EDITORIAL

Cause of concern

It is a matter of serious concern that every major terrorist attack elsewhere in the country should have its roots in the State. The latest revelation in this newspaper can only make us sit up and take notice. According to it a Karnataka police team has already arrived in the State looking for facilitators in the sensational strike on the Indian Institute of Sciences at Bangalore. It has been told by a top Lashkar-e-Toiba commander in its custody that at least three of his accomplices continue to operate in Jammu and Kashmir. This trio including one Pakistani national had helped him in execution of the dastardly exercise in one of the biggest international hubs of information technology. What is equally disturbing is that the arms employed in the killing of a venerable professor and inflicting injuries on three others are also ... more

Will HM learn?

If we still feel for Hizbul Mujahideen it is because some of its visible faces are those of "boys" belonging to the State. The involvement of any of them in cruel and intimidatory acts becomes a matter of regret and shame for us. Their killing in the process leaves behind an acute sense of loss. Therefore, we have consistently pleaded in these columns that the HM should give up gun and settle instead for peaceful dialogue. Its emphasis on continuing "armed struggle" has placed it in the category of Lashkar-e-Toiba and Jaish-e-Mohammad........ more

Development of Doda

By Prof P R Khajuria

The sprawling Doda sub-region with its peculiar geophysical characteristics and unique socio-cultural scenario; with its centuries old known history that almost runs parallel to the history of Kashmir valley, with its brimming, calling natural resources in the form of alpine forests, sparkling streams and murmuring springs, sanguine sapphire and challenging Chandrabhaga has glued to its traditional ...more

Higher technical
rducation in J&K

By O. N. Wakhlu*

The growth of higher technical education in Jammu and Kashmir, in the last four decades has been phenomenal. In the early thirties of the twentieth century the State had to hire Engineers from outside. At that time the State Government encouraged .. ........more

Knights and warriors
of growth

By Anupam Dasgupta

Worldwide, the Small and Medium Enterprises (SMEs) are being viewed as an engine of equitable economic growth and poverty alleviation. They generate high rates of employment growth and account for a major share of industrial production and total exports. Thus, SMEs constitute one of the most important segments of the economy in a labour abundant country . . ..more

EDITORIAL

Cause of concern

It is a matter of serious concern that every major terrorist attack elsewhere in the country should have its roots in the State. The latest revelation in this newspaper can only make us sit up and take notice. According to it a Karnataka police team has already arrived in the State looking for facilitators in the sensational strike on the Indian Institute of Sciences at Bangalore. It has been told by a top Lashkar-e-Toiba commander in its custody that at least three of his accomplices continue to operate in Jammu and Kashmir. This trio including one Pakistani national had helped him in execution of the dastardly exercise in one of the biggest international hubs of information technology. What is equally disturbing is that the arms employed in the killing of a venerable professor and inflicting injuries on three others are also stated to have gone from our turf. Prima facie there is no reason to suspect both the findings which are plausible given the past record. By now it is well established that at least three major acts of terror in as many states were planned in this territory. The strategy to rock the makeshift Ram Temple in Ayodhya (Uttar Pradesh) was conceived by Jaish-e-Mohammad in Mendhar tehsil of Poonch district. If it had stopped short of hitting the target it was only because of the courage and high degree of alertness shown by the security forces. Before that the bloodshed in Akshardham Temple in Gandhinagar (Gujarat) had nearly shaken the State's ruling coalition with the arrest of some of those allegedly involved from a house belonging to a minister in south of the Valley. The pre-Diwali fireworks in the national capital that eliminated scores of innocent citizens too were provided final touches in the Kashmir region. Only recently a Delhi Police posse had travelled all the way to the Valley to get the better of perpetrators of the most heinous crime.

Should we not worry about these happenings? As it is our reputation as the possessor of a paradise has got a knocking with blood at one time flowing all over particularly on the other side of the Pir Panjal. Our lakes, rivers, hills, plains and places of worship have all been sullied by the ugly and merciless terror machine. Perhaps no other State has seen so many distinguished sons of the soil being gunned gown by the militants as we have done during the last 15 years. Some of them have been knocked out of the scene virtually unsung. An entire generation has grown up in at least one region having totally oblivious of the State's fabled social and communal harmony. Now one disclosure after the other tells us that the environment has come in handy for cunning schemers to chart out and launch a similar offensive beyond Lakhanpur. Our State has become a hideout for them to indulge in heartless deeds in other regions of the country.

