REGISTERED SSI SECTOR - REVIEW OF THE RESULTS

2.1

There are two phases in the registration process of Small Scale Industrial (SSI) units carried out by the State/ UT Directorates of Industries (SDI) viz. temporary and permanent. In the Third Census of SSIs, the units, which were permanently registered with the SDIs till 31st March 2001, were covered on a complete enumeration basis. The frame of registered SSI units contained SSIs, ancillary units and SSSBEs, which were under the purview of Small Industry Development Organisation (SIDO). It did not include those coming under the purview of KVIC, Silk Board, Handicrafts Board, and Textile Commissioner etc. The lists of permanently registered SSI units were made available to the enumerators by the respective SDIs. The lists furnished to the enumerators contained information on Identification no., name and address of the unit, registration no. and the details of the product manufactured, with respect to each registered unit, duly validated with the help of NIC Cell in the O/o DC (SSI) and this helped them to properly identify and approach the units for data collection. The detailed information was collected in the prescribed format, viz., FORMAT-1 by personal interview method.

COVERAGE

2.2

In the third Census, the units permanently registered up to 31.3.2001 were covered on complete enumeration basis. A total of 22, 62,401 units were surveyed. Out of these, 13, 74,974 units were found to be working and the remaining 8, 87,427 units were found closed. Thus, the number of working units works out to be 60.77 % and those of closed 39.23 %.

2.3

The State-wise percentage distribution of working and closed units for rural and urban sectors is given in table R1 at the Appendix. Out of the 13,74,974 working units, 13,48,451 units were actually surveyed by the enumerators. The total number of working units for which no data could be collected was 26,523. In order to include the estimate of non-response, i.e., in respect of the working units not surveyed, in the final estimates, a multiplier was applied at district level. In the data file of working units surveyed, a multiplier of (p + q)/ p was applied, where p is the number of working units surveyed in the district and q is the number of working units not surveyed in the district. The multiplier, so calculated is appended at unit level in the data file of working units surveyed. In other words, total of any characteristic or variable in the Census (registered) sector was estimated as

Total of the characteristic or variable
among the working units surveyed X (p + q) / p

2.4

At the record level, it was found that in many records important information such as market value of fixed assets, original value of plant & machinery, gross output and exports were either not reported or underreported. In order to partially mitigate the extent of underestimation, market value of fixed assets and gross output being applicable to all types of units were estimated for the missing records using the average for the non-missing ones and the total estimates were prepared. In respect of original value of plant & machinery, estimate was prepared for the missing records belonging to SSI category using the average for the non-missing ones of the same category and the total estimate for SSI category was arrived at. For the SSSBE category, no estimation was done for missing observations, as plant & machinery may not be applicable to most of the units falling in this category. Similarly, for exports also, no estimation for missing observations was resorted to.

2.5

State/UT wise coverage of registered working SSI units is given in the following table. The maximum share of working units was in Tamil Nadu (13.09 %), followed by Uttar Pradesh (11.85 %), Kerala (10.69 %), Gujarat (10.08 %), Karnataka (8.04 %) and Madhya Pradesh (7.41%). These states together had a share of 61.16 %.

TABLE 1: COVERAGE OF REGD. SSI UNITS IN THIRD CENSUS, STATE-WISE

S.No.

Name ofState/ UT

Working units in Rural

Working units in Urban

Surveyed

Not Surveyed

Surveyed

Not Surveyed

Total

1.

JAMMU & KASHMIR

7390

376

6794

65

14625

2.

HIMACHAL PRADESH

8601

96

2150

44

10891

3.

PUNJAB

21744

63

42621

587

65015

4.

CHANDIGARH

56

0

1211

14

1281

5.

UTTARANCHAL

9303

2

5979

1

15285

6.

HARYANA

18748

80

20554

202

39584

7.

DELHI

142

2

7135

81

7360

8.

RAJASTHAN

18477

236

23531

901

43145

9.

UTTAR PRADESH

76380

131

86298

129

162938

10.

BIHAR

21572

171

30108

256

52107

11.

SIKKIM

59

6

88

21

174

12.

ARUNACHAL PRADESH

143

1

111

0

255

13.

