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GOVERNMENT OF INDIA
MINISTRY OF SMALL SCALE INDUSTRIES
ANNUAL REPORT

MINISTRY
OF
SMALL SCALE INDUSTRIES

2002-2003
CONTENTS
CHAPTER PAGE

I ROLE AND FUNCTIONS 5-6

II EVOLUTION AND DEVELOPMENT OF SSI POLICY 7-10

III TRAINING AND ENTREPRENEURSHIP DEVELOPMENT 11-20

IV SMALL INDUSTRIES DEVELOPMENT ORGANISATION 21-35

V OTHER SCHEMES OF THE MINISTRY 36

VI NATIONAL SMALL INDUSTRIES CORPORATION 37-49

VII INTERNATIONAL COOPERATION 50-51

VIII SCHEMES OPERATING IN NORTH-EASTERN 52-54


REGION AND SIKKIM - SSI SECTOR

IX USE OF OFFICIAL LANGUAGE 55-56

X VIGILANCE ACTIVITIES 57-58

XI CITIZENS’ CHARTER 59-60


MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - I

ROLE AND FUNCTIONS


The Government created a new Ministry The Ministry of SSI designs and implements
of Small Scale Industries and Agro and Rural the policies through its field organisations for the
Industries (SSI&ARI), to place more focused promotion and growth of small scale industries.
attention on the problems of the SSI sector, on The Ministry also performs the functions of policy
14 th October, 1999 as a nodal Ministry for advocacy on behalf of the Small Scale Industries
formulation of policy, promotion, development (SSI) sector with other Ministries/Departments.
and protection of small scale industries in India.
The Ministry of Small Scale Industries and Agro The implementation of policies and various
and Rural Industries (SSI&ARI) was bifurcated into programmes/schemes for providing infrastructure
two separate ministries namely, Ministry of Small and support services to small enterprises is
Scale Industries and Ministry of Agro and Rural undertaken through its Attached Office, namely
Industries on 1st September, 2001. Taking into Small Industry Development Organisation (SIDO),
consideration the higher potential for growth in and National Small Industries Corporation (NSIC)
the SSI sector in terms of output, employment Ltd.
and exports, the role of the Ministry of Small Scale
Industries is to strengthen the SSI sector to enable DIFFERENT ORGANISATIONS
it to remain competitive in market-led economy
and generate additional employment. For DEVELOPMENT COMMISSIONER (SMALL
achieving these objectives, the endeavour of the SCALE INDUSTRIES)
Ministry is to provide the SSI sector proper and
timely inputs like: The Office of the Development
Commissioner (Small Scale Industries) is also
1. Adequate credit/loans from financial known as Small Industries Development
institutions/banks. Organisation (SIDO). It is an apex body for
2. Funds for technology upgradation and formulating, coordinating, implementing and
modernization. monitoring policies and programmes for
3. Adequate infrastructural facilities. promotion and development of small scale
4. Modern testing facilities and quality industries in the country and is headed by the
certification laboratories. Development Commissioner.
5. Modern management practices and skill
upgradation through advanced training The SIDO assists the Ministry in
facilities. implementation of policies and programmes for
6. Marketing assistance. promotion and development of the small scale
7. Level playing field at par with the organised sector. It also provides a comprehensive range
sector. of common facilities, technology support

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MINISTRY OF SMALL SCALE INDUSTRIES
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services, marketing assistance etc., through its established in 1955 by the Government of India
network of 30 Small Industries Service Institutes(SISI) with a view to promote, aid and foster the growth
28 Branch Institutes, 2 Extension Centres, 4 of small scale industries in the country.
Regional Testing Centres, 2 SEPTI at Ettumanoor
and Thiruvalla and 7 Field Testing Stations. The NSIC continues to remain at the forefront
SIDO has a network of Tool Rooms, Process-cum- of industrial development throughout the country
Product Development Centres (PPDCs) and with its various programmes and projects to assist
technology and training support institutes which the small scale sector in the country
are run as autonomous bodies registered as
societies under the Societies Act. The Corporation in its role to promote and
develop small scale industries provides support
SMALL SCALE INDUSTRIES BOARD to small scale industries in the following areas:-
● Supply of both indigenous and imported
The Board machines on easy hire purchase terms.
provides a forum for Special concessional terms have been
interaction among introduced for units in backward areas and
its members in order also for units promoted by entrepreneurs
to facilitate co- from weaker sections of society.
ordination and inter- ● Assist in marketing of Small industries’
institutional linkages products within the country.
and to render ● Assist in export of small industries’ products
advice to the and developing export worthiness of small
Government on scale units.
various policy ● Enlisting competent units and facilitating
matters and other their participation in government Stores
related issues Purchase Programme.
concerning the ● Developing prototypes of machines,
promotion and equipment and tools which are then
Shri S. K. Tuteja, Secretary development of the passed on to small scale units for
(SSI & ARI) (then AS & DCSSI)
making a point during small scale sector. commercial production.
the 46th meeting The term of the ● Providing training in several industrial trades.
of the SSI Board
Small Scale ● Supply and distribution of indigenous and
Industries Board is two years. The Board has been imported raw materials.
reconstituted on 18th January,2003.
The NSIC is directly operating different
NATIONAL SMALL INDUSTRIES programmes by professionals through 8 regional
CORPORATION (NSIC) LTD. offices, 5 Technical Service Centres, 2 foreign
offices, 2 Software Technology Parks, 17 branch
The National Small Industries Corporation offices located in almost all the States and 3
Limited is a public sector undertaking was Technical Service Extension Centres.

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CHAPTER - II

EVOLUTION AND DEVELOPMENT OF SSI


POLICY
Over the past five decades, Government investment limits in plant and machinery (original
policies have been to protect the interests of the value), upto a prescribed value. It comprises a
SSI sector and facilitate its rapid development, wide divergent spectrum of industries, ranging
the Government, in pursuance of its policies, from the micro and rural enterprises, using
initiated various support measures from time to rudimentary technology on the one hand to the
time which include policy of reservation, revision modern small scale industries using sophisticated
of investment ceilings, modernization, technology on the other.
technological upgradation, marketing
assistance, fiscal incentives etc. DEFINITION OF SSI SINCE 1950

The Small Scale Sector owes its definition The definition of small scale industries has
to the Industries (Development and Regulation) undergone changes over the years in terms of
Act, 1951. The Sector is defined in terms of investment limits in the following manner:

Year Investment Limits Additional Conditions


1950 Upto Rs.5.0 lakh in fixed assets Less than 50/100 persons
with or without power
1960 Upto Rs.5.0 lakh in fixed assets No condition
1966 Upto Rs.7.5 lakh in Plant & Machinery No condition
1975 Upto Rs.10 lakh in Plant & Machinery No condition
1980 Upto Rs.20 lakh in Plant & Machinery No condition
1985 Upto Rs.35 lakh in Plant & Machinery No condition
1991 Upto Rs.60 lakh in Plant & Machinery No condition
1997 Upto Rs.300 lakh in Plant & Machinery No condition
1999 Upto Rs.100 lakh in Plant & Machinery* No condition
2001 Upto Rs.100 lakh in Plant & Machinery* No condition

* With effect from October 2001, the investment ceiling in Plant & Machinery in respect of 41 items covering two
broad groups of Hosiery & Hand Tolls has been enhanced to Rs. 500 lakh.

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MINISTRY OF SMALL SCALE INDUSTRIES
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PROFILE OF SSI SECTOR IN THE the country, is playing a very positive and
constructive role for strengthening this vital sector.
INDUSTRIAL SECTOR
It functions through a network of SISIs, Branch SISIs,
Regional Testing Centres, Footwear Training
The SSI Sector accounts for: -
Institutes, Production Centres, Field Testing
Stations and specialized institutes. It renders
● 95% of industrial units in the country.
services such as : -
● 39.92% of value added in the
manufacturing sector.
● Advising the Government in policy
● 34.29% of national exports.
formulation for the promotion and
● 6.86% of Gross Domestic Product (GDP)
development of small scale industries.

OTHER FEATURES INCLUDE : ● Providing techno-economic and


managerial consultancy, common
● Employment to 193 lakh persons. facilities and extension services to small
● Production of over 7500 items in the scale units.
industrial SSI sector.
● Product range varies from simple items ● Providing facilities for technology
produced with traditional technology to upgradation, modernization quality
high-tech products, produced with improvement and infrastructure.
sophisticated state of the art technology.
● 749 items reserved for exclusive ● Developing Human Resources through
manufacture in the SSI Sector. training and skill upgradation.
● 358 items reserved for exclusive purchase
from the SSI Sector. ● Providing economic information services.

Constant support to SSI sector by the ● Maintaining a close liaison with the Central
Government in terms of infrastructure Ministries, Planning Commission, State
development, fiscal and monetary policies have Governments, Financial Institutions and
helped this sector to emerge as dynamic and other Organisations concerned with
vibrant sector of Indian economy. development of Small Scale Industrties.

INSTITUTIONAL SUPPORT STRUCTURE ● Evolving and coordinating Policies and


Programmes for development of Small
DEVELOPMENT COMMISSIONER Scale Industries as ancillaries to large and
( SMALL SCALE UNDUSTRIES ) medium scale industries.

The Small Industries Development Small Industries Development Organisation


Organisation ( SIDO), headed by the Additional (SIDO) had set up a cell for ancillary development
Secretary & Development Commissioner ( SSI), to promote ancillarisation and sub-contracting
being an apex body for formulating and in the country and has taken up the challenges
overseeing the implementation of the policies to open new avenues for the small scale sector
for the development of small scale industries in to ward off the psychological fear of failures due

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MINISTRY OF SMALL SCALE INDUSTRIES
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to competition from imported goods as a result SMALL INDUSTRIES SERVICE INSTITUTES (SISIs)
of WTO agreements. This has been done through
intensified efforts of promoting ancillarisation and There are 30 SISIs and 28 Branch SISIs set
sub-contracting by providing a common up in State capitals and other industrial cities all
platform to small scale industries as well to the over the country. The main activities of these
buyer organizations which hitherto were institutions are as follows :-
dependent on inputs or otherwise through the ● Assistance / Consultancy to Prospective
concept of organizing Vendor Development Entrepreneurs
Programmes (VDPs) on larger scaled and setting ● Assistance/Consultancy rendered to
up more Sub-Contracting Exchanges (SCXs) in existing units
different parts of the country.
● Preparation of State Industrial Profiles
● Preparation / Updation of District industrial
Over the years SIDO has served a very
Potential Surveys
useful purpose as a catalyst of growth of small
enterprises through its vast network of field ● Project Profiles
organizations spread over different parts of the ● Entrepreneurship Developemnt
country. Programmes
● Motivational Campaigns
SSI BOARD ● Production Index
● Management Development Programmes
The range of development work in Small
● Skill Development Programmes
Scale Industries involves several Department/
Ministries and several organizations of Central/ ● Energy Conservation
State Governments. To facilitate coordination ● Pollution Control
and inter-institutional linkages, the Small Scale ● Quality Control & Upgradation
Industries Board has been constituted. It is an ● Export Promotion
apex advisory body constituted to render advice ● Ancillary Development
to the Government all issues pertaining to the
● Common Facility Workshop / Lab.
small scale sector.
● Preparation of Directory of Specific Industry

The Minister-in-charge of Small Scale ● Intensive Technical Assistance


Industries of the Government of India is the ● Coordination with DICs
Chairman and the Board comprises among ● Linkage with State Govt. Functionaries
others State Industry Ministers, some members ● Market Surveys
of Parliament, Secretaries of various Departments ● Other Action Plan Activities assigned by
of Government of India, financial institutions, Headquarters
public sector undertakings, industry associations
and eminent experts in the field.
SISIs and its Branches have common
facility workshops in various trades. There are at
The Board meets periodically to take stock
present 42 such common facility workshops
of the issues pertaining to policy matters. The
attached to SISIs/ Branch SISIs.
Board has so far met 47 times till July, 2002.

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Hon’ble Union Minister of State for Urban Development One Day Training Programme on “Packaging for
& Poverty Alleviation is seen visiting Exhibition Stalls Exports” in general with specific reference to
of A.P. Paint Expo-2002 held on 2.2.2002 Engineering Products conducted
at Campus of SISI-Hyderabad at Br. SISI Coimbatore

SUPPORT FROM STATE / INDUSTRY Industry Associations provide support to


ASSOCIATIONS the SSI sector and offer a common platform to
raise industry-related issues. Government
At the State level, concerned policies, in recent years, have stressed the
Commissioners/Directors of Industries implement increasing role of Industry Associations in the
policies for the promotion and development of setting up of common facilities and other
small scale, cottage, medium and large-scale ventures in the area of technology, marketing
industries. The Central policies for the SSI sector and other support services. Industry Associations
serve as the guidelines, but each State evolves also impart institutional support to the small-
its own policy and package of incentives. The scale sector. Some of the major associations
State departments also oversee activities of the like Confederation of Indian Industry (CII);
field offices, viz., District Industries Centres (DICs). Federation of Indian Chamber of Commerce
In addition, State Financial Corporations, State and Industry (FICCI); PHD Chamber of
Small Industrial Development Corporations, Commerce and Industry (PHDCCI); Associated
Technical Consultancy Organisations, operate at Chamber of Commerce & Industry of India
the State level to assist the promotion and (ASSOCHAM); Federation of Indian Exporters
development of SSIs. Other regional level Organisation (FIEO); World Association for
agencies include State Infrastructure Small & Medium Enterprises (WA SME);
Development Corporations, State Cooperative Federation of Associations of Small Industries
Banks, Regional Rural Banks, State Export of India (FASII); Consortium of Women
Corporations, Agro Industries Corporations and Entrepreneurs of India (CWEI); Laghu Udyog
Handloom and Handicrafts Corporations. At the Bharati (LUB); Indian Council of Small Industries
grass root level, NGOs play an important role for (ICSI) etc. have been helping and motivating
the development of tiny and cottage units. SSI entrepreneurs.

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CHAPTER - III

TRAINING AND ENTREPRENEURSHIP


DEVELOPMENT

The Indian Institute of Entrepreneurship (IIE), TRAINING


at Guwahati; the National Institute of Small
Industry Extension Training (NISIET), at Hyderabad During the year the Institute has proposed
and the National Institute of Entrepreneurship and to organize 87 training programmes, seminars,
Small Business Development (NIESBUD), at New workshop and meets, where 2738 participants
Delhi under Ministry of SSI are responsible for are expected to participate. Up to November
training and entrepreneurship development in 2002 it has completed 52 programmes where
the SSI Sector. 1848 participants participated, while another 36
programmes are scheduled to be completed
INDIAN INSTITUTE OF by March 2003. Out of the total 87 programmes
ENTREPRENEURSHIP (IIE), GUWAHATI 42 programmes are on promotion of New
Entrepreneurs, 1 programme on Growth of
The Indian Institute of Entrepreneurship Existing Entrepreneurs, 5 programmes on
(IIE), completed 8th year of its operation on 31st Creation of Environment for Entrepreneurship,
March 2002. An increasing important element 17 programmes on Entrepreneurship Education,
of the Institute’s work has been to try to 4 Seminars, Workshop and Meets, 5 on
strengthen capacity in the field of Information Technology Programmes and 13
entrepreneurship development training, programmes on VRS optees. Better
entrepreneurship education, research and infrastructure facilities of the Institute, greater
consultancy, publication and sensitization of awareness of the Institute and addition of new
environment for different types of income areas of Entrepreneurship Development have
generating activities, self-employment and been responsible for increase in number
entrepreneurship. A notable aspect is the of programmes. The type and number of
support for the entrepreneurship development training programmes organized and number
programmes in the North Eastern Region and of participants trained during 2002-2003 (up
Sikkim. Details of activities undertaken and to November 2002) and expected
proposed during the financial year 2002-2003 achievement for the year can be seen from
are presented below: Table I.

