Professional Documents
Culture Documents
Development
Corporations
and
State
Small
Industries
Development
SSIs make effective use of local material resources and human skills
Location
Ownership
Activity
45% Manufacturing
15% Processing
20% Job Work
20% Repairing / Servicing
Investment
Entrepreneurship and SSI are inter-linked. It is in the national interest to teach the subject
Management of SSI to the young generation.
No. of SSI
Employment
Production
Exports
2005
Units (lakh)
123.42
(Lakh Persons)
249.91
(Rs. Crore)
4, 70, 966
(Rs. Crore)
1, 24, 416.56
To evolve a framework for the development and support of the village, tiny and modern
small-scale segment of the small industry sector, various policy decisions have been taken
by the Government of India. These have addressed the basic requirements of units in the
sector by providing assistance through various measures such as credit dispensation,
technology upgradation, technical training, industrial infrastructure support and
entrepreneurship development. With a view to ascertaining the types of industrial units
which required special support, it was considered necessary to develop an appropriate
classificatory definition for SSI units, spelt out under the industries (Development and
Regulation) Act, 1951.
The official definition of SSI was first evolved in 1950 in terms of the size of gross
investment in fixed assets (plant & machinery, land, building, etc.) as well as in terms of
the strength of the workforce in the unit concerned. This criterion underwent several
changes over a period of time. In the late fifties, a shift from a workforce based definition
to an investment based definition was effected. In 1966, the original amount invested in
plant and machinery was adopted as the sole norm for defining a unit as small-scale or
otherwise. Other concepts, namely, ancillary and tiny units were introduced in 1960 and
1977, respectively. Industry related business oriented service enterprises were classified
for the first time as Small Scale Service Enterprises Establishments (SSSEs) in 1985 and
latter in 1991 redefined as Small Scale Service and Business (industry related)
Enterprises (SSSBES).The Government in 1988 defined the term. Women Entrepreneurs
Enterprise indicating 51% equity held by women; the same was modified in 1991. Periodic
revisions in the definition of SSIs as made by the Government of India are furnishes in the
Annexure.1.
The SSI sector in India covers a wide spectrum of industries categorized under small,
ancillary, tiny SSSBEs, women enterprise and cottage segments, ranging from small
artisans / handicraft units on one end to modern production units with significant
investments on the other. This sector has acquired a pre eminent place in the socio
economic development of the country, as it acts as a nursery for the development of
entrepreneurial talent. The sector produces a wide range of about 7500 products.
The term Small Scale Industry evokes different meanings for different agencies that
defines SSIs. The Planning Commission, Government of India, for instance considers the
entire Village and Small Industries Sector (VSI) as the SSI sector. The National Sample
Survey Organization under the Central Satisfaction Organization, Government of India, on
its part, defines the entire industrial sector in terms of Organized and Unrecognized
segments, as well as in terms of industrial enterprises run by households and non
households. The Central Excise Department, on the other hand identifies SSIs on the basis
of the annual turnover of individual units. The Reserve Bank of India (RBI) adopts an
expanded definition of SSI which includes traditional industries as well. The Government
of India has recently redefined as SSI unit by lowering down the upper investment limit
from Rs. 30 million to Rs. 10 million in plant and machinery. As per this definition, the SSI
sector includes under its coverage residual units i.e. all such units that do not fall under the
assistance programmes of any of the Statutory Boards responsible for the development and
promotion of tiny and cottage segments of the SSI sector. The different segments of SSI
have been widely defined as under:
Small Scale Industrial Undertakings
Following the Abid Hussain Committee recommendations, the Government of India, vide
Gazette Notification No. S.O.857 (E) dated December 11, 1997 had raised the ceiling on
investment in plant and machinery for SSI and ancillary undertaking to Rs. 30 million. This
definition of SSI and ancillary has since been revised. As per the Government of India
Notification No. S.O. 1228 (E) dated December 24, 1999, an industrial undertaking in
which the investment in plant and machinery, whether held on ownership terms or on
lease / hire purchase basis does not exceed Rs. 10 million is regarded as a small scale
industrial undertaking.
Ancillary Industrial Undertaking:
An industrial undertaking which is engaged in the manufacture or production of parts,
components, sub assemblies, tooling or intermediates, or the rendering of services is
termed as an ancillary undertaking. The ancillary undertaking is required to supply or
render or propose to supply not less than 50% of its production or services, as the case may
be, to one or more other industrial undertakings. The investment on plant and machinery,
whether held on ownership basis or on lease or on hire purchase, should not exceed Rs.
10 million as in the case of ancillary industrial undertakings.
Tiny Enterprise:
A unit of treated as a tiny enterprise where the investment in plant and machinery does
exceeds Rs. 2.5 million, irrespective of the location of the unit.
Women Entrepreneurs Enterprise:
A women Entrepreneurs Enterprise is termed as an SSI unit/industry related service or
business enterprise, managed by one or more women entrepreneurs in proprietary concerns,
or in which she/they individually or jointly have share capital of not less than 51% as
partners/shareholders/directors of private limited company/members of a co-operative
society.
Small Scale service and Business (Industry Related) Enterprise (SSSBE):
An industry related service/Business enterprise with investment upto Rs. 0.5 million in
fixed assets, excluding land and building, is treated as an SSSBE.
(i) a micro enterprise, where the investment in equipment does not exceed ten
lakh rupees;
(ii) a small enterprise, where the investment in equipment is more than ten lakh
rupees but does not exceed two crore rupees; or
(iii)
Cost of pollution control, research and development, industrial safety devices and
such other items as may be specified, by notification, shall be excluded.
Deciding to go into business: This is the most crucial decision a person has to
take which may mean shunning wage employment and opting for selfemployment. He needs to understand the benefits and risk of entrepreneurship.
Availability of Own Money: No business can be created, with zero capital. The
Own Money concept means the funds available with an entrepreneur from his
own source or family or friends. The size of the units depends on the availability
of Own Money in short term and long term.
Training: The above analysis may reveal glaring deficiencies which are required
to be made up through training. Such training could be for:
a. Developing Skill for entrepreneurship.
b. Developing technical, conceptual and managerial skills.
Product Selection: The next step is to decide what business one should venture
into, the product or range of products that shall be taken up for manufacture and in
what quantity. The level of activity will help in deciding size of business and form
of ownership. Several number of project ideas through environmental scanning
can be short listed. Closely examine each one of these and zero in on to a final
product.
Market Survey: These days it is easy to manufacture an item but difficult to sell.
So it is prudent to survey the market before embarking upon production and ensure
that the product chosen is in sufficient demand and is preferably in the growth
phase of a product life cycle.
Location: The next step is to decide on the place where the unit is to be located.
