SSI sector seeks duty sops

The ministry of small scale industries has asked for a removal of the duty on scrap iron.

The Minister of Small Scale Industries and the Northeast CP Thakur said he had already written to Prime Minister Atal Bihari Vajpayee and Finance Minister Jaswant Singh on the issue of duty.

He was addressing a meeting here on the cluster development of small scale industries.

The minister added that the ministry had also recommended that the duty drawback on steel product imports from Nepal should be removed as this would provide relief to the small scale industries sector in the country.

The ministry had recently convened a meeting of 30 banks to ask them to fund various projects in the sector.

As banks have shown enthusiasm in offering loans for initiatives in this sector, the ministry is in the process of simplifying the process.

The ministry has also recommended that the prime lending rate should be capped at 11 per cent for small scale industries and 9 per cent for tiny industries.

On the issue of cluster development, Thakur said three clusters were to be set up in Bihar.

One such cluster would ensure the revival of the gun factory at Munger, a bell metal installation at Parau and a shell button factory at Mehsil.

Thakur added that the ministry had already launched cluster development initiatives in 21 new small scale industries clusters.