AN OVERVIEW - · PDF fileBusiness Development (NIESBUD) at Noida and Indian Institute of Entrepreneurship (IIE) ... 2.4.2 Functions of the Advisory Committee will be to (i) examine

AN OVERVIEW

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Ministry of Small Scale Industries

Chapter 1

1.1.0 BACKGROUND

1.1.1 The small scale industries (SSI)constitute an important segment of theIndian economy in terms of their contributionto the country ’s industr ia l product ion,exports, employment and creation of anentrepreneurial base. The Governmentestablished the Ministry of Small ScaleIndustries and Agro and Rural Industries(SSI & ARI) in October, 1999 as the nodalMinistry for formulation of policies andCentral sector programmes/schemes, theirimplementation and related co-ordination, tosupplement the efforts of the States forpromot ion and development of theseindustries in India. The Ministry of SSI &ARI was bi furcated into two separateMinistries, namely, Ministry of Small ScaleIndustries and Ministry of Agro and RuralIndustries in September, 2001.

1.1.2 The role of the Ministry of SmallScale Industries is thus to mainly assist theStates in their efforts to promote growth anddevelopment of the SSI, enhance theircompetitiveness in an increasingly market-led economy and generating additionalemployment opportunities. In addition, theMinistry attempts to address issues ofcountry-wide common concerns of thissegment and also undertake advocacy onbehalf of the SSI for this purpose. The

AN OVERVIEW

specific schemes/programmes undertakenby the organisations of the Ministry seek tofac i l i ta te/prov ide one or more of thefollowing:

l adequate credit from financialinstitutions/banks;

l funds for technology upgradationand modernisation;

l integrated infrastructural facilities;

l modern testing facilities andquality certification laboratories;

l access to modern managementpractices, entrepreneurshipdevelopment and skill upgradationthrough appropriate trainingfacilities;

l assistance for better access todomestic and export markets; and

l cluster-wide measures to promotecapacity-building andempowerment of the units andtheir collectives, in addition to allor some of the above-mentionedsupports.

1.2.0 ORGANISATIONS OF THEMINISTRY

1.2.1 The formulation and implementationof the policies and programmes/projects/

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Annual Report 2006-2007

schemes is undertaken by the Ministry withthe assistance of its attached office andpublic sector enterprise, namely, the SmallIndustry Development Organisation (SIDO)and the Nat ional Smal l Industr iesCorporation Ltd (NSIC).

1.2.2 Government has also set up theNational Commission on Enterprises in theUnorganised Sector (NCEUS) to suggestpolicies and programmes for addressing thewide range of issues af fect ing theproductive potential of the large segmentof unorganised micro and small productiveunits.

1.3.0 SMALL INDUSTRIESDEVELOPMENTORGANISATION (SIDO)

1.3.1 The Off ice of the DevelopmentCommissioner (Small Scale Industries) [DC(SSI)] is also known as the Small IndustryDevelopment Organisat ion (SIDO).Established in 1954, it is the apex body forassisting the Government in formulatingand overseeing the implementation of itspol ic ies and programmes/pro jects/schemes. The SIDO is headed by theAddi t ional Secretary & DevelopmentCommissioner (SSI).

1.3.2 SIDO provides a comprehensiverange of common facil it ies, technologysupport services, marketing assistance,entrepreneurial development support, etc.,through its network of 30 Small IndustriesService Institutes (SISIs), 28 Branch SISIs,

4 Regional Testing Centres (RTCs), 7 FieldTest ing Stat ions (FTSs), 2 Smal lEntrepreneur Promot ion and Train ingInstitutes (SEPTIs) and 1 Hand Tool DesignDevelopment and Training Centre. TheSIDO also has a network of Tool Roomsand Process-cum-Product DevelopmentCentres (PPDCs) to provide technology andtraining support. These institutions are runas autonomous bodies, registered associeties under the Societies Act.

1.3.3 Over the last 52 years, the SIDOhas served a very useful purpose as acatalyst of growth of the micro, small andmedium enterpr ises through i ts vastnetwork of field organisations spread allover the country.

1.4.0 NATIONAL SMALLINDUSTRIES CORPORATIONLTD. (NSIC)

The Nat ional Smal l Industr iesCorporation Ltd., (NSIC), was establishedby the Government in 1955 as a PublicSector Company, with a view to promoting,aiding and fostering the growth of micro,small and medium enterprises (MSMEs) inthe country, with focus on commercialaspects of the i r operat ions. NSICimplements several schemes to help theMSMEs in the areas of raw mater ia lprocurement, product marketing, creditrating, acquisition of technologies, adoptionof improved management practices, etc.through its 7 Zonal Offices, 26 BranchOff ices, 15 Sub Of f ices, 5 Nat ional

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Technical Services Centres, 2 SoftwareTechnology Parks and 3 Technical ServicesExtension Centres, spread practically allover the country. The Corporation, an ISO:9001-2000 Company has also set up anumber of turnkey pro jects in manydeveloping countries.

1.5.0 NATIONALENTREPRENEURSHIPDEVELOPMENT INSTITUTES(EDIs)

Entrepreneurship development andtraining is one of the key elements for thepromotion of Micro, Small and MediumEnterprises (MSMEs), particularly, the firstgeneration entrepreneurs. To undertakethis task on regular basis, the Ministry hasset up 3 national-level EntrepreneurshipDevelopment Inst i tu tes, v iz Nat ionalInst i tu te of Smal l Industry ExtensionTraining (NISIET) at Hyderabad, NationalInstitute of Entrepreneurship and SmallBusiness Development (NIESBUD) atNoida and Indian Inst i tu te of

Entrepreneurship (IIE) at Guwahati, asautonomous societies. These institutes areengaged in the development of trainingmodules, undertaking research and trainingand providing consultancy services forentrepreneurship development andpromotion of MSMEs.

1.6.0 NATIONAL COMMISSION FORENTERPRISES IN THEUNORGANISED SECTOR(NCEUS)

The Nat ional Commission forEnterprises in the Unorganised Sector hasbeen constituted in September, 2004 for aperiod of three years. The Commission hasbeen given the mandate to examine theproblems of enterprises in the unorganisedsector and suggest measures to overcomethem. It consists of a Chairman, three fulltime members, three part-time membersand an Advisory Board consis t ing ofeminent experts from fields related to theunorganised sector.

RECENT POLICY INITIATIVES

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RECENT POLICY INITIATIVES

Chapter 2

2.1.0 MICRO, SMALL AND MEDIUMENTERPRISESDEVELOPMENT ACT, 2006

2.1.1 There was a longstanding demandfrom entrepreneurs, smal l industryassociations and related stakeholders for asingle comprehensive legislation. The“Micro, Small and Medium EnterprisesDevelopment (MSMED) Act, 2006” is the firstAct for micro, small and medium enterpriseswhich, inter alia, provides for establishmentof a statutory National Board for Micro, Smalland Medium Enterpr ises, f i l ing ofmemoranda, measures for promotion,development and enhancement ofcompetitiveness of micro, small and mediumenterprises, credit facilities, procurementpreference and provisions related to delayedpayments to micro and small enterprises.The medium sector has been defined for thefirst time in India and Micro enterprises havebeen defined for the first time in this Act.

2.1.2 The necessary Notifications/Rules,etc. under the Act have been notified bythe Central Government and MSMED Act,2006 came into effect from 2nd October ,2006.

2.2.0 CLASSIFICATION OFINDUSTRIES ( NOWENTERPRISES )

2.2.1 Under the MSMED Act 2006, theear l ie r , ra ther l im i ted , concept o f‘Industries’ has been widened to that of‘Enterpr ises ’ . Enterpr ises have beenclassif ied broadly into two categories,namely enterpr ises engaged in themanufac ture /product ion o f goodspertaining to any industry; & enterprisesengaged in providing/rendering of services.Enterprises have been defined in terms ofinvestment in p lan t and mach inery /equipment (excluding land & building) asbelow (Table 2.1).

Investment in plant and machinery/equipment (excluding landand building)Manufacturing Enterprises Service Enterprises

Micro Up to Rs. 25 lakh Up to Rs. 10 lakh

Small More than Rs. 25 lakh and More than Rs. 10 lakh andup to Rs. 5 crore up to Rs. 2 crore

Medium More than Rs. 5 crore and More than Rs. 2 crore andup to Rs. 10 crore up to Rs. 5 crore

Definition of MSM Enterprises : Table 2.1

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2.3.0 APEX CONSULTATIVE BODYWITH WIDEREPRESENTATION OFSTAKEHOLDERS

2.3.1 Under the new Act, action have

been in i t ia ted fo r const i tu t ion o f the

Nat iona l Board fo r Micro , Smal l and

Medium Enterprises, which will be headed

by the Cent ra l Min is ter In Charge o f

MSMEs and will consist of members from

(i) MPs (i i) Representatives of Central

Ministries (iii) State Governments (iv) UT

Administration, RBI, SIDBI, NABARD (v)

Associations of MSMEs including women

(vi) Persons of eminence and (vii) Central

Trade Union Organisations.

2.3.2 National Board for Micro, Small and

Medium Enterprises will have a statutory

status as against non-statutory SSI Board.

I t wi l l be mandatory to hold quarter ly

meetings of National Board.

2.3.3 Functions of the National Board for

MSMEs will be to (i) examine the factors

affecting the promotion and development

of MSMEs and review the policies and

programmes of the Central Government in

this regard (ii) make recommendations on

matters referred to as above or any other

mat ter re fer red to i t by the Cent ra l

Government ( i i i ) adv ise the Cent ra l

Government on the use of Fund or Funds

constituted under section 12 of the MSMED

Act.

2.4.0 ADVISORY COMMITTEE

2.4.1 As per the provisions of MSMED

Act, 2006, the Central Government has

a l ready cons t i tu ted an Adv iso ry

Committee, for a period of two years with

effect from 27th September, 2006, which

is headed by Union Secretary In-Charge

of MSMEs. The other members are Union

Secretar ies of Minist ry/Department of

Commerce, Food Processing Industries,

Labour and Employment , Revenue ,

Adv isor (VSI) , P lanning Commiss ion,

Secretaries (dealing with micro, small and

med ium en te rp r i ses ) , o f the S ta te

Governments of Andhra Pradesh, Assam,

Ut tar Pradesh, Pres ident , Tami lnadu

Assoc ia t ion o f Co t tage and T iny

En t rep reneurs , Chenna i , P res iden t ,

Federat ion of Indian Micro, Small and

Med ium En te rp r i ses , New De lh i and

President, CII, New Delhi. I ts member

secretary wi l l be the Union Addit ional

Secre ta ry and Deve lopment

Commissioner (SSI), New Delhi.

2.4.2 Funct ions of the Advisory

Committee will be to (i) examine the matters

referred to it by the National Board; (ii)

advise Central Government on matters

specified in clauses 7(i),9,10,11,12 and 14

of MSMED Act 2006 and (iii) advise State

Governments on matters specified in the

rules under clause 32 of the MSMED Act,

2006.

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OTHER INITIATIVES

2.5.0 NATIONAL MANUFACTURINGCOMPETITIVENESSPROGRAMME (NMCP)

2.5.1 The Government with an objective

to suppor t the manufactur ing sector

enterprises (part icularly the small and

medium enterprises) in their endeavour to

become competitive, announced in 2005-06,

formulation of “National Manufacturing

Competitiveness Programme” (NMCP) The

design of the scheme was to be worked out

by the Nat ional Manufactur ing

Compet i t iveness Counci l (NMCC) in

consultation with the industry.

2.5.2 Accordingly, the five year NMCP, as

finalised by NMCC was accepted by the

Government and announced for

implementation in the Budget 2006-07,

which comprised ten component schemes,

which, inter alia, include the schemes for

application of lean manufacturing, design

clinic, promotion of ICT in manufacturing

sector , set t ing up Min i -Tool Rooms,

technology & quality management support

for SMEs, entrepreneurial & management

development of SMEs, encouragement of

quality management standards and quality

technology tools, national campaign for

investment in intellectual property, SMEs &

technology up-gradation act ivi t ies and

marketing support/assistance to SMEs. Its

implementation will be in the PPP model.

2.6.0 PACKAGE FOR PROMOTIONOF MICRO AND SMALLENTERPRISES

2.6.1 In order to assist the micro and smallenterprises in fully harnessing their potential byenhancing their competitiveness to face thechallenges of stiff competition (both in thedomestic and global market) and in availingopportunities generated by trade liberalization,the Government in the NCMP declared that a“major promotional package” will be announcedfor this segment to provide full support in theareas of credit, technological up-gradation,marketing and infrastructure up-gradation inmajor industrial infrastructure. In fulfilment ofthis assurance in the NCMP, a package hasbeen formulated which, inter alia, include issuesconcerning (i) legislative back up; (ii) creditsupport; (iii) fiscal measures; (iv) support forcluster based development; (v) technologicaland quality up-gradation support; (vi) marketingsupport; (vii) support for entrepreneurial andmanagerial development; (viii) empowerment ofwomen owned enterprises; (ix) strengthening ofPrime Minister’s Rozgar Yajana and (x)strengthening of data base for MSME Sector.

2.7.0 RESERVATION / DE-RESERVATION OFPRODUCTS FORMANUFACTURE IN THESMALL SCALE SECTOR

2.7.1 With a view to providing to the SSIopportunities for technological upgradation,promotion of exports and economies of scale,

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items reserved for exclusive manufacture bythe SSI have been dereserved from time totime. The dereservation process involvesextensive consultation with all the stakeholders, including the SSI associations andvarious Ministries/Departments concernedand the Planning Commission. As per theprovisions of the I (DR) Act an AdvisoryCommittee has been constituted whichrecommends reservation/dereservation ofi tems from time to t ime. The AdvisoryCommittee makes its recommendations onthe basis of the laid down procedure in theI(D&R) Act, 1951 which relates to the

economy of scale, the level of employment,the possibility of encouraging and diffusingentrepreneurship in industry, the preventionof concentration of economic power to thedetriment of the common interest and anyother issue which the Committee may thinkfit. The Advisory Committee has met 26 timesso far. The last meeting of the committee washeld on 24th October 2006. During the year2006-07, 180 items reserved for manufacturein small scale industries have been de-reserved. As on date, there are 326 itemsreserved for exclusive manufacture in smallscale sector.

NNNNNMMMMM

PPPPP OOOOO

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SMALL INDUSTRIESDEVELOPMENT ORGANISATION

(SIDO)

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Chapter 3

SMALL INDUSTRIES DEVELOPMENTORGANISATION (SIDO)

3.1.0 ROLE AND FUNCTIONS

3.1.1 The Off ice of the DevelopmentCommissioner (Small Scale Industries)headed by the Development Commissioner,is an apex body for ass is t ing theGovernment in formulating, coordinating,implementing and monitoring policies andprogrammes for promot ion anddevelopment of the micro, smal l andmedium enterprises (MSME) in the country.I t provides a comprehensive range offacilities and services to the MSME througha network of 30 Small Industries ServiceInst i tu tes(SISIs) , 28 Branch SISIs, 4Regional Testing Centres (RTCs), 7 FieldTesting Stations (FTSs), 1 Hand ToolDesign Development and Training Centreand 2 Small Entrepreneur Promotion andTraining Institutes (SEPTIs).

3.1.2 With a view to facilitating transferof technology for technological upgradationof the MSME, Technology ResourceCentres (TRC) have been set up in all the30 SISIs. These Centres ident i fyappropriate technologies and work with theMSME to assist them in acquiring them.With increasing emphasis on cluster baseddevelopment of the MSME, the TRCs havestarted concentrating on clusters of smallindustr ies for del ivery of appropr ia tetechnology related services.

3.1.3 Besides, there are 18 autonomousbodies operating with the SIDO, whichoffer to the MSME an array of services inproduct design, tool ing, research andhuman resource development, marketing,e tc . These au tonomous ins t i t u t i onsinc lude 10 Too l Rooms loca ted a tHyderabad , Bhubaneshwar , Ko lka ta ,Jamshedpur , Aurangabad , Indore ,Ahmedabad, Ludhiana, Jalandhar andGuwahati; two Central Footwear TrainingIns t i t u tes a t Agra and Chenna i ; twoProduc t -cum-Process Deve lopmentCen t res a t Agra and Meeru t ; oneFragrance & Flavour Development Centreat Kannauj, one Centre for Developmento f G lass Indus t ry a t F i rozabad , oneInstitute for Design of Electrical MeasuringInstruments at Mumbai and one ElectronicServ ice and T ra in ing Cen t re a tRamnagar.

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3.1.4 The major activities of SIDO includethe following:

l Advis ing the Government informulat ion of pol ic ies andprogrammes/projects/schemes forthe promotion and development ofthe MSME.

l Providing techno-economic andmanagerial consultancy, commonfacility and extension services to theMSME.

l Providing support for technologyupgradation, modernisation, qualityimprovement and infrastructurefacilities.

l Assist ing the MSME in humanresource development throughtraining and skill upgradation.

l Providing economic informationservices to the MSME.

l Maintaining a close liaison with theCentra l Min is t r ies, PlanningCommission, State Governments,Financial Inst i tut ions and otherorganisations concerned with thedevelopment of the MSME.

l Evolv ing, implement ing andcoordinat ing pol ic ies andprogrammes for development of theMSME as ancillaries to large andmedium industries.

l Providing testing and calibrationservices to the MSME.

l Implement ing / moni tor ing theflagship schemes of:

o Credit Guarantee Fund

o Credit Linked Capital Subsidyfor Technology Upgradation

o Smal l Industr ies ClusterDevelopment Programme

3.1.5 An amount of Rs. 378.11 crore hasbeen allocated for implementation of theplan schemes during the financial year2006-07.

3.2.0 SIDO SCHEMES/ MEASURESFOR PROMOTION OF SMALLSCALE INDUSTRIES

3.2.1 ADVERTISING AND PUBLICITY

3.2.1.1 The Advert is ing and Publ ic i ty

Division of Small Industries Development

Organisat ion (SIDO) d isseminates

information about the Government policies

and programmes, incentives and facilities

and institutional support services available

to MSMEs. I t coord inates wi th the

Directorate of Audio Visual Publicity (DAVP)

and SIDO’s f ie ld of f ices for t imely

appearance of adver t isements on

entrepreneurship development

programmes, skill development courses,

etc. , in local language newspapers in

different parts of the country.

3.2.1.2 An ef fect ive media p lan forcoverage was prepared for wide publicity of

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the special events organised by the Ministryof Small Scale Industries and Ministry ofAgro & Rural industr ies. 7 d isp layadvertisements for National Expo of Small,Agro & Rural Industr ies and Nat ionalConvention & National Award Function weredesigned and released in all daily English/Hindi newspapers for wide publicity acrossthe country for a period of 14 days. Publicitymaterial for such events covering handbills,brochures, exhibitor’s directory, jingles onradio, TV spot massages, hoarding, posters,banners in Engl ish & Hindi , etc. , wasprepared for various modes of publicity. Inaddition to this, advertisement on the Micro,Smal l and Medium Enterpr isesDevelopment Act, 2006 was also designedand released in the national newspapers on2nd October, 2006 for general awareness.The Div is ion also arranged the pressconference and meet and coordinated thepress coverage & releases of such events.

3.2.2 LAGHU UDYOG SAMACHARAND OTHER PUBLICATIONS

3.2.2.1 Laghu Udyog Samachar, a b i -monthly Journal in English and Hindi forMSMEs is d isseminat ing updatedinformation for the benefit of the prospectiveand existing entrepreneurs. Laghu UdyogSamachar is an important window in printfor the MSMEs, providing access to thelatest information on a variety of topics. Itcreates awareness and d isseminatesinformation on policies and programmes ofthe Central and the State Governments,Government of India orders, circulars,

gazet te not i f icat ions, f ie ld act iv i t ies,statistical and economic information as wellas articles on various issues pertaining tothe MSMEs.

3.2.2.2 During the year 2006-07, followingpublications were brought out:

(i) Laghu Udyog Samachar BilingualJanuary - March, 2006

(ii) Laghu Udyog Samachar BilingualApril – May & June-July,2006 (combined issue)

(iii) Laghu Udyog Samachar BilingualAugust – September,2006

(iv) Laghu Udyog Samachar BilingualOctober -December, 2006(In press)

(v) A Guide to New EnglishEntrepreneurs

(vi) Naye Udmiyon Ke Liye HindiMargdarshika (In press)

3.2.3 INFORMATION &FACILITATION COUNTER(IFC)

The Information and Facil itationCounter (IFC) in the office of the DC (SSI)is disseminating updated information for thebenefit of the prospective and existingentrepreneurs. The IFC provides speedyand easy access to information to the publicon the services and activities of SIDO andrelated institutions in the area of MSMEs

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promotion and development. The IFC iscomputerised (Touch Screen Kiosk) andsupplemented by hard copies of informationsuch as brochures, pamphlets, books, etc.The general information and documentsmade available to the entrepreneurs pertainto (i) counselling & information on how toset up an enterprise and provide properguidance, ( i i ) documents on technicalschemes, project reports and details ofvarious programmes implemented by theSIDO, (iii) policies concerning MSMEs andschemes of various State Governments forpromotion of MSMEs, (iv) give informationon the filing of memorandum, (v) informationon the Micro, Small and Medium EnterprisesDevelopment Act, 2006, (vi) credit policiesof the Government, (vi) statistics related tosmall scale industries, (vii) technical andmarketing information concerning MSMEs,(vii) list of Items reserved for exclusivemanufacture in MSMEs, etc.

3.2.4 SMALL ENTERPRISEINFORMATION & RESOURCECENTRE NETWORK (SENET)

3.6.4.1 “Small Enterprise Information &Resource Centre Network” (SENET), waslaunched in April 1997 SENET has beenawarded the Golden Icon National Award 2005for “Best Documented Knowledge Resource”under Professional Category by theDepartment of Administrative Reforms & PublicGrievances (DARPG), Government of India.The scheme of SENET was modified and itsscope enlarged to include office automation.

