

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Providing facilities for technology upgradation, modernization, quality improvement and infrastructure

Human Resource Development through training and skill upgradation

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Providing economic information services Maintaining a close liaison with the Central Ministries, Planning Commission, State Governments, financial institutions and other organizations concerned with the development of the small-scale industries

Registration Credit State Procurement Labour regulations Delayed payment to SSIs Reservation

Evolving and coordinating policies and programmes for development of smallscale industries as ancillaries to large and medium scale industries

3.0 RESERVATION POLICY

The policy of reservation of items for exclusive manufacture in the small scale sector was initiated in 1967 with 47 items. Reservation grants protection to small scale units against large/medium scale undertakings including multi-nationals, who are not allowed to manufacture these items except under 50% export obligation. 3.1 In order to provide statutory backing to

Provide testing calibrations services to Small Scale Units

Implementing / monitoring of Credit Guarantee Fund Scheme and Credit Linked Capital Subsidy Scheme An amount of Rs. 315.55 crore has been

allocated for implementation of the Plan Schemes during the financial year 2004-05.

the reservation in small scale sector, the Industries (Development & Regulation) Act, 1951 was amended in March 1984 empowering the Government to reserve items. This necessitated the constitution of an Advisory Committee under the provisions of Section 29(B) of the Act on reservation in March, 1984. The Secretary (SSI) is the Chairman of this

2.0 SMALL & MEDIUM ENTERPRISES DEVELOPMENT BILL

A single comprehensive Act for promotion, development and enhancement of

Committee. The other Members of this Committee are Secretary (IP&P), Secretary (Commerce), Advisor (VSI), Planning Commission with AS&DC (SSI) as MemberSecretary. 3.2 This Committee has met 23 times and the of this Committee,

5.0 FOREIGN DIRECT INVESTMENT IN SSI

A small scale unit cannot have more than 24 per cent equity in its paid up capital from any industrial undertaking, either foreign or domestic. If the equity from another company (including foreign equity) exceeds 24 per cent, even if the investment in plant and machinery in the unit does not exceed Rs.1 crore, the unit loses its small scale status. The Ministry has communicated its consent to the enhancement of this limit to 49%. Non-small scale units can manufacture items reserved for the small scale sector only after obtaining an industrial license. In such cases the non-small scale unit is required to undertake an obligation to export 50% of the production of SSI reserved items. The Ministry is also making a reference to the Department of IP&P about reduction of this export obligation to 30% as recommended by the Study Group.

last meeting was held on 02-09-2004. On the recommendations Government de-reserved 85 items on 20-102004. As on date, 605 items are reserved for exclusive manufacture in the small scale sector. Enhancement of investment limit, for export oriented/high tech items reserved for manufacture in SSI sector, from Rs. 1 crore to 5 crore

4.0 ENHANCEMENT OF INVESTMENT LIMIT FOR EXPORT ORIENTED / HIGH TECH ITEMS
In order to enhance the competitiveness of the small scale sector, in the changing scenario of economic liberalization and globalization, the investment limit in respect of certain hi-tech and export oriented items was enhanced to Rs.5 crore enable them to undertake technological upgradation. During the year 2003-04, investment limit in respect of seven items of sports goods reserved for exclusive manufacture in small scale sector was enhanced and notified vide Notification No. S.O.1109 (E) dated 13-10-2004. With this, the number of items, which have investment ceiling of Rs.5 crore in plant and machinery has risen to 71.

6.0 SMALL INDUSTRIES SERVICE INSTITUTES

The scheme has been continuing from the 6
th

Five Year Plan. Out of the 58 SISIs / Br. SISIs, 15 SISIs/Br.SISIs are in the backward and hilly areas of the country. The main activities of Small Industries Service Institutes/Branches are as follows:
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Assistance/Consultancy to prospective and existing Entrepreneurs, Preparation of State Industrial Profile and District Industrial Potential Surveys,

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Preparation/updation of project profiles, Holding of Entrepreneurship

tiny units through workshops set up in these institutes. During the year, 3630 units were assisted by way of developing high tech jigs, fixtures, tools, models, prototypes etc.and 2416 trainees are to be trained in the area of Mechanical, Metallurgy, Chemical, Food and Glass & Ceramic technology. 69 District Potential Survey Reports and 10 State Industrial Survey Reports have been prepared upto December, 2004.

Development Programmes, Motivational Campaigns, Management Development Programmes, Programmes,

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Skill

Development

Production Index, Energy Conservation, Pollution Control, Quality Control & Upgradation, Export Promotion, Ancillary Development, Common facility workshop/Lab, Preparation of Directory of specific industry,

7.0 UPGRADATION OF WORKSHOP INTO MINI TOOL ROOM

A few workshops have been converted into Mini Tool Rooms and provided hi-tech machines, CAD/CAM software, CNC machines etc. have been provided to the selected workshops like SISI Mumbai, Chennai, Bangalore, Jaipur, Delhi, Kolkata, Kanpur, Ludhiana, Indore, Patna, Goa, Thrissur, Guwahati, Jammu, Ranchi, Br. SISI Mangalore, Varanasi, Gwalior. Further to keep pace with technological requirements, more CAD/CAM, computer aided facilities have been added in selected SIDO field offices as per the need of the local industry. 15000 educated unemployed youth are to be trained in the area of IT, Computer Aided Designing/ Computer Aided Manufacturing (CAD/CAM), including specialized training on CNC machines. In the coming years, all the will be workshops attached with SISIs

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Intensive Technical Assistance, Coordination with DICs and other state government official,

Undertaking of Market Surveys. The SISIs also perform job works and

6.1

provide common facility services to the small /

SISI, Agartala organised a two-week Management Development Programme on Marketing Management from 13th to 24th September, 2004 at Agartala. On this occasion Dr. V. S. Murthy, Director, SISI, Agartala delivering the welcome address

equipped with CAD/CAM software and hi-tech machines.

8.0 ADVERTISING & PUBLICATIONS/LAGHU UDYOG SAMACHAR

Advertising and Publications
The Advertising and Publication Division of Small Industry Development Organization (SIDO) creates awareness about Government Policies and Programmes; Incentives & Facilities, Institutional Support Services available to the Small Scale Sector. It coordinates with DAVP & SIDO offices for timely publication of advertisements on different entrepreneurship development training courses, management development programmes, skill development courses in newspapers in different parts of the country in its local languages.

various issues pertaining to the Small Scale Industries. 9.2 On the occasion of the Golden Jubilee of

SIDO (1954-2004), a Commemorative Issue of Laghu Udyog Samachar was released on August 30, 2004. During the year, 2004-05 the following publications were brought out: (i) Final Results: Third All India Census of SSI 2001-02 (ii) SIDOs Half Century English Hindi Bilingual English

(iii) SIDOs Half Century (iv) Laghu Udyog Samachar January June, 2004 (v) Laghu Udyog Samachar January-June, 2004

Bilingual

9.0 LAGHU UDYOG SAMACHAR AND OTHER PUBLICATIONS

9.1 Laghu Udyog Samachar, a Quarterly

10.0 INFORMATION & FACILITATION COUNTER (IFC)

The Information and Facilitation Counter (IFC) in the office of DC (SSI) disseminates updated information for the benefit of the prospective and existing entrepreneurs on the services and activities of the DC (SSI) and related institutions in the area of small scale industry promotion and development. The Information Counter is computerized and supplemented by hard copies of information such as brochures, pamphlets, books, etc. The services made available are (i) counseling & information on how to set up a SSI unit, (ii) supply of technical information, project reports and details of various programmes,

Journal in English and Hindi for Small Scale Industry Sector is disseminating updated information for the benefit of the prospective and existing entrepreneurs. Laghu Udyog Samachar is an important window in print for the small scale industry sector, providing access to the latest information on a variety of topics. It creates awareness and disseminates information on policies and programmes of the Central and the State Governments, Government of India Orders, Circulars, Gazette Notifications, field activities, statistical and economic information as well as articles on

(iii) guidance on policies concerning small enterprises and schemes of various State Governments, (iv) information on the registration scheme and supply of registration forms, (v) information on the IDR Act and the Notifications on definition, etc. issued under the Act. (vi) educates on Credit Policies of the Government, (vii) supply of statistics related to the small scale industries, (viii) technical and marketing information concerning small scale industries, (ix) list of Items reserved for exclusive manufacture in the SSI sector.
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sector, national and state level industry associations, NGOs, to establish linkages with existing databases and the entrepreneur, for development and promotion of the small scale sector, to carry out office automation in the office of the DC(SSI) for bringing out transparency in the functioning of the office, to create a Website for hosting data available within the organization,
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11.0 SMALL ENTERPRISE INFORMATION & RESOURCE CENTRE NETWORK (SENET)

Small Enterprise Information & Resource Centre Network (SENET), was launched by the Office of the DCSSI in April, 1997, at an estimated cost of Rs. 434.5 lakh. The scheme was modified and its scope was enlarged to include office automation. The modified scheme was approved in March, 2000 at the estimated cost of Rs. 1140.38 lakh. The scheme continued in X plan with an outlay of Rs 1700 lakh. The objectives of the SENET project are:
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to host alliance databases in order to serve as a one-stop-shop for information seekers, industry associations and also individual industries.

Actual Performance
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20 SENET centers were initially given servers & networking components for 64 KBPS leased line connectivity to the main center and database building, with trained staff. 10 more SISIs were provided with computer hardware and training to the staff during 2002-03. Servers of 64 KBPS, ISDN dialup connectivity and LAN is being set up in these SISIs during the current year.

to pioneer, create and promote databases and information,

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A website was created and launched in 2000. It was upgraded to a knowledgebased database driven, interactive portal and launched on August 30, 2001. This portal now has more than 8000 pages of static information and is being updated twice weekly. It has a message board,

to facilitate networking amongst the information seekers, of the small scale sector, including the central/state governments, government agencies engaged directly or indirectly in the promotion and development of the SSI

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online polls section, on line events section, monthly e-news bulletin, etc.
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Under office automation of SIDO, 170 PCs were provided to the officers, upto Section Officer level along with LAN connectivity. Main Center infrastructure developed with Server room along with 9 servers including 2 web servers hosting the web portal and 3 database servers were commissioned along with leased line connectivity and a structured LAN.

12.0 CONSTRUCTION OF OFFICE ACCOMMODATION FOR SIDO FIELD OFFICES

90% of the SIDO offices located in various parts of the country have their own permanent buildings which were constructed out of the funds allotted under the scheme. During the year 2003-04, building with vacant land was purchased for SISI, Solan. Efforts are being made to purchase a piece of land for SISI Ahmedabad for construction of its own building. The building for remaining SISIs building will be constructed during 10 Five Year Plan. Further, under this scheme, funds are being provided for maintenance/renovation of the SIDO buildings.
th

A multimedia presentation package on SIDO as well as SSI sector were brought out in the form of CD-ROM. Revised version 2.0 of the CD was released in 2001. The latest version 3.0 is now being released.

Security audit was carried out and the entire infrastructure was reinforced with Intruder Detection System and other security measures.

12.1 Construction of residential accommo-dation for the officers & staff of SIDO in N.E. Region, Hilly Areas, Union territories and Backward and Difficult Areas.
To provide residential accommodation to the officers and staff of SIDO posted in North Eastern and other far flung areas where suitable rented accommodation at reasonable rent is not available, residential accommodation is constructed. Since the inception of the scheme, residential accommodation at Srinagar, Guwahati, Aizwal, Tura, Tezpur and Port Blair have been constructed. Construction is under progress at Silvasa.

Online Search Facility for ISO 9000 reimbursement cases was launched during November 2004.

Monthly E-Newsletter was launched from December, 2004 SENET has been awarded the Golden

Icon National Award 2005 for Best Documented Knowledge Resource under Professional Category by the Deptt. of Administrative Reforms & Public Grievances, Government of India and the Department of Information Technology.

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13.0 LIBRARY
SIDO is maintaining Libraries at its Hqrs. office at Nirman Bhawan and in all its field Institutes. These libraries are a source of information and are maintained with the objective of making available the technical information required for the development of small scale industries. In the era of Information Technology the SIDO libraries are being equipped with computers, photostat machines, internet connectivity in a phased manner. During the year more than 50 technical journals were purchased. About 30 libraries attached with SISIs/RTCs were modernized and equipped with computers, technical books with an expenditure of Rs.22.00 lakh.

been sanctioned for the same. Upto Dec., 2004, 163 MDPs have been conducted benefiting 3100 entrepreneurs. 148 MDPs are expected to be conducted during remaining months of the financial year for about 3700 entrepreneurs.

15.0 SIDO OFFICERS TRAINING PROGRAMME

During the year 2004-05, it was decided to nominate 400 officers/ officials incurring the budgeted expenditure of Rs. 50.00 lakh for training of its officers and officials posted at its field offices i.e. Small Industries Service Institute, Branch Institutes, Regional Testing Centres etc. located all over India as well as from its Headquarters at New Delhi. 322 officers / officials have been nominated for different training programmes within the country upto November 30, 2004.

14.0 MANAGEMENT DEVELOPMENT PROGRAMMES

Organizing of Management

Development Training programmes constitutes an integral part of the activities of SIDO, besides counseling and consultancy services. The objective of imparting training in management subjects is to improve decisionmaking capabilities resulting in higher productivity and profitability of existing and potential entrepreneurs. Inputs on scientific/ modern management trends/practices are provided to the participants in short duration sessions, by experts. 14.1 During the year 2004-2005, 340 MDPs will be held for 7000 entrepreneurs/ participants, an amount of Rs.40.69 lakh has

16.0 ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES

Motivation and Training are the two crucial inputs for promoting entrepreneurship and sustaining the growth of existing smallscale industries. Small Industry Development Organization (SIDO) has been providing these inputs regularly through various Small Industries Service Institutes (SISIs). Regional Testing Centres (RTCs) and SEPTI, Tiruvalla. 16.1 Entrepreneurship Development

Programmes are being organized as a regular

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benefiting 8700 entrepreneurs and about 260 EDPs are expected to be conducted during the remaining months of financial year 2004-05, for about 6300 entrepreneurs.

17.0 WORLD TRADE ORGANIZATION (WTO) CELL

Shri A. Sahasranaman, Principal Secretary (Industries & Commerce), Govt. of J & K distributing certificate to one of the trainee. The samples of Cricket Bat & other sports goods, produced by the trainees during the programme, are exhibited on the table

The Cell is maintaining a close liaison with other concerned Ministries and Departments like Ministry of Commerce & Industry, Directorate General of Foreign Trade, Directorate General of Anti-dumping & Allied Duties, DG (Safeguard), so as to keep updated with regard to WTO Agreements and to protect the interest of the small scale industries. 17.1 Various vital issues which arose due to the Fourth WTO Ministerial Conference Doha were dealt with. Requisite feedback on the modalities for negotiations on nonagricultural products was sent to Department of Commerce, Ministry of Commerce & Industry. 17.2 Similarly, inputs to Ministry of Commerce and Industry, Department of Commerce were also sent in regard to various Bilateral Trade Agreements under which negotiations are going on for exchange of tariff concessions. These Agreements are SAARC Preferential Trading Arrangement (SAPTA), Bangkok Agreement with Republic of Korea, China, Sri Lanka and Bangladesh, Agreement on Economic Cooperation between India & ASEAN countries (Brunei, Darussalem, Cambodia, Indonesia,

training activity to cultivate the latent qualities of youth both (men & women) by enlightening them on various aspects that are necessary to be considered while setting up enterprises. The duration of these training programmes varies from 4 to 6 weeks with a minimum intake of 20 participants in each course. The course contents of such Entrepreneurship Development Programmes were so designed so as to provide useful information on product/ process design, manufacturing practices involved, testing and quality control, selection and usage of appropriate machinery and equipments, project profile preparation, marketing avenues/techniques, product/service pricing, export opportunities, infrastructure facilities available, financial and financial institutions, cash flow, etc. 16.2 During the year 2004-05, SIDO will be conducting 619 EDPs for about 15000 entrepreneurs in the country and an amount of Rs.216.31 lakh has been sanctioned. Upto Dec.,2004, 346 EDPs have been conducted

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Laos, Malaysia, Myanmar, Phillipines, Singapore, Thailand, Vietnam), India Singapore Comprehensive Economic Cooperation Agreement (CECA) Preferential Trade Agreement between India and MERCOSUR (Created by Argentina, Brazil, Paraguay and Uruguay), Agreement on SAFTA, Preferential Trade Agreement with Chile and India-Thailand, Free Trade Agreement.

18.0 NATIONAL AWARD FOR SMALL SCALE ENTREPRENEURS

To boost the morale and motivate small scale entrepreneurs to set up and manage SSI units so as to achieve higher levels of productive management through modernization, quality upgradation, market expansion, export development, innovation and technological improvements, an incentive-cum-recognition scheme of National Awards to Small Scale Entrepreneurs is in operation. The Awards consist of a certificate, a trophy and cash prizes amounting to Rs. 25,000, Rs. 20,000 and Rs. 15,000 for first, second, third positions, respectively. Special Awards at par with the National Award to an outstanding SC/ST and a woman entre-preneur have also been introduced since 1993. Special Recognition Awards carrying cash prize of Rs.10,000, a certificate and a trophy is given to an entrepreneur from each State/UT. 18.1 For the Year 2002, 20 entrepreneurs were selected from various States/UTs for the abovementioned awards. Dr. Manmohan Singh,
National Awards Presentation National Awards Presentation

Honble Prime Minister of India gave these

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19.0 SUB-CONTRACTING EXCHANGE FOR ANCILLARY DEVELOPMENT

Following the announcement of the liberalized policy, a scheme for setting up of Sub-Contracting Exchanges by Industries Associations/NGOs was launched. Under this scheme the financial assistance upto Rs. 4.7 lakh is provided for purchasing the capital
SSI Convension/Golden Jubilee Celebration - felicitating former Development Commissioner, SSI

equipment such as computer and accessories, suitable software, furniture, photocopier machine, telephone, fax machine, spiral binding and cutting machine etc. So far 54 SubContracting Exchanges have been set up by Industries Associations/NGOs in various parts of the country (upto November, 2004). Five more Sub-contracting Exchanges are likely to be set up by the end of the financial year 2004-2005.

awards in a glittering function held on August 30, 2004 at Vigyan Bhawan, New Delhi. 18.2 National Awards for Research & Development Efforts in Small Scale Industries: The Govt. of India has instituted a scheme of National Award for Research and Development Efforts in the Small Scale Industries, to promote the concept of in-house research and development efforts for strengthening technical soundness and spirit of innovation amongst the units, in the larger interest of overall qualitative development of the Small Scale Industries. 18.3 The First, Second and Third Award under this scheme carries cash prizes of Rs. 25,000, Rs. 20,000 & Rs. 15,000 respectively besides a trophy and a certificate per annum. 18.4 For the year 2002, Dr. Manmohan Singh, Honble Prime Minister of India honoured 3 Entrepreneurs on August 30, 2004.

