NMCC opens Rs 1,000-cr kitty for small, medium companies

NEW DELHI: A big boost to small units is on the cards. The National Manufacturing Competitiveness Council (NMCC) has prepared a Rs 1,000-crore national manufacturing competitiveness programme for small and medium enterprises.

The plan, which has been jointly worked out by the commission and the ministry of small scale industry (SSI), aims to benefit over 10,000 firms in more than 500 SME clusters. The thrust of the plan is towards technology infusion with almost one-third of the project funds going towards it. The plan has been placed before the Eleventh Finance Commission for approval.

“Both the ministry and the Commission have taken up the initiative to make an immediate intervention for the growth of the sector so as to enable SMEs to compete with new players. However, a separate long term plan is under preparation as part of the NMCC’s 10 year strategy,” a senior government official told ET. This was considered necessary in the light of the pruning of the reserved items list from a whopping 800 items to 108 in recent years, he added.

The plan includes the infusion of Rs 300 crore for the application of ‘lean’ manufacturing in the SME segment by way of which SMEs will be encouraged to streamline their procedures and cut down on wastes. Another Rs 160 crore is proposed for promotion of information, communication and technology (ICT) along with Rs.93 crore as technology and quality upgradation support.

In order to enable manufacturers to adopt quality management standards and quality technology standards Rs 135 crore will be extended as assistance to small scale units. The plan proposes to increase the number of tool rooms from 10 to 25 at a cost Rs 135 crore. Another Rs 110 crore are proposed for encouraging SMEs to file for patents and for offering market support to these manufacturers.

The government has identified more than 500 clusters including Tirupur (textile), Khurja (pottery ), Ferozabad (glass), Ludhiana and Jaipur among others where this programme will be implemented. Leather, readymade garments, auto-components, gems and jewellery are among the sectors identified where this programme will be extended, the official added.