There is thus a double tragedy that has gripped our State. They slay us and they slay others. There can't be two opinions that the presence of such elements in our midst poses a key challenge. They are eroding the State's image. Before they besmirch it beyond recognition we must wake up. We must call their bluff.

Will HM learn?

If we still feel for Hizbul Mujahideen it is because some of its visible faces are those of "boys" belonging to the State. The involvement of any of them in cruel and intimidatory acts becomes a matter of regret and shame for us. Their killing in the process leaves behind an acute sense of loss. Therefore, we have consistently pleaded in these columns that the HM should give up gun and settle instead for peaceful dialogue. Its emphasis on continuing "armed struggle" has placed it in the category of Lashkar-e-Toiba and Jaish-e-Mohammad both of which have evoked global aversion. How does it serve its purpose to set its own house on fire? Why does it not realise that it has a stake in normalcy, tranquility and prosperity of the State? Or is it that it has ceased to be homespun and is having its wires being pulled by some other forces? There is greater suspicion that it is playing into the hands of the elements inimical to the social and cultural ethos of the Kashmir Valley in particular. Of course, its approach is also harmful to the economic well-being of the ordinary people. Who does not know that the trade and commerce had become a serious casualty because of bloodshed in the nineties more so in the Kashmir region? The latest reports that it has warned the Kashmiri youth against joining the Central forces including the Army are indicative of its way of thinking. It has issued threats that those who join the security apparatus and their families will have their houses "locked and they will be asked to leave the Kashmir Valley". It has let out more fire by utterances like confiscating their property and holding them responsible for their own death. According to the HM, the recruitment drive by the security forces "is part of a conspiracy to goad the Kashmiri youth". It has minced no words while expressing the view that such attempts will be foiled. Obviously it seems to apprehend that such efforts will push the "freedom struggle" into background. It is small wonder then that it has visualised a spectre of "civil war" rising in Kashmir.

The HM may be well within its rights to claim that there is no difference between its "words and deeds". It can, however, do better by indulging in introspection. More than 5000 Kashmiri young persons who fulfilled the qualifying standards have already joined the Army, Central Reserve Police Force, Border Security Force and the armed wing of the State Police. This has brought cheer to their families that are faced with the problem of limited employment opportunities. Without doubt one can say that they have also understood the futility of hatred spread in their name during the last 15 years. They have seen with their eyes numerous rags-to-riches stories in the "secessionist" camp while they have been condemned to live in penury. More than anything else the HM alone can judge the fall-out of its misplaced "diktats" over the years. It has just to compare the sort of strength it was able to demonstrate in the early nineties and it does these days. If it does so it will be wiser. It will find that much water has flown down the Jhelum in the intervening period.

Development of Doda

By Prof P R Khajuria

The sprawling Doda sub-region with its peculiar geophysical characteristics and unique socio-cultural scenario; with its centuries old known history that almost runs parallel to the history of Kashmir valley, with its brimming, calling natural resources in the form of alpine forests, sparkling streams and murmuring springs, sanguine sapphire and challenging Chandrabhaga has glued to its traditional backwardness despite the soaking sunshine of independence. The ethnic, religious and dialectical multiplicity of Doda sub-region has remained intact despite the onslaught of alien influences; thus creating a variegated society. The tolerant hill folk who stalk the mountain slopes of Doda represent the essence of Indian ethos, which is a matter of pride for all of us. Doda sub-region though steeped in poverty has nurtured eminent persons in different fields who have played outstanding roles at regional as well as national level.

The peculiar geophysical conditions of Doda to require area specific, innovative and imaginative planning to alleviate and strengthen its economy. The plethora of plans devised without taking into consideration the topographical features, climate, soil composition and availability of inputs have failed to yield the desired results, thus creating a kind of stagnation in the economy. The infrastructure created so far needs to be further strengthened and expanded to meet the ever increasing population pressure and mobility. The areas which need to be addressed are as follows.

Agriculture : Diversification of agriculture is the need of the hour. The marginal farmers of Doda have been cultivating traditional crops for centuries. The unpredictable weather conditions marked by long dry spells have rendered most of the district drought prone one. Micro planning requires to be evolved so that the small landholders get/benefited. The cultivation of saffron, the cash crop of Kishtwar could be introduced in other parts of district, introduction of hybrids, lifting of ban on the cultivation of poppy in Doda parts will improve the lot of the ruralites of Doda. Apiculture is yet another aspect of agriculture which needs to be focused resulting into the lessening of bitterness from the lives of thousands of village folk.

