Saturday, February 9, 2008

how to apply for SSI Registration in India

SSI Registration
Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 10 million) should seek registration with the Director of Industries of the concerned State Government.

Registering your SSI Unit
The main purpose of Registration is to maintain statistics and maintain a roll of such units for the purposes of providing incentives and support services.
States have generally adopted the uniform registration procedures as per the guidelines. However, there may be some modifications done by States. It must be noted that small industries is basically a state subject. States use the same registration scheme for implementing their own policies. It is possible that some states may have a 'SIDO registration scheme' and a 'State registration scheme'.

Benefits of Registering Objectives and Features Provisional Registration Permanent Registration Procedure De-registration

Download Registration Forms & Related Documents (Proformas)
Application for Provisional Registration Provisional Registration Certificate Application for Permanent Registration Certificate of Registration
Additional Sheet-1 (for Additions/Deletions) Appendix "A" (Production Details Appendix "B" (Details of Plant and Machinery Affidavit

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List of items reserved for SSI units


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Friday, February 8, 2008

SSI Policy Statement

Date : 6th August, 1991
A. SMALL AND TINY ENTERPRISES
1.0 INTRODUCTION
1.1 The Small Scale Industrial Sector has emerged as a dynamic and vibrant sector of the economy during the eighties. At the end of the Seventh Plan period, it accounted for nearly 35 percent of the gross value of output in the manufacturing sector and over 40 percent of the total exports from the country. It also provided employment opportunities to around 12 million people.
1.2 The primary objective of the Small Scale Industrial Policy during the nineties would be to impart more vitality and growth-impetus to the sector to enable it to contribute its mite fully to the economy, particularly in terms of growth of output, employment and exports. The sector has been substantially delicensed. Further efforts would be made to deregulate and debureaucratise the sector with a view to remove all fetters on its growth potential, reposing greater faith in small and young entrepreneurs.

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End of an era: SSI list pruned to 35

Reservation era nears an end for small units
9 Feb 2008, 0116 hrs IST,TNN

NEW DELHI:

Almost 17 years after the process of reforms began in India, one of the last remaining legacies of the licence-permit raj era is now almost obliterated. The commerce and industry ministry on Friday ended the monopoly of small-scale units on 79 items, leaving just 35 on the reserved list that once had as many as 873 items. While industrial policy reforms began with the new industrial policy statement of PV Narasimha Rao in July 1992, governments remained wary of intruding on the politically sensitive issue of reservation for small-scale industry (SSI) till the end of the 1990s. Thus, while at the turn of the millennium the number of items reserved for SSI units had come down from its peak of 873 in 1984, well over 800 items remained on the list. Since 2002, the scenario has changed dramatically. In these last seven years, around 790 items - including things like farm equipment, toothpaste, ice cream, footwear, detergents and even garments - have been knocked off the list.

Thus, for the first time in over 40 years, there are today as few as 35 items reserved for SSI units. When the policy of reservation was first introduced in 1967, there were just 47 items reserved for small-scale manufacturers. However, what was till then an administrative decision was given legal backing by an amendment enacted in 1984 to the Industries (Development and Regulation) Act, 1951. That year also saw the number of items reserved reaching a peak of 873. The policy of reservation meant that it was routine in the late 1990s and early years of the millennium for visitors to Nirman Bhavan to see flocks of anxious businessmen clustering in a narrow corridor on one of the upper floors, waiting to plead with babus in the SSI ministry to ensure that their sector was kept within the ambit of reservation so that they could escape competition from large industrial houses.

Friday's announcement effectively reduces this to a fringe show. Reservation means that units producing the reserved items cannot go beyond a stipulated cap on investment in plant and machinery. In the old days, therefore, it was standard practice for mass consumption items covered by the reserved list to be farmed out by large marketing companies to dozens of small units, thereby negating economies of scale.

What it also meant was that some companies resorted to manufacturing completely new class of products. So, if ice cream was reserved for small scale units, a large player could always produce, say, 'frozen desserts'. Apart from the steady trickle of de-reservation over the last decade, one of the measures taken to get over this problem without confronting the political problems involved was to allow foreign investment even in reserved items with the caveat that such units would have to fulfill an export obligation.

For players who were already manufacturing items that were suddenly reserved in 1967, the government came up with what was carry-on-business licence which capped their capacity, and fixed the location of the plant and the goods produced. Friday's de-reservation means that pastries, hard boiled sugar candy and tooth powder can be manufactured by large units too. Similarly, buckets, paper bags, paper cups, envelopes, letter pads, paper napkins might not be manufactured only in small units but also in specialised factories. The same for sesame and rapeseed oil, which are not solvent extracted, a host of chemicals and dyes paints be it distempers.