The place can be hired or owned. The size of plot, covered and open area and
suitability of site has to be decided. Logistics considerations are more important
than emotional considerations.
Machinery and Equipment: Having chosen the technology the machinery and
equipment required for manufacturing has to be decided, suppliers identified and
their costs estimated. Planning well in advance for machinery and equipments,
especially if it has to be procured from outside the town, state or country will
control the project implementation schedule.
Business Plan: After deciding on the form of ownership, location, technology for
manufacturing, machinery and equipment, preparation of feasibility report can be
undertaken. The economic and technical feasibility of the product selected has to
be established through a project report. A project report that may be prepared is
helpful in formulating the financial, production, marketing and management plans,
obtaining finance, shed, power, registration, raw material quoteas etc. The business
plan should indicate the vision of the promoter and short term and long term
aspects of the project implementation.
even machinery suppliers. Facilities are available to SSI for making variety of
technical know-how arrangements including turn-key jobs.
Power Connection: The power requirement should be assessed phase wise. There
are ceiling on the availability of LT power supply based on the location. HT power
supply may mean additional investment in transformer and substation. Most states
need a No Objection Certificate from the concerned Pollution Control Authorities
before the power connection.
Insurance: It is necessary to have adequate insurance for the fixed asset at this
stage and later on for the current assets as well.
Raw Material: The raw materials required may be available indigenously or, may
have to be imported. Government agencies can assist if raw material required are
scarce or imported.
Quality Assurance: Quality Certification like ISO 9000, BIS (earlier ISI), Q
Mark, Agmark, Del-in, etc. depending upon the products should be obtained. If
there is no quality standards specified for the product, the entrepreneur should
evolve his/her own quality control parameters. Quality, after all, ensures long term success.
Monitoring: Periodical monitoring and evaluation not only of markets but also
production, quality and profitability helps in knowing where the firm stands in
comparison to performance envisaged in the business plan. It also identifies
direction of future growth.
(Registration aspects is dealt separately)
Statutory support such as Reservation and the Interest on Delayed Payments Act.
(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law
have incorporated the word SSI in their exemption notifications. Though in many
cases they may define it differently. However, generally the registration certificate
issued by the registering authority is seen as proof of being SSI).
To provide a certificate enabling the units to avail statutory benefits mainly in terms
of protection.
To create nodal centers at the Centre, State and District levels to promote SSI.
Obtain the term loans and working capital from financial institutions/ banks under
priority sector lending.
Obtain various necessary NOCs and clearances from regulatory bodies such as
Pollution Control Board, Labour Regulations etc.
Excise exemptions.
Income Tax exemption and Sales Tax exemption as per State Govt. Policy.
A unit can apply for PRC for any item that does not require industrial license which
means items listed I Schedule III and items not listed in schedule I or schedule
ii of the licensing Exemption Notification. Units employing less than 50 / 100
workers with / without power can apply for registration even for those item
included in schedule II.
Unit applies for PRC in prescribed application form. No. field enquiry is done and
PRC is issued.
PRC is valid for five years. If the entrepreneur is unable to set up the unit in this
period, he can apply afresh at the end of five years period.
Once the unit commences production, it has to apply for permanent registration in
the prescribed form.
The unit has obtained all necessary clearances whether statutory or administrative,
e.g. Drug License under Drug Control Order, NOC from Pollution Control Board,
if required etc.
Unit does not violate any locational restrictions in force, at the time of evaluation.
De Registration: A small Scale Unit can violate the regulations in the following ways
which will make it liable for deregistration:
It starts manufacturing any new item or items that require an industrial license or
other kind of statutory license.
It does not satisfy the condition of being owned, controlled or being a subsidiary of
any other industrial undertaking.
Existing Registered Units shall file the Memorandum within 180 days.
Investment Limit in Plant and Machinery: The Government of India have lowered
the ceiling on investment in plant and machinery for small-scale and ancillary
industrial undertaking from Rs. 300 lakhs to Rs. 100 lakhs with effect from December
24, 1999. The revision has been effected with a view to securing that the ownership
and control of the material resources of the Community are so distributed as to sub
serve the common good, easing the problem of unemployment, and promoting in a
harmonious manner the industrial economy of the country. The investment ceiling for
tiny unit has been retained at Rs.25 lakhs.
2.
of Shri Abid Hussain had considered various aspects pertaining to reservation of items
including quality of SSI products which affected export earnings, import policy
liberalization and related issues. In January 1997, the Abid Hussain Committee
submitted its report to the Government and concluded that reservation policy is
redundant and therefore recommended a total dereservation. The inclusion of over 600
products under OGL fro the purpose of imports per se has partially defeated the
purpose of reservation as these products can now compete with the one produced by
domestic manufacturers. Policy changes in 1997 permitted large-scale units to
manufacture reserved products but with a 50% export obligation. Under the free trade
agreements amongst SAARC countries, produce items reserved for Indian SSI sector
and export them into India. There is a progressive dereservation approach. In the 200405 Budget about 85 items were dereserved.
3.
Reservation of items for exclusive purchase from SSI: Purchases under the
Government Stores Purchase Programme by the Director General of Supplies and
Disposal (DGS&D) are made exclusively from SSI units for specified items known a
reserved list. Prior to 1997 there were 409 items in this list, which has now been
substantially reduced. Secondly, for these items and even for those items which are not
reserved, a purchase price preference of 15%,as against the quotations from large-scale
units or other suppliers is given to the SSI designated as the nodal agency to promote
the marketing of SSI products to the Government under this preferential Purchase
Policy. NSIC enlists SSI under a Single Point Registration Programme (SPRP) to
avoid multiplicity in the registration with various government agencies.
4.
Foreign Direct Investment: To provide access to the Capital market and to encourage
modernization and technological upgradation in SSI sector, equity participation upto
24% of the total shareholding is allowed in the SSI units by other industrial
undertakings including foreign collaborators. Further, those SSI units seeking foreign
equity beyond 24% is considered policy initiative has opened up opportunities for SSI
to expand their investment bases to improve performance.
5.
Incentive Scheme for acquiring ISO 9000 certification: ISO 9000 has become
synonymous with quality. It is the world accepted quality norm without which it many
not be possible to export the goods to the other countries. Small-scale industries are
making substantial contribution in countries exports. In Order to prepare the Small
Scale Industries to face the threat coming in the way of export in future due to ISO
9000 barrier, Office of the DC (SSI) has promoted the schemes to give incentive to
small scale industries acquiring ISO 9000 certification to the extent of the cost subject
to the maximum of Rs.75,000 in each case. The scheme is implemented by SIDBI.
7.
