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Rediff News  All News  » Business » Govt packs in sops for SSI sector

Govt packs in sops for SSI sector

August 27, 2004 12:46 IST

The government is working on a package of incentives for the small-scale sector to boost self-employment and provide full credit, technological, marketing and infrastructure support.

Officials told Business Standard that details of the package are being worked out by the Ministry of Small-Scale industries and would be forwarded soon to the finance ministry and the Planning Commission for approval.

Prime Minister Manmohan Singh is to inaugrate the fourth SSI National Convention on August 30 and SSI Minister Mahavir Prasad is holding a press briefing this weekend.

The national convention this year marks the golden jubilee of the Small Industries Development Organisation. National awards to outstanding small-scale entrepreuners and banks, which have achieved their credit target to the SSI sector would be given during the convention.

The convention is expected to dwell on issues such as the Credit Guarantee Fund Scheme for the SSI sector, a single comprehensive law for the sector and employment generation.

The ministry of SSI and ARI is reworking the Prime Minister's Rozgar Yojna and is pushing banks to increase the flow of credit under the scheme.

The PMRY is a scheme to provide self-employment to those educated up to class eight and has been in operation since October 1993. The scheme provides credit for setting up industrial or service sector units.

The government is trying to work out ways to improve credit delivery and at the same time ensure that there is a good climate for banks to lend through the scheme, officials said.

In addition to a package for the SSI sector, the ministry of agro and rural industries has also drawn up an action plan for the Khadi and Village Industries Commission.

Officials said that the action plan would seek to address problems relating to marketing, technology upgradtion, quality, old and unfashionable sales outlets and erosion of working capital.
Priti Patnaik in New Delhi