The objectives of the SENET scheme are:

l to pioneer, create and promote web-based database of a l l re levantin format ion, data, e tc . , for thebenefit of small scale sector;

l to facilitate easier on-line access toinformation seekers, especially thesmall scale sector, by networkingto the extent possible, all relevantdata f rom Centra l & Stategovernments, government agenciesengaged directly or indirectly in thepromotion, development, etc. of theMSME sector, National and State-level industry associations, NGOs,etc.;

l · to establish possible linkages withexist ing databases and the endentrepreneurs for development andpromotion of the small scale sector;

l to s tandard ise by in t roducingautomation tools and related soft-wares to streamline data storageactivity in the office of the DC(SSI)with an objective of bringing outtransparency of relevant real timedata through on-line access by thepublic;

l to create and maintain a website forhosting all relevant data, to theextent possible, as available withinthe Office of the DC (SSI);

l to also hyperlink other websites,especially field formations of the

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Office of the DC(SSI), autonomousbodies, other governmentdepartments, etc. in order to enableone-stop-access for the informationseekers, industry associat ions,individual industries, etc.;

3.2.4.2 PERFORMANCE /ACHIEVEMENTS OF SENET

3.2.4.2.1 In the headquarters at Delhi,IT-Infrastructure in the main Centre hasbeen developed with a dedicated serverroom having several independent servers,including two web-servers for hosting thisoffice’s website. Three database servershave been commissioned along with 2-Mbpsdedicated leased-line connectivity alongwith a structured LAN. An English websitewas created and launched in 2000. It wasupgraded to a knowledge-based databasedr iven, in teract ive por ta l , which waslaunched on 30th August 2001. This portalnow has more than 8000 pages of staticinformation and is being updated regularly.A Hindi language website has also beencreated and regularly maintained through anhyperlink. The entire IT-infrastructure hasbeen protected by installation of a highlysophisticated Intruder Detection System(IDS). Local Area Networking (LAN) hasbeen introduced by providing computers toalmost all the officers. All computers havebeen networked with LAN and are alsoprovided with internet connections. A fewcomputers have been provided with accessto view live parliamentary proceedings. On-

l ine data for ISO-9000 reimbursementscheme has been introduced. The latestMSMED Act-2006 has been hosted on thewebsi te. Document ManagementInformat ion System (DMIS) has beenintroduced to enable a system to track filetracking.

3.2.4.2.2 In field offices of the Office ofthe DC(SSI), 20 SENET Centres wereinitially given networking equipment for 64kbps leased line connection to the maincentre and database building. 10 more SISIswere provided with networking hardware.Almost all SISIs will be networked duringthe current financial year. All SISIs havebeen hyperlinked to website of the Officeof the DC(SSI). Thirty numbers of ‘TouchScreen Kiosks’ have been installed in all thef ie ld of f ices, namely Smal l Industr iesServices Institutes (SISIs) throughout thecountry to enable information seekers getany web-based data pertaining to office ofthe DC(SSI).

3.2.5 MODERNISATION OF SIDOLIBRARIES

3.2.5.1 SIDO mainta ins l ibrar ies at i tsheadquarters and in all its field offices.These libraries make available technicalinformation required for the development ofthe SSI. The l ibraries are used by theofficers of the institutes and entrepreneursin the area to learn about new developmentsin var ious segments of industr ia l andbusiness envi ronment . The l ibrar ies

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maintain technical books, journals, reports,project profiles, statistical surveys, otherrelated publications, etc.

3.2.5.2 During the year 2006-07, funds tothe tune of Rs. 19 lakh have been providedto 37 Institutes to purchase technical books,journals, magazines including installation ofcomputer to keep update record of thebooks.

3.2.6 SCIENCE & TECHNOLOGY,RESEARCH ANDDEVELOPMENT

3.2.6.1 ELECTRONICS SERVICE &TRAINING CENTRE (ESTC),RAMNAGAR, UTTARANCHAL

Electronics Service & Training Centre(ESTC) has been set up at Ramnagar(Uttarakhand) with UNDP assistance as aGovernment of India Society under theSocieties Registration Act, 1860 in April1986 in the State of Uttarakhand. The mainobjective of setting of this Centre is todevelop human resources to meet theessent ia l requirements for t ransfer oftechnology in assembly and manufacturingof electronic items and parts to promotegrowth of electronics industry in the smallscale sector. The project was ini t ia l lyapproved by the Government of India inSeptember 1985 and the Centre becameoperational in April 1989.

3.2.6.2 INSTITUTE FOR DESIGN OFELECTRICAL MEASURINGINSTRUMENTS (IDEMI)

The Inst i tu te for Design of E lect r ica lMeasuring Instruments (IDEMI) was set upin Mumbai (Maharashtra) in 1969 withUNDP assistance for assisting, mainly, thesmall scale industries in the areas ofdesigning, tool ing and manufactur ingelectrical, electronics and process controlmeasuring instruments. The Institute hasbeen registered as a Society under theSocieties Registration Act, 1860.

3.2.6.3 PROCESS CUM PRODUCTDEVELOPMENT CENTRE(SPORTS GOODS & LEISURETIME EQUIPMENTS), MEERUT.

Process cum Product Development Centre(Sports Goods & Leisure time equipments),Meerut was set up during 1984 as a Govt.of India Society with UNDP assistancemainly to cater to the technical need ofsports goods industry in the country. TheCentre aims at upgradation as well asimprovement in existing technology, qualitycontro l , in house R&D act iv i t ies andproviding Workshop & Testing facilities tothe sports goods & allied industry.

Significant work done during the year: (i)CNC Technology Centre under mechanicalworkshop of PPDC, Meerut has beenstarted during June 2006 for the benefit ofSpor ts Goods industry ( i i ) A test inglaboratory in the premises of CIHT,Jalandhar has been started in the month ofAugust 2006 for the benefit of Sports Goodsindustry at Jalandhar (iii) A wood seasoningplant for common facility centre at Sethar

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for cricket bat cluster of District Anantnag,(Jammu & Kashmir)under small industrycluster development programme costing toRs.2.46 Crores is being installed by thisCentre on turn key basis. The first moduleof seasoning plant has been installed at thesite.

3.2.6.4 CENTRE FOR THEDEVELOPMENT OF GLASSINDUSTRY, FIROZABAD

With a view to modernize the existing glass

industry and upgrade the technology for the

manufacture of different types of glasses,

a Centre for the Development of Glass

Industry (CDGI) was establ ished by

Government of India with the assistance of

UNDP and active support of Government of

Uttar Pradesh. The main objective of the

Centre is to provide technical support to the

smal l scale g lass industry by way of

installation of energy efficient glass melting

furnaces, auxillary furnaces, introduction of

new type of g lasses and thei r

standardization, environmental protection

and to introduce 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 during the year: (i)Technical officers of Glass & Ceramic Tradehave prepared and submitted 16 projectprofiles on various items till date (ii) ProvideTechnology and Qual i ty Upgradat ion

Support ( i i i ) Identi f ied a technology,namely Vertical Shaft Brick Kiln (VSBK)Technology, under Technology and QualityUpgradation Programme of Govt. of Indiawhich has been approved by CCEA and willbe provided to five clusters of small scalebrick manufacturers at different placesinitially in Punjab, U.P. and M.P. Directors,SISI of the respective States have beendi rected to s tar t the ground work forimplementation of the said programme.

3.2.6.5 PROCESS AND PRODUCTDEVELOPMENT CENTRE, AGRA

Process and Product Development Centre,Agra was set up in 1985 with the assistanceof Government of India, Government of UPand UNDP/UNIDO.

Significant work done during the year: (i)PPDC, Agra has undertaken thedevelopment work of divided blast cupolafor the sewing machine cluster, Ludhiana(ii) PPDC, Agra has conducted diagnosticstudy for the agriculture implements cluster,Karnal (iii) PPDC, Agra has received therecognition of NCVT for different ongoinglong term training courses (iv) Under theCluster Development Programme, theCentre has undertaken the brass/bronzecluster of Pareb (Bihar) and is in processto set up a common facility centre at Parebto assist the SSI units. The Centre is alsoworking on the development of gun clusterat Munger. PPDC has already prepared thestudy reports of these clusters.

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3.2.6.6 CENTRAL INSTITUTE OF TOOLDESIGN, HYDERABAD

Central Institute of Tool Design, Hyderabadwas established in the year 1968 by Govt.of India with the assistance of UNDP/ILO.Original investment in the Institute wasRs.2.37 crore. The aim of the Institute wasto fulfil tooling and training needs of smallscale industries in the field of Tool Designand manufacturing.

Significant work done during the year: (i) TheInstitute has developed import substitute toolsfor Research Centres, IMARAT (a DRDOestablishment) (ii) Under the bilateral training,the Institute had trained 25 internationalparticipants from Iraq, Nigeria, Cambodia,Philippines, Tanzania, Zambia, Thailand,Syria, Uzbekistan, Bangladesh & Sri Lanka(iii) The Institute has arranged 96 StateGovernment scholarships amounting to Rs.19.20 lakh during 2005-06 to social lybackward classes like SC/ST/OBC and alsophysically disabled candidates (iv) TheOrdinance Factories’ Institute of Learning,Ordnance factory Board, Yeddumaialaramenlisted the training services of the Institutefor training Junior Works Manager (directrecruitment) in CAD/CAM area (v) Thefacilities at the tool room has been upgradedto keep pace with the latest technologicaldevelopments (vi)The training modules aredesigned as per the need of the industry withmore emphasis on hands on training.

3.2.6.7 FRAGRANCE & FLAVOURDEVELOPMENT CENTRE,KANNAUJ (U.P.)

Fragrance and Flavour Development Centre

has been set up at Kannauj in 1991 by Govt.

of India in collaboration with UNDP/UNIDO

and Govt . o f U.P. for technologica l

upgradat ion of essent ia l o i ls , aroma

chemicals, fragrance & flavour industry in

the country, especially in the small scale

sector. The Centre is being managed by a

registered Society under the Societies

Registration Act, 1861.

Significant work done during the year: (i)

Total 11 fragrance & flavour were created

for aggarbat t i , ha i r o i l , spray, aroma

vaporizer and confectionary products (ii)

FFDC has taken extension work for

cultivation of aromatic crops such as French

basi l , mints , lemongrass, palmrosa,

citronella, patchouli, rose, buch, jatropha

and safed musli.

3.2.7 TRAINING AND MANPOWERDEVELOPMENT

3.2.7.1 CENTRAL FOOTWEARTRAINING INSTITUTE, CHENNAI

The Central Footwear Training Institute,

Chennai is a Govt . o f Ind ia Society

funct ion ing under Smal l Industr ies

Development Organisation, Ministry of

Small Scale Industries. The basic objective

of the Inst i tu te is to develop human

resources for footwear and allied industries

through various training programmes on

footwear technology and allied subjects.

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The Institute is presently conducting varioustypes of long term, short term and part timetraining courses on various subjects offootwear technology. Besides this, theinstitute provides technical support servicesto the user industry by making its facilitiesavai lab le to them. The Inst i tu te a lsoprovides services for development of newproducts and patterns as per given sampleor concept.

Significant work done during the year (i)Under HRD mission, CFTI have beenallotted 14,400 candidates to be trainedduring this year 2006-07 out of which 85%of candidates are women. So far 7200candidates inc luding 6120 womencandidates have been trained (ii) CFTI,Chennai has installed CAD/CAM facility,CNC milling machine for making sole mould,PU Pouring machine for making unit sole,footbed & complete shoe and Die lesscut t ing machine for cut t ing of uppercomponents without using the die in theInstitute for providing training as well ascommon facility services to small scaleindustries (iii) CFTI, Chennai secured thirdplace at international level in a designingcompeti t ion organized by LINEAPPLE,ITALY, which is a remarkable achievementof the year 2006-07.

3.2.7.2 CENTRAL FOOTWEARTRAINING INSTITUTE, AGRA

The Central Footwear Training Institute,Agra is a Govt. of India Society functioningunder Smal l Industr ies Development

Organisat ion, Minist ry of Smal l ScaleIndustr ies. The basic object ive of theInstitute is to develop human resources forfootwear and al l ied industr ies throughvarious training programmes on footweartechnology and a l l ied subjects. TheInstitute is presently conducting varioustypes of long term, short term and part timetraining courses on various subjects offootwear technology. Besides this, theInstitute provides technical support servicesto the user industry by making its facilitiesavai lable to them. The Inst i tute alsoprovides services for development of newproducts and patterns as per given sampleor concept.

Significant work done during the year (i) Afootwear project for the development ofar t isans in c luster area has beenundertaken from Gujrat Industries MarketingCorporation Limited, Gandhinagar, Gujrat inwhich 19 artisans have been trained (ii)CFTI, Agra has installed CAD/CAM facility,CNC milling machine for making sole mould,PU Pouring machine for making unit sole,footbed & complete shoe and Dielesscut t ing machine for cut t ing of uppercomponents without using the die in theInstitute for providing training as well ascommon facility services to small scaleindustries.

3.2.7.3 Under the Umbrel la of Smal lIndustr ies Development Organizat ion(SIDO) Ministry of SSI & ARI, there are 30Small Industries Service Institutes (SISIs)and 28 Branch SISIs spread all over the

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country render ing techno-manager ia lassistance to SSI for their growth anddevelopment. Besides providing otherservices for the development of small scaleindustries, these Institutes organize numberof training programmes to train potentialentrepreneurs in improving their techno/managerial knowledge and skill with a viewto facilitating them to start their small scaleindustries including service enterprises invarious fields.

The training programmes conductedare:-1. Industrial Motivation Campaigns

(IMCs)

2. Entrepreneurship DevelopmentProgrammes (EDPs)

3. Ski l l Development Programme(SDPs)

4. Management DevelopmentProgrammes (MDPs)

3.2.7.4 INDUSTRIAL MOTIVATIONCAMPAIGNS (IMC)

SIDO conducts Industrial Motivation

Campaigns(IMCs) (duration of 1 day or 2

days) to identify and motivate traditional /

non- t radi t ional entrepreneurs having

potent ia l for set t ing up smal l scale

industries so as to lead them towards self-

employment. During 2006-07, 360 IMCs

have been conducted and upto December,

2006 as many as 48,000 prospect ive

entrepreneurs including 4500 SC, 1700 ST

and 6200 women have been motivated to

start their units. Around 320 IMCs are

expected to be conducted during remainingmonths of the financial year for motivatingabout 33,000 entrepreneurs.

3.2.7.5 ENTREPRENEURSHIPDEVELOPMENT PROGRAMMES(EDPs)

Entrepreneurship Development

Programmes are being organized as a

regular training activity. The duration of

these training programmes varies from 4 to

6 weeks and min imum intake of 20

part ic ipants in each course. General

Entrepreneurship Development

Programmes were organized by the field

institutions of SIDO. The course contents

of such Entrepreneurship Development

Programmes were so designed so as to

provide useful information on product/

process design, manufacturing practices

involved, test ing and qual i ty contro l ,

se lect ion and usage of appropr ia te

machinery and equipments, project profile

preparation, marketing avenues/techniques,

product /serv ice pr ic ing, expor t

oppor tuni t ies, in f rast ructure fac i l i t ies

available, financial and financial institutions,

cash flow, etc. Field visits to small scale

units and hand-on-training on machines/

processes were also arranged.

The revised training schedules also assistentrepreneurs in prepar ing deta i ledfeasibility report their appropriate appraisal,

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evaluation, modification, if necessary, alsobeing advised for carrying out correctionsin feasibility report. Programmes so farorganized in ter-a l ia inc luded HerbalCosmet ics, High Fashion Garments,Hosiery, Food & Fruit Processing Industries,Informat ion Technology, HardwareMaintenance, Soap and Detergents,Leather Products/Novelties, Servicing ofHousehold Elect r ica l Appl iances andElectronic Gadgets, Gem Cut t ing &Pol ishing, Engineering Plast ics , Touroperators, Mobile repairing, Beautician etc.

During the year 2006-07, 564 EDPs havebeen conducted and 12000 entrepreneursincluding 2800 SC, 350 ST and 3200 womenhave been trained up to December 2006.Around 220 EDPs are expected to beconducted during the remaining months forprov id ing t ra in ing to around 6000entrepreneurs.

3.2.7.6 SEPTI, TIRUVALLA

The Small Entrepreneurs Promotion andTraining Institute Tiruvalla was setup during1994 wi th the object ive to generateemployment opportunities in rural as wellas urban areas through setting up of microenterpr ise, and proper t ra in ing forsharpening the technica l sk i l ls andencouraging the manager ia l ta lent inentrepreneurs. SEPTI T i ruval la wasconceived to be a full time training instituteto train 1000 entrepreneurs every year. Atpresent all the training programmes are of2 months EDPs and courses are scheduled

on a quarterly pattern. The result of goodtraining an average of 25 % of the traineesof this institute succeed in setting up theirown industry, some of the trainees aregetting jobs in foreign countries and mostof them are getting jobs in other parts ofthe country. During 2003-04 SEPTI Tiruvallahas earned an amount of Rs.16.54 lakhthrough different EDPs.

3.2.7.7 SEPTI, ETTAMANUR

The Production Centre Ettamanur wasconverted in to Smal l EntrepreneurPromotion and Training Institute in the year2000 for imparting training to artisans/entrepreneurs of Kera la in var iousdisciplines as per the need of the area. TheInstitute constantly identified and reviewsthe new emerging trades having quickemployment potential, develops appropriatecurricula focusing on end job profiles. Thecourses compr ise of ar t isan t rade,management , IT sof tware, computerhardware and other emerging technologiesincluding bio-technology etc.

3.2.8 SKILL DEVELOPMENTPROGRAMME

Comprehensive t ra in ingprogrammes are organized to upgradeexisting skills and to create new skills inworkers and technic ians of SSIs byorganis ing var ious technica l t ra in ingcourses for them. The basic objective hasbeen to provide training to skilled workersengaged in small scale units and to equip

26


them with better and improved technologicalsk i l ls o f product ion. Technic ians andworkers sponsored by the MSMEs areimparted such training to develop their skillsin different trades at 42 Workshops attachedto SISIs all over India. Small IndustriesService Institute (SISIs) in their Workshopsorganize regular courses in var ioustechnical t rades and manufactur ingprocesses. Such technical courses areconducted twice/thrice a year by the SISIs.Courses conducted by SISIs are in MachineShop Pract ice, Heat Treatments,Electroplating, Sheet metal, Welding Tool& Die Making, Carpentary, Lens Grinding,Ceramics, Industr ial & Art Wares, etc.Besides SISIs, Regional Testing Centres,Tool Room and Training Centres, Process-cum-Product Development Centres, CentralFootwear Tra in ing Inst i tu tes andEntrepreneurship Training Institutes arealso imparting training in different trades toupgrade the ski l ls of the workers andartisans. Emphasis have been given toorganize specific tailor made programmesfor the sk i l l development of soc ia l lydisadvantaged groups (OBC, SC, ST,Minorities and women) in regions of thestates including the less developed areas.

3.2.8.1 During the year 2006-07, 180 SDPshave been conducted and 3100entrepreneurs including 450 SC, 150 STand 200 women have been trained up toDecember 2006. Around 150 SDPs areexpected to be conducted dur ing theremaining months for providing training toaround 3000 entrepreneurs.

3.2.9 OUT-REACH PROGRAMMEFOR SKILL DEVELOPMENT INBACKWARD AREAS

In order to cater to specific requirements ofdisadvantaged groups and for backwardareas, which face problem in travelling tourban centres for at tending thesedevelopment programmes, “Out-reachProgrammes for Ski l l Development inBackward Areas” are under consideration.I t is proposed to star t some of theseprogrammes in this year as “Pilot Schemes”.Amongst autonomous organizations, anexercise has been undertaken by the CFTIs,PPDCs, CDGI, FFDC to advise short timeprogrammes and their financing is underconsideration. Such bodies have also beenadvised to contact s tate and centra lagencies that are interested in assistingsuch programme and doveta i l someprogrammes in collaboration with them.

3.2.10 MANAGEMENTDEVELOPMENTPROGRAMMES (MDPs)

3.2.10.1 Organiz ing ManagementDevelopment Tra in ing programmesconstitutes an integral part of the activitiesof SIDO besides counsel l ing andconsultancy services. Management Trainingcourse on var ious areas of industr ia lmanagement initiatives are also devised forowner-cum-manager and supervisory levelpersonnel of small scale industries. Thesetraining programmes are continuously re-structured in their contents keeping in view

27


the demands of the area and the localrequirements of the industries. The natureof target groups and its profile determinesthe modification in course content to bemade in order to make them suitable forcontemporary manager ia l t rends andpractices which may be used by small scaleindustry executives for attaining desiredstrength of managerial action. The subjectscovered under these training programmespertain to various aspects of Managementcovering Industrial Management, HumanResource Management , Market ingManagement, Export Management &Documentation, Materials Management,F inancia l Management , In format ionTechnology & Exports, ISO 9000, WTO, IPRetc.

3.2.10.2 During the year 2006-07, 210MDPs have been conducted and 5300entrepreneurs including 550 SC, 150 STand 450 women have been trained up toDecember 2006. Around 180 MDPs areexpected to be conducted dur ing theremaining months for providing training toaround 3700 entrepreneurs.

3.3.0 WTO CELL

3.3.1 A separate WTO Cell in the Officeof Development Commissioner (Small ScaleIndustries) was set up during 1999 to co-ordinate the latest developments in regardto World Trade Organization. The objectivesof the Cell inter-alia include (a) to keepabreast with the recent developments in theWTO, (b) to disseminate information to SSI

Associations and other stakeholders aboutthe various aspects of WTO & its likelyimplications for the small enterprises, (c) tocoord inate wi th other Min is t r ies andDepartments of the Govt. of India, (d) toassis t po l icy format ion for MSMEs inconforming with the provisions of WTOAgreements and (e) to organize WTOSensit izat ion Workshops/Seminars forcreating awareness, capacity building andsectoral study.

3.3.2 With a view to create awarenessamong the MSMEs units, SSI Associations& other stakeholders on WTO Agreementsand its implications for them, this Ministryis organizing workshops/seminars all overthe country. As part of this process, threeawareness programmes on various aspectsof WTO are to be organised during currentyear.

3.3.3 6 one-day workshops on IntellectualProperty Rights (IPRs) have been organisedduring the current year so far. It is furtherproposed to organise 8 more suchprogrammes for creating awareness on thisissue for the MSME sector.

3.3.4 The Cell is maintaining close liaisonwi th other concerned Min is t r ies andDepartments like Ministry of Commerce &Industry, Directorate General of ForeignTrade, Directorate General of Anti-dumping& Allied Duties, DG (Safeguard), so as tokeep updated wi th regard to WTOAgreements and to protect the interests ofsmall scale industries.

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3.3.5 In view of the sixth WTO MinisterialConference, a meet ing on WTOnegotiations on Non-Agricultural MarketAccess (NAMA) was organised under thechairmanship of Additional Secretary &Development Commissioner (SSI) and inconsultation with the Ministry of Commerce& Industry. Various SSI associations & otherstakeholders participated in this meetingand exchanged their views / concernsregarding the SSI sector.

3.3.6 As par t o f the in ter-min is ter ia lconsultation process, inputs were providedto the Ministry of Commerce and Industryin regard to the ongoing negotiations onvarious trade agreements for exchange oftariff concessions. These agreements, interalia, included SAARC Preferential TradingArrangement (SAPTA), India - SingaporeComprehensive Economic CooperationAgreement (CECA), Free Trade Agreement(FTA) with GULF Co-operation Council(GCC), Preferential Trade Agreement (PTA)between India & Mauritius under Frameworkof Comprehensive Economic PartnershipAgreement, India-ASEAN Tradenegot iat ions Group – Kula lampur;BIMSTEC-FTA.

