3. CREDIT PLAN

PROFILE OF THE STATE

 INTRODUCTION

Sikkim the 22nd state of Indian Union is the most peaceful and hilly state in the Indian Union.

Location

Loacted between 27º 00' 46" N - 28º 07' 48" N latitudes and 88º 00 58" E - 88º 55 25" E longitudes in the Himalayas. It is bounded by Nepal in the west, China in the north, Bhutan in the east and West Bengal in the south. Teesta and Rangit are the two major rivers of the state.

Capital - Gangtok

Districts- There are four districts in Sikkim i.e. North(HQ at Mangan), South (HQ at Namchi), East(HQ at Gangtok) and west (HQ at Gyalshing). In all, there are nine revenue sub-divisions.

Area- 7096 sq. kilometers (0.22% of the total area of the country) but the habitable areas are up to the altitude of 2100m constituting around 20% of the total area. The strech from north to south is 112 kilometers and that from east to west is 64 kilometers. The altitude varies from 300 meters above sea level to 8598 meters above sea level. the areas available for cultivation are not more than 12% of the total area. The North district covers almost 60% of the total area of the State, but with least population among the four districts. Forty - three percent of the state is covered with forests. The mean annual rainfall varies from 2000mm to 4000mm.

Population - The population of Sikkim is 5.65 (0.06% of the population of the Country) in 2001. there are three main ethnic communities viz Nepali, Bhutia, and Lepcha with the Nepalese forming almost seventy percent of the Sikkimese population. The density of population is 57 per sq. km against the national average of 267. The sex ratio is 878 quite below the national average of 929. The decennial growth rate for 1981-1991 was 28.47%. Ninety –one per cent of the population lives in the villages according to 1981 census.

Literacy -Sikkim has a very high literacy rate of around 82% at present.  

Occupation- The major occupation of the people is agriculture and large cardamom, ginger and tea are the major cash crops.

FIGURES AT A GLANCE

SIKKIM VIS-À-VIS INDIA

Administration

  Sikkim is the 22^nd state of the Indian Union. It became a state of the Indian Union under the constitution (Thirty-eight Amendment) Act, 1975. Sikkim has the largest area and the highest production of large cardamom in India. Under the unicameral legislature, it has 32 seats of legislative assembly. One member each represents the state in the Lok Sabha and Rajya Sabha. It has 9 sub-divisions, 92 Zilla Panchayat ward, 159 unit of Gram panchayat and  452

Population

The population of Sikkim is 0.54 million according to 2001 census and is scattered over 4 district and 452 villages. The State has the density of 76 persons per sq. km. As against decadal growth rate of 21.54% at the national level, the population of the State has grown by 33.06% over the period 1991-2001. The sex ratio of Sikkim at 875 females to 1000 males is lower than the national average of 933. Female literacy of the State rose to 61.46% from 46.76% in 1991.  The population of Sikkim is mainly made up of the Lepehas, the Bhutias and their allied clans and the Nepalese.

Occupational Pattern

Tea in Sikkim

Tea grown in Sikkim is famous by its brand name 'Temi Tea'. Temi Tea estate is located in
Temi, South Sikkim and  is one of the best tea producing tea estate in the  country. It was  established  in  the  year 1969 with an estimated area of  437 acres. It employees a total number of 406 wokers and 43 staff members.  It   produces about 100 MT tea annually. During the year 1997-98 the production  figure of  Temi    Tea  garden  has  drastically improved by producing 1,16,000 Kgs. tea leaves which is the highest record  ever achieved till date. During this year a  total revenue of  Rs.  2.18 crores  was credited  to  the State  exchequer. Temi  tea  garden  received All  India Quality  Award ; from  Tea  Board  of  India  for  the  two consecutive years i.e. 1994 and 1995.                

                                                                                                                                                           The orthodox  variety  of  tea of  Temi Tea is very rich in flavour  and  has  high  export  potential,  which  is  only partially  tapped  thus  far. To its credit, Temi Tea fetches one  of  the  highest  prices  at  the  Kolkata  Tea Auction. Under  the  assistance  of  Temi  Tea  Board, tea growers society  like  Sang-Martam  Tea  Growers'  Cooperative Society  has  started  flourishing which will further increase the products. Efforts are underway to source direct buyers in foreign markets for Sikkim's tea and the field is open for investors  interested  in  increasing Sikkim's tea production capabilities.

