Special package for small sector
Wednesday, 04 October 2006, 19:30 IST
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NEW DELHI: The ailing Indian small-scale industry was Wednesday given a boost with the announcement of a special promotional package 'Jawahar Satkar' by Finance Minister P. Chidambaram. "I understand the package is much needed for the Indian small scale industry (SSI) in order to face competition and other challenges," Chidambaram said while inaugurating the National Expo of Small, Khadi, Village and Coir Industries, here. The expo, being held at the Ashoka Hotel, will go on till Oct 7. The proposed package is aimed to focus on development of SSI clusters and improve their efficiency. "I believe cluster-based approach in this sector is the best and it has proved to be very useful across all the sectors," he added. Stressing on the various problems facing the SSI sector, Chidambaram said: "It is imperative that we now deploy modern technology for efficiency and consistent quality." Elaborating, he said: "I believe the most neglected part of the SSI are the micro enterprises, hence, the government along with SIDBI (Small Industries Development Bank of India) will expand the credit guarantee scheme." Emphasising that the SSI sector was ailing due to its inability to market products successfully, the finance minister said: "I urge the ministry of small scale industries to shed its old inhibitions and adopt new and innovative methods of marketing products, and to do that the best option is to involve the private sector." The promotional package would also make it mandatory to hold census of SSI units every five years and sample surveys every year. The package is likely to be approved by the Cabinet Committee on Economic Affairs by the end of this month.
Source: IANS
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