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SIDO is actively involved in promoting tiny and small scale industries in India by
means of its promotional and developmental activities. To bring about economic
development of the country and to assist the small scale entrepreneurs to become
self reliant, SIDO offers the following schemes for the SSI Sector.
The Board of Trustees of Credit Guarantee Fund Trust for small industries have
framed a scheme for providing guarantee to a substantial extent, in respect of credit
facilities to the borrowers in the SSI sector without any collateral security or third
party guarantee. The scheme came into force from 1st August, 2000. The following
facilities are provided under this scheme:
(a) The Trust covers credit facilities extended by a lending institution to a small
scale entrepreneur up to an amount of Rs. 25 lakhs (in respect of a single
borrower) by way of term loan and/ or working capital facilities. For this
purpose, the Trust requires no Collateral Security or Third Party guarantee.
However, the lending institution has to apply for a guarantee cover within a
period of 90 days from the date of sanction.
(b) The scheme covers all existing and new SSI units including information
technology and software industries to which credit facility has been provided
by the lending institutions.
The purpose of the scheme is to facilitate technology up gradation in the SSI sector
in the specified products/sub sectors by providing 12% capital subsidy for induction
of proven technologies approved under the Scheme. Eligible borrowers under the
scheme include all sole proprietors, partnerships firms, and Co-operative societies,
private and public limited companies in the SSI sector. Under this scheme, Capital
subsidy is available only for such projects where term loans have been sanctioned by
the eligible Primary Lending Institutions on or after 1st, October, 2000.
The following products/sub sectors are covered under this scheme in the SSI Sector:
The Scheme for Market Development Assistance for SSI exporters (SSI-MDA) came
into operation w.e.f. 30th August, 2001. The basic objective of the scheme is to
encourage the exporters to tap and develop overseas exports. It is expected that
SIDOs participation in International Fairs coupled with the presence of exporters, will
help to augment export earnings.
(c) Those exporting units with aggregate exports of Rs. 2 crores and above
during last 3 financial years (Rs. 1 crore for ISO-9000 certified exporters)
shall receive assistance from the Ministry of Commerce through Export
Promotion Councils (EPCs) or other grantee organizations. Other exporting
units with aggregate exports less than this limit shall receive direct assistance
from the O/o DC(SSI), New Delhi.
(d) Those units who have not commenced exports are not eligible for assistance.
(e) Assistance under SSI-MDA will be given to an exporting unit only once in a
financial year.
ii. 25% of the cost of production of publicity material limited to Rs. 15,000/=
in a financial year.
The PMRY scheme was launched by the Govt. of India in Oct. 1993 and is designed
to create and provide sustainable self employment opportunities to the educated
unemployed. The salient features of the scheme are:
C. Project Cost: Rs. 1.00 lakh for business sector, Rs. 2.00 lakhs for
other activities, loan to be of composite nature. If
two or more eligible persons join together in a
partnership, projects up to Rs. 10.00 lakhs are covered.
Assistance shall be limited to individual admissibility.
(a) All small scale/ancillary units are eligible to avail the incentive scheme
(b) The scheme is applicable only to those SSI/ancillary units who have already
acquired ISO-9000 (or its equivalent) certification.
(c) It is an all India Scheme administered by the O/o DC, SSI, New Delhi.
Formats of Application for reimbursement along with other necessary
documents and check list of enclosures are available on request from the O/o
DC, SSI, New Delhi or from Small Industries Service Institutes.