1. I n d u s t r i a
l P o l i c y
F o r
P r o mo t i n g
S ma l l
S c a l e
B u s i n e s s

2. HIGHLIGHTS
 On March 2000, 32.16 lakh SS units
 Providing employment to about 187.62
lakh people
Producing goods worth rs 27,00,855
crores
 Exports 43,946 crores

3. PROMOTIONAL INCENTIVES
Motivation
Regional development
Entrepreneurial
development
Ability to face competition
[[[ > Incentives includes sudsidies,concessions n bounties <]]]

4. Need Of Promotional
Incentives
To generate
more
employment
To promote
entrepreneurship
To remove
regional
disparities

5. Schemes of promotional
incentives in operation

6. Import/export subsidies and
bounties
(Facilities available in UP,karnatka,HP, Punjab ,Rajasthan n Tripura )

7. Interest free loans

8. Subsidy for research and development
work
(Facilities are available in J&K, Sikkim, Delhi, kerala,manipur)

9. 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

10. Land n Building At
Concessional Rates
-: Facilities Available In :-
Haryana
J&K
HP

11. Modernization Facilities
Small Industry
Development
Fund was
created in
1986 with a
corpus of
about Rs2500
crores
SIDO
Testing
Centers-
mumbai,delhi,
kolkata
chennai.
Scheme aims
at providing
consultancy
services,
credit facility
quality control
etc..

12. Credit Facility
SFCs for FIXED CAPITAL
Commercial banks for WORKING CAPITAL
Co-operative banks for
industries those who are
organized in corporate manner
IDBI NABARD
NSIC for
machinery on
Hire
Purchasing
SFC’s

13. Other Incentives -
Production
Quality n
technology
up gradation
Pollution control
State government provide
incentives for :-

14. Recommendations
Expert
committee
Concept of small
scale sector
should b widened
Policy of protection
be replaced by
promotion
Partnership
between private
sector n
government
Guiding principles of
small scale
development policy
should b accelerated

15. Support for technology in SSI’s
Measures have been suggested :-
 Providing technology support
 Financing for technology up-gradation
 Support for R&D

16. S ma l l
S c a l e
B u s i n e
s s
N ’

17. Technology
It implies the knowhow,
design and intellectual
input
Practical application
of principals of
science
Expertise, equipment
n procedure used

18. Factors effecting selection of
technology
INVESTMENT
CAPACITY
VOLUME OF
PRODUCTION
NATURE OF
PRODUCT
• MANUFACTURIN-
G STRATEGY
• ENGINEERING N
TECHNOLOGY
EVALUATION
• ECONOMIC
EVALUATION

19. Benefits of technology
to SSI’s

20. Increase production

21. • Improved quality

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

23.  Reduced labour
 Improved products
 Speed up work

24. Elements of selection of
technology
Plant
selection
Equipment
selection

25. 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

26. 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
production
method of
production

27. Type of technology
• Labour intensive technology
• Capital intensive technology

28. 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

29. Government schemes for
technology up-gradation