NAGALAND

109

5

425

29

568

14.

MANIPUR

2420

29

2139

11

4599

15.

MIZORAM

267

1

2451

14

2733

16.

TRIPURA

520

19

418

2

959

17.

MEGHALAYA

1313

1

625

0

1939

18.

ASSAM

6947

43

7442

21

14453

19.

WEST BENGAL

15687

916

21945

3600

42148

20.

JHARKHAND

6705

49

11493

75

18322

21.

ORISSA

5821

128

6151

266

12366

22.

CHHATTISGARH

24103

706

8714

386

33909

23.

MADHYA PRADESH

61714

258

39471

496

101939

24.

GUJARAT

41599

401

95928

609

138537

25.

DAMAN & DIU

885

122

19

0

1026

26.

DADRA & NAGAR HAVELI

310

154

91

138

693

27.

MAHARASHTRA

15476

1958

57656

8008

83098

28.

ANDHRA PRADESH

29806

159

32896

56

62917

29.

KARNATAKA

52590

152

56878

867

110487

30.

GOA

1247

196

598

98

2139

31.

LAKSHADWEEP

19

1

48

0

68

32.

KERALA

96835

1351

47837

965

146988

33.

TAMIL NADU

52579

200

126806

447

180032

34.

PONDICHERRY

490

52

1110

69

1721

35.

ANDAMAN & NICOBAR ISLANDS

300

0

373

0

673

All India

600357

8065

748094

18458

1374974

LOCATION

2.6

The dispersal of working and closed units in rural and urban areas was as follows:

TABLE 2: SECTOR-WISE DISTRIBUTION OF WORKING AND CLOSED UNITS

 

Rural

Urban

Total

Working units

44.33 %

55.67 %

100.00 %

Closed units

37.92 %

62.08 %

100.00 %

Total

41.82 %

58.18 %

100.00 %

REGISTRATION

2.7

Registration in the SSI Sector is voluntary. The registration is done with the District Industries Centres (DICs), firstly on a temporary basis and subsequently, on the basis of the request of the concerned entrepreneurs, on a permanent basis. The DICs register the units, as SSI, Ancillaries or SSSBEs as per the eligibility of the units. Information on year of registration was collected in the Census, so as to have a time series on number of registered units. State/UT wise and year of registration-wise distribution of the units is given in table R2 in the Appendix. It was found that the maximum number of units (45%), which were found operating, was registered during 1991-98. Details are given in table R3 in the Appendix and also depicted in the chart below:

REGISTRATION UNDER FACTORIES ACT

2.8

Some of the registered SSI units might have been registered under other systems of registration. This issue was investigated in the Third Census with reference to registration under the Factories Act. Registration of manufacturing units is mandatory under Sectors 2m (i) and 2m (ii) of the Factories Act. Section 2m (i) refers to units engaging 10 or more workers and using power whereas 2m (ii) refers to units engaging 20 or more workers and not using power. Besides, some of the State Governments notify certain industrial activities for mandatory registration, although they do not conform to the criteria laid down under Sectors 2m (i) and 2m (ii). Such registrations are done under Section 85 (i) or Section 85 (ii) by the concerned State Governments. Section 85 (i) refers to units engaging less than 10 workers and using power and Section 85 (ii) refers to units engaging less than 20 workers and not using power. Third Census found that 62,909 units (4.58 %) were registered under Section 2m (i) and 2m (ii) of the Factories Act and 83,231 units (6.05 %) were registered under Sections 85 (i) and 85 (ii).

REGISTRATION WITH NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)

2.9

In the SSI Sector, the registered SSI units have the benefit of voluntary registration under the Single Point Registration Scheme of NSIC. Third Census reveals that only 31,193 units (2.27 %) availed this facility. State-wise details of units registered under the Factories Act and the NSIC are given in the following Table.

TABLE 3: STATUS OF REGISTRATION OF OPERATING REGD. SSI UNITS UNDER FACTORIES ACT/ NSIC

S.No.

Name ofState/ UT

Regn. Under Factories Act

Registration underSingle Point Regn. Scheme of NSIC

Section 2 (m) (i)or 2 (m) (ii)

Section 85 (i)or 85 (ii)

1.