Technology Bureau for Small Enterprises: The Technology Bureau for Small
Enterprises (TBSE) is a joint venture of Small Industries Development Bank of India
(SIDBI) and the Asian Pacific Center for Transfer of Technology (APCTT).
TBSE offers under one roof, assistance to existing and prospective small enterprises in
the sphere of technology accession transfer and funds syndication. The main objective
of the Bureau is speedy access and transfer of technologies. The bureau has a large
computerized database on technology options available in the Asia Pacific region. It
identifies business partners willing to collaborate, brings them face-to-face extends
support to tie-up financial assistance.
The bureau undertakes financial syndication covering term loans, foreign currency,
venture capital, lines of credit, equity assistance and bills finance. It offers package for
the export of technologies as well as SSI projects and products and arranges assistance
through SIDBI and other Development related Financial Institutes apart from
commercial banks.
TBSE provides consultancy services to encourage product excellence; arranges buyerseller meets on a regular basis for specific product groups; undertakes technology
appraisal and documents latest developments in the areas of technology, processes,
export patterns, market opportunities etc.
9.
10. Relaxation under Environmental Laws: The Ministry of Environment Forests have
simplified the consent procedure in respect of small-scale industrial units for obtaining
consent under the Air (Prevention and Control of Pollution) Act, 1981 and Water
(Prevention and Control of Pollution)Act, 1974. To this effect, the Ministry have
issued directions to the Central Pollution Control Board on 12 th September 1992 and
10th May 1993 under clause (a) od Sub-Section 1 of Section 18 of the Water
(Prevention and Control of Pollution) Act, 1974, stating that for the units of smallscale sector except 17 categories which are heavily polluting, the acknowledgement of
the application by the Board would serve the purpose of the consent and the consent
granted shall be valid till 15 years or till such time the industry modifies or changes its
process or any treatment and disposal system or brings into use any new or altered
outlet for discharge of effluent/sewage whichever is earlier. However, the concerned
State Pollution Control Boards/ Committees specified by the Central Government (for
UTs) may conduct random checks or call for information from any unit and make a
formal consent order prescribing conditions etc. as required.
List of Highly Polluting Industries
1. Fertilizer (Nitrogen/ Phosphate)
2. Sugar
3. Cement
provide an ideal avenue for corporate of all the sizes, its special focus on small scale
companies to raise resources from the capital market.
The Exchange provides sophisticated trading mechanism like Bought Out deals,
market making and sponsorship, which makes it very convenient for the small, and
medium sized companies to access the capital market
It is the only exchange-allowing nation wide as well as regional listing for smaller
companies. The minimum requirement of Rs. 30 Lakhs of post issue paid up capital for
a company too list on exchange facilities even small enterprise promoters to set up new
venture or expand their activities.
The Exchange also provides its constituents with the advantage of trading in
innovative financial instruments like debentures, units of mutual funds, bonds and
other corporate papers.
The Exchange uses the state-of the-art technology and trading mechanism to promote
transparent and wide spread transactions across the country.
OTC Exchange of India has a memorandum of Understanding with NASDAQ, USA,
which entails mutual exchange of information, training in various aspects of capital
market and access to the global market.
17. The interest on Delayed Payment Act: The interest on Delayed Payment to SmallScale and Ancillary Industrial Undertaking Act was enacted in 1993. in order to tackle
the problem of settlement of dues from companies, the Act has been amended so that
SSI units are not handicapped by delays in the settlement of their dues from larger
companies. The amended Act has come into force from 10 th August, 1998. the
amended Act provides for:
a. Change in the penal rate of interest from the present 5 percentage points above the
floor rate which was applied hitherto, to 150% of the Prime Lending Rate (PLR)
of SBI;
b. The agreed date of settlement of dues (i.e., any contract between the SSI supplier
and the large-scale buyer) not to exceed 120 days from the date of acceptance of
goods by the large companies;
c. An additional/alternative mechanism of arbitration and conciliation to resolve
disputes between the SSI supplier and the large-scale buyer within the framework
of the Arbitration and Councils with the Director of Industries of the concerned
State Government as Chairman and representatives of Banking/Financial
Institutions, industry associations and persons with knowledge of industry and /or
law a its members to deal with issues/disputes which arise due to
nonpayment/delayed payment of the dues of SSI units/suppliers by large company
customers/buyers.
Reference made to the Council to be decided within ninety days from the
date of reference.
Appellate Court may order payment of a part of the deposit to the supplier
MSE.
B. Marketing Finance
C. Development of Industrial Infrastructure
D. Bills Discounting and Factoring service
E. National Venture Fund for Software and IT Industry
F.
G. Incubation Centers
There are some other promotional measures being offered or monitored by SIDBI. Please
see the details in Chapter No.8
19. Sector Based Incentives: Special incentives are being announced for sunrise sectors
or the high thrust sectors which includes capital subsidy also. It is advisable to search
the website address of the office of the Development Commissioner, SSI
(www.smallindustryindia.com)
Ceiling as % of Fixed
Capital Investment
SSI
MSI / LSI
20
30
20
40
25
50
30
60
35
Number of Years
SSI
06
07
08
09
10
MSI / LSI
05
06
07
08
b. Expansion Units
Existing SSI/MSI/LSI (including IT/BT) units making additional investment to the
extent of 25% or more over the Gross Fixed Capital investment, as on the last date of
the previous financial year, for expansion, diversification or modernization, will also
be eligible to get the Industrial Promotion Subsidy equivalent to 75% of the
incentives admissible for new units. The admissible period for availing the subsidy
will be reduced by one year in the respective category and area.
Explanation The Zero Vat Units will be eligible for getting employment based
incentive in lieu of IPS as proposed for low HDI districts in the form of 75%
reimbursement of expenditure on account of contribution towards Employees State
Insurance (ESI) and Employees Provident Fund (EPF) Scheme for a period of 5 years.
However the quantum of incentives for these units will be limited to 20%, 30%, 40%,
50%, 60% of FCI in B, C, D, D+, No Industry District respectively whichever
is lower.
2. Additional Incentives
The eligible SSI units coming up in Industrial Clusters / Parks to be notified by the
State Government and in Agro-based Industries, Textiles, Auto & Auto components,
Electronic products, Pharmaceuticals and Gems & Jewellery, Services Information
Technology, I.T. enabled services, Biotechnology sectors in C, D, D+ areas only
will be eligible for the IPS applicable to the one step higher incentive category under
clause 1.
3. Special Incentive for Units coming up in Districts low in HDI
The State Government will make special efforts for speedier economic development in
the 10 districts lowest in the State on the Human Development Index as given in the
Table I. It is proposed to offer the following employment based incentives to the units
coming up in these districts.
