No.4 (1)/91-SSI-Bd.
GOVERNMENT OF INDIA

OFFICE OF THE DEVELOPMENT COMMISSIONER
(SMALL SCALE INDUSTRIES)
SSI BOARD DIVISION
DEPTT. OF SSI, AGRO & RURAL INDUSTRIES
Nirman Bhavan, (South Wing),
7th Floor, Maulana Azad Road,
New Delhi-110011
Dated, the 2nd April,1992

To,

The Commissioner/Director of Industries,
All States and Union Territories,

Subject: Issue of Registration Certificate to SSI undertakings manufacturing one or more items which are compulsorily licensable under Notification No. S.O. 477(E) dated 25.7.91 but employing less than 50/100 workers (with/without power)

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Sir,

  1. I am to invite reference to this office letter of even number dated 10.3.92 wherein detailed instructions/clarifications have been issued with regard to the exemption available to the SSI undertakings working with employees less than 50/100 (with/without the aid of power) from the provisions of Section 10,11,11-A and 13 of the 1 (D&R) Act, 1951 even if the item of question is under Compulsory Licensing as per notification dated 25.7.1991.

  1. With reference to letter dated 10.3.1992 referred to above, the Director of West Bengal, Cottage & Small Industries has raised the following issue: -

      Small units employing less than 50/100 workers (with/without power) do not require industrial licence, even if, they manufacture an item which is otherwise licensable under Notification No. S.O. 477(E) dated 25.7.1991. Such units will be registered as SSI units by the DIs if investment in plant and machinery is within SSI limits. In the course of time, it is likely that number of workers increase over 50/100, but that Directors of Industries would not be in know of such cases and it may happen that units keep producing without IL even after workers exceed 50/100. The Director of Industries, West Bengal has sought guidance as to how should he proceed in the matter.

  2. This matter has been considered and it has now been decided that DIs while granting registration to a small scale unit should incorporate the following note in the provisional as well as permanent registration certificates, if the unit concerned is manufacturing one or more items that are compulsorily licensable under the Notification dated 25.7.1991.

    3. "Items _____________________- in this certificate are compulsorily licensable as per Government of India, Ministry of Industry's notification No. S.O. 477 (E) dated 25.7.1991. To manufacture these item (s), the unit would be required to obtain an industrial licence (IL) or COB from the Department of Industrial Development, Government of India, if and when the number of workers in the unit exceed 50/100* (manufacturing with/without the aid of power) and it would be the responsibility of the unit not to continue with the production of the aforesaid item without procuring an industrial Licence or COB"

(*delete whichever is not applicable)

Yours faithfully,

Sd/-
(Subodh Kumar)
Joint Development Commissioner (SSI)