The much awaited promotional package for Small Scale Industry that would provide fiscal and legislative support to the sector is likely to be cleared by the government in the coming weeks. As part of providing legislative support the micro, small and medium enterprises development (Smed) Act has already been passed by the Parliament and has got the approval of the President. The act has also been notified and would be operational from October.

The government is also working on a law to provide for limited liability partnerships (LLP). The Smed law and LLP would provide the legislative framework to promote small scale sector. The package would also include various measures for fiscal support. The proposed package would focus on development of clusters and improve their efficiency.

Under efficiency and development-related issues the focus would be on capacity building, development of common facilities for units in a cluster, building forward and backward linkages. The government would like that all infrastructure developed in a cluster be taken over and run by units in the cluster. Under technology upgradation the focus of the package is on promoting energy efficiency. The package would also focus on preferential assistance to women entrepreneurs and suggest improvement in design parametres of Prime Minister Rojgar Yojana for the educated unemployed youth. The promotional package would also make it mandatory to hold census of SSI units every five years and sample survey every year.

As part of the ongoing cluster development programme the government has identified 150 more clusters. Earlier 83 clusters were short listed for assistance and development. To meet the credit requirements of small scale units the government has set a target of 20 per centre growth of loan advances to the sector for the next five years beginning 2005-06.

Source: http://www.zeenews.com