Ancillary industries development is an outstanding facet of small scale industries development in India. Mutual dependence of small scale industries strengthens the industrial structure of the country, besides procurement of parts and components most economically from the small scale units. The countrys resources are best utilized by a balanced distribution of capital investment in large and small scale industries. Decentralized production pattern has inherent advantages; it generates more job opportunities per rupee of investment.

Sub-contracting Exchange is a novel concept announced under the liberalized policy package in 1991. The Exchange is an information centre where machine capacities of small scale industries are registered and enquiries from large industries for the manufacture of different components and sub-assemblies are passed on to the appropriate registered small scale units.

Identifying suitable vendors/sub-contractors by vendees for outsourcing is not an easy task. It may be difficult time consuming and sometime frustrating too. The same is equally applicable for vendors/sub-contractors to locate a suitable vendee, which can provide them long term linkages. Another effort lies in promoting Sub-contracting Exchanges or Sub-contracting Partnership Exchanges. Such an Exchange is a Store House of Data with regard to the capacities of the small scale units in term of products manufactured services rendered on one hand while maintaining data with regard to the requirement of the buyers, which could be products /components/ sub-assemblies/services on the other hand. The Exchange also stores data about the specifications and quantities etc. of the various facilities available with the sellers/required by the buyers in the above cases. The main objective of storing such a data is to arrange match-making through an appropriate software between a buyer and a seller that may result in increased business opportunities.

The Exchange is, therefore, in a position to a great extent to provide sufficient information to vendees to have access to the details of facilities available with the Sub-Contractors who could meet their requirements. On the other hand it also helps to provide information to Sub-contractors/Vendors about the Vendees who are looking for outsourcing.

Orissa Sub-Contracting Exchange operating in Small Industries Service Institute, Cuttack is now working in a computerized environment. We have made all efforts to collect the sub-contracting data of mother plants situated in the State and disseminating the relevant information about the outsourcing items to appropriate SSIs.

As per direction of Development Commissioner, Small Scale Industries, Ministry of SSIs, Govt. of India, a nominal one time registration fee of Rs.100/- is levied from SSIs to register the unit with the exchange mentioning details as per the format. The registration form is available at SISI, Cuttack as well as at Branch SISI, Rourkela and Rayagada. Filled in registration form should be submitted at SISI, Cuttack by enclosing Rs.100/- in cash or in the form of Demand Draft payable to Director, SISI, Cuttack.

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