Policy :

        Create a sound policy environment to help the sector cope with the emerging 

        challenges of globalisation. Measures to include :-

• Constitution of state level advisory boards.

• Separate policy for Tiny and Micro enterprises.

• Higher investment limit for ancillary units.

• Special dispensation for sectors with high export potential.

• Special thrust on modernisation and technology upgradation of existing units.

• Focus of Reservation policy on enhancement of competitiveness.

• Special package for promotion and development of small and village enterprises in North-eastern and Hill regions.

Foreign Direct Investment :

        Encourage FDI as a means to infuse additional resources, technology and modern 

        management practices with a view to making the sector internationally competitive. 

        Measures to include :-

• Enhancement in the limit of foreign equity participation, subject to management control vesting with Indian shareholders.

• Placement of Foreign Direct Investment in SSI sector, under Automatic Route within the enhanced equity cap.

Industrial Legislation :

        Simplify, Immediate measures to include :-

• High powered Committee for recommending single comprehensive legislation for SSI units.

• Simplification of inspection procedures based on self declaration and post audit.

• Review Coir-Board Act and KVIC Act in the context of emerging challenges.

Administrative Setup :

        Redefining the role of the existing machinery to make it more responsive. Measures 

        to include :-

• High powered Committee to recommend the most appropriate organisational structure for SIDO and SSIs.

• Mechanism for participation of SSI Associations and NGOs in the Small and Village Enterprises Development Programmes.

Credit :

        Strengthen credit delivery system through :

• Credit Gaurantee Scheme

• Earmarking flow of bank credit to micro, tiny and small enterprises.

• Scheme for credit rating of small scale units.

• Exploring possibilities of securitisation of gauranteed loans.

• Exploring possiblities of strengthening viable State Financial Corporations.

• Promoting Venture Capital Funds and Factoring services, exclusively for small scale sector.

Delayed Payments :

         Facilitate timely payment through :-

• Mandatory schedule in audited balance sheets for reflecting interest accrued under Delayed Payments Act.

• Special Mechanism, including Industry facilitation Councils at state level, for settlement of disputes regarding delayed payments.

Rehabilitation of Sick Units :

        Put in place an appropriate policy framework for addressing the problem of industrial 

        sickness through :

• Strengthening of State Level Inter- Institutional Committee (SLIC) for timely identification and rehabilitation if sick units.

• Exploring the possibility of introducing statutory provision for the revival of viable sick units.

• Exploring the possibility of setting up of Debt Recovery Tribunals for facilitating recovery of SSI dues of commercial banks and financial institutions.

Technology Development :

        Modernise small scale enterprises through a multipronged approach, interalia, 

        including :

• National Modernisation plans for select sectors having high export potential.

• National plan for technology exchanges.

• High powered committee to recommend linkages between R&D institutions, training institutions, technology banks and user groups.

• Expand the scope and coverage of Technology Development and Modernisation Fund Scheme.

• Introduce Standards for Testing.

• Efforts to introduce Utility Patent Protection for small inovations.

Marketing :

        Extend comprehensive marketing support through :

• Project Sub-contracting Promotion policy.

• Vendor Development Programme for linkages between small, medium and large industry.

• Thrust on Rural marketing.

• Comprehensive policy for investment marketing brand promotion and overseas market access.

Fiscal Regime :

        Create an appropriate fiscal environment through :

• Rationalisation of taxes and tariffs for small scale industries.

• Rationalisation of subsidies to make them WTO compatible.

• Organise WTO sesitisation programmes for small scale industries.

Village Industries :

        Focus through :

• Strengthening Prime Minister’s Rozgar Yojna and Rural Employment Generation Programme.

• Strengthening National Rural Industries Programme.

• Strengthening Rural Artisan Complexes.

• Modernisation and capacity building in Village industries.

• Special thrust on small agro-industries.

Infrastructure :

        Bridge critical infrastructure gaps through :

• Strengthening National Cluster Development Programme, including identification of critical infrastructure gaps on cluster basis.

• Functional Industrial parks.

Entrepreneurship Development :

         Strengthening National Entrepreneurship Development Board :

• Comprehensive plan for promotion of rural enterpreneurship.

• Close linkages with premier institutions, engaged in management and entrepreneurial training.

• Adoption of "turn-key concept" for entrepreneurship training.

International Co-operation :

         Strengthen bilateral and international cooperation through :

• Separate cell in the Ministry for International Cooperation and joint ventures.

• Sector specific development programmes with the assistance of UNIDO and UNDP.

• SME Partenariat with various international and multilateral organisations.

Information Technology :

        Strengthen IT support :

• Master Website on Small Industries comprising information on policies and procedures, technology, products, etc., with hyperlinks to states and countries.

• Comprehensive plan for preparing Small Scale Industries for e-commerce, with appropriate electronic infrastructure support.

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