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Programmes and Number of Participants


Table: I
Sl No. P rogrammes No. of PProgramme
rogramme No. of PParticipants
articipants
Up to On going Up to Expected
November and to be November up to March
2002 completed 2002 2003
1. Promotion of New 37 15 1364 375
Entrepreneurs
2. Growth of Existing - 1 - 25
Entrepreneur
3. Creation of Environment 5 1 136 25
for Entrepreneurship
4. Education 5 12 186 300
Seminar and Workshop
5. Information Technology 2 2 120 100
6. Other 3 2 42 40
Total 52 33 1848 865

PROMOTION OF NEW ENTREPRENEURS Employment for the VRS optees of Central Public
Sector Undertakings. The Institute has conducted
Promotion of new entrepreneurs has been 10 Training Programmes for VRS optees, of the
the major focused areas of training organized Central Public Sector Undertakings where 350
by IIE. In order to promote new entrepreneurs, participants participated. Another three
the Institute organizes rural, general and women programmes for VRS optees will be organized
EDPs, Programme on Crash Course on Self within March 2003. During the year 2002-2003
Employment, Sector Specific EDPs, Turn Key EDPs, the Institute has planned to organize 52
and EDPs for KVIC Beneficiaries. Programmes of various categories, out of which
36 have already been completed, where 1014
The Institute is implementing Rural persons participated and 15 to be completed
Industries Programme (RIP) in Meghalaya and by March 2003. Programmes up to November
Manipur during this year in addition to ongoing 2002 are as follows (Table II ):
Barpeta (Assam) programme with the support of
SIDBI. SECTOR SPECIFIC PROGRAMME

The Institute has also been identified as a At the instance of UNDP, the Institute has
organized two Sector Specific Programmes in
nodal agency in the North East by Ministry of
Cane and Bamboo, considering the immense
Heavy Industries and Public Enterprises for
potential of Cane and Bamboo Sector in the
imparting training programmes on Self North East, where 63 participants from North

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MINISTRY OF SMALL SCALE INDUSTRIES
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Programmes on the promotion of New Entrepreneurs Table: II

Sl. No. Nature of PProgramme


rogramme Number of PProgramme
rogramme Number of PParticipants
articipants
1. Se ctor Specific EDP 2 63
2. EDP on Food Processing 2 40
3. GEDP 8 169
4. EDP for KVIC Beneficiaries 7 199
5. REDP 4 125
6. Crash Course 1 26
7 EDP for VRS optees 10 350
8. TEDP 1 7
9. Management of Micro Enterprise 1 35
Total 36 1014

Eastern Region participated. One more Govt. Departments. where 70 Govt. officials had
Programme of this kind will be organized in the also participated.
year 2003. Assam Small Farmers’ Agri- Business
Consortium (A SFAC) has sponsored two The Institute has taken a new initiative for
programmes in the sector of food processing promotion of entrepreneurship among the
for the benefit of 40 participants. vulnerable sections of the population in the
Project Areas in collaboration with International
CREATION OF ENVIRONMENT FOR Fund for Agriculture Development (IFAD). The
ENTREPRENEURSHIP Institute has already Completed 3 programmes
for the Project team members of IFAD officials
Considering the importance of creating and proposes to have a long term MoU with
environment for entrepreneurship development, IFAD for more programmes. Details are given
the Institute has been organizing programme for below in Table III.
orientation of the support officials. During the year
(November 2002) the Institute has organized 5 ENTREPRENEURESHIP EDUCATION
such programmes, where 136 participants
participated. For the first time the Institute made Creating awareness and orientation for
inroad in the State of Sikkim by organizing 2 college and university teachers on
Orientation Programme for Officials of various entrepreneurship has been one of the core areas

Orientation programmes Table: III


Sl. No. T ype of PProgramme
rogramme No. of PProgramme
rogramme Nos. of PParticipants
articipants
1 Trainers Training Programmes 2 70
2 Orientation Programme for 3 66
Development of Entrepreneurs
Total 5 136

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. The Institute will organize 2 Faculty Development forum for interaction and exchange of views by
Programmes in Entrepreneurship for College and various agencies and entrepreneurs. Till date the
University Teachers. In addition to these 10 Institute organized one Workshop on Promoting
Programmes for the students of College and Women Entrepreneurs in NER where 120
Universities will be organized during the financial participants participated. In addition the Institute
year 2002-03. The Institute has already organized organized district level Bankers Meet at Barpeta
5 Programmes for the student’s community till to create awareness for Small Scale financing
November 2002. Details are given below: among bankers involving bankers district
administration and DIC officials. Two more
Entrepreneurship Education Programmes Workshop/Seminars will be organized by the end
Table IV of March 2003.

Sl. T ype of No. of No. of RESEARACH AND CONSULTANCY


No. P rogrammes rogra-
PProgra- Partici-
mmes pants The following consultancy assignments are
1 EAP for College 3 98 ongoing and expected to be completed by
and University March 2003:
Students
2 EAP for Graduates 2 88 ● Functioning and working of North Eastern
and Post Graduates Council since inception; sponsored by
Total 5 186 North Eastern Council.

● District Potential Study in Sibsagar District


INFORMATION TECHNOLOGY of Assam sponsored by NABARD.

The IIE has organized 3 Training ● Promotion of Industries in the Northeast


Programmes till November 2002 on basic sponsored by Northeastern Council.
Computer Application Skills, where 42
participants participated. 2 more Programmes ● Study for setting up of Food Processing
of this kind will be organized by March 2003. The Industries in Kahibama village of Kamrup
Institute also offers Post Graduate Course in district of Assam sponsored by Small
Applied Computer Science in collaboration with Farmers Agri Business Consortium.
CMC Ltd. At present two Programmes of this kind
are going on at IT center of the Institute. PUBLICATIONS:

SEMINAR AND WORKSHOP During the year the Institute has brought
out a book titled “Entrepreneurship A Four –
The Institute has been organizing Seminar, Stage Approach to Self Employment and
Workshop, Meets and Conference for providing Entrepreneurial Career”.

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National Women’s Day 8 March 2002 celeberated by NISIET

NATIONAL INSTITUTE OF SMALL but also developing countries around the world
INDUSTRY EXTENSION TRAINING in promoting self-employment and enterprise
(NISIET), HYDERABAD development. The institute is constantly evolving
with time, modifying its focus with the emerging
The NISIET was set up as an apex institute needs of SMEs, providing them solutions in the
in 1960 by the Government of India with the form of consultancy, training, research, and
charter of assisting in the promotion, education to retain their competitive edge in
development, and modernisation of small and ever-changing markets.
medium enterprises (SMEs) in the country, mainly
by creating a pro-business environment that ORGANISATION AND MANAGEMENT
would enable SMEs to progress towards success
and prosperity. With its vast expertise in the areas The management of the institute rests with
of entrepreneurship, policy, technology, the Society and the Governing Council
management, and information services, the appointed by the Government of India. The
institute is consistently assisting the SMEs to face Secretary, Ministry of Small Scale Industries,
with confidence the challenges brought about Government of India, is the President of the
by globalisation and the impact of IT on their Society and is also the Chairman of the
businesses. Governing Council.

As a global organisation, NISIET’s stellar role The Governing Body acts through the
in positioning the SMEs on the growth trajectory Principal Director. The Principal Director is the
has benefited not only the Indian SME sector, academic and executive head of NISIET. He

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functions under the guidance of the Executive RESEARCH AND CONSULTANCY


Committee/Governing Council/Society.
During 2002-03, the Institute has taken up
The academic activities are organised the following research and consultancy
through centres of excellence and theme projects:
focussed cells. The Academic Council is the
nucleus coordinating body, which formulates ● Evaluation of on-going schemes in Andhra
academic activities and programmes Pradesh sponsored by NBCFDC (National
with quantitative and qualitative benchmarks Backward Caste Finance Development
by providing a framework for assessment Corporation), New Delhi.
and evaluation addressing contextual
variations. ● Evaluation of Self Help Groups in Medak
District of Andhra Pradesh sponsored by
TRAINING DRDA (District Rural Development Agency),
Medak
The academic performance indicators for
2001-02 (actual) and for the period from April 1, ● Evaluation of PMRY (Prime Minister’s Rozgar
2002 to November 30, 2002 (actual) and the Yojana) in three select districts of Andhra
projection for the remaining four months of Pradesh sponsored by Development
2002-03 are presented below in the Table V. Commissioner (Small Scale Industries)

Book Exhibition organised by NISIET for the trainees

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Table V
P rogrammes 2001-02 2002-03
No. of No. of F rom 1.4.2002 From 1.12.2002
P rogra- Partici- to 30.11.2002 to 31.3.2003 Total
mmes pants (Actual) (P rojection)
(Projection)
No. of No. of No. of No. of No. of No. of
P rogra- Partici- P rogra- Partici- P rogra- partici-
mmes pants mmes pants mmes pants
National
Announced 24 462 11 168 20 200 31 368
Sponsored 50 1440 45 1567 30 450 75 2017
Outstation 35 994 199 10948 15 300 214 11248
Inter-national
Announced 14 241 10 161 -- -- 10 161
Sponsored 04 28 2 12 04 60 06 72
Educational
PG Diploma 09 135 09 165 -- -- 09 165
IT 30 516 07 72 15 150 22 222
IGNOU 06 541 06 482 -- -- 06 482
Seminars and
Workshops 37 1575 29 1099 20 400 49 1499
Total 209 5932 318 14674 104 1560 422 16234

● Project report on Cold Storage for an sponsored by NEDFI, (North Eastern


Entrepreneur in Hyderabad Development and Finance Limited),
Guwahati
● Project on providing additional income
opportunities for the families of Child ● Project on Identification of Joint Venture
Labour at Visakhapatnam, Hindupur, Partners for setting up manufacturing
Markapur and Kuppum of Andhra Pradesh facilities for making furniture from used
sponsored by ILO (International Labour automotive tyres for M/s. Rama Anand
Organisation). Innovation, Delhi.

● Project on Identification of viable micro ● Evaluation of micro credit and educational


enterprises in Balaji Nagar, Tirupati loan schemes in Andhra Pradesh
sponsored by TTD (Tirumala Tirupathi sponsored by APBCFC (Andhra Pradesh
Devastanam), Tirupathi, Andhra Pradesh Backward Caste Finance Corporation),
Hyderabad
● Project on Identification of product/
resource specific business in Meghalaya, ● Evaluation of Self Help Groups in Warangal
Mizoram, Nagaland, and Tripura District of Andhra Pradesh sponsored by

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Annual Report 2002-2003

DRDA (District Rural Development Agency), ● Modernisation of conference/seminar


Warangal halls, laboratories, and classrooms

● Project on Identification of Export ● Acquired advanced teaching/training aids


Opportunities for Minerals (ceramic
industry) for M/s Gold Field Minerals, ● Latest gadgets and other essential aids like
Bangalore computers with latest software were made
available to promote faster and
● Project on Environmental Audit for Digwal convenient learning by participants
Manufacturing Plant, Digwal Village, Kohir
Mandal, Medak District, Andhra Pradesh UPGRADATION OF SENDOC
sponsored by Global Bulk Drugs and Fine
Chemicals Private Limited, Hyderabad. Augmented SENDOC operations by
switching over to electronic and digital
● Project on Case Study on Entrepreneurs information services and products. They include
Counselling sponsored by Department acquisition and installation of electronic journals
of Personnel & Training, Government of database and industrial analysis database. In
India addition, a number of CD-ROMs were added to
strengthen the information support system.
MODERNISATION OF INFRASTRUCTURE
CITIZEN’S CHARTER
● Improved the physical infrastructure of the
Institute. In order to cope with the The NISIET formulated a citizen’s charter as
increased poly-dimensional nature of a systematic effort to focus on the commitment
academic activities and programmes, of the institute towards its clients/citizens in respect
extensive renovation and modernisation of of standard of services, information, choice and
buildings were undertaken consultation, non-discrimination and
accessibility, grievance redress, courtesy, and
● Improved the overall support/service value for money. The charter also includes
areas: executive hostels, catering, expectations of the institute from the client/citizen
transport, upkeep, maintenance, etc. for fulfilling the commitment of the institute.

● Landscaping and designing of gardens The written feedback from the participants
were undertaken to provide the right and clients are being evaluated from time to
ambience for academic pursuits and also time by the empowered committee and
as an enjoyable treat to the eyes. reviewed by the Head of the Institution.

● Separate environs were created and FINANCIAL TARGETS


constructed for specific activities like
motivation of entrepreneurs, open-air During the year, an amount of Rs.701.00
spots, grounds, and theatres for musings lakh is expected through the academic activities
and for programmes, festivals, and and programmes of NISIET. The actual income
academic discussions generated as on November 30, 2002, and

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

income expected to be generated in the of 382 persons belonging to different target


remaining period of the year are given in Table groups. Of these, five training programmes
VI below: exclusively conducted for 72 Trainers/Executives
were : Accreditation Programme for Entrepre-
Financial Targets Table VI
neurial Motivation Trainers (First Phase), TTP on
Rs. in lakh Planning and Organising EDPs, Achieving
Income generated by 310.19 Excellence Through Achievement Motivation and
November, 2002 two Accreditation Programmes on EMT.

Expected to be generated 390.81


The five Entrepreneurship Development/
in the remaining period
Orientation Programmes conducted by the
Total 701.00 Institute with 140 participants, during the period,
included a series of three Career Orientation/
Guidance Workshops organised at the request
NATIONAL INSTITUTE FOR received from M/s. Triveni Engineering & Industries
ENTREPRENEURSHIP & SMALL Limited for 83 school going children (X-XII) of
BUSINESS DEVELOPMENT ( NIESBUD), employees of its sugar mills and the fourth EDP
NEW DELHI organised as a vocational option for the 4th year
students of the Appejay Institute of Design, New
The National Institute for Entrepreneurship Delhi was attended by 44 students. The other
& Small Business Development (NIESBUD), New training programme organised in the category
Delhi, is a registered Society under the Ministry of was at the request of CASP Plan project, New
Small Scale Industries, Govt. of India. The major Delhi, for 13 women of Slum Areas of Delhi who
activities of the Institute include evolving model were engaged/interested in Income Generation
syllabi for training various target groups, providing Activities through formation of Groups/Co-
effective training strategies, methodology, operatives. The Institute played host for the
manuals and tools, facilitating and supporting second successive year to the Annual
Central/State Governments and other agencies Conference of the Heads of Institutions &
in executing programmes of entrepreneurship Senior Officers of the Ministry of Small Scale
and small business development, maximising Industries.
benefits and accelerating the process of
entrepreneurship development, conducting During the period, the Insitute
programmes for motivators, trainers and commenced two of its 8-weeks’ International
entrepreneurs which are commonly not Training Programmes viz; “Small Business Creation
undertaken by other agencies and organising & Development for Women Entrepreneurs” and
those activities that help in developing “Small Business Planning & Promotion” with 29
entrepreneurial culture. participants in these programmes.

