14.0 Policy Support
14.1 The investment limit for the tiny sector will continue to be Rs.
14.2 Under the Prime Minister's Rozgar Yojna, which finances
setting up of micro enterprises and generates employment for the
educated unemployed, the family income eligibility limit of Rs.
24,000 perannum being revised to Rs. 40,000 per annum.
15.0 Credit Support
15.1 The Nayak Committee's recommendations regarding provision
of 20 per cent of the projected turnover as working capital is
being recommended to the Financial Institutions and Banks. In respect
of Tiny units also 20 per cent of the projected annual turnover
would qualify for working capital loan.
15.2 The National Small Industries Corporation will continue to
give composite loans upto Rs. 25 lakhs to the Tiny Sector and
continue to charge one per cent concessional interest rate.
15.3 SIDBI will continue to give concessional rate of refinance to
the tiny sector which is now at 10.5 per cent as compared to 12 per
cent for the MSME sector. This policy will continue.
15.4 In the National Equity Fund Scheme, the project cost limit will
be raised from Rs. 25 lakhs to Rs. 50 lakhs. The soft loan limit will
be retained at 25 per cent of the project cost subject to a maximum
of Rs. 10 lakhs per project. Assistance under the NEF will be
provided at a service charge of 5 per cent per annum. Under the
National Equity Fund Scheme, 30 per cent of the investment will be
earmarked for the Tiny Sector.
16.0 Infrastructure Support
16.1 The Integrated Infrastructure Development (IID) Scheme
will progressively cover all areas in the country with 50 per cent reservation for rural areas. Under this Scheme, 50 per cent of
the plots will be earmarked for the tiny sector (as against 40 per
cent done earlier). (Annexure-VII)
16.2 Under the National Programme for Rural Industrialisation,
cluster development is being taken up by KVIC, MSME-DO, SIDBI
and NABARD. The major beneficiaries of Cluster
Development Programme will be Tiny Sector Units. The sponsoring
organisation for each cluster will provide for design development,
capacity building, technology intervention and consortium marketing.
A Cluster Development Fund will be created under the Plan.
17.0 Technological Support
17.1 Under the Scheme of Capital Subsidy of 12 per cent for
investment in technology upgradation in select sectors, preference will be
given to the Tiny Sector.
18.0 Marketing Support
18.1 Preference will be given to the Tiny Sector while organising
Buyer-Seller Meets, Vendor Development Programmes and Exhibitions.