The Federation of Delhi Small Industries Association (Fedsia) has urged the Union Government to continue with the policies of reservation and other concessional facilities extended to small scale enterprises. He was speaking at the 11the anniversary-cum-AGM of Fedsia.

Insisting that the Indian small scale sector was not yet ready to face competition, local or global, given the dominance of big companies, president of the Fedsia M R Gupta said the government should carry on with concessional finance as well as favourable fiscal policy. "It is not only economics which determines the dynamics of the small scale business. The small sector has been carrying on a social responsibility of creating job avenues and generation of wealth in the backward areas," he added.

Gupta said the talk of `dereservation' in some circles had upset entrepreneurs in the sector. "There is no doubt that most of us agree that in this age of globalisation and liberalisation, thereis no place for trade boundaries and barriers. But, given the fragile nature of the small business in India, the sector will not be able to withstand stiff competition," he said.

Even though Gupta agreed that changes in the small sector ware necessary to keep pace with the growth of world trade, he did not elaborate what type of changes were required.

Talking about micro-level problems being faced by the small enterprises, particularly in Delhi, Gupta demanded the abolition of the lease-hold system for industrial properties in Delhi. "The government rightly abolished the lease-hold system in the case of residential properties, but no such facility has been extended to the industrial plots. This step-motherly treatment and needs to be done away with to enable small entrepreneurs to grow," Gupta stressed.