Temi Tea Garden, the only garden in Sikkim, will be fully organic by April 2008. The garden began its foray into organic conversion from April 2005 under the guidance of  Institute of Marketeology (IMO), a Switzerland based agency.

Sang - Martam Small Tea Growers -

                 The Sang Martam Small Tea was established in 1998. This is a society where small farmers will merge the land holdings pool together their lands to start tea plantation.
                The total area of land under the cultivation of this society is around 75 acres. The society has a total of 140 members. Since the gestation period is long, tea plucking has started only recently. They are sending the green leaves to Temi Tea Factory for processing. However, a regular tea factory is being proposed. The tea produced will be of orthodox variety.


TOURIST ARRIVAL

               TOURIST                              2002-03                       2003-04                       2004-05

DOMESTIC                             160789                          201108                          234394

INTERNATIONAL                    8439                            12389                            14774

 Source: Tourism Department, Govt. of Sikkim

 Literacy

COMPARATIVE SEX RATIO (Females/1000 males)

Source : Census of India 2001

Child Sex Ratio (0-6 Yrs) Females per 1000 Males

Source : Census of India 2001

LITERACY (%)

Source : Census of India 2001

  Land Use Pattern and Agriculture

FOOD SECURITY AND AGRICULTURE DEVELOPMENT

CLASSIFICATION OF LAND

 Source : Food Security And Agriculture Development Department

AREA, PRODUCTION AND AVERAGE YIELD

Source: Food Security & Agriculture Dev. Department

FOREST ENVIRONMENT & WILDLIFE MANAGEMENT

CLASSIFICATION OF FOREST AREA BY LEGAL STATUS

The recorded Forest Area in the State is as under: -

(in Sq Km.)

Source: Forest, Environment And Wildlife Management Department

Recorded Forest Area Statistics for Sikkim

(A)       Reserved Forests (including tree forest, pasture, alpine shrub

and uncultivable Alpine regions such as perpetual snow,

glacier and alpine lakes etc.) = 5452.40sq.km

(B)       Protected Forest (Ownership with Government)

Khasmal Forest                                    -          285 sq.km.

Gaucharan Forest                                 -           104 sq.km.

Total Protected Forests                       -           389.00 sq.km

Total Recorded Forest Area (A+B)      -          5841.40 sq.km.

(which is 82.32% of

total geographical

area of the State).

Source: Forest, Environment And Wildlife Management Department

 Animal Population as per 2003 census

ANIMAL HUSBANDRY, LIVESTOCK, FISHERIES &

VETERINARY SERVICE

ESTABLISHMENT OF VETERINARY SERVICES

Source:Department of AH&VS, Govt.of Sikkim

LIVESTOCK POPULATION

 Source: Department of AH&VS, Govt. of Sikkim.

 Industry

The entire State has been classified as non-industrial area for which a new industrial policy has been framed by the government.  To promote and develop the industrial base several micro, small & medium enterprises have been concentrated in Melli and Manpur in South District and Majhitar, Saramsa and Sang Khola in the East district which have been identified as industrial growth centres.  Both the Commercial Banks and Sikkim Industrial Development & Iunvestment Corporation Ltd. (SIDICO) have been instrumental in the setting up of the major industries located in these areas.

 District Industries Centre (DIC), established at Jorethang and Gangtok are providing technical support, training and entrepreneur development programmes and marketing support to the artisans and tiny industries.  Cottage and agro-based industries are also being assisted by the Government.  Schemes for industrial incentives have been provided to SSI units by the Government.  However, lack of local entrepreneurial talent and marketing constraints is proving to be a hindrance on the road to industrialisation.

 Roads, Communication and Transport

Sikkim is a landlocked mountainous State with unnavigable rivers abnd streams and is entirely dependent upon road transport.  To consolidate the existing roads, transport sector and to develop the communication network the State Government has been constructing new roads and bridges besides maintaining and improving existing road network of the State.  Out of the total of 421 Revenue Blocks in the State.  155 Revenue Blocks have Post Office/Sub-Post Offices located within it.

 Public Health

HEALTH INDICATORS OF SIKKIM            

The Total Fertility Rate of the State is 2.5. The Infant Mortality Rate is 33 and Maternal Mortality Ratio is NA (SRS 2001 - 03). The Sex Ratio in the State is 875 (as compared to 933 for the country). Comparative figures of major health and demographic indicators are as follows:

 Table I: Demographic, Socio-economic and Health profile of Sikkim State as compared to India figures 

 Table II: Health Infrastructure of Sikkim 

    (Source: RHS Bulletin, March 2007, M/O Health & F.W., GOI) 

The other Health Institution in the State are detailed as under: 

  Power

The State Government has been attempting to improve the power situation by harnessing of the hydro-electric potentialities of the major rivers and streams in the State.