TRAINING PROGRAMMES Besides, the Institute conducted a three-


days training programme, the first of its kind by
During 2002-2003, (April 2002 to the Institute, on Micro Credit for Group Leaders
November 15, 2002), the Institute has organised at the request received from CASP PLAN Delhi
14 training programmes having a participation Unit which was duly attended by 21 participants.

19
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

During remaining period of the Interior Works of the Campus are scheduled to
financial year, the Institute proposes to conduct commence by May 2003 and shall be
a total of 14 training programmes with 210 completed within 4-5 months.
persons. Thus, the total programmes during the
year 2002-03 would be 28 for 592 persons. This DEVELOPMENT OF ENTREPRENEURSHIP &
would be against the 18 training programmes SMALL BUSINESS IN EGYPT
conducted by the Institute with 473 persons
during 2001-2002. The Institute took up the matter of
resumption of activities under its Contract with
RESEARCH AND PUBLICATIONS Social Fund for Development (SFD), Government
of Egypt, wherein the Institute is to render
The Institute completed the Assignment of Consultancy Services pertaining to conduct of
preparation of 101 Project Reports/Opportunity Industrial Potential Survey of Egypt, organisation
Profiles in Agriculture (40), Industry (27) and of Trainers’ Training Programmes (TTPs) and
Services (34) Sectors as awarded by the National Entrepreneurship Development Programmes
Scheduled Castes Finance and Development (EDPs), Monitoring & Counselling, and
Corporation, New Delhi. establishment of a National Entrepreneurship
Institute in Egypt.
During the period, the Institute brought out
January - March 2002 issue of the SIDO’s OFFICIAL LANGUAGE
Quarterly News Magazine “Laghu Udyog
Samachar”. A special issue of the Magazine (April In consonance with the policy of the
- September, 2002) and a specially designed Government, efforts are being made to promote
Book “Small Scale Industries - An Engine of the use of Hindi as an Official Language in the
Growth” by the Institute on behalf of the written communication of the Institute. The
Department on the occasion of the Ministry’s Third Annual Report of the Institute 2001-2002 is being
National Convention on SSIs. taken out bilingually. A few Publications and
Video Films of the Institute have been made
CONSTRUCTION OF THE CAMPUS available in Hindi also.

During the period, the civil works of the REPRESENTATION OF SCHEDULED CASTES/
Training/Administrative Block of the Institute’s TRIBES, PHYSICALLY HANDICAPPED AND EX-
upcoming Campus at NOIDA were completed. SERVICEMEN IN SERVICE
The work on the other Block i.e. Hostel Block is
likely be completed by May, 2003. The process The Institute has been following
of preparing the interior architectural lay-outs of the reservation policy of Govt. of India with
the Campus was initiated during the period, after regard to reservation in jobs for different
finalisation of the Agency for rendering sections of the society. Out of the total effective
Architectural and Project Management strength of 23 Group C & D employees of the
Consultancy Services for the Interior Works of the Institute, the number of Scheduled Caste/Tribe
Campus. The tenders for executing specialised and Ex-servicemen employees is 8 and 2
works in the Campus were also floated. The respectively.

20
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - IV

SMALL INDUSTRIES DEVELOPMENT


ORGANISATION
TECHNOLOGY RESOURCE CENTRES ● TRCs will have a collection of technical
(TRCs) books, catalogues, brochures etc which
will be available in the institute’s library in a
For the benefit of SSIs seeking to know newly formed TRC Section.
about the latest technologies available all over
the world, 21 SISIs have been converted into ● TRC will provide latest and right technology
Technology Resource Centres (TRCs) w.e.f. for attaining global reach by SSI units.
1.10.2001. These TRCs will perform the following
functions:- ● TRCs will also provide information on “How
to Seek Technology, Technology Transfer
● TRCs will help SSI units who want to upgrade Mode, Leading Technology Transfer
and modernize their technology. Agencies, International Exhibitions etc.”
Generators of technology may also avail
this forum for dissemination of information ● TRCs will also help in preparation of project
about the technologies available with reports, conducting/organizing special
them. Agencies engaged in promotional technical training programmes etc.
activities for SSI sector will also be benefited
from TRC services. REGIONAL TESTING CENTRES (RTCs)

● TRCs will provide information about product Regional Testing Centres at New Delhi,
groups, covering details of technology Mumbai, Kolkatta and Chennai offer testing
(including state of art technology, facilities to the Small Scale Units engaged in the
technology generally used and production of different products including the
traditional technology) list of supplies export worthy products. These Centres are
of machines and raw materials, quality equipped with modern sophisticated indigenous
standards, availability of consultants and imported machinery and equipment for
etc. testing in various disciplines of mechanical,
chemical, metallurgical and electrical industries.
● TRCs will have highly computerized These Centres provide performance testing, type
environment having a facility of networking testing, acceptance testing, calibration services
with leading Organisations involved in and development of processes for various
technology upgradation. products. These Centres are accredited to BIS,
NTPC, RITES, Pollution Control Board and NABL.

21
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

FUNCTIONS development of the SSI sector, national and state


level industry associations, NGOs; to establish
These Testing Centres besides rendering linkage with existing databases and the end
testing facilities assist in :- entrepreneur, for development and promotion
of the small scale sector, to carry out office
● Quality upgradation aspects automation in the office of the DC(SSI) for bringing
● Training in testing and quality control out transparency in the functioning of the office,
● Consultancy in testing and quality to create a Website for hosting data available
management within the organization, to host alliance
● Process quality control systems databases in order to serve as a one-stop-shop
to the information seekers, industry associations
FIELD TESTING STATIONS (FTSs) and also individual industries.

Field Testing Stations at Jaipur, Dehradun, ACTUAL PERFORMANCE


Bhopal, Kolhapur, Bangalore, Hyderabad,
Changanacherry and Pondicherry are providing 20 senet centres were given Servers &
testing services and quality upgradation for Networking components for dial up connectivity
testing of various products – Chemicals, Dye- to the main centre and database building.
stuffs, Lamps, Rubber Products, Electric Motors Preliminary and advanced training was given to
and Pumps, Castings and Forgings, Paints and the SENET Team at Technology Nodal Centres,
Varnishes, Domestic Electrical Appliances etc. User Centres and at New Delhi for SENET
applications implementation.
SENET PROJECT
A Website was launched in 2000 and was
“Small Enterprise Information & Resource upgraded to a knowledge based databased
Centre Network” (SENET), was initially approved diven portal, and was launched on 30th August,
by SFC and was launched by Office of the DCSSI 2001 by the Union Defence Minister.
in April, 1997, at the estimated cost of Rs.434.50
lakh. The scheme was modified and its scope Under the Office Automation of the DC(SSI),
was enlarged to include office automation. The 170 PCs were provided to the officers up to
modified scheme was approved by SFC in its Section level along with LAN connectivity.
meeting held on 31 st March,2000 at the
estimated cost of Rs.1140.38 lakh. the objectives M/s. Logicsoft International (P) Limited were
of SENET project are: entrusted with the job of development of
multimedia presentation packages on SIDO as
To pioneer, create and promote well as SSI sector. These packages were brought
databases and information, to facilitate out in the form of CD-ROM and these were
networking amongst the information seekers, distributed among the various field offices, State
which concerns the development of the small Government Agencies, SSI Board Members and
scale sector, including the central/state Financial Institutions etc. Revised version 2.0 of
governments, government agencies engaged the CD was released in 2001.
directly or indirectly in the promotion and

22
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

14 Office automation modules and 16 The following eleven Tool Rooms under
SENET applications were developed and SIDO are in operation:
operationalised by M/s. CMC Limited during 9th
plan. ● Central Institute of Tool Design, Hyderabad
● Central Tool Room, Ludhiana
Main Centre infrastructure was developed ● Indo-German Tool Room, Ahmedabad
with Server room along with 7 servers including 2 ● Indo-German Tool Room, Aurangabad
web servers hosting the web portal and 3 ● Indo-German Tool Room, Indore
database servers were commissioned along with ● Central Room and Training Centre, Kolkata
leased line connectivity and a structured LAN was ● Central Tool Room and Training Centre,
commissioned at O/o the DC(SSI). Two online Bhubaneshwar
chat programmes on SSI policy were held in main ● Indo-Danish Tool Room, Jamshedpur
centre on web portal with Minister of state for SSI. ● Central Institute of Hand Tool, Jalandhar
● Hand Tool Design, Development and
TOOL ROOM & TRAINING CENTRES Training Centre, Nagore (Rajastan)
(TRTCs) ● Tool Room and Training Centre, Guwahati

SIDO has set up Tool Rooms in the country A proposal for setting up CAD/CAM Centre
to assist SSI units in their technical upgradation at Chennai is under process.
by providing good quality toolings. Due to huge
investment needed, SSI units cannot afford to Besides State Government run tool rooms
have their own Tool Rooms. To meet this growing are located at Lucknow, Delhi, Bangalore, Mysore
need, large portion of which is also met through and Goa.
imports, and to assist SSI units, Government of
India, through SIDO, has set up these Tool Rooms AIMS AND OBJECTIVES OF THE TOOL
with the assistance of countries such as Denmark ROOMS AND TRAINING CENTRES
and Federal Republic of Germany, which have
provided the sophisticated machines with latest The objectives of the Tool Rooms are:
technology. Some of the Tool Rooms have also
been set up with the assistance of UNIDO/ILO. 1. To assist SSI units in technological
upgradation by providing quality toolings
The management of affairs of these Tool 2. To increase efficiency of SSI units by
Rooms which have been set up as Government providing consultancy and common
of India Societies rests with the Governing service facilities in the areas of design and
Councils constituted by Government of India. production of tools, jigs and fixtures,
Development Commissioner (Small Scale moulds and dies etc.
Industries) is the President of these societies and 3. To design and manufacture precision tools
Chairman of their respective Governing Councils. such as Press Tools, moulds and dies for
Adequate representation to State Governments, metal castings, jigs and fixtures and special
donor countries and Industry Associations has purpose tools.
been provided in the constitution of Governing 4. To conduct long term training courses in
Councils. tool and die making, machining and

23
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

fitting; and short term courses on related 1. Engineering Industries


subjects for personnel working in the 2. Automobile Industries
industries. 3. Electronics Industries
4. Plastic industries
FACILITIES AVAILABLE IN THE TOOL ROOM 5. Sheet Metal Industries
AND TRAINING CENTRES
PROCESS-CUM-PRODUCT
These Tool Rooms are equipped with latest DEVELOPMENT CENTRES (PPDCs)
imported equipment like CAD/CAM and
specialized CNC machines like CNC milling, CNC There are six PPDCs functioning at present.
copy milling, CNC EDM-Spark erosion, CNC These are:
wirecut, profile grinding, jig boring, jig grinding
etc. to provide toolings of international standards
1. Fragrance and Flavour Development
at competitive rates.
Centre, Kannauj (UP)
2. Centre for Development of Glass Industry,
With the above facilities, these Tool Rooms
Firozabad (UP)
serve the industries in areas indicated below:-
3. Product-cum-Process Development
Centre, Meerut (UP)
a) Tool Design and production
4. Product-cum-Process Development
Centre, Agra (UP)
● Design and manufacture of dies and too
5. Electronics Service & Training Centre,
ls, mould, jigs and fixtures, gauges and tool
Ramnagar District, Nainital (Uttaranchal)
components etc. (upto 1 micron
6. Institute for Design of Electrical Measuring
accuracy)
Instruments, Mumbai (Maharashtra)
● Computer Aided Design and Computer
Aided Manufacturing (CAD/CAM)
● Heat Treatment of all types of steels
FUNCTIONS
● Quality Control and Testing
● Research and development in areas of
b) Training and Consultancy dense industry cluster
● Product Design and Innovation
i) Industry based long term training for tool ● Product and Process Improvement and
& die makers development of improved Packaging
ii) Short term training for managers and Techniques
supervisors to upgrade their knowledge ● Common Facility Centre
and skills. ● Manpower Development/Training
iii) Need based technical training for skilled
workers/tool makers/machinists etc. CENTRAL FOOTWEAR TRAINING
iv) Training in CXNC technology, inspection, INSTITUTES (CFTIs)
quality control testing etc.
This is a Central Sector Scheme
The following types of industries are utilizing implemented by SIDO. CFTI-Agra and CFTI-
the services of these Tool Rooms: Chennai were launched on 1st January,1996 as

24
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

Government of India Societies after the Entrepreneurs Promotion and Training Institute
conversion of departmentally run Central (SEPTI), Tiruvalla, in the year 1992-93, with a view
Footwear Training Centres to give better to conduct specialized skill oriented
functional autonomy to the Institutes. The main Entrepreneurship Development Programmes for
objective of the institutes is to train personnel in educated unemployed youths. The Institute has
the footwear industry as per the requirement of been equipped with Electronic Laboratory,
trade and industry. Both the institutes are Computer Lab, CNC Lab, Household Electrical
modernized with UNDP assistance under the Appliances Lab, Air-conditioning & Refrigeration
National Leather Development Programme and Lab, General Engineering Workshop and four
are fully equipped with state-of-the-art machinery training halls with Audio-Visual aids.
to impart training in footwear manufacturing. At
present, both the institutes are conducting Two To develop the techno-managerial
Year Diploma Course in “Footwear Design & capabilities of the educated unemployed youth,
Production” based on the syllabus of Textile the Institute, since its inception, has been
Institute, U.K. Besides this, the Institutes are conducting skill-oriented EDPs in various trades
conducting long-term and short-term courses in like General Engineering, Motor Rewinding,
Footwear Manufacturing as per the requirement Household Electric Appliances, A/C and
of the trade and industry. Apart from imparting Refrigeration etc. The Institute generally conducts
training, common facility services are provided 16 EDPs in two phases every year. Apart from
to the industry on job work basis. The Institutes these, the Centre has also introduced certain
are also providing consultancy services to small Diploma and PG Diploma courses in Computer
scale footwear manufacturing units in varying from 3 months to 12 months duration on
connection with product development and self-sustaining basis. The Centre also organise
quality control, raw material and managerial training for TRYSEM and PMRY beneficiaries.
aspects.
SMALL ENTREPRENEUR PROMOTION &
Central Footwear Training Centre, Kolkata TRAINING INSTITUTE (SEPTI) , ETTUMANOOR
is functioning under State Government of West
Bengal and the Project CFTC, Mumbai is still under The Production Centre, Ettumanoor, was
implementation . Both CFTC-Kolkata and CFTC- converted into Small Entrepreneur Promotion and
Mumbai are Central sponsored projects in which Training Institute (SEPTI) in the year 1999-2000, with
the Government of India provides one-time grant a view to impart training to the Entrepreneurs of
for construction of building and procurement of Kerala in various disciplines having demand in
machinery and equipment. the area. As the Centre is not having any in-house
training facilities at present, it is giving franchise
OTHER TRAINING INSTITUTES to Training Facility Centres (TFCs) in the trades
which are having demand in the area. The
SMALL ENTREPRENEURS PROMOTION AND Institute has identified appropriate TFCs after
TRAINING INSTITUTE (SEPTI), TIRUVALLA assessing their capabilities and appropriate
training courses are assigned to them on uniform
The erstwhile Production Centre for pattern of terms and conditions. The progress of
electronic motors was renewed as Small training is closely monitored, examinations