New units setting up facilities in these notified districts and employing at least 75%
local persons as defined in the Employment of Local Persons Policy will be offered
75% reimbursement of expenditure on account of contribution towards Employees
State Insurance (ESI) and Employees Provident Fund (EPF) Scheme for a period of 5
years. However these benefits will be limited to 25% of FCI. The amount of
reimbursement will be paid annually based on minimum statutory limit subject to the
condition that the unit has paid its contribution towards ESI & EPF on the due dates.
The procedural modalities of giving this employment incentive will be issued by the
Development Commissioner (Industries).
4. Mega Projects
Industrial projects with investment more than Rs.500 crores or generating
employment for more than 1000 persons in A and B areas or investment more than
Rs.250 crores or generating employment for more than 500 persons in rest of
Maharashtra will be termed Mega Projects and would be eligible for customized
package of incentives. The industrial projects coming up in the 10 low HDI districts
mentioned in the Table with investment of more than Rs.100 crore or generating
employment for more than 250 persons would also qualify for customized package of
incentives. The quantum of incentives within the approved limit will be decided by the
High Power Committee under the chairmanship of Chief Secretary, Government of
Maharashtra. The Infrastructure Committee under the chairmanship of the Chief Minister
of the State will have the power to customize and offer special/extra incentives for the
prestigious Mega Projects on a case by case basis.
5. Interest Subsidy
All new eligible units in textile, hosiery, knitwear and readymade garment sector units
in the SSI sector will receive interest subsidy. The Interest Subsidy will be payable only
on the interest actually paid to the Banks and Public Financial Institutions on the term
loan for acquisition of fixed capital assets, equal to the interest payable at 5% per
annum as stated in the table below.
Taluka / Area
Monetary Ceiling
Maximum Period
Classification Limit (Rs. In Lakhs)
In Years
A
B
C
10
04
D
20
05
D+
25
06
NID
35
07
6. Exemption from Electricity Duty
Eligible new units in C, D, and D+ areas and No-Industry District(s) will be exempted
from payment of Electricity Duty for a period of 15 years. In other parts of the State,
100% Export Oriented Units (EOUs), Information Technology (IT) and Bio-Technology
(BT) units will also be exempted from payment of Duty for a period of 10 years.
7. Waiver of Stamp Duty
The 100% exemption from Stamp duty will be extended up to 31st March 2011 in C, D,
D+ Talukas and No Industry Districts. However, in A and B areas, stamp duty exemption
would be available as follows:
BT and IT units in public IT Parks : 100%
BT and IT units in private IT Parks : 75%
Mega Projects : 50%
8. Exemption of payment of Royalties/NA charges
Units in MIDC areas/Cooperative Industrial Estates will be exempted from payment of
Non Agricultural Assessment Charges. Royalty payable on minor minerals extracted
during construction under taken in MIDC area as well as in Cooperative Industrial
Estates will be 100% exempted.
9. Royalty Refund
All eligible units, (new as well as units undertaking expansion) in Vidarbha region will
be eligible for refund of royalty paid on purchase of minerals from mine owners within
the State of Maharashtra for a period of five years from commencement of production.
10. Refund of Octroi/Entry Tax in lieu of Octroi
Octroi based incentive will continue to be offered by way of refund of Octroi Duty/Entry
Tax etc. An eligible unit, after it goes into commercial production, will be entitled to
Refund of octroi duty, or any entry tax or account based cess levied by the municipal
bodies in lieu of octroi and paid to the local authority on import of all the items required
by the Eligible Unit. This incentive will be admissible in the form of a grant restricted to
100% of the admissible Fixed Capital Investment of the Eligible Unit for a period of
5/7/9/12/15 years respectively in the B/C/D/D+/NID areas.
11. Octroi Exemption on Raw Materials
Several manufacturing units in the Municipal Corporation limits are facing acute
problem on account of high incidence of octroi. Some units have already shifted while
others are planning to relocate even outside the State. This migration would result in
rendering a large number of employed persons jobless. It is, therefore, proposed to
exempt 100% the octroi payable on all raw materials used by units in Municipal
Corporation areas for manufacture of products to be exported out of the limits of the
Municipal Corporations. The burden of such exemption will have to be borne by the
concerned Municipal Corporations.
12. Modification in Seed Money Scheme
Under the Seed Money Scheme, the educated unemployed youths are getting seed
money assistance between 10% to 22.5% of the project cost limited to a maximum of
Rs.10 lakhs for starting self-ventures from the Directorate of Industries as margin
money. The seed money assistance carries interest @ 10% p.a. with a rebate of 3% for
prompt payment. At present penal interest @14% is charged on delay in payment of
the seed money dues. It is proposed to carry out the following modifications in the Seed
Money Scheme:
Quantum of Seed Money Assistance : Maximum amount Rs.25 lakhs
Interest rate : 6%
Penal rate : 1%
13. Strengthening the SME Sector
Looking at the impressive growth which the SME sector has registered in the last few
years, especially in the field of light engineering, textiles, biotech and IT, the State
Government will give special focus on the SME sector to achieve its objective of high
growth with greater employment opportunities. The Government will, therefore, initiate
measures to address the challenges faced by the SME sector in the areas of availability
of cheap and timely finance, technology ugradation, upgradation of skill sets of those
employed in this sector and marketing. The State will also take all necessary measures
to complement the initiatives proposed by the Central Government in its Small &
Medium Enterprises Bill, including setting up of a special institution for the SMEs. It
will also provide the following incentives to promote quality competitiveness, research
and development and technology upgradation
5% subsidy on capital equipment for technology up gradation limited to Rs.25 Lakhs.
50% subsidy on the expenses incurred for quality certification limited to Rs.1 Lakh.
Changes in the Macro Business Environment are reflected in the Union Budget.
Announcement of a comprehensive policy package for SSI and tiny sector by the Prime
Minister on 30th August 2000 reflected the changes in the macro environment. Important
fall out were:
SSI exemption limit for excise duty raised from Rs. 50 lakhs to Rs. 1 crore.
Capital Subsidy of 12 % fro investment in Technology in select sectors.
Group set up to recommend streamlining of Inspections.
Continuation of Scheme of granting subsidy for opting ISO 9000 Certification.
In the National Equity Fund Scheme, the project cost limit revised from Rs. 25 lakhs to
Rs. 50 lakhs.
The eligibility limit for coverage under the Credit Guarantee Scheme enhanced to Rs.
25 lakhs.
Self-certification to be encouraged in lieu of inspection.
The Integrated Infrastructure Development (ID) Scheme to progressively cover all
areas in the country with 50 % reservation for rural areas.
Setting up of Incubation Centers in sunrise industries.
