Industry & Economy
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Budget
Cap for SSI loans raised to Rs 1 cr
Our Bureau
New Delhi
,
July 8
IN a move which is likely to benefit more small scale industry (SSI) units, the Union Budget for 2004-05 on Thursday proposed to raise the ceiling for loans under the Capital Subsidy scheme from Rs 40 lakh to Rs 1 crore.
At the same time, as many as 85 items which were hitherto in the reserved list for the small sector have been selected for dereservation.
The Finance Minister, Mr P. Chidambaram, also proposed that the rate of subsidy be raised from 12 per cent to 15 per cent.
The Minister added that a provision of Rs 135.24 crore has been made for `promotion of SSI schemes' and within that amount funds will be found for the Capital Subsidy scheme.
Sources indicated that the move could see more SSI units go in for technology upgradation which should ensure competitive quality and cost of their products..
Similarly, the Finance Minister's announcement encouraging SSI units to obtain credit ratings is likely to help them ensure credibility from third parties apart from the lenders and creditors.
Furthermore, the Minister added that the scope of the scheme would be enlarged by adding more sub-sectors and technologies eligible for assistance.
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