|
In
order to protect, support and promote small enterprises as
also to help them become self-supporting, a number of protective
and promotional measures have been undertaken by the Government.
The
promotional measures cover:
-
industrial extension services
-
institutional support in respect of credit facilities,
-
provision of developed sites for construction of sheds,
-
provision of training facilities,
-
supply of machinery on hire-purchase terms,
-
assistance for domestic marketing as well as exports,
-
special incentive for setting up enterprises in backward areas
etc.
-
technical consultancy & financial assistance for technological
upgradation.
While
most of the institutional support services and some incentives
are provided by the Central Government, others are offered
by the state governments.
Small
Scale Industries in the 1977 Policy
The
main thrust of the new (1977) Industrial Policy was on effective
promotion of cottage and small industries widely dispersed
in rural areas and small towns. It became the policy of the
Government that whatever can be produced by small and cottage
industries must only be so produced. The list of industries
reserved exclusively for the small scale sector was significantly
expanded to include more than 500 items as compared to about
180 items earlier.
Tiny
Sector
Within
the small scale sector, the 1977 policy introduced special
attention to be given to units in the tiny sector, namely
those with investment in machinery and equipment upto Rs One
lakh and situated in towns with a population of less than
50,000 according to 1971 census figures, and villages. Schemes
would be drawn up for margin money assistance especially to
tiny units as well as to cottage and household industries.
District
Industries Centres
In
the past, there has been a tendency to proliferate schemes,
agencies and organisations which have tended to confuse the
entrepreneur. To remedy this, the 1977 policy proposed that,
in each district, there would be a District Industries Centre.
The DIC would take up economic investigation of the district’s
raw materials and other resources, supply of machinery and
equipment provision or raw material, arrangements, for credit
facilities, and effective set-up for marketing and a cell
for quality control, research and extension. The DIC would
link closely with the Development Blocks and with Small Industries
Service Institutes.
Effective
Financial Support
In
order to provide effective financial support for promotion
of small village and cottage industries, the Industrial Development
Bank of India has taken steps to set up a separate wing [Later
named SIDBI] to deal exclusively with the credit requirements
of this sector. It will coordinate, guide and monitor the
entire range of credit facilities offered by other institutions
for the small and cottage sector, for whom separate wings
will be set up in nationalized banks. Banks will also be expected
to earmark a specified proportion of their total advances
for promotion of small, village and cottage industries.
|