Overall budget strategy of Union Budget 2002-03 is quoted:
In my last budget I had laid out a comprehensive agenda of the second-generation
economic reforms. I had also deepened tax reforms aimed at providing a modern tax
regime. My aim this year is to consolidate and implement these policies at all levels. I
propose to take the process further at the State level through a strategy of reform linked
public funding.
The broad strategy of the budget, therefore, is to:
Continue the emphasis on agriculture and food economy reforms
Enhance public and private investment in infrastructure
Strengthen the financial sector and capital markets
Deepen structural reforms and regenerate industrial growth
Provide social security to the poor
Consolidate tax reforms and continue fiscal adjustment at both the central and state
levels
Specifically related to SSI, the proposals announced were as under:
Small Scale Industries are now subject to increasing competition with the competition
of trade liberalization. A new approach to the promotion of small-scale industries
therefore, has already been adopted.
Adequate credit flow is essential for the small-scale sector. The net bank credit
outstanding to small scale industries increased from Rs. 45,890 crore on March 31,
2002 to Rs. 48,445 crore on March 31,2003. In order to further increase the flow of
credit:
o
The limit for composite loans has been increased from Rs. 2 lakh to Rs. 5 lakh
391 specialised branches of public sector banks have been opened for smallscale industries as September 30,2001.
The exemption limit for collateral security has been increased from Rs. 25,000
to Rs. 5 lakh. The project cost limit under the National Equity Fund has been
from Rs. 25 lakh to Rs. 50 lakh
The extension of credit to SSI has already been facilitated through the Credit
Gaurantee Scheme and Credit Lined Capital Subsidy Scheme for Technology
Upgradation
Encouraged by the Kisan Credit Card Scheme, public sector bans have now
decided to introduce a scheme called Laghu Udyami Credit Card (LUCC)
Scheme for providing simplified and borrower friendly credit facilities to
small businessmen, retail traders, artisans and small entrepreneurs,
professional and other self employed persons, including those in the tiny
sector.
Members will recall that last year I had announced the dereservation of 14 items in the
footwear, leather goods and toy sectors. The Government has been engaged in
discussions with the stake holds in respect of certain other items in the reserved list.
Over 50 items of knitwear, certain agricultural implements, auto components, some
chemicals and drugs, and others will now be dereserved.
TAX PROPOSALS
The Excise duty exemption scheme for the small-scale sector is applicable to granite.
In view of the fact that it is not available to marble, I propose to withdraw this
exemption from granite also.
The justification of taxing more services does not require any elaboration. This year, I
propose to extend the service tax to the following services
o Life Insurance, including insurance auxiliary services relating to life insurance
o Inland cargo handling
o Storage and warehousing services (except for agriculture produce and cold
storages)
o Event Management
o Rail travel agents
o Health Clubs and Fitness centers
o Beauty Parlours
o Fashion Designers
o Cable Operators
o Dry Cleaning service
The small-scale industry sector has been making an important contribution to
economic growth, and deserves continued support. In order to enable the Small
Industries Development Bank of India (SIDBI) to augment its resources and provide
cheaper credit to the small scale sector, I propose to allow capital gains exemption
under section 54EC of the Income-tax Act to amounts invested in bonds issued by
SIDBI.
A deduction of 50% of the profits earned by units setting up and operating large
conversion centers will be allowed by 5 years under section 80 IB.
Union Budget 2003-04 identified 5 objectives (Panch Priorities):
1.
Poverty education; addressing the life time concerns of our citizens, covering health,
housing, education and employment;
2.
Infrastructure Development
3.
4.
5.
help further investment in the SSI sector, Government will examine the question of a
limited partnership act.
Union Budget 2004-05: SSI & Entrepreneurship
Economic Survey 2003-04 Mentions: Among the other factors that can help in boosting
industry is the removal of the remaining items from the list reserved for small-scale
industry. Small and Medium Scale enterprises are critical for industrial development, for
they provide the cradle that nurtures the big businesses of tomorrow. They choose the
appropriate product designs and techniques, be it labour or capital intensive, and they have
flexible management capacities to respond to fast-changing market conditions. The
progress in gradually dismantling the reservation policy observed over recent years should
continue and the policy of protection through reservation should be replaced by promotion
as the cornerstone of future policy. Adequate supply of credit services, technology
assistance and infrastructure, low transaction costs are aspects upon which this promotion
policy should focus.
National Common Minimum Programme: The Guiding Light
The United Progressive Alliance (UPA) has given to itself, and to the people of this
country, a Common Minimum Programme. The government has since adopted it as the
National Common Minimum Programme (NCPM). The programme spells out seven clear
economic objectives:
1.
2.
3.
4.
Assuring 100 days employment to the bread-winner in each family at the minimum
wage
5.
6.
7.
Agri-business
The Small Farmers Agri-business Consortium (SFAC) was set up in 1994. Although SFAC
started functioning from 1998, its corpus stands at a meager Rs. 10.95 crore. SFAC should
provide venture capital to projects and must be run, preferably by a banker, on purely
business lines. The M S Swaminathan Research Foundation has identified 13 districts
where there is a huge potential for agri-businesses and an appetite for investment of nearly
Rs. 170 crore. The ministry of agriculture has initiated action to improve the governance of
SFAC, including the appointment of a banker as the chief executive. It is proposed to
provide the necessary additional capital that SFAC will require to aggressively promote
agri-businesses.
Small Scale Industry
Small-scale industry is and must be regarded as, an engine of growth. At the same time SSI
units must also be given the space to grow into medium enterprises. World over, policies
are devised to meet the requirements of small and medium enterprises (SME). Keeping in
mind the twin objectives, the ministry of small-scale industry has identified 85 items that
can be safely taken out of the reserved list. Furthermore, it is felt that technology
upgradation of SSI units is the most urgent requirement to do business in a competitive
environment. According to reviewed Capital Subsidy scheme, the proposal is to raise the
ceiling for loans under the scheme from Rs 40 lakh to Rs. 1 crore. The rate of subsidy will
also be raised from 12 % to 15 %. The scope of the scheme will be enlarged by adding
more sub-sectors and technologies eligible for assistance. SSI units will be encouraged to
obtain credit rating. With these measures it is expected that many more SSI units will
benefit from the restructured scheme. A provision of Rs. 135.24 crore has been made for
Promotion of SSI Schemes, and within that amount funds will be found for the Capital
Subsidy Scheme.
Regeneration of Traditional Industries
Some of our traditional industries, namely coir, handloom, handicraft, sericulture, leather,
pottery and other cottage industries not only contain great potential for growth and exports,
but are integral for maintenance of our cultural heritage. Accordingly, a fund for the
Regeneration of Traditional Industries, with an initial allocation of Rs. 100 crore will be set
up.
