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TECHNOLOGY DEVELOPMENT & MODERNISATION

Package for Tiny Sector

Tiny enterprises currently defined as those having investment in plant and machinery up to Rs. 25 lakhs constitute about 95% of the small scale sector. . The policy measures for the promotion of small, tiny and village industries announced in August, 1 991 envisaged a separate package of facilities and incentives for the promotion of tiny industries something distinct as compared to the large small scale units.

Government has taken various steps for the promotion of the tiny enterprises. These steps include earmarking of 60% of credit flowing to SSI sector under priority sector lending programme of banks for tiny units (40% for tiny units having investment in plant and machinery up to Rs.5 lakhs and 20% share to units having investment in plant and machinery between Rs. 5 lakhs to Rs. 25 lakhs).

Tiny enterprises, a large number of which are unregistered units, have been made eligible for same rate of excise exemption as available to registered units since 1 994-95. Excise exemption limit for SSIs including tiny units has been enhanced from Rs. 30 lakhs to Rs. 50 lakhs. This will give inducement to the tiny units for increasing their production.

Government has decided to adopt additional measures for the promotion of Tiny Enterprises by earmarking facilities for Tiny Units under the Integrated Infrastructural Development (IID) Scheme. The NSIC would earmark 40% of the assistance to the tiny units under various schemes viz., supply of machinery on hire purchase, marketing support, technology assistance, training facilities etc. In order to ensure flow of credit to tiny units, a consistent and higher flow of credit to tiny units, the SIDBI will endeavor that up to 60% of its refinance flows to tiny sector.

Modernisation and Technology Upgradation

To bring all the promotional schemes/activities of the Ministry of SSI & ARI relating to technology upgradation and modernization of the small scale sector under one umbrella, a Technology Management Division was set up in Small Industries Development Organisation (SIDO) in January, 1997. The areas to be covered under this division are :

i) Integrated Technology Upgradation and Management Programme (UPTECH)
ii) Incentive Scheme for Acquiring ISO- 9000 Certification
iii) Awareness & Motivational Programme on ISO - 9000
iv) Energy Conservation
v) Technology Trust Fund.

The achievement and progress made in the above scheme is given below :

1. Integrated Technology Upgradation and Management Programme (UPTECH)

UPTECH has been devised to cater to the technological needs of small scale industries on cluster basis. The first steering committee meeting was held in the month of Sept., 1 998. 1 2 clusters in small scale sector have been identified for taking up modernisation and technology upgradation programme during the 9th Five Year Plan.

Incentive Scheme for acquiring ISO-9000 Certification
ISO-9000 has become synonymous with quality for export of goods to other countries. The incentive scheme provides reimbursement of the charge for acquiring ISO-9000 certification to the extent of 75% of the cost subject to a maximum of Rs.75,000 in each case. The number of units assisted during 1997-98 was 88. An amount of Rs. 21 lakhs has already been approved out of the budget provision of Rs. 65 lakhs made during 1997-98 for reimbursement to 40 cases decided in the first meeting. It is estimated that 80 more cases will be reimbursed during the remaining part of the year.

Awareness and Motivational Programme on ISO-9000
During 1998-99, 10 number of 5 days Awareness cum Educational Programme on ISO-9000 and 25 number of one day Awareness cum motivational programme have been allocated to different organisations under SIDO. FICCI Quality Forum, New Delhi has been entrusted to prepare video cassette on ISO-9000 Quality System, for SSI Sector.

Energy Conservation
The specific consumption of energy in small scale sector is generally high in sectors like foundry, forging, re-rolling mills, glass and ceramics industries etc. The purpose of taking up the energy conservation is to create awareness about the advantages of new techniques of energy conservation. An amount of Rs. 20 lakhs has been made for B.E. 1998-99 for conducting programme viz. awareness programme/ preparation of video films/ energy audit etc. Energy conservation amount of Rs. 1.5 lakhs has been allocated to organise 25 workshops on quality conservation during 1 998-99 by various Small Industries Service Institutes (SISis) and Regional Testing Centres (RTCs). Tata Energy Research Institute (TERI) has been assigned preparation of an energy conservation plan for small scale industries located in NOIDA, UP.

Technology Trust Fund
A Technology Trust Fund to meet the technological needs of small scale industries has been created with a corpus fund of Rs. 150 lakhs contributed by the Government of India, Karnataka State Government and Karnataka Association. Some of NG0s have also been involved in this project. Government of India has already released a sum of Rs. 50 lakhs out of its share of contribution of Rs. 75 lakhs.