20.0 VENDOR DEVELOPMENT PROGRAMME

Under the existing schemes, Vendor Development Programme both at National and State Level are conducted by Small Industries Service Institutes. These Vendor Development Programmes provide a common platform for large scale industries i.e. purchasing organizations and small scale industries as sellers, to interact with each other and establish long term business linkages. About 40-45 Vendor Development Programmes are conducted in a year of which 8-10 are at the National Level. 15 Vendor Development Programmes have been conducted by the Small

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provides one time assistance upto 90% of the cost of machinery and equipment (limited to Rs. 9 crore) for setting up a new Mini Tool Room and 75% cost of machinery and equipment limited to Rs. 7.5 crore for upgradation of existing Mini Tool Rooms. The balance machinery cost and the cost of land and building and recurring expenditure is to be funded by the concerned State Government.
A section of audience during the inaugural session of the National Level Exhibition-cum-Vendor Development Programme

Objectives
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manufacture of jigs, fixtures, cutting tools, gauges, press tools, plastic moulds, forging dies, pressure casting dies and other tooling for small scale industries. Advanced tool making processes using CAD/CAM techniques are to be adopted.

Industries Service Institutes, in the different part of the country till November, 2004 and about 25 Vendor Development Programmes are likely to conducted by the end of the financial year.

to provide training facility in tool manufacturing and tool design to generate a work force of skilled workers, supervisors, engineers/designers etc.

to work as a Nucleus Centre for providing consultancy, information service, documentation etc. for solving the

Group Captain of Air Force and other dignitories visiting the stalls

problems related to tooling of industries in the region.

21.0 MINI TOOL ROOM TRAINING CENTRE

&

to act as a Common Facility Centre for small scale industries and to assist them in product and prototype development.

A Mini Tool Room Scheme has been launched, to help State Governments to set up Small Tool Rooms, for creating localized training and production facilities and for rendering assistance to the small scale units, in the field of Tool & Die Making. The scheme

Present status The proposals received for Mini Tool Rooms from Governments of Kerala, Madhya Pradesh, Karnataka & West Bengal for Upgradation of their existing tool rooms have

16

been approved and procurement of machinery & equipment is in progress. The proposals from Governments of Nagaland, Tripura and Jharkhand for setting up new Mini Tool Rooms have also been approved.

22.1 Besides, RTCs also render technical support to the small scale units in upgrading the quality of the products manufactured by them. They also provide Consultancy Services in testing and quality management and in process quality system to SSIs. 22.2 All the RTCs are accredited by internationally recognized NABL certification as per ISO 17025 for Laboratories. RTC, Mumbai has also been recognized by SASO (Saudi Arabian Standards Organization) and are testing products exported to that region in addition to Europe and South Africa as per IEC/ BSEN/SABS standards. 22.3 The performance of RTCs during last three years and the self-sufficiency level of these centers are as follows:-

22.0 REGIONAL TESTING CENTRES/FIELD TESTING STATIONS (RTC/FTS)

Four Regional Testing Centres (RTCs) located at New Delhi, Mumbai, Chennai and Kolkata provide testing facilities to small scale industrial units for raw materials, semi-finished products and finished products manufactured by them. These centres are equipped with the state of art indigenous and imported equipment, in the disciplines of Chemical, Mechanical, Metallurgical and Electrical Engineering. The Centres also undertake Performance test, Type test and Acceptance test of semi-finished, finished products and also calibration works for measuring instruments and equipment. They are also engaged in development of testing processes of various products.

23.0 FIELD TESTING STATIONS

In order to provide testing facilities in the areas of industry clusters, the Government of India have set up Field Testing Stations at Jaipur, Bhopal, Kolhapur, Hyderabad,

Performance of Regional Testing Centres

Year Revenue earned (Rs. lakh) 245.54 238.80 258.50 186.90 Recurring Expenditure (Rs. Lakh) 341.23 344.30 343.18 292.33 %age of revenue/ expenditure (selfsufficiency level) 71.95 69.35 75.32 63.94 No. of jobs completed 13732 12336 12409 8564 No. of tests performed 134860 134646 139569 107596

2001-2002 2002-2003 2003-2004 2004-2005 upto Dec.04

17

Pondicherry, Chenganacherry and Bangalore. These Testing Centres extend facilities for testing of various products viz. chemicals, dyestuffs, lamps, rubber products castings and forgings, paints and varnishes, domestic electrical appliances, general engineering etc.

and working capital has to be borne by the Industry Association/State Government. 24.1 The scheme covers the Testing

Laboratories established by Industries Associations including Chamber of Commerce, Industrial Co-operatives registered under the Societies (Registration) Act or under any statutory Act. It also covers expansion/ modernization of the existing centers under the aegis of State Government and State Government funded autonomous bodies. 24.2 The objective of the scheme is to promote setting up of testing centers to offer facilities mainly to Industrial units including SSI units located in the State for testing the quality of raw materials, components and the end products as per the relevant standard specifications.

24.0 SETTING UP OF TESTING CENTRES BY INDUSTRY ASSOCIATIONS & MODERNISATION / EXPANSION OF QUALITY MARKING CENTRES UNDER THE AEGIS OF STATE GOVERNMENT
Under the plan scheme, Government of India provides one time capital grant in aid equal to 50% of the cost of testing machinery and equipment, restricted to Rs. 50 lakh, to the Industries Associations which wish to set up and operate testing laboratories of international standards and also for modernization/ expansion of existing Quality Marking Centres of State Governments and their Autonomous bodies. Rest of the expenditure on testing machinery and equipment, land and building

18

24.3 Under the scheme, 12 Testing Centres have been provided central grant-in-aid. Out of these, 5 Testing Centres have been set up by the Industry Associations and the remaining 7 are Quality Marking Centres under the aegis of different State Governments. Budget provision of Rs.50 lakh has been made for the year 2004-05.

25.1 Seventy eight clusters have so far been taken for development under SICDP which comprised thirty nine clusters for the year 200304 and eighteen clusters till December during 2004-05. The list of clusters taken up during 2004-05 is as below:
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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, Madhya Pradesh Brass & Bell Metal, Khurda, Orissa Agricultural Implements, Moga, Punjab Ball Bearings, Jaipur, Rajasthan Leather Footwear, Agra, Uttar Pradesh Leather Goods, Shaniniketan, Uttar Pradesh Installation of Common Facility Centre in Brass/ Bronze Utensils Manufacturing Cluster at Pareb, Bihar Development of Whiteware Cluster at Khurja, U.P. Development of Auto Parts Clusters at Phagwara, Jalandhar and Ludhiana Development of Cane & Bamboo

25.0 SMALL INDUSTRY CLUSTER DEVELOPMENT PROGRAMME

The Office of the Development

! !

Commissioner (SSI) had launched a scheme on Technology Upgradation and Management Programme called UPTECH in 1998 for cluster of industries, where there is commonality in the method of production, quality control and testing, energy conservation, pollution control etc. among the units (of the cluster). The scheme focused on technology development of the cluster. In view of globalization of economy, small scale sector faces a stiff competition not only on quality and price front but other fronts, like marketing, export, raw material
! ! ! ! ! ! ! !

procurement etc. and a collective approach by the SSI units to mitigate the common problems of the cluster have been considered to be effective for cluster development. The scheme has, therefore, been renamed as Small Industry Cluster Development Programme (SICDP) so that it can focus on all the aspects viz marketing, export, study visit, skill upgradation, etc. for development of the cluster in addition to technology as a holistic approach is more appropriate for cluster development.
! ! !

Cluster at Dimapur, Nagaland 25.2 In addition to this, a National Resource Centre was set up at NISIET, Hyderabad to train

19

Cluster Development Executives, carry out research related to cluster development etc. 25.3 Development of Toy Industry, Stone Industry, Machine Tool Industry, Lock Industry and Hand Tool Industry have been taken up as a National Programme in collaboration with UNIDO at a project cost of US$ 2.2 million, US$ 1.2 million, US$ 1.2 million, US$ 1.2 million and US$ 0.75 million, respectively. GOI contribution for the programme is US$ 1.1 million, US$ 0.6 million, US$ 0.6 million US$ 0.48 million and US$ 0.3 million, respectively.

The scheme provides one time reimbursement. The amount of subsidy/financial support if already received from the State Govt./financial institution shall be adjusted against the entitlement of reimbursement under this scheme. Govt. of India has extended the Scheme th upto the 10 Five Year Plan, i.e., March 31, 2007.

26.0 ISO 9000 / ISO 14001 CERTIFICATION REIMBURSEMENT SCHEME

The scheme for ISO 9000 reimbursement, in operation since March 1994, was enlarged to include reimbursement of expenses for acquiring ISO 14001 certification also with effect from October 28, 2002. The salient features of the scheme are:
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26.1 During the year 2004-05, 2011 SSI units have been reimbursed Rs.10.72 crore upto 31.12.2004. About 4000 SSI units are expected to be benefited through this scheme during the year 2004-05. 26.2 Awareness/Motivational & Educational Training Programme on IS0 9000/ 14001: Office of the DC (SSI) has simultaneously taken up Awareness/Motivational & Educational Training Programme on ISO 9000 and TQM through its field Institutions (SISIs & RTCs) to sensitize the Small Scale Industries in ISO 9000 and TQM Quality Systems so that they are motivated to adopt the International Quality System and become competitive in the global market. So far about 200 programmes (one/two/four/five days duration) have been conducted and 7223 participants have been benefited upto December, 2004.

The Scheme envisages reimbursement of charges for acquiring ISO-9000/14001 (or its equivalent) certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in total.

All Small Scale industries with Permanent Registration are eligible to avail the Incentive Scheme.

27.0 MODERNIZATION OF SIDO WORKSHOPS

This is an ongoing Plan Scheme with the th allocation of Rs.500 lakh during the 10 Plan for the workshops attached to SISIs/Br.SISIs. Funds are generally provided to SISIs/Br.SISIs for replacing their outdated/out of order machi-

The scheme is applicable only to those units who have already acquired ISO 9000 (or its equivalent)/ISO 14001 certification.

20

nes. Funds are also being provided for purchase of accessories, equipments which are required for these machines for developing Jigs, Fixtures, Dies, and Tools etc. On these machines, training is also imparted to the workers sponsored by SSI units and unemployed youth seeking jobs in SSI units. During the year Rs. 45 lakh were spent to upgrade the existing infrastructure and Rs.5 lakh in N.E region.

28.0 ENERGY CONSERVATION PROGRAMME (UNDER TECHNOLOGY UPGRADATION SCHEME)

In pursuance to the National Programme on Energy Conservation, SIDO launched this programme for Small Scale Industries in 199091. There are many energy intensive areas in Small Scale Sector, such as foundry, forging, steel steel re-rolling mills, SSI units adopting Energy audits to improve energy efficiency and fuel substitution, and monitoring the implementation of recommendations. 28.1 During the year 2004-05, 30 Awareness and Motivationalcum-Educational Programmes on Energy Conservation at the cost of Rs. 1.80 lakh have been allocated to SISIs for the benefit of about 900 SSI units.

developing exports. The Scheme covers districts which are not covered under the Growth Centres Scheme. The aim of the IID Scheme is to provide developed sites with infrastructural facilities like power distribution network, water, tele-communication, drainage and pollution control facilities, roads, banks, raw materials, storage and marketing outlets, common service facilities and technological back-up services etc. The Scheme covers rural as well as urban areas with a provision of 50% reservation for rural areas and 50% industrial plots are to be reserved for tiny sector. The Scheme also provides for upgradation/strengthening of the infrastructural facilities in the existing old industrial estates. 29.1 The estimated cost to set up an IID Centre is Rs. 5.00 crore (excluding cost of land). Central Government provides 40% to a maximum of Rs.2.00 crore as grant and remaining amount could be loan from SIDBI/ Banks/Financial Institutions or the State funds. 29.2 Special dispensation for NE Region (including Sikkim), J&K, H.P and Uttaranchal: With a view to give a fillip to the growth of small industries in the North East Region and a few other states, Govt. of India relaxed the funding pattern of this Scheme for North 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 the remaining amount could be loan from SIDBI/ Banks/Financial Institutions or the State funds. Such agencies should have good track record and sound financial position.

29.0 INTEGRATED INFRASTRUCTURAL DEVELOPMENT (IID) SCHEME

The Integrated Infrastructural Development (IID) Scheme was launched in 1994, with the objectives to promote small scale and tiny units, creating employment opportunities and

21

29.3 Progress : Till 31.12.2004, the Central Government has approved the setting up of 97 centres in various states including 13 projects for upgradation of infrastructure in the existing industrial Estates. During the year 2004-05(upto December, 2004), 5 new IID Centres have been sanctioned. Out of the total central grant of Rs.179.08 crore committed for these projects, an amount of Rs.82.43 crore has been released upto Dec. 2004. About 23000 sites are proposed to be developed in these centres and 5597 sites have been allotted to the small/tiny units.

Directorates of Industries and (vi) Conducting census 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 in estimating the mortality rates of Small Scale Industrial Units in various lines of production; and (ii) to provide Industry wise (2-digits level of NIC) ratios of SSI units, in respect of estimated investment, employment, production, capacity utilization, exports, gross/net value added, value of raw material consumed etc. 30.3 So far two sample surveys have been conducted during 1994-95 and 1999-2000 and one on Diagnostic Survey on sickness during 1982-83.

30.0 SCHEME ON COLLECTION OF STATISTICS OF SSIs

The scheme was started with the objective to collect, compile and disseminate statistical data/information on small scale industrial sector. Conduct of Census, Sample Survey, Collection of IIP data and Updation of frame are covered under the scheme. The scheme is implemented through State Directorates of Industries (SDIs) and Districts Industries Centres (DICs). 30.1 Under the Scheme the following work are being undertaken: (i) Computation of Index of Industrial Production for small-scale sector for working out growth in production; (ii) Supply of monthly production data to Central Statistical Organization (CSO) so as to represent SSI sector in the overall Index of Industrial Production (IIP) brought out by CSO; (iii) Estimation of information on number of un-registered units; (iv) Estimation of production, employment of both registered and unregistered units; (v) Updation of Frame and analysis of registration data and correspondence with State/UT

31.0 THIRD CENSUS

The Census, besides updating the previous Census data, helps in identifiying shift/ changes taken place in the small scale sector. The first census was conducted in 1973-74 and the reference year was calendar year 1972. Second census was conducted in 1990-91 with the reference year was financial year 1987-88. 31.1 After a gap of about 12 years, the Office of the DC(SSI) launched the Third Census in November, 2002. In this census, the units registered permanently upto March 31, 2001 were covered on complete enumeration basis. A total of 22,62,401 units were surveyed. Out of these, 13,74,974 units were found to be working and remaining 8,87,427 units (39%) were found closed.

22

31.2 The Unregistered SSI sector was surveyed for the first time in the third census. This sector was surveyed using a two-stage stratified sampling design. Out of 9,94,357 villages and urban blocks, 19,579 villages and

urban blocks were surveyed to identify the units of unregistered SSI sector. The size of the unregistered SSI sector is estimated to be 91,46,216. This comprises 38.75 % SSIs and 61.25 % SSSBEs.

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

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Characteristics 10. No. of units managed by : SC ST OBC Others 11. No. of units managed by women 12. Main source of power : No power needed Coal Oil LPG Electricity Non-conventional energy Traditional energy/ Firewood 13. No. of units having outstanding loan as on 31-3-2002 14. No. of units having outstanding loan with institutional sources as on 31-3-2002 15. No. of sick units (with erosion of net-worth by more than 50 % or delay in repayment of institutional loan by more than 12 months) 16. No. of incipient sick units (decline in gross output over three consecutive years) 17. No. of sick units as per RBI criteria, i.e., those that are sick among units having outstanding loan with institutional sources

Registered SSI sector

Unregd. sector

Total SSI sector

1,07,934 (7.85 %) 48,560 (3.53 %) 5,29,406 (38.50 %) 6,89,074 (50.12 %) 1,14,361 (8.32 %) 3,60,611 (26.23 %) 28,841 (2.10 %) 40,401 (2.94 %) 7,222 (0.53 %) 8,99,657 (65.43 %) 7,142 (0.52 %) 31,100 (2.26 %) 2,76,333 (20.1 %) 1,96,137 (14.26 %) 46,431 (3.38 %)

9,43,969 (10.32 %) 4,74,271 (5.19 %) 38,11,372 (41.67 %) 39,16,604 (42.82 %) 8,80,780 (8.37 %) 38,55,035 (42.15 %) 2,95,165 (3.23 %) 5,55,416 (6.07 %) 55,237 (0.60 %) 40,25,262 (44.01 %) 60,539 (0.66 %) 2,99,562 (3.28 %) 5,01,306 (5.48 %) 2,82,267 (3.09 %) 58,338 (0.64 %)

10,51,903 (10 %) 5,22,831 (4.97 %) 43,40,778 (41.26 %) 46,05,678 (43.8 %) 9,95,141 (9.46 %) 42,15,646 (40 %) 3,24,006 (3.1 %) 5,95,817 (5.66 %) 62,459 (0.59 %) 49,24,919 (46.8 %) 67,681 (0.64 %) 3,30,662 (3.14 %) 7,77,639 (7.39 %) 4,78,404 (4.55 %) 1,04,769 (1 %)

1,58,023 (11.5 %) 38,403 (19.6 %)

5,92,899 (6.48 %) 46,887 (16.61 %)

7,50,922 (7.14 %) 85,290 (17.8 %)

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Characteristics 18. No. of sick/ incipient sick units (with erosion of net-worth by more than 50 % or delay in repayment of institutional loan by more than 12 months or decline in gross output over three consecutive years) 19. Reasons for sickness/ incipient sickness : Lack of demand Shortage of working capital Non-availability of raw material Power Shortage Labour Problems Marketing problems Equipment problems Management problems 20. Per unit employment 21. Total employment 22. Per unit original value of Plant & Machinery (in Rs.lakhs) 23. Total original value of Plant & Machinery (in Rs.lakhs) 24. Per unit fixed investment (in Rs. Lakhs) 25. Total fixed investment (in Rs. Lakhs) 26. Per unit Gross Output (in Rs.lakhs) 27. Total Gross Output (in Rs. Lakhs) 28. No. of exporting units 29. Value of exports (in Rs. lakhs)

Registered SSI sector 1,92,328 (13.98 %)

Unregd. sector 6,30,568 (6.89 %)

Total SSI sector 8,22,896 (7.82 %)

1,11,508 (58 %) 1,09,844 (57 %) 23,493 (12 %) 33,099 (17 %) 12,182 (6 %) 70,202 (37 %) 16,995 (9 %) 9,124 (5 %) 4.48 61,63,479 2.21 30,32,868 6.68 91,79,207 14.78 2,03,25,462 7,344 12,30,826

4,35,121 (69 %) 2,69,648 (43 %) 76,029 (12 %) 77,345 (12 %) 26,282 (4 %) 2,24,002 (36 %) 76,038 (12 %) 21,088 (3 %) 2.05 1,87,69,284 0.27 24,56,492 0.68 62,55,660 0.86 79,01,536 43,262 1,89,130

5,46,629 (66 %) 3,79,492 (46 %) 99,522 (12 %) 1,10,444 (13 %) 38,464 (5 %) 2,94,204 (36 %) 93,033 (11 %) 30,212 (4 %) 2.37 2,49,32,763 0.52 54,89,360 1.47 1,54,34,867 2.68 2,82,26,998 50,606 14,19,956

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Characteristics 30. Employment per Rs. one lakh investment 31. Units maintaining accounts 32. No. of economic activities as per National Industrial Classification1998, pursued in SSI sector 33. No. of products/ services as per ASICC produced/ rendered in SSI sector 34. No. of reserved products (as per the reserve list effective on 31-3-2001) produced in SSI sector

Registered SSI sector Unregd. Sector 0.67 4,04,672 (29.43 %) 672 3.00 5,98,333 (6.54 %) 619

Total SSI sector 1.62 10,03,005 (9.53 %) 672

5,983

2,680

6,003

877

382

878

ESTIMATED NO. OF UNITS WITH RESPECT TO REASONS FOR NON-REGISTRATION Not aware of the provisions for registration Not interested Complicated procedures Local laws/ regulations do not permit Clearance not available from Municipality etc. 1.38 %
!

were surveyed on complete enumeration basis, of which 13,74,974 units (61 %) were found to be working and 8,87,427 units (39 %) were found to be closed.
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53.13 %

Of the 13,74,974 working units, 9,01,291 were SSIs and 4,73,683 were SSSBEs. Thus, the proportion of SSIs was 65.55 %. About 5.08 % of the SSI units were ancillary units. The proportion of the units operating 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 %) and Madhya Pradesh (7.41 %) had a share of 61.16 %.

