Revamping Ssis

The various SSI associations have represented to the Abid Hussain Committee, that instead of routing the assistance through banks etc, SIDBI could lend funds directly to SSI units for modernisation. For achieving this, SIDBI should open branches in all the 80 centres identified by the Nayak Committee as having SSI clusters/potential for SSI development. Further, for encouraging modernisation, soft loans need to be extended to SSIs at 6 per cent per annum.

The Abid Hussain Committee should also ensure the implementation of the suggestions by Nayak Committee for a minimum working capital limit of 20 per cent of turnover for SSIs, by the banks. Further, an organisation exclusively for SSIs on the lines of BIFR should be set up and a clear exit policy should be enunciated. The committee also needs to look into the question of enunciating a special policy providing protection and incentives to this tiny sector, which accounts for 95 per cent of SSI units.