Institutional assistance

INTRODUCTION:

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 small industries (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-Scale Industries 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.

Wooden items
- Crates
- Tool handles
- Hand drawn carts
- Teak Blocks
- Tent poles
- Shelving
- Wood wool
- Plugs
- Ammunition boxes
- Chairs
- Mallets
- Flush doors
- Wooden Pins
- Veneers
. Other
- Cane baskets
- Bamboo cool handles
- Brooms
Mats and matting (which includes items
made from forest materials) can only be
purchased from the handicraft: sector
Some specialization exists in types of lending: the
commercial banks provide the bulk of short-term
advances to SSI units and the state finance
corporations 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:
 Type of loan

Composite loans up to Rs. 25,000

I) Backward areas :- 10.0%
ii) Other areas :- 12.0%

Short-term advances  
I) Up to Rs. 0.2 million :- 14.0%
ii) Over Rs. 0.2 million to Rs. 2.5 million:- 16.5%
iii) Above Rs. 2.5 million:- 18.0%

Term loans 
I) Backward areas:- 12.5%
ii) Other areas:- 13.5%
GOVERNMENT STUDY:
Reserved items according to the Second All India
Census of Registered MSME Units (1987-88)
accounted for:-
*11.3% of the items produced in the MSME sector.
*28.3% of the production in MSME sector.
*36% of the working MSME units for which data
was compiled in the Census.
*23.8% of the total number of working and closed
units.
*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 list now
contains 63 reserved items.
NSIC(National Small Industries Corporation)
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:-
i) Availability of Tender sets free of cost;
Ii) Exemption from payment of Earnest Money Deposit;
Iii) Exemption from payment of Security Deposit;
Iv) Price preference up to 15% over the lowest quotation
of the large scale units (on merits)
 
Small Industries Development Bank of India (SIDBI)
Origin & Objectives

Small Industries Development Bank of India

(SIDBI) was established in April 1990 under an Act
of Indian Parliament as the principal financial
institution for:
Promotion
Financing
Development of industry in the small scale sector
Co-coordinating the functions of other institutions
engaged in similar activities
Channels of Assistance

SIDBI's financial assistance to small scale sector has

three major dimensions:
Indirect assistance to primary lending institutions
(PLIs);
Direct assistance to small units; and
Development and Support Services
Development And Support Services

Enterprise Promotion with emphasis on Rural

Industrialization
Human Resource Development to suit the SSI sector
needs
Technology Up gradation
Quality and Environment Management
Marketing and Promotion and
Information Dissemination.
 
SARASWATI CHEMICALS AND ENGINEERING Pvt. Ltd.
Saraswati
Chemicals & ●
The company has 10 workers and an annual
Engineering Pvt. turnover of 2 crores. The company is presently
Ltd was started by handled by Mr. Jagdish M Salunke . The area
near kalyan allows for better accessibility to raw
Mr. Mohan S
materials so the founders were keen in starting
Salunke, in the year the enterprise there. At the end the company has
1990. The company lot of growth potential and tremendous
basically deals in expansion plans.
●
The company was initially funded by a
chemicals and
government bank, UCO Bank. This term loan
engineering goods. was cleared shortly after the opening of the
Some of the company. But the company still has a good
chemicals produced relationship with the bank and does approach it
for short term loans.
by the company are
iron sulphide etc.
PRODUCTIVITY
&
QUALITY
MANAGEMENT
SARASWATI CHEMICALS
AND ENGINEERING Pvt. Ltd .
JUST IN TIME:
Basically this is the waste control method it is not the
inventory control technique. It is an organized
approach to introduce in the manufacturing cycle.
TIMELINESS.
QUALITY.
PRODUCTIVITY.
FLEXIBILITY.
WORK SIMPLIFICATION AND WASTE
REDUCTION.
KAIZEN:
There are two elements of kaizen:
IMPROVEMENT/CHANGE FOR THE BETTER.
ONGOING/CONTINUITY.
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:
The company we visited taught us a lot about product
quality improvement. Management is an ever
changing arena involving changes in methods &
techniques. We have learned a lot from the subject of
productivity & quality management.
 The 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
the shelves & earns profits for the company
CONCLUSION:
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 is
promoted 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 the
survival of this sector.
Institutes like SIDBI, UCO Bank, SISI, KVIC etc,
are just some of the government institutes which
provide assistance to the different companies. These
small 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.
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.
After completing this project we can truly say that
the small scale industry sector is the flesh and blood
of the Indian industry.
