Government concessions for SSI

1. Reservation of Items:
Many products are reserved for exclusive
manufacturer by the SSI sector. Which protects SSI
sector from the competition of large and medium
sectors.
2. Reservation of product for purchases made
by Government
Reservation of products for exclusive purchase by
government departments and public sector
undertakings from SSI
3. Price Preference:
All government departments and public sector
undertakings offers price preference to SSI units in
all purchases made by them.

4. Telephone Connections:
Priority for telephone connections for SSI on the
basis of recommendations made by DIC of district
in which the unit is situated.
5. Financial incentives:
State govt. offers incentives to SSI units in the form of
capital Investment subsidy and Sales Tax exemption
ect…

6. Infrastructural Facilities: are developed by state

government and financial institutions in industrially
backward areas to facilitate the location of industries in
these areas
7. Marketing Assistance:
National Small Scale Industries Corporation has
been advised to concentrate on the marketing of
mass consumption product under a common
brand.
8. Export Promotion:
SIDO has been recognized as a agency for
supporting SSI in export promotion. It provides
assistance for handling, clearing, insurance,
publicity, freight ect…
9.Financial Assistance:
-Term loans and working capital from state level financial
institutions and banks.

-Equity capital from SBI, IDBI, SIDBI (Small Industries

Development Bank Of India) it helps in setting up a new unit,
expansion, diversification, modernization ect…

-NSIC National Small Industries Corporation Ltd. (NSIC)

provides machineries on hire purchase basis, technology
assistance facilities and also helps in export marketing of the
products of SSIs.
10. Testing Centers:
Central Govt. and state govt. has testing centers.
Such as
- Product-cum-process-development centers
(PPDCs):
Functions
Research and development
Product design and innovation
Product and process improvement
Manpower development and training
11. Fiscal Incentives:
Excise Concession: depending on the turnover of the company.
Integrated infrastructural development: infrastructural facilities
in rural areas.
Quality certification
Technology development fund from state government and
industries association.

12. Credit policies

Refinance facilities
Concessional rate of interest
Loan facilities under prime minister rozgar yojana