3. viz., micro, small and medium. It


3. The Integrated Infrastructure Development has been extended in entire country with 50 per cent reservation for rural areas. 4. A new Scheme called Market Development Assistance was launched for SSI sector. 5. A credit guarantee scheme was launched to provide guarantee for loans up to Rs. 50 lakh to solve the problem of collaterals. 6.

A credit linked capital subsidy scheme for technology upgradation was launched. 7. As a result of Dereservation Policy, the number of items reserved for the SSI sector came down from 836 in July 1989 to 114 in March 2007.

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Only 14 items are reserved for small-scale sector. 8. MSMED Act was enacted in 2006. It provides the first-ever legal framework for recognition of the concept of “enterprises” (comprising both manufacturing and services) and integrating the three tiers of these enterprises, viz.

, micro, small and medium. It also provides for a statutory consultative mechanism at the national level with wide representation of all sections of stakeholders, particularly the three classes of enterprises. As a result of all these efforts, there has been a considerable expansion of bank credit to the small- scale sector. As at the end of March 2007, the amount of bank credit outstanding against small-scale industries stood at Rs.

1,02,550 crore which was 7.8 per cent of gross bank credit and 19.7 per cent (i.e. one-fifth) of total priority sector advances by banks.

Eleventh Five Year Plan provides an outlay of Rs. 11,500 crore for MSME (micro, small 1 and medium enterprises) sector. The production of micro and small enterprises (MSE) sector is targeted to increase from Rs. 6, 82,613 crore in 2007-08 to Rs. 13, 98,803 crore in 2011-12 at current prices (compound annual rate of growth being 15.

4 per cent) while employment is targeted to increase from 322.28 lakh persons to 391.73 lakh persons over this period (compound annual rate of growth being 4 per cent).

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