ENERGY AND POWER

DETAILS OF ENERGY GENERATION FROM HYDEL

PROJECTS FOR YEAR 2004-05

Source : Energy & Power Department

 Refinance Agencies

The Small Industries Development Bank of India (SIDBI), National Bank for Agriculture & Rural Development (NABARD) are functioning in the State to provide refinance facilities to the Commercial Banks for their priority sector advances through their office at Gangtok.  SIDBI is not only refinancing the Commercial Banks but is also actively involved in direct lending to the small traders, self-employed people and the poor in the pursuit of their activities.

Insurance

Insurance cover is being widely extended to shops, vehicles, industries, animals, buildings, etc by the General Insurance corporation of India through its subsidiaries, the National Insurance Company Ltd and the New India Assurance Company Ltd.  the Deposit Insurance & Credit Guarantee Corporation (DI & CGC) Act, 1961 has also come into force in the State.  Life insurance Corporation of India has also been well established in the State.

 Crop Insurance

The government of India launched a new scheme entitled National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana) to cover all farmers in the country, including those growing commercial and horticultural crops.  The objective of the scheme is to provide a safety net for farmers in the event of natural disasters, as well as pest attacks and diseases.  The said scheme was to take effect from the Rabi season for the year 2000.  In line with the Government of India decision, the Government of Sikkim also decided to implement the scheme in Sikkim for which a Gazette Notification No.209 was issued.

CREDIT LINKED DEVELOPMENT PROGRAMMES IN THE STATE

The Sikkim Annual Plan 2008-09 aims to develop the agriculture, floriculture and horticulture sectors of Sikkim. A sum of Rs 852 crores has been allocated by the Planning Commission of India which is inclusive of an additional assistance of Rs 77 crores has also been finalized.

The Sikkim Annual Plan 2008-09 has been recently finalized and a disbursement of Rs 852 crores has been granted by the Planning Commission of India. This amount includes Rs 77 crores that has been allocated by the Central Government of India for the aforesaid financial year. The overall performance of the Indian state of Sikkim was decent during the last fiscal. The state excelled in areas like health and education along with other priority programs. The Commission is of the opinion that the state should concentrate more for the development of physical infrastructure and should encourage & involve private partners. The human development index of Sikkim also registered better growth in comparison to other Indian states.

Mr Montek Singh Ahluwalia, Deputy Chairman of Planning Commission and the Chief Minister of Sikkim, Mr Pawan Chamling, both agreed that despite achieving decent growth targets in the 10th plan, more effort is needed to develop the agriculture, floriculture and horticulture sectors in Sikkim. Tourism industry and development of human resources are other areas that need further attention to help generate more employment in the state. More than 40% of the fund has been allocated for the development of the social sector of Sikkim. 17% of the funds have been allocated for the development of education in the state. Improvement of the overall economy of the state is the prime focus. Rs 1000 crores have been earmarked for the development of high value, low volume environment friendly industries in the state. Establishment of a Central University in the state has also been proposed. This is to be executed with the assistance of Central Government. Increase in investments is a major focus area of the Sikkim Annual Plan 2008-09. Moreover, election in rural areas of Sikkim would help accelerate the developmental work and the overall development of economy of the state.

Agriculture

In view of the State's economy being predominantly agriculture based, emphasis has been placed by the State Government on the development of cash crops. The soil and climatic conditions are conducive for the production of commercial cash crops such as large cardamom, ginger, potato, turmeric etc. Fruits like orange, guava, papaya etc. are also considered suitable in those areas of the state enjoying warmer climates.

ANIMAL HUSBANDARY

(a) Dairy Development
Animal Husbandry and Dairy Development play an important role in the rural economy of the State. Effective integration of the farming with animal husbandry at the village level is essential for optimum utilisation of the farm and it's by products, engagement of farm labourers all year round and to augment the income of the rural population as well as to make available adequate quantities of protein rich food items such as milk, eggs, meat etc. for the State. With these objectives in mind, the Department of Animal Husbandry aims to bring about an overall improvement in livestock management and improvement in the breeding programmes through the departmentally run breeding farms for genetic upgradation, fodder development, consolidation of the infrastructure for ensuring effective and timely veterinary services and embryo transfer technology. Subsidy linked schemes for setting up dairy farms linked with Bank finance have been initiated introduction of hybrid livestock from outside the State and consolidation of infrastructure inputs and services by the animal Husbandry and Veterinary Services Department are essential to maintain the tempo in the development of dairy sector.

