Industrial Policy For Promoting

Small Scale Business

HIGHLIGHTS

On March 2000, 32.16 lakh SS units Providing employment to about 187.62

lakh peopleProducing goods worth rs 27,00,855

crores Exports 43,946 crores

PROMOTIONAL INCENTIVES

MotivationRegional developmentEntrepreneurial

developmentAbility to face competition

[[[ > Incentives includes sudsidies,concessions n bounties <]]]

Need Of Promotional Incentives

To generate more

employment

To promote

entrepreneurship

To remove regional

disparities

Schemes of promotional incentives in operation

Import/export subsidies and bounties

(Facilities available in UP,karnatka,HP, Punjab ,Rajasthan n Tripura )

Interest free loans

Subsidy for research and development work

(Facilities are available in J&K, Sikkim, Delhi, kerala,manipur)

Special incentives for women

Benefit 1 •Entrepreneur having 80% women labourers are provided 50% subsidy on----

•Building n machinery, rent , subsidy

Benefit 2 •Facilities are available in Tripura n Kerala

Land n Building At Concessional Rates

-: Facilities Available In :-

Haryana

J&KHP

Modernization Facilities

SIDO Testing

Centers- mumbai,delhi

,kolkata chennai.

Scheme aims at providing consultancy

services, credit facility

quality control etc..

Credit Facility

SFCs for FIXED CAPITAL Commercial banks for WORKING CAPITAL

Co-operative banks for industries those who

are organized in corporate mannerIDBI NABARD

NSIC for machinery on Hire Purchasing

SFC’s

Other Incentives -

Production

Quality n technology up gradation

Pollution

control

State government provide incentives for :-

Recommendations

Expert committee

Support for technology in SSI’s

Measures have been suggested :- Providing technology support Financing for technology up-gradation Support for R&D

Small Scale Business

N’ Modern Technology

Technology

It implies the knowhow, design

and intellectual input

Practical application of principals of

science

Expertise, equipment n procedure used

Factors effecting selection of technology

INVESTMENT CAPACITY

• MANUFACTURIN-G STRATEGY

VOLUME OF PRODUCTION

• ENGINEERING N TECHNOLOGY EVALUATION

NATURE OF PRODUCT

• ECONOMIC EVALUATION

Benefits of technology

to SSI’s

Increase production

• Improved quality

Higher standard of living

Nation producing more goods n services have world’s largest standard of living

Reduced labour Improved products Speed up work

Elements of selection of technology

Plant select

ion

Equipment

selection

Consideration in selecting plant

Availability of raw material

Availability of skilled n unskilled labour

Nearness to the source of motive power

Nearness to market, banking and credit facility

Availability of transport facilities

Selection of equipment

Saving in time n water

Securing greater accuracy

Degree of skill required to operate the equipment

Probable amount of use

Type of productionmethod of production

Type of technology

• Labour intensive technology• Capital intensive technology

Technology up-gradation

• It refers to induction of commercially proven advanced technology leading to significant improvement in quality, productivity, cost reduction, saving of energy and use of raw material

Government schemes for technology up-gradation