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General Initiatives Following :

  • Investment limit for SSI units raised to Rs. 100 lakhs.

  • To protect the interest of micro and tiny SSI units, 40% of the credit going to SSI sector has been reserved for units having investment in plant and machinery upto Rs. 5 lakhs and 20% for units with investment between Rs. 5 lakhs and Rs. 25 lakhs.

  • To coverage under the Technology Development & Modernisation Scheme of SIDBI has been enlarged to extend assistance to non-exporting units also for technology upgradation and modernisation. The interest rate of loans provided under the Scheme will be based on prime lending rate (PLR) of SIDBI from IDBI and IDBI shareholding in State Financial Corporations will be transferred to SIDBI.

  • factory recommendation in industrial estates,

  • Restricted list in small scale sector has been disbanded

  • Procedure for registration of electronic items delicenced to,

  • Locational restrictions for defining tiny sector removed.

  • Definition of industry related service and business enterprises streamlined and made uniform.

  • Registration procedure simplified. New Registration Forms introduced from January, 1994.

  • Clarified that units employing less than 50/100 workers with/without power and the items exclusively reserved for manufacture in the small scale sector do not require to obtain industrial licence even if the item of production is included in Schedule-II to the Licensing Exemption Notification of July, 1991.

  • Clarification regarding Registration as Hindu Undivided Family "The mode of ownership does not impose any bar on small scale unit registration as long as it falls within the existing notified investment limit and the unit is not subsidiary of, or owned or controlled by any other industrial undertaking in terms GOI Notification No. S.O. 857(E) dated 10th December, 1997, as amended vide S.O. 1288 (E) dated 2nd December, 1999. Thus, a unit owned by an HUF is registrable as an SSI, provided it is otherwise eligible."