JAMMU & KASHMIR

288

181

98

2.

HIMACHAL PRADESH

347

193

64

3.

PUNJAB

4966

7247

1706

4.

CHANDIGARH

132

157

50

5.

UTTARANCHAL

259

297

145

6.

HARYANA

3209

2697

790

7.

DELHI

1695

1118

885

8.

RAJASTHAN

2497

2662

779

9.

UTTAR PRADESH

3620

7930

3079

10.

BIHAR

625

1170

724

11.

SIKKIM

0

1

0

12.

ARUNACHAL PRADESH

1

2

31

13.

NAGALAND

71

126

8

14.

MANIPUR

93

528

82

15.

MIZORAM

0

85

10

16.

TRIPURA

115

378

88

17.

MEGHALAYA

5

70

7

18.

ASSAM

277

771

493

19.

WEST BENGAL

1121

1319

2041

20.

JHARKHAND

767

937

539

21.

ORISSA

581

382

113

22.

CHHATTISGARH

805

1059

513

23.

MADHYA PRADESH

1636

2602

1160

24.

GUJARAT

8502

7392

3861

25.

DAMAN & DIU

524

369

115

26.

DADRA & NAGAR HAVELI

292

60

17

27.

MAHARASHTRA

7822

7414

2522

28.

ANDHRA PRADESH

8080

12167

2118

29.

KARNATAKA

3543

7412

3030

30.

GOA

104

164

15

31.

LAKSHADWEEP

0

4

2

32.

KERALA

3325

5295

2165

33.

TAMIL NADU

6898

10514

3663

34.

PONDICHERRY

667

490

267

35.

ANDAMAN & NICOBAR ISLANDS

42

38

13

All India

62909

83231

31193

NATURE OF OPERATION AND DURATION OF OPERATION

2.10

About 91.42 percent of the registered working units were found to be operating perennially, while 6.08 percent were seasonal and the remaining 2.05 percent were casual. The casual enterprises are relatively more prone to sickness. The State-wise percentage distribution of units by nature of operation is given in the following table. The top 50 seasonal and casual industries are given in Table R4 in the Appendix.

TABLE 4: STATE-WISE PERCENTAGE DISTRIBUTION OF NO. OF UNITS BY NATURE OF OPERATION

S.No.

Name ofState/ UT

No. of units having Nature of operation

Total

Perennial

Seasonal

Casual

1.

JAMMU & KASHMIR

89.88

8.96

1.16

100

2.

HIMACHAL PRADESH

86.77

6.12

7.12

100

3.

PUNJAB

89.62

8.06

2.33

100

4.

CHANDIGARH

95.00

3.75

1.25

100

5.

UTTARANCHAL

93.31

6.08

0.61

100

6.

HARYANA

91.99

6.07

1.94

100

7.

DELHI

94.04

3.89

2.08

100

8.

RAJASTHAN

93.75

4.88

1.36

100

9.

UTTAR PRADESH

92.38

6.06

1.56

100

10.

BIHAR

93.28

5.64

1.08

100

11.

SIKKIM

56.32

33.91

9.77

100

12.

ARUNACHAL PRADESH

78.43

5.49

16.08

100

13.

NAGALAND

96.48

2.99

0.53

100

14.

MANIPUR

88.91

8.89

2.20

100

15.

MIZORAM

96.85

1.76

1.39

100

16.

TRIPURA

91.76

4.48

3.75

100

17.

MEGHALAYA

76.53

21.51

1.96

100

18.

ASSAM

93.76

3.78

2.46

100

19.

WEST BENGAL

93.48

4.84

1.68

100

20.

JHARKHAND

95.84

2.84

1.33

100

21.

ORISSA

90.64

7.43

1.92

100

22.

CHHATTISGARH

84.14

11.52

4.34

100

23.

MADHYA PRADESH

91.00

7.44

1.56

100

24.

GUJARAT

95.90

3.31

0.79

100

25.

DAMAN & DIU

97.08

2.53

0.39

100

26.

DADRA & NAGAR HAVELI

99.42

0.29

0.29

100

27.

