No. 4(1)/91-SSI-Bd.
GOVERNMENT OF INDIA
MINISTRY OF INDUSTRY
DEPTT. OF SMALL SCALE INDUSTRIES AND ARI
OFFICE OF THE DEVELOPMENT COMMISSIONER (SSI)
Nirman Bhavan, New Delhi,
Dated, the 24th Jan., 1994
To
- The Secretary (Industries)
Govt. of Tamil Nadu,
Madras.
- The Director and Commissioner of Industries
Govt. of Tamil Nadu,
Madras.
Subject : - Exclusion
of cost of wind electric generators from the total cost of plant and machinery
for calculation of value of plant and machinery to determine the Small
Scale status to a unit.
Sir,
- The investment limit
defining Small Scale Industries or ancillary industrial undertakings have
been set out in terms of the value of the plant and machinery calculated
at original value. In calculating the value of plant and machinery certain
items of plant and machinery have been excluded. Their list is contained
in Note-2 part (b) of the Notification No. S.O. 2 (E) dated 1st January,
1993. As per note-2 (b) (iv) of the notification, the cost of generation
sets, extra transformers etc. installed by the undertaking as per the regulations
of the State Electricity Board are excluded while calculating value of
plant & machinery.
Representations
have been received from the Government of Tamil Nadu, the Tamil Nadu Energy
Development Agency, Industry Associations and some other agencies to exempt
the cost of wind electric generators in calculating value of plant &
machinery to determine the SSI unit. In Tamil Nadu, industrial units including
Small Scale Units have been encouraged to install wind turbine generator
sets to produce electricity using wind power. This is to augment the poser
supply and encourage use of clean technologies. It has been reported that
nearly 17 MV of capacity has been installed using wind electricity generators
in Tamil Nadu.
In general, the
process of installation and use of alternative energy sources needs to
be encouraged on account of power shortage and considering its positive
effects on the environment. Therefore, the Small Scale Units also need
to be encouraged to invest in resources or equipments that utilize non-conventional
sources of energy to generate power for their use.
Keeping in mind
the above considerations and related factors, it is clarified that as per
entry at Note-2 (b) (iv), the value of those items of plant and machinery
will be excluded while computing the investment limits for Small Scale
Industries, which have been installed purely for purpose of generation
of power using non-conventional sources of energy such as wind, solar energy,
ocean waves, bio-gas etc. This may kindly be brought to the notice of all
concerned, registering agencies and related departments or offices.
Yours faithfully,
Sd/-
(Raju Sharma)
Director (SSI Bd.& Policy)

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