3.4.0 INTELLECTUAL PROPERTYRIGHTS (IPR)

3.4.1 With the onset of the trade relatedaspects of Intel lectual Property Rights(TRIPS) agreement under WTO and theconsequent changes made by var iouscountries in their IPR laws including by

India, the issues of IPR have gained specialimportance in the Small Scale Industrysector. It was noticed that changes of farreaching consequences were being effectedin the business landscape without theMSME sector being aware of it. It was alsofelt that IPRs require understanding andattention by the industry. To meet thisobjective, the IPR Cell was created in theoffice of DC (SSI) in the year 2001-02 forgenerating awareness amongst the MSMEson IPR related issues. The small scaleentrepreneurs are being sensitised to theneed for protection and methodology to beadopted for IPR management through notonly d i f fus ion and upgradat ion oftechnology, but also employing existing IPRresources for the purpose. Till date, morethan 75 such programmes have beenorganised through SISIs a l l over thecountry. During the current financial year2006-07, i t is proposed to conduct 24sensitization programmes, out of which 10programmes have been conducted so farand rest will be completed in the comingmonths. F ive of these sensi t izat ionprogrammes are being organised inassociation with European Union (EA) –India, Trade and Investment DevelopmentProgramme (TIDP). With the initiatives ofthe office of DC(SSI), Kulu Shawls(Kulu)and Wet Grinder(Coimbatore) have beenregistered under Geographical Indications(GI) Act and efforts are being made to assistother group of industries/clusters to registerunder G.I. Act. This office alongwith WorldIntellectual Property Organisation (WIPO)has made a short film on IPR especially for

29


the guidance of the MSMEs. By protectingtheir intellectual property, small scale unitscan increase their competit iveness. IPprotection will help in -

l Prevent ing compet i tors f rom

copying or c losely imi tat ing a

company’s product or services.

l Avoiding wasteful investment in

research and development and

marketing.

l Creat ing a corporate ident i ty

through a trademark and branding

strategy.

l Increasing the market value of the

company and enhancing access to

new market.

l Intellectual Property Rights consist

of Patent, Trade Marks, Industrial

Designs, Copy Rights, Trade

Secrets and Geographical

Indications etc.

3.5.0 BIOTECHNOLOGY

3.5.1 A Biotechnology Cell was created inthe office of the Development Commissioner(Small Scale Industries) on 16.08.2002 todeal with the matter for the developmentand promotion of biotechnology industry inthe small scale sector. A Task Force hasalso been created in the Off ice of theDevelopment Commissioner (SSI) tosuggest new initiatives for the development

and growth of small enterprises in thissector wherein Department ofBiotechnology, Govt. of India and BiotechConsort ium India L imi ted (BCIL) aremembers. The object ive of theBiotechnology Cell is also to identify thepotent ia l areas of b iotechnology forexplo i tat ion and concerted ef for ts forpromoting the MSME industrial activities inthis area. The areas of tissue culture, bio-fer t i l izers, b io-pest ic ides, mushroomcultivation, solid waste management are infocus.

3.5.2 To disseminate information on the

use of b iotechnology, a number of

sensitization programmes on biotechnology

in various parts of the country have been

organized during the recent years and more

such programmes will be organized in near

future. These sensitization programmes are

being organized in collaboration with the

Department of Biotechnology and Biotech

Consortium India Ltd.(BCIL), New Delhi and

various State Government agencies.

3.5.3 During year 2006-07, 2 three days

training programmes were conducted at

New Delhi and Bangalore on IPR related

issues specially for Biotechnology based

units alongwith World Intellectual Property

Organisat ion (WIPO), Dept t . o f

Biotechnology through Biotech Consortium

India Ltd. (BCIL) New Delhi. Also a set of

guidelines for establishing Biotechnology

based units is under preparation for the

guidance of the prospective entrepreneurs.

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3.5.4 To assist MSME entrepreneurs inge t t i ng bas ic unders tand ing o f thetechnologies, products and processes, aset of project profiles have been preparedin coordination with the Department ofBiotechnology and Biotech ConsortiumInd ia L im i ted cover ing the fo l l ow ingareas:

l Plant Tissue Culture

l Bio fertilizers

l Bio pesticides

l Fresh Water Prawn Cul ture /Hatchery

l Vermicomposting

l Micro propagation Technology

l Medicinal Plant Extractions

l PCR Diagnostics

l Organic farming

3.6.0 NATIONAL AWARD TOSMALL SCALEENTREPRENEURS

3.6.1 The Scheme of honour ingentrepreneurs with “National Awards toSmall Scale Entrepreneurs” for displayingent repreneur ia l sk i l l s and t ra i ts wasinstituted by Government of India in theyear 1983. The objective of the scheme isto boost up the morale and motivate thesmall scale entrepreneurs to manage their

Shri Pranab Mukherjee, the then Hon’ble Defence Minister and Shri Mahabir Prasad, Hon’ble UnionMinister of SSI & ARI giving away prize to a successful woman entrepreneur

31


units in such a manner that they achieveh igher leve ls o f p roduct iv i ty th roughmodernization, market expansion, exportdeve lopment , innovat ions e tc . ThreeNational Awards (First, Second and Third)and Special Recognition Awards for anent repreneur exh ib i t ing outs tand ingperformance from each of the participatingStates/UT are given under this Scheme.During the year 1993, the scheme wasextended to add Special Awards at par withthe First National Award to honour anoutstanding woman entrepreneur and an

outstanding entrepreneur f rom SC/STcommuni ty . Besides a Trophy and aCertificate, the First, Second & Third Awardcar ry a Cash Pr ize o f Rs.25,000/ - ,Rs.20,000/- and 15,000/- respectively. TheSpecial Recognition Award carries a cashprize of Rs.10,000/- each and a Trophy anda Certificate.

3.6.2 20 entrepreneurs have beenhonoured with these Awards for the year2005 by the Hon’ble Defence Minister inthe convention held on 7th October 2006.

Shri Pranab Mukherjee, the then Hon’ble Defence Minister alongwith Shri Mahabir Prasad, Hon’bleUnion Minister of SSI & ARI is giving away the National Award. From left to right are, National Awardee,Shri A.C. Jose, Chariman Coir Board, Union Minister (SSI & ARI), then Defence Minister, Shri AnupamDasgupta, the then Secretary (SSI&ARI) and Shri Jawhar Sircar, Addtional Secretary and DevelopmentCommissioner (SSI)

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3.7.0 NATIONAL AWARD FORRESEARCH ANDDEVELOPMENT

3.7.1 Government of India have instituteda Scheme of National Awards under the title“National Awards for Research &Development Efforts in Small ScaleIndustries” f rom the year 1999. Theobjective of the Scheme is to encourage in-house R&D efforts including innovation inSmall Scale Industries. Under this Scheme,First , Second and Third Awards areconferred to deserving registered small scaleindustries. The First, Second and ThirdAwards carry a Cash Prize of Rs. 25,000/-,Rs. 20,000/- and Rs. 15,000/- respectivelybesides a Certificate and a Trophy.

3.7.2 3 entrepreneurs have beenhonoured with these Awards for the year2005 by Hon’ble Defence Minister in theconvention held on 7th October 2005.

3.8.0 NATIONAL AWARD FORQUALITY PRODUCTS

3.8.1 Government of India instituted ascheme of National Awards under the title“National Award for Quality Products inSmall Scale Sector” in the year 1986. Themain object ives of the scheme are topromote the concept of Quality and QualityAssurance amongst the smal l scaleentrepreneurs. Smal l Scale Industr iesengaged in the production of such itemsselected for the year are honoured with

33


Awards. One National Award is given foreach category of the items selected. Theaward carries a Trophy, a Certificate and aCash Prize of Rs.25,000/-. 18 entrepreneurshave been honoured with these Awards forthe year 2005 for 18 products groups by theHon’ble Defence Minister in the conventionheld on 7th October 2006.

3.9.0 SUB-CONTRACTINGEXCHANGE FOR ANCILLARYDEVELOPMENT

3.9.1 Ancillarisation and sub contractingin India, started simultaneously with theGovernment setting up enterprises almostin all the core sectors viz. manufacturingequipment for defence/ra i lways/te lecommunicat ion, heavy e lect r ica l ,e lect ronics, chemicals , fer t i l izers,petroleum/petro-chemicals and variousother engineer ing and processingindustries. The large industries notably HMTand other PSUs started sub-contracting lowtech items to small scale/ancillary industriesthat developed a sound base.

3.9.2 In order to help the vendees/vendors,Sub Contracting Exchanges were set up bySmall Industries Development Organisation(SIDO) in selected Small Industries ServiceInstitute for storing data with regard to thecapacities and capabilities of small scale unitsin terms of products manufactured/servicesrendered. The Sub Contracting Exchangealso maintains the requirements of buyers,which could be products, components, sub-assemblies, and services

3.9.3 The main objective of storing sucha data is to arrange match-making throughan appropriate software between a buyerand seller that may result in increasedbusiness opportunities. 35 Sub-contractingExchanges have been set up in SmallIndustries Service Institute/Branch SmallIndustries Service Institutes. Under SmallIndustr ies Development Organisat ion(SIDO) which are now being strengthenedunder the existing scheme by providingnecessary capital equipment, furniture etc.

3.9.4 Under this scheme, the financialassistance up to Rs. 4.7 lakh is provided toIndustries Association/NGOs for purchasingcapital equipment such as Computer andaccessories, suitable software, furniture,photocopier machine, te lephone, Faxmachine, spiral binding & cutting machine,etc.

3.9.5 A matching grant is also providedto these Exchanges on tapering basis forbuilding rent, stationery, phone/fax charges,electricity charges and conveyance at therate of 50%, 30% and 10% of the runningexpenses not exceeding Rs.1.25, 0.75 and0.25 lakh per year respectively during theinitial three years subject to a ceiling of Rs.1.57 lakh per SCX.

3.9.6 So far 61 Sub-Contract ingExchanges have been sanctioned whichhave been set up by Industr iesAssociations/NGOs in various parts of thecountry up to 30.11.06. Four more Sub-contracting Exchanges are likely to be set

34


up during the remaining months of thefinancial year 2006-07.

3.9.7 Under the existing scheme, VendorDevelopment Programme both at Nationaland State Level are also conducted by SmallIndustries Service Institute. These VendorDevelopment Programmes provide acommon platform for large scale industriesi.e. purchasing organizations and smallscale industries as sellers to interact witheach other and establish long term linkages.

3.9.8 2 Vendor DevelopmentProgrammes have been conducted by theSmall Industries Service Institute in thedifferent part of the country till 30.11.2006and about 43 Vendor DevelopmentProgrammes are likely to be conducted inthe remaining months of the financial year2006-07.

3.10.0 SCHEMES OF TOOL ROOMS

3.10.1 CENTRAL TOOL ROOM,LUDHIANA

Central Tool Room, Ludhiana wasestablished by Govt. of India in technicalcollaboration with Govt. of Federal Republicof Germany and with active support ofGovernment of Punjab for providing theservices in the area of tooling (Tool Designand Tool Manufacture), Precision Machining,Heat Treatment, Technical Training andTechnical Consultancy to metal workingindustry in general and small scale industriesin particular so as to improve the quality andproductivity of such units.

Significant work done during the year: (i)Establ ished one of the best RapidPrototyping Centre in the country ( i i )Developed several tool ings as Import

Trainees at Central Tool Room, Ludhiana

35


substitution for SSIs (iii) III Moulds weredeveloped for Door Closer and lock forexporting products to snowing regions ofEurope for a SSI unit (iv) Special HeatTreatment process was established forsurgical tools, dies, moulds etc.

3.10.2 INDO-GERMAN TOOL ROOM,AHMEDABAD

Indo-German Tool Room, Ahmedabad wasestablished by Government of India intechnical collaboration with the Governmentof Federal Republic of Germany. The ToolRoom has been set up to fulfil the toolingand training needs of the smal l scaleindustries in the field of Tool Design andManufacture and t ra in ing of technicalpersonnel in these fields.

Significant work done during the year: (i)Developed several tool ings as importsubstitution for SSIs (ii) The facilities at thetool room has been upgraded to keep pacewith the latest technological developments(iii) The training modules are designed asper the need of the industry with moreemphasis on hands on training (iv) The ToolRoom developed import substitute mouldsfor bul let case magazine for defencerequirement, a thin walled article moulds foran SSI unit. Few progressive tools weremade for pump impel ler improvingproductivity and pump efficiency.

3.10.3 INDO GERMAN TOOL ROOM,INDORE

Indo-German Tool Room, Indore wasestablished by Government of India in

technical collaboration with the Governmentof Federal Republic of Germany. The StateGovernment of Madhya Pradesh providedland and building to the project. The ToolRoom has been set up to fulfil the toolingand training needs of the smal l scaleindustries in the field of Tool Design andManufacture and t ra in ing of technicalpersonnel in these fields.

Significant work done during the year: (i)The Tool Room has completed the precisionmotion jacks which has been exported to M/s. CERN, Switzerland on behalf of Centrefor Advanced Technology, Indore (ii) TheTool room developed Injection Mould forSwitchgear Industry (iii) Developed severaltoolings as import substitution for SSIs (iv)The facilities at the tool room has beenupgraded to keep pace with the latesttechnological developments (v) The trainingmodules are designed as per the need ofthe industry with more emphasis on handson training.

3.10.4 INDO-GERMAN TOOL ROOM,AURANGABAD

Indo-German Tool Room,

Pratical training of trainees at IGTR, Indore

36


Aurangabad was establ ished byGovernment of India in technicalcol laborat ion wi th the Government ofFederal Republic of Germany. The StateGovernment of Maharashtra provided landand building to the project. The Tool Roomhas been set up to fulfil the tooling andtraining needs of the small scale industriesin the field of Tool Design and Manufactureand training of technical personnel in thesefields.

Significant work done during the year: (i)The tool room has achieved ISO14001:2004 cert i f icate (EnvironmentalManagement System) (ii) The tool room hassuccessfully conducted the training courseof one-year duration in the area of Tool &Die Making for 22 students from SouthAfrica (iii) Developed several toolings asimport substitution for SSIs (iv) The toolroom is taking steps to develop e-learning/e- teaching pract ices in too l and d ietechnology (v) The facilities at the tool roomhas been upgraded to keep pace with the

latest technological developments (vi) Thetraining modules are designed as per theneed of the industry with more emphasis onhands on t ra in ing (v i i ) Near ly 100%placement for the long term trainees hasbeen achieved (viii) MoUs have been signedfor continuous CAD/CAM and Tool Designeducat ion wi th Jawahar la l NehruEngineering College Aurangabad ad MGMCollege of Engineering, Nanded (ix) To haveawareness about the training coursesoffered by the tool room, various schoolshave been approached to arrange the visitof their students to tool room and largenumber of students from different schoolshave visited the facilities of IGTR (x) Thetool room has first time developed the 2-wheeler LPDC die for M/s. EnduranceTransmission System.

3.10.5 CENTRAL TOOL ROOM &TRAINING CENTRE, KOLKATA

Central Tool Room & Training Centre,Kolkata has been established during 1977-

Pratical training of trainees at IGTR, Aurangabad

37


78 under technical co-operation programmebetween Governments of India andDenmark to upgrade technology and toconsolidate the project.

Significant work done during the year: (i)Developed several tool ings as importsubstitution for SSIs (ii) The Centre hasdeveloped, manufactured and suppliedBlanking Die for Two Rupee Coin to Govt.of India Mints- Kolkata and Mumbai withnecessary mod i f i ca t ions in the Co inDesign as desired by the Mints. Sincethese Blanking Die used to be importedearlier by the Mints these supplies haveenabled the Mints to save considerableamount of Foreign Exchange ( i i i ) Thetraining modules are designed as per theneed of the industry with more emphasison hands on training (iv) The facilities ofthe tool room has been upgraded to keeppace w i th the la tes t techno log ica ldevelopments.

3.10.6 CENTRAL TOOL ROOM &TRAINING CENTRE,BHUBANESHWAR

Central Tool Room & Training Centre,Bhubaneshwar has been set up in the year1991 under Technical Co-operat ionProgramme between Government of Indiaand Government of Denmark, for whichagreement was signed in June, 1989.

Significant work done during the year: (i)CTTC, Bhubaneswar has got theOccupat ional Health and SafetyAdministrative System (OHSAS) 18001certificate from NQA Certification Body (ii)A total of 520 trainees were placed in 86different companies including 65 SMEs (iii)Tailor made Training for Trainers Programmeconducted on CNC Programming andComputer Hardware MaintenanceManagement conducted for Director ofTechnical Education & Training, Orissa. 19

Infrastructure at TRTC, Kolkota

38


lecturers, instructors f rom di f ferentGovernment Polytechnics participated in theprogramme (iv) Summer Vacation Trainingis being conducted for 1008 Engineeringstudents from 40 different EngineeringColleges of 5 States out of which 233 aregirls. This is the highest number of studentsthe Tool Room has ever handled at a time(v) Manufactured 3 samples components tobe used for tri-cycle meant for physicallyhandicapped for Art i f ic ia l L imbsManufacturing Corporation, Bhubaneswar(vi) Executed machining of Guide Block formanufacturing of complex holes on turbineblades, which are being exported to USA,for a Kolkata based SSI, M/s. Dutta &Dasgupta.

3.10.7 INDO DANISH TOOL ROOM,JAMSHEDPUR

Indo-Danish Tool Room, (formerly CentralTool Room & Training Centre), Jamshedpur

has been set up in the year 1991 underTechnical Co-operat ion Programmebetween Government of India andGovernment of Denmark.

Significant work done during the year: (i)Developed several tool ings as importsubstitution for SSIs (ii) The facilities at thetool room has been upgraded to keep pacewith the latest technological developments (iii)The training modules are designed as per theneed of the industry with more emphasis onhands on training (iv) Nearly 100% placementhas been achieved for various long termtrainees (v) Govt. of Jharkhand hassponsored training programmes for thestudents of SC/ST/Minority.

3.10.8 HAND TOOL DESIGNDEVELOPMENT AND TRAININGCENTRE, NAGAUR.

The Hand Tool Design Development

39


and Training Centre, Naguar (SIDO FIELDUNIT) has been set up a t Nagaur inRajasthan in the year 1988. The mainobjective of this project is to develop handtool industry in small and tiny sectionslocated in around Nagaur by providingconsu l tancy and adv isory ex tens ionservices in the areas of tool room, heattreatment, metal f inishing, forging andtesting, common facility services to thesesmall and tiny industries. They are alsoassisting small scale units to adopt moderntechnology in the field of product design,production process and quality control forcos t reduct ion and improvement inprofitability. Testing facilities and trainingfacilities are also provided for upgradationof qua l i ty o f p roduct ion and t ra inedmanpower.

3.10.9 CENTRAL INSTITUTE OF HANDTOOL, JALANDHAR

With a view to upgrade the hand tooltechnology in the country and to providethe necessary techno logy suppor tservices, the Govt. of India has set up theCent ra l Ins t i tu te o f Hand Too ls as aNational Institute at Jalandhar in the Stateof Punjab as autonomous organisationwith the assistance of U.N. I.D.O. in theyear 1983.

Significant work done during the year: (i)The facilities at the tool room has beenupgraded to keep pace with the latesttechnological developments (ii) The trainingmodules are designed as per the need of

the industry with more emphasis on hands-on training ( i i i ) Process developed formanufacture of Hex shaf t industrymachinery at var ious stages ( iv) Theinstitute has received ISO 9001:2000 andISO 14000:2004 certification.

3.10.10 TOOL ROOM & TRAININGCENTRE, GUWAHATI

TRTC Guwahat i is being set up byGovernment of India at Guwahati with anobject ive to create fac i l i t ies formanufactur ing of tools & dies and fortraining in tool & die making in the NorthEast Region. The land & building for theproject is being provided by Government ofAssam. The first phase of construction ofbuilding is nearing completion, however,TRTC Guwahati has started the trainingactivities in the campus of SISI, Guwahati.

3.10.11 MINI TOOL ROOM & TRAININGCENTRE

A “Mini Tool Room” Scheme has beenapproved to help State Governments to setup Small Tool Rooms for creating localizedtra in ing and product ion fac i l i t ies forrendering assistance to the small scale unitsin the f ield of Tool & Die Making. Thescheme provides one time assistance upto90% of the cost of machinery & equipment,limited to Rs. 9 crore, for setting up a newMini Tool Room and 75% cost of machinery& equipment limited to Rs. 7.5 crore forupgradation of existing Mini Tool Room.The balance machinery cost and the cost

40


of land and bui ld ing and recurr ingexpenditure is funded by the concernedState Government.

OBJECTIVES:

(a) Manufacture of jigs, fixtures, cuttingtools, gauges, press tools, plasticmoulds, forg ing d ies, pressurecasting dies and other tooling forsmall scale industries. Advancedtool making process using CAD/CAM techniques are to be adopted.

(b) To provide training facility in toolmanufacturing and tool design togenerate a work force of skil ledworkers, supervisors, engineers/designers etc.

(c) To work as a Nucleus Centre forproviding consultancy, informationservice, documentat ion etc. forsolving the problems related totooling of industries in the region.

(d) To act as a Common Facility Centrefor small scale industries and toassist them in product and prototypedevelopment.

PRESENT STATUS:

The proposals received from Governmentsof Kerala, Madhya Pradesh, Karnataka(Hubl i & Hassan), West Bengal forUpgradation of their existing tool rooms andproposals from Governments of Nagaland,Tripura, Jharkhand (Ranchi & Dumka),Chhattisgarh for setting up of new Mini Tool

Rooms have been approved andprocurement of machinery & equipment isin progress. MTRs at Bhopal , Aroor(Kerala), Howrah, Dimapur (Nagaland) arealready functioning.

3.11.0 MARKETING ASISTANCE ANDEXPORT PROMOTION

3.11.1 PARTICIPATION IN OVERSEASTRADE FAIRS

The SIDO is to participate in 10 fairs for theyear 2006-07. Upto November, 2006,DC(SSI) has participated in four fairs -Hannover Messe – 06, Germany, DIY Show,Japan, Made-in-India Show, China & ATF-06, Cape Town (South Africa) and exhibitsof 51 SSI units were displayed by 40 SSIrepresentatives under SIDO stall. Exhibitsfrom 72 SSI units are expected for displayby their representatives in the remaining sixInternational Trade Fairs under SIDO stallupto March, 2007.

3.11.2 SSI-MDA SCHEME

As per modified guidelines, participating unitin trade fair may get total subsidy upto Rs.1.25 lakh per unit (Rs. 1.5 lakh for micromanufacturing enterprise) once in a yeartowards subsidy on space rent, shippingcost & air fare. This year, 90 individualparticipants will benefit under the scheme.Rs. 5.25 lakh have been reimbursed to 35SSI uni ts for adopt ion of Bar CodeCertificate from GS1 and about 45 SSI unitsare anticipated to avail subsidy for adoption

41


of Bar Code upto March, 2007. Under thescheme, seven market studies will be alsotaken by SISIs.

