Financial Daily from THE HINDU group of publications
Saturday, Apr 16, 2005

Port Info

Group Sites

Industry & Economy - SSI

Reserved items for SMEs to stay: Sibal

Our Bureau

New Delhi , April 15

THE Minister for Science and Technology, Mr Kapil Sibal, has ruled out the possibility of abolishing the list of reserved items for SMEs (small and medium enterprises).

He was addressing a seminar on `Business Opportunities for Small and Medium Entrepreneurs in Knowledge Based Industries', organised by the Associated Chambers of Commerce and Industry of India (Assocham), on Friday.

Mr Sibal said, "At a time when the focus is towards creation of employment, further pruning of the reserve list makes no sense as this sector contributes 40 per cent of domestic production and 50 per cent of total exports by India."

He added that the Ministry has cleared a draft policy that envisages 100-per cent FDI in the biotechnology sector through the automatic route.

Meanwhile, the board of Small Industries Development Bank of India (SIDBI) has decided to meet on April 18 to take a decision to hike its direct lending target limit for SMEs to Rs 5,000 crore during 2005-06, from Rs 3,000 crore last fiscal. It also plans to set up a separate credit rating agency.

In the seminar, the SIDBI Chairman and Managing Director, Mr N. Balasubramanian said, "The 100-per cent subsidiary credit rating agency of SIDBI will enable SMEs to incur finances from various commercial banks at a lower rate.

With this agency in place, the banks will have no hesitation to extend credit to SMEs as SIDBI too endorses the ratings, which will encourage the banking system to lend liberally."

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ministry to set up welfare offices in Gulf States

Passenger car sales rise 18 pc in 2004-05 — Two-wheeler sales up 15.75 pc; CVs 22 pc
Inflation rises on costlier fuel, food
Scope for Indian cos to farm out in Zimbabwe
In the lurch
Centre approves Coimbatore industrial cluster proposal
India invites Qatari investments in hydrocarbon sector
Power situation `comfortable' in Kerala
Bumper year forecast for South Eastern Rly — Spurt in demand for rakes by sponge iron units
NECC says Kerala VAT provisions harmful to poultry
Premium liquor brands to attract higher tax in AP
Most VAT queries in Bengal relate to commodity classifications
Maharashtra traders on indefinite stir against VAT
Traders oppose inclusion of salt in VAT list
`Variations' in State laws to figure at VAT meet
SME growth pacts to be signed at Commonwealth-NSIC meet
Reserved items for SMEs to stay: Sibal
Dakshina Kannada dist chalks out plan to tackle water scarcity
Big FMCG brands regaining lost ground from low-priced warriors
Can we have a break after every ball?
Sun Micro offers `one for one' to colleges
Consortium to develop township at Whitefield
Chinese garments come cheap
Kinfra working with private agencies for bio-tech parks
BrahMos combat version tested
Lack of `reliable' partners holds back foreign investment in ceramic industry
AP: Small Savings Dept mops up Rs 4,811 cr
More industrial clusters coming up in Kerala
`Low engg design cost a boon'
Teeing off with EET
Standard deduction allowed to salaried taxpayer should continue: ICAI
National Jute Policy aims to boost exports — Shipments to be increased to Rs 5,000 cr by 2010
Exim Bank moots customised approach for plantation sector
Southern Splendour on the way

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line