25
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

conducted and training certificates are awarded A minimum course fee ranging from
by the Institute. Rs.250/- to Rs.1000/- is being charged at all the
places depending upon the category of the
VENDOR DEVELOPMENT cities, except for Andaman & Nicobar Islands,
PROGRAMMES – FORUM FOR Lakshadweep, North-Eastern States, Sikkim and
OUTSOURCING Jammu & Kashmir where it is Rs.150/- per
participant. 50% concession on prescribed fee
is available for SC/ST candidates. A maximum
Vendor Development Programmes-cum-
amount of Rs.35,000/- is provided for each
Buyer-Seller-Meets and Exhibitions provide a
programme to Field Institutes, i.e. Small Industries
common platform to buying as well as selling
Service Institutes/Regional Testing Centres.
organizations to interact with each other. The
buyer display what exactly they need to
outsource specifying quality parameters and MANAGEMENT DEVELOPMENT
quantity while the sellers also in some cases PROGRAMME
display their own capabilities of manufacturing
various items, their quality standards etc. and The basic objective of Management
desire to meet the buyers’ requirements. The Development Programmes is to impart state-of-
ensuring live interactions amongst buyers and the-art learning in the emerging management
sellers help in understanding each others techniques/practices to help the small scale
facilitating in establishment of business linkage. entrepreneurs for harvesting better profits and
They discuss about the technical specifications, substantial share in the domestic/overseas
quality of the products, quantity required, delivery markets. These programmes are designed and
schedules and payment terms etc. The buying conducted by SISIs keeping in view the local
organizations are able to select the potential conditions and needs of the target groups. The
entrepreneurs to whom various components, subjects covered under these training
assemblies/sub-assemblies can be outsourced programmes pertains to various aspects of
either immediately or in future by identifying the Management, covering Management &
capabilities of the sellers (small scale units). Documentation, Materials Management,
Financial Management, Information Technology
ENTREPRENEURSHIP DEVELOPMENT and Exports etc. Training programmes can also
PROGRAMMES

Entrepreneurship Development
Programmes are being organised as a regular
training activity to cultivate the latent qualities of
youth (both men and women) by enlightening
them on various aspects that are necessary to
be considered while setting up small scale
industries. The duration of these training
programmes varies from 4 to 6 weeks with
minimum intake of 20 participants.
Participants at the Vendor Development Programme at
Jaipur, Rajasthan

26
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

be organised on each one of these topics Electroplating, Sheet Metal, Welding, Tool & Die
independently. An amount of Rs.13,000/- Making, Carpentry, Lens Grinding, Ceramics,
(maximum) is sanctioned for each course having Industrial & Art Wares.
duration of 30 hours with minimum intake of 20
participants. The minimum course fee of Rs.400/ INITIATIVES FOR ENVIRONMENTAL
- per participant is being charged for all the CONTROL
places, except for Andaman & Nicobar Islands,
Lakshadweep, North-Eastern States, Sikkim and ADOPTION OF CLEAN TECHNOLOGIES IN
Jammu and Kashmir, where it is Rs.100/- per SMALL SCALE INDUSTRIES
participant. Only 50% of the prescribed course
fee is being charged from SC/ST candidates. The scheme for promotion, development
and adoption of clean technologies including
Funds are also provided under the scheme waste reuse and recycling formulated earlier for
to the SISIs for developing adequaqte training small scale industries is being continued. The
infrastructure. following new activities have been carried out
under this scheme:
SKILL DEVELOPMENT PROGRAMMES
● Waste Minimisation Demonstration Studies
The basic objective is to provide training in Dye and Dye-intermediate industries
to skilled workers engaged in the small scale completed.
industries and to equip them with better and ● Training and awareness programmes on
improved technological skills of production, Small waste minimization in small scale industries
Industries Service Institutes (SISIs) in their workshops are being sponsored by the Development
organise regular courses in various technical Commissioner, Small Scale Industries.
trades and manufacturing process. Such
The following projects have also been
technical courses are conducted twice/thrice a
undertaken under the scheme:
year by SISIs. The courses conducted by SISIs are
Machine Shop Practice, Heat Treatments,
● Waste Minimisation Demonstration studies
in the rice mills, textile dyeing and printing
and sago industry.
● Preparation of compendium of success
stories on waste minimization and cleaner
production.

ENVIRONMENTAL CONTROL

The Method of granting consent under


water and air pollution to SSI units has been
simplified. Except for 17 critically polluting sectors
A section of participants during the one month given below, in all other cases SSI units will merely
Entrepreneurship Development Programme have to file an application and obtain an
on Beautician & Cosmetology

27
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

acknowledgement which will serve the purpose ● To organise WTO Sensitization Seminars,
of consent : - Workshops, especially for SSI units at Macro
and Micro levels, to enable the Small / Tiny
1. Fertilizer (Nitrogen/Phosphate) Sectors understand the WTO Agreements.
2. Sugar
3. Cement MARKET DEVELOPMENT ASSISTANCE
4. Fermentation & Distillery
5. Aluminium In the recently formulated MDA Scheme
to enhance exports by the SSIs, financial
6. Petrochemicals
assistance is given for participation in
7. Thermal Power
international exhibitions, overseas study tours,
8. Oil refinery
production of publicity material, market studies
9. Sulphuric Acid
etc. Under this Scheme, financial assistance upto
10. Tanneries Rs. 1 lakh is given to SSI Associations who have
11. Copper smelter initiated antidumping investigations. Financial
12. Zinc smelter assistance for obtaining registration for bar
13. Iron & Steel coding for M/s EAN INDIA is also available under
14. Pulp & Paper the Scheme. A panel of experts has been
15. Dye and Dye intermediates constituted for providing support services to SSI
16. Pesticides manufacturing and formulation units relating to anti-dumping measures.
17. Basic Drugs and Pharmaceuticals
QUALITY UPGRADATION IN
WTO CELL SMALL SCALE SECTOR THROUGH
INCENTIVE FOR ISO –9000/14001
A WTO Cell has been set up in the Office CERTIFICATION
of DC(SSI) to coordinate the latest developments
with regard to the World Trade Organisation. The ISO-9000 is the acronym for international
Cell is entrusted with the following functions : - organisations for standarisation. The
accreditation of ISO-9000 is a qualification to sell
● To keep abreast and update information the product globally. The Small Scale Sector has
on issues related to all WTO Agreements.
● Disseminate information to SSI Associations
and SME units regarding recent
developments and prepare them
accordingly to deal with the implications
they would have on the SSI Sector.
● Coordinate with other Ministries and
Departments, like Commerce & Industry
in respect of IPR patent laws and similar
issues.
● Prepare the policy for SSIs in tune with the
A section of the participants of the one day Awareness
WTO agreements. Programme on ISO 9000 TQM held at SISI, Gangtok

28
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

emerged as dynamic and vibrant sector of reimbursement. The amount provides of


Indian economy. The Office of the DC(SSI) have subsidy/financial support if already
introduced the Incentive Scheme of ISO-9000 received from the State Government/
Quality System which aims at encouraging Financial Institution shall be adjusted
technological upgradation and quality against the entitlement of reimbursement
improvement in SSI sector and prepares them under this scheme.
to face the global competition. The Scheme 6. The Government of India has extended the
provides reimbursement of 75% of the amount Scheme upto the Tenth Five Year Plan i.e.
spent for acquiring ISO-9000 Certification (or its 31st March,2007.
equivalent) upto Rs.75,000/- to each unit. The
scope of the scheme has been enlarged to The procedural norms and Application
Form to claim reimbursement of charges
cover the reimbursement of expenses incurred
incurred for acquiring ISO-9000 have been now
for acquiring the ISO-14001.
simplified. According to the revised procedural
norms, a certificate from the Chartered
THE SALIENT FEATURES OF THE SCHEME
Accountant, certifying the expenditure incurred
1. The scheme envisages reimbursement of in acquiring ISO-9000 certification such as
the charges of acquiring ISO-9000 (or its Application fee, Assessment/Audit Fee/Annual
equivalent) certification to the extent of Fee/License Fee, Pre-certification expenses
75% of the cost subject to a maximum of towards training, calibration & testing, , technical
Rs.75,000/- in each case. consultancy (excluding hotel, travel &
2. The small scale/ancillary undertakings are surveillance charges) shall be submitted
eligible to avail the incentive scheme. alongwith the application in place of the certified
3. The Scheme is applicable only to those copies of various vouchers/receipts of payments
SSI/ancillary units who have already made to various agencies.
acquired ISO-9000 (or its equivalent)
Formats of the Application and the
certification.
required documents, together with the checklist
4. It is an all India Scheme administered by
of enclosures, are available on request from the
the Office of the Development
Office of the Development Commissioner (Small
Commissioner(SSI), Ministry of SSI,
Scale Industries), New Delhi or from its field
Government of India.
institutions i.e.Small Industries Service Institutes.
5. The Scheme provides one time

Norms for the Re-embursement Scheme for the ISO-9000


(a) Payments made to Certification Agency (excluding
travel, hotel expenses & surveillance charges) = Full Amount
(b) Payments made towards (i) Consultancy; = Upto Rs. 30,000
(ii) Training; and (iii) Calibration only ) ( Rs. Thirty Thousand )
C ) The entitlement for reimbursement = 75%
(a) full amount
(b) upto Rs. 30,000/-
Total upto Rs. 75,000/-

29
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

Yearwise Progress of ISO -9000 Scheme performance, innovative and useful Research &
Development Efforts, attaining high levels of
Year No. of units Quality in their products and the newly introduced
benefited
Awards for Banks for outstanding lending to SSIs.
1998-99 54 The Convention represented yet another
1999-2000 127 milestone in the life of Small Industries and was
organized on the theme of “Toys” to highlight the
2000-2001 176
achievements of this segment of Small Industry
2001-2002 992
and its great potential in the new economic
2002-2003* 956
order.
*Till 31st January, 2003
NATIONAL AWARD

National Awards are given away to small


The Application format, annexures,
scale entrepreneurs for encouraging and
proformas etc. and a sample of the “Filled-up
motivating them for efficient management of
Application” have been placed on the SIDO
their small scale units, their modernization, with
Website (www.laghu-udyog.com).
a view to upgrading the quality of their produce,
higher productivity, increasing their share both
PHYSICAL ACHIEVEMENTS SO FAR DURING
in the domestic/export markets, innovation and
THE NINTH PLAN
brining about technological improvements. The
The ISO-9000 reimbursement Scheme has Awards are given on the basis of the recommen-
been in operation since March,1994. In all 3332
dations by State/UT level Selection Committee
SSI/Ancillary units have benefited from this
Scheme upto 31st January, 2003. and the final selection by the National Level
Selection Committee. The Scheme envisages
Registered SSI units are required to submit three National Awards ( First, Second and Third)
their Application, duly completed with and one Special Recognition Award to an
enclosures, to the Office of the Development entrepreneur. The national Awards carry, besides
Commissioner (SSI), Nirman Bhavan, New Delhi. a trophy and Certificate, a cash award of Rs.
25,000/- Rs.20,000/- and Rs.15,000/- respectively.
THE SSI CONVENTION AND The Special Recognition Award given to an
PRESENTATION OF THE NATIONAL entrepreneur in each State/UT carries, besides a
AWARDS trophy and certificate, a cash prize of Rs. 10,000/
- In 1993, a special prize at par with First National
SSI CONVENTION Awards was introduced to honour an outstanding
women entrepreneur and also an outstanding
The Ministry of Small Scale Industries, SC/ST entrepreneur. The awards are given for
Government of India, organized its Third National every calendar year.
Convention on small Scale Industries on August
28, 2002 at Hotel Ashoka in New Delhi. The The National Awards were presented on the
occasion also saw the presentation of the occasion of National Convention for excellent
National Awards to outstanding entrepreneurs performance by Small Scale Units in achieving
organisations for exhibiting excellent higher levels of output, Quality Products and

30
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

Research & Development Efforts by the support advantage of the changed circumstances. A
organisations included 3 Awards for Small Scale Mentoring Programme to be implemented
Entrepreneurs, 1 Special Award to SC/ST through National Small Industries Corporation
Entrepreneur, another Special Award to Women (NSIC) wherein a large business shall take a new
Entrepreneur, 16 Special Recognition Awards, 13 or a small enterprise under its supervision and
Quality Product Awards and 3 Awards for nurture it.
Research &Development Efforts in SSIs.
The Hon’ble Union Minister of Finance &
The National Awards to the Banks for Company Affairs, Shri Jaswant Singh while
showing excellence in SSI lending were also addressing the Convention acknowledged the
presented on the occasion. While the first awards great strides made by small scale industries even
was bagged by the Bank of India for surpassing during the era of economic liberalization and its
the targets for priority sector lending set by significant contribution towards the economic
Reserve Bank of India and registering impressive
development of the county and promised all
growth rates of advances to the Sector in 2001 –
possible help from the Government for making
2002, the Second Award went to the Punjab
the units a viable entity in the global competitive
National Bank for its commendable efforts for
environment. The Hon’ble Minister announced
lending to the SSIs, the State Bank of Hyderabad
a number of concessions for boosting the morale
was conferred the Special Award for its creditable
and determination of the units in the small scale
performance in lending to the Sector.
sector to convert the challenges thrown by the
The Hon’ble Union Minister of Finance & changed circumstances into opportunities-
Company Affairs also released two publications restoration of excise exemption limit of Rs. 1 crore
- a Special Issue of “Laghu Udyog Samachar” – to the Ball and Roller Industries, making effective
a quarterly journal on Small Scale Industries and with immediate effect the pre-Budget limit for
a Book entitled “ Small Scale Industries: An Engine the Hand-Processing Sector and exemption/
of Growth” specially brought out by the Ministry relaxation of Duty on Bicycle parts and
for the National Convention. accessories. The Department of Company
Affairs is examining the feasibility of a Limited
Smt. Vasundhara Raje, then MOS(SSI) Partnership Act as being demanded by SSIs, the
(Independent Charge) in her address touched Hon’ble Minister, added.
upon the initiatives and programmes undertaken
by her Ministry during the last 3 years aimed at The post-lunch session of the Convention
promoting and enabling the units in the Sector- witnessed two Technical Sessions on “Benefits of
Comprehensive Policy Package, WTO and IPR IPRs for SSI’s and “SIDBI Foundation for Micro
Awareness, Implementation of Bar Coding, Use Credit” by Dr. G.S. Jaiya, Dy Director, WIPO,
of Anti-Dumping Provisions, Sector specific Geneva and Shri P.B. Nimbalkar, CMD, SIDBI
National Programmes in collaboration with respectively. Each of the Technical Sessions was
UNIDO, Technology Resource Centres, followed by an Open House Discussion wherein
Knowledge Portal for SSIs and the Third Census the representatives of SSIs, Support Organisations,
for SSI Units. The Hon’ble Minister also elaborated Entrepreneurs and other concerned in promotion
the new programmes the Ministry is initiating for and development of the sector put forward their
the units in the Sector to take maximum respective point of views for the sustenance of

31
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

the units in the sector besides asking questions providing working capital and term loans through
on the subjects dealt with in the Technical a single window. To promote credit flow to small
Sessions. borrowers, the composite loan limit was
increased from Rs. 5 lakh to Rs. 10 lakh. Limit
The day-long Convention was inter-alia was further raised to Rs. 25 lakhs in
attended by the representatives of the States and Comprehensive Policy Package.
Union Territories, Members of Parliament, Chief
Executives of Banks and financial Institutions, NEF SCHEME TO COVER PROJECTS UPTO RS.
Representatives of Planning Commission and 50 LAKH
other organs of the Government, Toy Association
of India, WIPO, UNIDO and other multilateral SIDBI operates the National Equity Fund
institutions, Industry Associations and Scheme, under which equity support is provided
entrepreneurs from all across the county. for projects upto Rs. 10 lakhs. To further help SSI
entrepreneurs, this limit was raised to Rs. 25 lakh
The Third Convention proved as useful and from April, 2000. The coverage of the Scheme
productive as the earlier ones. has now been extended to metropolitan areas
as well. Further 30% of the investments will be
MEASURES FOR IMPROVING FLOW OF earmarked for the tiny sector. The project cost
CREDIT TO SSI SECTOR THROUGH was further enhanced to Rs. 50 lakh in the
ANNOUNCEMENT MADE IN UNION Comprehensive Policy Package.

