8/7/2019 1991 policy

1/13

1991 INDUSTRIAL POLICY

8/7/2019 1991 policy

2/13

1991 INDUSTRIAL POLICY

Thrust areas of the policy for small enterprises :

This new policy has several features and indicates reorientation

of policy on crucial issues like speedy modernization ,technology

up gradation , low rate and adequate ,timely credit facility ,quality

control and work toward drawing them into the main stream of

industrialization.

8/7/2019 1991 policy

3/13

PAYMENT MECHNISM

Legislation introduced to enforce payment on time .

Setting up Industry association

8/7/2019 1991 policy

4/13

FACTORING SERVICES

Factoring is a financial transaction whereby a business job sells its

accounts receivable to a third party (called a factor) at a discount

in exchange for immediate money with which to finance

continued business. Factoring differs from a bank loan in three

main ways. First, the emphasis is on the value of the receivables

(essentially a financial asset), not the firms credit worthiness.

Secondly, factoring is not a loan it is the purchase of a financialasset (the receivable). Finally, a bank loan involves two parties

whereas factoring involves three.

8/7/2019 1991 policy

5/13

RESOURCES FOR SMALL ENTERPRISES

New important change in modern SSI is the provision of additional

finance permittingLTD liability for new non active partners and by

permitting up to 24% equity investment by other industrial

undertakings.

Promoting ancillary industries as it promotes the greater use of labour

intensive techniques of production and also broad based

entrepreneurship .

8/7/2019 1991 policy

6/13

TIMELY AND ADEQUATE CREDIT

The encouraging feature of the new policy is that it recognizes the fact

that small units require timely credit and financing arrangements rather

than cheap credit .

Single window clearance

8/7/2019 1991 policy

7/13

NODAL AGENCY

SIDO

Technology development cell

Ltd financial liability to new and on active partners

Integrated infrastructural development for SSI

8/7/2019 1991 policy

8/13

MARKETING

Marketing promotion would be undertaken through cooperative ,public sector

institutions and marketing agencies with necessary concession

NSIC

Export development cell

8/7/2019 1991 policy

9/13

RAW MATERIALS

8/7/2019 1991 policy

10/13

QUALITY

Industry Association

IT Centre'sIIT and engineering colleges .

8/7/2019 1991 policy

11/13

APPREHENSIONS

24% stake by large and foreign investors

Product Reservation

8/7/2019 1991 policy

12/13

TINY SECTOR

Tiny sector accounts for 90%

Investment ceiling raised from 2lakh to 5 lakh

One time benefit preference for SSI

Additional support to tiny enterprises

8/7/2019 1991 policy

13/13

HANDLOOM SECTOR

Schemes redesigned keeping in mind the local and regional needs

Substantial fund for modernization of looms ,training provision of better designs