Horticulture : Schemes like ''Technological Mission'' put in place recently do not match with the ground realities of Doda. Area specific schemes for the development of horticulture can give long term as well as short term dividends. The denuded hill slopes of Doda are most suitable for walnuts, pomeganate and olive. Development of fruit plant nurseries, distribution of saplings to the prospective fruit growers, setting up of fruit markets, juice, jam and pickle plants in the private sectors are tasks that need to be undertaken by the concerned department in concreted manner.

Forests : A major chunk of labour force is invariably involved with activities related to forest. Doda had the distinction of having more than one fourth of the total forest cover of the State. Over the years timber mafia has done enough damage to the luxuriant forest of Doda; but the economic condition of thousand of labourers and their dependants has only worsened. Doda forest cannot be compared with the decidous forests of Assam or Uttaranchal Pradesh. It takes decades to a deodar to grow to its full stature. The concept of afforestation may not be absolutely true in Doda context. The forest waste could be utilized in the manufacture of paper. Joinery mills should be set up within the district in public sector. It will provide employment to-hundreds of people. Setting up of industries related to minor forest produce and medicinal hubs will also boost the economy of Doda. The cultivation of medicinal plants could be taken up as experimental basis. For this purpose a branch of Regional Research Laboratory is require to be opened in the district. Small Industrial units for manufacture of turpentine oil etc from the tones of resin collected in Doda will lessen the burden of unemployment to some extent.

Tourism : The State Government has been considerate enough to set up tourist authorities at Bhaderwah and Kishtwar. A third tourism authority needs to be set up at Doda also which would cover the entire tourist circuit lying above the right bank of river Chenab. To induce tourists to visit Doda areas, the landlocked district needs to be thrown open by constructing/ completing roads leading to adjoining Himachal Pradesh and Kashmir valley. The ancient rout passing through Umasi La Pass should be developed for vehicular traffic. It will facilitate an alternate route to Ladakh via Zanskar and attract foreign tourists in large numbers. Completion of Doda-Dessa-Kapran road will be enormously advantageous from tourist point of view. The tourism development policy for Doda should cover pilgrimage tourism also. Doda sub-region has remarkable potential for pilgrimage tourism. Shrines of Muslim Saints and age old temples of serpent gods and local deities attract devotees from all over the temples of serpent gods Suber Nag at Suber Dhar, Roshara Mata and local deities attract devotees from all over the State. Development of proper infrastructure and appropriate publicity will brighten the chances of increased tourist traffic. Tourism related activities will have a sanguine bearing on the life of the people of this economically backward sub-region. The departments of archeology, information, cultural academy are required to collaborate with tourism department to explore the vast tourism potential of Doda.

Power Sector : The elephantine hydro-electricity projects presently under construction should be completed sooner than later. Along with these macro-projects micro-power projects should be constructed on the streams which have perennial, recourses. Micro power projects are suitable for the fragile ecosystem of Doda with lessened baggage of transmission risks and expenditure. Doda hills being the youngest one in the Middle Himalayan region, as such there is greater need of preserving the fragile eco-balance in these parts.

Education : The coalition Government of the State deserves our thanks for sanctioning a University campus at Bhadarwah. Like other districts of the State a women college needs to be established within the confines of Doda district, which will cater to educational needs of female population; whose literacy rate is very low in these parts a compared to other parts of the state.

Work culture : To inculcate work culture in the institutions initiated by your goodself is a most welcome step and will go a long way in streamlining the institutions paralised for the last three decades. In view of the topography and vastness of District Doda special attention needs to be ensured.

Higher technical rducation in J&K

By O. N. Wakhlu*

The growth of higher technical education in Jammu and Kashmir, in the last four decades has been phenomenal. In the early thirties of the twentieth century the State had to hire Engineers from outside. At that time the State Government encouraged young talented people to get training in countries abroad. A dozens or so young men were sent to USA and UK to get trained as graduate engineers. On their return they were the first to launch the technological era in the State. They rose to ranks of Senior Engineers under whose guidance developmental works were executed and a pool of able technicians created by imparting training locally to students in technical/vocational schools.