SSI turnover eligibility limit for availing General SSI Excise Exemption enhanced
from Rs. 3 crores to 4 crores. Further SSI units will now have only two options: either
full exemption on the first clearance of Rs. 1 crore or normal duty on the first
clearance of Rs. 1 crore with CENVAT credit.
Service Tax on business auxiliary service has been exempted for person producing /
processing goods, from the inputs received from a manufacture and sending the
resultant product to the same manufacture for further manufacture of final products,
which are cleared on payment of excise duty.
The Small and Medium Enterprises Development Bill to be introduced during the
current session of the Parliament.
The target for Credit Linking of Self-Help Groups (SHGs) enhanced as well as
enhanced from 2 lakhs SHGs to 2.5 lakhs SHGs.
Micro Finance Institutions (MFIs), which seeks to provide Small Scale Credit and
other financial service to low income households and small informal business to be
promoted in a big way.
RBI to open a window to enable qualified NGOs engaged in micro finance activities
to use the External Commercial Borrowing (ECB) window.
In order to revive the manufacturing sector, particularly small and medium enterprises
and to unable them to adjust to the competitive pressure caused by the liberalization
and modernization of tariff rates a new scheme called Manufacturing Competitive
Programme to be launched to strengthen operations and sharpen competitiveness. The
design of the scheme will be worked out by the National Manufacturing
Competitiveness Council.
Peak rate of custom duty for non agriculture products reduced from 20% to 15%.
The custom duty on seven specified machinery for leather and footwear industry
reduced from 15% to 10%.
For primary and secondary metals customs duty reduced from 15% to 10%.
Industrial raw materials such as catalysts, refractory raw materials, basic plastic
materials, molasses and industrial ethyl alcohol key inputs to manufacture, will
have reduced custom duty of 10%. On lead, custom duty is reduced to 10%.
Excise duty reduced from 16% to 12% on matches made in mechanized and semi
mechanized sector.
Excise duty on Iron & Steel restored to the normal level of 16%.
Central Government shall constitute a National Board for Micro, Small and
Medium Enterprises for promotion and development. The Board shall also review
policies and programmes to enhance the competitiveness of such enterprises
upgradation,
employment
generation
and
enhanced
Technological upgradation.
Marketing assistance
Infrastructure facilities
Cluster development
Credit
The policies and practices in respect of credit to the MSMEs shall be progressive
and such as may be specified in the guidelines or instructions issued by the Reserve
Bank of India with the aims of:
Procurement Policies
Valid only for Micro and Small Enterprises and not for Medium Enterprises.
STATE GOVERNMENT
SSIs
SSIB
SIDO
SISI
PPDC
1.
2.
3.
4.
5.
DC(SSI)
DIC
SFC
SSID
TCO
OTHERS
1. Industry
Associations
2. Non Governmental
Organizations
TECHNICAL
TRAINING
TCO
PPDC
RTC
FTS
TR
TECHNOLOGY UPGRADATION
INDUSTRIAL INPUTS
NSIC
SIDO
SISI
TBSE
NSIC
SSIDC
DIC
INDUSTRIAL
INFRASTRUCTURE
SSIs
MARKETING
SIDO
NSIC
SSIDC
SISI
EPC
SSIDC
SIDC
HUDCO
SEB
ENTREPRENEURSHIP
DEVELOPMENT
SIDO
EDII
NIESBUD
EDI
SISI
DIC
EDII
EDI
EPC
FTS
HUDCO
NABARD
NIESBUD
NSIC
PPDC
RRB
RTC
SEB
SFC
SIDBI
SIDC
SIDO
SIIC
SISI
SSIB
SSIDC
TBSE
TCO
TR
Tool Rooms
Advising the Government in policy formulation for the promotion and development of
SSI's.
Providing techno-economic and managerial consultancy, common facilities and
extension services to small-scale units.
Providing facilities for technology up gradation, modernization, quality improvement
and infrastructure.
Human Resource Development through training and skill up gradation.
Providing economic information services.
Maintaining a close liaison with the Central Ministries, Planning Commission, State
Governments, Financial Institutions and other Organizations concerned with
development
of SSI's.
Evolving and coordinating Policies and Programmes for development of SSI's and
ancillaries to large and medium scale industries.
Monitoring of PMRY Scheme.
Export marketing is encouraged among small scale units who can gradually acquire
capability to independently handle the export of their products. Exports of the products
as well as projects is undertaken.
Allotment scarce raw material
Warehousing facilities
Marketing activities include arrangement of Buyer Seller meets, Trade Fairs both National
and International etc.
Further details on NSIC can be obtained from:
National Small Industries Corporation,
Prestige Chambers, 3rd Floor, Kalyan Street,
Madjid Bunder, Mumbai 400 009.
Phone no.:- 2374 0272, 2374 0268, 2371 7725.
E-mail: nsicmum@bom5.vsnl.net.in.
Technology Development and Modernization Fund (TDMF) Scheme (both direct and
indirect assistance)
ISO 9000Scheme (both direct and indirect assistance)
Technology Upgradation Fund Scheme for Textile Industry (both direct and indirect
assistance)
Tannery Modernization Fund Scheme (both direct and indirect assistance)
Over the years, SIDBI has widened its horizon and entered into newer areas with a view to
facilitating the growth of the SSI sector in the years to come. Apart from traditional
security based project financing approach of Development Financing Institutions, SIDBI
commenced providing assistance in the form of venture capital, micro credit, marketing
finance, export credit, etc. through specialized departments/outfits to accord focused
attention to the specific requirements of the sector.
SIDBI co-promoted SBI Factors and Commercial Services Limited, Canbank Factors
Limited, IDBI Bank Limited and North Eastern Development Finance Corporation
Limited. The Bank is also one of the founder members of the Indian Institute
Entrepreneurship, Guwahati.
During 1998-99, SIDBI has launched Rs.100 crore SIDBI Foundation for Micro Credit for
up scaling micro finance activities and for creating a national network of strong, viable and
sustainable micro finance institutions (MFIs) from formal and informal sector. This
initiative gained world-wide recognition when SIDBI was awarded coveted Asian Banking
Award99 in the Development Finance Product category. The Bank is the first institution to
launch dedicated venture capital funds catering to the requirements of high growth sectors
such as information technology and in collaboration with Central and State Governments.
In order to pay specialized services and focused attention, separate subsidiaries viz. SIDBI
Venture Capital Limited and SIDBI Trustee Company Limited were set up by the Bank.
