Schemes and incentives
SIDO operates a number of schemes for the SSI sector. At a glance these are:-
Credit Linked Capital Subsidy Scheme for Technology Upgradation This revised scheme aims at facilitating technology upgradation by providing 15 per cent upfront capital subsidy with effect from the 29th September, 2005 (12 per cent prior to 29.09.2005) to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance availed of by them for induction of well established and improved technologies in the specified sub-sectors / products approved under the scheme. The revised ceiling on loan amount for availing the benefit under this scheme is Rs. 100 lakh (Rs. 40 lakh prior to 29.09.2005).
Credit Guarantee Scheme
Collateral free loans upto a limit of Rs.25 lakhs - for individual SSIs.
ISO 9000/ISO 14001 Certification Reimbursement Scheme -
Incentive Scheme of Reimbursement of expenses for acquiring Quality Management System (QMS) ISO 9000 certification/environment management (EMS) ISO 14001 certification to the extent of 75% or Rs.75,000/- whichever is lower.
- For individual SISIs/Ancillary/tiny/SSSBE units
Participation in International Fairs -
Full subsidy on space rent and shipment of exhibits of SSI units - for individual SSIs
Purchase and Price Preference Policy -
This is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from SSI by Central Government. Other facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual SSIs
Prime Minister's Rozgar Yojana-PMRY (Scheme of Ministry of ARI) -
Project limit upto Rs. 1 lakh for business and Rs.2.00 lakhs for other activities, subsidy and margin money upto 20% of project with balance as loan. Subsidy for NE twice that of rest of India - for entrepreneurs. SSIs
Cluster Development Programme
For promoting technology upgradation in clusters for a group of SME units of one industry.
Integrated Infrastructure Development (IID Scheme)
Assistance upto 40% or Rs.2.00 crores, whichever is less for setting up industrial estates for SSI units. For NE, assistance is 80% or Rs.4.00 crores - for State Governments/industry associations/ NGOs
Mini Tool Rooms -
Assistance upto 90% or Rs.9.00 crores, whichever is less for setting up new Mini Tool Rooms. For upgradation of existing Tool Rooms, assistance is 75% or Rs.7.5 crores - for State Governments
Testing Centres
Assistance upto a 50% or Rs.50 lakhs, whichever is less for setting up Testing Centres - for industry associations
Sub-Contracting Exchanges
One time grant for procurement of hardware and thereafter matching grant on tapering basis at 50%, 30% and 10% of running expenses, not exceeding Rs. 1.25 lakhs, Rs. 0.75 lakhs and Rs. 0.25 lakhs respectively during the initial three years, subject to a ceiling of Rs. 1.57 lakhs per exchange - for industry associations.
SSI MDA
The scheme offers funding upto 90% in respect of to and fro air fare for participation by SSI Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity material (upto 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50% upto Rs. 1 lakh) - for individual SSIs & Associations.
Assistance to Entrepreneurship Development Institutes
For strengthening training infrastructure in EDIs, assistance upto 50% or Rs. 50 lakhs whichever is less - for State Governments.
Scheme of Micro Finance Programme
Creating self employment opportunities is one way of attacking poverty and solving the problems of unemployment. There are over 24 crore people below the poverty line in the country. The Scheme of Micro-Credit has been found as an effective instrument for lifting the poor above the level of poverty by providing them increased self-employment opportunities and making them credit worthy. Total requirement of micro-credit in the country has been assessed at Rs.50,000 crore. Micro-credit programme works through NGOs/SHGs and the merit lies in weekly monitoring and refund of instalments. The rate of recovery under SIDBI’s Micro credit programme is as high as 98%. Though there are various Departments and Organisations implementing micro-credit schemes in the areas of activity falling under their purview but their total reach is very low i.e. not more than Rs.5,000 crore. Thus the existing programmes cater to only 5 to 10% of total requirements and there is considerable scope for expansion of such programmes.
In India, Micro-credit programmes are run primarily by NABARD in the field of agriculture and SIDBI in the field of Industry, Service and Business (ISB). The success of Micro-credit programme lies in diversification of services. Micro Finance Scheme of SIDBI is under operation since January, 1999 with a corpus of Rs. 100 crore and a network of about 190 capacity assessed rated MFIs/NGOs. Under the programme, total amount of Rs. 191 crore have been sanctioned upto 31st December, 2003, benefiting over 9 lakh beneficiaries. Under the programme, NGOs/MFIs are supposed to provide equity support in order to avail SIDBI finance
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