BUDGET AND COMPREHENSIVE


SPECIALISED SSI BANK BRANCHES IN EACH
POLICY PACKAGE DISTRICT AND SSI CLUSTERS

COLLATERAL SECURITY DISPENSED WITH FOR The Hon’ble Finance Minister has urged
LOANS UPTO RS. 5 LAKH
the public sector banks to accelerate their
programme of SSI Branches to ensure that every
The requirement of providing collateral
district and SSI cluster within districts are served
security is a major bottleneck to the flow of bank
by one specialized SSI bank branch. SSI branches
credit to very small units. RBI had issued
are being asked to obtain ISO certification.
instructions to dispense with the collateral
requirements for loans upto Rs. 5 lakh. The limit
OPERATION OF TDMF SCHEME EXTENDED
has been further enhanced to Rs.15 lakhs in
FOR 3 YEARS
deserving cases based on the commercial
judgement of individual banks through
SIDBI is presently administering the
the announcement in the Union Budget
Technology Development Modernisation Fund
2002-2003.
Scheme for assisting technology development
and modernization of SSI units. The Scheme has
COMPOSITE LOAN SCHEME LIMIT
certain concessional features including interest
ENHANCED TO RS. 25 LAKH
at prime lending rate for direct assistance and
refinancing at 2% below prime rate for indirect
The existing Compostite Loan Scheme of
finance. The operation of this Scheme is being
SIDBI and Banks helps small borrowers by
extended by another 3 years.

32
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CREDIT GUARANTEE FUND SCHEME FOR Subsidy aims to provide 12% capital
SMALL INDUSTRIES subsidy on project of technology
upgradation in specified sub-sectors.
The Salient features of the Scheme are : ● At present, 14 product/sub-sectors are
● The Scheme was launched on 30th August, covered.
2000. ● SIDBI acts as the nodal agency.
● Credit Guarantee Fund Trust created with ● Duration of the Scheme is from 1st October,
Headquarters in Mumbai. 2000 to 30 th September, 2005 or the
● A contribution of Rs. 125 crore made to sanction of Capital Subsidy of Rs. 600
the Fund in 2000-01. ( Rs. 100 crore crore, whichever is earlier.
Government of India + Rs. 25 crore SIDBI). ● Monitoring of the Scheme through
During 2001-2002, the corpus fund has Governing & Technology Approval Board
been raised to Rs. 200 crore. During 2002- chaired by the Secretary ( SSI ).
2003 the corpus fund is being enhanced
by Rs. 127 crore as Government LAGHU UDYAMI CREDIT CARD (LUCC)
contribution. SCHEME
● So far 34 member lending intuitions
including Banks /RRB’s/NSIC, NEDFI are Encouraged by the response given to
participating in the scheme. Kisan Credit Card Scheme, the Government
● As on 31st January, 2003, 7258 cases have launched a Laghu Udyami Credit Card
been provided guarantee cover under the Scheme ( LUCC) in the Budget 2002-03. The
scheme on loans amounting to Rs. 79.77 Public Sector Banks would issue Credit Cards
crore. to small businessmen, retail traders, artisans,
small entrepreneurs, professionals and other
CREDIT LINKED CAPITAL SUBSIDY SCHEME self-emplyed persons including those in the
tiny sector. The scheme aims at providing
The Salient features of the Scheme are : simplified and borrower friendly credit
● The Scheme of Credit Linked Capital facilities.

33
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

C E N S U S
The Third Census of Small Scale Industries the third census, all SSI units registered upto 31st
has been launched all over India during October, March, 2001 will be covered on complete
2002.The field operations of the Census were enumeration basis. Besides, the un-registered
entrusted to the State/UT Directorate of Industries. sector will also be covered through a sample
About 15,000 enumerators have been engaged survey in 10,308 villages and 9,513 urban blocks.
by the directorates for data collection work, which About 2 lakh unregistered SSI units are likely to
are going to be completed by March, 2003. In be surveyed through this approach.

Performance of Small Scale Industries


YEAR Number of units F ixed P roduction Employ- Export
(lakh Nos) Investment ment
R egd
egd.. Un-Regd
Un-R egd..
egd Total PProduction
roduction (Nos (Rs.
(at (at (at in crore)
current current constant lakhs
P rices) prices) prices)
(Rs. in crores)
(1) (2) (3) (4) (5) (6) (7) (8) (9)
At 1993-94
Prices
1992-93 16.48 5.98 22.46 N. A 209300 225626 134.06 17784
(10.01) (2.40) (7.88)
1993-94 17.76 6.12 23.88 N. A. 241648 241648 139.38 25307
(7.77) (2.34) (6.32) (7.10) (3.97)
1994-95 19.44 6.27 25.71 N. A 298886 266054 146.56 29068
(9.46) (2.45) (7.66) 23.69 (10.10) (5.15)
1995-96 20.18R 6.4 26.58 N. A. 362656 296385 152.61 36470
(3.81) (2.07) (3.38) 21.34 (11.40) (4.13) (25.46)
1996-97 21.53R 6.5 28.03 54698 # 411858 329935 160 39248
(6.69) (1.56) (5.46) (10.2) 13.57 (11.32) (4.84) (7.61)
1997-98 22.82 R 6.62 29.44 60552 # 462641 357749 167.2 44442
(5.99) (1.85) (5.03) (10.7) 12.33 (8.43) (4.5) (13.23)
1998-99 24.06 R 6.74 30.8 66106 # 520650 385296 171.58 48979
(5.43) (1.81) (4.62) (9.1) 12.54 (7.7) (2.62) (10.21)
1999-00 25.26 R 6.86 32.12 72633 #* 572887 416736 178.5 54200
(4.99) (1.78) (4.29) (9.8 10.03 (8.16) (4.03) (10.66)
2000-01 26.14 6.98 33.12 79703 639024 451033 185.64 69797$
(3.48) (1.75) (3.11) (9.7) 11.54 (8.23) (4.00) (28.78)
2001-02 27.31 7.11 34.42 84329 690316 478456 192.23 71244
(4.50) (1.80) (3.91) (5.8) (8.03) (6.08) (3.55) (2.07)
Projection for 28.49 7.23 35.72 92087 742021* 514292 199.65
2002-03 (4.32) (1.77) (3.79) (9.2) (7.78) (3.86)
NOTE: (R) - Revised, (#) - Revised Estimates, (#*) – Based on wpi Feb2000. Figure in brackets gives percentage growth
over previous year. ($) – Revised on dated 20.5.2002. *= Current prices are based on WPI for 2001-02, Projections for
02-03 are worked out by taking average of last three years growth rates achieved,

34
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

35
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - V

OTHER SCHEMES OF THE MINISTRY

SCHEME ON SURVEYS, STUDIES AND TRADE RELATED ENTREPRENEURSHIP


POLICY RESEARCH ASSISTANCE & DEVELOPMENT FOR
WOMEN (TREAD)
In the context of the liberalization and
globalisation of the economy the competitive The scheme on Trade Related
strength of the small scale industries needs to Entrepreneurship Assistance & Development for
be enhanced through suitable policy measures Women (TREAD) has been designed to empower
by which the units can be made operational and women economically through the development
efficient. In order to formulate sustainable policy of their entrepreneurial skills by eliminating
constraints faced by women in matters of trade.
frameworks, operational strategies and action
It includes assistance in the form of loans, grants
plan there is a need for getting relevant data as trade related training, trade information,
also surveys, studies and investigations including counselling and extension activities relating to
producers and customers feedback on the product and market development. Under the
problem areas of units in the small scale, village, scheme, women entrepreneurs from any part of
khadi and coir sectors. Such data collection, the country may take up any non-farm activity
surveys, studies and investigations etc. are in a group mode through Non-Governmental
undertaken which includes the research studies Organisations (NGOs). The grant component is
upto one-third of the total project cost. At least
relating to problems and prospects of industrial
70% of the grant component are utilized for
units in small scale, khadi, village and coir sectors
direct benefit of women entrepreneurs and the
to improve the viability of these industrial units, balance 30% of the grant are used by the NGO’s
studies on problem of finance, sickness, raw for capacity building.
material and marketing aspects of industrial units,
technological problems, industrial potential NATIONAL ENTREPRENEURSHIP
surveys consisting of the various sub-sectors in DEVELOPMENT BOARD (NEDB)
the VSI sectors, feasibility studies, market surveys
and studies, evaluation of existing policy majors The National Entrepreneurship Development
Board (NEDB) is the apex body for entrepreneurship
in the SSI, village industries, khadi, coir and studies
development in the country. It devises and
on micro-enterprises and micro-financing
recommends to the Government, schemes for
institutions etc. The Surveys, studies are entrusted promotion of entrepreneurship encouraging self-
to research, academic and training institutions, employment in small scale industries and small
registered societies and reputed individuals with business. The Board also recommends suitable
proven competence to undertake such facilities and incentives for entrepreneurship training.
assignments. Certain studies/programmes have been
undertaken under this scheme by various training
institutes of the Government.

36
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - VI

NATIONAL SMALL INDUSTRIES


CORPORATION (NSIC)
The National Small Industries Corporation ACTIVITIES
Limited is a public sector undertaking set up by
the Government of India in 1955 to promote, The National Small Industries Corporation
aid and foster, the growth of small-scale industries Ltd. (NSIC) was incorporated in 1955 with a view
in the country. NSIC helps the small scale to promote, aid and foster growth of Small
industries through its various schemes such as Industries in the country. During the year 2001-
hire purchase, equipment leasing, marketing - 02, the turnover was Rs. 759.33 crore as against
domestic as well as export, raw material Rs. 890.67 crore recorded during the year 2000-
assistance, single point registration, etc. Under 01. The Corporation incurred a net loss of Rs.
the hire purchase, NSIC supplies both indigenous 84.12 crore in 2001-02 as against Rs.52.46 crore
and imported machines on easy hire purchase during 2001-02.
terms to SSI units. Similarly, it also supplies both
indigenous and imported raw materials by SCHEMES AND PROGRAMMES
procuring them in bulk quantity at a concessional
rate. Further, it enlists competent SSI units and FINANCIAL SUPPORT
facilitates their participation in Government
purchase programmes. It conducts technical Machines on Hire Purchase and
training and entrepreneurship development Equipment Leasing
programmes in its various technical service The scheme to supply machines on Hire
centres. Purchase basis was launched in 1956 to help in
setting up of new small and ancillary industries
In the changing scenario of economic and to modernise to existing ones by supplying
liberalisation, NSIC has increased its training appropriate, modern and sophisticated
capabilities by entering into high-tech areas such machinery and equipment. Machines supplied
as computer application, electronics, etc. by the NSIC have resulted in creation of
Infrastructure and information support is provided employment avenues and production of wide
through Software Technology Parks and variety of items. The scheme has been useful for
Technology Transfer Centre. NSIC also provides the small-scale industries in rural and backward
concessional terms in its lending for development areas. Units promoted for SC/ST entrepreneurs,
of rural and backward areas and also extends technocrats, physically handicapped persons,
this facility for units promoted by entrepreneurs ex-defence personnel and women
from the weaker sections of the society. entrepreneurs are supplied machines on
concessional terms.

