50 More Items Out Of Small Sector List

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New Delhi, February 28:: The government has decided to remove over 50 items of knitwear, certain agricultural implements, auto components, some chemicals and drugs, and others from the list of items reserved for the small-scale industries (SSI) sector.

The government, it may be mentioned, had deserved 14 items in the footwear, leather goods and toy sectors. The net bank credit outstanding to the small scale industries increased from Rs 45,789 crore on March 31, 2000 to Rs 48,445 crore on March 31, 2001. In order to further increase the flow of credit, the limit for composite loans has been increased from Rs 2 lakh to Rs 5 lakh.

As of September 30, 2001, 391 specialised branches of public sector banks have been opened for small scale industries. The exemption limit for collateral security has been increased from Rs 25,000 to Rs 5 lakh. The project cost limit under the National Equity Fund has been increased from Rs 25 lakh to Rs 50 lakh.

The extension of credit to SSI has already been facilitated through the Credit Guarantee Scheme and the Credit Linked Capital Subsidy Scheme for technology upgradation.

On the lines of the Kisan Credit Card Scheme, public sector banks have decided to introduce the Laghu Udyami Credit Card Scheme for providing simplified and borrower-friendly credit facilities to small businessmen, retail traders, artisans and small entrepreneurs, professionals and other self-employed persons, including those in the tiny sector.

“The introduction of the Laghu Udyami Credit Card Scheme is a welcome move,” said Anil Bharadwaj, secretary general of the Federation of Indian Small and Medium Enterprises (Fisme). Fisme has also welcomed the reduction of import duties on copper, aluminium and polymers. “However, we feel, in the case of copper, there was room to reduce the imort duty further. At the level of 25 per cent, it is still very high,” said Mr Bharadwaj.

According to him, the only thing Fisme has found missing in the Budget is an initiative to tackle insolvency of small scale enterprises.