institutional assistance

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Institutional assistance



INTRODUCTION:

y In India, the latest definition of a small-scale industry

(SSI) is any unit with an upper limit on investment (in

plant and machinery) of from Rs. 0.20 million to Rs. 0.35

million in the case of SSI and Rs. 0.45 million in the case

of ancillary units. What is called the village and smallindustries (VSI) sector comprises both traditional and

modern small industries; it is constituted by eight

specific groups· viz. Handloom, Handicrafts, Coir,

Sericulture, Khadi, Village Industries, Small-ScaleIndustries and Power looms. The last two items

constitute the modern group of industries, the others

being traditional.



List of forest-based items which can only be purchased by

government from the SSI sector.

y Wooden items

y - Crates-Tool handles- Hand drawn carts-Teak Blocks-Tent poles- Shelving-Wood wool- Plugs- Ammunition boxes

- Chairs- Mallets- Flush doors-Wooden Pins-Veneers



y . Other

y - Cane baskets- Bamboo cool handles

- Brooms

y

Mats and matting (which includes itemsmade from forest materials) can only be

purchased from the handicraft: sector



y Some specialization exists in types of lending: the

commercial banks provide the bulk of short-term

advances to SSI units and the state financecorporations provide long-term loans. Both types of

finance are made available at relatively low rates of

interest for the SSI sector, the present schedule

being as under:



y Type of loan

y Composite loans up to Rs. 25,000

y I) Backward areas :- 10.0%

y ii) Other areas :- 12.0%

y Short-term advances

y I) Up to Rs. 0.2 million :- 14.0%

y ii) Over Rs. 0.2 million to Rs. 2.5 million:- 16.5%

y iii) Above Rs. 2.5 million:- 18.0%

y Term loans

y I) Backward areas:- 12.5%

y ii) Other areas:- 13.5%



GOVERNMENT STUDY:y Reserved items according to the Second All India

Census of Registered MSME Units (1987-88)accounted for:-

y *11.3% of the items produced in the MSME sector.

y

*28.3% of the production in MSME sector.y *36% of the working MSME units for which data

was compiled in the Census.

y *23.8% of the total number of working and closedunits.

y *68 reserved items were found to account for 80%of the production under reserved category. Out of these 5 items have been de-reserved, hence the listnow contains 63 reserved items.



NSIC(National Small Industries Corporation)

y The Single Point Registration Scheme of NSIC was

launched as a market support measure for the MSME

Sector. Under the Scheme, the following benefits are

given to MSME units which get themselves registered

with the NSIC:-

y i) Availability of Tender sets free of cost;

y Ii) Exemption from payment of Earnest Money Deposit;

y Iii) Exemption from payment of Security Deposit;

y Iv) Price preference up to 15% over the lowest

quotation of the large scale units (on merits)

y



Small Industries Development Bank of India ( SIDBI)

Origin & Objectives

y Small Industries Development Bank of India (SIDBI)

was established in April 1990 under an Act of Indian

Parliament as the principal financial institution for:

y

Promotiony Financing

y Development of industry in the small scale sector

y Co-coordinating the functions of other institutions

engaged in similar activities



Channels of Assistance

y SIDBI's financial assistance to small scale sector has

three major dimensions:

y

Indirect assistance to primary lending institutions(PLIs);

y Direct assistance to small units; and

y Development and Support Services



Development And Support Services

y Enterprise Promotion with emphasis on Rural

Industrialization

y Human Resource Development to suit the SSI sector

needsy Technology Up gradation

y Quality and Environment Management

y Marketing and Promotion and

y Information Dissemination.

y



SARASWATI CHEMICALS AND

ENGINEERING Pvt. Ltd.

� The company has 10 workers and anannual turnover of 2 crores. The companyis presently handled by Mr. Jagdish MSalunke . The area near kalyan allows for

better accessibility to raw materials so thefounders were keen in starting theenterprise there. At the end the companyhas lot of growth potential andtremendous expansion plans.

� The company was initially funded by a

government bank, UCO Bank. This termloan was cleared shortly after the openingof the company. But the company still has agood relationship with the bank and doesapproach it for short term loans.

SaraswatiChemicals &

Engineering Pvt.Ltd was started by

Mr. Mohan S

Salunke, in the year1990. The

company basicallydeals in chemicalsand engineering

goods. Some of thechemicals

produced by thecompany are iron

sulphide etc.



SARASWATI CHEMICALS ANDENGINEERING Pvt. Ltd.



JUST IN TIME:

y Basically this is the waste control method it is not theinventory control technique. It is an organized approach to

introduce in the manufacturing cycle.

y TIMELINESS.

y QUALITY.

y PRODUCTIVITY.

y FLEXIBILITY.

y

WORK SIMPLIFICATION AND WASTE REDUCTION.



KAIZEN:

y There are two elements of kaizen:

y IMPROVEMENT/CHANGE FOR THE BETTER.

y ONGOING/CONTINUITY.

y

KAIZEN & SUGGESTION:Suggestion is the change, suggested by any employee to be

done in view of cost reduction. It is no doubt both are

employee participation schemes. The suggestion legally is a

proposal, which is not part of the job of the suggested.

Suggestion & kaizen are generally small technical

improvement than innovation involving large investments.



LEANRNINGS:

yThe company we visited taught us a lot about product qualityimprovement. Management is an ever changing arena

involving changes in methods & techniques. We have learned

a lot from the subject of productivity & quality management.

yThe management keeps changing but the

theories of quality improvement remain the same.

This is the reason companies have always been

striving to get the best quality products at the most

reasonable prices. This is what sells products off theshelves & earns profits for the company



CONCLUSION:

y This project was a great learning experience for

everyone in our group. After visiting the company

which is, Saraswati Chemicals and Engineering

Industries we have got a deep insight into the

working if the SSI. The SSI sector in India ispromoted by the Ministry of Micro Small Medium

Enterprises, Government of India. The government

has tried hard to give every type of assistance to the

SSI sector this has increased the chances of thesurvival of this sector.



y Institutes like SIDBI, UCO Bank, SISI, KVIC etc, are

just some of the government institutes which

provide assistance to the different companies. Thesesmall enterprises need a lot of assistance to grow

and prosper. Post independent India was a place of

oligopolies and family firms who needed political

connections to proper but now times have changed.

Now more and more entrepreneurs are steping into

the business scenario.



y The company we visited saraswati chemicals and

engineering industries was started by Mr. Mohan S

Salunke in 1990. The company has a lot of growth

potential and has plans for expansion. This visit was

a wonderful experience for all of us. We learned

how a small enterprise is run and how do they

control the quality while keeping prices low. Aftercompleting this project we can truly say that the

small scale industry sector is the flesh and blood of

the Indian industry.

y

institutional assistance

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