The next generation of engineering graduates comprised young people of merit who pursued engineering studies in institutes of repute in the country, namely, Patna, Roorkee, Aligarh, Banaras, Calcutta and Guindy, Poona etc., The output of graduates from J&K was however, still a trickle. This was not of much consequence though, because engineering works and jobs were equally negligible. In fact, it so happened that Er. R. L. Sharma, a renowned engineer of J&K after graduating in Electrical and Mechanical Engineering from Banaras Hindu University, sometime in early forty's, did not get employment or work to do in the State. It was then that he blazed the first ever entrepreneurial trail by constructing the first micro-hydel power plant at Muzaffarabad (now in PoK) as a Private Project. Later on he pioneered many power projects in the State.

Growth of new colleges and IIT's:

After the country gained independence in 1947, developmental plans for Agriculture, industry and infrastructure demanded the construction of a vast network of engineering structures throughout the land. The demand for engineering manpower grew exponentially giving rise to the building of five Indian Institutes of technology (IIT's) in the fifties and later to the establishing of eighteen Regional Engineering Colleges in the country. These Institutes were established with great foresight by Acts of Parliament and given complete autonomy. This ensured that the Institutes made rapid strides in the advancement of various disciplines of engineering. Continuous effort was devoted to further research and development in emerging areas of technology. The quality output from these institutions did excellent service to the engineering profession.

The State Governments also made their efforts to expand higher technical education to meet higher demand. The demand for engineers both in India and abroad was more than numbers graduating from institutions. Many engineers, therefore, found excellent jobs in USA; UK and elsewhere. They are now contributing to the wider spheres of technology in many ways. What was once detested as a "brain drain" is now rightly glorified as a contribution of great value to the home country.

Strides made in J&K

The State of Jammu and Kashmir also benefited from these developments. Thanks to then Prime Minister of J&K, Bakshi Ghulam Mohammad's efforts, the north zone Regional Engineering College, being planned to be established at Chandigarh, was got approved by him instead for being located in Srinagar. In May, 1959, Prof. S. R. Singh of the University of Roorkee was appointed to Advisor to the Government of J&K for the College. Later, Dr. Z. U. Ahmad of the same University became the first Principal of the College in 1960. Classes were held in September, 1960 in the renovated army barracks in Naseem Bagh. At the same time Prof. S. Radhakrishnan, President of India visited the College with Bakshi Ghulam Mohammad and blessed the first batch of students.

The REC, Srinagar, being the first to be established in J&K, became a pace setter for the growth of higher technical education. This is evident from the fact that today there are five fully fledged engineering Institutes in the State including one deemed University. Besides, there are six Universities in the State including two Universities for Agriculture Sciences which offer degree level vocational technological courses as well. The REC, Srinagar is now a Deemed University with the status of National Institute of Technology (N.I.T.). Three Colleges out of five are private sector enterprises under the scheme of All India council of Technical Education (A.I.C.T.E). Considerable progress has been achieved by these Institutes as a result of good leadership and academic inputs partly provided by the former staff of the REC, Srinagar as well as from other IIT's. The progress of higher technical education over the last four decades is evident from the following growth of Institutes in J&K:-

*Regional Engineering College, Srinagar now National Institute of Technology (Deemed University, Established 1960 (Autonomous B.O.G.)

* Sher-i-Kashmir University of Agriculture Science and Technology, Established in 1983 (Government of J&K).

*Government College of Engineering and Technology, Jammu established in 1994 (Government of J&K).

*Model Institute of Engineering and Technology, Jammu. Established in 1998 (Privately managed).

* MBS College of Engineering and Technology, Jammu, Established in 1999 (Private Trust and Board of Directors).

*SSM College of Engineering and Technology, Divar, Parihaspora, Kashmir, Established in 1999 (Privately owned and managed).

Sher-i-Kashmir University of Agriculture Science and Technology, Jammu Established in 2002.

* Shri Mata Vaishno Devi University, Established in 2003, Private Mata Vaishno Devi Shrine Board, Autonomous Management.

*Baba Ghulam Shah Badshah University, Established 2005, Awqaf Trust, Autonomous Management.

The progress is to be appreciated as good when seen in juxtaposition of the fact that the first ever modern University was established in the State in 1949.

Deficiencies - Quality of Output:

Whereas, the expansion of higher technical education is impressive there are some aspects, however, which need immediate attention. The quality of output needs much improvement in terms both of qualified graduates as well as the research output. This aspect is to be tackled at two levels. One is the quality of students intake and how to ensure this through the selection/admission process. The second is the academic excellence of the teaching staff including their capabilities for doing research and extension work. Improvements are needed in both. Some thought has been given to streamline the admission process and select the very best for engineering training.

