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More credit facilities needed for SSIs: PHDCCI
PTI - New Delhi

The PHD Chamber of Commerce and Industry said provisions under the credit guarantee scheme should be enhanced to Rs 1,000 crore from the present Rs 100 crore to facilitate small scale industries’ entry into high growth areas.

“Provisions available under the credit guarantee scheme for lending to small and tiny sector should be enhanced from the present level of Rs 100 crore to Rs 1,000 crore,” the chamber said in a release.

Demanding favourable schemes for SSIs, the PHDCCI urged for creation of venture capital facilities to help interested units in venturing into potential areas. Pointing to the role of SSIs in providing ancillary support to heavy industry, it said there was a need to propogate and support bill discounting mechanism for which RBI should provide discount houses similar to those in London.

Highlighting the need for establishing marketing agencies to promote products manufactured by SSIs, the chamber said these marketing companies should be given industry status for better inflow of capital and getting financial assistance from banks. “It is important to bridge the credit gap between demand and availability of credit to SSIs. For this, the

government should ensure that 20 per cent of the sector’s turnover be made available as working capital credit to SSI,” it added.