37
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

The Corporation launched Equipment sanctioned and annual fee of 1% on the


Leasing for modernisation, expansion and outstanding amount.
diversification of existing units. This helps the units
in becoming competitive both in terms of price Italian Line of Credit
and quality. The scheme provides 100% finance,
single window services for indigenous as well as UNIDO had carried out a study and
imported machines, tax rebate on full year rental highlighted the role of Indian small and medium
etc. enterprises for the growth of Indian economy an
favoured collaboration between Italy and India
Composite Term Loan Scheme at the level of single companies as well as at the
level of cluster to adopt the successful Italian
Under the scheme, assistance provided industrial development model to the Indian
to first generation entrepreneurs having industry. The Directorate General for
innovative ideas and viable projects. Maximum Development Cooperation of the Republic of
assistance of Rs.25 lakh is provided to tiny units Italy approved a soft loan of Lira 10 billion (Rs.
for procurement of land and building, machinery 2030 lakh approx.) as Italian Line of Credit in
and equipment and for working capital. The favour of Republic of India to be utilised for
scheme is linked with Credit Guarantee Fund financing the “Programme for the Development
under which loans are covered against payment of Small and Medium Enterprises”.
of one time upfront fee of 2.5% of the loan

Hon’ble Dr. C.P. Thakur, Union Minister for Small Scale Industry & Development of North East being shown “Soap
Making Plant” by Shri Rajiv Bhatnagar, Chairman-cum-Managing Director, NSIC during his visit to NSIC-Technical
Services Centre, Okhla, New Delhi

38
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

NSIC had been appointed as the Nodal units for making their raw material cost
Agency by the Government of India for operating competitive.
the “Programme for the Development of Small
and Medium Enterprises” in certain selected Bill Discounting
sectors. The Line of Credit can be utilised for the
acquisition of Italian machinery, technology/ Bills due to SSIs from eligible purchasers
service as correlated to the identified sectors. including electricity boards and other Govt
The term loan for this purpose is available to small Deptts. are discounted under this scheme and
and medium enterprises at concessional rate of arrangements are made to ensure that the
interest and on easy terms and conditions. The purchaser makes the payment to the
Corporation on the due date. The seller SSI units
Corporation has launched the scheme by
gets the payment of supply bills on discounting
organising Industrial Campaigns/Workshops.
by the corporation and the amount advanced
on discounting is adjusted on realization of
The NSIC provided financial support of Rs.
payments of bills from the purchaser. This
23.97 crores during 2001-02. In the first eight
scheme mitigates the problem of units for
months of 2002-03 financial support of Rs. 11.63
delayed payment by the purchaser thus boosting
crore has been provided.
working capital availability. During 2001-02, Bills
of SSIs amounting to Rs. 76.42 crore were
Raw Material Assistance discounted. During the first eight months of the
year 2002-03, assistance of Rs. 55.34 crore has
Making available the right type of raw been provided.
material at appropriate price and in time not
only enhances the competitive capacity of the MARKETING ASSISTANCE SCHEME
small units and also arrests their sickness. Raw
material supply to SSIs help them concentrate Marketing, is though essentially an
on other areas of the production. Through its entrepreneurial function, yet in today’s liberalised
distribution system, NSIC has been environment institutional support is needed by
supplementing the availability of raw materials the SSIs in this area. In view of the liberalised
to a large number of small industries scattered regime, there is greater and intense competition
all over the country on the “off the shelf basis”. from the large multinational companies. This is a
During 2001-02, Raw Material Assistance of Rs.
support activity. NSIC has been acting as a
456.48 crore was provided to SSIs. During the first
facilitator to promote the marketing of SSI
eight months of 2002-03, an assistance of Rs.
products. NSIC has, over a period, devised a
314.12 crore has been provided.
number of innovative programmes for the
support of SSIs in the field of marketing, both in
In order to facilitate the SSI units in
and outside the country.
procurement of basic raw material at a
competitive price, the Corporation entered into
an MoU with NALCO for providing Aluminium as
Internal Marketing
raw material on behalf of the requirement of
associated units. The Corporation gets quantity The Corporation takes up marketing of
and other discounts because of bulk purchases products manufactured by SSIs within the country
and a portion of the same is passed on to the by:

39
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

( a) Securing institutional orders or participating Many small units, which had started their export
in tenders floated by Government business with the assistance of the NSIC have
Purchase agencies/Deptts. and PSUs. The now acquired sufficient experience so as to be
objectives are to ensure fair margin to able to export directly. NSIC also supplies projects
products of goods and to make availability on turnkey basis to developing countries. During
of quality goods at fair price to the 2002-03 Corporation continued its efforts to:
consumers. Under the Internal Marketing
Support Programme, the Corporation ● Accelerate Export of quality products of the
provided assistance of Rs. 13.90 crore small-scale units.
during the first eight months of 2002-03. ● Facilitate easier access to SSI’s in
established global markets.
(b) C o n s o r t i a a p p r o a c h – Small units ● Inducting small enterprises in India to
producing the same products are brought export markets.
under one umbrella in the form of a ● Effectively display product and
consortium under this scheme. The technologies of small-scale industries at
Corporation explores markets and secures international forums.
bulk orders, which are farmed out to small
units in tune with their production capacity. The Corporation participated in
Testing facilities are also provided or International Trade Fair in which products of small-
arranged to enable the units to improve scale sector were displayed and export orders
and maintain the quality of their products also obtained. During the first seven months of
and supply them conforming to the 2002-03, the exports of the Corporation were to
standard specifications. the tune of Rs. 4.28 lakh.

Many SSIs engaged in the manufacture PROJECTS EXPORTED


of Handmade paper, Office stationery,
Exercise notebooks, G.I. Pipe fittings, Pipe During the visit of Hon’ble President of
locks, Tool kits, Paints, Solar lights, Hospital Indonesia to India, an MoU was signed between
clothing, X-ray items, Surgical goods, the Government of India and Government of
Veterinary Equipment, Apple juice and Indonesia pertaining to mutual cooperation,
Shoes have been supported under the NSIC has been made the implementing agency
schemes. This is an ongoing programme for setting up the Vocational Training Centre in
and quite a few such consortia are in the construction sector at Jakarta in Indonesia.
process of being formed.
Some of the MoU’s signed by the
Export Marketing Corporation for exports are with: -

NSIC has adopted a ‘single window’ ● Economic Development Board, Bahrain


assistance approach for export of small industries ● Small Industries Development Organisation
products. The Corporation has concerned itself (SIDO), Tanzania
with development of small units, which have ● Enterprise Botswana, Botswana
gradually acquired the capability to ● Mpulmalanga Provincial Government of
independently handle export of their products. South Africa

40
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

A techno-feasibility study has been organisations in different parts of the country.


undertaken by NSIC under ITEC Programme for During 2002-03, the NSIC participated/organised
setting up an Information Centre in Tanzania. The 11 Exhibitions up to Nov., 2002. Important
report has been submitted to Ministry of External Exhibitions which NSIC organised/participated in
Affairs. 2002-03 are:

INCOMING DELEGATIONS SWADESHI MELA, HYDERABAD

39 Delegations from various countries such NSIC- Technical Service Centre,


as Bahrain, UAE, Kenya, Nigeria, Congo, Ghana, Hyderabad participated in Swadeshi Mela held
China and Israel etc. were received during the at Hyderabad wherein all the technologies and
year for exchange of technologies suitable for products developed by the Centre were
SSIs. displayed. The response for the products in the
Mela was very good. It was awarded as the “BEST
PARTICIPATION IN EXHIBITIONS STALL” in the Government category.
AND ORGANISATION OF BUYER
SELLER MEETS UDYOG EXPO’2002, NEW DELHI

NSIC also provides marketing support by NSIC organised “Udyog Expo’2002” at


arranging buyer seller meets in different parts of Exhibition Centre, Okhla Industrial Estate, New
the country. These meets have become very Delhi a mega Industrial Show sponsored by
popular and have been instrumental in Ministry of Small Scale Industry, Government of
developing linkages between various India. It was a platform for technology seekers

Smt. Vasundhara Raje, then Hon’ble Minister of State (Independent Charge) for SSI (India) in a meeting with
H.E. Li Xueyong, Vice Minister, Ministry of Science & Technology (China) during her visit to China. Also seen in the
picture are Shri Rajiv Bhatnagar, CMD, NSIC, Indian Ambassador to China and Dr. C. S. Prasad, Addl. Dev. Commr.
(SSI) and Economic Advisor, Office of the Dev. Commr. (SSI), New Delhi

41
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

and technology suppliers to interact with each v) Low Cost Building Material
other. It displayed the capabilities of the small vi) Pharmaceutical & Chemicals
scale sector in India. The focus of the exhibition vii) Light Engineering (Builders Hardware&
was to showcase Machine Tools, Automobile Hand Tools)
Ancillaries, Agro & Food Processing Units and viii) Bio-Technology
Engineering Components. The units from different ix) Ceramic & Glass
States displayed plant & machinery conforming
to international standards. The machines on The NSIC has also invited a number of
display were Tissue Paper Making Machines, foreign delegations to visit Techmart. The
Bakery Plant, Powder Coating Machines, Lathe seminars on following two topics were also
& Power Press, Food Processing Machines, Blow organised:(a)Opportunities in Agro Bio-
Moulding Machines, Power Press & Shearing Technology, held on 20th Nov., 2002 (b)Export
Machines, Pet Bottle & Jar Blowing Machines and Prospects to Sweden, held on 22nd Nov., 2002.
Automatic Computer Stationery Printing
Machines etc. 75 SSI units from 12 States GOVERNMENT STORE PURCHASE
participated in the Expo. PROGRAMME
TECHMART 2002 Government Stores Purchase Programme
was started to promote marketing of small-scale
The NSIC organised Techmart India’ 2002 industries products to the government. Under
th
(10 International Technology Fair), New Delhi the programme, NSIC, as the designated nodal
from 14th – 27th November 2002 coinciding with agency registers the small scale units which have
the India International Trade Fair’ 2002. got necessary capabilities in terms of finance as
well as technology for providing goods to various
The fair provided a platform for the agencies. This programme of the Corporation
projection of the competency of the Indian has been fully computerised and a directory of
small-scale industries. It covered a range of units enlisted under the programme is published
engineering, manufacturing goods and service periodically which serves as a useful document
industries with emphasis on sector specific for sourcing from units competent to supply
approach. Various States & UTs of the country various items. Enlisted units are not required to
such as Delhi, Punjab, Haryana, J&K, Himachal pay any earnest money or security deposit under
Pradesh, U.P., Tamil Nadu, Rajasthan, Karnataka, this programme. The units registered with the
West Bengal, Andhra Pradesh, Gujrat, Maharshtra, Corporation have an advantage as these are
Madhya Pradesh, Chandigarh, and North-East recognised at par with the units directly registered
region etc. showcased their products & services. with DGS&D and are also not required to register
The sectors covered were: with other Government Deptts. as well as public
enterprises. The Corporation has registered
i) Leather & Leather Products 32,496 small scale units upto March, 2002 under
ii) Auto Components Government Purchase Programme. During the
iii) Agro & Food Processing current financial year, 473 new units have been
iv) Information Technology registered up to November 2002.

42
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

NSIC TECHNICAL SERVICE CENTRES Hydraulic control & Computer hardware &
software have been introduced in most of the
NSIC’s five Technical Service Centres Centres. During the year, new activities have
(NTSC) in Okhla (New Delhi), Rajkot, Howrah, been added like preparation of project reports
Chennai and Hyderabad continued to provide for SMEs, consultancy for ISO 9000, ISO 14000
valuable training and common facilities support certification, Energy Management Environment
to SMEs in the form of conventional and hi-tech Audit etc. With a view to make NSIC Technical
trained manpower, common facilities support in Service Centres and Extension Centres self-
the fields of precision machining facilities, sustainable, the production activities have been
specialised Testing Lab facilities and other quality closed and the thrust is given to value added

Hon’ble Dr. C.P. Thakur, Union Minister for Small Scale Industries & Development of North East being explained the
activities of Corporation by Shri Rajiv Bhatnagar, CMD, NSIC during his visit to Technology Tranfer Centre. Also seen in
the picture is Shri Shankar Aggarwal, Joint Secretary, Ministry of Small Scale Industries

upgradation services like Energy Management services like training and testing facilities. All the
ISO 9000 etc. With the lifting of Quantity five NTSCs at New Delhi, Rajkot, Howrah, Chennai
Restrictions and Globalisation, the Technical and Hyderabad enjoy the status of ‘In House R &
Centres have changed focus from conventional D Centres’ of Deptt. of Scientific and Industrial
to hi-tech training programmes. Hi-tech training Research (Ministry of Science & Technology).
programmes in the area of CNC & CAD/CAM,

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

The NTSCs trained 6850 technical persons NSIC-Technical Services Centre, Chennai
and provided common facilities support to 5782 has started Hi-tech training courses in Hydraulic
units during 2001-02. Up to Nov., 2002 NSIC and Pneumatic Control (with introduction of PLC)
trained 3069 persons and provided common IDEAS 8/3 modelling CAM, DNC and CNC
facilities to 2880 units. During the first seven Programming and Operation.
months of 2002-03, NSTCs have earned Rs.
377.20 lakh. NSIC-Technical Services Centre,
Hyderabad has facilitated project training for 70
New Technologies introduced and some professional postgraduate students like MBA,
of the achievements of NSIC-TSCs/NSIC-TSECs MCA and under graduates like B-Tech in the areas
of CNC Computers, Electronics and IT. Under
NSIC-Technical Services Centre, Rajkot has technology transfer, the Centre has developed
started Waste Minimization Circles in Jam Nagar, new products – air cooler control, solar lamp and
Gujarat in association with NPC. It is also a volt guard to protect home appliances and has
member in cleaner production and Audit Board transferred the technology to various interested
of the State Government. In addition, the Centre units.
is continuing its training in ISO-9000 and
environmental services.

Hon’ble Shri Tapan Sikdar, Minister of State for Small Scale Industries & Development of North East having discussions
with Shri Rajiv Bhatnagar, CMD, Shri R.K. Celly, Director (Plg. & Mkg), and other officers of NSIC
during his visit to NSIC, New Delhi

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

NSIC-Technical Services Extension Centre, Last year NSIC-TSC, Rajkot has conducted
Aligarh in association with ASOCHAM is organising 42 industrial energy audits. The Centre also
quality certification awareness programme in conducted an in-house training programme to
and around Aligarh. Under NPDLI Programme, the upgrade the professional skills.
Centre has imparted skill upgradation training for
Dindigul lock cluster in Tamil Nadu. The Centre has established a full-fledged
Environmental Laboratory and Gujarat Pollution
NSIC-Technical Services Extension Centre, Control Board has recognised this centre as a
Rajpura’s Electrical Testing Laboratory has got the SCHEDULE-I environmental auditor. So far the
recognition of NABL. Thrust is being given to Centre has successfully carried out 20
introduce calibration and other value added Environmental Audits.
services for the benefit of electrical industries in
the region.
REHABILITATION PROGRAMME FOR
PHYSICALLY HANDICAPPED PERSONS
NSIC-Technical Services Centre, Howrah
conducted specialized training courses for retired
NSIC-Technical Services Centre,
personnel under the scheme of Counselling,
Hyderabad has successfully trained 30 Physically
Retraining and Redeployment of rationalised
challenged students both Deaf & Dumb and
employees of CPSU’s. Testing Lab has been
Orthopedic in Electronics Line Operator
modified and new facilities have been added
Programme.
to cater the needs of SMEs for quality control and
upgradation.
SEMINARS/EXHIBITIONS
ENERGY CELL
The Technical Centres and Extension
Centres organised intensive campaigns,
The Government of India had initiated an
seminars, buyer seller meets for small scale
Energy Efficiency Programme for Indian Industries
entrepreneurs on various topics like Technology
under UNDP assistance in the year 1989. Under
offers for small entrepreneurs, entrepreneurship
this project the Indian Government had selected development, workshop on energy conservation,
four nodal agencies in each zone to implement energy audit, quality management and on
the Energy Efficiency Programme. NSIC was various schemes of the Corporation. 21
selected for implementing the programme for Technology workshops and seminars were
Western Zone. conducted up to Nov., 2002.

NSIC-Technical Services Centre, Rajkot has In addition to this Corporation participated/


been approved as energy auditor by Petroleum organised the following exhibitions:
Conservation Research Association, Government
of Gujarat, Maharashtra Energy Development Regional Office, Kolkata received “BEST
Agency and Gujarat Energy Development PARTICIPATION AWARD” for Small Scale in the 15th
Industrial Trade Fair, Kolkata. The fair was
Agency.