MAHARASHTRA

91.41

6.58

2.00

100

28.

ANDHRA PRADESH

86.93

9.00

4.07

100

29.

KARNATAKA

87.78

9.20

3.02

100

30.

GOA

90.04

6.26

3.69

100

31.

LAKSHADWEEP

97.06

2.94

0.00

100

32.

KERALA

92.62

4.00

3.38

100

33.

TAMIL NADU

90.06

5.18

4.76

100

34.

PONDICHERRY

94.25

4.41

1.34

100

35.

ANDAMAN & NICOBAR ISLANDS

98.07

1.63

0.30

100

All India

91.42

6.08

2.50

100

2.11

In terms of duration of operation, about 92 % of the units operated for more than 7 months. From the location point of view, about 90% of the units operated for more than 7 months in rural areas whereas this was 94 % in case of units operating in urban areas. Only 1.4 % of the units operated up to 3 months in rural areas whereas only 0.82% operated in urban areas for the same period. Details at all India level are given in the following table. State-wise distributions of units by duration of operation in rural and urban areas are given in Tables R5 and R6, respectively in the Appendix.

TABLE 5: PERCENTAGE DISTRIBUTION OF WORKING REGD. SSI UNITS BY DURATION OF OPERATION

Duration of operation
(Months)

Less than 1 month

Percentage no. of units operating

Rural

Urban

Total

0.19

0.11

0.14

1 to 2

0.47

0.31

0.39

2 to 3

0.74

0.40

0.55

3 to 4

1.14

0.52

0.79

4 to 5

1.14

0.53

0.80

5 to 6

3.01

1.45

2.14

6 to 7

2.37

1.27

1.75

7 to 8

3.78

2.12

2.85

8 to 9

4.76

3.19

3.89

9 to 10

12.30

10.33

11.20

10 to 11

14.55

14.12

14.31

11 to 12

54.71

64.12

59.95

Not recorded

0.86

1.53

1.23

Total

100.00

100.00

100.00

YEAR OF INITIAL PRODUCTION

2.12

One peculiar feature with the system of registration in the SSI sector when compared to the other systems of registration is that the units getting registered in SSI Sector might not be the new entrants in to the industrial area. Some of the units might have existed prior to their registration. Third census found that about 45% of the units existed prior to registration. This shows that the system of registration in SSI Sector has been merely a mechanism to recognize the existing industrial units, at least in respect of 45% of the units. State-wise details are given in the following table.

TABLE 6: PERCENTAGE DISTRIBUTION OF OPERATING REGD. UNITS BY TIMING OF REGISTRATION

S.No.

Name ofState/ UT

Percentage No. of units having Permanent Registration

Not Recorded

Total

In the year of Initial Production

Before the year of Initial Production

After the year of Initial Production

1.

JAMMU & KASHMIR

38.04

1.72

59.95

0.29

100

2.

HIMACHAL PRADESH

44.94

3.12

51.69

0.25

100

3.

PUNJAB

40.32

3.85

53.41

2.43

100

4.

CHANDIGARH

55.28

7.63

31.98

5.11

100

5.

UTTARANCHAL

49.99

4.87

44.15

0.99

100

6.

HARYANA

64.28

4.14

30.92

0.65

100

7.

DELHI

24.87

6.21

65.56

3.36

100

8.

RAJASTHAN

51.43

3.84

43.61

1.11

100

9.

UTTAR PRADESH

51.70

3.54

43.75

1.02

100

10.

BIHAR

32.74

3.98

62.25

1.03

100

11.

SIKKIM

40.57

7.43

52.00

0.00

100

12.

ARUNACHAL PRADESH

40.55

1.97

56.69

0.79

100

13.

NAGALAND

25.80

4.42

69.61

0.18

100

14.

MANIPUR

28.13

5.33

66.41

0.13

100

15.

MIZORAM

59.73

3.47

36.13

0.66

100

16.

TRIPURA

29.94

9.13

59.87

1.06

100

17.

MEGHALAYA

33.37

2.58

64.00

0.05

100

18.

ASSAM

32.71

2.16

64.31

0.82

100

19.

WEST BENGAL

32.98

3.39

52.00

11.63

100

20.