(b) Piggery Development
There is vast scope for development of piggery farms in the State in view of the large demand for meat and its by products for domestic consumption. The State Animal Husbandry and Veterinary Services Department is currently engaged in strengthening the piggery breeding farms established in the State to meet the growing demand of the farmers for quality piglets. Schemes for setting up piggery farms, subsidised by the Government and linked with Bank finance, have been gaining popularity among the rural population.

(c) Poultry Development
The high demand for eggs in the State for domestic consumption is largely met by imports from outside the State. The potential for development of poultry in the State to meet the growing demand for eggs and meat as well as to establish viable poultry farms has been initiated by the Department of animal Husbandry and Veterinary Services in collaboration with M/s Venkateswara Hatcheries Ltd., Pune, to implement the Integrated Poultry development Programme in the State. The project envisages establishment of a hatchery and breeding farm Sikkim Hatcheries Ltd, a joint venture company promoted by Sikkim Poultry development corporation and M/s Venkateswara Hatcheries Ltd and establishment of six poultry societies for the maintenance and supply of chicks, distribution of feed and provision of veterinary services to the poultry farmers of the State.

(d) Goatery Development
A huge demand for mutton in the State exists. Development of the cross breed animals yielding higher meat, is, therefore, of priority to cater to the domestic requirements as also for the Armed Forces in the State. However the ecological damage viz denudation of vegetation and soil erosion caused by grazing goats has been viewed with concern by the State Government. Stall feeding of goats inside fenced is, therefore, being encouraged to avoid ecological damage.

INDUSTRY

The entire State is a backward and non-industrial area and consists of difficult hilly terrain. The road communication network to the nearest railhead at Siliguri is subject to the vagaries of the landslides caused by the heavy monsoon rains. The emphasis of the State Government in the 9th Plan is, therefore laid on setting up productive small scale and tiny industries requiring raw materials available locally, consolidating and improving the existing industries, assisting rural artisans for self employment developing local handicrafts and entrepreneurs. The establishment of industrial belt in Manpur, MaJhitar and Saramsa has resulted in a slow but steady growth of industries in these areas. The District industries Centre at Gangtok and Jorethang and Directorate of HanDICRAFTS & Handloom And Sikkim rural Development Agency among others, have been instrumental in creating industrial awareness among the rural population as well as providing training and marketing support etc. to the rural artisans for the development of the traditional cottage and tiny industries. The industrial activity in the state is expected to further boost up after the implementation of the new industrial policy for the State which has come out with a series of facilities for the new entrepreneurs.

SPECIAL PROGRAMMES

Implementation and allocation of funds for special programmes viz. Developmental activities of Scheduled Castes/Scheduled Tribes and OBC Corporation, Khadi and Village Industries Board, waste land development,

development of new and renewable sources of energy, special oilseed development programmes etc. is being made by the respective Government Departments in the State through their State/Central funded direct development programmes. Margin Money Scheme of Khadi and Village Industries Commission is also being implemented in the State linking the programmes with Bank finance.

SUPPORT/BACK-UP ACTIONS NECESSARY FROM DIFFERENT AGENCIES

1. Central Government enactment's directly affecting the Commercial banks in the State, have gradually been enforced in the State thereby protecting the Bank's interest.

2. However, certain important enactments like liquidation as per Model Bill as recommended by the Talwar Committee Indian Companies Act etc. if enacted soon could be of mutual benefit to Bankers as well as theborrowers.

3. With the rapid expansion of Bank branches, the involvement of Commercial banks in the development of rural areas has increased year after year 76% of Bank branches are located in rural areas. The need to expand the Insurance network has been discussed at the appropriate forum. The Insurance agencies operating in the State are requested to continue their pursual with their higher authorities for opening of branches in the districts to cater to the rural masses.

4. Besides this, the State Government Departments and other developmental agencies directly linked with the implementation of the Lead Bank Scheme are requested to provide the following support for back-up action.