39.86 % 3.87 % 1.76 %

31.3 Highlights of Third Census of SSI Sector

The main highlights of the Third Census of Small Scale Industries are as follows: Registered SSI sector
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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 %) and Maharashtra (6.11 %) had a share of 59.37 %.

All the SSI units permanently registered upto March 31, 2001 numbering 22,62,401

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The per unit employment was 4.48. The employment per rupees one lakh investment in fixed assets was 0.67.

The size of the unregistered SSI sector is estimated to be 91,46,216. Of these, only 38.75 % were SSIs and the rest were SSSBEs.

Rice milling industry topped the list in terms of gross output. In terms of exports, textile garments and clothing accessories industry was on top.
!

The reasons for non-registration were elicited in the Third Census. Interestingly, 53.13 % of the units informed that they were not aware of the provision for registration, while 39.86 % of the units indicated that they were not interested.

Compared to Second Census, the Third Census brought out some structural changes in the registered SSI sector. While the proportion of working units remained the same by and large, the domination of SSIs among the working units has been reduced considerably from 96 % to 66 %. This is mainly due to the increase in the number of units engaged in services. The per unit employment has gone down from 6.29 to 4.48. The per unit fixed investment has gone up from Rs.1.60 lakh to 6.68 lakh. This could be due to technological upgradation.
! !

About 45.38 % of the units were engaged in Services while 36.12 % were engaged in manufacturing and the rest of the 18.5 % in repair/ maintenance. Maximum number of unregistered SSI units (16.89 %) were located in Uttar Pradesh. The other States having very high concentration of unregistered SSI units were Andhra Pradesh, West Bengal, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Bihar, Rajasthan and Gujarat.

Unregistered SSI sector

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96.9 % of the units were proprietary units and about 1.13 % of the units were partnership units.

This sector was surveyed using a twostage stratified sampling design. Out of the 9,94,357 villages and urban blocks, 19,579 villages and urban blocks were surveyed to identify the units of unregistered SSI sector. Out of these, information was completely received in respect of 19,278 villages and urban blocks. In these villages and urban blocks, the enumerators selected 1,68,665 unregistered SSI units for survey, but they could actually survey 1,67,665 units.
! !

The average employment was 2.05 and the employment generated per one lakh fixed investment was 3 persons. About 10.13 % of the units were women enterprises and 57 % of the units were managed by socially backward classes.

Total SSI sector

!

The size of the total SSI sector is estimated to be over one crore (1,05,21,190). About

27

42.26 % of these units were SSIs and the rest were SSSBEs. The number of ancillaries among SSIs were 2.98 %.
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a Government of India Society under the Societies Registration Act 1860 in April, 1986. The main objective of setting of this Centre is to develop human resources to meet the essential requirements for transfer of technology in assembly and manufacturing of electronic items and parts to promote growth of electronics industry in the small scale sector. Significant Work done : (i) Setting up training facilities in the field of HF cable and fibre optics technology and Bio- Medical equipment; (ii) Software development for the institutes under SIDO; (iii) Developed Motor Speed Ratio meter; and (iv) The training modules are designed as per the need of the industry with more emphasis on hand on training.

About 47.22 % of the units were located in Uttar Pradesh, Andhra Pradesh, Maharashtra, Madhya Pradesh and Tamil Nadu.

The Services Sector emerged as the dominant component in the Total SSI Sector with a share of 44 % of the units.

Although registration is voluntary in the SSI sector, the registered SSI sector was found to be the cream of the total SSI sector. In terms of size, it was only 13 %, but in terms of investment its share was 59 % and it contributed to 59 % of the total production.

About 95.8 % of the units were of proprietary type of ownership. Entrepreneurs belonging to socially backward classes managed about 56 % of the units.

33.0 CENTRE FOR THE DEVELOPMENT OF GLASS INDUSTRY, FIROZABAD

Centre for the Development of Glass Industry was established by Government of India with the assistance of UNDP and active support of Government of Uttar Pradesh to promote and modernize glass industry by way of upgrading the conventional technologies presently in use and transfer of modern technology. The main objective of the centre is to provide technical support to the small scale glass industry by way of installation of energy efficient glass melting furnaces, auxiliary furnaces, introduction of new type of glasses and their standardization,

The number of women enterprises was 10.11 %. The number of enterprises actually managed by women was 9.46 %.

The number of women employees was of the order of 13.31 %. The employees belonging to socially backward classes numbered 57.45 %.

32.0 RESEARCH INSTITUTIONS

Electronics Service & Training Centre (ESTC), Ramnagar, Uttaranchal
Electronics Service & Training Centre (ESTC) was set up with UNDP assistance as

environmental protection and to introduce

28

developed techniques for the decoration of glasswares and training for skill development so as to improve the quality and productivity of glass units. Significant work done : (i) Developed and constructed a fuel efficient Pot Arch Furnace; (ii) Erected an electric operated Rounder Furnace for making small solid glass beads of size 0.5 mm diameter; (iii) Construction of pot arch and development of Pot Transfer Trolley; (iv) Achieved fuel saving by way of modification in conventional 12 pot furnace and by way of insulation of crown and damper to the extent of 300 NM and 500 NM the glass respectively; and (v) Helped

Major activities during the year 20042005

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Training: The Centre has organised five

training courses on Sports Goods manufacturing at Meerut (U.P.), Srinagar (J&K) & Jalandhar (Punjab). 77 candidates participated in these training courses.
!

Seminar: A get-together with industrial

units was organized on September 25, 2004 at PPDC, Meerut with a view to familiarize industry members with the latest common facilities of the Centre. 92 participants attended the programme.
!

R&D Activities : The following R&D

industry in monitoring the ambient air quality and flew gas ana-lysis of the furnaces stack for suggesting better combustion control practices.

activities are under process: New Type Clicking Press (Prototype). Cricket Ball Panel Hole Piercing Machine (Prototype) before stitching. Cricket Ball Leather by Alum Combination tanning.
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34.0 PRODUCT-CUM PROCESS DEVELOPMENT CENTRE MEERUT

PPDC (Sports Goods & Leisure time equipments), Meerut was set up in 1984 as a Govt. of India Society with UNDP assistance mainly to cater the technical need of sports goods industry in the country. The institute aims at upgradation as well as improvement in existing technology, quality control, in house R&D activities and providing workshop and testing facilities to the sports goods and allied industry.

Survey/Study Report : Presentation

Programme of Study Report for Sports Goods Cluster at Jalandhar, prepared for UNIDO was conducted on August 25, 2004 .112 members of the sports goods industry attended the programme.
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Branch PPDC, Jammu: With a view to

activate the Br. PPDC, Jammu, two machines and other equipment have been installed and action for installation of electric connection of 10 KVA is under process.

29

Other activities : The vehicle is provided

to collect and eliver the job work at the site of unit to attract the job works and to facilitate the units.

35.1 Special work done : PPDC, Agra has conducted a diagnostic study and made a report of PAREB Cluster of Brass utensils manufacturing units. In this connection, an

Section-wise details of Common Facility & Testing Services - PPDC, Meerut

Sl. No. 1. 2. 3. 4. 5. 6. Name of the Section No. of Jobs attended 62 76 147 1 105 391 No. of units benefited 24 29 37 1 26 117 Revenue earned (Rs.) 40,592.00 6,11,856.00 74,721.00 6,500.00 2,50,168.00 2,000.00 9,85,837.00

Leather Processing Workshop Mechanical Workshop Wood Workshop Rubber/Plastic Workshop Testing Lab Training Total

35.0 PROCESS & PRODUCT DEVELOPMENT CENTRE, AGRA

The Process & Product Development Centre, Agra, a National level Centre, was established by Govt. of India with the support of Govt. of UP and assistance of UNDP/UNIDO to provide requisite technical inputs for technological upgradation specially in forging and casting industry in small scale sector to build up their image among the entrepreneurs and instil confidence among them. The Centre also extends consultancy and training facilities to improve and update skill and knowledge of manpower of various levels of the small scale units.

amount of Rs.110 lakhs has been sanctioned for establishing a common facility centre at PAREB for improving the above cluster of industries. All efforts are being made by PPDC Agra to standardize low cost gas fired cupola. 35.2 International Cooperation : A MOU has been signed during May 2004 with CTI Louise Bergers Group as a technical collaborator in the area of combustion engineering for the development of low cost gas fired cupola furnace. 35.3 Special Programme for Women : Computer operator and programming assistance course has been started by the Centre giving special preference to women

30

candidates. 15 women candidates are undergoing training in it. 35.4 Assistance to SSIs : 94 small scale units have been assisted in the area of development of cast and forged components, cupola energy conservation, pollution control, emission testing of cupola, material testing, rejection control etc.

products under Mission for Millennium-2000 programme nominating FFDC as an implementing agency. The locations of these clusters are Neem products at Jhalawar (Rajasthan), Mint & other essential oils at Patna (Bihar), Vetiver at Dhaulpur (Rajasthan), Kewra at Berhampur (Orissa) and Geranium at Bhowali (Uttranchal). 36.2 It is estimated with the setting up of these 5 clusters during the Tenth Five Year Plan, an additional 50,000 hectares of land would be brought under cultivation of Aromatic plants and Neem resulting in setting up of at least 5000 distillation units near plantation area and creation of additional 2 lakh job opportunities both in farm and industrial sector.

36.0 FRAGRANCE & FLAVOUR DEVELOPMENT CENTRE, KANNAUJ (U.P.)

FFDC is the only center of its kind in the country which is catering to the needs of the small scale sector in the field of quality upgradation and providing common facilities services for the processing of essential oils, creation of fragrance & flavours etc. to the small scale sector as also assistance to the farmers in improving agronomical practices for cultivation of aromatic plants. The Centre is presently providing following services:
! ! ! ! !

37.0 INSTITUTE FOR DESIGN OF ELECTRICAL MEASURING INSTRUMENTS (IDEMI), MUMBAI

IDEMI was set up in collaboration with

Quality Assessment and standardization. Creation of fragrance and flavors. Processing technology. Agro technology extension services. Information, documentation and training in the various facets of essential oil industry including value addition. UNDP as a Government of India Society under the Societies Registration Act 1860, in the year 1969. The Institute renders calibration and electric measuring instruments testing facilities, technical consultancy in design development and proto-type fabrication and conducts training course in the filed of instrumentation. IDEMI has rendered excellent service to the Industry during the last 35 Years and the Institute has earned a name amongst the Instruments Manufacturers, its users and Govt. Organizations.

36.1 In order to broaden the activities of the centre and extend the facilities & services to the other parts of the country, a cluster approach has been adopted for the development of aromatic & medicinal plants and Neem based

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Significant Work done

!

The institute has developed import substitute tools for Research Centres, Imarat (a DRDO establishment)

IDEMI, Mumbai has completed Nozzle Block/ Rotor Shaft for ISRO. This has been first time indigenized by IDEMI, Mumbai and has received the appreciation from ISRO.
!

The institute has conducted international training programmes under various bilateral agreements such as ITEC, TCS Colombo Plan, and Aid to Sri Lanka etc.

Fibre Optics testing and training facility being added.

The facilities at the tool room has been upgraded to keep pace with the latest technological developments

Energy Meter type testing facility being added.

The facilities at laboratories and work shops has been upgraded to keep pace with the latest technological development.

The training modules are designed as per the need of the industry with more emphasis on hands on training

The training modules are designed as per the need of the industry with more emphasis on hand on training.

39.0 CENTRAL FOOTWEAR TRAINING INSTITUTE, CHENNAI

The Central Footwear Training Institute (CFTI), Chennai, a Govt. of India Society is a pioneer Institution, rendering various types of training programmes on footwear technology and allied subjects. Information Dissemination : The institute provides the information on the Footwear Industry, Technology and Trade through its well equipped Library that contains numerous books and periodicals.

38.0 CENTRAL INSTITUTE OF TOOL DESIGN, HYDERABAD

Central Institute of Tool Design, Hyderabad was established in the year 1968 by Govt. of India with the assistance of UNDP/ ILO. It was the first institute of its kind in the country. The original investment of the institute was Rs.2.37 crore. The aim of the institute was to fulfill the tooling and training needs of small scale industries in the field of tool design and manufacturing.

40.0 CENTRAL FOOTWEAR TRAINING INSTITUTE, AGRA

The Institute holds affiliation with the most prestigious Textile Institute, U.K. and also recognized by AICTE for its Two Years Diploma Course in Footwear Design &

Significant work done

!

The tool room has achieved ISO 90012000 certificate.

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Physical Target & Achievements of CFTI, Chennai Sl. No. Particulars 2003-04 (Actual) 2004-05 (Upto Dec.04) 5 6 470 72 302 48.38 45.57 90.90% 2004-05 (Anticipated for remaining Period of 2004-05) 1 6 250 20 100 43.50 40.60 107%

1 2 3 4 5 6 7 8

No. of training courses (long term) No. of training courses (short term) No. of trainees No. of units benefited No. of Job undertaken Revenue Generated (Rs. in lakhs) Recurring Expenditure (Rs. in Lakhs) % Recovery

5 4 386 51 101 59.33 58.88 101%

Production Technology. The major activities of the Institute are:

!

To provide training & research facilities to trainers in the footwear and allied industries with a view to upgrade their skill,

To train personnel in footwear technology for the fresher and for personnel already engaged in this field,

To provide consultancy services for small scale units in the field of footwear industry and,

To develop products & design with a view to secure advantage in export production,

To promote acquisition of International Standards in footwear industry.

Actual & Anticipated Achievements of CFTI, Agra Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. Particulars Actual (Upto Dec.,04) 02 06 214/88 87 1250 59.44 35.51 129.89 Anticipated for remaining months of 2004-05 02 03 160/120 76 622 25.66 24.49 104.77

No. of Training Courses(Long Term) No. of Training Courses (Short Term) No. of trainees trained/passedout No. of unit benefited No. of Job undertaken Revenue Generated (Rs. in Lacs) Recurring Expenditure (Rs. in Lacs) % of Recovery

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41.0 TOOL ROOMS

41.1 Central Tool Room & Training Centre, Kolkata
Central Tool Room & Training Centre, Kolkata was established during 1977-78 under technical co-operation programme between Governments of India and Denmark to upgrade technology and to consolidate the project.

Germany and with active support of Government of Punjab for providing the services in the area of tooling (Tool Design and Tool Manufacture), Precision Machining, Heat Treatment, Technical Training and Technical Consultancy to metal working industry in general and small scale industries in particular so as to improve the quality and productivity of such units. Significant work done : (i) The tool room has achieved ISO 9001-2000 certificate; (ii) Developed several toolings as import substitution; (iii) The facilities at the tool room has been upgraded to keep pace with the latest technological developments; and (iv) The training modules are designed as per the need of the industry with more emphasis on hands on training Nearly 100% placement has been achieved for various long term trainees

Coordinate measuring machine in the Inspection Wing of Central Tool Room & Training Centre, Kolkata

41.3 Indo-German Ahmedabad

Tool

Room,

Significant work done (i) The tool room has achieved ISO 9001:2000 certificate; (ii) Developed several toolings as import substitution; (iii) The facilities at the tool room have been upgraded to keep pace with the latest technological developments and (iv) The training modules are designed as per the need of the industry with more emphasis on hands on training

Indo-German Tool Room, Ahmedabad was established by Government of India in technical collaboration with the Government of Federal Republic of Germany. The Tool Room has been set up to fulfill the tooling and training needs of the small scale industries in the field of Tool Design and Manufacture and training of technical personnel in these fields. Significant work done : (i) The tool room has achieved ISO 9001-2000 certificate; (ii) the tool room has admitted a batch of 09 trainees from South Africa for a 1-year Course in the area of tool and die making; (iii) developed several

41.2 Central Tool Room, Ludhiana

Central Tool Room, Ludhiana was established by Govt. of India in technical collaboration with Govt. of Federal Republic of

34

to tool room facilities to SSIs located in other areas, the tool room has opened sub-centres at Pune and Mumbai; (iv) developed several toolings as import substitution; (v) the tool room is taking steps to develop e-learning/e-teaching practices in tool and die technology; (vi) the facilities at the tool room has been upgraded to keep pace with the latest technological developments; (vii) the training modules are
Convocation ceremony of Diploma in Tool and Die making students of IGTR, Ahmedabad

designed as per the need of the industry with more emphasis on hands on training; and (viii) nearly 100% placement for the long term trainees has been achieved

toolings as import substitution; (iv) the facilities at the tool room has been upgraded to keep pace with the latest technological developments; and (v) the training modules are designed as per the need of the industry with more emphasis on hands on training.

