Industry & Economy
-
Budget
108 SSI items likely to be dereserved
Our Bureau
New Delhi
,
Feb. 28
HINTING at a further dereservation in small-scale industry, the Finance Minister, Mr P. Chidambaram today said that the Ministry of Small Scale Industry has identified 108 items for dereservation including 30 items in the category of textile products, including hosiery.
Presenting the Budget proposals, the Finance Minister also proposed raising the ceiling for small-scale industry (SSI) exemption based on turn over from the existing Rs 3 crore to Rs 4 crore per year. Furthermore, now on such units would have only two options either full exemption on the first clearance of Rs 1 crore or normal duty on the first clearance of Rs 1 crore with Cenvat credit, the Minister said.
In addition, Mr Chidambaram also announced that the provision for `Promotion of Small-Scale Industry Schemes' was being enhanced to Rs 173 crore for 2005-06. The Small Industries Development Bank of India (SIDBI) has established this year a SME Growth Fund with a corpus of Rs 500 crore. Small and medium units in knowledge-based industries such as pharma, biotech and IT will be provided equity support through this fund, Mr Chidambaram said. Further, the Finance Minister said that Minister for Small Scale Industries would introduce during this session of Parliament the Small and Medium Enterprises Development Bill that would provide a supportive environment for small and medium enterprises.
Commenting on the Budget proposal a senior official of the Confederation of Indian Industry (CII) said that the proposals were good for the sector.
"The decision to dereserve more items, especially the dereservation of 30 items in the category of textile products including hosiery is timely," the CII official said.
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
