Financial Daily from THE HINDU group of publications
Saturday, Jun 01, 2002
Industry & Economy
Single comprehensive law for SSI sector in offing
The Union Minister for Small-Scale Industries, Ms Vasundhara Raje, with the Alternate President, Assocham, Mr R.K. Somany, at a seminar on `SME-Strategising Marketing & Technology Upgradation' in the Capital on Friday.
NEW DELHI, May 31
THE Government proposes to enact a single comprehensive law for the small-scale industries (SSI) sector, encompassing the various provisions and regulations that currently govern the sector through different legislations.
"The SSI board will meet in the first week of July to take a final view on the matter'', the Minister of State for Small-Scale Industries (SSIs), Ms Vasundhara Raje, said in her inaugural address at a seminar on "SME-Strategising Marketing & Technology Upgradation'' organised by the Associated Chambers of Commerce and Industry of India (Assocham).
Mr S.K. Tuteja, Development Commissioner, SSI, told newspersons that the Administrative Staff College of India (ASCI) had already submitted a "draft report'' on the proposed legislation to the Ministry of Small-Scale Industries.
"At present, there are different provisions under various
legislations to govern the SSI sector. The effort would be to bring all these provisions under a single comprehensive legislation'', he said.
In her address, Ms Raje stressed the need for a further debate on the need for current form of definition of a small-scale industry, especially when the developed countries have adopted different parameters and approaches in their definitions.
The Minister advised large companies to assist the small firms in their marketing endeavours. She also said efforts were on to change the focus of National Small Industries Corporation (NSIC) in the context of the changing environment.
The alternate President of Assocham, Mr R.K. Somany, suggested that marketing companies should be recognised by the Small Industries Development Bank of India (SIDBI) for bank funding to assist SSI units in their marketing efforts.
Mr Tuteja held that the Ministry would strive to impress upon the Reserve Bank of India (RBI) to take a re-look at the newly introduced norm of charging interest on advances to the SSI sector on a monthly basis as against the earlier practice of charging interest on a quarterly basis.
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