Gujarat chamber seeks SSI policy changes in budget

Small scale industries (SSIs) have sought various policy changes from the central government.

"The government has initiated various steps for strengthening the sector, but many more fiscal measures required to be taken to enable the sector face global competition," the Southern Gujarat Chamber of Commerce & Industry, stated in a pre-budget memorandum to the Centre.

Easy availability of finance for SSIs figures prominently in the memorandum.

"The government should take steps to make it easier for SSIs to approach financial institutions and banks for working finance, which should be made available at below principal lending rate (PLR). The Small Scale Financial Guarantee Corporation should give automatic guarantee to financial institutions and banks for finances advanced to any SSI," it stated.

The memorandum lays stress on the need of developing clusters of SSIs.

"The clusters enable unit owners to cut down prices and become competitive. These also have other benefits, and, hence, the government should take steps for developing clusters of SSIs in various cities. The entire infrastructure should be made available to such clusters, the cost of which should be borne by the central and state governments," it stated.

The memorandum has demanded that value added tax (VAT), whenever it is introduced, should be made uniform in the entire country, and that central excise, sales tax, central sales tax, service tax and other local taxes should be made modvatable. The memorandum has also sought changes in the labour laws for SSI sector.

"SSI sector has always been employment intensive, rather than capital intensive, and, hence, the labour laws for SSIs should be amended, so that they are employment oriented, and there is no Inspector Raj," it stated.

The memorandum has also sought creation of technology upgradation fund (TUF) for SSIs.

It further sought moderate dilution of environmental provisions for SSIs, and raising the limit for textiles from the present Rs 1 crore to Rs 3 crore, as applicable in other industries.

"The emerging market scenario will require quality production at very reasonable prices, for which skilled and efficient manpower will be required. To meet this requirement, training institutes, to impart training to operate and plant and machinery, should be set up at the very site of cluster of the SSI units. The institutes should also be equipped with testing, and research and development facilities," the memorandum added.