41.5 Indo German Tool Room, Indore

Indo-German Tool Room, Indore was established by Government of India in technical collaboration with the Government of Federal Republic of Germany. The State Government of Madhya Pradesh provided land and building to the project. The Tool Room has been set up to fulfill the tooling and training needs of the small scale industries in the field of Tool Design and Manufacture and training of technical personnel in these fields. Significant work done : (i) the tool room has achieved ISO 9001-2000 certificate; (ii) developed several toolings as import substitution; (iii) the facilities at the tool room has been upgraded to keep pace with the latest technological developments; (iv) the training modules are designed as per the need of the industry with more emphasis on hands on training; and (v) nearly 100% placement has been achieved for various long term trainees.

41.4 Indo-German Aurangabad

Tool

Room,

Indo-German Tool Room, Aurangabad was established by Government of India in technical collaboration with the Government of Federal Republic of Germany. The State Government of Maharashtra provided land and building to the project. The Tool Room has been set up to fulfill the tooling and training needs of the small scale industries in the field of Tool Design and Manufacture and training of technical personnel in these fields. Significant work done : (i) the tool room has achieved ISO 9001-2000 certificate; (ii) the tool room has admitted a batch of 09 trainees from South Africa for a 1-year Course in the area of tool and die making; (iii) to provide access

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41.6 Central Tool Room & Training Centre, Bhubaneshwar

Central Tool Room & Training Centre, Bhubaneshwar has been set up in the year 1991 under Technical Co-operation Programme between Government of India and Government of Denmark, for which agreement was signed in June, 1989. Significant work done : (i) the tool room has achieved ISO 9001-2000 certificate; (ii) the tool room has got ISO 14001:1996 Certification; (iii) the tool room has assembled first lot of assemblies for Light Combat Aircraft (LCA) Tejas for Aeronautical Development Authority; (iv) developed several toolings as import substitution; (v) the tool room is taking steps to develop e-learning/e-teaching practices in tool and die technology; (vi) the facilities at the tool room has been upgraded to keep pace with the latest technological developments; (vii) the training modules are designed as per the need of the industry with more emphasis on hands on training; (viii) nearly 100% placement for the long term trainees has been achieved; and (ix) the tool room has trained 291 women trainees in their different short term CAD/CAM courses.

Significant work done: (i) the tool room has achieved ISO 9001-2000 certificate; (ii) developed several toolings as import substitution; (iii) the facilities at the tool room has been upgraded to keep pace with the latest technological developments; (iv) the tool room has introduced 6-months course on Metrology exclusively for the girls; (v) the training modules are designed as per the need of the industry with more emphasis on hands on training; and (vi) nearly 100% placement has been achieved for various long term trainees.

Visit of Chairman/AS & DC (SSI) to IDTR Jamshedpur (Production Section)

41.7 Indo Danish Jamshedpur

Tool

Room,

Indo Danish Tool Room, (formerly Central Tool Room & Training Centre), Jamshedpur has been set up in the year 1991 under Technical Co-operation Programme between Government of India and Government of Denmark.
Visit of Chairman/AS & DC (SSI) to IDTR Jamshedpur (Training Section)

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41.8 Central Institute of Hand Tool, Jalandhar

The hand tools industry consists of organized small scale and cottage sector which has undergone a rapid expansion in the country. About 80% of hand tool industry is located in and round Jalandhar in Punjab, Nagaur in Rajasthan, Puralia in West Bengal and Tumkur in Karnataka. The hand tool industry is playing a vital role in the economic development and earning valuable foreign exchange for the country. With a view to upgrade the hand tool technology in the country and to provide the necessary technology support services, the Government of India set up the Central Institute of Hand Tools as a National Institute at Jalandhar in the State of Punjab as autonomous organization with the assistance of UNIDO in the year 1983.

41.9 Hand Tool Design Development and Training Centre, Nagaur

The Hand Tool Design Development and Training Centre, Naguar was set up at Nagaur in Rajasthan in the year 1988. The main objective of this project is to develop hand tool industry in small and tiny sections located in and around Nagaur by providing consultancy and advisory extension services in the areas of tool room, heat treatment, metal finishing, forging and testing, common facility services to these small and tiny industries. Centre is also assisting small scale units to adopt modern technology in the field of product design, production process and quality control for cost reduction and improvement in profitability. Testing facilities and training facilities are also provided for up gradation of quality of production and trained manpower. Significant work done : The Institute has been

Significant work done : (i) the tool room has achieved ISO 9001-2000 certificate; (ii) the facilities at the tool room has been upgraded to keep pace with the latest technological developments; (iii) the training modules are designed as per the need of the industry with more emphasis on hands on training; (iv) the Institute has been identified for capacity building of the institute under National Programme for promoting energy efficiency in Hand Tool SSI Sector in India, a programme launched by Ministry of SSI, Govt. of India jointly with UNIDO, Hand Tool Industries Association & SIDBI.

identified for capacity building under National Programme for promoting energy efficiency in Hand Tool SSI Sector in India, a programme launched by Ministry of SSI, Govt. of India jointly with UNIDO, Hand Tool Industries Association and SIDBI.

41.10 Tool Room & Training Centre, Guwahati

In order to create facilities for manufacturing of tools & dies and for training in tool & die making in the North Eastern region, a Tool Room & Training Centre (TRTC) is being

37

established at Guwahati at an estimated cost of Rs. 13.28 crore. The tool room has since been registered as a Society under the Societies Registration Act. Land and building for this scheme has been provided by the State Government of Assam. Training activities of the centre have been started for the time being at SISI, Guwahati campus. During the year, the tool room has conducted 09 short term courses in which 62 trainees were trained. The tool room is also conducting a two-year Machinist course in which 20 trainees are enrolled.

entrepreneurs having potential for setting up small-scale industries so as and to lead them towards self-employment. Upto Dec.04 about 250 IMCs have been conducted benefited 30,000 prospective entrepreneurs and about 260 IMCs are expected to be conducted during remaining months of the financial year for benefiting about 30,000 entrepreneurs.

44.0 BIOTECHNOLOGY
Advances in biotechnology have had an overwhelming impact on the society. Biotechnology holds great promise in meeting the needs of the growing population for innovative medicines, higher productivity in agriculture and value addition including nutritional enhancement and protection of environment. Considering the importance of the sector from an industrial point of view, Government has recognized biotechnology as a thrust area. While initial efforts have been made by the Department of Biotechnology, now the Ministry of SSI has taken-up the task of encouraging biotechnology in the SSI sector. Accordingly, a Biotechnology Cell has been created in the Ministry of SSI to deal with the matter for the development and promotion of biotechnology in the small scale sector. To disseminate information on the use of biotechnology, a number of sensitization programmes on biotechnology in various parts of the country are being organized in collaboration with the Department of Biotechnology, Biotech Consortium India Limited (BCIL), and various State Government agencies.

42.0 CONFERENCE OF MINISTERS (SSI/KVI/COIR) OF STATES/UTS

A conference of Ministers (SSI/KVI/COIR) th was organized on 25 June 2004 at New Delhi to review major schemes of the sector, particularly those which are implemented at the State/UT level or those which require special initiatives on the part of the State/U.T. Governments. In addition, views and suggestions of the States/UTs were sought to carve out a roadmap for the successful implementation of the National Common Minimum Programme of the Government, specifically for the small scale industries and agro and rural industries including Khadi and village industries of the country and to make them more competitive and ensure their growth and development.

43.0 INDUSTRIAL MOTIVATION CAMPAIGNS (IMC)

SIDO conducts Industrial Motivation Campaigns (duration of 1 day or 2 days) to identify and motivate traditional / non-traditional

38

During the year 2004-05, 20 one day sensitization programmes on Biotechnology have been proposed to be held at various parts of the country. Out of which four programmes have already been conducted including a five days training programme on Hi-Tech Business Opportunities in Biotech Sector held at Ludhiana during 20 24 Sept. 2004. It is also proposed to organize two days seminar on IPR related issues on Biotechnology at Bangalore on January, 2005. To assist SSI entrepreneurs in getting basic understanding of the technologies, products and processes, a set of project profiles have been prepared in coordination with the Department of Biotechnology and Biotech Consortium India Limited BCIL), New Delhi.
th

45.2 Training Programme on Packaging for Exports

One training programme was organized by SISI, Goa in which 75 SSIs participated. 23 programmes have been lined up with SISIs and these programmes will be conducted in association with Indian Institute of Packaging during the current financial year.

45.3 SSI-Marketing Development Assistance Scheme

Rs. 4.12 lakhs have been reimbursed to 28 SSI units for adoption of Bar Code Certificate from EAN India and Rs. 1.00 lakh released to FISME, New Delhi for printing of 2000 copies of the study WTO Negotiations and SSIs by FISME & RIS. More than 70 SSI units are anticipated to avail the financial assistance for adoption of Bar Code Certificate during the current financial year.

45.0 MARKETING ASSISTANCE AND EXPORT PROMOTION

45.1 Participation in the Overseas Trade Fairs
The Office of the Development
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45.4 Index of Industrial Production (IIP) for SSI sector

The objective of IIP is to estimate the growth in production of SSI sector. It is compiled on a quarterly basis. At present this division is working out the growth in production through Index of Industrial Production (IIP) with the base year 1970. The IIP is constructed based on a basket of 356 items contributing 77% of production as per the First Census. This data is collected from2400 units having an annual production of Rs. one crore. 45.5 As a follow up of the Third Census it has been decided to change the base year from

Commissioner (SSI) has participated in Poznan Fashion Week (Poland) (Sept. 79, 2004), 69 Thessaloniki 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 SSI units were displayed. Exhibits from 100 SSI units are anticipated to be displayed in the remaining five International Trade Fairs under SIDO stall during the current financial year.

39

1970 to 2001-02 and also to select a new basket so as to make the IIP more representative. Accordingly, at All India level, a basket of 468 items covering 24,749 industrial units have been selected. These items contribute about 75.5% of the production of the SSI Sector. 45.6 Directorate of Industries of all the States/ UTs have been requested for collecting base year production data and subsequent monthly data from April 1, 2002 onwards. After receiving the data with the new base year, the revised index with base year 2001-02 will be released.

1994 with the objective to provide employment opportunities in rural as well as urban areas through setting up of micro enterprise, and proper training for sharpening the technical skill and encouraging the managerial talent in entrepreneurs. SEPTI Tiruvalla was set up as a full time training institute to train 1000 entrepreneurs every year. At present all the training programmes are of 2 months EDPs and courses are scheduled on a quarterly pattern. As a result of good training an average of 25 % of the trainees of this institute succeeded in setting up their own industry, some of the trainees are getting jobs in foreign countries and most of them are getting jobs in other parts of the country. During 2004-05, SEPTI Tiruvalla has earned an amount of Rs. 10.14 lakh through EDPs.

45.7 Updation of Frame and analysis of Registration Data

The registration of the SSI units is done by the State/UT Directorates at DIC level. The registration records contain valuable information and are analyzed to estimate growth of smallscale sector in terms of number of units and employment at various levels like states/districts and industrial groups. The frame is the database of the units registered with the State Directorate of Industries (DIs). The frame up to March 31, 2001 has been updated. For further updation of the frame after Third Census, the Director of Industries have been asked to remove those units found closed in the Third Census and also to send frame updated up to March 31, 2005.

47.0 SEPTI ETTUMANUR

Known earlier as Production Centre Ettumanur, was converted into Small Entrepreneur Promotion and Training Institute in 2000 for imparting training to artisans/ entrepreneurs of Kerala in various disciplines as per the need of the area. The Institute constantly identified and reviewed the new emerging trades having quick employment potential, developed appropriate curricula focusing on end job profiles. The courses comprises of artisan trade, management, IT software, computer hardware and other emerging technologies including bio-technology etc. During 2004-05 this institute has earned Rs. 24.69 lakh through different.EDPs.

46.0 SEPTI TIRUVALLA

The Small Entrepreneurs Promotion and Training Institute Tiruvalla was setup during

40

Chapter III CREDIT AND FISCAL CONCESSION TO SSI SECTOR

1.0 The credit is one of the critical inputs for provided by State Financial Corporations (SFCs), Scheduled Commercial Banks and Small Industries Development Corporations (SIDCs). Credit in direct/ indirect forms is also undertaken to some extent by NABARD, NSIC etc. Measures for improving flow of credit to 1.1 Priority Sector Lending : Credit to the SSI sector through announcement made in Union Budget and comprehensive policy package are as under: 1.3 Collateral security dispensed with for small scale sector is ensured as part of the priority sector lending by banks. 1.2 Institutional Arrangement : Small the promotion and development of small scale industries. To ensure timely and adequate credit to the SSI sector the Government is implementing several schemes. The existing components of the credit policy for small scale industries are stated below:

Industries Development Bank of India (SIDBI) is the apex refinance bank. Term loans are

loans up to Rs. 5 lakh: Exemption limit for dispensing with requirements of collateral

Flow of Credit to SSI Sector from all Public Sector Banks since 2000 (Amount Rs. crore) As at the end of March 2000 Net Bank Credit Credit to SSI No. of SSI Accounts (in lakh) SSI Credit as percentage of Net Bank Credit (P): Provisional 2,92,943 45,788 22.72 15.6 2001 3,40,888 48,445 22.80 14.2 2002 3,96,954 49,743 22.23 12.5 2003 4,77,899 52,988 16. 95 11.1 2004 (P) 5,58,608 58,277 16.33 10.1

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Status of Credit to Tiny Sector since 2000

(Amount Rs Crore) At the end of March, 2000 Net bank credit to tiny sector Tiny credit as percentage of net SSI credit (P): Provisional 24,742 54.0 At the end of March 2001 26,019 53.7 At the end of March, 2002 27,030 54.3 At the end of March, 2003 26,937 50.8 At the end of March, 2004 (P) 30,826 52.9

securities has been raised to Rs. 5 lakh for both tiny and SSI units. Further, the RBI has advised the banks that they may, on the basis of good track record and financial position of the units, increase the limit of dispensation of collateral requirement for loans upto Rs.25 lakh. 1.4 Composite Loan Scheme limit

1.6

Specialized SSI bank branch in each

district and SSI clusters : Banks have been advised to open at least one Specialized SSI branch in each district. Further, banks have been permitted to categorise their general bank branches having 60% or more of their advances to SSI sector as Specialized SSI branches in order to provide better service to this sector as a whole. As at the end of March, 2004, 497 Specialized SSI Branches have been operationalised. 1.7 Interest rate : As per the announcement

enhanced to Rs. 50 lakh : The existing Composite Loan Scheme of banks helps small borrowers by providing working capital and term loans through a single window. To promote credit flow to small borrowers, the composite loan limit has been increased from Rs.50 lakh to Rs.1 crore. 1.5 NEF Scheme to cover projects up to

made by the Honble Finance Minister in the Union Budget 2003-04, Indian Banks Association (IBA) has advised the banks to adopt the interest rate band of 2% above and below their prime lending rates (PLRs) for secured advances. 1.8 Small and Medium Enterprise (SME)

Rs. 50 lakh : As announced in the Comprehensive Policy Package for SSIs, the project cost ceiling under the National Equity Fund (NEF) Scheme has been enhanced from Rs.25 lakh to Rs.50 lakh. The extent of soft loan assistance is 25% of the project cost subject to a maximum of Rs. 10 lakh per project.

Fund : A Small and Medium Enterprises (SME) Fund of Rs.10,000 crore has been set up under SIDBI as per the announcements made by the then Honble Finance Minister on 9 January,
th

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2004. The SME Fund would, inter-alia, address the problem of inadequacy of financial resources at competitive rates for the small scale sector. The fund has been made operational with effect from April 1, 2004. 1.9 Laghu Udyami Credit Cards : Laghu

extended by eligible lending institutions to new and existing SSI units/ Small Scale Service and Business (Industry related) Enterprises (SSSBEs) including Information Technology and Software Industry upto Rs. 25 lakh per borrowing unit. The guarantee cover would be upto 75% of the credit subject to maximum guarantee limit of Rs. 18.75 lakh. The lending institutions availing guarantee from the Trust have to pay one time guarantee fee of 2.5% of the credit facility (comprising of term loan and/ or working capital) sanctioned by the lending institution to the borrower and annual service fee of 1% per annum on the outstanding loan on 31 March of each year. 2.2 The Credit Guarantee Scheme was
st

Udyami Credit Card (LUCC) scheme has been liberalized by enhancing the credit limit from Rs.2 lakh to Rs.10 lakh, for borrowers who have a satisfactory track record.