Electrical goods, which include geysers, hot air blowers and toasters, too are out of the reserved list, as are ballpoint and fountain pens. What about the remaining 35 items? The government is keeping its fingers crossed. "If industry is willing, we will do away with the reserved list altogether," said a senior official in the ministry.


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Govt Lifts Monopoly On 79 More Items
TIMES NEWS NETWORK
New Delhi: Almost 17 years after the process of reforms began in India, one of the last remaining legacies of the licencepermit raj era is now almost obliterated. The commerce and industry ministry on Friday . ended the monopoly of smallscale units on 79 items, leaving just 35 on the reserved list that once had as many as 873 items.While industrial policy reforms began with the new industrial policy statement of P V Narasimha Rao in July 1992, governments remained wary of intruding on the politically sensitive issue of reservation for small-scale industry (SSI) till the end of the 1990s.Thus, while at the turn of the millennium the number of items reserved for SSI units had come down from its peak of 873 in 1984, well over 800 items remained on the list.Since 2002, the scenario has changed dramatically. In these last seven years, around 790 items, including things like farm equipment, toothpaste, ice cream, footwear, detergents and even garments, have been knocked off the list.Thus, for the first time in over 40 years, there are today as few as 35 items reserved for SSI units. When the policy of reservation was first introduced in 1967, there were just 47 items reserved for smallscale manufacturers.However, what was till then an administrative decision was given legal backing by an amendment enacted in 1984 to the Industries (Development and Regulation) Act, 1951. That year also saw the number of items reserved reaching a peak
of 873. The policy of reservation meant that it was routine in the late 1990s and early years of the millennium for visitors to Nirman Bhavan to see flocks of anxious businessmen clus· tering in a narrow corridor on one of the upper floors, waiting to plead with babus in the SSI ministry to ensure that their sector was kept within the amqit of reservation so that they could escape competition from large industrial houses. Friday's announcement effectively reduces this to a fringe show. Reservation means that units producing the reserved items cannot go beyond a stipulated cap on investment in plant and machinery.In the old days, therefore, it was standard practice for mass consumption items covered by the reserved list to be farmed out by large marketing companies to dozens of small units, thereby negating economies of scale.What it also meant was that some companies resorted to manufacturing ·completely new class of products. So, if ice cream was reserved for small scale units, a large play-
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er could always produce, say;.'frozen desserts'.Apart from the steady trickle of dereservation over the last decade,· one of the measures taken to get over this problem without con· fronting the political problems involved was to allow foreign investment even in reserved items with the caveat that such units would have to fulfil an export obligation.For players who were already manufacturing items that were suddenly reserved in 1967, the government came up with what was carry-on-business licence which capped their capacity; and fixed the location of the plant and the goods produced. Friday's derservation means pastries, hard boiled sugar candy and tooth powder can be manufactured by large units too. Similarly;buckets, paper bags, paper cups might be manufactured in specialised factories too. What about the remaining 35 items? The government is keeping its fmgers crossed. "If industry is willing, we will do away with the reserved list altogether," said a senior official.


The India ModelJuly 10, 2006 on 4:18 pm In Magazine, Foreign Affairs
AN ECONOMY UNSHACKLED
Although the world has just discovered it, India’s economic success is far from new. After three postindependence decades of meager progress, the country’s economy grew at 6 percent a year from 1980 to 2002 and at 7.5 percent a year from 2002 to 2006 — making it one of the world’s best-performing economies for a quarter century. In the past two decades, the size of the middle class has quadrupled (to almost 250 million people), and 1 percent of the country’s poor have crossed the poverty line every year. At the same time, population growth has slowed from the historic rate of 2.2 percent a year to 1.7 percent today — meaning that growth has brought large per capita income gains, from $1,178 to $3,051 (in terms of purchasing-power parity) since 1980. India is now the world’s fourth-largest economy. Soon it will surpass Japan to become the third-largest.

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Thursday, February 7, 2008

the Enterpreneur

Steps on starting a new enterprise

Market Survey

Size of market in crores
competitors
market share expected
location of markets
competitors pricing
raw material suppliers
present technology
product life
ROI

Plant

Location/ Area
Budgets

Machinery

Selection of machinery
sources for machinery

Working Capital

estimation for raw material and finished goods stocks
debtors

Sources of funding

equity
borrowings

Purchase of Plant and Machinery

Plant Layout

Organization Chart

Manpower recruitment

Training

Prototype design and development

Prototype testing

Field trials

Securing Orders

Purchase of Raw Materials

Commercial production start