Industrial Estate: An industrial estate is an attempt to provide on a rental basis good accommodation & basic facilities to a group of small entrepreneurs who would otherwise find it difficult to secure these facilities at reasonable prices. Special facilities are available for development of SSI. These include financial facilities on low rate of interest, transport subsidy on movement of raw materials & finished products, allocation of raw material & availability of development facilities i.e. training, common facility services etc.
- Training Facilities: The Government has increased the number of EDP. Industrial associations would be encouraged to participate in this venture effectively. Women entrepreneurs will receive support through special training programmes.
- De-reservation of Items for SSI: 822 items are still reserved only for production in the small-scale sector. However, it has been observed that out of the reserved items as many as 200 items are either not produced at all or their production is insignificant. Furthermore, out of these 882 items about 600 items are allowed to be imported under OGL, which means that SSI have to face the competition from the multinational corporations & large units abroad.
De-reservation would also help a number of SSI units to upgrade their technology, improve the quality of their produce, expand their scale ofoperation & boost their exports.
The Abaid Hussain Committee has recommended complete reservation of products, presently reserved for SSI.
- Fiscal Incentives:
- Enhancing the excise exemption limit for SSIs from 50 lakhs to Rs. 1 crore.
- Price & purchase preferences to products manufactured by small scale sector in the governmet purchase programme.
- Subsidies: In order to improve their competitive strength in rhe market, the SSIs are highly subsidied.
This helps to keep down the price of the product of such units.
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