3.12.0 REGIONAL TESTINGCENTRES

3.12.1 SIDO is operating four RegionalTesting Centres(RTCs) located at NewDelhi , Mumbai , Chennai and Kolkata.Regional Testing Centres provide testingand calibration facilities to industries ingeneral and smal l scale industr ies inparticular for raw materials, semi finishedand finished products, manufactured bythem. These centres are equipped with the

State of art indigenous and importedequipments in the disciplines of chemical,mechanical, metallurgical and electricalengineering to under take performancetest, type test and acceptance test of semif in ished, f in ished products e tc . TheCentres also undertake calibration worksfor measuring instruments and equipmentsconf i rming to internat ional standards.These Cent res are accred i ted byin ternat iona l ly recogn ized Nat iona lAccred i ta t ion Board o f Test ing &Calibration laboratories(NABL) certificationas per ISO(17025).

Mechanical Calibration

Electrical Calibration

Metallurgical Testing & Analysis

42


3.13.0 FIELD TESTING STATIONS

3.13.1 In order to provide testing facilitiesin the area with cluster of industries andsome strategic areas, the Government ofIndia have set up seven Field TestingStat ions at Ja ipur , Bhopal , Kolhapur,Hyderabad, Bangalore, Pondicherry andChenganacher ry . The F ie ld Tes t ingSta t ion , Chenganacher ry has beenrecently shifted to the premises of SmallEntrepreneur Promot ion and Tra in ingIns t i t u te (SEPTI ) , E t tumanur . TheseTest ing Sta t ions ex tend fac i l i t ies fo rtesting of various products viz .chemicals,dye -s tu f f s , l amps , rubber p roduc ts ,cas t ings and fo rg ings , pa in ts andvarnishes, domestic electrical appliances,general engineering etc.

fac i l i t ies. These FTSs in fact act asextension of the RTCs thereby serving theneeds of the industries situated in far-flungareas. The Field Test ing Stat ions areregular ly moderniz ing/upgrading thei rfacilities to cater the need of industries ingeneral and SSI sector in par t icu lar ,situated in their locality.

3.13.3 The budget provision is made formeet ing both the recurr ing and non-recurr ing expenditure of Field Test ingStations (FTSs). The performance of FieldTesting Stations in terms of number of jobsexecuted, tests conducted and the revenueearning is monitored continuously.

3.13.4 The performance of FTSs duringlast four years is as follows (Table 3.2)

Year Revenue Recurring %age of Revenue/ No. of jobs No. of tests earned Expenditure Expenditure completed performed(Rs. lakh) (Rs. lakh) (self-sufficiency

level)

2002-03 238.80 344.30 69.35 12336 134646

2003-04 268.50 343.18 78.24 12409 139569

2004-05 259.74 367.88 70.60 10872 136362

2005-06 247.60 393.50 62.92 11616 134454

2006-07 (up to 227.69 319.82 71.19 9031 115157

31st Dec.’06)

Jan.’07to 75.90 106.61 71.19 3010 38386

March’07

(Anticipated)

3.12.2 The performance of RTCs and theirself-sufficiency level during last four yearsare as follows (Table 3.1).

3.13.2 The presence of FTSs in the fieldhas enabled the cluster of industries in thesmall scale sector to util ize the testing

Performance of RTC’s : Table 3.1

43


3.14.0 SETTING UP OF TESTINGCENTRES BY INDUSTRIESASSOICATION &MODERNISATION/EXPANSIONOF QUALITY MARKINGCENTRES UNDER THE AEGISOF STATE GOVERNMENTS

3.14.1 Under th is scheme,Government of India provides one timecapital grant-in-aid equal to 50% of the costof test ing equipment and machinery(restricted to Rs.50 lakh) to the IndustriesAssociations, to set up and operate testinglaboratories of international standards andalso for modernization/expansion of existingQual i ty Mark ing Centres of StateGovernment and their autonomous bodies.

3.14.2 The scheme covers theTest ing Laborator ies establ ished byIndustries Associations including Chamberof Commerce, Industrial Co-operativesregis tered under the Societ ies

(Registration) act or under any statutory Act.It also covers expansion/modernization ofthe existing centres under the aegis of StateGovernments and State Government fundedautonomous bodies.

3.14.3 The year-wise expenditureincurred so far and the number of testingcentres assisted during the current plan arefurnished below (Table 3.3)

S. Year Expenditure No. ofNo. incurred Centres

(Rs. in lakh) assisted

1. 2002-03 9.50 1

2. 2003-04 Nil -

3. 2004-05 40.95 1

4. 2005-06

5. 2006-07 8.84 1

(up to Nov., 06)

Year Revenue Recurring %age of Revenue/ No. of jobs No. of tests earned Expenditure Expenditure completed performed(Rs. lakh) (Rs. lakh) (self-sufficiency

level)

2002-03 50.38 81.36 61.55 8004 34508

2003-04 61.59 78.32 78.64 11035 43306

2004-05 82.88 88.80 93.33 15150 57269

2005-06 85.25 96.59 88.26 16378 57963

2006-07 (up to

31st Dec.’06 68.79 80.60 85.35 12400 41507

Jan.’07 to

March’07

(Anticipated) 22.93 26.87 85.35 4133 13836

Performance of FTS’s : Table 3.2

Expenditure incurred/No. ofTesting Cenres assisted : Table 3.3

44


3.15.0 TECHNOLOGY UPGRADATION

3.15.1 SMALL INDUSTRY CLUSTERDEVELOPMENT PROGRAMME(SICDP)

3.15.1.1 Broadly, the ClusterDevelopment Programme (CDP)implemented till March, 2006 consisted ofassistance mainly in “soft” areas whichencompasses act iv i t ies l ike genera lawareness and trust building, counselling,training and capacity building, exposurev is i ts , credi t fac i l i ta t ion, marketdevelopments etc. It was felt that the “hard”component, which is directed towardsassisting technology improvements, qualitystandardization and testing mainly in theform of ‘Common Facility Centres’ (CFCs)equipped with a variety of hardware andfaci l i t ies which individual cluster unitscannot af ford but are necessary fortechnology upgradation, ensuring qualitystandards, need to be suitably incorporatedas one of the important component of theCDP implemented by SIDO.

3.15.1.2 Keeping this in view and theneed for providing stimulating environmentfor innovative and competitive micro & smallenterprises, the SICDP guidelines werecomprehensively revised in March, 2006making the cluster programme more broad-based by facilitating substantial economicsof scale in terms of deployment of availableresources in the medium to long term. TheGovernment of India’s assistance under thescheme was enhanced upto Rs.8 crore tosupport soft as well as hard interventionincluding setting up of common facil i ty

centres. The revised guidelines were givenwider publicity and all state governmentshave been repeatedly requested to sendsuitable proposals for consideration underthis scheme. After issuing the revisedGuidelines, three proposals for setting upCFCs have been approved so far during thecurrent year. In addition, diagnostic studiesof 104 new clusters have also been takenup to identify the area of interventionsrequired in these clusters.

3.15.1.3 The st rategy is now tosubsume the essential features of theschemes having collective approach fordevelopment of clusters such as Schemefor Integrated Infrastructural Developmentand Scheme for sett ing up of Test ingCentres/programmes under SICDP.Although the object ive of SICDP is toprovide assistance to MSE for commonpurpose, it is also not less important tostrengthen industrial units located in thecluster individually. There are schemes ofMinis t ry of SSI for credi t , technologyupgradation, quality certification, such as,Credit Guarantee Scheme for investment,Credit Linked Capital Subsidy Scheme fortechnology upgradation, ISO 9000/14001reimbursement scheme for certification, etc.through which assistance is provided to anindividual micro & small enterprise. Underthe new approach, the emphasis is todovetail all such schemes under SICDP forthe overal l development of MSE andoptimum utilisation of resources.

3.15.1.4 Several other Ministries/Departments and agencies have also takenup their versions of “cluster development”. In

45


order to harmonise divergences in the conceptas well as content of cluster developmentprogrammes, an Empowered Group ofMinisters (EGoM) has been constituted veryrecently under the chairmanship of theExternal Affairs Minister. Ministry of SSI hasbeen nominated for servicing the EGoM.

3.15.2 ISO-9000/ISO-14001CERTIFICATIONREIMBURSEMENT SCHEME

3.15.2.1The process of economic liberalisationand market reforms has opened up the Indiansmall scale sector to global competition. Inorder to enhance the competitive strength ofthe small scale sector, the Governmentintroduced an incentive scheme for their qualityimprovement and environment management.

The scheme provides incentive (of upto Rs. 75,000 per unit) to SSI units which acquire ISO9000/ISO 14001 certifications. The scheme, inoperation since March 1994, was enlarged toinclude reimbursement of expenses foracquiring ISO 14001 certification also w.e.f. 28th

October 2002.

3.15.2.2 The procedural guidel ines,application forms, etc., have been placed onthe SIDO website, (www.laghu-udyog.com)and (www.smallindustryindia.com).

3.15.2.3 Since the inception of the scheme ofISO-9000 reimbursement, 13433 SSI unitsamounting to Rs. 70.88 crore have beenbenefited upto Nov.2006. Year wise status ofthe units reimbursed under ISO 9000 IncentiveScheme is as under (Table 3.4)

Status of the units reimbursed under ISO 9000 Incentive Scheme : Table 3.4

Year No. of Units Amount of assistance (Rs. crore)

1993-94 3 Rs. .016

1994-95 10 Rs. .043

1995-96 48 Rs. .25

1996-97 54 Rs. .39

1997-98 85 Rs.0.49

1998-99 174 Rs. 0.96

1999-2000 361 Rs.2.25

2000-2001 649 Rs.4.05

2001-2002 992 Rs.6.00

2002-2003 1182 Rs.6.99

2003-2004 917 Rs.4.77

2004-05 3314 Rs.17.33

2005-06 4101 Rs.19.44

2006-07 1543 Rs. 7.37(up to 21.11.06)

Total: 13433 Rs.70.88

Average assistance/unit = Rs. 52,765

46


3.16.0 ENERGY CONSERVATIONPROGRAMME (UNDERTECHNOLOGYUPGRADATION SCHEME)

3.16.1 In pursuance to the Nat ionalProgramme on Energy Conservation, ‘SmallIndustry Development Organisation’ (SIDO)launched this programme in small scaleindustries in the year 1990-1991. There aremany energy intensive areas in small scalesector, such as foundry, forging, steel re-rolling mills, glass & ceramic, bakeries, etc.The source of energy for these industriesis coke/coal , pet ro leum products andelectricity. The consumption of energy inthis small scale sector is very high.

3.16.2 Achievements of the programmeupto December 2006 during 2006-07 are:

No. of programmes allocatedto SISIs and RTCs 33

Programme conducted uptoDec, 2006 4

No. of persons benefited fromSSI sector 60

3.17.0 UPGRADATION OF SIDOWORKSHOP INTO MINI TOOLROOM

3.17.1 A Scheme of “Upgradation of SIDOWorkshops into Mini Tool Rooms” wasapproved in 1992-93, envisaging conversionof a few common fac i l i ty workshopsattached to SISIs/Br. SISIs into Mini ToolRooms. Consequently, CNC machines,

CAD/CAM sof tware, etc . , have beenprovided to the workshops at SISI, Mumbai,Chennai, Bangalore, Jaipur, Delhi, Kolkata,Kanpur, Ludhiana, Indore, Patna, Goa,Thrissur, Guwahati, Jammu and Ranchi andBr. SISI, Mangalore, Varanasi, Gwalior,Hubli, Allahabad, etc. CAD/CAM facilitieshave also been provided in selected SIDOfield offices as per the need of the area.

3.17.2 During the year 2006-07, till 31st

Dec. 2007 an amount of Rs. 98.2 lakh wasallotted to SISI/ Br. SISIs for purchase ofnew CNC machines and CAD/CAMSoftware. During the year, SISIs locatedat Allahabad, Guwahati, Mumbai, Chennai,Kanpur, Bangalore purchased high tech-machines and CAD/CAM softwares. Tilldate, 17 workshops has been upgradedunder this scheme.

3.18.0 INTEGRATEDINFRASTRUCTURALDEVELOPMENT (IID) SCHEME

3.18.1 The In teg ra ted In f ras t ruc tu ra lDevelopment (IID) aims at providing basicin f ras t ruc tu ra l f ac i l i t i es l i ke powerd is t r i bu t ion ne twork , wa te r , roads ,telecommunication, drainage and pollutioncon t ro l f ac i l i t y , banks , s to rage andmarke t ing ou t le ts , common se rv i cefac i l i t i es and techno log ica l back upservices etc., to enable establishment ofsmall scale and tiny units, thereby creatingemployment opportunities and increasingexports. The scheme covers rural as wellas urban areas with a provision for 50%

47


reserva t ion fo r ru ra l a reas and 50%industrial plots for tiny sector. The schemea lso p rov ides fo r upgrada t ion /s t reng then ing o f the in f ras t ruc tu ra lfaci l i t ies in the exist ing old industr ia lestates.

3.18.2 Under the scheme the State/UnionTerritory governments concerned or a goodNon-governmental organization (NGO) withsound financial position are required to selectsuitable sites, firm up the project proposaland get the project appraised by SmallIndustr ies Development Bank of India(SIDBI). The estimated cost for setting upan IID centre is Rs. 5 crore (excluding thecost of land). The central governmentprovides 40% of the cost as grant, limited toa maximum of Rs. 2 crore and the remainingamount would be loan from SIDBI/Banks/Financial institutions or state funds.

3.18.3 In order to provide a fillip to thegrowth of small scale industries, a specialincentive is envisaged in the scheme for theNorth Eastern Region (including Sikkim),J&K, Himachal Pradesh and Uttarakhandwith a provision of central grant up to 80%of the project cost (subject to a maximumof Rs. 4 crore).

3.18.4 The IID scheme is demand drivenand the initiative for setting up of an IIDcentre has to be taken by the state/UnionTerritory governments.

3.18.5 Upto December, 2006, 105 Centresin var ious states, inc luding 21 for

upgradation of old industrial estates, havebeen approved. Out of the 84 new centres,34 centres have been completed andremaining others are at various stages ofimplementation. Small and tiny units havebeen established in 48 centres and they areoperational. In all 2112 units have beenestablished and 21878 persons have beenemployed. As regards pro jects forupgradation of infrastructural facilities, workin two projects has been completed whichhas helped enhancement of operationaleff iciency of the units located therein.Central grant of Rs. 115.87 crore has beenreleased (in full or a part) to 98 centres upto31.12.2006. Dur ing 2006-07 (uptoDecember, 2006), 3 new IID centres havebeen sanctioned.

3.19.0 COLLECTION OF STATISTICSOF SSIs

3.19.1 The scheme was started during FifthFive Year Plan period in 1975 with theobject ive to co l lect , compi le anddisseminate statistical data/information onsmall scale industrial sector. Conduct ofCensus, Sample Survey, collection of IIPdata and Updation of frame are coveredunder the scheme. The scheme isimplemented through State Directorates ofIndustries (SDIs) and its Districts IndustriesCentres (DICs).

3.19.2 The coverage of the scheme hasbeen extended to collect data on the Micro,Small and Medium Enterprises since 2nd

October 2006 (the day of commencement

48


of the MSMED Act 2006). A decision hasalso been taken to conduct a new censusfor the MSMEs. To facilitate launching ofthe census, it is intended to computerize allDICs during the 11th Five Year Plan forwhich a proposal has been submitted to thePlanning Commission.

3.19.3 Under the Scheme the followingwork are being undertaken:

l Computation of Index of IndustrialProduction for small scale sector forworking out growth in production.

l Supply of monthly production datato Central Statistical Organisation(CSO) so as to represent SSI sectorin the overall Index of IndustrialProduction (I IP) brought out by(CSO).

l Estimation of information on numberof units un-registered.

l Est imat ion of product ion,employment both registered & un-registered.

l Updation of Frame and analysis ofRegist rat ion data andcorrespondence wi th State/UTDirectorates of Industries.

l Conducting census and samplesurvey/diagnostic survey, from timeto time.

3.19.4 Performance under the Schemeduring 2006-07 is as under:

l Col lect ion/col la t ion of data for

compilation IIP for SSI sector (with

base 1970).

l Updation in the base year for IIP for

SSI from 1970 to 2001-02.

l Data collection on 18 reserved items

for inclusion in the general index of

CSO

l Analysis of Registration data.

l Preparing work concerning of the 4th

census of MSMEs.

3.19.5 INDEX OF INDUSTRIALPRODUCTION (IIP) FOR SSISECTOR

The objective of IIP is to estimate the growth

in production of SSI sector. It is compiled

on a quarterly basis. The IIP is constructed

based on a basket of 356 items contributing

77% of production as per the First Census.

This data is collected from 2400 units having

an annual production of Rs. 1 crore. As a

follow up of the Third Census it has been

decided to change the base year from 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.

49


3.19.6 PERFORMANCE OF SSIs

3.19.6.1 Based on the data received from

the sampled units, the quarterly index with

the base year 2001-02 for the period April 2002

to March 2006 has been compiled. The growth

rates of SSI sector for the year 2002-03, 2003-

04, 2004-05 and 2005-06 estimated on the

basis of the new series of IIP vis-à-vis old series

of IIP and with total manufacturing sector are

given below (Table 3.5)

It may be seen that the overall industrial

growth rate of the Small Scale Industries

sector in terms of Index of Industr ial

Production (IIP) (Base: 2001-02=100) rose

to 12.32% during the year 2005-06 as

compared to 10.88% during the year 2004-

05. The SSI sector has also consistently

registered a higher growth rate as compared

to the overall manufacturing sector.

3.19.6.2 The Office of the DC (SSI)

provides estimates in respect of various

performance parameters relating to the growth

Year Growth rates of Growth rates of Growth rates of1970 base IIP 2001-02 base IIP manufacturing sector

with base year 1993-94

2002-2003 7.68 % 8.68 % 6.0

2003-2004 8.59 % 9.64 % 7.4

2004-2005 9.96 % 10.88 % 9.2

2005-2006 10.40 % 12.32 % 9.1

Growth rates of SSI sector : Table 3.5

of SSI Sector. The table showing the time

series data on various economic parameters

is given below (Table 3.6).

50


Performance of RTC’s : Table 3.1

Sl. Year Total SSI Fixed Production( Rs crore) Employment ExportsNo. units (lakh Inves- . Current Constant (lakh (Rs.

numbers) tment Prices Prices persons) crore)(Rs crore) (1993-94)

1 1990-91 67.87 93555 78802 84728 158.34 9664

2 1991-92 70.63 100351 80615 87355 165.99 13883

(4.07) (7.26) (2.30) (3.1) (4.83) (43.66)

3 1992-93 73.51 109623 84413 92246 174.84 17784

(4.07) (9.24) (4.71) (5.6) (5.33) (28.10)

4 1993-94 76.49 115795 98796 98796 182.64 25307

(4.07) (5.63) (17.04) (7.1) (4.46) (42.30)

5 1994-95 79.60 123790 122154 108774 191.40 29068

(4.07) (6.9) (23.64) (10.1) (4.79) (14.86)

6 1995-96 82.84 125750 147712 121175 197.93 36470

(4.07) (1.58) (20.92) (11.40) (3.42) (25.46)

7 1996-97 86.21 130560 167805 134892 205.86 39248

(4.07) (3.82) (13.60) (11.32) (4.00) (7.62)

8 1997-98 89.71 133242 187217 146262.9 213.16 44442

(4.07) (2.05) (11.57) (8.43) (3.55) (13.23)

9 1998-99 93.36 135482 210454 157525.1 220.55 48979

(4.07) (1.68) (12.41) (7.7) (3.46) (10.21)

10 1999-00 97.15 139982 233760 170379.2 229.10 54200

(4.07) (3.32) (11.07) (8.16) (3.88) (10.66)

11 2000-01 101.1 146845 261297 184401.4 238.73 69797

(4.07) (4.90) (11.78) (8.23) (4.21) (28.78)

12 2001-02 105.21 154349 282270 195613 249.33 71244

(4.07) (5.11) (8.03) (6.06) (4.44) (2.07)

At 2001-02 prices

13 2002-03 109.49 162317 314850 306771 260.21 86013

(4.07) (5.16) (11.54) (8.68) (4.36) (20.73)

14 2003-04 113.95 170219 364547 336344 271.42 97644

(4.07) (4.87) (15.78) (9.64) (4.31) (13.52)

15 2004-05 118.59 178699 429796 372938 282.57 124417

(4.07) (4.98) (17.90) (10.88) (4.11) (27.42)

16 2005-06 123.42 188113 497842 418884 294.91 NA

(4.07) (5.27) (15.83) (12.32) (4.37)

Time series data : Table 3.6

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3.19.7 COMPARISON OF THE SSISECTOR WITH THE OVERALLINDUSTRIAL SECTOR

The small-scale sector has maintained a higherrate of growth vis-à-vis the overall industrialsector. The comparative growth rates ofproduction for both the sectors during last fiveyears are given below (Table 3.7)

conducted with the reference year of 2001-02 was 249.33 lakh numbers. Uni tsoperated with fixed premises are treated asSSIs. As per the estimates compiled for theyear 2005-06 the employment was 294.91lakh persons in SSI sector. The share ofSSIs in the total employment among unitsengaged in manufacturing and services isaround 34.93%.

3.19.10 THE DATABASE ON THEMSME SECTOR

The MSMED Act came into effect on 2nd

October 2006. Accordingly, the coverageand the investment cei l ing have beenwidened and the sector is now called asmicro, small and medium enterprises sector.There is an immediate requirement toupdate the database accordingly. A freshcensus is going to be conducted during2007-08 to serve the purpose.

3.20.0 CREDIT GUARANTEE FUNDSCHEME FOR SMALLINDUSTRIES

3.20.1 Government introduced the CreditGuarantee Fund Scheme for Smal lIndustries in May 2000, with the objectiveof making available credit to SSI units,particularly tiny units, for loans up to Rs.10 lakh wi thout col latera l / th i rd par tyguarantees. The scheme is being operatedby the Credit Guarantee Fund Trust forSmall Industries (CGTSI) set up jointly bythe Government of India and SIDBI. Theloan l imit under the scheme has been

3.19.8 CONTRIBUTION OF SSI IN THEGROSS DOMESTIC PRODUCT (GDP)(Table 3.8).

3.19.9 EMPLOYMENT FROM SSISECTOR

The total employment from SSI sector(including SSSBEs) in the country as perthe Thi rd Al l Ind ia Census of SSIs

Year Growth Rate Overallof SSI industrialsector (%) sector (%)

2002-03 8.68 5.70

2003-04 9.64 6.90

2004-05 10.88 8.40

2005-06 12.32 8.10

Contribution of SSI : Table 3.8

Year Contribution of SSI (%) at 1999-2000 prices in

Total industrial Grossproduction Domestic

Product (GDP)

1999-2000 39.74 5.86

2000-2001 39.71 6.04

2001-2002 39.12 5.77

2002-2003 38.89 5.91

2003-2004 38.80 5.82

Growth rates of production : Table 3.7

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enhanced to Rs. 25 lakh per borrower interms of the Comprehensive Policy Packageon SSI announced by the Hon’ble PrimeMinister on 30th August, 2000, when thescheme was formally launched.

