The taskforce on finance will be headed by a senior banker. It will submit a report within three months.

"Term loans from financial institutions are less difficult to get than working capital from banks," says Khanna. He blames stringent NPA norms as well as the RBI guidelines of being harsh. He called for having a framework within which viable projects are granted funds. "During the days of recession, the banks are acting more like that under Z-category security for the VIPs." Khanna observes that while the Indian Bank Association has become more receptive problems faced by SMEs, it is time for individual banks to follow suit.

The taskforce on administrative reforms will work with nine stategovernments, including Punjab, Haryana and Uttar Pradesh, for working out a formula to reduce bottlenecks in administration. Khanna suggests having a time frame within which if a project is not approved, it is deemed to have got a clearance.

The PHDCCI president is all for a separate policy for tiny and cottage sector. "The problems of SMEs are different. They are more vocal. To be fair to the tiny and cottage units, there should be a separate policy for them."

He feels that though the Abid Hussain Committee report is a good one, employment and turnover instead of investment should be the criterion for identifying small enterprises. This will put to rest the debate on the appropriate investment ceiling for SSI sector that created confusion in the minds of entrepreneurs in the last one year, he adds. The United Front government had raised the capital investment ceiling for SSI sector from Rs 60 lakh to Rs 3 crore in 1997. The present government is in the process of revising it to Rs 1 crore.

Khanna saysthat a total reservation or dereservation will not be in the interest of the small sector. "There is no rationale behind the government policy on reservation. A middle path has to be adopted in this matter. There should be phased and sector-wise dereservation especially in those areas which need technical upgradation."

On the issue of big-small relationship, Khanna feels that coporates need to adopt a benevolent attitude while small companies should deliver quality product. "The big companies should realise that only small companies can help give them cost advantage in the export market."

Khanna favours dedicated production on the lines of Japan as one of the ways for establishing successful big-small linkage. "PHDCCI, on its part, already has a SSI committee which arranges meetings between the two sides."

On the export front, Khanna says that small and medium enterprises cannot go alone.

"They have to either go through trading houses or have foreign collaboration particularly for the first fewyears." The concept of trading houses should be encouraged like in Japan, he adds.

One of the ways which can help the small sector in marketing is through internet, he points out. Further, the SME sector will play a major role in the service sector, he adds.

The chamber has also been helping small exporters find foreign buyers by organising meetings among them, he says. "We'll hold more such buyer-seller meet in future."