Minister calls for converting SSIs to medium level enterprises

New Delhi, June 19 (UNI) The Union Minister of Small Scale Industries (SSI) and Agro and Rural Industries (ARI), Mahabir Prasad called for a policy framework to convert small enterprises to medium level enterprises.

Addressing the seventh meeting of the Ministry's consultative committee here today Mr Prasad said the Goverment should encourage the small scale enterprises to adopt better technologies and be competitive in the present era of globalisation.

He said that the government was also in favour of micro enterprises and it is necessary that in India also the concept of micro, small and medium enterprises should be looked after jointly and a proper infrastructure should be developed for this sector.

He informed the Members of the Consultative Committee that Micro, Small and Medium Enterprises Development (MSMED) Bill 2006 was presented in the Lok Sabha on May 12, 2005 and after that it was sent to the Department related Parliamentary Standing Committee for their opinion. The Committee submitted its report on August 4 2005.

After that it was sent to a Group of Ministers. ''The Lok Sabha passed this Bill on May 18 2006 and the Rajya Sabha passed it on May 22, 2006 and now the President has also given his assent and we hope that very soon this Act will become a Law,'' he added.

The Minister said that keeping in view the decline in employment in the Khadi Sector and the stagnation in the sale of Khadi products, it was becoming necessary that the structure of Khadi and Village Industries Commission(KVIC) should be suitably restructured and the KVIC products should be made competitive in this era of global economy.

''The Government decided to rejuvenate the KVIC under NCMP and formed a ten-Member Expert Committee for this purpose which submitted its report in April 2005. The Government presented the Khadi and Village Industries Commission (Amendment) Act 2005 in Lok Sabha on August 22 last year which was passed by the Lok Sabha on February 27, 2006. The Rajya Sabha passed it on March 11, this year.

President Dr A P J Abdul Kalam has also given his concent to this bill on May 15 and it has now become an act,'' he added.

The Minister invited suggestions from the Members on the various policies and programme being implemented in the Ministry of SSI and ARI.

UNI/BKS ARB RN1858