3.20.2 The scheme covers collateral-freecredit facility (term loan and/ or workingcapital including non fund based workingcapi ta l ) extended by e l ig ib le lendinginstitutions to new and existing micro andsmall enterprises up to Rs.25 lakh perborrowing unit. The guarantee cover is upto 75% of the credit sanctioned subject tomaximum guarantee limit of Rs. 18.75 lakh.However, the Member Lending Institutions(MLIs) are allowed to extend additionalcredit facilities against collateral securityand/ or th i rd par ty guarantee to theborrowers a l ready covered under thescheme in those cases where the creditfacility already covered under the schemehas reached the ceiling of Rs.25 lakh. TheMLIs availing guarantee from the Trust haveto pay one time Guarantee Fee of 1.5%(reduced from 2.5% to 1.5% w.e.f. 1 April2006) and Service Fee of 0.75% per annumof the credit faci l i ty sanctioned by thelending institution to the borrower.

3.20.3 The Credit Guarantee Scheme wasinitially approved for one year with a corpusof Rs.125 crore contr ibuted by theGovernment of India and SIDBI in the ratioof 4:1. Subsequently, Government decidedto continue the scheme beyond one yearand the Finance Minister in the Budget2006-07 has announced that the corpus

fund will be raised to Rs.2500 crore by2010-11. The corpus of CGTSI has beenenhanced to Rs.1336.55 crore with thecontribution of Rs.1069.25 crore from theGoI and Rs.267.30 crore from SIDBI.

3.20.4 As on 31 st December 2006, 59eligible institutions comprising 28 PublicSector Banks, 13 Private Sector Banks, 15Regional Rural Banks (RRBs), NationalSmall Industries Corporation (NSIC), NorthEastern Development Finance Corporation(NEDFi) and Small Industries DevelopmentBank of India (SIDBI) have become MemberLending Institutions (MLIs) of CGTSI forparticipating under the Credit GuaranteeScheme. Under the scheme, 61,312proposals amounting to Rs.1543.63 crorehave been approved for guarantee cover upto 31st December 2006.

3.21.0 MICRO FINANCEPROGRAMME

3.21.1 Government has launched a revisedScheme under the Micro FinanceProgramme of SIDBI in 2003-04.Government of India provides funds forMicro-Finance Programme to SIDBI undera ‘Portfolio Risk Fund’ (PRF), which is usedfor security deposit requirement of the loanamount from the MFIs/NGOs. At present,SIDBI takes fixed deposit equal to 10% ofthe loan amount. Under the PRF, the shareof MFIs/NGOs is 2.5% of the loan amount(i.e. 25% of security deposit) and balance7.5% ( i .e. 75% of secur i ty deposi t) isadjusted from the funds provided by the

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Government under the scheme.3.21.2 As on 31 st December 2006,Government has released an amount ofRs.9 crore towards ‘Portfolio Risk Fund’(PRF). Of this, Rs.7.64 has been utilized bySIDBI upto December 2006. The fundsunder PRF are utilized for extending loansin the hitherto underserved States (viz.,North Eastern States including Sikkim,Bihar, Jharkhand, West Bengal, Orissa,Madhya Pradesh, Chat t isgarh, Ut tarPradesh, Jammu & Kashmir, Rajasthan andUttaranchal) and less-served States. As on31 st December 2006, cumulat ive loanamount of Rs.101.87 crore has beenprovided to MFIs/NGOs under the scheme,thereby benefiting 3.21 lakh persons.

3.22.0 CREDIT LINKED CAPITALSUBSIDY SCHME (CLCSS)

3.22.1 The Min is t ry of Smal l ScaleIndustries (SSI) is operating a scheme fortechnology upgradation of Small ScaleIndustries (SSI) called the Credit LinkedCapital Subsidy Scheme (CLCSS). TheScheme aims at facilitating technologyupgradation by providing upfront capitalsubsidy to SSI units, including tiny, khadi,v i l lage and coi r industr ia l un i ts , oninstitutional finance (credit) availed of bythem for modernisation of their productionequipment (p lant and machinery) andtechniques. The Scheme (pre-revised)provided for 12 per cent capital subsidy toSSI uni ts , inc luding t iny uni ts , oninstitutional finance availed of by them forinduction of well established and improved

technology in selected sub-sectors/productsapproved under the Scheme. The eligibleamount of subsidy calculated under the pre-revised scheme was based on the actualloan amount not exceeding Rs. 40 lakh.

3.22.2 The Finance Minis ter made anannouncement in the Budget Speech of2004-05 to raise the ceiling for loans underthe Scheme from Rs. 40 lakh to Rs. 1 croreand rate of subsidy from 12 per cent to 15per cent . Further, in the l ight of theexperience gathered in implementing theScheme, certain other modifications asunder were also made in it to make it moreuseful to the SSI units, including tiny, khadi,village and coir industrial units, in taking uptechnology upgradation on a larger scale:

(a) the cei l ing on loans under theScheme was raised from Rs. 40lakh to Rs. 1 crore;

(b) the rate of subsidy was enhancedfrom 12 per cent to 15 per cent;

(c) the admissible capital subsidy is tobe calculated with reference to thepurchase pr ice of p lant andmachinery, instead of the term loandisbursed to the beneficiary unit;

(d) the practice of categorisation of SSIunits in different slabs on the basisof thei r present investment fordetermining the eligible subsidy hasbeen done away with ; and

(e) the operation of the Scheme hasbeen extended upto 31st March,2007.

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The above amendments are effective fromSeptember 29, 2005.

3.22.3 Year-wise details of approvals givenunder the CLCSS are as under (Table 3.9)

3.23.0 PROPOSED SCHEME TO BELAUNCHED FOR CAPACITYBUILDING, STRENGTHENINGOF DATABASE ANDADVOCACY BY INDUSTRY/ENTERPRISE ASSOCIATIONS,IN CONSULTATION WITH ANDWITH FINANCIALPARTICIPATION BY THELATTER.

3.23.1 I t has been fe l t tha t theAssoc ia t ions o f Micro and Smal lEnterprises do not have adequate capacityto collect and interpret data relating tochanges in the market scenario, owing tothe limited availability of funds and theabsence of expertise in the matter. As aresult, their articulation of views on specificissues concerning to their product groupsleaves much to be desired. In spite of thefact that the Associations of the MSEs havebeen made members of the SSI board andthe members of the steering Committeesof cer ta in nat iona l p rogrammes fordeve lopment o f some products , the i rex ist ing weakness prevent them fromplaying the expected role effectively. Evenin their role as facilitators for their membersin government ass is ted schemes l ikesetting up of sub contracting exchanges,testing laboratories, etc., the capacity ofthese Associations has been found to bedeficient.

3.23.2 To s t reng then the i r ro le andinc rease the i r e f f i c iency , f i nanc ia lassistance has been proposed for the

3.22.4 Consequent upon the increase ofceiling of loan from Rs. 40 lakh to Rs. 1.0crore and increase in rate of subsidy from12 per cent to 15 per cent from September29, 2005, the progress under the CLCSShas been encouraging. Whi le thecumulative amount of subsidy disbursedbetween 2001- 02 and 2006-07 (up to Nov.,06) by the nodal agencies was Rs.74.33crore (approx.) , most of i t has beensanctioned during the period from October,2005 to November, 2006. During 2006-07up to November 2006, 1189 units availedcapital subsidy of Rs.37.95 crore. Thisshows that the amendments made in thethen exist ing CLCSS guidel ines haveincreasingly encouraged tiny and smallscale industr ia l un i ts to under takemodernisation through availing of capitalsubsidy under the CLCSS.

Year No. of units Amount ofassisted sanctioned

(Rs. lakh)

2001-02 9 21.36

2002-03 47 93.97

2003-04 150 368.79

2004-05 526 1351.89

2005-06 699 1801.17

2006-07 (upto 1189 3795.47Nov.06)

Total 2620 7432.65

CLCSS details of approvals : Table 3.9

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sec re ta r ia l and adv iso ry /ex tens ionserv i ces o f se lec ted Assoc ia t i onsdepending on the size and the reach ofthe Assoc ia t ions . The bene f i c ia ryassociations are to provide the regular

manpower at their own cost and officespace and also bear 50 per cent of thecost of modernization of their facilities andequ ipment and t ra in ing o f the the i rpersonnel.

Page No.56

NATIONAL SMALLINDUSTRIES

CORPORATION LTD.

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4.1.0 Nat ional Smal l Industr iesCorporation Ltd. (NSIC) has completed 51years of service to the small enterprises.During this period, the Corporation provideda wide range of services to the SSI sector,in the f ie lds of market ing, equipmentfinancing, technology upgradation, exports,training and common facilities. Over thesefive decades of, growth, development andtransition, NSIC has proved its strengthwithin the country and abroad by promotingmodernisat ion, qual i ty consciousness,strengthening of linkages of the small withlarge, medium enterprises and enhancingexports of the SSI sector.

4.1.1 NSIC carries forward its mission toassist smal l enterpr ises wi th a set ofschemes designed to put them in acompetitive and advantageous position. Theschemes now compr ise fac i l i ta t ingmarket ing support , credi t support ,technology support and other supportservices.

4.2.0 ORGANISATIONAL SET – UP

The Corporation is manned by a team ofprofessionals at different levels and deliversits assistance through:

l 7 Zonal Offices located at Mumbai,Chennai , Kolkata, Hyderabad,

NATIONAL SMALL INDUSTRIESCORPORATION LTD.

Chapter 4

Delhi , Noida and Centra l Zonecovering the States of Gujarat,Madhya Pradesh & Chattisgarh.

l 26 Branch Off ices and 15 Sub-offices over states.

l 5 Technical Serv ices Centreslocated at Chennai , Howrah,Hyderabad, Okhla and Rajkot.

l 3 Technical Services ExtensionCentres located at Aligarh, Rajpuraand Guwahati.

l 2 Software Technology Parks – oneat Okhla, New Delhi and other atChennai.

l 2 Offices outside India – at Dubai(UAE) and Johannesburg (SouthAfrica).

4.3.0 SCHEMES OF THECORPORATION

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4.3.1 MARKETING ASSISTANCE

Marketing, a strategic tool for businessdevelopment is critical to the growth andsurvival of small enterprises in today’sintensely competitive market. NSIC acts asa facilitator to promote the products of smallenterprises and has devised a number ofschemes to support small enterprises intheir marketing efforts, both in and outsidethe country. These schemes are brieflydescribed as under:-

l Raw Material Distribution: NSIChas made arrangements with bulkmanufacturers l ike M/s. SteelAuthority of India Ltd. (SAIL), M/s.Rashtriya Ispat Nigam Ltd. (RNIL), M/s. National Aluminium Company Ltd.(NALCO) and Sterl i te group forprocuring raw materials like Steel,Aluminium, Zinc and Copper etc. toprovide raw material alongwithfinancial assistance as per therequirements of small enterprises.Through such arrangements benefitof economies of scale are also availedby the small enterprises. NSIC hasalso opened godowns at Tarapur,New Delhi, Faridabad and Silvassato facilitate the small enterprises tomake available the required materialat ease, to bring down their inventorycost and also arranging to provide rawmaterial closer to their works.

l Consor t ia and TenderMarketing: Small Enterprises in

the i r i nd i v idua l capac i t y faceproblems to procure & executelarge orders, which inhib i t andres t r i c t t he i r g rowth . NSICaccord ing ly adop ts Consor t i aapproach and forms consortia ofun i t s manufac tu r ing the sameproduc ts , the reby eas ing ou tmarke t ing p rob lems o f sma l len te rp r i ses . The Corpora t ionexplores the market and securesorders for bulk quantities. Theseorders are then distributed to smallen te rp r i ses in tune w i th the i rp roduc t ion capac i t y . Tes t ingfac i l i t i es a re a lso p rov ided toenab le sma l l en te rp r i ses toimprove and maintain the qualityof their products conforming to thestandard specifications.

l Single Point Registrat ion forGovernment Purchase : NSICoperates a Single Point RegistrationScheme under the GovernmentPurchase Programme, wherein theregistered small enterprises getpurchase preference in GovernmentPurchase Programme, exemptionfrom payment of Earnest MoneyDeposit etc. The small enterprisesregistered under this scheme getthe following facilities :

Ø Issue of tender sets free ofcost.

Ø Advance intimation of tendersissued by DGS&D.

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Ø Exemption from payment ofearnest money.

Ø Waiver of security deposit upto the monetary limit for whichthe enterprise is registered.

Ø Issue of competencycertificate in case the value ofan order exceeds themonetary l imi t , a f ter dueverification.

l Exhibit ions and TechnologyFairs : To showcase thecompetencies of Indian smal lenterprises and to capture marketopportunities, NSIC participates in

select international and nationalexhibitions and trade fairs everyyear . NSIC fac i l i ta tes theparticipation of the small enterprisesby providing concessions in rentaletc. Participation in these eventsexposes smal l enterpr ises tointernat ional pract ices andenhances their business prowess.

l Buyer - Seller Meets : Bulk anddepartmenta l buyers such asRailways, Defence, Communicationdepartments and large companiesare invited to participate in buyer-sel ler meets to enr ich smal lenterprises knowledge regarding

Dr. Chandrapal, Union Secretary, Ministry of SSI & ARI being escorted by Shri Ravindra Nath, ChiefGeneral Manager (Fin.) & Zonal General Manager, South-II, NSIC, on his visit to National IndustrialExhibition-cum-Vendor Development Programme organised by NSIC at Hyderabad

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terms and condi t ions, qual i tystandards, etc requi red by thebuyer. These programmes areaimed at vendor development fromsmal l enterpr ises for the bulkmanufacturers.

l Export of Products and Projects:NSIC is a recognized ExportHouse and exporting productsand pro jects of smal lenterprises of India to othercountries. The major areas ofoperation are:

Ø Export of products such ashandicraf ts, leather i tems,hand tools, pipes / f itt ings,builders’ hardware etc.

Ø Supply of Smal l Industryprojects on turnkey basis.

Ø Export of IT solutions fromIndia.

l Seminars & Intensive CampaignsDuring the year 2006-07, upto 31st

December, 2006, Corporation organized /participated in 376 Seminars / IntensiveCampaigns / EntrepreneurshipDevelopment Programmes.

4.3.2 TECHNOLOGY SUPPORT

NSIC offers small enterprises thefol lowing technology support servicesthrough its Technical Services Centres andExtension Centres:

Ø Advis ing on appl icat ion of new

techniquesØ Material testing facilities through

accredited laboratories

Ø Product design including CAD

Ø Common fac i l i ty support inmachining, EDM, CNC, etc.

Ø Energy and environment services atselected Centres

Ø Pract ica l t ra in ing for sk i l lupgradation

Focus areas of NSIC TechnicalServices Centres are as under:

Name of the Focus area

Centre

Chennai Leather & Footwear

Howrah General Engineering

Hyderabad Electronics &Computer Application

New Delhi Machine Tools &related activities

Rajkot Energy Audit &Energy Conservationactivities

Rajpura (Punjab) Domestic ElectricalAppliances

Aligarh (UP) Lock Cluster & Dieand Tool making

l Technology Transfer CentreNSIC, through i ts Technology

Transfer Centre, sources and disseminatesinformat ion on technology for smal l

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enterprises at national and internationallevel . Main object ive is to enhanceenterprise-to-enterprise cooperation amongthe small enterprises of India and those oftargeted countries. This is achieved throughorganiz ing business and technologymissions of small enterprises to variouscountries, partner matching through one onone-business meetings. The Centre hasestabl ished inst i tut ional l inkages wi thnational and international R&D institutions,Industry Associations of the country andabroad for the purpose of technologysourcing / dissemination to SMEs. Theorganisation has signed Memorandum ofUnderstanding with partner institutions indifferent countries for facilitating technologypartner matchmaking.

4.3.3 FINANCING SCHEMES

NSIC facilitates financing for smallenterprises in the following manner:

l Meeting credit needs of SmallEnterprises through t ie-uparrangements with Banks

NSIC has entered in to t ie-uparrangements wi th seven banks ( i .e.United Bank of India, UCO Bank, OrientalBank of Commerce, Central Bank of India,Bank of Maharashtra, YES Bank and UTIBank) for sanction of term loan and workingcapital facilities to the small enterprise asper their requirement. Such arrangementsfac i l i ta te smooth credi t f low to smal lenterprises.

l Financing for procurement ofRaw Material (Short term)

This has already been explainedabove under ‘Raw Mater ia lDistribution’.

l Financing for Market ingActivities (Short term)NSIC fac i l i ta tes f inancing formarketing actives such as InternalMarket ing, Exports and Bi l lDiscounting to small enterprises.

l Performance & Credit RatingScheme for Small Enterprises

NSIC is the implementing agency andoperating this scheme through accreditedrating agencies i.e. CARE, CRISIL, D&B,FITCH, ICRA, ONICRA and SMERA. Thefee to be paid by the small enterprises forthe rating, is subsidized by the Governmentto the extent of 75% upto a maximum of Rs.40,000/-. The scheme has become quitepopular now and getting good responsefrom the small enterprises. The rat ingserves as a trusted third party opinion onthe unit’s capabilities and credit worthiness.

4.3.4 SUPPORT SERVICES

l Infomediary Services

Recognizing the importance of informationand its relevance to small enterprises, NSICprovides Infomediary Services to smallunits. Under this scheme, small enterprisescan become members and avail a number

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of value added services. Some importantservices are:

Ø Supplier database

Ø Market intelligence

Ø Technology providers

Ø Information providers

Ø Linkages wi th re levantinstitutions

Ø E to E services

Ø E to B services

Ø Value additions like directorieson who makes machines, whomakes components, sparecapaci ty bul le t in boards,d iscussion forums, v i r tualexhibitions, etc.

l International Cooperation

Var ious sk i l l sets in thedevelopment process of small enterprisesacquired by NSIC over last 5 decades, arebeing networked to of fer consul tancyservices for other developing countries. Theareas of consultancy are as listed below:

Ø Capacity Building

Ø Policy & Institutional Framework

Ø Business Development Services

Other important initiatives are through settingup of institutional frameworks for promotionof small enterprises; conducting techno-economic assessment surveys; setting upindustrial estates, provision of common

facility services; support and extensionservices; supply of machinery, equipmentand transfer of technology; anci l larydevelopment and subcontract ingrelationships and technical & entrepreneurialtraining. NSIC’s initiatives are:

l Exchange of business/ technologymissions with various countries forfacilitating enterprise-to-enterprisecooperagy transfers, and otherforms of sustainable collaboration.

l Exploring new markets and areas ofcooperation through:

Ø Identif ication of new exportmarkets by part ic ipat ing insector-specific exhibitions allover the world.

Ø Identification of countries inwhich India has potential toexport its technology, productsand projects, such as the Sub-Saharan countr ies, CentralAsia the Indo-China region etc.

Ø Assistance to these countriesin formulating their policy andinstitutional framework.

l Software Technology Parks

NSIC-Software Technology Parks (STPs)facilitate small enterprises in setting up100% export-oriented units for softwareexports. They also act as nodal point toactivate software exports directly throughNSIC. These STPs extend support in terms

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of the requisite infrastructure to the smallenterprises to start business operations witha minimum lead t ime. The scheme isgoverned by STPI regulations of the Ministryof Information Technology, Government ofIndia. NSIC established the first STP atOkhla, New Delhi in 1995 and second inChennai in 2001. Several small enterpriseshave taken advantage of these parks andcontr ibuted expor t earn ings to theexchequer.

4.4.0 NEW INITIATIVES

4.4.1 Insurance of Export Credit forsmall enterprises under strategicalliance between NSIC and ECGC:

NSIC has entered, recent ly , in to anarrangement with Export Credit GuaranteeCorporat ion of Ind ia Ltd. (ECGC) forfacilitating small enterprises to insure theirexport credits. Small enterprises would behelped in insuring their export creditsthrough any off ice of the Corporat ion,located a l l over the country . Thisarrangement shall strengthen promotion ofexports from small enterprises.

4.4.2 Reaching out to SmallEnterprises

For the purpose of reaching out to the smallenterprises, NSIC, during the year 2006-07,s igned MoUs wi th var ious industryassociations located all over the country.The details / information about the schemesof the Corporation is being disseminated

through the of f ices of the industryassociations. This arrangement with theindustry associat ion / federat ion shal lfacilitate small enterprises in getting theserv ices of the Corporat ion at the i rdoorstep.

4.4.3 Establ ishment of Business -Incubator

NSIC has set up a Technology BusinessIncubator for the IT sector in the premisesof NSIC-Technical Service Centre at Okhla,New Delhi. Infrastructure facilities like readyto move in space, hardware, software etc.have been provided in the IT incubator.These facil i t ies are available to the ITIncubator occupants, which include firstgenerat ion entrepreneurs, s tar t -upentrepreneurs having v iable businessproject, individuals aspiring to venture intonew projects. Once the IT incubates’projects are ready for commercialization,the marketing services, legal services,advisory services are also provided to them.

4.4.4 New infrastructure projects tofaci l i tate SMEs in market ing theirproducts

NSIC is establ ish ing a Market ingDevelopment-cum-Business Park at Okhla,New Delhi, New Delhi and also developingan Exhibition-cum-Marketing DevelopmentBusiness Park at Hyderabad. A LaghuUdyog Mart is also being set up at Okhla,New Delhi by utilizing the available spaceand erecting sufficient number of hangers

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for exhibition purposes. After completion ofthese projects, adequate infrastructurefacilities shall be provided to the micro,small & medium enterprises at economicalrates. This will help them in enhancing theirmarketing avenues by way of capturing newmarkets and expanding existing market.

4.5.0 MAJOR EVENTS IN 2006-07

4.5.1 INTERNATIONAL EXHIBITIONS:

l Techmart India’ 2006 (14-27November, 2006)

NSIC organised the 14th series of Techmart India,

2006 coinciding with India International Trade Fairat Pragati Maidan, New Delhi. The event wassponsored by Ministry of SSI, Government ofIndia. Shri Mahabir Prasad, Hon’ble UnionMinister for Small Scale Industries and Agro &Rural Industries, Govt. of India inauguratedTechmart India’ 2006 on Nov. 15, 2006. 186 smallenterprises including 57 small enterprises fromNorth Eastern states of India and 27 units fromthe state of Jammu & Kashmir & Hilly areaparticipated in Techmart India, 2006. This year,as new initiate was taken by NSIC for providingspecial enclosure of “Working Techmart” wherestandalone Technologies for entrepreneurs wereon display besides live cluster demonstration ofunits from North Eastern States. 29 foreign

Shri Mahabir Prasad, Hon’ble Union Minister of SSI & A&RI inaugurating the Techmart India’ 2006 atPragati Maidan, New Delhi. Shri Anupam Dasgupta, the then Secretary (SSI & A&RI) and Shri H.P.Kumar, Chairman-cum-Managing Director, NSIC were also present on the occasion

67


delegations from Mauritius, Belarus,Mozambique, Tanzania, Peru, Iraq, Yemen,Botswana, Japan, South Africa besides 45delegates from Common Wealth countries alsovisited Techmart. NSIC was awarded Gold Medalfor Special Display in the theme category inTechmart India, 2006 by India Trade PromotionOrganisation, the organiser of IITF-2006.