2.0 CREDIT GUARANTEE FUND SCHEME FOR SMALL INDUSTRIES

The Government introduced the Credit Guarantee Fund Scheme for Small Industries in May, 2000 with the objective of making available credit to SSI units, particularly tiny units, for loans up to Rs. 10 lakh without collateral/ third party guarantees. The scheme is being operated by the Credit Guarantee Fund Trust for Small Industries (CGTSI) set up jointly by the Government of India and SIDBI. The loan limit under the scheme, which was Rs. 10 lakh per borrower, has been enhanced to Rs. 25 lakh per borrower in terms of Comprehensive Policy Package on SSI announced by the Honble Prime Minister on 30 August, 2000, when the scheme was formally launched. Necessary modifications have been carried out in the indenture of the Trust to enable the CGTSI to guarantee loans up to Rs. 25 lakh. 2.1 The scheme covers collateral free credit
th

initially approved for one year with a corpus of Rs. 125 crore contributed by the Government of India and SIDBI in the ratio of 4: 1. Subsequently, the Government decided to continue the scheme beyond one year. The corpus of CGTSI has been enhanced to Rs. 931.55 crore with the contribution of Rs. 745.24 crore from the GoI and Rs. 186.31 crore from SIDBI. 2.3 As on December, 2004, 50 eligible

institutions comprising 27 Public Sector Banks, 12 Private Sector Banks, 8 Regional Rural Banks (RRBs), National Small Industries Corporation (NSIC), North Eastern Development Finance Corporation (NEDFi) and Small Industries Development Bank of India (SIDBI) have become Member Lending Institutions (MLIs) of CGTSI for participating under the Credit Guarantee Scheme. As

facility (term loan and/ or working capital)

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limit of Rs. 100 lakh is continuing in the current fiscal given as under:
When Modvat benefit is not availed Value of clearances 0-100 lakh Above 100 lakh Rate of Duty Nil Normal rate of duty

When Modvat benefit is availed Value of clearances 0-100 lakh Above 100 lakh Rate of Duty Sixty per cent of normal duty Normal rate of duty

3.2

Income Tax benefit to new SSI units :

st

Under Section 80-IB, the Small Scale unit commencing production between 1 April, 1995 and 31 March, 2000 were allowed a deduction of 25% of the profits (30% for companies) for a period of 10 years. In the wake of liberalization the SSI Sector needs fiscal support so that it can withstand competition. Therefore, the Finance Ministry amended Section 80-IB in Union Budget 2000-01 to provide continuous concessions to SSI units commencing st production even after 31 March, 2000. Units set-up on or before 31-3-2002 shall be eligible for the benefit.
st

regards progress of implementation, 19803 proposals were approved for guarantee cover for aggregate credit of Rs. 395.50 crore.

3.0 FISCAL CONCESSIONS TO SSI SECTOR

3.1 General SSI Exemption Scheme :

Consequent upon the announcement of Comprehensive Policy Package for SSI Sector by the Prime Minister on 30 August,2000, full excise exemption up to turnover of Rs. 100 lakh per annum has been provided to SSI Sector with effect from 1 September, 2000. Under the General Excise Exemption Scheme, units having turnover of less than Rs.3 crore, are eligible for the excise exemption. The exemption
Shaping a sole in mechanised process
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4.0 NEW FISCAL INCENTIVES ANNOUNCED IN THE BUDGET 2004-05

4.1 Direct Taxes : In order to promote agro-

5.0 CREDIT LINKED CAPITAL SUBSIDY SCHEME (CLCSS)

A scheme on Credit Linked Capital Subsidy (CLCSS) was launched in the year 2000. The purpose of the scheme is to facilitate technology upgradation of SSI units in the specified products/sub sectors by providing 12% capital subsidy for induction of proven technologies approved under the Scheme. 5.1 Technology Upgradation under the

processing industries, 100 per cent deduction of profits for 5 years and 25 per cent of profits for the next 5 years will be allowed in the case of new agro-processing industries set up to process, preserve and package fruits and vegetables. 4.2 Excise Duty : (i) General SSI Excise

scheme would mean a significant step up from the present technology level to a substantially higher one involving improved productivity and /or improvement in the quality of products and / or improved environmental conditions including work involvement for the unit. This will also include installation of improved packaging techniques, anti pollution measures, energy conservation machinery, on line quality control equipments and in house testing facilities. 5.2 Thirty nine sub sectors have been

Exemption Scheme has been extended to watches, upto MRP of Rs. 500; (i) excise duty on steel has been enhanced from 8 per cent to 12 per cent. Excise duty on Hand tools such as spades, shovels, sickles etc has been exempted; (ii) in order to protect matches made in the non-mechanised sector, excise duty on matches made in the mechanized/semimechanised sector has been increased from 8 per cent (without Cenvat credit) to 16 per cent (with Cenvat credit); (iii) mandatory Cenvat duty has been withdrawn from Handloom and Powerloom sectors; (iv) excise duty on gas stoves of Retail Sale Price (RSP) not exceeding Rs. 2000 per unit has been reduced from 16% to 8%; and (v) RSP limit for availing excise duty exemption on footwear has been raised from Rs.125 to Rs. 250 per pair. 4.3 Customs Duties : Customs duty has

approved under the scheme eligible for assistance which comprises nine sub-sectors/ products included during 2003-04 and another nine till December during 2004-05. The wellestablished and improved technologies for each sub-sector have been identified for which subsidy is available. The scope of scheme is gradually being widened by adding new subsectors and new technologies under the scheme for assistance. Nine sub-sectors and eleven new technologies have been included under the scheme during 2004-05 till December.

been reduced on non-alloy steel from 15 per cent to 10 per cent. Peak rate of customs duty on alloy steel, copper, lead, zinc and base metals has been reduced to 15 per cent.

45

5.3

At present, the following products/sub

Agricultural Implements and Post Harvest Equipments; and (xxxix) Beneficiation of Graphite and Phosphate.

sectors have been covered under the Scheme:a) During 2002-03 : (i) Leather and Leather

Products including Footwear and Garments; (ii) Food processing (including Ice Cream manufacturing); (iii) Information Technology (Hardware); (iv) drugs and Pharmaceuticals; (v) Auto Parts and Components; (vi) Electronic Industry particularly relating to design and measuring; (vii) Glass and Ceramic Items including Tiles; (viii) Dyes and Intermediates; (ix) Toys; (x) Rubber Processing including Cycle/ Rickshaw Tyres; (xi) Forging & Hand Tools; (xii) Bicycle Parts; (xiii) FoundriesSteel and Cast Iron; (xiv) Dimensional Stone Industry (excluding quarrying and mining); (xv) Industry based on Medicinal and Aromatic plants; (xvi) Combustion Devices / appliances; (xvii) Gold Plating and Jewellery; (xviii) Common Effluent Treatment Plant; (xix) Bio tech Industry; (xx) Plastic Moulded/ Extruded Products and Parts/ Components; and (xxi) Corrugated Boxes. b) During 2003-04: (xxii) General Engineering Works; (xxiii) Poultry Hatchery & Cattle Feed Industry; (xxiv) Fans & Motors Industry; (xxv) Transformer/Coils/Chokes including solenoid coils; (xxvi) Mineral Filled Sheathed Heating Element; (xxvii) Wires & Cable Industry; (xxviii) General Light Service (GLS); (xxix) Steel Furniture; and (xxx) Toys; c) During 2004-05 (till December) : (xxxi)

Financial performance year wise under Credit Linked Capital Subsidy Scheme (CLCSS) Year No. of Subsidy disbursed units to SSI units (Rs. Lakh) 9 47 150 289 495 21.36 96.80 374.89 785.00 1278.05

2001-02 2002-03 2003-04 2004-05 (upto Dec., 04) Total

5.4

Small Industries Development Bank of

India (SIDBI) and National Bank for Agriculture and Rural Development (NABARD) act as the Nodal Agencies which in turn operate through eligible Scheduled Commercial Banks, eligible State Financial Corporations, eligible Cooperative Banks (other than Urban Cooperative Banks), eligible Regional Rural Banks, National Small Industries Corp. (NSIC) and North Eastern Development Financial Institution for making available subsidy to small scale units. 5.5 The scheme is monitored by Governing

and Technology Approval Board (GTAB). The Secretary (SSI & ARI) is the Chairperson of the Board and the Development Commissioner (SSI) is its Member Secretary. The GTAB would also periodically review the functioning of the Scheme. There is a Technical Sub-Committee under GTAB to consider inclusion of new subsectors/products and Well-Established and Improved Technologies under the Scheme.

Non-Ferrous Foundry; (xxxii) Sport Goods; (xxxiii) Cosmetics; (xxxiv) Readymade Garments; (xxxv) Wooden Furniture; (xxxvi) Mineral Water Bottle; (xxxvii) Paints; (xxxviii)

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6.0 MICRO FINANCE GRAMME

PRO-

The Government has launched a revised Scheme of Micro Finance Programme in 2003-04. The scheme has been tied up with the existing programme of SIDBI, which is under operation since January, 1999, by way of contributing towards security deposits required from the MFIs/NGOs to get loan from SIDBI. The salient features of the scheme are as under:!

including Sikkim, Bihar, Jharkhand, West Bengal, Orissa, Madhya Pradesh, Chattisgarh, Uttar Pradesh, Jammu & Kashmir, Rajasthan and Uttaranchal. During the current FY 200405, an amount of Rs. 1.00 crore has been released towards Portfolio Risk Fund, thereby enhancing the PRF to Rs. 1.25 crore.

Arranging Fixed Deposits for MFIs/

NGOs : The Government of India will provide funds for Micro-Finance Programme to SIDBI, which may be called Portfolio Risk Fund. This fund would be used for security deposit requirement of the loan amount from the MFIs/ NGOs and to meet the cost of interest loss. At present SIDBI takes fixed deposit equal to 10% of the loan amount. The share of MFIs/NGOs would be 2.5% of the loan amount (i.e. 25% of security deposit) and balance 7.5% (i.e. 75% of security deposit) would be adjusted from the funds provided by the Government of India.
!

7.0 SICKNESS IN SSI SECTOR

!

Sickness was identified through the latest definition of RBI given by Kohli committee and incipient sickness was identified in terms of continuous decline in gross output.

Sickness in the total SSI sector was of the order of 1%, whereas in the registered and unregistered SSI sectors it was 3.38 % and 0.64 % respectively.

Training and Studies on Micro-Finance

!

Programme.
!

The maximum number of sick units was located in West Bengal, Kerala, Maharashtra, Karnataka and Andhra Pradesh. About 59.53 % of the sick units were located in these five States.

Institution Building for Intermediaries

for identification of viable projects: An amount of Rs. 25 lakh was released towards Portfolio Risk Fund, which has been fully utilized by SIDBI. The funds under PRF are utilized for extending loans in the hitherto underserved States like North Eastern States
!

Out of the units having loan outstanding with institutional sources like banks and financial institutions, sickness was about

47

19.6 % in the registered SSI sector and 16.61 % in the case of unregistered SSI sector. In the total SSI sector, this percentage was 17.8.
!

sector were identified to be either sick or incipient sick, while this percentage was only 6.89 in the case of unregistered units. In the total SSI sector, this percentage was 7.82.
!

Incipient sickness identified in terms of continuous decline in gross output was 11.5 % in the registered SSI sector and 6.48 % in the unregistered SSI sector. In the total SSI sector, this percentage was 7.4.

The States of Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, and Maharashtra had maximum number of sick/ incipiently sick SSI units. These five States together accounted for 54.28 % of the sick/ incipiently sick SSI units in the country.

Combining the three yardsticks used to measure sickness, viz., (a) delay in repayment of loan over one year, (b) decline in net worth by 50 %, and (c) decline in output in last three years, about 13.98 % of the units in the registered SSI
!

Lack of demand and Shortage of working capital were the main reasons for sickness/ incipient sickness in both the registered and unregistered SSI sectors.

Various Reasons for Sickness/Incipient Sickness

Reason for sickness/ incipient sickness Proportion of sick/ incipient sick units * Total SSI Sector 1. 2. 3. 4. 5. 6. 7. 8. Lack of demand Shortage of working capital Non-availability of raw material Power shortage Labour problems Marketing problems Equipment problems Management problems 66 % 46 % 12 % 13 % 5% 36 % 11 % 4% Regd. SSI sector 58 % 57 % 12 % 17 % 6% 37 % 9% 5% Unregd. SSI sector 69 % 43 % 12 % 12 % 4% 36 % 12 % 3%

48

Chapter IV NATIONAL SMALL INDUSTRIES CORPORATION (NSIC) LTD.

1.0 NSIC, an ISO 9001:2000 company since
!

5 Technical Service Centres located at Chennai, Howrah, Hyderabad, Okhla and Rajkot.

May, 2003 has been striving to fulfill its mission of promoting, aiding and fostering the growth of small scale industries and industry related small scale service / business enterprises since 1955. Over a period of five decades of transition, growth and development, NSIC has proved its strength within the country and abroad by rendering marketing, technology and credit support to small industries as well as by strengthening linkages with large and medium enterprises and exports of projects and products from small scale enterprises. NSIC is the only ISO 9001 certified facilitator in the country and amongst a select few globally.
! ! !

3 Technical Service Extension Centres located at Aligarh, Rajpura and Guwahati. 2 Offices outside Indiaone at Dubai (UAE) and the other at Johannesburg (South Africa). 2 Software Technology Parksone at Okhla, New Delhi and the other at Chennai.

3.0 SCHEMES FOR ASSISTANCE TO SSIs

3.1 For Marketing
!

2.0 ORGANIZATIONAL SET-UP

The Corporation is manned by a team of professionals at different levels of functioning. NSIC delivers its assistance through:
!

Consortia Marketing & Brand Building Formation of consortia of small

enterprises in specific product groups is 6 Zonal offices located at Mumbai, Chennai, Kolkata, Hyderabad, Delhi and Noida.
!

encouraged to enable the small enterprises to be competitive and to integrate their capacities. The Corporation explores markets and secures bulk orders, which are farmed out to small units in accordance with their production capacity. Testing facilities are also being provided to

26 Branch Offices and 15 Sub-Offices for cluster development dispersed different states. in

49

enable the units to improve and maintain the quality of their products.
!

distribution system has been supplementing the availability of raw materials to a large number of small industries, all over the country.

Government Programme

Stores

Purchase
!

Special Arrangement with National Aluminium Company Limited (NALCO) In order to facilitate the SSI units in

The Government gives emphasis on purchase of various items from small-scale industries. Preferential purchase policy has been introduced and the Corporation has been designated as the Nodal Agency to promote marketing of small industry products to the Government. The Corporation is continuously trying to enlarge the number of units participating in the Government Stores Purchase Programme. The NSIC registered units have an added advantage, they are not only recognized at par with the units directly registered with DGS&D but they also need no further registration with other government departments as well as Public Sector Undertakings. Further the enlisted units are also not required to pay any earnest money or security deposits for participating in tenders under this scheme. The data pertaining to the Government Purchase registered units has been fully computerized and a directory of units enlisted under the programme is published periodically.
! !

procurement of Aluminium at a competitive price, the Corporation has entered into an Memorandum of Understanding with National Aluminium Company. Under this arrangement, the Corporation is getting volume based quantity and other discounts, on all India basis and a part of the same is passed on to the small scale units, to reduce their cost of raw materials and make the finished products more competitively priced. Allocation of Steel As a new initiative, NSIC is pursuing with Ministry of Steel for allocation of Iron and Steel for distribution to SSI units in selected States.
!

Export The Corporation continued its efforts for

facilitating exports from small industries by undertaking the following measures:

Raw Material Assistance Making available, the right type of raw Identifying international market opportunities for the products manufactured in the small scale units. Show casing the SSI products effectively at different international fora and exhibitions.

material at an appropriate price in time, not only enhances the competitive capacity of small units but also arrests sickness of the units. Keeping this in view, the Corporation through its

50

Counselling on market intelligence and providing technology upgradation support.

Trade Fairs and Exhibitions To showcase the competencies of Indian

SSIs and to capture market opportunities, NSIC participates in select international and national exhibitions & trade fairs. NSIC facilitates the participation of small scale units in these fairs.
!

Techmart India 2004 (14-27 November, 2004) NSIC organized Techmart India2004, the

Shri Mahabir Prasad, Honble Minister for Small Scale Industries and Agro & Rural Industries inaugurating Techmart India 2004. Accompanied by Shri Anupam Dasgupta, Secretary, Ministry of SSI & A&RI and Shri Rajiv Bhatnagar, CMD, NSIC and Smt Stuti N. Kacker, Joint Secretary, Ministry of SSI

Refractories, Testing Machine, Furnaces, Auto Parts, R.O. System and Water Purifier, Communication system, Public Address Systems, Hand Tools, Corrugated Roofing Sheet, Switches & other Electrical Items, Genset & Grass Cutting Machine etc.

12 International Technology Fair coinciding with India International Trade Fair at Pragati Maidan, New Delhi. The event was sponsored by the Ministry of SSI, Government of India. Techmart India2004 was inaugurated by Honble Minister for Small Scale Industries and Agro & Rural Industries. Secretary, Ministry of SSI & ARI, Government of India was also present during the inaugural function. 12
th

th

Foreign delegates from Sri Lanka, Haiti, South Africa, Rwanda, Zambia, Algeria, Congo, Comoros, Malawi, Brazil, Syria, Qatar, Saudi Arabia, China, Dubai, Uganda, Nigeria and Madagascar visited the Techmart.

series of Techmart India2004, NSIC was awarded the highest award by the India Trade Promotion Organization for EXCELLENCE IN SPECIAL DISPLAY in IITF2004.
!

coinciding with Golden Jubilee Year of NSIC received tremendous response form trade and industry. More than 236 units including cluster units participated in Techmart India2004. Some of the items displayed were Powder Coating Machine, Automatic Filling & Packaging Machine, Tool Room Machine, Pumps & Motors, Abrasive, Decoiler, -

International Exhibitions NSIC participated in Sources 2004 Giftware Exhibition at New York, USA

51

from 15 - 18 May 2004 wherein 8 small scale units from Moradabad, Noida & UP displayed their products. A large number of representatives from prominent stores, buying houses, importers, wholesalers and retailers visited the stalls and had business discussions small with the units.
!

December 12 16, 2004. Six small scale units participated under the NSIC banner in an area of 57 sq. mt. Buyer Seller Meets The buyer seller meets, aim at bringing bulk buyers and SSI suppliers on a common platform, in order to facilitate vendor development. These buyer seller meets also sensitize the small entrepreneurs to the requirements of bulk buyers, in respect of quality, manufacturing practices, products specifications, delivery schedules and pricing.
!

participating

scale

Subsequent to the exhibition, follow-up meetings with important buyers were organized. NSIC participated in South African International Trade Exhibition (SAITEX), 2004 from 5-8 October 2004. The products displayed in NSIC enclave were Nuts & Bolts, Fasteners, Domestic Electrical appliances, Disposable Syringes & Needles, Bicycle & Bicycle parts, Hand Tools, Cosmetic items, Body Care products, Compressed NonAsbestos / Asbestos fiber Jointing Gasket Sheet etc. More than 200 business visitors from South Africa, Botswana, Zambia, Mozambique and Nigeria visited NSICs pavilion in SAITEX. NSIC participated in the CPHI 2004 an international exhibition on pharmaceutical & allied industries at Brussels, Belgium from 7-9 December 2004, Fourteen bulk drug manufacturers participated in NSIC display, which covered an area of 240 sq. mt. NSIC participated in International Autumn Trade Fair in Dubai from

Display centre for SSI products

To assist the small-scale units in marketing their products, NSIC has established a state of the art Display Centre at Okhla, New Delhi. This Display Centre will exhibit products in different sector manufactured by SSIs. The Display Centre has a special enclave for SSI products from the North Eastern Region.