JHARKHAND

25.74

2.73

63.97

7.55

100

21.

ORISSA

41.46

1.49

56.34

0.71

100

22.

CHHATTISGARH

53.56

5.34

34.99

6.11

100

23.

MADHYA PRADESH

63.80

3.37

32.05

0.78

100

24.

GUJARAT

56.17

7.46

35.07

1.30

100

25.

DAMAN & DIU

45.16

5.96

48.48

0.39

100

26.

DADRA & NAGAR HAVELI

24.68

4.47

69.55

1.30

100

27.

MAHARASHTRA

59.65

5.75

33.32

1.28

100

28.

ANDHRA PRADESH

58.85

4.88

34.59

1.68

100

29.

KARNATAKA

46.63

3.75

48.97

0.65

100

30.

GOA

52.95

3.61

42.64

0.80

100

31.

LAKSHADWEEP

46.27

4.48

49.25

0.00

100

32.

KERALA

53.81

2.50

43.41

0.28

100

33.

TAMIL NADU

39.53

3.17

55.77

1.53

100

34.

PONDICHERRY

82.77

4.42

11.87

0.93

100

35.

ANDAMAN & NICOBAR ISLANDS

24.32

2.10

72.97

0.60

100

All India

49.55

4.05

44.78

1.62

100

2.13

Information on year of initial production would indicate the number of units entering the industrial arena afresh, during each year. It was found that 4.22 lakh (30.66%) units had started their production during 1991-96, 3.25 lakh (23.62%) during 1985-90, 1.66 lakh (12.06%) during 1997-98, 1.62 lakh (11.80%) during 1980-84 and 1.20 lakh (8.73%) during 1999-2000. Thus, 51.45% of the units started their production in the Nineties and 32.35 % in the Eighties. The distribution of units by their initial production year is given in the following table. Tables R7 and R8 in the Appendix give the distribution by year of initial production in respect of all the States and some important industries.

TABLE 7: DIST. OF REGD.SSI UNITS OPERATING, BY YEAR OF INITIAL PROD

Year of Initial
Production

Number of regd.
units working

Percentage to
Total

Up To 1957

16769

1.22

1958

800

0.06

1959

643

0.05

1960-65

13418

0.98

1966-74

52193

3.80

1975-76

24484

1.78

1977-79

45685

3.32

1980-84

162283

11.80

1985-90

324707

23.62

1991-96

421582

30.66

1997-98

165878

12.06

1999-00

120059

8.73

2001-02

10063

0.73

Not Recorded

16410

1.19

Total

1374974

100.00

GROSS OUTPUT

2.14

Total output in the year 2001-02 was estimated to be Rs. 70861.73 crores. Distribution of Principal characteristics by gross output given in the following table reveals that 89 % of the units had gross output less than Rs. 10 lakhs. It can also be seen from this table that large output units (with output more than Rs.1 crore) had a share of about 70 % output with a share of only 1.88 % in the number of units. Table R9 gives the list of top 20 Economic activities contributing to 34.88 % of Gross output and Table R30 provides the details of 200 most important products contributing to 54 % to the gross output in the registered SSI Sector. These tables are given in the Appendix.

TABLE 8: PERCENTAGE DISTRIBUTION OF PRINCIPAL CHARACTERISTICS BY GROSS OUTPUT SLABS

Gross Output Slabs
(Rs. Lakhs)

