Indian Fiscal
Budget 1997-98: Full Text
Small Scale Industry
- As Hon'ble Members are aware, government has recently
enhanced the investment ceiling for plant and machinery
of small scale industries (SSIs) to Rs.3 crore and of
tiny units to Rs.25 lakhs. In order to ensure that credit
is available to all segments of the now-enlarged SSI
sector, the RBI is issuing instructions that out of the
funds normally available to the SSI sector, 40% will be
reserved for units with investment in plant and machinery
upto Rs.5 lakhs, 20% for units with investment between
Rs.5 lakhs and Rs.25 lakhs and the remaining 40% for
other SSI units.
- Government also announced recently that it will examine
carefully the other recommendations of the Abid Hussain
Committee on the SSI sector. With a view to reduce
wastage in agricultural commodities, improve quality and
hygiene and promote exports, the Advisory Committee on
reservation and dereservation has recommended that 14
items, now reserved for manufacture in the SSI sector,
may be dereserved. 822 items would still remain reserved
for production in the SSI sector. Government has accepted
these recommendations. The dereserved items include rice
milling, dal milling, poultry feed, vinegar, synthetic
syrups, biscuits, ice cream, a variety of automobile
parts and corrugated paper and boards. It is expected
that new investment and improved technology will flow
into these businesses.
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