Centre gives subsidy on SSI rating fees

NEW DELHI: The government will provide up to 75% subsidy to small scale industries (SSIs) for getting themselves rated by a credit rating agency under a new scheme launched recently.

Finance minister P Chidambaram said the scheme for SSIs should make it easier for banks to give loans on easier terms. Seeking to clear the “misconception� that small scale sector was dying, the minister said the main problem faced by the sector was lack of credit.

Under the rating scheme, for units with a turnover of up to Rs 25 lakh, the ceiling of reimbursement for rating fees will be Rs 25,000. For units with turnover between Rs 50 lakh and Rs 2 crore, the ceiling will be Rs 30,000 and for units with turnover of more than Rs 2 crore, the limit will be Rs 40,000.