Ø Rwanda International TradeFair,2006, Kigali

NSIC participated for the first timein this exhibition from 25th August,2006 to 4th Sept., 2006. Twelvemachines were on display in thisexhibition.

Ø International MachineryExhibit ion and Trade Fair ,ColomboNSIC participated in InternationalMachinery Exhibition & Trade Fair atColombo from 8th – 10th Sept.,2006for displaying SSI products /

machines such as Jewellery makingmachine / plastic extruder machine /silver extraction machine etc.

l SME & Technology Fair 2006,Port Louis

The exhibition was organized by SmallEnterprises and HandicraftsDevelopment Authority, Govt. ofMauritius. NSIC displayed products andcatalogues of small enterprises i.e.agriculture implements andmachineries, material handlingequipments, fruits & bakery, cratewashers, milk dairy products and Agro& Industrial Chemicals and otherappropriate technologies weredisplayed through flow charts.

l SAITEX 2006, Johannesburg,South Africa

NSIC participated in SAITEX 2006 (10th 13thOct.,2006) at Johannesburg (South Africa)displaying small scale technologies from Indiathrough flow charts like harvester combinesengineering goods, Home furnishings andherbal products, confectionary machinery andSSI projects.

l Expovall, Michoachan, Mexico

NSIC participated in Expovall, Michoachan(14th – 19th Nov., 2006) at Mexico. Theparticipants displayed ladies readymadegarments, home texti le, high fashiongarments.

A Panoramic view of Techmart India’ 2006 heldat Pragati Maidan, New Delhi

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The National Small Industries Corporation : Table 4.1Performance at a Glance

I. MOU TARGETS

S. Parameters Targets for Targets Achievements RemarksNo. 2006-07 upto Dec’06 upto Dec’06

(70% of theannual target)

1 Gross Income 31000 21700 26785.37(Rs. lakh)

2 Gross Margin 1410 987 681.47 The gross margin for the(Rs. lakh) corresponding period of

the last year was Rs.231.53 lakh that has beenimproved to Rs. 681.47lakh as on 31.12.2006.

3 Technology Support – 1.50 1.05 1.06Revenue Generatedthrough CommonFacilities(Rs. Crore)

4 Recovery of: i) Current Dues (%) 85 85 62.68 Efforts are being made

ii) Overdue for recovery of dues byAmount (%) 10 7.00 2.58 launching a new One

Time Settlement Scheme.

5 Internal Marketing 50 35.00 Tender Internal MarketingActivity Submitted: activity is likely(Rs. Crore) 79.18 to pick up in

Orders subsequent months.Executed:11.79

6 Revenue from 5 3.50 4.46Infrastructure(Rs. Crore)

7 Technology Support 2700 1890 3313– Services renderedto units (nos.)

8 Assistance Providedto WomenEntrepreneurs(nos.) 100 70 172

9 Performance and applications have beenCredit Rating – received for rating underUnits Accredited the scheme. As of(nos.) 1800 1260 2104 2104 Dec.’06 rating has

been assigned to 1231units.

10 Net addition under 1500 1050 1456InformediarySupport (Nos.)

TRAINING ANDENTREPRENEURSHIP

DEVELOPMENT

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5.0 Entrepreneurship development andtraining is one of the key elements fordevelopment of micro, small and mediumenterprises (MSMEs), particularly, the firstgeneration entrepreneurs. The NationalInstitute of Small Industry Extension Training(NISIET), Hyderabad The Indian Institute ofEntrepreneurship (IIE), Guwahati, and theNational Institute of Entrepreneurship andSmall Business Development (NIESBUD),NOIDA have been set up as national – levelinstitutions for promotion of MSMEs throughtraining and entrepreneurship development.To promote and assist entrepreneurshipdevelopment in the country, the Ministry hasalso been implementing (in addition to theschemes of SIDO) two important schemes,namely, promotion of entrepreneurshipdevelopment institutions (EDI) and schemeof National Entrepreneurship DevelopmentBoard (NEDB).The main objectives of theseprogrammes are ( i) promotingentrepreneurship for creating elf-employmentthrough enterprise creation; (ii) facilitatingcreation of training infrastructure; and (iii)supporting research of entrepreneurshiprelated issues.

5.1 ENTREPRENEURSHIPDEVELOPMENTINSTITUTIONS (EDI) SCHEME

5.1.1 Under the EDI scheme, grant is

TRAINING AND ENTREPRENEURSHIPDEVELOPMENT

Chapter 5

given for setting up of new entrepreneurshipdevelopment institutions (EDIs) and also forup-gradation and modernisation of existingEDIs in the country. Under the scheme, amatching grant of 50 per cent, subject to acei l ing of Rs.100 lakh is provided forbuilding, equipment, training aids etc. thebalance is contributed by the State/UnionTerritory Governments and other agencies.Financial assistance provided under thisscheme is only catalytic and supportive tothe contribution and efforts of State/UnionTerritory Governments and other agencies.Against budgetary allocation of Rs.250 lakhfor 2006-07, Rs.85 lakh have been releasedup to 31.12.2006 under this scheme.

5.2 NATIONALENTREPRENEURSHIPDEVELOPMENT BOARD(NEDB) SCHEME

5.2.1 This is an ongoing scheme from theNinth Plan, which was continued in the 10th

Plan. The main objective of the scheme is topromote entrepreneurial climate and inculcateentrepreneurship as a career. During 2006-07, a budget provision of Rs.200.00 lakh hasbeen made against which Rs.26.03 lakh hasalready been released up-to 31.12.2006. Arecent review of the scheme has revealed thatcontinuation of the NEDB had becomeunnecessary and that the efficacy of the

72


individual scheme components has not beenoptimal. Government has, therefore, decidedto abolish the NEDB and recast the schemecontents/components, with a view tosharpening their focus and improving theirimpact. Therefore, for the Eleventh Plan noallocation has been proposed for this scheme,rather it is being replaced by a new schemeto be now known as the Scheme of “Microand Small Enterprises – Initiation, Support,Promotion, Integration, Revitalization andEmpowerment (MSE - INSPIRE)”.

5.3 NATIONAL INSTITUTE OFSMALL INDUSTRYEXTENSION TRAINING(NISIET), HEYDERABAD.

5.3.1 NISIET, formerly known as CentralIndustr ia l Extension Training Inst i tute(CIETI), was set up in 1960 at New Delhias a Department of Central Governmentunder the Min is t ry of Commerce andIndustry. Its main objective was to providetraining to the personnel of the CentralSmall Industries Organisation as well as theDepartments of Industries of the StateGovernments. Subsequently, in 1962, itwas shifted to Hyderabad and convertedinto an autonomous society. In 1984, theInstitute was renamed as National Instituteof Smal l Industry Extension Tra in ing(NISIET). NISIET’s role has benefited notonly the Indian micro, small and mediumenterprises (MSMEs) but also those in other

Shri Mahabir Prasad, Hon’ble Union Minister of SSI & ARI during his visit to NISIET

73


developing countr ies and helped inpromoting self-employment and enterprisedevelopment. The Institute is constantlyevolving with time, modifying its focus withthe emerging needs of MSMEs andproviding them solutions in the form ofconsul tancy, t ra in ing, research, andeducat ion. NISIET’s programmes aredesigned to have universal relevance forsuccessfully training the entrepreneurs toface challenges and competition in the eraof globalisation.

5.3.2 The academic activities of the Instituteare organized through centres of excellencefocusing on specific needs of the MSMEs. TheAcademic Council of the institute is the nucleuscoordinating body for benchmarking, formulationand evaluation of academic activities andprogrammes.

5.3.3 Performance of the Institute for 2005-06(actual) and for the period April – December 2006(actual) and the projection for the remaining threemonths of 2006-07 is presented below (Table 5.1).

Performance of NISIET at a glance : Table 5.1

74


5.3.4 The new training building of theInstitute has put to use during the yearunder report, which is having 14 lecturehal ls , one conference hal l , and onemultipurpose hall besides accommodationfor the faculty and other support service.Dur ing the year , the fo l lowing threeimportant publications have been broughtout by the Institute:(i) Handbook on Cluster Development.

(ii) Counselling, Re-training and Re-deployment – a col lect ion ofseminar papers.

(iii) Cluster Development Manual.

5.3.5 Highlights of the main activities ofthe institute are as under:

l A new centre, ‘National ResourceCentre for Cluster Development’has been functioning in the Institutesince January 2004 as a nodalagency for cluster development inthe country. Besides conductingor ientat ion programmes andexperience sharing workshops forthe benefit of cluster developmentexecutives (CDEs), the Institute hasbeen providing mentoring servicesfor 20 clusters under the scheme ofSmal l Industr ies Cluster

Inauguration of New Training Building of NISIET by Shri Mahabir Prasad, Hon’ble Union Minister of SSI & ARI

75


Development Programme of SIDO.Fur thermore, the Inst i tu te hasconducted diagnostic studies andprepared business plans for 10clusters sponsored by theDevelopment Commissioner(Handicrafts), Ministry of Textiles.Out of these 10 c lusters, theInst i tu te has been engaged asimplement ing agency for threeclusters and as a technical agencyfor the remain ing c lusters. Inaddi t ion, the Inst i tu te is a lsofunct ioning as an implementingagency for two more c lusterssponsored by the DevelopmentCommissioner (Handlooms) forimplementat ion of In tegratedHandloom Cluster DevelopmentScheme to promote socio-economiccondi t ions of weavers andhandloom sector as a whole.

l The Institute has entered into aMemorandum of understanding withKhadi Vi l lage Industr ies

Commission (KVIC) for successfulimplementation of the Scheme ofFund for Regeneration of TraditionalIndustr ies (SFURTI) for thedevelopment of khadi, village andcoir industries clusters developmentin the country.

l The Inst i tu te entered in to anagreement with the DevelopmentCommissioner (Handlooms),Ministry of textiles, for evaluation oftwo projects. The f i rst projectconsists of five schemes viz., (i)Deen Dayal Hathkargha ProtsahanYojana (DDHPY), ( i i) HandloomExport Scheme (HES), (iii) Workshed-cum-Housing Scheme(WCHS), ( iv) Weavers Wel fareSchemes, and (v) Market ingPromotion Programme (MPP); whilethe second project consists of twoschemes viz., (i) Health InsuranceScheme (HIS) and (ii) IntegratedHandloom Training Project (IHTP).

l The Institute has been recognisedas a nodal agency of the Ministry ofHeavy Industr ies and Publ icEnterprises, for the implementationof Counsel l ing, Retra in ing andRedeployment (CRR) Scheme ofrationalised employees of CentralPublic Sector Undertakings. TheInstitute was allocated a target ofret ra in ing of 3500 rat ional isedemployees under th is Schemeduring 2006-07. As against this

Inauguration of International Training Programme

76


target , 2502 employees wereal ready ret ra ined by end ofDecember 2006 and expected tofulfil the target for the year.

l The Institute has been implementingprogrammes sponsored by theMinistry of Development of North-Eastern Region for training theofficials of North-Eastern States invar ious areas of enterpr isedevelopment.

l As an effort towards restructuring itsmanpower, the Institute has beenapproved a specia l vo luntaryretirement scheme (VRS). Underthe scheme, it was envisaged toret i re 43 group ‘C’ and ‘D’employees of the Inst i tute. 18employees of the Institute havealready avai led VRS under thescheme and some more areexpected to opt for the scheme.

l The Institute has accepted incomegeneration target of Rs. 650.87 lakhduring 2006-07 as against which theactual income realised as on 31st

December 2006 was Rs.707.27lakh. During the current financialyear, the Institute is expected togenerate net surp lus of Rs.Rs.20.30 lakh.

5.4 INDIAN INSTITUTE OFENTERPRENEURSHIP (IIE)GUWAHATI.

5.4.1 The Indian Institute ofEntrepreneurship (IIE) was set up at Guwahatiin 1993. It took over NISIET’s NER Centre from1st April 1994. The Institute is completing 13th

year of its operation on 31st March 2007. Duringthis period the Institute has expanded itsactivities to a great extent covering all facetsof MSME activities. IIE’s Regional Office atUttaranchal has become fully operational. Sinceits establishment and up to December 2006,the Institute has organized 1090 trainingprogrammes/workshops/seminars/meetswhere 35342 participants participated. TheInstitute has obtained ISO-9001-2000certification from the Bureau of IndianStandards. The Institute has expanded itscanvas not only in terms of geographicalcoverage but also diversifying into variousareas of the activities related to socio-economicdevelopment. The Institute organises trainingprogrammes and undertakes research andconsultancy services in the field of promotionof MSMEs and entrepreneurship.

Shri P.R. Kyndiah, Hon’ble Union Minister of TribalAffairs and Development of North Eastern Region,Chairman, NEC, Presiding the Annual GeneralBody Meeting of IIE

77


5.4.2 The types and number of trainingprogrammes organized and number ofparticipants trained during 2005-06 and2006-07 (up to December 2006) andexpected achievement for the year are asunder (Table 5.2)

5.4.3 Highlights of the main achievementsof the Institute are as under:-

l Promotion of new entrepreneurs hasbeen the major focus of trainingorganised by the Institute. In orderto promote new entrepreneurs, theInstitute organises rural, generaland women EDPs, sector specificEDPs, etc. detai ls of which aregiven below (Table 5.3)His Excellency, Lt. General (Retd.) Shri Ajai

Singh, Hon’ble Governor of Assam, inauguratingthe first PGDME Course of the Institute. Sittingon the dais (R) is Shri Ripon Borah, Hon’bleMinister of Education, Assam

Sl. Type of No. of No. ofProgrammes Programmes Partici

pants

1 General EDP 10 300

2 Women EDP 03 71

3 Sector SpecificEDPs 21 1328

4 EDP for PMRYBeneficiaries 2 215

Total 36 1914

Types of Programme and Number of Participants (IIE) : Table 5.2

Details of EDP by IIE : Table 5.3

78


Industry where a to ta l o f 66participants participated.

l The Institute also organized twoprogrammes, one each on Finishingand Dying Techniques covering 45participants.

l The Institute organised a series ofProgrammes for growth anddevelopment of ex is t ingentrepreneurs dur ing Apr i l -December 2006 as per details givenbelow (Tabel 5.4).

l For creation of environment forentrepreneurship development,during April-December 2006, theInst i tu te has organised 13programmes for or ientat ion ofof f ic ia ls f rom spor t agenciescover ing 328 par t ic ipants. Thedetails of these programmes are asunder (Table 5.5).

l For creat ion of awareness andorientation for college and universitystudents regardingentrepreneurship, dur ing Apr i l -

l Besides cont inuing i ts RuralIndustr ies Programme (RIP) inMeghalaya, Manipur and Barpeta inAssam, the Institute started its RIPat Nongpoh in Meghalaya with thehelp of SIDBI. Another areaapproach that the Inst i tute hasundertaken is the STED Project inBongaigaon to promoteentrepreneurship with technologicalin tervent ion sponsored by theDepartment of Science andTechnology.

l At the instance of Coir Board,Min is t ry of Agro and RuralIndustries, the Institute organised16 sector-specific programmes inCoir based industr ies, covering1217 par t ic ipants f rom NorthEastern Region.

l At the instance of the Ministry ofScience & Technology, Governmentof India, the Institute also organizedthree programmes, one on HerbalMedicine, one on Areca nut leafplates and one Rubber Plantation

IIE Programmes for existing entrepreneurs : Table 5.4

79


December 2006, the Institute hasorganised 15 programmes covering884 students from various colleges,univers i t ies and poly technicinstitutes.

l In the area of in format ion

technology, the Inst i tu te has

organized 3 Training Programmes.

The Institute has also organised 1

Programme on Basic Computer

Appl icat ion Ski l ls where 21

part ic ipants at tended. I t a lso

organized one AIRTSC sponsored

programme for youths of schedule

caste communi ty where 25

part ic ipants par t ic ipated. The

Institute also started its six months

Teachers’ Training Programme on

Computer Applications where 20

teachers are participating.

l During April-December 2006, the

Inst i tu te has organised three

workshops on t rade re lated

entrepreneurship assistance and

development scheme and one each

on handloom Cluster Scheme and

SFURTI. A l together 218

part ic ipants at tended these

Workshops/Seminars.

l The Ins t i t u te has been

implementing a comprehensive

ent repreneursh ip development

programme (CEDP) on gem stone

processing hosiery and woollen

garment manu fac tu r ing . The

Institute has set up two training

centres, one at i ts campus and

one a t A izwa l , fo r gem s tone

Shri Anupam Dasgupta, then Union Secretary (SSI &ARI) going round the Gems Cutting and PolishingCentre of the Institute alongwith (on is left ) Shri PravirKumar, Joint Secretary, Ministry of SSI

IIE Programmes of orientation : Table 5.5

80


processing; and two centres for

hos ie ry and woo l len ga rment

manufacturing, one in Sikkim and

another in Arunachal Pradesh.

This initiative is the first of its kind

in the North-East for imparting skill

deve lopment t ra in ing to

prospect ive ent repreneurs and

artisans by offering six-month and

three-month certificate courses, in

gemstone processing and hosiery

processing, respectively. Besides,

incubat ion fac i l i t i es , techn ica l

support, market linkages, etc. are

a lso p rov ided to p rospec t i ve

en t rep reneurs . T i l l December

2006 , 30 en t rep reneurs in

Gemstone and 56 in Hosiery were

trained.

l The Cane & Bamboo Cluster at

Dimapur in Nagaland and Handloom

Cluster in Manipur, are the Institute’s

maiden ventures into the cluster

initiative in North East. Considering

the availability of local resources and

local craftsmanship, the Institute has

initiated the process of development

of cluster of traditional and rural

art isans in these sectors. The

Inst i tute organized a f ive-day

Exhibition-cum-Sale Campaign of

Handloom & Handicraft products of

cluster actors as part of its Cluster

Initiative at Guwahati from 23 to 27

October 2006.

l The Institute has been appointed as

a Technical Agency by the Ministry

of Agro and Rural Industries for

overlooking several khadi, village

industr ies and coi r c lusters in

Eastern and North-Eastern Regions

under Scheme for Fund for

Regenerat ion of Tradi t ional

Industries (SFURTI). The Institute

has started a series of sensitization

programmes and pre-diagnostic

studies for the prospective clusters

in the region.

l Bus iness Fac i l i t a t i on &

Development Centre (BFDC) is a

wing of I IE to provide support

services to small enterprises in

Nor th -Eas t Reg ion inc lud ing

S ikk im. The BFDC has been

pos i t i oned to he lp the f i r s t

generation entrepreneurs. During

the year , 347 en t rep reneurs

utilized the services of BFDC. 80

A view of Zonal Level Workshop on SFURTI at theInstitute premises

81


Pro jec t Repor ts have been

prepared and submi t ted to

commercial Banks and NEDFI for

f inance, out o f which f inanc ia l

assistance for 27 projects have

already been sanctioned. A total of

35 new bus iness un i t s made

operational during the year.

l During the year the Institute has

completed the following Research

and Consultancy studies:

(i) Pro poor Dairy Development in

Assam : Improving Traditional

Dairy Market ing and

Processing - sponsored by

Internat ional L ivestock

Research Institute.

(ii) Women Entrepreneurs and

Inst i tu t ional F inance -

sponsored by Of f ice of

Development Commissioner of

Small Scale Industries.

(iii) A Study on Coir re lated

activities in North East vis-à-

vis Potentials- sponsored by

Coir Board.

In addition, a study on Industries based on

ancillary and support services of large and

medium industries of North East India is in

progress.

l The Institute has launched a Post

Graduate Dip loma Course in

Management and Entrepreneurship

(PGDME). The first batch of the

course started in July 2006. This

course a ims at prov id ing

comprehensive inputs on

entrepreneur ia l as wel l as

managerial aspects of running a

business.

l The Ins t i t u te had o rgan ised

delegation of entrepreneurs from

North East to visit China and Hong

Kong in assoc ia t ion w i th

Federa t ion o f Indus t r ies and

Commerce of North East Region

(F INER) . The de lega t ion

comprised of 10 entrepreneurs

from Assam, Nagaland, Mizorm,

S ikk im and Megha laya and

representatives of IIE and FINER.

The object ive of the delegation

was to explore the possibilities of

business tie-ups, collaborations,

b i l a te ra l t rade , economic

cooperation, technology transfer,

j o in t ven tu res , i nves tment

proposals and marketab i l i ty o f

indigenous products of North East

to these countries.

5.5 NATIONAL INSTITUTE FORENTREPRENEURSHIP ANDSMALL BUSINESSDEVELOPMENT (NIESBUD),NOIDA

5.5.1 The Nat ional Inst i tu te for

Entrepreneurship & Smal l Business

82


Development (NIESBUD), Noida was set up

in 1983 as an apex institution in the field of

entrepreneurship development to promote,

support and sustain entrepreneurship and

small business through training, education,

research and consultancy services.

5.5.2 The major activities of the Institute

include, evolving model syllabi for training

various target groups, providing 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.

5.5.3 The Inst i tu te helps other

Entrepreneurship Development Institutions

in various ways, such as developing syllabi

in entrepreneurship for different target

groups, training of faculty and developing

training aids.

5.5.4 During April-December, 2006, the

Institute has organised 62 training activities

with 1510 participants. The category-wise

details of the training programmes thus

organized are given below (Table 5.6).

The participants of one of the International Training Programmes during Field Visits

83


5.5.5 One of the focus target areas of thetraining activities of the Institute during theperiod was organizing of Small BusinessOpportunities & Development Programmesfor Women and Weaker Sections of thesociety. A total of 11 activities with 348persons were organized towards this end.

5.5.6 The Institute has reached anunderstanding with the NSIC Ltd., forundertaking training activities under SmallEnterprise Establishment Programme (SEEP)aimed at providing handholding facilities toexisting/potential entrepreneurs. The initial twoactivities under the Programme have beeninitiated at Dehradun and Haldwani (Uttranchal).

5.5.7 The Institute has been awarded thework of conducting of EDPs in the States ofDelhi, U.P. and Haryana by the Ministry of FoodProcessing Industries.

5.5.8 The Institute organized a series oftraining activities (11) under Swarna JayantiShahri Rojgar Yojana of the Ministry of UrbanEmployment & Poverty alleviation, Governmentof India, during the period.

5.5.9 The Institute has been performingthe functions of a Technical Agency underthe SFURTI – Scheme of Fund for Re-generat ion of Tradi t ional Industr ies –Min is t ry of Agro & Rural Industr ies,Government of India.

5.5.10 The Inst i tu te organised the 5 th

Commonwealth – India Small BusinessCompetitiveness Development Programmeat its Campus from November 19 – 24,2006, which was attended by 50 delegatesfrom 32 countries.