DEPARTMENT OF ANIMAL HUSBANDRY & VETERINARY SERVICES

1. Dairy Development
i. Good quality cross breed milch cows required for dairy farm scheme may be made available on regular basis to the prospective dairy farmers.
ii. Artificial Insemination Centres, Veterinary Services may be expanded to ensure ready access and availability of the requirements of the beneficiaries in far flung rural areas.
iii. Arrangements for adequate supply of cattle feed as is being done in other States may be ensured.
iv. All Sikkim Milk Producers' Co-operative Society may be further strengthened with improved infrastructure and extension services. The facilities of milk routes may be extended in North District also. Efforts for full capacity utilisation of the milk chilling plants at Mangan and Sankalang to be made.
v. Training in improved dairy farming techniques may be arranged
vi. Timely release of subsidy to be ensured in respect of loan applications sponsored under Government sponsored schemes.

2. Piggery Development
i. Adequate supply of cross breed piglets to be ensured.
ii. Availability of adequate supply of pig feed to be arranged for the farmers.
iii. Training in improved piggery farming techniques may be arranged.

3. Goatery Development
Arrangement for availability of improved varieties of cross breed goats if made would go a long way in improving the stock of animals in the State.

4. Poultry Development
Promotion of Co-operative Societies for providing infrastructure support to the farmers byway of imparting of training to the prospective farmers, supply of quality chicks from M/s Sikkim Hatcheries Ltd., supply of feed, prompt veterinary services, buy-back of eggs and broilers (live) would enable the activity to achieve stability, self sustaining level and success.

5. Fishery Development

i. Proper training facility, technical guidance and monitoring etc. to be provided on an ongoing basis to the selected beneficiaries under pisciculture scheme.
ii. Adequate and uninterrupted supply of fish fry and feed to be made available at convenient locations along with proper marketing support to the fish farmers for success of the scheme.

Dated 12^thMay,2008.

1. MAJOR PROGRAMMES /SCHEMES

Recognizing the enormous contribution of the micro and small enterprises (MSEs) in industrial production, providing widely disbursed employment, equitable regional development as also their locational flexibility and adaptability in the face of the competition, a major promotional package for the sector has been formulated which, inter alia, include issues concerning

i) Legislative back up;

ii) Credit support

iii) Fiscal measures;

iv) Support for cluster based development

v) Technological and Quality Upgradation Support,

vi) Marketing Support

vii) Support for Entrepreneurial and Managerial Development

viii) Empowerment of Women owned enterprises; and

ix) Strengthening of Data Base of MSME Sector.

After examining the issue in detail and with the approval of Planning Commission, the following Central Sector Schemes (modified and merged) are implemented:-

2. QUALITY OF TECHNOLOGY SUPPORT INSTITUTIONS AND

PROGRAMMES

This Scheme consists of the following sub-components:-

1. Tool Rooms & Technical Institutions;

2. Credit Linked Capital Subsidy Scheme;

3. ISO 9000/14001 reimbursement Scheme;

4. Various Schemes formulated under NMCP viz. National Programme on Application on Lean Manufacturing, Promotion of ICT in Indian manufacturing sector, Mini Tool Rooms, Technology and Quality Upgradation Support for SMEs. Support for Entrepreneurial and Managerial Development of SMEs, Design Clinic Scheme, Enabling Manufacturing Sector to be Competitive

through Quality Management, Marketing Support/Assistance to SMEs, etc. These Schemes are being designed to enhance the competitiveness and efficiency of the units. Vertical Shaft Brick Kiln (VSBK) and Technology Mission are the other two components of this Scheme.

2.1 Tool Rooms & Technical Institutions

The Tool Room Scheme consists of equipping 10 existing Tool Rooms and a component Scheme of Central Assistance to States for setting up Mini Tool Rooms. These Tool Rooms & Training Centres provide production, training and consultancy services in the areas of tool engineering, i.e., facilities for production of tools, moulds, dies, jigs & fixtures, etc., and providing skilled manpower to industry. These services help the industry become more productive & competitive. The plan Scheme also consists of funding the activities of the following field institutions by way of upgradation of equipment and machinery:

(1) Electronic Service & Training Centre, Ram Nagar, Uttarakhand;

(2) Centre for Development of Glass Industry, Firozabad;

(3) Process-cum-Product Development Centre, Meerut, U.P.

(4) Process-cum-Product Development Centre, Agra, U.P.

