Policy measures for promoting Tiny & Small Enterprises
Government of India has announced policy measures for promoting and strengthening small, tiny and village enterprises on August 6th 1991.
Salient features of the new policy are;
Reservation of products for manufacture in the small scale sector to continue, units included in this list not to be subjected to compulsory licensing procedures.
Hike in investment limit in plant and machinery for small scale, ancillary and export oriented units retained as 60 lakhs, 75 lakhs and above 75 lakhs respectively.
Hike in investment limit in plant and machinery for tiny sector from Rs 2 lakhs to Rs 5 lakhs irrespective of location of the unit.
Industry related service and business enterprises to be recognized as SSI with investment limits on par with the tiny sector irrespective of location of the unit.
Women enterprises redefined. Criteria are major share holding and management control by women entrepreneurs.
Limit of the financial liability of new and non-active partners/ entrepreneurs to the capital invested.
Equity participation by other industrial undertakings including foreign companies up to 24%.
Support from National Equity Fund for new projects not exceeding Rs 10 lakhs of project cost.
Single window loan scheme enlarged to cover projects up to Rs 20 lakhs term loan with working capital margin up to Rs 10 lakhs.
Relaxation of certain provisions of labour laws.
‘Factoring’ services to be extended through commercial banks.
Suitable legislation to be introduced to ensure prompt payment of small industries bill.
Easier access to institutional finance – ensure adequate flow of credit.
Integrated infrastructure development to be pursued for small scale units.
Technology Development Cell (TDC) to be set up in SIDO.
Export development Centre to be set up in SIDO.
Technology information centres to be established to provide up-to-date Technology and marketing information.
Ensure adequate and equitable distribution of indigenous and imported raw material.
Encourage quality counseling and testing facilities.
Participants