5.5.11 Further, the Institute conducted fourinternational training programmes with 61part ic ipants f rom di f ferent Afro-Asiancountr ies. The themes of theseprogrammes were - Human ResourceDevelopment Through EntrepreneurshipEducation; Small Business Planning &Promot ion; Women and Enterpr iseDevelopment – A Trainers / PromotersProgramme; and Trainer’s Training onEntrepreneurship & Promotion of IncomeGeneration Activities.

NIESBUD - Details of the training programmes : Table 5.6

84


5.5.12 During April-December 2006, theInstitute organised 5 Seminars, Workshops& Conferences consisting of 155 delegates.These events also included a two-dayNational Meet of Trainers in EnterpriseDevelopment, which was attended by 45delegates and 20 special invitees.

5.5.13 During the year, the Institute hascarr ied out / working on the fol lowingresearch / evaluation studies:-

(i) Evaluation Study of Mahila DairyVikas, Almora, Uttranchal (STEPProjects) under sponsorship ofDepartment of Women & Chi ldDevelopment, Ministry of HumanResource Development ,Government of India.

(ii) Evaluation Study of Aromatic &

Herbal Farming – Ex-serv iceLeague (STEP Projects)Department of Women and ChildDevelopment, Ministry of HumanResource Development beingimplemented in the State of Jammu& Kashmir.

(iii) Evaluation Study of the schemes ofNational Backward Classes Finance& Development Corporat ion(NBCFDC) in U.P. and Uttranchal.(iv) “Impact Study of ISO – 9000System Application in SSI Sector inthe NCR” awarded by the Office ofthe DC(SSI).

(iv) Evaluation Study of Schemes ofNational Safai Karamcharis FinanceDevelopment Corporation in thestate of Andhra Pradesh.

NATIONALCOMMISSION FOR

ENTERPRISES IN THEUNORGANISED SECTOR

87


6.1 NCEUS

The National Commission for Enterprisesin the Unorganised Sector (NCEUS) wasconstituted on 20th September 2004 andconsists of a Chairman, two fu l l t imeMembers, one Member Secretary and twopart time Members. An Advisory Boardconsist ing of 10 eminent experts andactivists concerned with the unorganisedsector was also constituted to advise theCommission. The Commission has beengiven the mandate to examine the problemsof the Unorganised Sector (also referred toas Informal Sector) and suggest measuresto overcome them. The term of theCommission, which was initially fixed at oneyear, has been extended to three years.

6.2 TERMS OF REFERNCE

The following are the Terms of Referenceassigned to the Commission:

(1) Review of the status ofunorganised/informal sector in Indiaincluding the nature of enterprises,their size, spread and scope andmagnitude of employment.

(2) Identity constraints faced by smallenterprises with regard to freedomof carry ing out the enterpr ise,

access to raw materials, finance,sk i l ls , ent repreneurshipdevelopment , in f rast ructure,technology and markets and suggestmeasures to provide institutionalsupport and linkages to facilitateeasy access to them.

(3) Suggest the legal and pol icyenvironment that should govern theinformal/unorganised sector forgrowth, employment exports andpromotion.

(4) Examine the range of ex is t ingprogrammes that re late toemployment generation in informal/unorganised sector and suggestimprovement for their redesign.

(5) Ident i fy innovat ive legal andfinancial instruments to promote thegrowth of the informal sector.

(6) Review of the ex is t ingarrangements for est imat ingemployment and unemployment inthe informal sector and examine whythe rate of growth in employmenthas stagnated in the 1990.

(7) Suggest e lements of anemployment strategy focusing on

NATIONAL COMMISSION FOR ENTERPRISESIN THE UNORGANISED SECTOR

Chapter 6

88


the informal sector.

(8) Review Indian labour laws,consistent with labour rights andwith the requirements of expandinggrowth of industry and servicesparticularly in the informal sectorand improving product iv i ty andcompetitiveness.

(9) Review the social security systemavailable for labour in the informalsector and make recommendationsfor expanding their coverage.

6.3 TASK FORCES CONSTITUTEDBY NCEUS

The Nat ional Commission hasconstituted Task Forces to deliberate on thefollowing issues identified for immediateintervent ion and make appropr iaterecommendations:

Ø Social Security for UnorganisedSector Workers;

Ø Stat is t ica l issues in theUnorganised/Informal Sector; and

Ø Skill formation in the UnorganisedSector.

Task Forces on Access toTechnology and Infrastructure, Access toMarkets, Raw Materials and Finance andLegal and Pol icy issues concern ingenterprises in the Unorganised Sector arebeing constituted.

6.4 CONCEPT OF GROWTHPOLES

6.4.1 The NCEUS proposed the formationof Growth Poles in different parts of thecountry with a view to (i) integrating withina geographical location a number of clustersof unorganised production units engaged inmanufactur ing, services and non-farmactivities and (ii) facilitating the expansionof production of and employment in thesemicro and small enterprises. The GrowthPoles would incorporate the concept ofProvision of Urban Amenities in Rural Areas(PURA) that has been advocated by thePresident of India. This proposal also foundmention in the Finance Minister’s BudgetSpeech, 2005-06.

6.4.2 In this context, the Commission hadtaken-up the mat ter wi th the StateGovernments / UTs for identification andselection of pilot projects of Growth polesin the states. In response the StateGovernments of Chhatt isgarh, Kerala,Rajasthan, Uttaranchal and West Bengalsubmit ted thei r pre l iminary proposalsidentifying the location for the Growth Polesin the States for which Detailed ProjectReports (DPRs) are being prepared.

6.5 UNORGANISED SECTORWORKERS BILL

The Commission submit ted Report onSocial Security for Unorganised Workers tothe Hon’ble Prime Minister on 16.5.2006. A

89


copy of the Report was also given to Hon’bleLabour and Employment Minister andHon’ble Minister of Small Scale Industry andAgro and Rural Industry. The report wasalso presented to the Planning Commission.A Press conference was organised to givewide publicity to the Report. Chairman andofficials of the NCEUS while visiting theKolkata discussed the Report and also metTrade Union Leaders and organisations

working in the Unorganised Sector.

6.6 NATIONAL POLICY ONURBAN STREET VENDORS

The Commission submit ted aReport and Recommendations on NationalPolicy on Urban Street Vendors to theHon’ble Minister for Urban and PovertyAlleviation on 5.5.2006.

Kumari Selja, Hon’ble Union Minister of State (i/c), Ministry of Housing and Urban Poverty Alleviation,is being presented the Report and Recommendations on National Policy on Urban Street Vendors byDr. Arjun K. Sengupta, Chairman, NCEUS

Page No.90

INTERNATIONALCOOPERATION

93


Chapter 7

INTERNATIONAL COOPERATION

7.1 INTERNATIONALCOOPERATION SCHEME

7.1.1 International Cooperation Schemefor modernisat ion and technology up-gradat ion and compet i t ivenessenhancement of small enterprises has beenunder implementation since 1996. Underthis Scheme, small entrepreneurs are takento potent ia l foreign markets, for f i rm/association level interactions on, inter alia,sourcing technology, explor ing exportmarkets of their products and learning bestpractices.

7.1.2 The Scheme nowencompasses the following activities:

Ø Participation in exhibitions, fairs andbuyer-sel ler meets (wi th aninternational component).

Ø Exchange of business delegations, toexplore new areas of technologyupgradation, facilitating joint ventures,improving marketabil ity of SSIproducts, foreign collaborations, etc.

Ø Holding of seminars/buyer-sellermeets, to promote enterprise-to-enterprise interactions throughselected agencies, both in India &abroad.

7.1.3 During 2006-07, participation ofSSIs in in ternat ional exhib i t ions anddeputation of business delegations hasbeen sponsored under the Scheme.

7.2 INDIA GLOBAL SUMMIT ONSME

The Ministry and Confederation of IndiaIndustry (CII) jointly with NSIC & SIDBIorganised “India Global Summit on SMEs –Emerging Challenges & Opportunities”, on22 and 23 November, 2006 at New Delhi.Hon’ble Minister (HI & PE) inaugurated theSummit. Hon’ble Minister of State forIndustry inaugurated the Summit. The GlobalSummit, facilitated networking and sharingof best international practices in the SMESector, to provide a sustainable focus on thefuture global development and growth ofSMEs. Enabling policies, role of finance/innovat ive f inance & measure for r isksharing, value addition through Informationand Communication Technology; GlobalOutsourcing Opportunities and Global SmallEnterprise are some of the topics that weredeliberated upon during the Summit. 400foreign delegates from 30 countries fromacross the globe attended the Summit.

7.3 Commonweal th- India Smal lBusiness Compet i t ive DevelopmentProgramme

94


During the year two programmes were held.

7.3.1 The fourth and final programme inthe f i rst ser ies of pan-CommonwealthInstitution-Building Programmes on SmallBusiness Competitiveness Developmentwas held at Chennai during 23-28 April2006. The programme was organised bythe Ministries of SSI&ARI, CommonwealthSecretariat, London, NSIC, EXIM Bank andM S Swaminathan Research Foundation(MSSRF), Chennai . The theme of theprogramme was ‘Pover ty A l lev ia t ionthrough Sustainable SME Development’, inwhich 53 de legates f rom 44Commonwealth countr ies part ic ipated.Besides, presentations and discussion on

the theme of the programme, related fieldvisits were also organised.

7.3.2 The first Commonwealth – IndiaSmal l Business Compet i t ivenessDevelopment Programme in the next seriesof Commonwealth India Small BusinessCompetitiveness Development Programmesin India was held at NEISBUD campus,Noida from November 19 to November 24,2006. Ministry of SSI, CommonwealthSecretariat, NSIC and Exim Bank were thepartner institutions for organizing this event.The theme of the programme was “SMEDevelopment , Growth and PovertyAl lev iat ion” . For ty-e ight senior pol icymakers and practitioners representing 26

The dignitaries in the course of one of the Technical Sessions during 5th Commonweath-India SmallBusiness Competitiveness Development Programme

95


member States from the Commonwealthattended this five day programme. Theparticipants were exposed to a combinationof best practices and case studies. Fieldvisits to various industries and institutionswere also organized. Key resource personsfrom dif ferent Commonwealth memberStates deliberated upon various significantissues re lated to enhancement ofcompeti t iveness of SMEs. Visi t of theparticipating delegates to Techmart-India2006 was also organized, where they wereexposed to more than 200 technologiesappropriate for small enterprises.

7.4 Other signif icant eventsincluding signing of Memorandum ofUnderstandings and Joint CommitteeMeetings:

(i). A delegation led by Shri MahabirPrasad, Minister of Small ScaleIndustr ies & Agro and RuralIndustr ies v is i ted Rwanda andUganda during 29 August 2006 to 2September, 2006 to d iscusscooperat ion between thesecountries and India in the smallscale sector. During the visit toRwanda, a Memorandum ofUnderstanding (MoU) oncooperation in the field of micro,smal l and medium enterpr ises(MSMEs) was signed between theMinistry of Small Scale Industries,Government of India and Ministry ofCommerce, Industry, Investment

Promot ion, Tour ism andCooperat ives (MINICOM),Government of Republic of Rwanda.The Minister and the accompanyingdelegation also attended the 9 th

Rwanda International Trade Fair2006 at Kigali, Rwanda.

(ii). For promoting and developing small

and medium sized enterprises, a

Memorandum of Understanding

(MOU) was signed between the

Ministry of Small Scale Industries of

India and the National Agency for

Smal l and Medium-Sized

Enterprises and Co-operatives of

Romania on 23.10.2006 at New

Delhi.

(iii). The first Joint Committee Meeting

(JCM), under the MOU on

Cooperation in the field of Micro,

Smal l and Medium enterpr ises

between the Secretariat of Economy

of the United Mexican States and

the Min is t ry of Smal l Scale

Industries and the Ministry of Agro

and Rural Industries of the Republic

of India signed on 27.3.2006, was

held on 25.9.2006 at New Delhi.

During the meeting, the Annual

Action Plan for 2006-2007 under

Art ic le 2.2(a) of the MoU was

finalised.

(iv). Dur ing the Joint Commissionmeeting between India and Tunisiaat Tunis during 5th – 8th February,2007, Cooperation Agreement in the

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field of Small and Medium SizedEnterprises between Governmentsof India and Tunisia was signed. Inthe agreed Minutes of Jo intCommission, areas where India &Tunisia would cooperate in the smallscale sector have been listed.

(v). A delegation led by H.E., AmahMarie Tehoua, Minister of Industryand Promotion of Private Sector,Republ ic of Cote D’ Ivo i re metMinister (SSI&ARI) and officers ofMinistries of SSI&ARI on 14.2.2007at New Delhi. During this meeting,MoU between Ministry of Industryand Promotion of Private Sector,Republ ic of Cote D’ Ivo i re andMinistries of Small Scale Industryand Agro Rural Industries was alsosigned.

(vi). H.E. Mr. Sam Kutesa, Minister ofForeign Affairs, Republic of Ugandacal led on Hon’b le Min is ter ofSSI&ARI) on 1.11.2006 as a followup on the recent visit of Minister(SSI&ARI) to Uganda and requestedfor ass is tance f rom India onproviding training.

(vii). Mr. Carlos Agostino Do Rasario, HighCommissioner of Mozambique calledon Joint Secretary(SSI) to discussareas of cooperation between the twocountries in the small scale and agrorural industrial sector.

(viii). To understand and d iscussdevelopment of small and agro rural

industries in India, an Ethiopiandelegation led by Mr. Mekuria Haile,Head, Trade, Industry and UrbanDevelopment Bureau had a meetingwith officers of Ministries of SSI &ARI on 22-05-2006.

(ix). Mr. Inder j i t Coomaraswamy,Director, Economic Affairs Division,Commonwealth Secretariat, Mr. SevVet t ivetp i l la i , Chief Execut iveOff icer , Aureos Capi ta l andProfessor Rao, Administrative StaffCollege of India (ASCI), Hyderabadmet with officers in Ministry of SSIon 6.7.2006, to discuss a ‘Proposalfor Capacity Building in SMEs inAfrica and South Asia’, prepared byASCI under Commonweal th ’sPrivate Investment Initiative (CPII).

(x). Ministry of External Affairs (MEA)arranged a meeting between Mr.Ahmad Ben Said Jaffar, Minister ofExternal Affairs and Cooperation ofComoros and Ministry of SSI on26.7.2006 to discuss assistance bythe Ministry of SSI in setting up of aVocational and EntrepreneurshipTraining Institute (VETI) and alsosmall scale industries in Comoros.

(xi). A meet ing was held betweenofficers of Ministry of SSI with H.E.Gabr ie l Fassi l , Ambassador ofEritrea on 19.9.2006 in New Delhito discuss the possibility of transferof appropriate technology for smallprojects in Eritrea.

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(xii). High Commissioner of the Kingdomof Lesotho, H.E. Shabbir H. Peerbhaicalled on Joint Secretary (SSI) on7.9.2006 to discuss further areas ofcooperation under the existing MoUbetween the Governments of India &Lesotho for promotion anddevelopment of small enterprises.

(xiii). H.E. Protais Mittal i , Minister ofCommerce, Industry, InvestmentPromotion, Tourism & Cooperatives(MINICOM) called on the Minister ofSSI&ARI on 6.10.2006 to discussfurther cooperation between India &Rwanda in the small scale, agro andrural industrial sectors. An MOU hadbeen signed between Ministry of SSIand MINICOM in August, 2006 duringMinister (SSI&ARI)’s visit to Rwanda.

(xiv). A meet ing was held betweenofficers of Ministry of SSI&ARI witha study team from the DevelopmentResearch Centre (DRC) from theState Council of Peoples Republicof China (PRC) on 15.12.2006 inUdyog Bhavan, New Delhi.

(xv). Officers from the Ministry of SSI hada meet ing wi th the Egypt iandelegation comprising Mr. Moustafa,M/o International Cooperation andMr. Abdel Rahman A. Raouf ,Commercial Counsellor, M/o Tradeand Industry, Govt. of Egypt on15.12.2006 in Udyog Bhavan, NewDelhi to discuss the possibilities ofcooperat ion in the f ie ld of

development of SMEs, under theprovis ions of Joint Act ion Plansigned with Egypt.

(xvi). Secretary (SSI&ARI) visited theCommonwealth Secretariat, Londonand Warwick Manufacturing Group(WMG) in the UK during 7-12September, 2006 to participate in theOveral l Evaluat ion of theCommonwealth - India Smal lBusiness Competi t ivenessDevelopment Programme anddiscuss future of the Programme withthe Director & representatives of theSpecial Advisory Services Division(SASD), Commonwealth Secretariatand also the col laborat iveopportunities between WMG and theMinistries of SSI & ARI.

(xvii). Joint Secretary, Ministry of SmallScale Industries and CMD, NSICvisited Commonwealth Secretariat,London (UK) during 27-30 October,2006 to part icipate in a ReviewWorkshop organised byCommonwealth Secretar iat inconnection with Commonwealth –India Smal l BusinessCompeti t iveness DevelopmentProgramme.

(xviii). Joint Secretary (ARI) visited Athens(Greece) during 6-8 November,2006 to participate in OECD – APECGlobal Conference “Removingbarr iers to SME access toInternational Markets”.

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ACTIVITIES IN THENORTH EASTERN REGION

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8.1 NE REGION

The North-Eastern Region, consisting ofAssam, Arunachal Pradesh, Manipur ,Mizoram, Meghalaya, Nagaland, Tripuraand Sikkim has abundant natural resources.These resources can be util ized for allround economic development andemployment generation in the region.

8.2 ROLE OF MINISTRY

The Ministry of SSI is actively promoting thedevelopment of Small Scale industries inthe North Eastern region through theprogrammes and schemes implemented byi ts organisat ion. SIDO has SISIs atGangtok, Guwahati, Imphal, Agartala andalso branch SISIs at Aizwal, Dimapur,

ACTIVITIES IN THE NORTH EASTERNREGION

Chapter 8

Itanagar, Diphu, Silchar, Tezpur, Shillongand Tura. There is a Tool Room andTraining Centre at Guwahati.

8.3 PROFILE OF THE SSISECTOR IN NORTH EASTERNREGION

A statement showing estimated number ofSSI units, fixed investment, production andemployment in Northeast region of thecountry for the year 2005-06 is given below(Table 8.1).

8.4 SIGNIFICANT ACTIVITIES

8.4.1 As per the instructions of Govt. ofIndia, 10% of the total budget is to beearmarked for development of North

Estimated number of SSI units, fixed investment, production andemployment in NE region : Table 8.1

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Eastern Region. Rs.38.62 crore has beenearmarked exclusively for North EasternRegion and Rs. 25.31 crore has alreadybeen incurred on various developmentalactivities in North Eastern Region.

8.4.2 A proposal received from Govt. ofNagaland for setting up a Mini Tool Roomhas been approved and procurement ofmachinery & equipment is in progress.

8.4.3 Under I ID scheme, a specia lincentive is envisaged for the North EasternRegion (including Sikkim) with a provisionof central grant up to 80% of the project cost(subject to a maximum of Rs. 4 crore ) toprovide a fillip to the growth of Small ScaleIndustries.

8.4.4 Up to December, 2006, 13 Centresin various states i.e. Assam, Mizoram,Tripura and Nagaland, have been approved.Out of the 13 centres, 2 centres have beencompleted and remaining others are atvarious stages of implementation. Rs. 30.36crore has been released (in full or in part)to IID centres located in North East Regionup to 31.12.2006.

8.4.5 Res ident ia l accommodat ion a tGuwahati, Aizawl, Tura & Tezpur havebeen constructed and construct ion formore quar ters is under progress a tGuwahati with the objective to provideresidential accommodation to the Officers& Staff of SIDO posted in North-EasternAreas.

Shri Mani Shankar Aiyar, Hon’ble Union Ministry of North East Region inaugurating the 4th North East Expo’2007at NSIC Exhibition Centre, New Delhi. Shri H.P. Kumar, Chairman-cum-Managing Director, NSIC and Ms.Sushma Singh, Union Secretary, Department of North East Region also graced the occasion

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8.5 NSIC’S ACTIVITIES IN NER

8.5.1 NSIC has a network of officesin North Eastern Region. This includesbranch office at Guwahati (Assam) and sub-of f ices at Imphal (Manipur) , Dimapur(Nagaland), Itanagar (Arunachal Pradesh),Shillong (Meghalaya) and Agartala (Tripura).NSIC has a Demonstration-cum-TrainingCentre at Guwahat i , which prov idestechnical t ra in ing, sk i l l upgradat ionprogrammes and entrepreneurshipdevelopment programmes.

8.5.2 NSIC, Guwahati conducted variousIntensive Mot ivat ional-cum-AwarenessProgramme in all the States of North Eastin associat ion wi th regional bodies /inst i tu t ions engaged in serv ing smal lenterpr ises i .e . SISI , Gangtok; DIC,

Dimapur; Nagaland & North East SmallScale Industries Association (NESSIA) atJorhat, (Assam).

8.5.3 Five Small Enterprise EstablishmentProgrammes (SEEP) have been conducted inNorth Eastern Region with 25 candidates in eachprogramme. The programmes have beenconducted in Gangtok, Meghalaya, Byrnihut,Kokrajaar (Assam) Tinsukhia. NSIC Guwahatiarranged imparting training and skill upgradationin the field of leather footwear and minor articles,hospitality and tourism management, catering andbaking technology, TV and mobile phone repair,machinist, computer hardware and networkingetc.

The activities of IIE, Guwahati in theNER are detailed in the Chapter V on ‘Trainingand Entrepreneurship Development’.

Shri Mahabir Prasad, Hon’ble Union Ministry of SSI & ARI, visiting the Cluster Actors from Dimapur, Nagalandparticipating in the IITF, New Delhi

Page No.104

DEVELOPMENTACTIVITIES FOR WOMEN

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9.1 In the policy measure for promotingand strengthening small, tiny and villageenterprises announced in Parliament on06.08.1991, it was stated that the definitionof women enterprises would be simplified.Accordingly, the def ini t ion of ‘WomenEnterprises’ has been revised as under:

“A small scale industrial unit/industry -related service or business enterprise,managed by one or more womenentrepreneurs in proprietary concerns, or inwhich she/they individually or jointly havea share capital of not less then 51 per centas par tners/shareholders/d i rectors ofprivate limited company/members of co-operative society.”

9.2 PARTICIPATION OF WOMENIN SSI SECTOR

9.2.1 In the Third All India Census ofSSIs, the participation of women in the SSIsector has been categorised in three roles:some women are owners of enterprises,some managers of enterprises and someemployees. With regard to ownership, thedef in i t ion ment ioned above has beenadopted.

9.2.2 The tota l number of womenenterprises in the SSI Sector was estimatedat 10, 63, 721 (10.11 %). The estimated

Chapter 9

DEVELOPMENT ACTIVITIES FORWOMEN

number of enterprises actually managed bywomen was 9, 95, 141 (9.46 %).

9.2.3 About 13% of the womenenterprises were in the registered SSIcategory, the rest being unregistered. Of theenterprises managed by women, 11.5%were in the registered SSI category.