Inadequate teaching staff:

But the problem of deficiency of adequate teaching staff is acute and rather neglected for sometime. This problem was faced in the earlier decades of 1960-80 as well. Because the engineering industries pull away the cream of engineers at high salaries, it is difficult to attract young graduates for academic studies and research. It is very essential, therefore, to provide young graduates ample opportunities and incentives for higher education leading to M. Tech. and Ph.D. (Engineering) degrees. Without such a pro-active market intervention by the Government; the situation will worsen further. This proactive intervention was indeed a policy zealously followed at Reginal Engineering College, Srinagar with good results. As of now this has slowed down.

Continuing Education:

Heads of technical education in Jammu & Kashmir could together meet and prepare as Action Plan to encourage continuing education of staff to solve the problem for the guidance of all concerned. Every shade of opinion in the professional could be taken into consideration through the medium of professional societies like A.I.C.T.E.; I.S.T.E; and Institution of Engineers (India).

The Jammu and Kashmir State Council for Science and Technology under the Department of Science and Technology, Government of J&K could also take up this matter with the concerned Institutions and arrange a Workshop on the subject. There is no time to delay this matter further and wait for the wake-up call when it will be too late and we can think only about disaster management.

Private Colleges:

Private College managements have a greater responsibility in this regard, because they tend to save on expenses by cutting corners and employ academic staff of poor merit at lower costs. Also they are tempted to cringe on making provision for essential equipment and services. Such attitudes end up with compromising on quality. This also tentamounts to fraud on students.

Autonomous Management:

All higher technical educations should have autonomy of management by a Board of Directors, thoughtfully and legally constituted to direct and manage its affairs and achieve well recognized and expected objectives. With well-trained and qualified staff in place, the institutions should embark to begin post-graduate studies and research programmes. Thereby, we can ensure continued growth of better education, research and development in engineering and technology.

The best solution to meet the need for more qualified and meet the challenge of shortage of good teachers in the many areas of ever widening specialization is to sponsor a large number of young graduates for higher studies. All those who are challenged to correct the grim situation today ought to realize that in the age of information technology the developments in ideas and know-how in science and technology move with electronic speeds. We cannot therefore, keep pace with developments with a mind-set of rules and regulations that belong to the medieval era. Changes are vitally important to hasten growth.

(The author is a former Principal, REC, Srinagar)

Knights and warriors of growth

By Anupam Dasgupta

Worldwide, the Small and Medium Enterprises (SMEs) are being viewed as an engine of equitable economic growth and poverty alleviation. They generate high rates of employment growth and account for a major share of industrial production and total exports. Thus, SMEs constitute one of the most important segments of the economy in a labour abundant country like India. In the present global environment, survival of an enterprise depends largely on how quickly it can adapt to rapid change in the market conditions. The SMEs score over their larger counterparts in this respect. Further, SMEs generally have lower capital costs for important deliverables because of their flexibility and size.

Global Competitiveness

There are, however, several preconditions to enhancing the global competitiveness of the SMEs. These relate mainly to easy access to capital, technology, marketing, infrastructure, critical information and simplified systems and procedures. In the Indian context, the Government has taken several initiatives to help enhance the competitive strengths of the SMEs. These include measures for provision of adequate and timely credit, support for domestic and export marketing, provision of infrastructure facilities, promotion of domestic and foreign investment and technology upgradation. Since the early 1990s, the Government has been pursuing economic reforms in all segments of the economy. The liberalised set-up has posed some significant challenges as well as provided opportunities to the SMEs. The challenges lie mainly in the increased competition and reduced protection while the opportunities include better access to modern technology, availability of a variety of raw materials and components at lower prices, new markets, impetus to improve quality, efficiency and opportunity to restructure and diversify.

Major Initiatives

To help the SMEs in meeting the challenges of globalisation, two major initiatives taken by the Government are setting up of the National Manufacturing Competitiveness Council (NMCC) and the National Commission of Enterprises in the Unorganised Sector (NCEUS). The NMCC has been set up to formulate strategies and design intervention measures for improving manufacturing competitiveness of all enterprises, bulk of which are SMEs. On the other hand, the NCEUS has been established to identify the constraints faced by the unorganised sector, which accounts for a large proportion of the SMEs.

