|
The process of economic liberalization has lowered the trade barriers across the world. This has also exposed the hitherto protected Indian small scale industrial(SSI) sector to unprecedented global competition. The discerning consumer today insists on the maintenance of standards not only for the quality of the products but also the process and environment of manufacturing as well. One of the reasons for the lack of competitiveness of our SSI sector is its non-adherence to recognized quality standards. In recognition of this, a unique scheme for upgradation of technology, improvement of quality and management of the environment for the SSI sector was introduced by the Government.
The Ministry has worked out a special scheme with a view to promoting the acquisition of ISO certifications by the small scale industries. This scheme was introduced in 1994 for assisting the small scale units which were desirous of obtaining ISO 9000 certification for quality management systems. The expanse of the scheme was further enhanced to include reimbursement of expenses for acquiring ISO 14001 certification for environment management from October, 2002.
The scheme administered through the office of the Development Commissioner (SSI) envisages reimbursement of 75 per cent of the charges for acquiring the desired ISO certification with an upper ceiling of Rs.75,000.
Keeping in mind the potential of the SSI sector and the importance of attaining ISO certification for them to be recognized globally as well as nationally by the larger buyers, intensive efforts were made to popularise the scheme. In the year 2004-2005 a multi-pronged approach was adopted for promoting the scheme. Several seminars were conducted in different industrial areas coupled with discussions and dissemination of information through the industrial associations, export promotion councils, trade related associations and auditors to create awareness among SSI units. The scheme was further promoted through the knowledge-based-portal www.smallindustrindia.com maintained by the office of the Development Commissioner and the e-newsletters forwarded to different associations. Consultants were also identified in the field organisations like the Small Industry Service Institutes (SISIs) for providing assistance by way of consultancy to desirous small scale units. As an illustration, the SISI at Chennai offered 214 consultancies in a short period for this purpose. In addition, the paper work and the forms required to be submitted by the units for availing assistance were simplified and unnecessary details were dispensed with.
One common grievance of the small scale units has been the delay in reimbursement after the acquisition of certification standards. Lot of red tape was cut down and verification of unimportant details dispensed with. For the first time, facility for online verification of the status of applications was offered to the applicant units through the interactive web portal of the Development Commissioner. A special software was developed for automatic generation of e-mails at different stages of the processing of the applications. The period for reimbursement was shortened significantly from more than one year to less than three months.
The result has been extremely satisfying with 2751 units having been reimbursed the subsidy for the cost of acquisition of standards in the nine months of the current financial year 2004-05. Simultaneously, a sum of Rs.14.47 crore was reimbursed to these units. It is obvious that in the last nine months alone the coverage has been to the extent of more than 38 per cent of the total number of units assisted so far.
The success of a promotional scheme does not lie merely in identifying and assisting the industrial units monetarily. Ultimately it is measured in terms of each assisted units’ increase in productivity, enhancement in the level of exports or supplies to large units. It is planned to conduct specific evaluation studies pertaining to small scale units in different sectors who have attained ISO certification with assistance from the Government. Preliminary information on their working seems to be quite encouraging. The results of the evaluation studies, which are being launched soon for a final verdict are awaited.
There is, however, no doubt that this scheme has popularized the quality issue among the SSI enterprises as an essential component of marketing without which they cannot hope to compete in the market place.(PIB Features)
**Secretary, Ministry of Small Scale Industries
|