3.2 For Technology Upgration :

!

NSIC - Technical Service Centres / Extension Service Centres NSIC - Technical Services Centres /

Extension Centres provide valuable technology and common facility support to SSIs. This support is in the form of conventional & hi-tech machining facilities, specialized testing facilities and other quality upgradation services. Services in the area of energy/ environment audit,

52

consultancy for ISO 9000 and preparation of project exports for SSIs are also provided. NSIC-TSCs at New Delhi, Howrah, Rajkot, Chennai and Hyderabad enjoy the status of In House R&D Centres of Department of Scientific and Industrial Research (Ministry of Science & Technology). In order to cater to the needs of SSIs to face the challenges arising due to recent economic & policy changes like lifting of quantity restrictions & globalization, the Technical Centres have taken the challenge head on and started several hi tech training programmes in the area of CAD/CAM, hydraulic and pneumatic controls etc.

the infrastructural facilities, NSIC also provides value addition services in terms of making the project reports, liaisoning with the authorities of the project, facilitating custom bonding formalities etc. The software enterprises can start the business operations with minimum lead-time. Since, the developed infrastructure is readily available, they also save capital expenditure on creation of such facilities. In NSIC-STP at Okhla, 28 software export units have utilized the facilities since its inception in 1995. Around 10 enterprises grew big and vacated the space. At present, there are 14 units operating in the STP. Chennai STP houses 12 software export units.
!

Technology Transfer Centre

Software Technology Park Technology Transfer Centre at Okhla, Delhi Recognizing the importance of disseminates technological information relevant to the needs of SSIs, facilitates enterprise to enterprise relationships, assists in upgradation of technology and encourages industry institutional linkages.
!

information technology in the globalize economy, NSIC has established two Software Technology Parks (STP) one at New Delhi in 1995 and second at Chennai in 2001. These two parks are established under the Software Technology Parks of India (STPI) Scheme of Ministry of Information Technology.

Energy Audit NSIC - Technical Service Centre, Rajkot

The STPs provide infrastructural facilities and create conducive business environment for the software exporters. NSIC has created requisite infrastructure in terms of fully built up working space, high speed data communication facilities, business centres, round the clock power backup and other logistics support to the small scale software exporters. In addition to

has been approved as energy auditor by Petroleum Conservation Research Association, Government of Gujarat, Maharashtra Energy Development Agency and Gujarat Energy Development Agency. The Centre has established a full-fledged Environmental Laboratory, which has been

53

recognized by the Gujarat Pollution Control Board has recognized this Center as a SCHEDULE I environmental auditor. NTSC, Chennai has also been registered with Tamil Nadu State Electricity Board as an approved auditor to conduct energy audit for high-tension industrial and commercial establishments in Tamil Nadu.
!

Tie Up with Banks NSIC is making tie up arrangement with

commercial banks in order to facilitate sanction of credit limits from these banks to small scale industries. Under this arrangement, proposals of small industries for their credit needs will be forwarded by NSIC to these banks for sanction. Working arrangements, in this regards, have been finalized with United Bank Technology Business Incubators Emerging technological and knowledgebased entrepreneurial ideas have to be fostered and developed in a supportive environment before they become attractive for commercial investments. Hence, the need arises for incubation centers. A scheme of the Corporation for setting up an Incubation Centre at Okhla has been approved by the administrative Ministry and would become operational soon. NSIC in association with Department of Science & Technology is also in the process of setting up a Science & Technology Incubator at NTSC, Rajkot. The fast changing global economic scenario has thrown up many opportunities and challenges to the small scale industries in India. While, on the one hand, many opportunities have opened up for the small scale sector to enhance productivity and look for new markets in other countries, it has also put an obligation on them to upgrade their competence in terms of technology, management & financial strength to successfully meet the global competition. Accordingly, a need was felt for introducing a Performance and Credit Rating NSIC facilitates credit support for technology upgradation programmes for small scale industries through its equipment financing schemes. In addition to equipment financing, NSIC also provides limited financing support for marketing activities i.e. raw material procurement, exports, internal marketing and bill discounting. Scheme for Small Scale Industries. It is expected that the Scheme would facilitate adequate credit flow to SSI sector at a reasonable cost. Besides this, credit rating would also infuse a sense of confidence amongst the buyers, for taking a decision on sourcing material from the enterprises. of India.
!

Performance and Credit Rating For SSIs

3.3 Credit for SSIs

54

3.4 Infomediary Services

Keeping in mind the information needs of small industries, NSIC has conceptualized Infomediary Services a one-stop, one-window shop that provides information on business, technology and finance. Infomediary Services are primarily delivered through NSIC website, which is being converted to a portal. Member companies have special password protected access, to value added information, on trade statistics, global trade leads, investment opportunities, tender information and technology sources. Regular e-mail alerts are sent to registered members and visitors on new initiatives of NSIC. All members are given listing, in the sector based online manufacturers directory, as well as facility to create their homepage on NSIC site. Premium members enjoy special privileges, such as automatic tender alerts on e-mail, for their chosen areas of products and services. Banner display on NSIC site and discounts in all other services are also offered to the members. The overall objective of Infomediary Services is to create, sustain and serve online the community of small entrepreneurs to showcase their competence on the web. The features and services are being upgraded and many new features, such as expert chats, virtual exhibition, auction center and discussion forum are being introduced in the new NSIC portal.

effectively addressing this impediment to growth. It offers mentor and pupil relationship services, in which the mentor, is a person with wide experience in running his own business and who volunteers his / her services to individuals or a group of units- the pupils. On the other hand, an advisor is a senior professional, generally retired and a specialist in a specific area who assists identified enterprises in tackling specific technical or business related problems. Mentors and advisors provide necessary professional and moral support in the early lifecycle of an enterprise or to existing units critical operational problems.

4.0 INTERNATIONAL COOPERATION

Under its International Cooperation Programme, NSIC facilitates enterprise-toenterprise cooperation and sharing of best practices and experiences with other developing countries.
!

Commonwealth India Small Business Competitiveness Development Programme (15-19 November, 2004)

3.5 Mentoring and Advisory Services

Unbalanced management skills are often a problem in small enterprises. NSICs mentoring and advisory services are aimed at

National Small Industries Corporation, in collaboration with the Commonwealth Secretariat, London (COMSEC) organized a pan-Commonwealth programme on Small Business Competitiveness Development. The programme was held in New Delhi from 15 19 November 2004. Honble Union Minister for SSI & ARI inaugurated the programme. 35 senior policy makers and practitioners representing over 31 member States from the Commonwealth attended this programme.

55

Shri Mahabir Prasad, Honble Minister for Small Scale Industries and Agro & Rural Industries, Shri Anupam Dasgupta, Secretary, Ministry of SSI & A&RI and Shri Rajiv Bhatnagar, CMD, NSIC at the inaugural session of Commonwealth-India Small Business Competitiveness Development Programme at New Delhi

The objective of the programme was to showcase Indias achievements in the area of small business development as well as share experiences & lessons learnt from rest of the Commonwealth. The programme focused at building and developing institutional capacity on competitive small business policies and strategies for Commonwealth developing States. This was done through a combination of best practices, case studies and field visits. The program also provided an opportunity for policy makers and practitioners to network. The programme was divided into eight working sessions. Each session had speakers from India and from COMSEC. Group work was also kept on each day, where participants deliberated on various industries related issues concerning India and Commonwealth member States. The programme evaluation report, recently submitted by the independent evaluator Mr. N. Vittal, highlighted that the event achieved all its major objectives and fulfilled the participants expectations.

Setting Up Of Vocational Training Centre at Jakarta, Indonesia Under ITEC Programme

An agreement for setting up of Vocational Training Centre for construction sector at Jakarta, Indonesia on turnkey basis was signed between NSIC and the Ministry of External Affairs, Govt. of India. The total value of the project is Rs.308.70 lakh. The project is under execution. Plant and equipments for the Centre have already been commissioned.

5.0 NORTH EASTERN REGION

NSIC has a network of offices in NER. This includes two-branch offices at Guwahati (Assam) and Imphal (Manipur) and four suboffices at Dimapur (Nagaland), Itanagar (Arunachal Pradesh), Shillong (Meghalaya) and Agartala (Tripura). The efforts of NSIC in the North East Region are aimed at spreading industrial culture in the

56

region. The training programmes increase employment opportunities of the trainees and enhance possibilities of self-employment. NSIC also organizes exhibitions with an exclusive focus on NER to popularize the products of the region. NSIC, in association with International Centre for Advancement for Manufacturing Technology (ICAMT) of UNIDO, is planning to implement a three-year project for capacity building of SSI units in Food Processing Sector in the North Eastern Region.

7.0 HUMAN RESOURCE DEVELOPMENT & TRAINING

In order to keep abreast with the changing technology and advancements in the various fields, the Corporation strived to keep its human resource current with the latest developments relating to their functional areas. NSIC Corporate office and nine major branch offices are certified for ISO 9001:2000. Continuous efforts are put in to identify the training needs and evolve suitable training plans to fulfill the identified needs. Quality Management System ISO 9001:2000 calls for continuous improvement and training being an important element of the standard, the Corporation has taken all out efforts to train people on ISO 9001-2000 awareness and Internal Quality Audit Training. In the present operational environment, computing skills are essential for every employee in the Corporation. An intensive training was organized for the administrative and support personnel in application of computers.

6.0 ASSISTANCE TO RATIONALIZED WORKERS UNDER THE SCHEME OF COUNSELLING, RE-TRAINING AND RE-DEPLOYMENT OF EMPLOYEES OF CPSUS
A Scheme on Counseling, Re-training and Re-deployment (CRR) of employees of CPSUs is run by the Government of India. One of the objectives of the Scheme is to suitably equip the rationalized workers for redeployment, so that they continue to be useful and productive. For this, the Govt. of India arranges free training/re-training of these workers for wage employment and selfemployment, through nodal agencies for undertaking the training / retraining at different places in the country. NSIC is the nodal agency at Kolkata, Howrah, Hooghly, Durgapur, Ranchi, Burnpur, Bokaro and Dhanbad under the CRR scheme.

8.0 CITIZENS CHARTER

NSIC is committed to efficient and prompt service on the basis of objectivity, transparency and courtesy in dealing with citizens for the promotion and growth of small-scale industries. To inculcate these values in the employees, NSIC has come out with a Citizens Charter. Officers have been assigned to work as a link between the public and the Corporation and members of public can get in touch with these officers for guidance and help.

57

Chapter V TRAINING AND ENTREPRENEURSHIP DEVELOPMENT

1.0 Entrepreneurship Development and to a ceiling of Rs. 1 crore is provided for building, equipments, training aids, etc. The balance 50% is contributed by the State Governments/ Financial Institutions. During 2004-05 an amount of Rs. 210 lakh has been sanctioned for the promotion of EDI in the country. During 2005-06, a budget provision of Rs. 200 lakh has been provided under the Scheme. Training is one of the key elements for the development of small scale industries, particularly, the first generation entrepreneurs. To promote the entrepreneurship development in the country, the Ministry implements 2 important schemes, namely, promotion of Entrepreneurship Development Institutions (EDI) and Scheme of National Entrepreneurship Development Board (NEDB). The Indian Institute of Entrepreneurship (IIE), at Guwahati; the National Institute of Small Industry Extension Training (NISIET), at Hyderabad and the National Institute of Entrepreneurship and Small Business Development (NIESBUD), at New Delhi under Ministry of SSI are responsible for training and entrepreneurship development in the SSI Sector. The National Entrepreneurship Development Board (NEDB) scheme is being implemented by the Ministry of SSI. The NEDB, is the apex body for entrepreneurship development in the country. It devises and recommends to the Government, schemes for the promotion of entrepreneurship for encouraging self-employment and setting up of the small scale industries and small business. Under the Scheme, grant is provided to reputed Under the EDI Scheme, grant is given for setting up of new Entrepreneurship Development Institutions and also for upgradation and modernization of existing Entrepreneurship Development Institutions in the country. Under the Scheme, a matching grant of 50%, subject organizations engaged in the entrepreneurship development for organizing workshops/ seminars; conducting research studies relevant to entrepreneurship development. During 200405, the Ministry has approved a proposal for setting up of an incubator centre for Gems and

3.0 NATIONAL ENTREPRENEURSHIP DEVELOPMENT BOARD (NEDB) SCHEME

2.0 ENTREPRENEURSHIP DEVELOPMENT INSTITUTIONS (EDI) SCHEME

58

Jewellery at Guwahati by IIE, Guwahati at a total cost of Rs. 41.80 lakh. This Centre will cater for the development of the Gems and Jewellery industries of the region. A few studies have also been assigned to reputed institutions, on various issues, relating to entrepreneurship development in the country.

training programmes for 2626 participants, while 43 programmes are scheduled to be completed by March 2005. Out of the total 72 completed programmes, 26 programmes were on Promotion of New Entrepreneurs, 20 programmes on Growth of Existing Entrepreneurs, 2 programmes on Creation of Environment for Entrepreneurship, 19 programmes on Entrepreneurship Education, 2 Seminars, and 3 programmes on Information Technology. Better infrastructure facilities of the Institute, greater awareness about the Institute and addition of new areas of Entrepreneurship Development have been responsible for increase in the number of programmes. The details of the training programmes, during 2004-05 (up to November 2004) and expected achievement for the year can be seen at the following Table. 4.3 Promotion of new entrepreneurs has

4.0 INDIAN INSTITUTE OF ENTREPRENEURSHIP (IIE), GUWAHATI

4.1 Indian Institute of Entrepreneurship (IIE),

will complete its 11th year of operation on 31 March 2005. During this period, the Institute has organized 537 training programmes/workshops/ seminars/meets wherein 15,472 participants participated.

been a major focus area of training organized by IIE. In order to promote new entrepreneurs, the Institute organizes EDPs for rural areas and for women and general participants; crash courses on Self Employment, sector specific EDPs, etc. The Institute is continuing its Rural Industries Programme (RIP) with the help of
His Excellency, Lt. General (Retd.) Shri Ajai Singh Honble Governor 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 Industrialisation of NE Region

SIDBI in Meghalaya, Manipur and Barpeta in Assam. The Institute has initiated a Comprehensive EDP on Gems Stone Cutting and Polishing. 4.4 At the instance of the Ministry of Food Ministry of Science and

4.2

During the year 2004-05 the Institute

proposes to organize 115 training programmes, seminars, workshops and meets, where 3716 participants are expected to participate. Upto November 2004, the Institute completed 72

Processing Industries, Ministry of Small Scale Industries, Technology, Government of India, and North Eastern Development Financial Corporation,

59

Types of Programme and Number of Participants - IIE

Sl. No Programmes No. of ProNo. of grammes Participants Completed Trained during during 2003-04 2003-04 No. of Programmes 2004-2005 Completed Up to Nov.2004 To be Completed Dec,2004 to March 2005 32 10 No. of Participants 2004-2005 Completed Up to Nov. 2004 Expected December to March 2005 800 340

1. 2. 3.

Promotion of New Entrepreneurs (PNE) Growth of Existing Entrepreneurs (GEE) Creation of Environment for Entrepreneurship (CEE) Entrepreneurship Education (EE) Information Technology (IT) Seminar/ Workshop Others Total

78 9 28

2642 170 1082

46 2 22

1582 29 969

4. 5. 6. 7.

4 1

118 7

2 -

1 -

46 -

50 -

120

4019

72

43

2626

1190

in Food Processing, Health, Gem Stone Polishing and Plastic Packaging industries, considering the immense potential of these sectors in the North East, for 374 participants. The Institute with the assistance of Office of the Development Commissioner (SSI), Government of India also started its project for development of Cane and Bamboo Cluster in Nagaland.
Participants during Gems cutting and polishing Training

4.5

The Institute hosted the second phase of

the Advance International Programme on Small the Institute has organized 16 (as on November 2004) sector specific programmes and Medium Enterprises Management Development conducted in association with

60

Participants of EDP on Food Processing, Imphal during practical demonstration

Dr. Kobus Visser, Professor, Department of Management, University of Western Cape, Cape Town, South Africa, delivering Foundation Day Lecture

NIESBUD and Linkoping University, Sweden. The first phase was held at Stockholm, Sweden. The programme was sponsored by Swedish International Development Agency. 4.6 The Institute organized a programme on

Border Trade with Bangladesh and Myanmar for the entrepreneurs of the North Eastern Region. The Institute also organized a programme on Export Marketing to create awareness about the opportunities in the export sector. organized two such programmes for 29 4.7 The Institute proposes to hold a series of participants. 4.9 Creating awareness and orientation for programmes for the beneficiaries of KVIC schemes, during the financial year 2004-05. Till November 2004, the Institute has organized 16 programmes for 606 KVIC beneficiaries. By end of March 2005, the Institute will organize 16 more programmes of this kind. 4.8 Considering the importance of creating an college and university teachers on entrepreneurship has been one of the core areas of the Institute. The Institute organized a teachers training programme in entrepreneurship development for college and university teachers. In addition to this, the Institute has already organized 14 programmes for college students at the instance of the Department of Science and Technology, Government of India; 2 programmes for polytechnic students of Nagaland, environment for entrepreneurship development, the Institute has been organizing programmes for the orientation of the support officials. During the year (upto November 2004) the Institute has
Shri A. K. Baruah, Programme Director of EDP on Jute & its allied products, welcoming the participants

61

at the instance of the Government of Nagaland and 2 programmes for the youth in general, at the instance of the North Eastern Council, Shillong. Till November 2004, 939 persons have participated in these programmes. The details are given in the Table.
Entrepreneurship Education - IIE Sl. No. 1 2 3 4 Total Type of Programmes

for providing a forum for interaction and exchange of views by various agencies and entrepreneurs. Till date, the Institute has organized 2 workshops, one on Industrialization of The North Eastern Region and the other on Prospects of Gems and Jewellery Industries in

No.of Programmes 1 2 14 2 19

No.of Participants 8 34 720 158 920

Teachers Training Programme on Entrepreneurship EDP for Polytechnic Students of Nagaland EAP for College Students EAP for Youth

4.10 At the instance of the North Eastern Council, Shillong, the Institute has organized 2 teachers training programmes on computer application skills. The Institute also organized a certificate course on basic computer applications for 49 participants (as on November 2004). 4.11 The Institute has been organizing seminars, workshops, meets and conferences

the North East. One more workshop/seminar will be organized by the end of March 2005. 4.12 The Institute completed the following research and consultancy assignments during the year:
!

