Comprehensive SSI Bill in Winter Session

NEW DELHI: The government will bring in a comprehensive legislation for the small-scale sector industries in the Winter Session of Parliament that will supercede all other laws governing the sector.

"The draft note of the Small Enterprises Development Bill 2004 has been circulated among various ministries. Once their comments are available, it will be taken to the Cabinet and then introduced in the Winter Session of Parliament," Minister for Small Scale Industries and Agro & Rural Industries Mahabir Prasad said on Saturday.

"The Bill will address issues relating to registration, credit, marketing and trade protection," he said on the sidelines of a press meet regarding the Annual SSI Convention to be held on Monday.

The convention will be inaugurated by Prime Minister Manmohan Singh who will also give away awards for outstanding achievements in areas of entrepreneurship, research and development and quality products in SSI sector.

The proposed SSI Bill will replace all laws governing the sector and seeks to curtail inspector raj.

It also seeks to empower the SSI Ministry to decide the the definition of a SSI unit.

At present, units with an investment of less than Rs one crore fall under SSI category with some exemptions like pharma, hand tools, hosiery and stationery items, where the limit is Rs 5 crore.

The Bill also intends to provide statutory back-up to Government Purchase Programme by specifying a fixed percentage for purchasing from small enterprises. At present, the purchase programme is governed by executive order.

Prasad said the government is working out a promotional package for the SSI sector as promised in the National Common Minimum Programme of the United Progressive Alliance.

He said the Prime Minister will also release Third All India Census of SSIs, History of Small Industries Development Organisation and special commemorative issue of Laghu Udyog Samachar at the convention.