UP to establish 15 SSI clusters | india | Hindustan Times
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UP to establish 15 SSI clusters

india Updated: Feb 04, 2007 11:04 IST
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The state government planned to establish a total of 15 clusters of SSI units in the state, Principal Secretary, Small Scale Industry and Export Promotion Govindan Nair said on Saturday.

“We have already begun studies and surveys are being carried out to establish the SSI clusters in the State. There are many industrial units in the small and cottage industry sectors in Uttar Pradesh which have made a mark in the global marketplace with their products,” he told participants of a seminar titled “SME in International Trade and WTO-Vision 2010” organised by the Indian Industries Association (IIA) at the India Food Expo 2007 & UP Industrial Expo 2007 at Laxman Mela Ground in the state capital.

He said that the State Government had recently announced a scheme of providing interest subsidy of 5 per cent on term loans to SSI units upto Rs 50,000 for five years totalling Rs 2.50 lakh for promotion of small scale sector in the State.

The SSI units in the State were paying much higher interest rates on bank loans ranging from 11.50 to 12.50 per cent compared to prevailing interest rates of a mere 6 per cent charged annually for term loans in the global market. As a result, the small scale sector had been reeling under a heavy interest burden affecting their competitiveness, Nair said.

He said that the general manager of District Industries Centre (DIC) had been entrusted with the responsibility of implementing the interest subsidy scheme of the State Government.

“There is a lot of emphasis on promotion of tiny , small and medium sector industries in the 11th Five Year Plan and the government would like to invite suggestions from the industry as to how various industrial promotion schemes could be effectively implemented in the State”, Nair added.

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