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Home >> Government Policies >>Regulations


SIMPLIFIED RULES AND REGULATIONS

In the wake of current economic reforms, Government has simplified many rules and regulations and conditions on filing returns, maintenance of registers and has also restricted the visits of Inspectors. These simplifications cover the following areas:-


REGISTRATION PROCEDURE

Registration procedure has been streamlined and registration forms simplified. The main features incorporated in the simplified registration forms are given below:-

  • Separate forms have been prescribed for provisional and permanent registration.

  • a) Provisional Registration : - It is envisaged that the application forms for provisional registration will be filled in duplicate. One copy, duly endorsed, will be given to the applicant. The other copy will be retained by the District Industries Centre/Registedng Authority for record.

    • b) Permanent Registratio :- The form for permanent registration is to be filled in triplicate. One copy, duly endorsed, will be given to applicant. The second copy will be retained by the DIC/Registering Authority for record and the third copy will be forwarded to the Director of Industries to facilitate consolidated record maintenance in a computerised environment

  • Both forms have been designed to allow for computerisation and generation of reports thereof. The codes are to be filled in by the offices of the Registering Authorities.

  • The filled in application form, duly endorsed, in case of both provisional and permanent registrabon is a part of the Registrabon Certificate. This has been clearly stated in the conditions mentioned in the application form. Unit-3 are therefore advised to retain the whole form alongwith the certification to constitute the Registration Certificate.

  • The status of the unit in terms of various categories is to be stipulated in the spaces provided. In case of tiny enterprises, validation of the unit as a tiny enterprise will have to be done at the end of every 5 years as per existing procedure. In case of other categories including ancillary industrial undertakings, the certificate is issued in perpetuity.

  • It has been decided that the Registedng Authority will carry out annual visits of all small scale units within their jurisdiction with investment in plant and machinery of more than Rs. 40 lakhs on cent per cent basis. This annual survey will be ensured by the registering authority. After the visit, the registering authority would advise the unit to obtain, if required, endorsement in respect of changes in plant and machinery or changes in location or constitution of the unit. If during such annual visit, it is found that a particular unit has crossed the prescribed investment limit, the registering authority will take immediate action to de- register the unit and advise it to obtain industrial license in case they are manufacturing reserved items or to file an Industrial Entrepreneurs' Memorandum (IEM) with the Secretariat of Industrial Approvals, Ministry of Industry, Government of India, Udyog Bhawan, New Delhi-110011, in case they are manufacturing non-reserved items.

  • No affidavft is envisaged to be submitted by the unit while applying for provisional registrabon. However, in case of application for permanent registration, applicant will enclose an affidavit as per the format enclosed alongwith the application form.

  • It hast>een clarified in the form that the certificate of registration is valid for the items of manufacturelactivity indicated in the form as well as for any other iterrvactivity that may be undertaken by the unit in addition.

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LABOUR LAWS

The small units manufacturing items reserved for manufacture in small scale sector do not require any prior licence. This is a major relaxation where no licensing or restriction in productin in small scale sector exists. The locational restrictions have also been minimised. SirT@larly, Labour Act has been simplified in 1988 to assist the small establishements. The Act, namely "Labour Laws (exemption from furnishing returns and maintaining registers by certain establishments) Act, 1988" covers labour related acts and thus provides:-

  • EstablishmentemployinglO-19personsrequiretomaintainonly 3 registers and to submit an annual core return only.


  • Establishment employing less than I 0 persons to maintain only 1 register and submit only an annual core return.


  • Only one Inspector will be responsible for various labour laws, except in case of Factory Act and Boiler Act.


The Labour Ministry has also accepted in principle to transform the enforcement of labour laws for SSis from a regime of regulation to an era of self-discipline and voluntary compliance.


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THE INTEREST ON DELAYED PAYMENT ACT

The "Interest on Delayed Payment Acf'was enacted in 1993. In order to tackle the problem of settlement of dues from companies, the Act has been amended so that SSI units are not handicapped by delays in the settlement, of their dues from larger companies. The amended Act has come into force from 1 Oth August, 1998. The amended Act provides for:

  • Change in the penal rate of interest from the present 5 percentage points above the floor rate which was applied hitherto, to 150% of the Prime Lending Rate (PLR) of SBI;


  • The agreed date of setement of dues (i.e., any contract between the SSI supplier and the large scale buyer) not to exceed 120 days from the date of acceptance of goods by the large companies;


  • An additionallalternative mechanism of arbitration and conciliation to resolve disputes between the SSI supplier and the large scale buyer within the framework of the Arbitration and Conciliation Act, 1996 (No. 26 of 1996) by allowing State Governments to create Industry Facilitation Councils with the Director of Industries of the concerned State Government as Chairman and representatives of Banking/Financial I nstftutions, industry associations and persons with knowledge of industry and/or law as its members to deal with issues/disputes which arise due to non-payment/delayed payment of the dues of SSI units/suppliers by large company customers/buyers.

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ENVIRONMENTAL LAWS

Simplification of consent procedure for small scale industries

The Ministry of Environment & Forests have simplified the consent procedure in respect of small sr-ale industrial units for obtaining consent underthe Air (Prevention and Control of Pollution) Act, 1981 and the Water (Prevention and Control of Pollution) Act, 1974. To this effect, the Ministry have issued directions to the Central Pollution Control Board on 12th September 1992 and 10th May 1993 Linder Clause (a) of Sub-Section I of Section 18 of the Water (PreventionandControlt)f Pollution)Act, 1974, statingthatforthe units of small scale sector except 17 categories which are heavily polluting, the acknowledgement of the application by the Board would serve the purpose of the consent and that the consent granted shall be valid till 15 years ortill such time the industry modifies or changes its process or any treatment and disposal system or brings into use any new or altered outlet for discharge of effluent/sewage or begins to make any new discharge of effluent/sewage whichever is earlier. However, the concerned State Pollution Control Boards/Committees specified by the Central Government (for UTs) may conduct random checks or call for information from any unit and make a formal consent order prescribing conditions etc. as required.