(5) Fragrance and Flavour Development Centre, Kannauj, UP;

(6) Institute for Design of Electrical Measuring Instruments, Mumbai,

Maharashtra

(7) Central Institute of Tool Design, Hyderabad, Andhra Pradesh

2.2 Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation

The Credit Linked Capital Subsidy Scheme (CLCSS) aims at facilitating technology up-gradation by providing upfront capital subsidy to SSI units, including agro & rural industry units (within the functional purview of the Ministry of Agro and Rural Industries) in addition to institutional finance (credit) availed of by them from banks, for modernisation of their production equipment (plant and machinery) and technology, both existing SSI units registered with the State Directorates of Industries, and new SSI units which have set up their facilities with the appropriate eligible and proven technology. The Scheme provided for 15% capital subsidy to SSI units including tiny units, on institutional finance availed of by them for induction of well established and improved technology in selected sub sectors/products approved under the schemes. The ceiling on loans under the scheme is Rs. 1.00 crore

2.3 ISO 9000/14001 reimbursement

ISO-9000 Reimbursement Scheme envisages reimbursement of charges for acquiring ISO-9000/14001 to the extent of 75% of the cost, subject to a maximum of Rs.75, 000/-. All SSI units with permanent registration are eligible to avail of the Scheme. The Scheme provides one-time reimbursement.

3. PROMOTIONAL SERVICES INSTITUTES AND PROGRAMMES

Sub-components of this Scheme are as follows:-

MSMEDO Officers’ Training Programme, MSME-DIs (includes provision for Workshops/Training), RTCs/FTSs/Testing Centres by Industry Associations, MDP/EDP/Skill Development (includes for women; weaker sections and minorities; National Award (Entrepreneur & Quality); Vendor Development Programme for Ancillarisation; Support for Entrepreneurial & Management Development of SMEs; Scheme for Conduct of Tailor made courses for new entrepreneurs through select business Schools, Technical Institutes, etc.; Scheme to support 5 select universities/colleges to run 1200 entrepreneurs clubs; Scheme for capacity building, strengthening of data base and advocacy by industry/enterprises associations, Land & building fro Office accommodation and residential accommodation in backward areas.; Training-cum-Product  evelopment Centre, TDPCs’ Advertising & Publicity; SENET Project; Publicity & Exhibition includes participation in 25 exhibitions and marketing facilitation for women.

4. MSME CLUSTER DEVELOPMENT PROGRAMME:

The Sub-components of this Scheme are as under:-

1. Cluster Development Programme (including IID subsumed)

2. MSME Growth Poles

Cluster Development Programme (including IID subsumed)

Clusters are defined as a Sectoral and geographical concentration of micro, small and medium enterprises with inter-connected production system leading to firm/unit level specialisation and developing local suppliers of material inputs and human resources. Availability of the local market, inter-mediaries for the produce of the cluster is also a general characteristics of the cluster. The IID Scheme has been subsumed in the SICDP and all the best features of the IID scheme will be covered under the cluster development. In March 2006, the guidelines of the Small Industries Cluster Development Programme (SICDP) have been modified with a view to broad –basing the Scheme and enabling extensive interventions in selected industrial clusters in areas like technology upgradation, marketing, infrastructural upgradation, credit facilitation, establishment of Common Facility Centres, attainment of quality certification, etc. The Ministry is also servicing an Empowered Group of Ministers to synergise and oversee the on-going cluster development programmes of various Ministries for which we have received Prime Minister’s in – principle approval. Currently, various measures of interventions are being implemented in 83 clusters spread all over the country.

5. MSME Growth Poles

National Commission for enterprises in the unorganized sector (NCEUS) has formulated a pilot scheme of setting up 5 growth poles for the unorganized enterprises. These five pilot projects are in Chhattisgarh, Rajasthan, Kerala, West Bengal and Uttaranchal. The DPRs likely to be finalized in 2007-08 and recommendations of the Commission likely to be submitted to Government for implementation. Growth Pole projects in other states are also likely to be set up in 2007-08.