The Status of Small Scale Industries of the North Eastern States of India, 2004 sponsored by the Ministry of Small Scale Industries, Government of India, New Delhi

Diagnostic Study of Bee Keeping Cluster at Nalbari and Jorhat Districts of Assam, 2004, sponsored by KVIC, Guwahati

Study on the Impact of North East Industrial Policy, 1997-2004, sponsored by the Ministry of Small Scale Industries, Government of India, New Delhi

Dr. P. Sinha, Programme Director, welcoming the participants of the workshop on Empowerment of Women

62

The following research and consultancy assignments are on-going:

!

Entrepreneurship Development efforts and training need assessment for entrepreneurial growth in North East

Profiles of 100 successful entrepreneurs from North East

Evaluation of Scheme for Support to Training & Employment Programme (STEP) for women projects, being implemented by Assam Apex Weavers Artisans Cooperative Federation, for Handloom Weavers. Cultural and Socio-economic Contexts:
Shri N. D. Tiwari (m), Honurable Chief Minister of Uttaranchal, during signing of MoU between Indian Institute of Entrepreneurship and the Department of Industrial Development, Uttaranchal for setting up its Regional office at Dehra dun.

4.13 Secretary, SSI&ARI, Government of India, formally inaugurated the Centre for Comprehensive EDP on Gems Cutting and Polishing at the Institutes premises at Guwahati on 24 September 2004. It is expected that the Center would help the artisans in developing their skill and contribute to the economic development of the region. 4.14 An MoU has been signed between Indian Institute of Entrepreneurship and the Department of Industrial Development, Government of Uttaranchal in the presence of the Honble Chief Minister, Shri N.D. Tiwari, for setting up its regional office at Dehra Dun with a contribution of Rs. 5.0 lakh from the Uttranchal Government.

Comparative Aspects on Entrepreneurship. The lecture was delivered by Dr. Kobus Visser, Professor, Department of Management, University of Western Cape, Cape Town, South Africa. His Excellency, Lt. General (Retd.) Ajai Singh, Governor of Assam and the President of IIE, in his address, urged the institute to draw perspective plans and programmes to cater to the needs of the growth and development of the small scale and medium enterprises of the north eastern region. 4.16 The Institute publishes a Quarterly IIE Newsletter, which highlights the activities of the Institute and caters to the information needs of the entrepreneurs of the North East. The Institute published a book titled

4.15 The Indian Institute of Entrepreneurship, Guwahati organized the 10 Foundation Day lecture on Entrepreneurship in Different
th

Swaniyojanar Sandhanat Udyamita (Selfemployment through Entrepreneurship), by Shri Jiten Chandra Kalita, IIE Faculty which was

63

formally released by the Secretary (SSI & ARI), Government of India.

constantly evolving with time, modifying its focus with the emerging needs of SMEs, providing them solutions in the form of consultancy, training, research, and education to retain their competitive edge in ever-changing markets. 5.2 The academic performance indicators for

5.0 NATIONAL INSTITUTE OF SMALL INDUSTRY EXTENSION TRAINING (NISIET)

5.1 The NISIET was set up as an apex

institute in 1960 by the Government of India, with the Charter of assisting in the promotion, development, and modernization of small and medium enterprises (SMEs) in the country, mainly by creating a pro-business environment which would enable SMEs to progress towards success and prosperity. With its vast expertise in the areas of entrepreneurship, policy, technology, management, and information services, the institute is consistently assisting the SMEs to face with confidence, the challenges brought about by globalization and the impact of IT on their businesses. As a global organisation, NISIETs stellar role in positioning the SMEs on the growth trajectory has benefited not only the Indian SME sector, but also developing countries around the world in promoting self-employment and enterprise development. The institute is

2003-04 and for the period from April 1, 2004 to November 30, 2004 (actual) and the projection for the remaining four months of 2004-05 are as presented in the Table. 5.3 During 2004-05, the Institute has taken

up the following research and consultancy projects:

!

Evaluation of on-going schemes of NBCFDC in Kerala

Evaluation of on-going schemes of NBCFDC in Tamilnadu

Evaluation of Training Schemes of NBCFDC in Kerala

Study

on

Demand

and

Supply

Assessment of Ozone Depleting Substance in India sponsored by Ministry of Environment and Forest, Government of India, New Delhi.
! !

Technical Break-up Unit/Interface of KVIC Environmental reporting for Al-Kabeer Exports, Hyderabad

Environmental auditing for Nicholas Piramal, Hyderabad

Environmental Auditing for Alfex International, Hyderabad

64

Academic Performance of NISIET Programmes 2003-04 No. of Programmes No. of Participants 2004-05 From 1.4.2004 From 1.12.2004 to 30.11.2004 to 31.3.2005 (actuals) (Projections) No. of No. of No. of No. of Progra- Partici- PrograParticimmes pants mmes Pants Total

No. of No. of Progra- Particimmes Pants

Entrepreneurship Development Programmes EDPs under Chief Ministers Empowerment of Youth of A.P. for Unemployed Youth
!

448

32640

Counselling, Re-training and Re-deployment of rationalized employees of CPSUs EDPs on Food Processing Industries Other EDPs

24

1276

17

843

43

2150

60

2993

09

250

59

1475

68

1725

22

620

05

121

20

600

25

721

Other Programmes: National: Announced Sponsored International: Announced Sponsored Educational: PG Diploma IT IGNOU Seminars and Workshops Consultancy & Research Total 24 33 11 04 16 13 03 45 27 670 251 1066 203 52 200 119 300 1326 38053 16 19 11 03 08 15 03 12 14 132 162 484 101 18 71 361 157 510 3078 23 30 6 2 2 11 10 07 213 230 650 120 30 30 275 300 5860 39 49 17 05 10 26 03 22 21 345 392 1134 221 48 101 636 157 810 8938

65

Achieving self-sufficiency of societies by Girijan Cooperative Corporation (GCC).

L to R : Dr. C. Rani, Director, CEIE, Dr. Poornima Advani, Chairperson, NCW; HE The Governor of Andhra Pradesh Shri Surjit Singh Barnala; Dr. Chukka Kondaiah, Principal Director, NISIET

Handholding and monitoring services for 20 clusters in the country.

software were made available to promote faster and convenient learning by participants. 5.5 Small Enterprise National Documentation

Project on Crochet Lace cluster at Narsapur, West Godavari District, Andhra Pradesh. Centre (SENDOC) operations were augmented by switching over to electronic and digital information services and products, and the acquisition and installation of electronic journals database and industrial analysis database. In addition, a number of CD-ROMs were added to strengthen the information support system.

Design of project profiles for SMEs in Mauritius

Study on Curriculum Models for Entrepreneurship Development

Study on Competency Mapping of Indian SMEs for Global Promotion.

5.4

In order to cope with the increased poly-

dimensional nature of academic activities and programmes, the old Training Building was demolished and a new building was constructed to improve the physical infrastructure of the institute, landscaping and designing of gardens was also separate environs were created and constructed for specific activities like motivation of entrepreneurs, open-air spots, grounds, and theatres for programmes, festivals, and academic discussions latest gadgets and other essential aids like computers with latest

6.0 NATIONAL INSTITUTE FOR ENTREPRENEURSHIP AND SMALL BUSINESS DEVELOPMENT (NIESBUD), NOIDA, UTTAR PRADESH
6.1 The National Institute for Entrepreneur-

ship & Small Business Development (NIESBUD) is a registered society under the Ministry of Small Scale Industries, Government of India. The major activities of the Institute include, development of model syllabi for training of various target groups; providing

66

of Training Module for Women Producers in TASAR and organized a Rural Clinic for existing entrepreneurs in District Gautam Budh Nagar, U.P. While 22 training programmes were conducted by the Institute with 558, participants during the corresponding period of 2003-04. During the year the Institutes shifting to its new campus in NOIDA which affected its full working for almost 3 months. 6.3 effective training strategies, methodology, manuals and tools; facilitating and supporting Central/State Governments and other agencies in executing programmes of entrepreneurship and small business development; maximizing benefits and accelerating the process of entrepreneurship development; conducting programmes for motivators, trainers and entrepreneurs which are commonly not undertaken by other agencies and organizing activities which help in developing an entrepreneurial culture in the society. ii) 6.2 During the first 8 months of 2004-05 (April to November, 2004), the Institute has organized 16 training programmes with 304 participants. Besides, the Institute undertook the Study on Training Needs Assessment and Development i) A two- day Seminar was organized at the special request of the Commissioner and Director of Industries, Govt. of Uttar Pradesh, on Preventing Industrial Sickness and Sticky Advances. It was attended by 30 participants. The workshop on Impact of World Trade Organization (WTO) on Small & Medium Enterprises (SMES) were conducted at Moradabad for 30 participants, sponsored by the Commissioner & Director of Industries, Government of Uttar Pradesh. The details of the training programmes

(upto November 2004) conducted by the Institute are as per the details given in the Table.

6.4 The Institute organized the following Seminars and Workshops.

Training Programmes conducted by NIESBUD during 2004-05 Training (1) Trainers Training (2) Entrepreneurial Motivation Programme (3) Other Training Programme (4) International Training Programme No. of programme 8 5 8 2 No. of participants 106 46 144 34

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6.5

During the remaining four months of the

6.6

The Institute commenced operations from

year 2004-2005, the Institute expects to conduct 14 training Programmes besides undertaking the following activities:!

its new integrated campus at NOIDA from April, 2004. The campus spread over 2.5 acres of land has interalia facilities for holding conferences / meetings / classes/group /work/ workshops etc. simultaneously, besides 32 Hostel Rooms on a twin sharing basis with adequate infrastructural and recreational facilities for the inmates. 6.7 As part of the MoU (Memorandum of

The Institute has been recognized/ approval as a Nodal Centre for organizing training activities under Counseling, Retraining & Redeployment (CRR) Scheme for Rationalized/Retrenched Employees of Central Public Sector Undertakings (CPSUs) at NOIDA, New Delhi and Aurangabad.

Understanding) signed between the Ministry of SSI, Govt. of India and the Peoples Democratic Republic of Algeria on Small & Medium Enterprises and Handicrafts, the Institute intends to assist in creating an environment conducive for promotion of Small Enterprises in Algeria, developing Human Resource for entrepreneurship development through organizing Trainers Training Programmes, sector specific EDPs and workshops / seminars for Banks and Support Organizations. 6.8 The Institute is closely associated with

The Institutes proposal submitted to the Ministry of Urban Affairs & Employment, Govt. of India for conducting series of workshops & seminars for functionaries of the Swarna Jayanti Shahari Rojgar Yojana, is expected to fructify in near future.

The Institute is going to organize a National Meet of Trainers on Enterprise Development, under the auspices of the Ministry of Small Scale Industries.

implementation of the MoU signed between the

!

The Institute has been recognized as a Nodal Training Centre by the Indira Gandhi National Open University (IGNOU) and Guru Gobind Singh University / for their respective training / academic activities. The Institute is also in the process of organizing a series of Entrepreneurship Awareness Programmes for Under-Graduate and PostGraduate students of various disciplines of Guru Gobind Singh University.

Governments of India and Kenya in the field of Micro & Small Enterprises Sector. 6.9 The Institute is negotiating with CAPMER,

Rawanda for long-term collaboration in the area of entrepreneurship development in terms of organizing Entrepreneurship Training Programmes; developing curriculum for Trainers Training; exchange of faculty between the two countries and to generally have a sustained partnership for development of SMEs in Rawanda.

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Chapter VI INTERNATIONAL COOPERATION

1.0 INTERNATIONAL COOPERATION SCHEME
International Cooperation Scheme for modernization and technology upgradation of small-scale enterprises has been under implementation since 1996. Under this Scheme, SE entrepreneurs are taken to potential foreign markets, for a one to one interaction, for sourcing technology and for export of products. Small enterprises have emerged as a focus area for forging and promoting trade and investment ties with other countries. The economic reform programmes, envisage the emergence of the Indian industry as a global competitor, with substantial presence in the international markets. Technology upgradation, modernization of SSI sector and promotion of exports from this sector are interlinked issues which are important objectives of this Scheme. 1.1 The Scheme was introduced in the 9
th th

Exchange of business delegations, to explore new areas of technology upgradation, facilitating joint ventures, improving marketability of SSI products, foreign collaborations etc.

Holding of seminars/buyer-seller meets, to promote enterprise-to-enterprise interaction through selected agencies, both in India & abroad.

Conducting of surveys and studies for identifying individual units/ cluster of units, for the purpose of intensive enterprise to enterprise interaction through NSIC Ltd. and other national level organizations /institutions.

2.0 INDIA GLOBAL SUMMIT ON SMES

!

The Ministry and Confederation of Indian Industry (CII) jointly with NSIC & SIDBI organized the India Global Summit on SMEs Emerging Challenges & Opportunities, from 23 and 24 November, 2004 at New Delhi. Honble Minister (SSI & ARI) inaugurated the Summit. Dr. R. Chidambaram, Principal Scientific Advisor to the Government of India also gave a presentation. The

Plan and has been continued in 10 Plan, and has been revised recently. The Scheme now encompasses the following activities:
!

Participation in Exhibitions, Fairs and Buyer-Seller Meets (with an international component).

69

Global Summit, facilitated networking and sharing of best international practices in the SME sector, to provide a sustainable focus on the future global development and growth of SMEs. Enabling policies, role of finance/innovative finance & measure for risk sharing, value addition through Information and Communication Technology; Global Outsourcing Opportunities and Global Small Enterprise are some of the topics, that were deliberated upon during the summit. 137 foreign delegates from 27 countries across the globe attended the Summit.

A Syrian delegation led by Dr. Hussein M. Amach, Acting Minister, Prime Ministers Office, Syria also met senior officials of the Ministry during this period.

Secretary (SSI & ARI) visited South Africa and Lesotho during September, 2004 to identify concrete projects for cooperation in the small scale sector. During his visit to the Kingdom of Lesotho, a Memorandum of Understanding between Government of the Republic of India and the Government of the Kingdom of Lesotho for the promotion and development of Small Scale Enterprises was signed.

3.0 SIGNIFICANT EVENTS

!

His Excellency Mr. Mehmed Dikme, Bulgarian Minister of Agriculture and Forestry, Republic of Bulgaria called on Honble Minister of Small Scale Industries & Agro and Rural Industries on 18
th

His Excellency Mr. Paolo Scarpa Bonazza Buaro, the Italian Under Secretary for Agriculture and Forest Policy, met Honble Minister (SSI & ARI) on 6 December, 2004 and discussed possible areas of cooperation between India and Italy for the promotion and development of the small scale sector.

November, 2004 at New Delhi to discuss areas of mutual cooperation in the small scale and agro-rural industrial sectors.
!

Mr. Ghenoun Lakhdar, Secretary General, Ministry of Small and Medium Enterprises and Handicrafts, Algeria, discussed cooperation for development of SMEs with Secretary (SSI&ARI) and other senior officers in the Ministry.
!

The first session of the Joint Committee between Government of India and Algeria instituted under Article 5 of the MoU on Cooperation in the SME sector was held on 22.11.2004 at New Delhi.

70

Chapter VII ACTIVITIES IN NORTH EASTERN REGION

1.0 The North Eastern Region, comprising of Eastern States have been approved as per the table given below : 2.1 The Micro Finance Scheme has been Assam, Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, Tripura and Sikkim has abundant natural resources and these resources can be harnessed for industrial development. The Ministry of SSI is actively promoting the development of small scale industries in the North Eastern region through various plans and programmes implemented by the various organisations of the Ministry. dove tailed with the programmes of Small Industries Development Bank of India (SIDBI), by way of contribution towards security deposits, required from Micro Finance Institutions (MFIs) / Non-Government Organisations (NGOs) to enable them to avail credit facilities from SIDBI. This will not only expand the reach of SIDBI by providing the equity support to MFIs/NGOs in the region but this also ensure their long-term sustainability. Besides, Under the Credit Guarantee Scheme (as on 31.10.2004), 246 proposals from the North it will also help in meeting the training needs of NGOs/Self-Help Groups, facilitators and

2.0 SMALL INDUSTY DEVELOPMENT ORGANISATION (SIDO)

Proposals (State-wise) Approved for North Eastern Region and Amount of Guarantee under the Credit Guarantee Scheme Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. State Assam Manipur Nagaland Meghalaya Arunachal Pradesh Mizoram Tripura Sikkim Total Number of proposals approved 178 29 9 8 2 1 4 15 246 Amount of guarantee cover Rs. lakh 635.79 36.66 80.88 71.68 1.90 8.00 25.90 67.20 928.01

71

entrepreneurs, and enhance the awareness about the micro credit programmes. 2.2 To give a fillip to the growth of the small

North Eastern region participated in the fair. The NSIC also conducted 2 Entrepreneurship Development Programmes (EDPs) on agro processing at Dainabubi, Meghalaya and Dirang, Arunachal Pradesh. 60 entrepreneurs from the region participated in these EDPs. 2 training courses were conducted at Chandigree village, Meghalaya and Dirang, Arunachal Pradesh for 25 participants. 3.3 Financial assistance of Rs. 20.58 lakh

scale industries in the North Eastern region, the funding pattern under the Integrated Infrastructure Development (IID) Scheme has been relaxed from 40% to 80% for the North Eastern region, J&K, Himachal Pradesh and Uttaranchal. Rs. 4.30 crore has been disbursed in the North Eastern region under the Scheme in the current year (till 30.10.2004). 2.3 The proposal for the development of cane

was disbursed by NSIC in the region under the Hire Purchase Scheme. Under the Term Loan Scheme, financial assistance was extended, to the entrepreneurs in the region, for upgradation of technology. 53 SSI units from the region also displayed their products and services in the NSIC Display Centre at Okhla, New Delhi. The Display Centre has an exclusive floor dedicated for display of products from the North Eastern States. Another Display Centre at Kolkata is being operationalised by the NSIC, for exclusive display of products of SSI units of the region.

and bamboo clusters at Dimapur, Nagaland has been approved with a financial assistance of Rs. 45 lakh, to be utilized in the current year. The Indian Institute of Entrepreneurship (IIE), Guwahati is the nodal agency for implementing this project.

