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Union Budget 2001-02 »
Finance Minister Speech : Small Scale Industries
Small Scale Industries
56. Government’s commitment to the Small Scale sector has been repeatedly demonstrated. A comprehensive policy package for this sector was announced by the Prime Minister on 30, August, 2000.
57. In order to encourage production and employment in this sector, the exemption limit has been doubled to Rs 1 crore from September 1, 2000.
58. The new Credit Guarantee Scheme of August 2000 has been provided budgetary support of Rs 100 crore in the current year. The limit of loan without collateral which was earlier fixed at Rs 10 lakh has been raised to Rs 25 lakh under this scheme. Already 7 banks have entered into an agreement with the Credit Guarantee Fund Trust that has been created to implement the scheme. A credit linked capital subsidy scheme for technology upgradation was launched in October 2000 envisaging 12 per cent capital subsidy. It is expected that loans to the extent of Rs 5000 crore would be made available to the SSI sector over the next 5 years under the scheme.
59. Our small-scale entrepreneurs have proved their competitiveness in providing over 35 per cent of national exports. To enable further new investment and technology upgradation in some of the key export oriented sectors, it is now proposed to dereserve another 14 items related to leather goods, shoes and toys.
Textiles
60. The Government has recently announced a New Textile Policy aimed at preparing industry for the new challenges of global competition. I am happy to announce a textile package comprising the following schemes:
l . A scheme for setting up Integrated Apparel Parks is being initiated. This will enable the dereserved readymade garment industry to set up modern units with the best infrastructure. A budget provision of Rs 10 crore has been provided for the year 2001-02.
l A strong and modern weaving sector is very critical for this purpose. At least 50,000 new shuttleless looms and the modernisation of 2.5 lakh plain looms to automatic looms is expected to take place by 2004 through funding from the Technology Upgradation Fund Scheme (TUFS). The budget provision under TUFS is being raised from Rs 50 crore this year to Rs 200 crore in the next year.
l The Cotton Technology Mission is being continued and strengthened. The budget provision is being increased from Rs 15 crore to Rs 25 crore.
l The budget allocation for Ministry of Textiles is being enhanced substantially from Rs 457 crore in 2000-01 to Rs 650 crore in 2001-02.
l I shall provide the details of the proposed fiscal changes in Part B of my speech.
Human DevelopmentHealth and Family Welfare
61. Recognizing the need for increasing investments in social sectors, the Plan allocation for the Ministry of Health & Family Welfare has been stepped up from Rs 4920 crore to Rs 5780 crore. This includes an allocation of Rs 180 crore for HIV/Aids Control Programme.
Indian System of Medicine
62. There is now a great interest worldwide in herbal products as people look for gentler forms of treatment devoid of side effects. We are establishing a Traditional Knowledge Digital Liberary to bring the knowledge already in the public domain in international languages to prevent the grant of patents. We are also introducing a new scheme for strengthening the State Drug Testing Laboratories and pharmacies. We propose to provide Indian Systems of Medicine and Homeopathy benefits similar to the pharmaceutical industry.