No. Of Units

Employment

Fixed Capital

Orig. val.of P & M

Gross Output

Export

Upto 1

70.83

38.70

13.88

15.80

3.26

0.06

1 to 2

5.27

5.52

3.44

3.42

0.87

0.03

2 to 5

7.23

9.12

6.34

6.91

2.08

0.10

5 to 10

5.42

8.31

7.11

7.76

2.97

0.17

10 to 15

2.49

4.66

4.70

5.07

2.23

0.16

15 to 20

1.56

3.23

3.62

3.99

1.93

0.14

20 to 25

1.07

2.46

3.18

3.33

1.68

0.16

25 to 30

0.77

1.91

2.54

2.68

1.48

0.21

30 to 50

1.73

4.83

7.24

7.88

4.64

0.77

50 to 70

0.89

3.00

4.52

4.98

3.64

0.93

70 to 100

0.86

3.27

5.76

6.14

4.93

1.60

100 to 200

0.81

4.04

8.53

8.01

7.79

4.27

200 to 500

0.62

4.59

9.73

9.08

13.15

13.08

Above 500

0.45

6.37

19.42

14.95

49.35

78.33

Total

100.00

100.00

100.00

100.00

100.00

100.00

EMPLOYMENT PROFILE

2.15

Employment in the registered SSI sector was estimated to be 61.63 lakhs, indicating an average employment of 4.48 persons per unit. 37.47 % of the total employment was in rural areas. State/UT, location, gender and community status-wise distribution of employment is given in Tables R10 and R11 in the Appendix. The tables reveal that the maximum share of employment was 14.31% in Tamil Nadu followed by 10.23% in Maharashtra, 9.44% in Uttar Pradesh, 9.39% in Gujarat, 8.77% in Kerala, 7.74% in Karnataka and 6.22% in Andhra Pradesh. Together these six states contributed to 66.1% share in total employment. Women employees had a share of 16 % in the total employment. Among the socially backward classes, 14.04 % of the total employment was from schedules castes, 6.84 % was from Scheduled Tribes and 36.12 % was from Other Backward Classes (OBCs). Thus, the share of the socially backward classes to the total employment was 57 %. Among the top 50 heavy investment industries, 'Rice Milling' industry was found to have generated maximum employment per Rs. one lakh investment. Details are given in table no. R12 in the Appendix. Distribution of the principal characteristics by employment slabs are presented at Table R13 in the Appendix. The data reveals that 94.15 % of the units employed up to 10 persons only. The chart below depicts the percentage distribution of employment, by employment slabs:

TOP INDUSTRIES

2.16

The details of top 20 Economic activities in terms of number of units, market value of fixed assets, original value of plant and machinery, employment, gross output and exports are presented at Table R14 in the Appendix. In terms of number of units 'Tailoring Services' had the maximum share followed by 'Manufacture of furniture and fixtures made of wood, cane and reed' and 'Flour Milling'.

2.17

In terms of market value of fixed assets 'Rice Milling' topped the list followed by 'Manufacture of other plastic products', 'Treatment and Coating of metals; general mechanical engineering on a fee or contract basis' and 'Manufacture of all types of textile garments and clothing accessories'.

2.18

In terms of original value of plant and machinery also, similar trend was observed. 'Tailoring services', 'Manufacture of all types of garments and clothing accessories' and 'Manufacture of bricks' were the leading industries providing employment. In terms value of gross output 'Rice milling' was the leading industry, followed by 'Manufacture of all types of textile garments and clothing accessories' and 'Manufacture of other plastic products'. The top five industries of this category are depicted in the following chart.

2.19

In terms of exports 'Manufacture of all types of textile garments and clothing accessories' was on top followed by 'Manufacture of knitted and crocheted fabrics and articles', 'Processing and Canning of fish' and 'Software Development'.

TYPE OF UNIT

2.20

It has been found that 9.01 lakh (65.55 %) units were of the SSI type, of which 0.46 lakh units were ancillary units. Thus ancillaries were only 3.33 % of the registered working units. There was a significant change in the structure of the sector as far as SSSBEs are concerned. The proportion of SSSBEs increased from a mere 3.24 % during the 2nd Census to 34.45 % in this Census. The reasons for this increase include the change in the definition and upper ceiling limit in respect of SSSBEs in 1991, besides the fast growth in the Services Sector. Principal Characteristics of different types of units are presented in Table R15 in the Appendix.

