Sidbi sets up panel on SSIs

SIDBI hopes that the group8217;s recommendations will be useful to the Finance Minister for framing suitable policies and bringing about modifications in the existing policies relevant to the SSI sector, he said

The nine-member group comprising of Dr L C Gupta, Rajendra P Chitale, MD Chitale Company and member SIDBI board, Nimesh Kampani, group chairman, J M Morgan Stanley, Pradip Shah, MD Indasia Fund Advisors Pvt Ltd, Ravi Narain, Deputy MD NSE, Dr Ajay Shah, Assistant Professor, Indira Gandhi Institute of Development Research, J H Bosco, MD OTCEI, Mr C J George, MD Geojit Securities Ltd, Cochin and P B Nimbalkar, ED SIDBI have already confirmed their participation and will undertake the task assigned on them very soon, Narain said.

Narain further said that P S Rao, general manager, SIDBI will function as secretary to the working group. According to him, a large majority of SSI units nearly 80 per cent are proprietorship concerns while another 17 per cent are partnership whereas only 2 per cent of the units are limited companies and yet this percentage translates into as many as 60,000 units, which is a significantly large number requiring substantial investible resources.

A tentative estimate indicate that even if these units raised 50 per cent of their capital from the market, the requirement would be of the order of Rs 5,000 crore.

In view of the prevailing situation the SIDBI MD underlined the need to bring about greater corporatisation of the sector and encourage the growth of limited companies.