| The government is likely to prune the list of 506 items reserved for production by the small-scale sector by 20 per cent in the coming Budget. |
| According to government officials, around 100 items may be removed from the current list which includes organic chemicals, drugs, auto components, ceramics and food products. The ministry of small-scale industries would shortly meet stakeholders to finalise the items that could be removed from the SSI list, they added. |
| "Last year, the government had taken out 95 items from the list and enhanced the investment limit for seven items. A similar exercise is being attempted this year," said an official. |
| In addition to the de-reservation of 100 items, a promotional package of around Rs 2,200 crore for the SSI sector is likely to be introduced during the Budget session of Parliament. The package will include several fiscal incentives to encourage growth in the sector. |
| The ministry of small-scale industries has recommended that excise exemption of Rs 1 crore available to the sector should be revised upward in the Budget keeping in mind the rise in inflation. |
| "The excise exemption available to the sector, while being beneficial, also encourages units to stay small. The government is considering tapered incentives to encourage small units to become medium-scale," an official said. |
| Officials said the finance ministry was also considering a proposal to extend income tax incentives to banks and financial institutions which contributed to the Credit Guarantee Trust Fund for Small Industries. |
| The fund was set up in 2000 with an initial corpus of Rs 125 crore with the aim to reach collateral-free loans to the tiny and small-scale sector. BUDGET GIFT FOR SSIs The government may announce.... |
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