2.21

The State/UT wise distribution of different types of units is given in Table R16 in the Appendix. Table R17 in the Appendix gives 20 major industries for each type of unit separately. Among the SSI type of units, 'Manufacture of furniture and fixtures made of wood, cane and reed' topped the list, followed by 'Manufacture of doors, windows and their frame, shutters and rolling shutters, fire escapes, gates and similar articles of iron and steel used in buildings', 'Flour Milling', 'Treatment and coating of metals; general mechanical engineering on a fee or contract basis' and 'Manufacture of all types of textile garments and clothing accessories'. Among the ancillaries, 'Treatment and coating of metals; general mechanical engineering on a fee or contract basis' had highest number of units followed by 'Manufacture of furniture and fixtures made of wood, cane and reed', 'Manufacture of doors, windows and their frame, shutters and rolling shutters, fire escapes, gates and similar articles of iron and steel used in buildings' and 'Manufacture of accessories and parts of all types of machinery for textile apparel and leather production'. 'Tailoring Services' had highest number of SSSBEs followed by 'Repair of bicycles and cycle rickshaws', 'Repair of watches and clocks', 'Repair of household electrical appliances' and 'Repair of TV, VCR, radio, tape recorder and other similar items'.

TYPE OF ORGANIZATION

2.22

About 88.85 % of the units in the registered SSI sector were proprietary units. About 7.21 % of the units were run by partnerships and private companies ran 2.42 % of the units. The rest were owned by either Cooperatives or Trusts. Principal Characteristics by type of organization are presented in Table R18 in the Appendix.

2.23

The State/UT wise distribution by type of organization is given in Table R19 and the list of top 50 industries by type of organization is given in Table R20 in the Appendix.

TYPE OF MANAGEMENT

2.24

From the angle of community status, 7.85 % of the units were managed by Scheduled Caste (SC) entrepreneurs, 3.53 % by Scheduled Tribe (ST) entrepreneurs and 38.50 % by entrepreneurs of Other Backward Classes (OBCs). Thus, socially backward classes were managing 49.88 % of the working units in the registered SSI sector. Principal Characteristics by type of management are presented in Table R21 given in the Appendix. The State/UT - wise distribution by type of management is given in Table R22 and the top 20 industries by type of management are given in Table R23 in the Appendix.

MAIN SOURCE OF POWER

2.25

The main source of power in the registered SSI sector was electricity as 65.43 % of units were run with electricity whereas 26.23 % of the units did not require any power. Principal Characteristics by main source of power are presented in Table R24 in the Appendix. The State/UT - wise distribution by main source of power is given in Table R25 and details of usage of power in the top 50 industries are given in Table R26 in the Appendix.

TYPE OF PRODUCTS/ SERVICES

2.26

Commodity Classification for SSI Sector used in the Third Census was prepared on the basis of 'A Standard Industrial Commodity Classification' (ASICC) used by the National Sample Survey Organization. Information was collected from each unit in respect of a maximum of 5 products/ services, produced/ rendered by it. Out of a total of 6625 products/ services for which codes were provided in the Classification, as many as 5,983 products/ services were reported as produced/ rendered by the registered working SSI units. It has also been observed that out of the 13,74,974 registered working units as many as 11,65,406 (84.76 %) produced/ rendered a single product/ service. State/UT-wise profile of registered working units producing/ rendering different number of products/ services is provided in Table R27 and industry-wise profile of registered working units producing/ rendering different number of products/ services is provided in Table R28 in the Appendix. Table R29 in the Appendix provides a list of 200 leading products/ services in terms of number of units. These products/ services accounted for 71.83 % of the units. Table R30 in the Appendix provides a list of 200 leading products/ services in terms of gross output accounting for 54 % of the total gross output. The top 200-products/ services contributing to 61.40 % share in the total employment are listed in Table R31 in the Appendix. Table R32 in the Appendix provides a list of 200 leading products/ services in terms of exports accounting for 88.22 % of total exports.

2.27

Reservation of products/ services for exclusive production in the SSI sector had been a policy for a long time. Out of the products reserved for production in SSI sector as per the reserved items list effective on 31.3.2001, 877 items were being produced in 16.39 % of the total units. 17.2 % of the total employment in registered SSI sector was engaged in production of these items contributing to 13.64 % of the gross output in the sector and 9.98 % of total exports of the sector. These items accounted for 13.79 % of the market value of Fixed Assets and 13.3% of total original value of plant and machinery in the registered SSI sector. Table R33 in the Appendix lists the 100 leading reserved products/ services contributing to 1.72 % in terms of gross output. Table R34 in the Appendix provides the list of 100 leading reserved products/ services in terms of number of units accounting for 1.33 %. The top 100 reserved products/ services in terms of employment are listed in Table R35 in the Appendix. The units engaged in production of these products employed 8,59,916 persons (i.e., 13.95 % share in total employment).

