national expo of small, agro & rural industries inaugurated

smed bill 2005 to protect the interests of tiny and micro enterprises

Wednesday, September 28, 2005

The Government is committed to safeguard the interests of the tiny and micro enterprises as enshrined in the National Common Minimum Programme (NCMP). This was stated by Shri Anupam Dasgupta, Secretary, Ministry of Small Scale Industries and Agro and Rural Industries here today. Addressing a Press Conference, Shri Dasgupta said that in the proposed SMED Bill, the definition of ‘Small Scale’ was sought to be re-defined to the benefit of small scale sector. Allaying fears that the bigger industrial sector would usurp in the benefits given to the small sector, he said appropriate safeguards have already been proposed in the Bill. The concerns voiced by the vast majority of tiny or micro enterprises were adequately addressed, he added. To a question he said that the Government was also engaged in formulating a promotional package for the micro and small enterprises and hoped that it would be announced soon.

It may be recalled that SMED Bill 2005, after approval by the Cabinet at its meeting on 4th May 2005 was introduced in Lok Sabla on 12th May 2005 and thereafter referred to the Department related Parliamentary Standing Committee on Industry for examination and report.

The report of the Standing Committee has been submitted to Parliament on 4th August 2005, which contains a number of recommendations. The recommendations of the Parliamentary Standing Committee have been examined and most of the recommendations have been accepted. Accordingly, amendments in the SMED Bill 2005 were proposed. The proposed amendments were considered by the Cabinet at its meeting held on 18th August 2005 and the Cabinet decided to refer it to a Group of Ministers (GOM) chaired by the Defence Minister Shri Pranab Mukherjee. In reply to another query, Shri Dasgupta said that the GOM is expected to examine the proposal in October 2005.

Thousands of visitors visited the National Expo of Small, Agro and Rural Industries on the second day here today jointly sponsored by SIDO , NSIC, KVIC and the Coir Board. The Exposition at the lawns of Ashok Hotel attracted many distinguished visitors. Among them was the Union Minister of Statistics and Programme Implementation, Shri Oscar Farnandes. As already reported, the aim of this national level exposition is to highlight various export oriented innovative products from different States and Union Territories. About one hundred and forty Units are participating in the Expo. Today a Seminar on “Rural Employment Generation Programme – Opprotunities and Convergence” was organised pertaining to SSI & ARI and Multi-Media presentations on schemes for assistance of small, agro and rural industries are the other attractions of the Exposition.

Inaugurating the Exposition, Defence Minister Shri Pranab Mukherjee said that the Small, Agro and Rural Industries sector was a vast and vibrant sector of the economy and by providing an environment of conducive policies and focused packages of supportive measures, this sector can be enabled to accelerate widely depressed and sustainable development of all parts of the country.

Referring to the SMED Bill 2005, the Defence Minister said that the Group of Ministers entrusted to look into the recommendations of the Parliamentary Committee on Industry would take adequate care to see that while facilitating the much-needed paradigm shift from the hitherto prevalent concept of “small scale industries” to the integrated and internationally accepted model of treating small and medium enterprises as an economic continuum, the concerns voiced by the vast majority of tiny or micro enterprises were adequately addressed. He said that the Government was also engaged in formulating a promotional package for the micro and small enterprises and hoped that it would be announced soon.

The Union Minister of Small Scale Industries and Agro & Rural Industries, Shri Mahabir Prasad, in his address said that it was for the first time that such an Exposition was being held on national level. At present, there are about 1 crore, 18 lakh small-scale industries in which about 3 crore people are employed. This sector contributes to about 39 per cent of the total industrial production and 30 per cent of the total export, he added. The Minister said that the small-scale sector was playing a crucial role in the economic development of the country.

Secretary, Ministry of SSI & ARI, Shri Anupam Dasgupta also spoke on this occasion.

MG: PM