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This is an archive article published on December 21, 1999

Give suggestions to improve, Vikhe to SSIs

PUNE, DECEMBER 20: Acknowledging the stepmotherly'' treatment granted by banks to small-scale industries (SSI) in the country, Minister ...

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PUNE, DECEMBER 20: Acknowledging the “stepmotherly” treatment granted by banks to small-scale industries (SSI) in the country, Minister of State for Finance, Balasaheb Vikhe-Patil on Sunday urged the Laghu Udyog Bharati to deliver specific legal and financial suggestions for improvement to the Centre, before the Parliamentary budget session next year.

Speaking at the concluding function of Udyogdarshan ’99, a State-level SSI exhibition in the city, Vikhe-Patil suggested that the Laghu Udyog Bharati establish a link with the Department of Science and Technology (DST), Delhi, for organised finance and guidance to research and development in the agricultural sector.

After a patient hearing to the problems arising out of poor marketing, decadent and complex central excise laws, lack of technology upgradation and inadequate finance dogging SSIs in the country today, Vikhe-Patil put forth several suggestions to boost the sector, “which,” he said, “is a national asset that comprises 40 per cent of our production, and 35 per cent of our export earnings in foreign exchange.”

The question of patents can be fruitfully dealt with if entrepreneurs from the traditional industries apply for “common patents in similar research fields,” he said.

While the SSI sector is shaky about withstanding competition from the 600 items that have been dereserved for imports, Patil appealed to the audience of industrialists to form a forum, study the issue and suggest specific quantitative restrictions to the Centre. “All the local SSI organisations must unite and speak with one voice to protect their interests,” he said.

He also announced that he was seriously considering a move to set up permanent areas for exhibition and sale of SSI products in rural areas, which suffer from negligible marketing skills.

A proposal to set up regional cells to spread awareness and provide concrete assistance to the small-scale sector, and district udyog kendras to take the strides of Information Technology and communication to the rural areas is under consideration, said Patil. Implementation of the rural credit guarantee scheme has also begun, he said.

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Replying to the need for an exhaustive revision of “decadent and complicated central excise laws” put forth by Vijay Thakar, advisor to the Central Excise Commission, Patil said that the Centre was studying the issue of simplification of excise regulations.

Surendra Dharap, national convenor of the Laghu Udgoy Bharati, appealed to the minister to consider their demands to establish regional research centres and testing laboratories in the country, increase the percentage of priority lending by banks, abolish the requirement of collateral security from small entrepreneurs, immediate sanction of short-term finance, and simplification of excise rules that lead to “corruption, harassment and reduction in revenue.”

Dr B R Sabade, member of the National Labour Commission, spoke on the necessity for study and redressal of the problems facing this sector, which generates employment for two crore people.

Vikhe-Patil gave away awards for the best stall from the 180 participants, to Laxmi Hydraulics, Pacific Technologies and AVO Industries.

 

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