6. CREDIT SUPPORT PROGRAMME:

This Programme consists of the following Schemes:-

1. Credit Guarantee Scheme

2. Augmentation of Portfolio Risk Fund under Micro finance Programme

3. Trade Related Entrepreneurship Assistance Development Programme for

Women (TREAD)

6.1 Credit Guarantee Scheme

The Government introduced the Credit Guarantee Fund Scheme for Small Industries in May, 2000 with the objective of making available credit to SSI units, particularly tiny units, for loans up to Rs. 25 lakh without collateral/ third party guarantees. The Scheme is being operated by the Credit Guarantee Fund Trust for Small Industries (CGTSI) set up jointly by the Government of India and SIDBI. The Scheme provides for collateral free credit facility (term loan and / or working capital) extended by eligible lending institutions to new and existing SSI units/ Small Scale Service and Business (industry related) Enterprises (SSSBEs) including Information Technology and Software Industry up to Rs. 25 lakh per borrowing unit. The guarantee cover is up to 75% of the credit subject to maximum guarantee limit of Rs. 18.75 lakh. The member lending institutions (MLI) availing of guarantee from the Trust have to pay a one-time guarantee fee of 1.5% of the credit facility (comprising term loan and / or working capital) sanctioned by the lending institution to the borrower and annual service fee of 0.75% per annum on the amount of credit facility extended by the MLI, which is covered under the scheme.

6.2 Augmentation of Portfolio Risk Fund under Micro finance Programme

Under the Portfolio Risk Fund (RCF) Govt. of India will provide funds for Micro Finance Programme to SIDBI. This fund would be used for security deposit requirement of the loan amount from the MFIs/NGOs. The MFIs/NGOs may avail the loan from the SIDBI for further lending on the support of the security deposit.

6.3 Trade Related Entrepreneurship Assistance Development Programme forWomen (TREAD)

The Scheme envisages economic empowerment of women through trade elating training, information and counselling/extension activities related to trade, roducts, services, etc. .Government grant up to 30% of the total project cost, as appraised by lending institutions, which would finance the remaining 70% as loanssistance to the applicant women. Training organisations viz., EDIs, NISIET and NGOs conducting training programmes for empowerment of women beneficiaries identified under the Scheme are provided a grant upto maximum limit of Rs.1 lakh. Training Institutions are provided need-based Government grant upto Rs.5 lakh per project for field surveys, research studies, evaluation studies, designing of training modules, etc.

7. MARKETING DEVELOPMENT ASSISTANCE PROGRAMME:

1. Export Promotion and MDA Scheme

2. National Campaign for Investment in Intellectual Property

3. Marketing Support/Assistance to SMEs

Export Promotion and MDA Scheme

The Plan Scheme consists of assistance for:-

(1) Participation in International Exhibitions/Fairs.

(2) Training Programmes on Packaging for Exports.

(3) Market Development Assistance for SSI exporters (SSI-MDA).

These activities help the units in better exposure and facilitate marketing of their products.

National Campaign for Investment in Intellectual Property

The project envisages enhancing awareness about the Intellectual Property Rights (IPR) to enable MSME to make informed decisions about protecting their ideas and business strategies, effective utilisation of IPR tools by MSME for technology upgradation & enhancing competitiveness, providing access to technical facilities and expertise for value addition to their business and financial assistance on grant of patent.

Marketing Support/Assistance to SMEs

Selection of units owned by women entrepreneurs will be identified, motivate and assist them to participate in exhibition under SIDO. Stall for showcasing their products at global markets and try to obtain business etc. For successful international marketing of products in their retail market, bar coding is an essential requirement. To promote adoption of bar coding of products by the MSEs, a scheme of reimbursement of 75% of the one time registration cost for bar coding is under operation. To encourage MSEs to adopt the practice of bar coding on a large scale, 75% of the annual fees (recurring charged by EAN India) will also be reimbursed as subsidy for the first three years.

8. UPGRADATION OF DATA BASE

This Scheme consists of the following sub-components:-

(1) Collection of Statistics

(2) Quinquennial Census

The Associations of MSEs do not have adequate capacity to collect and interpret data relating to changes in the marketing scenario, owing to the limited availability of funds and absence of expertise in the matter. As a result, their articulation of views on specific issues concerning their product groups leaves much to be desired to strengthen their role and increase their efficiency, it is proposed that financial assistance for the secretarial and advisory/extension services of 10 selected national associations may be provided annually to the extent of Rs.5.00 lakh to Rs.20,00 lakh depending upon the size and reach of the Association. The beneficiary associations will be required to provide the regular manpower at their own cost and office space and also bear 50% of the cost of modernization of their special and equipment and training of their personnel.

DEVELOPMENT PROGRAMMES FOR THE STATE

1. SWARNAJAYANTI GRAM SWAROZGAR YOHANA (S.G.S.Y.)

The multiplicity of anti poverty programmes had resulted in lack of proper intermediation, absence of desired linkages etc. To rectify the situation, Government of India decided to restructure the various self employment programmes. Accordingly the programme known as Swarnajayanti Gram Swarozgar Yojana (SGSY) was introduced with effect from 1st April,1999. As such the following programmes were abolished.

