GOI and GOK Policy Towards SSI

8/8/2019 GOI and GOK Policy Towards SSI

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BY

DEEPAK KOTUR

DODDABASVARAJ



INTRODUCTION India is considered as one of the most deserved industrial

locations for setting up of industries.

A mong all the states, Karnataka has emerged as the leaderin IT and BT and knowledge based industrial sector.

A s we know that, Small Scale Industries(SSI) account for55% of the industrial production, 40% of the export and88% of the manufacturing employment.

Hence they are considered as dynamic and vibrant sector of the economy.



Primary Objective of the PolicyTo create environment for robust industrial growth.

To ensure inclusive industrial development in the

State.To provide additional employment.

To enhance the contribution of manufacturing sector.

To motivate the prospective entrepreneurs.

To develop Sector Specific Zones such as Steel,Cement, Sugar, A utomobile, etc.

To promote SSIs, especially industries in tiny sector.



Some of the policies are as followsGeneral

Labour Policies

Funding & FinancePolicy of Priority Credit

Energy & Environment

Pollution & Control Measures

Modernization& Training

Policy for Development of Information Technology



GeneralLabour Policies

The Minimum Wages Act, 1948

The Payment of Bonus Act, 1965Objectives

Scope and Cover age

Main Pr ovision

When to Consult and Ref er



Funding & Financ

Policy of Priority Credit

SSI units are entitled for pr ior ity.

Out of 40 per cent of bank advances ear mar k ed as pr ior ity sector .

40% is ear mar k ed for tiny units having investment in plant and

machiner y below R s. 5 lak hs.

Another 20% for tiny units, gover ned by Pr ime Lending R ateof the unit.

To ensure adequate and timely credit to the SSIs.



Energy & Envir nment

Pollution& Control Measures

Desir ing to use the wastes and effluents for manufacture of

new pr oducts. Non-small scale units require to o btain industr ial license.

To encour age adoption of pollution contr ol pr ocesses.

Encour age the industr ial units to install pollution contr ol

pr ocesses.Entre preneur s have to su bmit applications.



Modernization & Training

Policy for Development of Information

Technology

To pr ovide speedy and easy access to infor mation.

Infor mation Centre is computer ized and supplemented by

har d copies.

Counseling & infor mation pr ovided to the pr ospective

entre preneur s.

Technical and mar k eting data, if availa ble, relating to

small scale industr ies.



Industries VisitedMadhukar Engg. Component, Dharwad

Micro Precision, Dharwad

G-Tex Engg., DharwadKaynad Packaging, Dharwad



Important Points Noted during Interaction

with entrepreneur

O per ating under Gover nment shed.

Su bsidy only for new machiner ies, but mostly oper ating on 2nd

hand machiner ies.Only Madhukar Engg. Component, Dhar wad has tak en

Investment su bsidy, 10 year s back.

Managed by Single Individual

Not aware of the gover nment policy.



Conclusion

The entre preneur s are not aware of the gover nment policies and

schemes.

They had utilized only in the initial stage.

No eff ective utilization of the oppor tunities.

When ask ed, if they get to know a bout the policies, is they

going to tak e benefit of that par ticular policy.



Cont.One of them told that, he will mak e use of it, but other s

are not interested, because of

y Don¶t want to tak e R isk.y Believe that they are not going to benefit f r om it.

y Getting the benefit is not so easy.

y Happy with whatever they have or ear n.

y So busy that they have no time to look into such issues.



SuggestionsThese entrepreneur must be educated about the Govt.

Policies.

Govt. should conduct awareness program regarding itspolicy.

GOI and GOK Policy Towards SSI

Documents

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