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

organised by Bengal National Chamber of Pura, Salama Chak, Qutab Nizam and other
Commerce and Industries. adjoining areas on the International Border at
Jammu, in association with Small Industries
Regional Office, Guwahati participated in Service Institute, J&K. The programme was
‘Dibrugarh Trade Fair’, wherein different activities organised to inculcate entrepreneurial skill in the
of the Corporation were explained to the visitors youth of the area.
of North Eastern Region. Dibrugarh in eastern part
of Assam was chosen to familiarize NSIC ’s SOFTWARE TECH0NOLOGY PARK
facilities to people of upper Assam and southern
part of Arunachal Pradesh. The fair received an Recognising the importance of the
overwhelming response. Software Industry and to extend infrastructural
support for the continued growth of the SMEs,
NSIC Technical Services Centre, NSIC has taken new initiatives to promote the
Hyderabad has conducted a seminar on software exporting SMEs by setting up Software
‘Embedded Systems and Real Time Operating Technology Parks exclusively for them.
System’(RTOS) in commemorating the National
Technology Day. The first Software Technology Park (STP) was
set up in 1995 at Okhla, New Delhi and second
NSIC-Technical Services Centre, Chennai STP has been commissioned in Guindy Industrial
organised a Skill-cum-Technology Upgradation Estate, Chennai.
Programme (STUP) on “Footwear Designing and
Pattern Cutting” in association with United Nation Software Technology Park facilitates SMEs
Industrial Development Organisation, under their to establish their units for the 100% export of
Cluster Development Programme and supported software and also act as the nodal point to
by Small Industries Development Bank of India activate software exports directly through NSIC.
(SIDBI) at Ambur. The programme was conducted
for semi-skilled workers/artisans-cum-owners of
NSIC-STP complexes provide facilities such
Tiny Shoe Manufacturing units in Ambur.
as high speed data communication through
VSNL/SATCOM and private ISPs, built up office
NSIC – Technical Services Centre, Rajkot
space, uninterrupted power supply, back up
organised a seminar on ‘Cleaner Production’ in
power through DG set, a modern business centre
association with Gujarat Cleaner production
centre, Gandhinagar and Rajkot Engineering and other administrative support and operates
Association wherein 90 participants from various under the Software Technology Parks of India
Industries and Engineering Colleges participated. Scheme (STPI).
The participants also appreciated the efforts to
promote Environmental Management and DOING BUSINESS WITH UN SYSTEM
Energy Conservation activities.
UN Supply Cell was set up to promote and
Branch Office, Jammu organised an develop the business of the SSI sector with the
‘Intensive Motivation and Awareness Campaign’ various United Nations Procurement Agencies
at R.S. Pura for the young entrepreneurs of R.S and is registered with most of these Agencies

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

like United Nations High Commissioner for Term Loan Schemes for extending financial
Refugees (UNHCR), United Nations Procurement assistance to the affected units in those areas.
Division (UNPD), Inter Agency Procurement To give publicity to the scheme of the
Services Office (IAPSO), United Nations Children’s Corporation, advertisements were released
Education Fund (UNICEF), and United Nations informing that Corporation shall be extending
Development Programme (UNDP) etc. financial assistance for construction of damaged
buildings as well as for procuring the plant
and machinery in and around Kutch-Bhuj
NSIC, UN Supply Cell has been regularly
areas.
participating in various UN tenders and has
entered into a frame agreement with United
ASSISTANCE TO RATIONALISED
Nations Office at Geneva (UNOG) for supply of
blankets to Procurement and Transport Section
WORKERS UNDER THE SCHEME OF
UNOG.
COUNSELLING, RE-TRAINING AND RE-
DEPLOYMENT OF EMPLOYEES OF
During the financial year NSIC-UN Supply CENTRAL PUBLIC SECTOR
Cell has been successful in generating business UNDERTAKINGS
from the SME’s sector to the tune of US$ 2.19
million (Rs. 1045.57 lakhs) by way of direct and The scheme of counselling, re-training and
indirect supplies to UN Procurement Agencies re-deployment of employees of Central Public
and NGO’s. Sector Undertakings was earlier known as National
Renewal Fund (NRF) and was set up by the
Government of India in Feb.’92 as a safety net
RECONSTRUCTION OF INDUSTRIAL
for workers, who might be adversely affected by
ESTATE IN AFGHANISTAN new Industrial Policy of July’91 and the economic
liberalisation. One of the objective of the scheme
Consequent to the visit of Minister of
is to suitably equip the rationalised workers for
Industries from Afghanistan, a team from Ministry
purposes of re-deployment so that they continue
of Small Scale Industries and NSIC visited
to be useful productive partner in the growth of
Afghanistan to make a preliminary survey of the
the nation. For this Govt. of India have arranged
devastated Industrial Estate at Kabul. The team
free training/re-training of these workers for wage
has since submitted a report for measures to be
employment and self-employment. This scheme
taken towards rehabilitation and reconstruction
is being implemented by the Govt. of India
of this Industrial Estate.
through few nodal agencies in the country

FINANCIAL ASSISTANCE TO appointed for undertaking the training/retraining


at different places in the country. NSIC is one
EARTHQUAKE AFFECTED ENTREPRE-
such Nodal Agency at Kolkata, Howrah, Hooghly
NEURS/UNITS IN KUTCH-BHUJ AREAS
and Ranchi.

In view of the devastation caused in various


Corporation has so far retrained,
parts of Gujarat due to severe earthquake, NSIC
counselled and surveyed more than 34,000
deputed an officer at DIC Bhuj for providing
workers under the programme.
assistance under Hire Purchase and Composite

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

ACTIVITIES IN THE STATE OF JAMMU & Institute, Central Staff Training and Research
KASHMIR Institute etc.

Inspite of disturbed conditions prevailing ISO 9000 CERTIFICATION


in Jammu & Kashmir, Branch Office Jammu is
active in programmes and activities. It has While the Corporation is in the process of
organised Intensive Campaigns on NSIC restructuring, it is also felt that quality of services
Schemes, EDP especially for women rendered by the Corporation is of paramount
entrepreneurs on cutting/tailoring & fashion importance in the context of competitive
scenario prevalent in the services sector.
designing. Industrial motivation campaigns in
the interior regions of J&K. It has also participated
NSIC being one of the nodal institutions for
in the EDPs, Campaigns, Buyer Seller meets and
providing facilitation services for developing
workshops, exhibitions organised by SISI, J&K,
competitiveness for the SSI sector, it is considered
Directorate of Industries and Commerce, ITCO
essential that the organisation by itself become
and other organisations.
a Quality based organisation. Therefore, the
Corporation has decided to go for ISO 9000
Jammu Office has been providing services
certification.
to SSI sector in J&K and shall continue to do so in
coming years also with intensified efforts in the Inducting ISO 9000 Quality Management
new added areas of activities such as Composite System would enable every employee in the
Term Loan Scheme, Italian Line of Credit, organisation to follow the set quality standards
Consortia etc. and in untouched areas of Ladakh and procedures to ultimately offer efficient and
and Kashmir. prompt services to the small industries sector.

HUMAN RESOURCE DEVELOPMENT & To begin with, the Corporate Office at Delhi
TRAINING and the Regional Offices have been taken up
for ISO 9000 Quality Management System
NSIC is laying much emphasis on its Implementation and Certification. Two seminars
Human Resource Development. Proper training on “ISO 9000 awareness” as well as on
of employees is essential for developing their “Document & Data Control, Procedure Structure,
skills, increasing their work effectiveness and Procedure Writing, Training Process, Maintenance
efficiency for achieving organizational & House Keeping and Corrective and Preventive
objectives. During the year 2000-01, twelve Action” have already been conducted at Head
in-house training programmes were conducted. Office and Regional Offices. Presently, the
In addition several employees were sponsored procedure writing and manual compilation are
all over the country for various training under process. It is expected to get the ISO 9000
programmes/seminars/workshops organised by Quality Management System Certification for the
reputed organizations like National Institute of Head Office and the eight Regional Offices by
Financial Management, AIMA, CII, Asian March,2003.
Productivity Organisation, Foremen Training

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

RESTRUCTURING OF NSIC ● NSIC would act as an information service


provider for the small scale sector –
The economic & business environment general information to all members,
during the last decade has undergone a radical specific information as per needs of the
change. Several new financial institutions SSI sector.
providing financial services similar to NSIC have
also come up. A need to redefine the role for ● NSIC would discontinue financial schemes
NSIC was therefore felt by the Ministry. M/s A.F. with effect from. 1st April,2007 except those
Ferguson & Co. (Consultant) was assigned for technology upgradation.
“Business Restructuring” Study of NSIC. Based on
the Consultant’s report and discussions with the ● The manpower in NSIC will be reduced
stakeholders the Ministry has approved the from the present 1117 to 850 by 31st
business restructuring of NSIC. The salient features March,2004.
of NSIC restructuring are:
MANPOWER
● The NSIC in future would focus on:
The total manpower of the Corporation as
i) Technology upgradation and quality on 31st March’2002 was 1214 as against 1346 in
improvement the previous year.

ii) Marketing Promotion


The manpower constitutes a very major
iii) International Cooperation component of the total revenue expenditure of
iv) Limited financial support for the Corporation. In order to make the
technology upgradation Corporation commercially viable, it was decided
to downsize and for this employees were given
● The NSIC would strengthen the retirement under Voluntary Retirement.
competitiveness of SSIs through cluster
approach in identified sectors. Sectors CITIZEN CHARTER
identified are Information Technology,
Leather and leather products, Knitwear NSIC is committed to efficient and prompt
and garments, Pharmaceuticals & service on the basis of objectivity, transparency
Chemicals, Auto Components, Light and courtesy in dealing with our citizens for the
Engineering (builders hardware, pumps, promotion and growth of small scale industries.
agriculture diesel-engines, hand tools, To inculcate these values in the employees, NSIC
bicycle components etc., Agro and Food has come out with the citizen’s charter. The
Processing, Bio-technology, Dimensional charter details the commitment expected from
Stones and Low Cost Building Material. the employees of the Corporation. Some of the
officers have been assigned to work as link
● It would strategically re-orient from ‘Direct between the public and Corporation, and public
Operator’ to ‘Facilitator’. can get in touch with these officers to get
guidance and help.

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MINISTRY OF SMALL SCALE INDUSTRIES
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CHAPTER - VII

INTERNATIONAL COOPERATION

Small enterprises have emerged as a Under the Scheme of International


focus area for forging and promoting trade Cooperation implemented by the Ministry of SSI,
and investment ties with other countries. a number of countries viz. USA, Germany, Italy,
The economic reform programmes envisages South Korea, U.K., Taiwan, Japan, Singapore,
the emergence of the Indian Industry as a Israel, Indonesia, Malasiya, China, Australia,
Egypt, Thailand and South Africa were identified
global competitor with substantial presence in
as thrust countries for promoting enterprise
the international markets. Technology
cooperation between Indian SSIs and SMEs
upgradation and modernization of SSI sector
abroad with a view to upgrading the capabilities
and promotion of export from this sector
of Indian SSI sector and make them competitive
are interlinked issues which are important
in the global market. Under the Scheme, the
objectives behind promoting international following activities are undertaken through
cooperation. Government funding:

Shri Atal Bihari Vaipayee, Hon’ble Prime Minister of India inaugurated the Global Summit on SMEs at New Delhi.
At inaugural function seen in the picture are Smt. Vasundhara Raje, then Hon’ble Minister of State
(Independent Charge) for SSI, Shri Ashok Pradhan, then Secretary, SSI & ARI, Shri Rajiv Bhatnagar, CMD, NSIC,
Shri A.C. Muthiah, President, FICCI and Shri P.B. Nimbalkar, CMD, SIDBI

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

i) Surveys and Studies to identify


market potential abroad through
consultants in India and abroad.
ii) Deputation and receipt of
Government officials and
representatives of associations of
SMEs for making preparatory
arrangements for seminars etc.
iii) Holding of seminars to promote
enterprise to enterprise interaction
to selected agencies both in India
and abroad. Common expenses
and expenditure on travel for the
two officials of Government and
organization/association – can be
fully borne by Government individual units Panel discussion during the Summit
to meet their own expenses. The visit of the
delegation is so arranged as to conincide Summit. During the Summit an exhibition of the
with important international fairs/exhibitions. products of Small and Medium Enterprises was
inaugurated by Smt. Vasundhara Raje, the then
The proposals received from various MOS(SSI)). During Summit various problems and
organizations and NGOs are considered by the challenges relating to small scale industries were
Screening Committee of the Ministry. deliberated, and the experience in other
countries were exchanged. The Summit
GLOBAL SUMMIT ON SMEs highlighted the need to build competitive
advantage around available technologies for SSI
The Ministry and Federation of Indian sector in India, capacity to absorb technologies
Chambers of Commerce and Industry (FICCI) etc. The need for SMEs to reorient themselves in
organised Global Summit on Small and Medium the knowledge economy, development of new
Enterprises (SMEs) in association with the National products and services as per the changing
Small Industries Corporation (NSIC) and Small market requirement etc. was also highlighted.
Industries Development Bank of India (SIDBI) on A booklet on “SIDO Tool Room & Training Centres”
20 th to 21 st December, 2002 at New Delhi.
Hon’ble Prime Minister of India inagurated the

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - VIII

SCHEMES OPERATING IN NORTH-EASTERN


REGION AND SIKKIM IN SSI SECTOR

The North-Eastern Region and Sikkim has Besides, the Corporation is running a
abundant natural resources. These resources Demonstration-cum-Training Centre at Guwahati.
can be utilized for industrial development.
However, inadequacy of supply of highly The NSIC has worked out promotional and
motivated entrepreneurs has hampered the development programme to cover the North-
promotion of self-employment and also rapid Eastern Region and Sikkim, considering the needs
industralisation. for intensifying promotional activities for the SSI
units. The development scheme of North-Eastern
In the North-Eastern Region and Sikkim Region and Sikkim pertain to:
most of the entrepreneurs are first generation
entrepreneurs. They need not only stimulation for ENTERPRISE BUILDING PROGRAMME
starting their enterprises but also support for
running them successfully till they can come to Enterprise Building Programme are aimed
a break even stage. In addition, to sustain their at motivating, training the first generation
entrepreneurial ventures they need continued entrepreneurs, creating awareness amongst
support from various agencies particularly from them about business environment, knowledge
banks and financial institutions. It is a fact that about Central and State Governments schemes
with entrepreneur we propser, without him we are in setting up the units and identification of
poorer. projects, means of financing etc.

Training will definitely play a major role for HIRE PURCHASE & EQUIPMENT LEASING
entrepreneurship development. But training SCHEME
module has to be designed keeping in view the
emrging opportunities and changes in Under Hire Purchase Scheme the
entrepreneurial field in the liberalized economic Corporation supplies both indigenous and
environment. This has to be done not only for imported machines to first generation
prospective entrepreneurs but also for existing entrepreneurs and existing units. Promotion of
entrepreneurs. small and ancillary industries and modernization
of the existing ones is done on easy Hire Purchase
The National Small Industries Corporation terms.
Limited (NSIC) having a Regional Office at
Guwahati is involved in promotion and support Under the Equipment Leasing Scheme,
of the SSI units in North-Eastern Region and Sikkim. supply of both indigenous and imported

52
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

machines on lease basis is done to existing units machining, castings, electroplating etc. to
for expansion diversification, technological SSI units.
upgradation and modernization.
To create awareness of its various
COMPOSITE TERM LOAN SCHEME developmental schemes and programmes, the
NSIC has been organizing seminars, intensive
The Composite Term Loan are granted for campaigns, exhibitions etc. Further, the NSIC has
the acquisition of land and building, machinery been giving wide publicity to its said schemes
and equipment and Working Capital to tiny units and programmes by putting hoardings at
with total assistance upto Rs.25 lakh. different places, distribution of pamphlets in local
language and also giving advertisements in local
MARKETING SUPPORT SCHEME newspapers.

