No. 2(3)/91-SSI Bd.

GOVERNMENT OF INDIA
MINISTRY OF INDUSTRY

(DEPARTMENT OF SMALL SCALE INDUSTRIES & AGRO RURAL INDUSTRIES)
OFFICE OF THE DEVELOPMENT COMMISSIONER (SSI)
7th Floor, Nirman Bhavan,
New Delhi the 30th Sept., 1991

To

Secretary (Industries)/Commissioner/Director of Industries
All States &Union Territories

Subject: - Small, Tiny & Industry related Service/Business Enterprises.

Sir,

  1. Kindly refer to last para of this office letter of even No. dated 16th August, 1991 in which it was stated that registration of SSSBE's may await receipt of instructions and that an illustrative list of SSSBE'S will follow.

  1. Prior to the issue of this letter, guidelines were issued by the Department of Industrial Development vide their letter No. SSI(I)-12(14)/82 dated 18th May, 1982 to register all service oriented enterprises as Small Scale Service Establishment (SSSBE) in which some minimum investment in fixed assets in plant and machinery upto Rs. 2 lakhs was involved and the same were located in rural areas and towns with a population upto 5 lakhs.

  2. At different points of time, certain clarifications were issued by this office whether an activity was registrable as SSI, SSSE or none of these. The entire list needs to be reviewed as some of these items/activities do not really qualify as industrial activities to be covered under MSME-DO, while some others are also not manufacturing activities but only service activities. In the later category, not all service activities will qualify as industry related service activities. As per the new policy on small scale industries not all small service establishments will henceforth be eligible for benefits/concessions available to units in Small Scale Sector. Only such of these small enterprises - whether service or business - which are industry related (now named as SSSBE's) will be eligible for benefits/concessions admissible to small scale sector. It has, therefore, been decided to re-classify various activities into Small Scale Industry (SSI) and Small Scale (Industry related) Service Business Enterprise (SSSBE).

    1. It will cover all manufacturing activities of one or more item(s) included in
      1. Schedule I of Industries (Development & Regulation) Act, 1951 (65 of 1951)
      2. The list of items exclusively reserved for manufacture in the small scale sector.
      3. Any manufacturing activity which is not covered in (a) or (b)
                                                        E X C E P T
        The activities which fall within the purview of any Statutory Board of Committee or Special Agency viz., KVIC, Silk Board, Handicrafts Board, Textile Commissioner, Handloom Board, Coir Board etc.

    2. The following activities had been recognised as SSI, falling within purview of MSME-DO through clarifications issued by this office from time to time.
      1. Biochemical/Biological testing laboratories.
      2. Hatcheries
      3. Tissue culture.*
      4. Beedi making/tobacco processing *
      5. Colour Film processing studios
      6. Laboratories engaged in testing of raw materials and finished products.
      7. Software servicing & data processing. *
      8. Documentary film production units.
      9. 'Servicing Industry' undertaking engaged in maintenance, repair, testing or servicing of all types of vehicles and machinery of any description, including electronic/electrical equipment/instruments i.e. measuring/control instruments, televisions, tape recorders, VCRs, radio, trans-formers, motors etc.
      10. Printing press *

  3. It has now been decided that none of the activities above will be recognised as SSI. The activities (vi) to (x) will, however, be registrable as SSSBE's (see para VI below). The remaining activities i.e. (I) to (v) above will not be recognised even in SSSBE'S.

  4. TINY ENTERPRISE
    Guidelines issued vide above referred letter dated 16.8.1991 are self-explanatory and the same be followed.

  5. SMALL SCALE SERVICE & BUSINESS (INDUSTRY RELATED) ENTERPRISES (SSSBE'S).
    The following guidelines shall be followed for the registration of SSSBE's.

    1. As a follow up, action to policy measures for promoting & strengthening small, tiny & village enterprises, announced on 6th August, 1991, Government have decided to give benefits of small scale sector to all Industry related Service & Business Enterprises with investment upto RS. 5 lakhs in fixed assets, excluding land and building. For computation value of fixed assets in the original price paid by the original owner will be considered irrespective of the price paid by subsequent owners.
    2. Instructions issued vide Ministry's circular letter No. SSI (I)-12(14)/82 dated 18th May, 1982 giving benefits to all Small Scale Establishments (SSSBEs) having fixed investment in plant & machinery upto Rs. 2 lakhs etc. STAND SUPERSEDED. Now onwards, only industry related Small Scale Service/Business Enterprises (SSSBEs) upto Rs. 5 lakhs, as in (I) above will be eligible for benefits and concession's available to industries in Small Scale Sector.
    3. An illustrative list of SSSBE's and the illustrative list of activities that will not qualify as SSSBE (i.e. Small Scale Service & Business (Industry related enterprises) is given at Annexure-I and Annexure-II respectively.
    4. Activities like hatchery, poultry farm, hair cutting saloons, beauty parlours etc. which were earlier declared as SSSBE activity will no longer be registrable as SSI or SSSBE.
    5. The activities like Hotels (including unstarred hotels, tea cafeteria & restaurants), small service medical establishments, small rural medical service establishment, broiler scheme, decorator (both pandal & lighting), naturopathic institutions, nature cure hospitals, dental clinics, slate quarries (mining process), piggery, fishery, cattle rearing, rabbit farming, butchery, meat selling, slimming centres, diary (if only selling milk), hot mix plant were referred to this office in the past to ascertain whether these qualify to be registered as SSSBE's. it is now clarified that none of these activities is registrable as SSSBE, as the same are not recognised as industry related service/business activities. VII. The units which have been registered as SSI or SSE prior to issue of these instructions, as per instructions prevailing then, and which are not so registrable now, shall continue to get assistance as per existing registration. These cases need not be re-opened for de-registration. Existing units, registered as SSSE, will get benefits of Small Scale until their investment exceeds RS. 5 lakhs.

Yours faithfully,

Sd/-
(Subodh Kumar)
Director (SSI Bd.)

* These activities have been recognised as SSI.
** Has now been recognised as SSSBE.