No. 5 (1)/93-SSI Bd.
GOVERNMENT OF INDIA

MINISTRY OF INDUSTRY
OFFICE OF THE DEVELOPMENT COMMISSIONER
SSI BOARD & POLICY DIVISION
Nirman Bhavan, New Delhi,
Dated the 4thMay, 1993

To,

The Secretary (Industries)/Commissioner/Director of Industries,
All States/UTs.

Subject: Revised procedure for renewal of registration for ancillary undertakings.

Earlier i) No.1 (6)/76-Anc.Dt. Nil.
References ii) No.5(1)/89-SSI Bd. Dt. 15.2.1990

Sir,

  1. You are aware that under the IDR Act, 1951 two categories of industrial undertakings are recognised in small scale sector viz., Small Scale Industrial Undertaking and Ancillary Industrial Undertaking. At present, investment limit for small scale industrial undertaking is Rs. 60 lacs and that for ancillary industrial undertaking is Rs. 75 lacs.

  1. Presently, there is no provision to validate or renew the registration certificate issued to small scale industries. However, for ancillary industrial undertaking the procedure is slightly different and is laid down in the Circular No. 1(6)/76-Ancillary of the Office of the Development Commissioner (SSI). It provides for a procedure to award a status certificate to ancillary unit wherein the applicant applies directly to the Director of Industries. A copy of the application form is also sent to Small Industries Service Institute (SISI). The Director, SISI issues a technical competency/ production capacity certificate. Consequent to this, a status certificate is issued by the Director Industries and thereafter, the registration certificate is given. This certificate is to be renewed every two years.

  2. A number of repr3esentations have been received from several State Govts. and industry associations requesting that the procedure for registration and renewal for ancillary industrial undertakings should be simplified. The suggestions that have been received, have been examined carefully in this Office and it has been decided that the procedure for registration of ancillary industrial undertakings should broadly be on the same lines as that for the small scale industrial undertakings. In the light of the Govt. policy to simplify procedures and introduce transparency in administrative matters, the following decisions have been taken:-

    1. It will not be required to obtain recommendations on technical competency/production capacity for industrial ancillary undertakings from the Director, SISI. Further, it will not be required to obtain a status certificate from the Director Industries to register an ancillary industrial undertaking. Consequently, the provisions made in the model application form on page-12 below the declaration may be revised and changed accordingly. The powers given in the earlier procedure respectively to the Director, SISI and to the Director of Industries will now vest in the registering authority, i.e. the General Manager of the concerned District Industries Centre where the unit is located. In other words, the G. M. of the DIC/registering authority will register the ancillary industrial undertakings in the same way as he registers small scale industrial undertakings. The only additional factor he has to see is that the unit proposes to supply at least 50% of its produce or services, to other (parent) units.

    2. The certificate issued to ancillary industrial undertakings up to an investment of Rs. 60 lacs will be in perpetuity. In other words, it will be the same as for small scale industrial undertakings.

    3. Renewal of registration certificate of ancillary industrial undertakings will only be required in case of those units whose investment in plant & machinery is more than Rs. 60 lacs and upto Rs. 75 lacs. The certificate of registration issued to such units will be valid for a period of 5 years. In other words, renewal of the registration certificate of such industrial undertakings which have investment limits more than Rs. 60 lacs and upto Rs. 75 lacs will be valid upto 5 years. After 5 years if the unit continues to be an ancillary industrial undertaking then the certificate can be re-validated for the next 5 years and so on.

You are requested to implement the above revised procedures and issue necessary instructions to all registering authorities under your jurisdiction. You are also requested to give wide publicity to the revised procedure.

This supersedes all previous instructions issued on this subject.

Sd/-
(Raju Sharma)
Director (SSI Bd.)