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Definition
of Type of Industrial Unit |
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- The
definition used by the Indian authorities is based on the level of investment
in plant, machinery or other fixed assets whether held on an ownership, lease
or hire purchase basis. It seeks to keep in view the socio economic
environment in
India
, where capital is scarce and labor is abundant.
-
- However,
a definition exist only for tiny and small units, medium sized enterprises
are not defined either technically or legally.
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- Small
Scale Industrial Undertaking
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- Industrial
undertaking in which the investment in fixed assets in plant and machinery,
excluding land and building, whether held on ownership terms or on lease or
on hire purchase, does not exceed Rs. 1 Crore (One crore).
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- Status
of Small Scale Industrial Undertaking
-
- a.
Ancillary industrial undertaking :
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- An
industrial undertaking which is engaged or is proposed to be engaged in the
manufacture or production of parts, components, sub-assemblies, tooling or
intermediates, or the rendering of services and undertaking supplies or
proposes to supply or renders not more than fifty percent of its production
or services, as the case may be, to one or more other industrial
undertakings and whose investment in fixed assets in plant and machinery,
whether held on ownership terms or on lease or on hire purchase, does not
exceed rupees one crore.
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- b.
Tiny industries :
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- All
Small Scale units wherein investment on plant and machinery(excluding land
and building ) upto Rs. 25 lakhs are classified as tiny industries.
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- c.
Export oriented units:
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- All
small scale units which exports more than 50% of their output is classified
as Export Oriented Units.
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- 2.
Definition of Small Scale Service Business Enterprises (SSSBE)
- Industrial
related service/business enterprises with investment on plant and machinery
upto Rs. 10 lakhs excluding land and building is registered under
SSSBE.
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- 3.
Specified activities eligible for SSI Registration up to
Rs. 5 Crores
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- There
are certain types of industries/activities wherein investment on plant and
machinery upto Rs. 5 crores can also be registered under SSI category and
such list of industries are available in Info-help.
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