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

  1. The Secretary (Industries)
    Govt. of Tamil Nadu,
    Madras.


  2. 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,

  1. 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.

  1. 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.

  2. 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.

  3. 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)