50 more items from SSI list dereserved

As part of efforts to enhance credit flow to small scale sector, the government on Thursday announced a number of measures including increase in limit for composite loans to Rs 500,000 and issue of 'Laghu Udyami' credit card on the lines of the Kisan Credit card scheme.

"Adequate credit flow is essential for the small scale sector," Finance Minister Yashwant Sinha said, presenting the Union Budget for 2002-03.

In order to further increase the flow of credit, Sinha said the limit for composite loans would be increased from Rs 200,000 to Rs 500,000.

He said the exemption limit for the collateral had also been increased from Rs 25,000 to Rs 500,000 while the project cost limit under the National Equity Fund had been doubled to Rs 5 million from Rs 2.5 millionb earlier.

Sinha also announced that the Credit Guarantee Fund trust would be fully exempted from income tax.

"Encouraged by the Kisan Credit Card Scheme, public sector banks have now been decided to introduce a scheme called the Laghu Udyami Credit Card scheme for providing simplified and borrower friendly credit facilities to small businessmen, retail traders, artisans and small entrepreuners, professionals and other self-employed persons including those in the tiny sector," he said.

Sinha also said that over 50 items of knitwear, agricultural implements, auto components, some chemicals and drugs had been dereserved. There are at present 799 items in the SSI reserved list.

YOU MAY ALSO WANT TO READ:
The Rediff Budget Special
The Rail Budget 2002-03
The Economic Survey 2001-02
More Budget Stories
Money