Refer the table below:
The strategic business interventions were aimed at improving the flow of credit to small
scale sector by broad-basing certain schemes in tune with the changing requirements of the
sector. A number of steps aimed at enhancing the scale of operations under direct finance
schemes have been initiated, which are likely to yield results in future. Besides, initiatives
have been taken to revitalize the functioning of State Financial Corporations to facilitate
their meeting emerging needs of the SSI sector. Emphasis was laid on liberalizing the
schemes of assistance while simplifying the systems and procedures so as to make them
market friendly and customer oriented.
SEAF India SME Fund
SIDBI entered into Memorandum of understanding with Small Enterprise Assistance Funds
(SEAF) of United States of America. The Bank has, in-principle, agreed to contribute Rs.
25 crore to the initial corpus of the proposed SEAF India SME Fund of US$ 40 million.
The Fund would be utilized towards equity and equity related investments in small and
medium enterprises (SMEs) in India.
Micro Ventures Innovation Fund
Setting up of a micro venture capital fund for small innovations, in collaboration with the
National Innovation Foundation (NIF). A corpus of Rs. 500 lakhs is build up.
Tie-up with SEDF
Memorandum of understanding focusing on economic development of North Eastern
Region of India was signed between SIDBI and South Asian Enterprise Development
Facility (SEDF), an agency established by the World Bank and International Finance
Corporation. Two sub-sectors viz. food and fruit processing and silk have been identified
for focused attention in the North Eastern Region.
Resource Support involving Two Tier Credit Dispensation
SIDBI has been endeavouring to expand linkages with Public Financial Institutions (PFIs)
for supplementing the existing partnership with Primary Lending Institutions. Towards this
end, the Bank had approach Government of India for specific authorization to consider
financial assistance by way of resource support involving two-tier credit dispensation.
Technology Development and Modernization Fund Scheme
Technology Development and Modernization Fund (TDMF) Scheme was introduced by
SIDBI in April 1995 for a period of 5 years. The scheme was reviewed and it has been
decided to continue it upto March31, 2005. Further the scope of the scheme has been
enlarged to cover such service sector projects that are eligible for assistance from SIDBI
like hospitals, nursing homes and tourism related activities on a selective basis.
Service Sector
In the context of the important role played by entertainment industry in the small scale
sector, SIDBI included establishing studios for making/producing films/software for
television, inter alia, for letting out the facilities to other producers on rent /fee basis, as
eligible activities for direct assistance from Bank.
Revision in Minimum Term Loan for Direct Assistance
The Bank reduced the minimum loan limit for direct assistance from SIDBI under Project
Finance Scheme (PFS) and Equipment Finance Scheme (EFS). Accordingly, the revised
limits for PFS and EFS are Rs. 50 lakhs.
Export Credit
SIDBI has been providing export credit to SSI exporters and export/Trading Houses
sourcing their requirements from SSI units both in rupees and foreign currency. In addition
to direct export credit, special emphasis was laid during the year on providing Lines of
Credit in foreign currency to commercial banks and Factoring Companies for channelising
resources for the benefit of SSI Sector.
Refinance Scheme for Credit Linked Capital Linked Capital Subsidy Scheme fro
Technology Upgradation of the Small Scale Industries
As per decisions taken by the Governing and Technology Approval Board (GTAB), which
monitors the scheme, certain changes as well as additional features have been incorporated
in the scheme. Accordingly, the PLIs would henceforth release the entire subsidy amount to
the beneficiary units if the loan is disbursed in more than one installment, 50% of the
eligible subsidy may be released with the first installment and balance 50% along with the
last installment. Existing SSI units which are likely to graduate to medium scale on account
of additional loan will also now be eligible for assistance under the scheme.
Refinance Scheme-Increase in Exemption Limit fro Collaterals
Pursuant to RBI guidelines to increase the limit of dispensation of collateral requirement
for loans from existing Rs. 5 lakh to Rs. 15 lakh on the basis of good track record of the
units, the Bank has decided to extend this benefit to all SSI units under the Refinance
Scheme.
Reduction in interest rate on past loans
In view of the general decline in the interest rates and requests made by borrowers to
reduce interest rates in respect of loans contracted at higher rates in the past, a rebate
scheme was introduced by SIDBI in the previous year for loans carrying a rate higher than
16.5 % per annum. With further reduction in interest rates during the year under review, the
facility was extended in March 2003 to loans carrying interest rates of more than 15% per
annum.
Based on the recommendation of a Working Group headed by Shri S.S. Kohli, the then
Chairman, Indian Bank Association, RBI has issued fresh guidelines for rehabilitation of
sick SSI units, which, inter alia, include revision in definition of sick SSI unit. Accordingly,
this new definition has been adopted by SIDBI for purpose of Banks assistance and the
extant guidelines regarding grant of reliefs /concessions to potentially viable sick SSI units
under the rehabilitation package have been reviewed and further liberalized.
Guidelines to Borrowers
In continuation of ongoing efforts towards building better customer relationship and
educating its borrowers, the Bank has brought out a booklet titled Guidelines to the
Borrower enumerating the formalities to be completed by them for availing the term loan
sanctioned by SIDBI. The booklet is given to borrowers after an in-principle decision is
taken to consider the proposal so as to aid speedy documentation and creation of security.
Recovery Measures
During the year under review, detailed guidelines were issued for rehabilitation of
potentially viable sick assisted SSI units /concerns, including modification in the existing
guidelines.
WTO Impact Assessment Studies
16 product groups have been identified within small-scale sector for assessing the impact of
WTO on their competitiveness. The studies on six sub-sectors viz. Gems & Jewellery,
Leather and leather products, Dyes and dyes intermediates, Drug & Pharmaceuticals,
Textiles including Readymade Garments and Toys have been completed. Summarized
versions of these Reports were distributed amongst various stakeholders. In the second
phase, SIDBI has initiated the studies on three more sub-sectors, viz. Food processing,
Biotechnology and Bicycle parts.
Prepayment of Outstanding under Refinance
To enable SFCs reduce their cost of borrowings, the Bank decided to accept prepayment of
outstanding refinance, carrying interest at 13.5% per annum and above, without premium.
This facility, which was available upto March31, 2003, was also provided to State
Industrial Development Corporations (SIDCs) and Twin Function Industrial Development
Corporations (TFIDCs). The Bank also decided to accept prepayment of refinance, carrying
interest of 13% per annum from the state level institutions at such premium as may be
mutually agreed upon.
Interest Rate Structure
SIDBI effected downward revision in it Prime Lending Rates (PLRs) by 50 basis points
w.e.f. December 12, 2002. Accordingly, the Long Term PLR (for loans of maturity more
than 3 years), Medium Term PLR (for loans of maturity between 1 and 3 years) and short
Term PLR (loans upto 1 year maturity) have been reduced to 12%, 11.75% and 11.25% per
annum, respectively. The corresponding reduction in interest rates has been effected across
the board under various refinance and direct assistance schemes including products offering
assistance at sub-PLR rates. The existing score chart system for direct assistance schemes
was also liberalized so as to offer more competitive rates to small scale units obtaining
direct loans from SIDBI.
