Full form dgtd registration

[Enclosure to D.O. letter No. 4/91-SSI Bd. Dated 7.5.91 from addl. Secretary & Development Commissioner (Small Scale Industries) to Secretary (Industries) of States/Uts regarding enhancement of investment limits in the small scale/ancillary industrial undertakings]

Subject : - Enhancement of investment limits in the Small Scale and Ancillary Industrial Undertakings.

The Government has issued a Press Note on 19th March, 1985, raising the investment limits in small scale industrial undertakings from Rs. 20 lakhs to Rs. 35 lakhs and for ancillary industrial undertakings from Rs. 25 lakhs to Rs. 45 lakhs in plant and machinery. Keeping in view the escalation in the cost of plant and machinery since then, Government has been considering the question of upward revision of these investment limits. Accordingly, Government has placed a statement in (both housese) Parliament on 31st May, 1990 outlining certain policy measures to be adopted including enhancement of investment ceiling of small scale/ ancillary industrial undertaking. In pursuance of this, a draft notification for changing the definition (enhancing the limits) of small scale/ancillary industrial undertakings was placed before the parliament on 7th August, 1990, as per the provisions of Section 11B (3) of the Industries (Development & Regulation) Act, 1951. Parliament did not disapprove or modify the draft notification in any way within thw period stipulated in Section 11B (3) of I (D&R) Act, 1951. Accordingly, Gazette Notification No. S.O. 232 (E) dated 2nd April, 1991 has been issued (copy enclosed) under sub-section (1) od Section 11B and sub-section (1) of Section 29B of the Industries (Development & Regulation) Act, 1951 enhancing investment limits in fixed assets in plant and machinery, whether held on ownership term or by lease or by hire purchase, for small scale and ancillary industrial undertakings as per details below: -

Tabular matter available on request

Besides the criterion of investment ceiling an ancillary industrial undertaking is one which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates or the rendering of services, and the undertaking supplies or renders or proposes to supply or render not less than 50 percent of the production or services, as the case may be, to one or more industrial undertakings.

An undertaking within the investment limits in plant and machinery under different categories and other requirements mentioned above would now be exempt from the licensing provisions of the Industries (Development and Regulation) Act, 1951. The various conditions and stipulations regarding industrial licensing mentioned in notification No. S.O. 629 E dated 30th June, 1988 would, however continue to operate except for investment ceiling for SSI which have now been revised. This will, be subject to the condition that such an undertaking shall not be a subsidiary of or owned controlled by any other undertaking.

In calculating the value of plant and machinery, the original price paid by the owner, irrespective of whether the plant and machinery are new or second hand, will be taken into account.
The cost of equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores will be excluded in computing the value of plant and machinery. Similarly, the cost of installation of plant and machinery will also be excluded.
The cost of R&D equpiment and pollution control equipment will be excluded in computing the value of plant and machinery.
In the case of imported machinery, import duty will be included, but not the miscellaneous expanses like transprtation from the port to the siteof the factory, demurrage if any paid at the port and premium if any paid for import entilement or import of machinery. However, shipping charges, customs clearence charges and sales tax should be included in computing the cost of plant and cahinery.
The cost of generation sets, if any, installed will be excluded. Similarly, the cost of extra transformer, etc which have to be installed by a unit as per the regulations of State Electricity Board would also be excluded.
The bank charges and services charges paid to the National Small industries Corporation or to the State Small Industries Corporation will be excluded in computing the cost of plant and machinery.
The cost involved in procurement/installation of cables wiring bus-bars, electrical control panels (not those mounted on individual machines), OCBs/MCBs etc., ehich are necessarily to be used for imparting electrical power to the plant & machinery / safety measures is not to be taken into account for computing the cost of plant and machinery for determining the status of an industrial undertaking.
Cost of gas producer plant will be excluded.

1 Amendment issued vide circular No. 4/91 - SSI Bd. & Policy, dated 10.9.1993

It is clarified that any unit in the small scale in possession of a COB licence or formerly registered with the DGTD can, at ant time, apply for registration as a small scale industrial undertaking. Such unit should be registered as such, provided they satisfy the definition criteria, irrespective of the fact that they may have applied after the period of six months from the date of notification No. S.O. 232 (E) dated 2.4.1991. would be taken on their COB applications. They will continue to be treated as small scale / ancillary undertakings.

Sd/- (C. K. Modi) Addl. Secretary & Development Commissioner (SSI)