The budget and the manufacturing sector

01-Mar-06

5 industries with employment opportunities identified in manufacturing sector, including textiles, food processing, petroleum, chemicals and petrochemicals, leather and automobiles. A Task Force has been setup to facilitate development of large PC&P Investment Regions; three such Investment Regions expected to be developed in 2006-07. 180 items have been identified for dereservation; to give impetus to lending by SIDBI, SMEs to be recognised in the services sector and small scale enterprises in services sector to be treated on par with small scale enterprises in manufacturing sector. Corpus of Credit Guarantee Fund to be raised from Rs.1,132 crore to Rs.2,500 crore in five years. Credit Guarantee Trust for Small Industries to be advised to reduce guarantee fee from 2.5% to 1.5% for all loans. Insurance cover to be extended to 30,000 borrowers. 10 schemes drawn up under a 5 year National Manufacturing Competitiveness Programme, including promotion of ICT, mini tool rooms, design clinics and marketing support for SMEs; implementation to be in the PPP model.