Lack of credit hampers small scale industry: PHDCCI
Chandigarh, July 5 (UNI) Lack of adequate and timely credit has hampered the progress of the Small Scale Industry (SSI), PHDCCI Chairman SME Committee S K Sarkar said here today.
Addressing a seminar, Mr Sarkar noted that there was no dedicated credit delivery system for these industries as all banks insist on collateral security, which the small entrepreneurs with limited resources are unable to furnish.
Mr Sarkar pointed out that SSIs account for nearly 40 per cent of gross turnover in the manufacturing sector and 35 per cent of total exports.
During the year 2004-05, the sector recorded a production growth of 11.5 per cent over the previous year which was higher than that of industrial sector as a whole, he added.
Recognising the contribution made by the small scale industry to employment and industrial growth, it has become imperative to help the small scale sector overcome the competition from imports, Mr Sarkar added.
PHDCCI Chairman (SIB-Helpline) Sudarshan Sareen said the role of government institutions towards SSI sector have to be redefined and restructured, particularly in the wake of emphasis on productivity, efficiency, cooperation and competition.
He said so many regulatory approvals and long drawn procedures prohibit the prospective and existing small scale entrepreneurs from availing the facilities and concessions offered by the government.
Another major concern of the SSI units was the visits of inspectors to these units. The manufacturing sector was more troubled by the Inspector Raj in comparison to the service sector, he added.
It was beyond imagination as to how the future of SSI was expected to deliver goods with hassles of 57 types of inspectors and 158 forms of diverse types in order to register with various authorities, he added.
National Small Industries Corporation (NSIC) Director S K Sinha and State Bank of India DGM (SMEs) Ashok Nayyar also addressed the entrepreneurs and shared various financing facilities being extended to small industry units by their respective corporation.
The seminar was organised by PHDCCI jointly with National Small Industries Corporation Ltd (NSIC), a Central government enterprise, to create awareness about various schemes of the government and other institutions dealing with the small scale sector.
UNI HS CS DS1422