9.2.4 The share of the units managed bywomen in terms of employment was 7.14%.The employment generated per Rs. 1 lakhinvestment in the units managed by womenwas 2.49.

9.2.5 The tota l number of femaleemployees in the SSI sector is estimatedat 33, 17, 496. About 57.62% of the womenwere employed in SSI units located in theStates of Tamil Nadu, Kerala, Karnataka,West Bengal and Andhra Pradesh.

9.2.6 The proportion of female employeesin the total employment in the SSI sectorwas 13.315%. In the States/UnionTerritories of Mizoram, Orissa, Karnataka,Goa, Lakshadweep, Kerala, Tamil Nadu andPondicherry, the share of womenemployment was significantly higher (morethan 20%), compared wi th the tota lemployment in the respective States.

9.3 In India, Women entrepreneurs

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have been in business for quite some timeand achieved remarkable success.However, their number is still small. One ofthe reasons for this is the initial hesitationand inhibition, which emanates from thetraditional and societal perception of the roleof women. Like any other entrepreneurs, anew women entrepreneur has to competewith those who are already well established.Therefore, women entrepreneurs have tonot only face the gender insensitivity andbias prevalent in the society but alsocompete against established competition. Inits industrial policy, the Government of Indiahas laid considerable emphasis on thepromotion of women entrepreneurship,par t icu lar ly f i rs t generat ion womenentrepreneurs, through various training andsupport services. Special attention is givenby organising exclusive entrepreneurshipdevelopment programmes for women. Inthese programmes, the t ra inees/entrepreneurs are exposed, throughdemonstrat ion and t ra in ing, to themanufacture of a variety of products. Thus,many women are trained every year by theInstitutes of the Ministry. The availablefeedback shows that these women have notl imited themselves to the conventionalventures but also set up hi-tech industriesin the fields of information technology,engineering, graded grey iron, non-ferrouscast ing and sophis t icated e lect ronicequipment, etc. Tool Rooms have starteddesigning special courses for women in thef ie ld of tool engineer ing. Voluntaryorganisations in the country are also doingcommendable work in the field of women

entrepreneurship development .Associations of women entrepreneurs havealso come up and are doing remarkably wellin some States.

9.4 The Plan Schemes of Ministry ofSmall Scale Industr ies are for thedevelopment of SSI Sector in the country andthe main focus is to provide a wide range ofservices and faci l i t ies required foraccelerating the growth of SSI. The PlanSchemes operated by the Ministry benefitStates/regions and individuals. In case ofprogrammes like entrepreneurial developmentprogramme, Management DevelopmentProgramme, National Award forEntrepreneurial Development (Quali tyProducts) and Trade RelatedEntrepreneurship Assistance andDevelopment (TREAD) Programme forWomen, etc., the necessary guidelines havebeen issued and specif ic reservationsprovided for women.

9.5 TRAINING OF WOMENENTREPRENEURS

Field Institutes of SIDO conductneed based programmes for existing andprospective entrepreneurs. During 2006-07(up to December, 2006), 10050 womenparticipated in various training programmesl ike Entrepreneurship DevelopmentProgramme (EDP), ManagementDevelopment Programme (MDP), Ski l lDevelopment Programme (SDP) andIndustrial Motivational Campaign (IMC).Autonomous Bodies under this Ministry also

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conduct various short-term/long-term trainingprogrammes in footwear technology, tool anddye making and other allied industries. Theseinstitutes provided training to 20280 women.

9.6 WOMEN EMPOWEREDUNDER INTEGRATEDINFRASTRUCTURALDEVELOPMENT SCHEME

Association of Lady Entrepreneurs of AndhraPradesh (ALEAP), an NGO comprisingwomen members only, has successfullycompleted the implementation of an IIDproject at village Gajularamaram, Distt.Rangareddy, A.P. In this, 75 units have beenestablished and employment generated bythese units is 1500 women. Out of the totalproject cost of Rs. 347 lakh, Govt. of Indiaprovided grant to the tune of Rs.139 lakh.

Another IID project at Vijyawada,Distt. Krishna, A.P. is being implementedby ALEAP. The total project cost is Rs.370lakh and Government of India grant ofRs.91.38 lakh has been released for thisproject. 10 units have been established inthis Centre so far and 100 women havebeen benefited from this project upto theend of December, 2006.

9.7 TRADE RELATEDENTREPRENEURSHIPASSISTANCE ANDDEVELOPMENT (TREAD) FORWOMEN

Traditionally, women have been amongstthe most disadvantaged sections of our

society with regard to access to and controlover resources. Problems faced by themcontinue to be grave particularly for illiterateand semi-literate women of rural and urbanareas. Apart from counseling and training,availability of credit poses the most seriousproblem for the poor women. In order toalleviate their problems, the Ministry ofSmal l Scale Industr ies (SSI) in theGovernment of Ind ia has launched ascheme t i t led “Trade RelatedEntrepreneurship Assis tance andDevelopment” (TREAD) for economicempowerment of women through thedevelopment of their entrepreneurial skillsin non-farm activities.

2. The three main components of thisscheme are as under:

(i) Ass is tance in the form of theGovernment of India (GoI) grant ofup to 30 per cent of the total projectcost, as appraised by the lendingagency, is provided to the NonGovernmental Organisat ions(NGOs) for promot ingentrepreneurship among targetgroups of women. The remaining 70per cent of the pro ject cost isfinanced by the lending agency asloan for undertaking activities asenvisaged in the project.

(ii) Selected training institutions andNGOs conducting trainingprogrammes for empowerment ofwomen beneficiaries identified underthis scheme can also avail of GoI grant

110


of up to Rs.1.00 lakh per programme,for imparting training to the womenentrepreneurs, provided suchinstitutions also bring their share of atleast 25 per cent of the grant. However,NGOs except from the North EasternRegion (NER), would be allowed toconduct training programmes only afterthey take up some lending proposalsunder this scheme.

(iii) Need-based Government of India grantup to Rs.5 lakh per project is providedto National EntrepreneurshipDevelopment Institutions (EDIs) viz.National Institute of Small IndustryExtension Training (NISIET), NationalInstitute of Entrepreneurship and SmallBusiness Development (NIESBUD),Indian Institute of Entrepreneurship(IIE), EDIs sponsored by the StateGovernment, Small Industries ServiceInstitutes (SISIs), and any otherinstitution of repute primarily forundertaking field surveys, researchstudies, evaluation studies, designingof training modules, etc.

9.7.1 PERFORMANCE DURING 2006-07

9.7.1.1 During the year 2006-07, Rs 41.45lakh has been sanctioned as GOI grant to the5 NGOs for their capacity building, whoseprojects have been appraised by Canara Bankand Canara Bank. Canara Bank hassanctioned loan of Rs 102 lakh to these NGOs.About 534 women are likely to be benefited

through the projects approved by Bank underthe TREAD Scheme so far. It is expected that7 more projects may be appraised during theyear and another 1000 women entrepreneursare likely to get benefits during the remainingperiod of the current financial year

9.7.1.2 Centre For EntrepreneurshipDevelopment Madhaya Pradesh (CEDMP)has conducted 5 EDPs and provided thetraining to 138 women for their Skil lDevelopment so that they may set up incomegenerating activities.

9.7.1.3 The autonomous bodies under SIDOi.e. PPDC, Meerut, CFTI, Agra and IIE,Dehradun have been given the sanction forGoI grant of Rs. 3 lakh each for conducting 3EDPs by each under the scheme. It isexpected that about 300 women are likely tobe trained by these institutions/bodies duringthe remaining period of the current financialyear for economic empowerment of womenthrough their Skill Development so that theymay set up income generating activities.

9.7.1.4 An NGO, based in NER has beengiven the financial sanction of Rs 2.00 lakhfor conducting 2 EDPs for providing trainingon collection of Rubber Wood to about 50women for their economic empowerment.

9.7.1.5 All the SISIs have been given thefinancial sanction of Rs. 15000/- each fororganizing workshop to create awareness andmotivate the women, NGOs, Banks and otherStakeholders so that more and more womenmay avail of the benefits of the scheme.

USE OF OFFICIALLANGUAGE

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10.1 Hindi is the Official Language of theUnion of India and the Government policyis aimed at progressively increasing the useof Hindi in official work. Effective steps weretaken during the year in the Ministry ofSmal l Scale Industr ies to ensurecompliance of Official Language policy ofthe Government, implementation of theannual programme and compliance with theorders of the Pres ident on therecommendations of the Committee ofPar l iament on Of f ic ia l Language.Consequently, there has been a constantprogress in the use of Official Language inofficial work in all these offices.

10.2 COMPLIANCE OF THEPROVISIONS OF THEOFFICIAL LANGUAGE ACT,1963

All documents such as resolutions, generalorders, rules, licences, etc., under section3(3) of the Official Language Act and allpapers laid on the Tables of the Houses ofParliament were issued bilingually i.e. inHindi and English. Some papers like generalorders meant for Departmental use wereissued in Hindi only.

10.3 REPLIES TO LETTERS INHINDI

All letters received in Hindi were replied toin Hindi.

USE OF OFFICIAL LANGUAGE

Chapter 10

10.4 CORRESPONDENCE IN HINDI

Letters to State Governments, Union TerritoryAdministrations and Central Governmentoffices located in regions ‘A’ and ‘B’ wereissued in Hindi, to the maximum extentpossible. Similarly, efforts were made to sendletters in Hindi to Central Government officeslocated in region ‘C’, as per the targets laiddown in the annual programme. About 89 percent correspondence were made in Hindi inregion ‘A’, 86 per cent in region ‘B’ and 81per cent in region ‘C’ upto the quarter endingDecember 2006.

10.5 SECTIONS SPECIFIED FORWORKING IN HINDI

The sections of the Ministry, notified fordoing a l l work in Hindi , are work ingsatisfactorily.

10.6 MONITORING ANDINSPECTIONS

In order to ensure compliance of the OfficialLanguage policy, monitoring is done throughquarterly progress reports in the meetingsof the Official Language ImplementationCommittee etc. During the year, eightSections of the Ministry were inspected, toensure use of Hindi and compliance of theOfficial Language policy.

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10.7 TRAINING OF OFFICIALS

All officials of the Ministry have alreadybeen t ra ined in Hindi typ ing andstenography.

10.8 USE OF MECHANICAL AIDS

As required under the Official Language Act,bilingual facilities have been provided onoffice equipment in the Ministry. Computersand terminals have also been installed withfacility to work in Hindi.

10.9 COMMITTEES

10.9.1 To review the use of Hindi in theMinistry and to give advice to accelerate theuse of Hindi, a Hindi Advisory Committeeexists in the Ministry. The meeting ofCommittee was held on 15.09.2006. Furtheraction on the decisions of the Committeehas been taken.

10.9.2 Departmental Off icial LanguageImplementat ion Commit tee under thechairmanship of Joint Secretary in theMinistry of Small Scale Industr ies hasal ready been const i tu ted. Quarter lymeetings of these committees were heldand decisions were taken regarding use ofHindi in official work to ensure complianceof these decisions and follow up action.

10.10 HINDI MONTH

Hindi month was celebrated during 14September, 2006 to 13 October, 2006 in theMinistry. Competit ions were organisedduring this period in Hindi typing, Hindistenography, debate in Hindi, GeneralHindi, Hindi dictation. A large number ofofficers and employees participated withenthusiasm. The messages of the HomeMinis ter and Cabinet Secretary werecirculated for information and compliance onthis occasion.

VIGILANCE MATTERS

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11.1 The vigilance unit of the Ministry isheaded by a Chief Vigilance Officer (CVO)of the rank of Jo int Secretary to theGovernment of India appointed on theadvice of the Central Vigilance Commission(CVC). The CVO functions as the nodalpoint in the vigilance set-up of the Ministry.The secretariat assistance to the CVO inthe Ministry of SSI is, however, providedby the Vigilance Desk of the Department ofIndustr ia l Pol icy & Promot ion (DIPP),Ministry of Commerce and Industry as theMinis t ry of SSI does not have i tsindependent vigilance unit. The vigilanceuni t is , inter a l ia, responsible for thefollowing:

l identification of sensitive areasprone to malpractices/temptationsand taking preventive measures toensure in tegr i ty /ef f ic iency inGovernment functioning;

l taking suitable action to achieve thetargets fixed by the Department ofPersonnel & Training (DoPT)onanti-corruption measures;

l scrutiny of complaints and initiationof appropr ia te invest igat ionmeasures;

l inspections and follow-up action onthe foregoing;

l furnishing comments to the CVC onthe invest igat ion reports of theCentra l Bureau ofInvestigation(CBI);

l taking appropriate action in respectof departmental proceedings on theadvice of the DoPT & CVC;

l obtaining second stage advice ofthe CVC, wherever necessary; and

l obtaining advice of the Union PublicService Commission (UPSC) inregard to the nature and quantumof penalty to be imposed, wherevernecessary.

11.1.1 Preventive vigilance continues toreceive at tent ion wi th emphasis onidentification of areas sensitive/prone tomalpract ices and temptat ions. Theguidelines/instructions issued by the DoPTand the CVC from time to time in this regardare followed. Action taken includes thefollowing:

(i) Regular and surprise inspectionsare carried out by the DepartmentalSecurity Officer of the DIPP. In theattached and subordinate offices,respective Departmental SecurityOf f icers car ry ou t theseinspections.

VIGILANCE MATTERS

Chapter 11

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(ii) St rengthening of v ig i lancemachinery by way of appointingCVO in the offices and organisationsunder the Ministry, who looks afterthe vigilance activities in the office/organization concerned.

(iii) A strict watch is kept on liaison menand on other persons. TheDepartmental security instructionsare re-iterated from time to time forstreamlining entry of outsiders in thebuilding. To end the practice ofprofessional liaison men operating inthe Ministry, a fresh list of suchunwanted l iaison men has beenprepared.

(iv) Cases of the officers, who haveattained the age of 50 years or haveput in 30 years of service, arereviewed under FR 56 (j) in order tojudge their suitability to continue inservice thereafter. The exercise iscurrent ly being done by theEstablishment Division of the DIPP.

(v) In order to make officers consciousof the provisions of Conduct Rulesappl icable to them as a lso toacquaint them with the importanceof departmental security, Rules/Instructions are reiterated in thisrespect from time to time.

11.2 SMALL INDUSTRIESDEVELOPMENTORGANISATION

The Vigi lance Unit in the off ice of theDevelopment Commissioner (Small ScaleIndustries), New Delhi, is headed by a CVO

of the rank of Director to the Governmentof India appointed on the advice of theCentral Vigilance Commission (CVC), withfull complement of staff under him. The CVOis also responsible for all the field offices ofthe SIDO. The Vigilance Section deals withv ig i lance matters l ike complaints andvigilance cases coming within the purviewof CCS (CCA) Rules, 1965 concerningSmall Industries Development Organization.

11.2.1 Apart from dealing with complaintsand vigilance cases against officers andstaff relating to corruption and impropermot ives, a number of anonymous/pseudonymous compla ints as a lsocomplaints and vigilance cases other thanthose of corruption or improper motivespertaining to the officers of Small IndustriesDevelopment Organisat ion were a lsohandled. Al l compla ints re lat ing tocorruption/improper motives and/or delayswere investigated and suitable action takenagainst officers found guilty of misconduct/misbehaviour.

11.2.2 The vigilance cases in respect ofGroup ‘C’ & ‘D’ staff of field offices areattended to by the Director of the institute/centre who is assisted by AD (Admn).Theservices of senior off icers both at theHeadquarters office and in the field officesare utilized for investigating the complaints.

11.3 NATIONAL SMALLINDUSTRIES CORPORATION(NSIC)

NSIC has appointed its own parttime CVO on the advice of the CVC.

CITIZENS’ CHARTER / RTI ACT

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CITIZENS’ CHARTER / RTI ACT

Chapter 12

12.1 This Charter is a declaration of theMinistry, incorporat ing i ts mission andcommitment to the smal l scaleentrepreneurs and for the people of India ingeneral.

12.2 MINISTRY OF SSI

The Ministry of Small Scale Industries isresponsible for formulation of policies anddesigning programmes, pro jects andschemes for promoting the growth of microand small enterprises in the country. Thepolicies and programmes/projects/schemesare implemented by the organisations likethe Smal l Industry DevelopmentOrganisat ion (SIDO), Nat ional Smal lIndustries Corporation Ltd. (NSIC), nationallevel Entrepreneurship DevelopmentInstitutes, etc. The Organisations of theMinistry have their own Citizen’s Charters.

12.3 MISSION

The mission of the Ministry is to promote,in cooperation with other Ministries andDepartments of the Central Government,Sta te Governments , Un ion Ter r i to ryAdministrations and all other stakeholders,the growth and development of the microand small enterprises and to enhance theircompetitiveness so that these enterprisescontribute to accelerating the expansion of

productive employment opportunities in thecountry. The Ministry seeks to fulf i l i tsmission by formulating appropriate policiesand des ign ing/ implement ing suppor tmeasures in the f ie lds o f c red i t ,technological upgradat ion, market ing,entrepreneurship development, etc., andundertaking effective advocacy for thesepurposes.

12.4 COMMITMENT

The Ministry and its organisationsare committed to providing efficient andprompt service with t ransparency andcourtesy to the citizens and as well as microand small enterprises.

Towards this, the Ministry will, in thespirit of dutiful discipline, respect the rightsof individuals, entrepreneurs and theirassociations. The Ministry will maintain anduphold the confidentiality of personal andbusiness information disclosed to it by thecitizens. The Ministry and its organisationswi l l cont inuously rev iew the pol ic ies,programmes and enforcement of relatedlaws and regulations, in consultation withthe stakeholders concerned, with the aimof fulfilling its mission.

12.5 STANDARD FOR GENERALPROCEDURE

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The letters received by the Ministry are

generally acknowledged within 15 days and

replied to as soon as possible.

12.6 RESPONSIBILITIES OF OURCITIZENS

The Ministry expects continuous feed back

from the cit izens on the quali ty of the

services provided to them and on areas in

which improvements are expected.

12.7 ASSESSING PERFORMANCE

The Ministry, from time to time, shares its

per formance wi th the c i t i zens and

stakeholders through the media and its

website. The Ministry also undertakes

independent surveys on perceptions of the

c i t i zens and assessment o f i t s

performance.

12.8 GUIDANCE AND HELP

The Information and Facilitation Counter ofthe Ministry, located on the ground floor,Gate No.4, Nirman Bhavan, New Delhi,provides information on the services andact iv i t ies of the Min is t ry and i tsorganisations.

12.9 COMPLAINTS

In case of any complaint, one may telephoneor send a letter or fax or visit the Ministry atUdyog Bhavan, New Delhi. However, beforelodging of a complaint, one may, first of all,use the Information and Facilitation Counterof the Ministry. In case one is not satisfied,the matter may be taken up with theGrievance Officer in this Ministry. Theaddress, phone and fax numbers of theInformation and Facilitation Counter and theGrievance Cell are as follows:

IMPORTANT ADDRESSES WEBSITES ADDRESS(1) Grievance Cell www.ssi.nic.in - Ministry of SSI

Additional Development www.laghu-udyog.com - SIDOCommissioner, www.nsicindia.com - NSICOffice of the DC(SSI) www.niesbud.com - NIESBUDRoom No.721 www.nisiet.com - NISIETNirman Bhavan www.iie.nic.in - IIENew Delhi – 110011Tel. No. 23061847No. 011-23061017 (Fax)

(2) Information and Facilitation CounterGate No.4, Ground Floor,Nirman Bhavan, New Delhi-110 011Tel.No.23062219

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12.10 RIGHT TO INFORMATION ACT

In order to promote transparencyand accountability in the working of everypublic authority and to empower the citizensto secure access to information under thecontro l o f publ ic author i t ies, theGovernment of India enacted “The Right toInformation Act, 2005”. In accordance withthe provisions of section 4(1) (b) of this Act,the Ministry of Small Scale Industries,Government of India has brought out ahandbook for information and guidance ofthe stakeholders and the general public andhosted the same on the website of theMinistry i.e. www.ssi.gov.in. In terms of

section 5(2) of the Right to Information Act,2005, Central Public Information Officers(CPIO) have been designated in theMinistry.

Attached office of the Ministry i.e. SmallIndustry Development Organization (SIDO)and other offices/organizations of Ministryv iz . the Nat ional Smal l Industr iesCorporation Limited (NSIC), a Public SectorUndertaking and three EDI of the Ministrywhich come under the administrative controlof this Ministry, have also designated CPIOsin respect to their organizations. The detailsof CPIOs designated by them is availableon the following websites:-

SIDO - www.lagu-udyog.comNSIC - www.nsicindia.comIIE, Guwahati - www.iie.nic.inNISIET, Hyderabad - www.nisiet.comNIESBUD, Noida - www.niesbud.com

124


ANNEXURE I

NUMBER OF SSI UNITS

FIXED INVESTMENT IN SSI SECTOR

125


PRODUCTION IN SSI SECTOR

EMPLOYMENT IN SSI SECTOR

ANNEXURE II

126


ABBREVIATIONS

CAD Computer Aided Design

CAM Computer AidedManufacturing

CFTI Central Footwear TrainingInstitute

CGFS Credit Guarantee FundScheme

CLCSS Credit Linked Capital SubsidyScheme

CNC Computerized NumericalControl

DC (SSI) Development Commissioner(Small Scale Industries)

EDP EntrepreneurshipDevelopment Programme

FTS Field Testing Station

IDTR Indo-Danish Tool Room

IGTR Indo-German Tool Room

IID Integrated InfrastructuralDevelopment

IIE Indian Institute ofEntrepreneurship

ISO International Organisation forStandardization

LUCC Laghu Udyami Credit Card

MDA Market DevelopmentAssistance

MDP Management DevelopmentProgramme

NEF National Equity Fund

NIESBUD National Institute forEntrepreneurship and SmallBusiness Development

NISIET National Institute of SmallIndustry Extension Training

NSIC National Small IndustriesCorporation Limited.

NTSC National Small IndustriesCorporation Technical ServiceCentre

PPDC Process-cum-ProductDevelopment Centre

RTC Regional Testing Centre

SDP Skill Development Programme

SENET Small Enterprise Informationand Resource Centre Network

SEPTI Small EntrepreneursPromotion and TrainingInstitutes

SIDO Small Industries DevelopmentOrganisation

SME Small and MediumEnterprises

SSI Small Scale Industries

TDMF Technology DevelopmentModernisation Fund

TRC Technology Research Centre

TREAD Trade RelatedEntrepreneurship Assistanceand Development forWomen

TRTC Tool Room and TrainingCentre

VDP Vendor DevelopmentProgramme

WTO World Trade Organisation

UNIT

1 crore 10 million

10 lakh 1 million

1 lakh 100 thousand

Documents

AN OVERVIEW - · PDF fileBusiness Development (NIESBUD) at Noida and Indian Institute of Entrepreneurship (IIE) ... 2.4.2 Functions of the Advisory Committee will be to (i) examine