1. Integrated Rural Development Programme (IRDP)
2. Training Rural Youth for Self Employment (TRYSEM)
3. Development of women and children in Rural Areas (DWCRA)
4. Supply Improved Tools to Rural Artisan (SITRA)
5. Ganga Kalyan Yojana (GKY)
6. Million wells Scheme (MWS)

The main objective of the programme is to bring every assisted family above the poverty line in 3 years. The assisted families may be individuals or groups. Emphasis will be on the group approach SGSY is intended to cover 30% of the BPL families in each Block in the next 5 years of the programme.

In order to establish the micro enterprises for poor BPL families, the emphasis under SGSY is on the cluster approach. For this purpose each block has to identify 4-5 key activities based on the resources available, occupational skill of the people and the availability of market. The key activity is to be approved by the Block Panchayat and District Panchayat Project reports will be prepared for each identified key activities.

The security norms will be as prescribed by RBI from time to time. For individual loans up to Rs.50,000/- and group loans up to Rs.3 lakhs, the assets created out of bank loan would be hypothecated to the bank as primary security. In cases where movable assets are not created mortgage of land may be obtained. Where mortgage of land is not possible, third party guarantee may be obtained at the discretion of the bank.

3. SWARNA JAYANTI SAHARI ROZGAR YOJANA (SJSRY)

The Swarna Jayanti Sahari Rozgar Yojana is a rationalised poverty alleviation scheme launched by the Government of India. The scheme is operative from 1st December,1997 in urban town in India. The scheme has been launched by replacing SUME of NRY and Prime Minister's Integrated Urban Poverty Eradication Programme (PMIUPEP) which is not in vogue from 1st December,1997. Among other schemes, the SJSRY consists of a special scheme namely Urban Self Employment (USEP) under USEP, there are two components where credit from bank is involved viz.

a) Assistance to industrial urban poor beneficiaries for setting up gainful self employment ventures.

Projects up to Rs.50,000/- under the scheme in case of individuals are to be financed by the banks and 95% of the project cost would be sanctioned as composite loan. The borrower has to bring 5% of the project cost as margin money. The Government will provide subsidy at 15% of the project cost subject to a maximum of Rs.7500/-. Partnership would also be permitted.

b) Development of Women and Children in Urban Areas (DWCUA)

The programme envisages special ventures to urban poor women to set up self employment ventures in a group. Such group may take up any economic activity suited to their skill, training, aptitude and local conditions. The group shall consist of at least 10 urban poor women and will be entitled to a subsidy of Rs.1,25,000/- or 50% of the project cost whichever is less. The members will have to bring 5% of the project cost as margin money. The bank will have to finance 50% of the project cost as loan. Where the DWCUA group sets itself as a thrift and credit society in addition to its other entrepreneurial activity, the group/thrift society shall also be entitled to a lump sum grant of Rs.25,000/- as releasing fund at the rate of Rs.1,000/- maximum per member. The group/thrift and credit society shall be entitled for the payment of releasing fund not earlier than one year after its formation.

Industry: 

The entire State is a backward and non-industrial area and consists of difficult hilly terrain.  The road communication network to the nearest railhead at Siliguri is subject to the vagaries of the landslides caused by the heavy monsoon rains.  The emphasis of the State Government in the 9^th Plan is, therefore laid on setting up productive small scale and tiny industries requiring raw materials available locally, consolidating and improving the existing industries, assisting rural artisans for self employment developing local handicrafts and entrepreneurs.  The establishment of industrial belt in Manpur, Majiatar and Saramsa has resulted in a slow but steady growth of industries in these areas.  The District Industries Centre at Gangtok and Jorethang and Directorate of Handicrafts and Handloom and Sikkim Rural development Agency among others, have been instrumental in creating industrial awareness among the rural population as well as providing training and marketing support etc. to the rural artisans for the development of the Micro and Small Enterprises.  The enterprises activity in the state is expected to further boost up after the implementation of the new industrial policy for the state which has come out with a series of facilities for the new entrepreneurs.

Market requirements:

 The current industrial scenario is encouraging.  As on 31.03.2008, there were 492 permanently registered MSMEs and 5 Nos. of Medium scale registered enterprises and five numbers of State Public Sector undertaking.