No. 5(1)/93-SSI Bd.
GOVERNMENT OF INDIA

MINISTRY OF INDUSTRY
DEPARTMENT OF SMALL SCALE INDUSTRIES & AGRO & RURAL INDUSTRIES
OFFICE OF THE DEVELOPMENT COMMISSIONER
(SMALL SCALE INDUSTRIES)
Nirman Bhavan, New Delhi
Dated 16th Sept.,1993

To,

  1. Secretary (Industries) () All States

  2. Commissioner/Director of Industries ()

    3. Subject: - Procedure for granting provisional registration certificate and its validity.

    Earlier i) No. 5(1)/90-SSI Bd. Dated 14.1.1991
    References ii) No.5 (1)/87-SSI Bd. Dated 16.5.1988
    iii) No. 5 (1)/86-SSI Bd. Dated 7.3.1986

    Sir,

    1. Government has taken a series of steps to simplify the procedures for registration of small scale/ancillary/tiny/SSSBE units. The matter of simplification relates to rationalisation of procedures as well as de-centralisation of powers under the scheme.

    1. The procedure for granting provisional registration certificate was simplified in terms of the Circular of this Office No. 5 (1)/92-SSI Bd. dated 20th July, 1992.

    2. The issue of the validity and renewal of the provisional registration certificate (PRC) came up for discussion during the State Industry Ministers' Conference held on 7th June, 1993. In accordance with the recommendations of the above stated Conference, it has now been decided as follows: -

      1. The Provisional Registration Certificate (PRC) will be valid for a fixed period of 5 years from the date of issue of PRC. In other words, the PRC will automatically lapse at the end of 5 years from the date of issue of the certificate or the date of commencement of production by the unit, whichever is earlier. It may be noted that the PRC is valid only for the pre-operative period of the unit. That is, as soon as the unit commences commercial production the provisional registration certificate loses sits validity.

      2. Hence the Registration authority i.e. the General Manager, District Industries Centre will grant the PRC for a fixed period of 5 years. There will, therefore, be no need for the extension of the PRC by the DIC or by the Directorate of Industries at the Regional/State level or the Office of the Development Commissioner (SSI).

      3. Since the PRC will be for a fixed period of 5 years, there will be no question of its extension beyond the fixed period of 5 years. An applicant who is unable to set up the unit within the allowed period of 5 years will have the option of applying afresh to obtain a new PRC using standard procedures.

    3. The above procedure will apply to new as well as existing PRC's. Therefore, all consideration of applications of extensions of PRC's pending with the Regional/State Directorate of Industries (beyond 3 years) with the Office of Development Commissioner (SSI) (beyond 4 years) and with the District Industries Centre (beyond 2 years) lapse automatically. Such pending applications will be treated as closed with immediate effect.

    4. Registering Authority DIC will suo-moto take action in case of all existing PRC's and will extend their validity to 5 years from the date of issue of PRC. In case of "live" PRC's whose period has extended beyond 5 years, they on expiry of extended period will be treated as having lapsed and such units will be advised to apply afresh.

    5. The earlier circulars issued in this regard stand modified accordingly. This may please be brought to the notice of all DIC/Registering Authorities in your State. Sufficient publicity may also be accorded to this revised procedure.

    Yours faithfully,

    Sd/-
    (Raju Sharma)
    Director (SSI Bd.)