3.0 NATIONAL SMALL INDUSTRIES CORPORATION (NSIC) LTD.

3.1 NSIC has provided raw material

assistance to the extent of Rs. 5 crore to the SSI units in the region. In addition, tender marketing support to the tune of Rs. 25 lakh was provided to the SSI units. 3.2 The NSIC Branch Office in Guwahati,

4.0 COMPREHENSIVE ENTREPRENEURSHIP DEVELOPMENT CENTRE (CEDC)

The Ministry has also sanctioned a Comprehensive Entrepreneurship Development Centre (CEDC) for gems and jewellary in the North Eastern region. The Centre has been set up in IIE, Guwahati. Similar Incubator Centres are also proposed to be set up in other North Eastern States.

sponsored an industrial fair organized by the Government of Nagaland in Kohima during November, 2004. 60 SSI units from across the

72

Chapter VIII DEVELOPMENT ACTIVITIES FOR WOMEN

1.0 In the policy measures for promotion and Service and Business (Industry Related) Enterprises (SSSBEs) managed by one or more women entrepreneurs in proprietary concerns, or in which she/ they individually or jointly have a share capital of not less than 51 % as partners/ share holders/ Directors of Private Limited Company/ Members of Co-operative A Small Scale Industrial Unit/Industry related service or business enterprise, managed by one or more women entrepreneurs in proprietary concerns, or in which she/they individually or jointly have a share capital of not less than 51% as Partners/Share-holders/ Directors of Private Limited Company/Members of Cooperative Society.
! !

strengthening of small, tiny and village enterprises announced by the Government in 1991, it was mentioned that the definition of Women Enterprises would be simplified. Accordingly, the definition of Women Entrepreneurs is as under:

Society is called a Woman Enterprise. The total number of women enterprises in the total SSI Sector was estimated at 10,63,721 (10.11 %). The estimated number of enterprises actually managed by women was 9,95,141 (9.46 %). About 13 % of the women enterprises were in the registered SSI sector and the remaining 87 % were in the unregistered SSI sector. With regard to the enterprises managed by women, 11.5 % were in the registered SSI sector and 88.5 % were in the unregistered SSI sector.
!

2.0 PARTICIPATION OF WOMEN IN SSI SECTOR

!

The participation of women in SSI sector has been identified in three different roles in the Third All India Census of SSIs. Some women were owners of enterprises, some were managers of enterprises and some were employees. With regard to ownership, an SSI or a Small Scale

The share of the units managed by women in terms of employment was 7.14%. The employment generated per Rs. 1 lakh investment in the units managed by women was 2.49%.

73

The total number of female employees in the SSI sector is estimated at 33,17,496. About 57.62 % of the female employees were employed in the SSI units located in the States of Tamil Nadu, Kerala, Karnataka, West Bengal and Andhra Pradesh.

implementation of an IID project at Gajularamaram, Distt. Rangareddy, Andhra Pradehs. 64 units have been established by women entrepreneurs providing employment to 1400 persons. In all 108 women entrepreneurs will be benefited from this project. Out of the total project cost of Rs. 347 lakh, Government of India provided grant to the tune of Rs. 139 lakh.
!

The proportion of female employees in the total employment in the SSI sector was of the order of 13.31 %. In the States of Mizoram, Orissa, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu and Pondicherry, the share of women employment was significantly higher (more than 20 %) compared to the total employment in the respective State.

Another IID project at Vijyawada, Distt. Krishna, Andhra Pradesh is being implemented by ALEAP at a project cost of Rs. 370 lakh. Government of India grant of Rs. 52.33 lakh has been released for this project. 123 small and tiny units are expected to come up in this IID Centre when completed.

3.0 TRAINING OF WOMEN ENTREPRENEURS

Various institutes working under SIDO, conduct need based training programmes for existing and prospective women entrepreneurs. 1500 women participated in these training programmes i.e. Industrial Motivational Campaign, Entrepreneurship Development Programmes and Management Development Programmes, conducted by SISIs through out the country, by the end of December, 2004.

5.0 TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT (TREAD) FOR WOMEN
Recognizing the need for economic empowerment of women in rural/urban areas particularly those, who have low education and minimal means of accessing the assistance from the developmental agencies while pursuing their entrepreneurial initiatives for selfemployment in non-farm sector, Trade Related Entrepreneurship Assistance & Development (TREAD) scheme is being implemented.

4.0 WOMEN EMPOWERMENT UNDER IID SCHEME

!

Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP), an NGO comprising of women members only, has successfully completed the The Scheme envisages development of micro/tiny enterprises in the country both in the urban and in the rural areas. The main objective

74

of the Scheme is to empower women economically through development of their entrepreneurial skills by eliminating constraints faced by women in matters of trade. Under the Scheme, there is a provision for assistance in the form of loans, grants, trade related training, trade information, counselling and extension activities relating to product and market development for women entrepreneurs in non-farm sector, in a group mode through reputed Voluntary Organizations (VOs), NonGovernmental Organizations (NGOs) and Self Help Groups (SHGs). iii)

Institute for Small Industry Extension & Training (NISIET), Hyderabad, Small Industries Service Institutes (SISIs), State Level EDIs etc. who will be provided financial support in the form of maintenance grant. To create Entrepreneurship Development Training facility in NGOs for which the financial support will be given for conducting the training programmes. Under the Scheme, the VOs, NGOs/ SHGs with the requisite experience in micro credit, prepare project proposals on behalf of individual women, and submit the proposals to Financial Institution in the prescribed form. Based on the Financial Institutions appraisal the project proposal is vetted by the Office of the DC (SSI) for final approval and release of grant up to a maximum of 30% of project cost to NGOs. The remaining amount is to be provided by the Financial Institution as a loan.

The scheme has three components

i) To provide assistance to the women entrepreneurs through VOs/NGOs/SHGs for non- farm entrepreneurial activity. ii) To build up capacity of Entrepreneurship Development Institutions like National

75

Chapter IX USE OF OFFICIAL LANGUAGE

1.0 Hindi is the Official Language of the Union

4.0 CORRESPONDENCE IN HINDI

Letters to State Government, Union Territory and Central Government offices located in regions A and B were issued in Hindi, to the maximum extent possible. Similarly, efforts were also made to send letters in Hindi to Central Government offices located in region C, as per the targets laid down in the annual programme.

of India and the Government policy is aimed at increasing progressive use of Hindi in official work. Effective steps were taken during the year in the Ministry of Small Scale Industries to ensure the compliance of the Official Language policy of the Government, implementation of the annual programme and compliance with the orders of the President, on the recommendations of the Committee of Parliament on Official Language

2.0 COMPLIANCE OF THE PROVISIONS OF THE OFFICIAL LANGUAGE ACT, 1963

All documents such as resolutions, general orders, rules, licenses under Section 3(3)of the Official Language Act and all papers laid on the Table of the Houses of Parliament were issued bilingually i.e. in Hindi and English. The Ministry is already notified under the Official Language Rule 10(4).

5.0 SECTIONS SPECIFIED FOR WORKING IN HINDI

The sections of the Ministry, notified for doing cent percent work in Hindi, are working satisfactorily.

6.0 MONITORING AND INSPECTIONS

In order to ensure compliance of the Official Language policy, there is constant monitoring and review of the progress reports. During the year, six Sections of the Ministry have been inspected , to ensure use of Hindi and compliance of the Official Language policy.

3.0 REPLIES TO LETTERS IN HINDI

All letters received in Hindi were replied in Hindi only.

76

7.0 TRAINING OF OFFICIALS

All officials of the Ministry, have already been trained in Hindi typing and stenography.

Ministry. To encourage and motivate the employees for doing maximum official work in Hindi, various competitions in Hindi, were organized during this period, in Hindi typing, Hindi stenography, debate in Hindi, Hindi essay and noting and drafting in Hindi. A large number of officers and employees participated in it with great enthusiasm. On the occasion of Hindi Month, the messages of the Honble Home Minister and the Cabinet Secretary were circulated for information and compliance. The prize distribution ceremony was organised on 1 February 2005 and prizes were distributed by the Honble Minister (SSI&ARI). Secretary(SSI&ARI) was also present on the occasion.

8.0 USE OF MECHANICAL AIDS

As per provisions of Official Language Act, bilingual facilities have been provided on office equipments in the Ministry. Computers and terminals have also been installed with facility to work in Hindi.

9.0 HINDI MONTH

Hindi month was celebrated from 1 September to 30 September, 2004 in the

Prize distribution ceremony

77

Chapter X VIGILANCE MATTERS

1.0 The vigilance unit of the Ministry is headed
!

taking appropriate action in respect of departmental proceedings on the advice of the DoPT & CVC;

by a Chief Vigilance Officer (CVO) of the rank of Joint Secretary, Ministry of Small Scale Industries appointed on the advice of the Central Vigilance Commission (CVC). The CVO functions as the nodal point in the vigilance set-up of the Ministry. The secretariat assistance to the CVO in the Ministry of SSI is given by the Vigilance Desk of the Department of Industrial Policy & Promotion (DIPP), as Ministry of SSI being a newly established Ministry does not have its own independent vigilance unit. The vigilance unit is, inter-alia, responsible for the following:
! ! !

obtain second stage advice of the CVC, wherever necessary; and obtain advice of the Union Public Service Commission (UPSC) in regard to the nature and quantum of penalty to be imposed, wherever necessary.

2.0 SMALL INDUSTRIES DEVELOPMENT ORGANISATION

The Vigilance Unit in the office of the Development Commissioner (Small Scale Industries), New Delhi, is headed by a CVO of the rank of Director appointed on the advice of the Central Vigilance Commission(CVC), with full complement of staff under him. CVO is also responsible for all the field offices of the SIDO.

identification of sensitive areas prone to malpractices/temptations and taking preventive measure to ensure integrity/ efficiency in Government functioning;

taking suitable action to achieve the targets fixed by the Department of Personnel & Training ((DoPT) on anticorruption measures;

scrutiny of complaints and initiation of appropriate investigation measures;

3.0 NATIONAL SMALL INDUSTRIES CORPORATION, NEW DELHI (NSIC)

It is the only public sector undertaking under the Ministry of Small Scale Industries, and has its own Part time CVO appointed on the advice of the CVC.

inspections and follow-up action on the same;

furnish of comments to the CVC, on the investigation reports of the Central Bureau of Investigation(CBI);

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4.0

Preventive vigilance continues to receive

iii)

A strict watch is being kept on liaison men and on other persons. The Departmental security instructions are reiterated from time to time for streamlining the entry in the building. To end the practice of professional liaison men operating in the Ministry, a fresh list of such unwanted liaison men has been prepared.

priority attention with primary emphasis on identification of areas sensitive/ prone to malpractices and temptation. The guidelines/ instructions etc. issued by the DoPT and CVC from time to time in this regard are followed. Action taken inter-alia includes the following:iv) i) Regular and surprise inspections are carried out by the Departmental Security Officer of the DIPP. In the attached and subordinate offices, respective Departmental Security Officers carry out these inspections etc. ii) Strengthening of vigilance machinery by way of appointing CVO in the offices and organisations under the Ministry, who looks after the vigilance activities in the office/organization concerned. (v)

Cases of the officers, who have attained the age of 50 years or have put in 30 years of service are reviewed under FR 56 (j) in order to judge their suitability to continue in service thereafter. The exercise is currently being done by the Establishment Division of the DIPP. In order to make officers conscious of the provisions of Conduct Rules applicable to them as also to acquaint them with the importance of departmental security, Rules/Instructions are reiterated in this respect from time to time.

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Chapter XI CITIZENS CHARTER

1.0 This Charter is a declaration of the

Organizations, for the benefit of small scale industries. The objective is to promote aid and foster growth of SSIs, by providing them institutional support in the areas of marketing, export, technology upgradation, training and common facilities services. We aim at providing prompt services/training needs to citizens through our field agencies like Small Industry Development Organization and the National Small Industries Corporation, so that the growth of the SSIs is enhanced, quality of production is improved and more employment opportunities are generated.

Ministry, incorporating policies, missions, commitments for the small scale entrepreneurs and for the people of India in general.

2.0 MINISTRY OF SSI

The Ministry of Small Scale Industries (SSI) is responsible for designing and formulation of policy, for promoting the growth of small scale enterprises in the country. The actual implementation of the policy is done by the Ministrys field organizations like Small Industry Development Organization (SIDO) through their Small Industries Service Institutes (SISI), National Small Industries Corporation Ltd. (NSIC) etc. The

4.0 OUR VALUES

The Ministry is committed to efficient and prompt service with transparency and courtesy in dealing with citizens.

Organizations of the Ministry have their own Citizens Charter.

3.0 OUR MISSION

Our mission is to support the Small Scale Industries (SSI) by way of advocacy with the various organizations of Government, by providing services to support the growth development of small scale enterprises and by management of programmes through Government and Non-Government

5.0 OUR COMMITMENT

The Ministry will be dutiful, disciplined and will respect the right of entrepreneurs and SSI Associations. The Ministry will maintain and uphold the confidentiality of personal and business information disclosed to it by citizens. To continuously review the provisions and enforcement of laws and regulations in

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consultation with SSI associations and other groups which help the SSI units.

Ministry at Udyog Bhavan, New Delhi. However, before lodging of a complaint, one may, first of all, use the information and facilitation counter of the Ministry. In case, one is not satisfied, the matter may be taken up with the Grievance Officer in this Ministry. The address, phone number and fax number of the Information and Facilitation Counter and the Grievance Cell are as follows:

6.0 STANDARD FOR GENERAL PROCEDURE

The letters received by the Ministry will be acknowledged in 15 days.

7.0 RESPONSIBILITIES OF OUR CITIZEN

The Ministry expects continuous feed back from the citizen on the quality of the services provided to them and on areas in which improvements are expected.

11.0 IMPORTANT ADDRESSES WEBSITES ADDRESS

(2) Grievance Cell Dy. Secretary Ministry of SSI Room No.124 -D Udyog Bhavan New Delhi - 110011 Tel. No. 23015543 No. 011-23010886 (fax) (2) Information and Facilitation Counter Gate No.4, Ground Floor Nirman Bhavan New Delhi-110 011. Tel.No.23019219 www.ssi.nic.in www.laghu-udyog.com www.nsicindia.com www.niesbud.com www.nisiet.com www.iie.nic.in - Ministry of SSI - SIDO - NSIC - NIESBUD - NISIET - IIE

8.0 ASSESSING PERFORMANCE

The Ministry will share its performance with citizens through the media. The Ministry will hold independent surveys on perceptions of citizens and assessment of its performance.

9.0 GUIDANCE AND HELP

The information and facilitation counter of the Ministry located on the ground floor, Gate No.4, Nirman Bhavan, New Delhi provide information on the services and activities of the Ministry and related organizations of the SSI sector.

10.0 COMPLAINTS
In case of any complaint, one may telephone or send a letter or fax or visit the

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FACTS AT A GLANCE
S. Year No. Total SSI Units (numbers in lakh) 67.87 70.63 (4.07) 3 4 5 6 7 8 9 10 11 12 13 14 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 73.51 (4.07) 76.49 (4.07) 79.60 (4.07) 82.84 (4.07) 86.21 (4.07) 89.71 (4.07) 93.36 (4.07) 97.15 (4.07) 101.1 (4.07) 105.21 (4.07) 109.49 (4.07) 113.95 (4.07) Note (1) (2) (3) Fixed Investment (Rs. crore) 93555 100351 (7.26) 109623 (9.24) 115795 (5.63) 123790 (6.9) 125750 (1.58) 130560 (3.82) 133242 (2.05) 135482 (1.68) 139982 (3.32) 147348 (5.26) 154349 (4.75) 162533 (5.30) 170726 (5.04) Production (Rs crore) Current Constant Prices Prices (1993-94) 63518 73072 (15.04) 85581 (17.12) 98804 (15.45) 122210 (23.69) 148290 (21.34) 168413 (13.57) 189178 (12.33) 212901 (12.54) 234255 (10.03) 261289 (11.54) 282270 (8.03) 311993 (10.53) 357733 (14.66) 68295 79180 (15.94) 93523 (18.11) 98804 (5.65) 109116 (10.44) 121649 (11.49) 135380 (11.29) 147824 (9.19) 159407 (7.84) 170709 (7.09) 184428 (8.04) 195613 (6.06) 210636 (7.68) 228730 (8.59) Employment Exports (lakh persons) (Rs. crore) 158.34 165.99 (4.83) 174.84 (5.33) 182.64 (4.46) 191.40 (4.79) 197.93 (3.42) 205.86 (4.00) 213.16 (3.55) 220.55 (3.46) 229.10 (3.88) 239.09 (4.36) 249.09 (4.18) 260.13 (4.43) 271.36 (4.32) 9664 13883 (43.66) 17784 (28.10) 25307 (42.30) 29068 (14.86) 36470 (25.46) 39248 (7.62) 44442 (13.23) 48979 (10.21) 54200 (10.66) 69797 (28.78) 71244 (2.07) 86013 (20.73) NA

1 2

1990-91 1991-92

Figures in brackets show the percentage growth over the previous year. The production, at constant prices for the year 2003-2004, is based on the growth rate achieved in the first three quarters of 2003-2004 (i.e. April- December, 2003). The production at current prices is compiled on the basis of average Wholesale Price Index (April-December, 2003) of manufactured products.

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83

ACRONYMS
ARI CAD CAM CFTI CGFS CLCSS CNC DC (SSI) EDP FTS IDTR IGTR IID IIE ISO LUCC MDA MDP NEF Agro and Rural Industries Computer Aided Design Computer Aided Manufacturing Central Footwear Training Institute Credit Guarantee Fund Scheme Credit Linked Capital Subsidy Scheme Computerized Numerical Control Development Commissioner (Small Scale Industries) Entrepreneurship Development Programme Field Testing Station Indo-Danish Tool Room Indo-German Tool Room Integrated Infrastructural Development Indian Institute of Entrepreneurship International Organisation for Standardization Laghu Udyami Credit Card Market Development Assistance Management Programme National Equity Fund ship NISIET NSIC and Small Business NIESBUD National Institute for EntrepreneurDevelopment TRTC VDP WTO TRC TREAD SME SSI TDMF SIDO SEPTI RTC SDP SENET PMRY PPDC NTSC National Centre Prime Ministers Rozgar Yojana Process-cum-Product Development Centre Regional Testing Centre Skill Development Programme Small Enterprise Information and Resource Centre Network Small Entrepreneurs Promotion and Training Institutes Small Industries Development Organisation Small and Medium Enterprises Small Scale Industries Technology Development Modernisation Fund Technology Research Centre Trade Related Entrepreneurship Assistance and Development for Women Tool Room and Training Centre Vendor Development Programme World Trade Organisation Small Industries Corporation Technical Service

UNIT
1 Crore 10 Lakh 1 Lakh 10 Million 1 Million 100 Thousand

Development National Institute of Small Industry Extension Training National Small Industries Corporation Limited.

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