Mumbai, June 07: In an effort to put an end to `Inspector Raj' in small scale industries (SSI) sector, the Centre is planning a single law for SSI, for which a bill is likely to be introduced in the next session of parliament, Union Small Industries Minister Dr C P Thakur said today. "Often SSI units complain about the prevalence of Inspector Raj due to plethora of acts and rules pertaining to safety, security and environment and the government is working on a draft of small enterprises development bill to deal with the problems", Thakur said addressing an interactive session organised by All India Association of Industries (AIAI) here.
Small units were facing increased competition due to reduction in protection and liberalised imports, the Minister said adding these units have also complained about problems in getting timely and adequate credit from banks.
The government in consultation with Reserve Bank of India, has raised the limit for collateral free loan from Rs one lakh to Rs five lakh, he said adding "SSI Ministry will write to RBI and Finance Ministry for resolving problems about credit flow to small units".
While the government would support the SSI, these units have to be conscious about quality and cost of products to face the global competition, the Minister said.
The government was open to assisting SSI units for brand development and advertisement, he added.
Bureau Report