MINISTRY OF INDUSTRY
(DEPARTMENT OF INDUSTRIAL DEVELOPMENT)

NOTIFICATION

NEW DELHI,THE 2nd APRIL, 1991

    S.O. 232 (E) - Whereas the Central Government considers it necessary with a view to ascertain which ancillary and small scale industrial undertakings need supportive measures, excemption or other favourable treatment under the Industries (Development and Regulation) Act, 1951 (65 of 1951), (hereinafter reffered to as the said Act) to enable them to maintain their viability and strength so as to be effective in: -

    1. promoting in a harmonious manner the industrial economy of the country and easing the problem of unemployment, and
    2. securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good.

    And whereas the draft notification was laid before each House of Parliament for a period of 30 days as required under sub-section (3) of section 11B of the said Act.

    And whereas no modification in the proposed notification has been suggested by both Housese of Parliament.

    Now, therefore, in exercise of the posers conferred by sub-section (I) of section 11B and sub-section (I) of Section 29B of the said Act, and notwithstanding anything contained in any earlier notification issued by the department, the Central Government hereby specifies having regard to the factors mentioned in sub-section (2) of the said section 11B, the requirements mentioned in the Table below, which sall be complied with by the industrial undertakings to enable them to be regarded, as an ancillary, or a small scale industrial undertaking for the purpose of the said Act.

    Tabular matter available on request

    1. Requirements to be complied with by an industrial undertaking for being regarded as small scale industrial undertaking -
      1. An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on oownership terms or on lease or by hire purchase does not exceed rupees sixty lakhs.
      2. In case of an industrial undertaking refferred to in (a) above the limit of investment in fixed assets in plant and machinery shall be rupees seventy five lakhs provided the unit undertakes to export atleast 30 percent of the annual production by the end of 3rd year from the date of its commencing production.
    2. Requiremenst to be complied with by an industrial undertaking for being regarding as ancillary industrial undertaking-

      3. In 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 the undertaking supplies or renders or proposes to supply or render not less than 50 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 seventy five lakhs.

  1. Every industrial undertaking which has been issued a certificate of registration by the Department of Industrial Development or Director General of Technical Development under the said Act and now falls within the above definition of ancillary or small scale industrial undertaking, may be registered, at the discretion of the owner, as such, within six months from the date of issue of this notification.

This notification shall come into force on the date of its publication in the Official Gazette.

'Note: - No small scale or ancillary industrial undertaking referred to above shall be subsidiary of or owned or controlled by any other industrial undertaking'.

[File No. 10/71/90-LP]
(N.R. KRISHNAN)
Addl. Secretary Circular