SSI and Agro

New Delhi, Dec 31: With over 3.20 million units contributing 40per cent of India's gross industrial production and 35 per cent of itsexports, the Small Scale and Agro&Rural Industries sector willhelp the country in securing a prime position among growing economies.

During January to December 2006, the Government took several stepsto boost the Small Scale Industries (SSI) Sector which includedde-reservation of SSI items, formation of Micro, Small and MediumEnterprises Development Act, 2006, reconstitution of Khadi and VillageIndustries Commission (KVIC), National Minimum Social Security Scheme,Co-operation with other countries, expositions and conventions,motivational campaigns and buyers seller meets.

The Small Scale Industries and Agro and Rural Industries sector isone of the vibrant sectors of the Indian economy in terms of employmentgeneration, its share in industrial production and exports.

With a view to providing the SSI sector opportunities fortechnological upgradation and promotion of exports, items reserved forexclusive manufacture by SSI have been de-reserved from time to time.The de-reservation process involves extensive consultation with all thestakeholders.

Based on the consultations with the stakeholders and on therecommendations of the Advisory Committee, various items have beende-reserved from the exclusive list of SSI.

In the Budget Speech of 2006-07, the Finance Minister PChidambaram, announced a further de-reservation of 180 items from thelist. And accordingly 180 items were deserved during the year.

With this the number of items reserved for the SSI sector remained 326.

The Small and Medium Enterprises Development Bill 2005 was enactedin June 2006 and was renamed ''Micro, Small and Medium EnterprisesDevelopment Act, 2006''.

The Act aimed at facilitating the promotion and development ofsmall and medium enterprises in a competitive way. It seeks to empowerthe Central Government to notify programmes, guidelines or instructionsfor facilitating the promotion and growth of small and mediumenterprises.

The Act also empowers the State Governments to specify bynotification that provisions of Labour Laws as specified in Clauses9(2) will not apply to small and medium enterprises employing up to 50people. One of its primary objectives is to make provisions forensuring timely and smooth flow of credit to small and mediumenterprises.

The Act provides the first-ever legal framework for recognition ofthe concept of 'enterprise' (comprising both manufacturing andservices) and integrating the three tiers of these enterprises, namely,micro, small and medium.

The government reconstituted the Khadi and Village IndustriesCommission (KVIC) during the year appointing the Zonal Members, ExpertMembers in Science and Technology, Marketing, Rural Development,Technical Education and Training and the ex-officio Members of theCommission. Ms Kumud Joshi, Zonal Member (Western Zone) was appointedthe Chairperson of the Commission.

The UPA Government in its National Common Minimum Programme (NCMP)had declared that the functioning of the KVIC would be revamped.Towards these objectives, the government reconstituted the KVIC in Julythis year.

The Comprehensive National Minimum Social Security Schemerecommended by the National Commission for Enterprises in theUnorganised Sector (NCEUS), under the Ministry of Small ScaleIndustries and Agro and Rural Industries is being actively consideredby the government.

The report along with a draft Social Security Bill was presentedto the Prime Minister by Dr Arjun Sengupta, Chairman, NCEUS on May 16,2006.

The main features of the National Minimum Social Security Schemeare that all workers in the unorganised sector as well as those withoutany social security in the organised sector will be eligible toregister. The social security benefits include insurance for sicknessand maternity, life/accident and old age (in the form of a monthlypension).

The implementation of the scheme would cost Rs 7,637 crore in thefirst year and gradually rise to Rs 25,401 crore during the fifth yearwhen the coverage is extended to all the eligible workforce of about 30crore.

Mr Mahabir Prasad, Union Minister of Small Scale Industries andAgro and Rural Industries, visited Rwanda and Uganda during August 30to September 2, 2006 at the invitation of Government of Rwanda andGovernment of Uganda for cooperation in the promotion and developmentof small enterprises sector with both the countries.

A Memorandum of Understanding (MOU) was signed by Mr Prasad andthe Minister of Foreign Affairs and Cooperation, Government of Rwandafor forging alliance between the two countries in entrepreneurshiptraining, technology transfer, exchange of business delegations ofmicro, small and medium enterprises and participating in small industryexpositions.

India and Mexico signed the Annual Action Plan for 2006-07 in thefield of Micro, Small and Medium Enterprises (MSME) in New Delhi onSeptember 25, 2006.

According to the agreement, both the sides would establishsector-wise (industrial as well as services sector) areas of priorityattention for promoting trade and cooperation between MSMEs of the twocountries.

Some of the areas identified include Light Engineering (engineeringgoods, auto components, nuts and bolts), Information Technology, Gemsand Jewellery, Food Processing Machinery, Handicrafts, Garments,Chemicals and Pharmaceuticals, Hand Tools and Leather TreatmentChemicals etc. Besides, it was agreed upon to identify two jointprojects between Mexican and Indian MSMEs.

India and Mexico would also examine the possibility ofestablishing a Business Development Centre in each country forpromoting exports and investment and cooperate in the area of virtualtrade promotion.

As a first step, hypertext links between websites of the Ministryof Trade and Economy of Mexico and the Ministry of Small ScaleIndustries and Agro and Rural Industries were created during the JointCommittee Meeting.

The Plan further envisaged that both the sides would establishforums in the respective countries to facilitate joint ventures,licensing, sub-contracting and commercial alliances and distributorshipopportunities between Mexican and Indian MSMEs by sharing informationand experiences. Both the sides also agreed to exchange technicians andstudents for capacity building.

In order to promote the SSI Sector, the government organised andparticipated in many Expositions and Conventions. A four-day NationalExpo of Small, Khadi and Coir Industries under the aegis of theMinistry of Small Scale Industries and Agro and Rural Industries wasinaugurated by Finance Minister P Chidambaram in New Delhi on October4, 2006. Mr Prasad, presided over the function.

The then Defence Minister Pranab Mukherjee presented the NationalAwards at the National Convention of Small, Khadi, Village and CoirIndustries on October 7,2006.

The Small Industry Development Organisation (SIDO), an apex bodyunder the Ministry of Small Scale Industries and Agro and RuralIndustries implemented various schemes and programmes to assist thepromotion and growth of small enterprises.

It organised several Motivational Campaigns and Entrepreneurship Development Programmes in various states during the year.

The National Small Industries Corporation (NSIC) conducted variousbuyer-seller meets during the year to provide assistance and support toSmall Scale Industries.

These meets resulted in larger number of SSI Units becomingsuppliers to Public Sector Undertakings and Government Departments, byregistering such units under NSIC's Single Point Registration Schemeduring the meets.

The three autonomous institutes under the ministry, such as theNational Institute of Small Industry Extension Training (NISIET) atHyderabad, the National Institute of Entrepreneurship and SmallBusiness Development (NIESBUD) at New Delhi and the Indian Institute ofEntrepreneurship (IIE) at Guwahati also undertook various research andtraining programmes for entrepreneurship development in the SSI sector.

UNI