Success Stories

Studies on the SME sector’s export performance conclude that, by and large, the Indian SMEs are globally competitive in products that require materials available locally and high inputs of skilled labour, relatively simpler technologies and flexible entrepreneurship. The more successful Indian SMEs practise total quality management, cost savings through rationalisation and innovations and firmly stick to delivery schedules. Indian SMEs in textiles and garments, home furnishings, leather products, handicrafts, carpets, silk and silk products and natural stones have carved a niche for themselves in the international market. The success of Indian SMEs in the auto components sector in exports is a well documented, on-going story. Gradually, the success of the auto components sector is being replicated in machine tools, chemicals, bulk drugs and even electronics, due to technical progress and increasing R&D activities.

Credit Flow to SME

Access to credit is a critical factor for the growth and development of SMEs. However, adequate and timely credit flow to the SME sector continues to be an area of concern. According to the Third All-India Census for Small Scale Industries (SSI), only 14.3 per cent of the registered units had loan outstanding with banks and financial institutions. The available trends also indicate that the share of SSI credit from scheduled commercial banks has been declining since 1998. Bank credit to SSIs is constrained by demand for higher margin and collaterals and rigid procedures, due partly to the problem of Non-Performing Assets (NPAs) and the "play safe" attitudes of bank officials at branch level. The problems in SSI lending are high transaction costs, high-risk perception, asymmetry of information on business prospects and borrowers’ financial standing. However, the fact is that the share of NPAs in the SSI sector was much lower than that in the non-priority sector in 2004.

In recognition of the fact that delivery of credit continues to be a serious problem for SMEs, the Government has announced a ‘Policy Package for Stepping up Credit to Small and Medium Enterprises (SME)’ on 10th August 2005 with the objective of doubling the credit flow to the sector within a period of five years. Further, the Government has recently launched a ‘Performance and Credit Rating Scheme for SSIs’ through the National Small Industries Corporation Ltd. The Small Industries Development Bank of India (SIDBI) too, in collaboration with major banks, has set up the SME Rating Agency of India Ltd. (SMERA) exclusively for SMEs. The credit rating is expected to enable the SMEs to get bank loans at attractive and competitive rates.

Modernisation

Some other concerns also need to be addressed to help the SMEs in attaining global competitiveness. These relate to issues like technology upgradation, responsive marketing facilities and supporting infrastructure. To facilitate technology upgradation for SMEs, the investment limit (in plant and machinery) is proposed to be raised from Rs.1 crore to Rs.5 crore in respect of 69 items reserved for manufacture in the small-scale sector. Further, the Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation has been amended with effect from 29 September 2005 to, inter alia, raise the eligible ceiling on loans from Rs.40 lakh to Rs.1 crore and the rate of subsidy from 12 per cent to 15 per cent. These steps will further facilitate modernisation of small enterprises through technology upgradation.

Market Development

The Government also implements a Market Development Assistance (MDA) Scheme under which financial assistance is provided for exhibiting SSI products in international exhibitions/fairs, for conducting market studies, contesting anti-dumping cases, etc. In the field of basic infrastructure, the efforts of the State Governments are being supplemented by the Government of India through the Integrated Infrastructure Development (IID) Scheme under which Central grant of Rs.2 crore is provided for each IID project (Rs.4 crore for North Eastern States including Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttaranchal).

Fiscal Incentives

The Government also continues to extend fiscal incentives to the SMEs for providing them a level playing field vis-a-vis their larger counterparts who enjoy significant economies of scale. Under the General Excise Exemption Scheme, SSI units with annual turnover of up to Rs.4 crore are eligible for full excise exemption on their first clearances of Rs.1 crore. Further, small service providers with gross annual turnover less than Rs.4 lakh have been exempted from the purview of service tax.

Self-employment

An eminent economist had called the entrepreneurs "Knights and Warriors" in the market driven growth process. This is even more valid of the present global economic scene. Enterprises like Microsoft and Wal Mart started small and have grown to become global leaders, thanks to the superior entrepreneurial skills of their promoters. SMEs nurture entrepreneurs to become future leaders. The need to motivate such entrepreneurs to take up self-employment is sought to be met through the Entrepreneurship Development Programmes (EDPs) conducted by the national level Entrepreneurship Development Institutes and the Small Industries Service Institutes (SISIs) spread across the country. Modern management practices are also disseminated through Management Development Programmes conducted by these institutes.



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