To maintain the entrepreneurial spirit alive ACTIVITIES OF NSIC IN NORTH EASTERN


in the marketing efforts, NSIC motivates the small REGION
enterprises by providing them organizational
support. Under the marketing support A promotional and development
programme the Corporation provides among programme has been worked out to cover North
others the Raw Material Assistance. Through its Eastern Region namely Assam, Manipur,
distributions systems NSIC supplements the Meghalaya, Imphal, Nagaland, Sikkim,
availability of Raw material to a large number of Arunachal Pradesh, Mizoram and Jammu &
small scale industries. The Corporation ensure Kashmir and Hilly Areas, considering the needs
that the Raw Material reaches the genuine for intensifying promotional activities for SSI units.
manufacturing units.
The developmental programme pertains
Integrated Marketing Support Programme to substantial increase in Hire Purchase facilities
(Bill Discounting) for entrepreneurs, Marketing Support and
Common Facility Services to SSI units and training
Bills pertaining to supplies made by of artisans, which will result in improvement in
small scale units to eligible purchasers are manufacturing process and skill upgradation. For
discounted by NSIC upto a certain specified technological support a number of
limits. To mitigate the problems of delayed demonstrations, displays and on the short terms
payments by buyers against supplies made by skill upgradation intensive campaigns
small scale units. programmes are being conducted.

Training and Common Facility Services NSIC has organised a comprehensive


industrial directory for the North Eastern Region.
The demonstration cum traing center There are more than 250 small-scale units
helps in technological support and spreading registered with NSIC under the Single Point
of the technical culture. It imparts practical Registration Schemes to enable the SSI units to
and class training in several trades. It also participate in the Government Tenders by
provides Common Facility Services for testing, acquiring benefits of the scheme.

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

INDIAN INSTITUTE OF ENTREPRENEURSHIP The Scheme has been given special


(IIE), GUWAHATI attention in the States of Jammu and Kashmir,
Himachal Pradesh and Uttranchal to give thrust
The Indian Institute of Entrepreneurship IIE), for improvement of infrasturctural facilities for
an autonomous body at Guwahati, is under the setting up of the small/tiny units in these states.
administrative control of Ministry. The Institute is The share of the Central Government for setting
organizing training programmes and undertaking up the IID Centre will be Rs.4.00 crore, in the form
research and consultancy activities in the areas of grant, while SIDBI will give loan for an amount
of small industry entrepreneurship and self of Rs.1.00 crore. The State Government will
employment. The institute conducts about 70 have the option of investing their own funds
programmes, seminars, workshops etc every as equity in lieu of SIDBI loan. Therefore, the
year. financial pattern for these States will, therefore,
be in the ratio of 4:1 between the grant from
INTEGRATED INFRASTRUCTURAL Government of India and State share/loan from
DEVELOPMENT (IID) SCHEME SIDBI.

It is a Central sector scheme, launched in OTHER SCHEMES:


1994, in which the Central Government and
Small Industries Development Bank of India Transport Subsidy Scheme was introduced
contribute to each IID Centre Rs.5 crore in the in 1971, with a view to promoting industrialization
ratio of 2:3 and the cost in excess thereof and in hilly remote and inaccessible areas. The
the cost of land is met by the concerned State scheme has been extended upto 31.3.2007 for
Government. However, the financial pattern for North Eastern Region.
the North-Eastern region is in the ratio of 4:1. The
share of Central Government is in the form of A proposal to establish a Tool Room and
grant and that of SIDBI as term loan. Under the Training Centre at Guwahati to create facilities
IID scheme, four IID Centres in Assam and one for manufacture of quality tools and dies and for
each in Manipur and Mizoram have been training in Tool Making is under consideration.
sanctioned.

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - IX

USE OF OFFICIAL LANGUAGE


Hindi is the Official Language of the Union possible. Similarly, efforts were also made to send
of India and the Government policy is aimed at letters in Hindi to Central Government offices
progressive use of Hindi in official work. Effective located in region ‘C’ as per targets laid down in
steps were taken during the year in the Ministry the Annual Programme. About 57%
of Small Scale Industries to ensure the correspondence in region ‘A’ and 59% in region
compliance of the Official Language Policy of ‘B’ were done in Hindi.
the Government, implement the annual
programme and comply with the orders of the SECTIONS SPECIFIED FOR WORKING IN
President on recommendations of the HINDI
Committee of Parliament on Official Language.
Consequently, there has been a constant Section, notified for doing cent percent
progress in the use of Official Language in official work in Hindi, are working satisfactorily.
work in all these offices.
MONITORING AND INSPECTIONS
COMPLIANCE OF SECTION 3 (3) OF THE
OFFICIAL LANGUAGE ACT, 1963 In order to ensure compliance of the
Official Language Policy, monitoring is done
All documents such as Resolutions, general through reviewing the quarterly progress reports
orders, rules, licences falling under Section 3(3) in the meetings of the Official Language
of the Official Language Act and all papers laid Implementation Committee etc. During the
on the Table of the Houses of Parliament were year, 6 Sections of the Ministry have been
issued bilingually i.e. in Hindi and English. Some inspected by the Officers with a view to ensure
papers like general orders meant for use of Hindi and compliance of the Official
departmental use were issued in Hindi only. Language Policy.

REPLIES TO HINDI LETTERS HINDI TRAINING

All letters received in Hindi were replied in All officials of the Ministry have already
Hindi only. been trained in Hindi typing and Hindi
stenography. Ministry is already notified under
CORRESPONDENCE IN HINDI the Official Language Rule 10(4).

Letters to State Governments, Union MECHANICAL AIDS


Territories and their offices and offices of the
Central Government located in region ‘A’ and ‘B’ As per provisions of Official Language Act
were issued in Hindi to the maximum extent bilingual mechanical facilities have been

55
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

provided on mechanical equipments in the HINDI MONTH


Ministry. Computers and terminals have also
been installed as per requirement and facility to Hindi month was celebrated from 1 st
work in Hindi is also available on them. September and 30th September,2002 in the
Ministry. To encourage and motivate the
COMMITTEES employees for doing maximum official work in
Hindi, various competitions in Hindi were
To review the use of Hindi in the Ministry organized during this period. On the occasion
and to give advice to accelerate the use of Hindi, of Hindi Month, the messages of the Hon’ble
a Hindi Advisory Committee exists in the Ministry. Home Minister and the Cabinet Secretary were
circulated to the officers / employees in the
Department Official Language
Ministry and also to the officer-in-charge in the
Implementation Committee under the
Attached and Subordinate offices under the
chairmanship of Joint Secretary (In-charge-Hindi)
Ministry for information and compliance.
in the Ministry of Small Scale Industries have
already been constituted. Quarterly meetings
During the Hindi month competitions in
of these committees were held and important
Hindi typing, Hindi stenography, debate in Hindi,
decisions taken regarding the use of Hindi in
Hindi essay and noting and drafting in Hindi
official work to ensure compliance of these
General Knowledge etc. were held and a large
decisions and follow up action.
number of officers and employees participated
in it with great enthusiasm.

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MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - X

VIGILANCE ACTIVITIES
MINISTRY OF SSI of the Central Vigilance Commission or
otherwise;
The Vigilance Unit of the Ministry is headed ● obtaining second stage advice of the
by a Chief Vigilance Officer(CVO) of the rank of Central Vigilance Commission wherever
Joint Secretary appointed on the advice of the necessary; and
Central Vigilance Commission, who functions as ● obtaining the advice of the Union Public
the nodal point in the vigilance set up of the Service Commission in regard to the nature
Ministry. The secretariat assistance to the CVO in and quantum of penalty to be imposed
the Ministry of Small Scale Industries is given by wherever necessary.
the Vigilance Desk of the Deptt. of IP&P as the
Ministry of SSI being a small Ministry does not SMALL INDUSTRIES DEVELOPMENT
have its own independent vigilance unit. The ORGANISATION
Vigilance Unit is, inter-alia, responsible for the
The vigilance unit in the Office of the
following in respect of Ministry of Small Scale
Development Commissioner (Small Scale
Industries (SSI).
Industries), New Delhi is headed by a Chief
Vigilance Officer assisted by a Director (Vigilance)
● identification of sensitive areas prone to
with full complement of staff under him. In the
malpractices/temptation and taking
field offices viz. Small Industries Service Institutes,
preventive measure to ensure integrity/
Regional Testing Centres, etc., there are no
efficiency in Government functioning;
vigilance officers and vigilance cases are
● taking suitable action to achieve the
attended to by the Institutes, Regional Testing
targets fixed by the Department of
Centres, etc.
Personnel & Training on anti-corruption
measures; NATIONAL SMALL INDUSTRIES
● scrutiny of complaints and initiation of CORPORATION
appropriate investigation measures;
● inspections and follow-up action on the It is the only Public Sector Undertaking
same; under the Ministry of Small Scale Industries,
● furnishing the comments of the which has its own Chief Vigilance Officer
Department to the Central Vigilance appointed on the advice of the Central Vigilance
Commission on the investigation reports of Commission. The Chief Vigilance Officer of
the Central Bureau of Investigation; this Undertaking, functions independently of
● taking appropriate action in respect of the Chief Vigilance Officer of this department in
departmental proceedings on the advice all vigilance activities except in respect of

57
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

the Members of the Board of Directors and to time for streamlining the entry in the
the Chairman. building.

Preventive vigilance continues to receive iv) As regards the identification of areas which
priority attention with primary emphasis on are corruption prone in the Ministry of SSI, it
identification of area sensitive/ prone to may be stated that the Ministry does not
malpractices and temptation. The guidelines/ issue licences/registrations the question of
instructions etc. issued by the Department of identification of the areas does not arise.
Personnel and training and Central Vigilance
Commission from time to time in this regard are v) The cases of such of the officers who have
followed. Action taken inter-alia includes the attained the age of 50 years or have put
following:- in 30 years of service are reviewed under
FR 56 (j) in order to judge their suitability to
i) Regular and surprise inspections are being continue in service thereafter. The exercise
carried out by the Departmental Security is currently being done by the
Officer of the Department of Industrial Establishment Division of the Department
Policy and Promotion as a whole and in of Industrial Policy & Promotion.
the attached and subordinate offices by
their respective Departmental Security vi) Steps to put an end to the practice of
Officers. professional liaison men operating in the
Ministry have been initiated and a fresh
ii) Strengthening of vigilance machinery by list of such unwanted liaison –men has
way of appointing CVOs in the offices and been prepared. And also the entry system
organisation under the Ministry who look has been tightened and the enquiry-slip-
after the vigilance activities in the office/ system has been revitalized.
organization concerned, is also a
preventive measure. vii) In order to make officers conscious of the
provisions of Conduct Rules applicable to
iii) A strict watch is being kept on liaison men them as also to acquaint them with the
and on other persons. The Departmental importance of departmental security,
security instructions are reiterated from time these Rules/Instructions are reiterated from
time to time.

58
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

CHAPTER - XI

CITIZENS’ CHARTER
MINISTRY OF SMALL SCALE INDUSTRIES The objective is to promote, aid and foster
growth of SSI by providing them institutional
THIS CHARTER IS A DECLARA TION OF THE
DECLARATION support in the areas of marketing, export,
MINISTRY OF SMALL SCALE INDUSTRIES OF THE technology upgradation, training and common
GOVERNMENT OF INDIA INCORPORA TING
INCORPORATING facilities services. We aim at providing prompt
P O L I C I E SS,, M I S S I O N SS,, COMMITMENTS services/training needs to citizens through our
P A R T I C U L A R LLY
Y FOR SMALL SCALE field agencies like Small Industries Development
ENTREPRENEURS AND FOR THE PEOPLE OF INDIA Organisation and National Small Industries
IN GENERAL Corporation. so that the growth of SSIs is
enhanced, quality of production is improved
MINISTRY OF SSI and more employment opportunities are
generated.
The Ministry of Small Scale Industries (SSI) is
responsible for designing and formulating of OUR VALUES
policy for promoting the growth of small and
medium enterprises in the country. The actual The Ministry is committed to efficient and
implementation of the policy is done by the prompt service with transparency and courtesy
Ministry’s field organizations like National Small in dealing with citizens.
Industries Corporation Ltd. (NSIC), Small Industries
Development Organisation (SIDO) through their OUR COMMITMENT
Small Industries Service Institutes(SISIs) etc.
Implementing agencies have made their The Ministry will be dutiful, disciplined and
separate Citizens’ Charter. will respect the right of entrepreneurs and SSI
associations.
OUR MISSION
The Ministry will maintain and uphold the
Mission is to support the Small Scale confidentiality of the personal and business
Industries (SSI) by way of an advocacy role with information disclosed to it by citizens.
the various organization of Government, by way
of being provider of services to support SSI growth The continuously review the provisions and
and by the management of programmes enforcement of laws and regulations in
through Government and non-Government consultation with SSI associations and other
organisations for the benefit of small scale groups which help the SSI units.
industries.

59
MINISTRY OF SMALL SCALE INDUSTRIES
Annual Report 2002-2003

STANDARD FOR GENERAL PROCEDURE make phone calls to it on 011-23019219.

The correspondence, letters received by COMPLAINTS


the Ministry will be acknowledged in 15 days.
In case of any complaint, one may
RESPONSIBILITIES OF OUR CITIZENS telephone or send a letter or fax or visit our office.
However, before lodging such complaint, one
The Ministry expects continuous feed back may, first of all, use the Information and
from citizen on the quality of the services Facilitation Counter of the Ministry. In case, one
provided to them and on areas in which they is not satisfied, he may take up the matter with
expect improvements. the Grievance officer in this Ministry. The address,
phone number and fax number of the
ASSESSING OUT PERFORMANCE Information and Facilitation Counter and the
Grievance cell are
The Ministry will share out performance with
citizens through the media. IMPORTANT ADDRESSES

The Ministry will hold independent surveys (I) Information and Facilitation Counter
on citizen’s perceptions and assessment of our Gate No.4, Ground Floor,
performance. Nirman Bhavan, New Delhi-110 011.
Tel.No.23019219
GUIDANCE AND HELP
II) Grievance Cell
Director
The information and Facilitation Counter
Ministry of SSI
of the Ministry located on the Ground Floor, gate
Room No.254, Udyog Bhavan,
No.4, Nirman Bhavan, New Delhi will provide you
New Delhi-110011.
information on the services and activities of the
Tel. No.23015543
Ministry and related organizations of the SSI sector
No.011-2301 0886
and their growth. You can visit the counter or

60

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