THE SMALL SCALE INDUSTRIAL UDERTAKING
An industrial undertaking in which the investment in plant and machinery,whether held on ownership terms or on lease/hire-purchase basis, does not exceed Rs.10million (Rs.1 crore) is regarded as a small scale undertaking. These includemanufacturing and service units.
Status of Small Scale Industries Undertaking
a)Ancillary Industries Udertaking :- Engaged in manufacture of parts, componentSub-assemblies, The investment in fixed assets doesn’t exceed 1 crore. b)Tiny Industries :- All small scale units, which investment on plant & machinery(excluding land & building) upto Rs.25 Lakhs.c) Export Oriented Units :- All small scale units, which export more than 50% of Their output.
A unit is treated as a tiny enterprises where investment in plant nad machinerydoes not exceed Rs.2.5 million (Rs.25 Lakhs) irrespective of the location of the unit.Many shops,
Export Oriented Unit [Eou]
A unit with an obligation to export at least 30 percent of its annual production bythe end of the third year of commencement of production and having an investmentceiling up to Rs.10 million (Rs.1 crore) in plant and machinery is termed as an exportoriented SSI unit.In India no separate definition of medium enterprises exists and as such there is nospecific definition of Small and Medium Enterprises [SMEs.] Administratively, in theIndian context ,the industry universe is divided into three major segments.
Modern Small Scale Industries
These cover SSI units [both in the factory and Non /Factory sectors] and power loom units. Such units mostly use power driven machinery and possess superior production techniques. Units in this sub-sector are generally located in close proximity tolarge industrial centers or urban areas. These industries are moving away from thetraditional products to knowledge-based products.
Traditional Small Scale Industries
This sector Comprises tiny and cottage industry segments like handlooms, Khadi andVillage Industries, handicrafts, sericulture and silk, rubber and coir. These units arelabour- intensive, are generally located in rural and semi-urban areas and are artisan based. Usually the capital invested is also nominal.3