NATURE OF ACTIVITY

2.28

About 63.45 % of the units in the registered SSI sector were engaged in manufacturing/ assembling/ processing, whereas 2.10 % of the units were engaged in repair and maintenance. The remaining 34.45 % of the units were services. Principal Characteristics by nature of activity are presented in Table R36 in the Appendix. The State/UT-wise distribution by nature of activity is given in Table R37 and the lists of top 20 industries by nature of activity are given in Table R38 in the Appendix.

MAINTENANCE OF ACCOUNTS

2.29

Out of 13, 74,974 working units in the registered sector, only 4, 04,672 (29.43%) units were maintaining accounts. The distribution of these units by type of organization is given in Table R39 in the Appendix.

TECHNICAL KNOW-HOW

2.30

Information was collected from the units about the sources from which the technical know-how was obtained by them. Different sources mentioned were 'Abroad', 'Domestic collaborating unit", 'Domestic R & D Institution/ Special Agency/ Organisation' and 'None'. As many as 11,73,961 units (i.e., 85.38 %) registered working units reported the last category, i.e., 'None' which shows that they were dependent on traditional technology/ skills. State/UT - wise distribution of the units indicating the source of obtaining the technical know-how is given at Table R40 in the Appendix. Table R41 in the Appendix provides information on top 20 industries obtaining technical know-how from 'Abroad', 'Domestic collaborating unit" and 'Domestic R & D Institution/ Special Agency/ Organisation'.

OUTSTANDING LOAN

2.31

Only 2,76,333 units (20.1%) out of 13,74,974 registered working units had outstanding loan as on 31st March 2002. Out of the units having outstanding loan, 1,96,137 (14.26%) had loan outstanding with institutional sources.

COMPARISON WITH SECOND CENSUS:

2.32

Second Census covered only the registered SSI sector. As compared to the situation prevailing at the time of the Second Census, the Third Census brought out some structural changes in the registered SSI sector. While the proportion of working units remained the same by and large, the domination of SSIs among the working units has been reduced considerably from 96 % to 66 %. This is mainly due to the increase in the number of units engaged in services, as the no. of units in manufacturing sector decreased only marginally from 65.42 % to 63.43 %. The per unit employment has also come down from 6.29 to 4.48. This could be due to technological upgradation and advancement being resorted to by the units in the Sector in the face of the changed economic competitive conditions. As a result, the per unit fixed investment has gone up from Rs.1.60 lakhs to 6.68 lakhs. The Comparison between the Second Census and in Third with respect to registered SSI sector in 12 identified indicators is presented in the following table.

TABLE 9: COMPARISON OF THE THIRD CENSUS WITH
SECOND CENSUS (REGISTRED SSI SECTOR)

S.No.

Indicator

2nd Census
(1987-88)

3rd Census
(2001-02)

1.

Percentage of Working Units

62.75

60.77

2.

Percentage of Working Units in rural areas

42.20

44.33

3.

Percentage of Working Units that are
SSIs
Ancillaries
SSSBEs


96.24
0.52
3.24


65.55
5.08
34.45

4.

Percentage of Proprietorship Working Units

80.48

88.85

5.

Percentage of Proprietorship Working Units engaged in Manufacturing/Assembly/Processing

65.42

63.45

6.

Percentage of Working Units that are owned/Managed by
SCs
STs
Women


6.84
1.70
7.69


7.85
3.53
8.32

7.

Per Working Unit Fixed Investment (Rs. lakhs)

1.60

6.68

8.

Per Working Unit Investment (Original) in P & M (Rs. lakhs)

0.95

2.21

9.

Per Working Unit production (Rs. lakhs)

7.38

14.78

10.

Per Working Unit Employment (No.)

6.29

4.48

11.

Employment per rupee one lakh of investment in Fixed Assets

3.94

0.67

12.

Production/Employment (Rs. Lakhs)

0.04

3.30