DEVELOPMENT AND SUPPORT SERVICES
Rural Industries Programme
The Rural Industries Programme (RIP) of the Bank basically designed to provide impetus
to rural development by creating sustainable industrial ad service enterprises in rural areas,
leading to higher employment generation and effective utilization of local skills and
resources. Considering its sizeable benefits, the Bank continued its thrust on upscaling and
geographical expansion of RIPs.
The Programme is designed to improve the quality of the product by introducing new tools
and processes, to reduce raw material wastage, and to impart skill development training to
artisans in the cluster.
Mahila Vikas Nidhi
The Mahila Vikas Nidhi (MVN) provides a developmental window through which the
Bank aims at bringing about economic empowerment of women by facilitating the creation
of appropriate infrastructure. During the year under review, assistance under MVN was
extended to Helping Hands, BHEL Ladies Welfare Society, Bhopal for settingup/establishing a mini offset printing press for providing training in the field of off-set
printing, computer designing, etc.
Entrepreneurship Development Programme
The Banks Entrepreneurship Development Programmes (EDPs) emphasis on promotion of
enterprises, especially in rural areas targeting less privileged sections of the society. During
2002-03, the Bank supported 128 EDPs taking the cumulative number of EDPs to 1709
comprising 779 programmes for rural youth, 331 fro women and 599 fro other groups.
These programmes are conducted through well-trained NGOs and specialized agencies, the
major ones being EDII, Ahmedabad and Rural Development and Self Employment
Training Institute (RUDSETI), Ujire, Karnataka. Besides, the Bank continued to lend
capacity building support to conducting agencies by way of trainers training, NGO-banker
interface, financial management programmes etc.
Human Resource Development
The Human Resource Development intervention of the Bank for the benefit of SSI sector is
undertaken through two structured mechanisms
(i)
The Small Industries Management Programme (SIMAP) which targets educated
unemployed as well as industry-sponsored candidates with the Overall objective of
providing competent managers to SSI sector
(ii) The Skill-cum-Technology Upgradation Programme (STUP), which aims at
enhancing technology profile of SSI units.
Range of Services
Technology Information: The Bureau has a large computerized database on technology
options available from different countries. It gives the user updated information on sources
of technologies and means of accessing them. Also background information on
technology-seeking enterprises is maintained and made available to interested technology
suppliers.
Match Making: TBSE identifies business partners willing to collaborate, brings them
face to face and extends support to tie up financial assistance and other requirements for
transfer of technology and joint ventures. Collaborating partners are further assisted in
drafting agreements.
Finance Syndication: Depending on the cost of project, nature and quantum of assistance
required, the Bureau undertakes finance syndication through SIDBI covering term loans,
foreign currency, venture capital, letter of credit; equity assistance; and on selective basis
interest-free loan to meet initial expenditure in the pre-technology absorption stage.
Support Services: It arranges consultancy services, visits of overseas experts for in-plant
counseling; coordinates buyer-seller meets for specific product / process technologies; and
represents the business interests of small enterprises in international events.
Further details on TBSE can be obtained from:
Technology Bureau for Small Enterprises,
APCTT Building, Qutab Institutional Area,
P.O.Box 4575, Off New Mehrauli Road,
New Delhi 110 016.
Ph.:- +91-11-6864501, 6856276, 6966521.
Fax:- +91-11-6856274.
E-mail:- tbsc@apctt.org.
URL:- www.techsmall.com.
MIDC was developed more than 222 industrial estates across the state, spread over an area
of 52,223 hectares of land. The cumulative fixed investment made by the cooperation is
around Rs. 2,552 crores providing quality infrastructure, both social and industrial has been
the hall mark of the MIDCs mission. There are one or more industrial estates developed by
MIDC in each revenue district of Maharashtra. The category of plots is Industrial,
Commercial, Amenities, Residential and Under Sheds. Its main office is located at
Mahakali Caves Road, Andheri (East), Mumbai 400093.
Allotment Procedure of Plots:
Various MIDC officers have been empowered to allot the plot depending upon the size and
location.
The entrepreneur has to apply for a plot of land in the prescribed application from and
enclose a cover letter, a project profile, block plan of proposed construction and required
processing fee (which ranges from Rs. 300 /- to Rs. 5050 /- ). The allotment committee
scrutinizes the proposal and then offer letter is issued normally within 15 days. As a next
step, the promoter has to submit an application for allotment in the prescribed form along
with the Earnest Money Deposit (50% of the total premium amount). Within 30 days the
allotee has to pay the balance amount and execute the Agreement to lease. The plot can
be mortgaged for getting the financial assistance from banks or financial institution subject
to the consent from MIDC and a tripartite agreement is entered into . the plot is to be
utilized as consent as per the clauses of the agreement is entered into . The building
completion certificate (B.C.C.) is to be obtained from the planning authority and finally the
allottee is allowed to use the built premises. The final lease is to be executed for a period of
95 years after completing the above -mentioned formalities. The ground rent is a nominal
amount of Rs. 1 per plot for a calendar year. The plot is not allowed to be transferred or
disposed without prior written consent from MIDC. The transfer rule are framed and
amended from time to time.
2.
3. Import-Export Assistance: SSI can import raw material from particular producer through
corporation. Imported goods / material can keep in corporations godown or custom bonded
as he wishes. After the payment goods can distributed accordingly to SSI. It is necessary
to customize goods in certain period under this scheme.
4.Warehousing on commercial basis: Storage and handling raw material handling,
equipments to assist SSIs for public undertaking and other producers.
5. Handicraft / Handloom / Exhibitions: Provide shops to Handicraft/handloom
industries/skill workers/artists via exhibitions, media and marketing.
6. Paithani Sari: Production and marketing for paithani saris (Pride of Maharashtra).
Further details on MSSIDC can be obtained from:
and/or collateral security may also be insisted depending upon nature of assets & risk
perception.
Repayment Period
Maximum 8 years, Moratorium up to 2 years from the date of first disbursement during
which only interest payment commences. For certain schemes shorter repayment period is
prescribed.
Further details on MSFC can be obtained from:
New Excelsior Bldg., A.K. Nayak Marg, Fort, Mumbai - 400 001 (Te;. 2077711-12,
2077786-87; Fax 2070113) Regional Offices are located at Amravati, Aurangabad,
Kolhapur, Mumbai Konkan, Nagpur, Nashik, Pune, Thane and Panaji (Goa).