HIGHLIGHTS OF THIRD CENSUS OF SSI SECTOR


The main highlights of the Third Census of Small Scale Industries are as follows:


Registered SSI sector
Unregistered SSI sector
Total SSI sector
Sickness in SSI sector


  1. Registered SSI sector

    • All the SSI units permanently registered up to 31-3-2001 numbering 22,62,401 were surveyed on complete enumeration basis, of which 13,74,974 units (61 %) were found to be working and 8,87,427 units (39 %) were found to be closed.


    • Of the 13,74,974 working units, 9,01,291 were SSIs and 4,73,683 were SSSBEs. Thus, the proportion of SSIs was 65.55 %. About 5.08 % of the SSI units were ancillary units. The proportion of the units operating in rural areas was 44.33 %.


    • In terms of no. of working units, six States, viz., Tamil Nadu (13.09 %), Uttar Pradesh (11.85 %), Kerala (10.69 %), Gujarat (10.08 %), Karnataka (8.04 %) and Madhya Pradesh (7.41 %) had a share of 61.16 %.


    • With regard to closed units, six States, viz., Tamil Nadu (14.33 %), Uttar Pradesh (13.78 %), Punjab (9.32 %), Kerala (8.43 %), Madhya Pradesh (7.4 %) and Maharashtra (6.11 %) had a share of 59.37 %.


    • The per unit employment was 4.48. The employment per Rs. one lakh investment in fixed assets was 0.67.


    • Rice milling industry topped the list in terms of gross output. In terms of exports, textile garments and clothing accessories industry was on top.


    • Compared to Second Census, the Third Census brought out some structural changes in the registered SSI sector. While the proportion of working units remained the same by and large, the domination of SSIs among the working units has been reduced considerably from 96 % to 66 %. This is mainly due to the increase in the number of units engaged in services. The per unit employment has gone down from 6.29 to 4.48. The per unit fixed investment has gone up from Rs.1.60 lakhs to 6.68 lakhs. This could be due to technological upgradation.

  2. Unregistered SSI sector

    • This sector was surveyed using a two-stage stratified sampling design. Out of the 9,94,357 villages and urban blocks, 19,579 villages and urban blocks were surveyed to identify the units of unregistered SSI sector. Out of these, information was completely received in respect of 19,278 villages and urban blocks. In these villages and urban blocks, the enumerators selected 1,68,665 unregistered SSI units for survey, but they could actually survey 1,67,665 units.


    • The size of the unregistered SSI sector is estimated to be 91,46,216. Of these, only 38.75 % were SSIs and the rest were SSSBEs.


    • The reasons for non-registration were elicited in the Third Census. Interestingly, 53.13 % of the units informed that they were not aware of the provision for registration, while 39.86 % of the units indicated that they were not interested.


    • About 45.38 % of the units were engaged in Services while 36.12 % were engaged in manufacturing and the rest of the 18.5 % in repair/ maintenance.


    • Maximum number of unregistered SSI units (16.89 %) were located in Uttar Pradesh. The other States having very high concentration of unregistered SSI units were Andhra Pradesh, West Bengal, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Bihar, Rajasthan and Gujarat.


    • 96.9 % of the units were proprietary units and about 1.13 % of the units were partnership units.


    • The average employment was 2.05 and the employment generated per one lakh fixed investment was 3 persons.


    • About 10.13 % of the units were women enterprises and 57 % of the units were managed by socially backward classes.

  3. Total SSI sector

    • The size of the total SSI sector is estimated to be over one crore (1,05,21,190). About 42.26 % of these units were SSIs and the rest were SSSBEs. The number of ancillaries among SSIs were 2.98 %.


    • About 47.22 % of the units were located in Uttar Pradesh, Andhra Pradesh, Maharashtra, Madhya Pradesh and Tamil Nadu.


    • The Services Sector emerged as the dominant component in the Total SSI Sector with a share of 44 % of the units.


    • Although registration is voluntary in the SSI sector, the registered SSI sector was found to be the cream of the Total SSI sector. In terms of size, it was only 13 %, but in terms of investment its share was 59 % and it contributed to 59 % of the total production.


    • About 95.8 % of the units were of proprietary type of ownership. Entrepreneurs belonging to socially backward classes managed about 56 % of the units.


    • The number of women enterprises was 10.11 %. The number of enterprises actually managed by women was 9.46 %.


    • The number of women employees was of the order of 13.31 %. The employees belonging to socially backward classes numbered 57.45 %.

  4. Sickness in SSI sector

    • Sickness was identified through the latest definition of RBI given by Kohli committee and incipient sickness was identified in terms of continuous decline in gross output.


    • Sickness in the Total SSI sector was of the order of 1 %, whereas in the registered and unregistered SSI sectors it was 3.38 % and 0.64 % respectively.


    • The maximum number of sick units were located in West Bengal, Kerala, Maharashtra, Karnataka and Andhra Pradesh. About 59.53 % of the sick units were located in these five States.


    • Out of the units having loan outstanding with institutional sources like banks and financial institutions, sickness was about 19.6 % in the registered SSI sector and 16.61 % in the case of unregistered SSI sector. In the Total SSI sector, this percentage was 17.8.


    • Incipient sickness identified in terms of continuous decline in gross output was 11.5 % in the registered SSI sector and 6.48 % in the unregistered SSI sector. In the Total SSI sector, this percentage was 7.4.


    • Combining the three yardsticks used to measure sickness, viz., (a) delay in repayment of loan over one year, (b) decline in net worth by 50 %, and (c) decline in output in last three years, about 13.98 % of the units in the registered SSI sector were identified to be either sick or incipient sick, while this percentage was only 6.89 in the case of unregistered units. In the Total SSI sector, this percentage was 7.82.


    • The States of Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, and Maharashtra had maximum number of sick/ incipiently sick SSI units. These five States together accounted for 54.28 % of the sick/ incipiently sick SSI units in the country.


    • 'Lack of demand' and 'Shortage of working capital' were the main reasons for sickness/ incipient sickness in both the registered and unregistered SSI sectors.



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