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Central Government provides a host of incentives and facilities to small enterprises.
Fiscal Incentives
Excise duty exemptions and concessions are available to small scaleu nits with turnover under the excise duty exemption scheme. These exemptions and concessions are available to both registered and unregistered SSI Units.
Reservation of Items Manufactured/Reserved for Production and Purchase.
Under this scheme certain items have been reserved exclusively for manufacture in SSI sector; for purchase from SSI sector.
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Small Industries Development Bank of India - the apex bank for small scale industries extends assistance of SSI units through various schemes. All projects in the small scale sector are normally eligible for assistance-
State Govts./UT Govts. Incentives/Facilities/Concessions In order to avail tliese facilities SSI units are required to be registered with the Directorate of Industries of State/UT Governments. Some of the important facilities/incentives provided are :-
• Land, developed plots and sheds in industrial estates on easy terms.
• Necessary infrastructure at developed sites
CFTIs are in Agra and Chennai. CFTC Calcutta is functioning and CFTC Mumbai is under implementation. Their functions include:
• Training of manpower for footwear industry.
• Developing designs/new types of footwear to promote exports.
Ten Tool Rooms are in existence to cater to the tooling needs of small scale industries. The existing ones are located at: Calcutta, Ludhiana, Jalandhar, Hyderabad, Nagpur, Bhubaneshwar, Indore, Jamshedpur, Ahemdabad and Aurangabad. State Government-run-Tool Rooms are at Lucknow, Delhi, Bangalore, Mysore and Goa.
Tool Rooms provide the following services:
• Assistance in tool design
• Manufacture of tools, jigs, fixtures, moulds & dies etc.
• Training facilities to tool makers.
• Common service facilities
• Consultancy.
Testing facilities are being extended through 4 Regional Testing Centres at Calcutta, Mumbai, Chennai and New Delhi and Field Testing Stations for raw materials, semi finished products and the end products primarily manufactured in the small scale sector. These centres have been equipped with the basic testing facilities in the disciplines of chemical, mechanical, electrical, metallurgy and metrology. These Testing Centres besides rendering facilities, assist in quality upgradation aspects and provide training in testing and quality control besides consultancy in testing and quality management and in process quality control systems.
Commercial Banks provide short term and medium term financial assistance to small scale units. Short term credit facilities are granted for working capital requirements like those for raw materials, goods-in-process, finished products, bills receivables and book debts. Medium term loans are granted for the acquisition of land, construction of factory premises, purchase of machinery and equipment and operative expenses. These loans are generally granted for periods ranging from five to seven years.
NSIC and SSICs supply machinery on hire-purchase basis to small scale and ancillary industries.
Single point registration scheme of NSIC was introduced in 1976 to avoid the need for multiplicity of registration by the SSI units ^ith different purchasing agencies like DGS & D, Railways, Defence etc. The NSIC enlists the SSI Units to undertake supply °f various items needed by the Government Departments/Public Sector Undertakings.
The National Small Industries Corporation Ltd. (A Government of India Enterprise) NSIC Bhavan, Okhla Industrial Estate, New Delhi 110020 offers a wide range of services and facilities to the small scale sector. Some of its important
Four Centres are in existence and two new Centres are at Firozabad (UP) for Glass Industry and Kannauj (UP) for Flavour and Fragrance. They are designed to work basically as R & D Institutions to carry out advanced developmental work in the concerned fields. Existing centres are at Meerut, Agra, Ramnagar and Mumbai. Two State Government-run-PPDCs are at Ludhiana and one at Ambala. Two more are being set up at Batala and Ludhiana. Their functions include:
• To serve as research and development institutions in areas in dense industry cluster.
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Apart from the above organisations helping the entrepreneurs, we have also included addresses of some other specialised agencies/ other information which may prove useful to the prospective entrepreneurs. These are given in the following annexures:
Annexure VI:
• Specialised Agencies
• Important Technical Consultancy Organistions
• Addresses useful for prefeasibility studies
• Institute of Entrepreneurship Development (IEDs) and Centres for Entrepreneurship Development (CEDs)
• Export Propmotion Councils
• Government Organisations for Export-Import Trade
Annexure VII:
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A network of State Financial Corporations, National Small Industries Corporation, State Small Industries Corporations, Commercial Banks, Cooperative Banks, Regional Rural Banks provide financial assistance to small scale units. Small Industries Development Bank of India provides refinance to the industrial loans advanced by these institutions to small scale sector.
State Financial Corporations (SFCs): State Financial Corporations grant term loan for the purchase of land, construction of factory premises and purchase of machinery and equipment for the setting up of new industries or for expansion or modernisation of the existing ones. SFCs generally prescribe a margin of 25% and allow an initial holiday
Regd. Office: Express Towers, 10th floor, Nariman Point Bombay 400021. Northern Regional Office: Antriksh Bhawan, 8th Floor, 22, Kasturba Gandhi Marg, New Delhi 110001. CABLE-ERICBAID.
ECGC is a company wholly owned by the Government of India. It functions under the administrative control of the Ministry of Commerce and is managed by a Board of Directors representing Government, Banking, Insurance, Trade, Industry, etc. It offers a wide range of policies to cover practically every type of export transaction.
Covers Issued by ECGC:
The covers issued by ECGC can be divided broadly into four groups:
(i) Standards policy issued to exporters to protect them against payment
MBA Tag Clouds