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CHAPTER III : Classification OF ENTERPRISES, ADVISORY COMMITEE AND MEMORANDUM OF
MICRO, SMALL AND MEDIUM ENTERPRISES |
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65 of 1951 |
7.(1)
Notwithstanding anything contained in section 11B of the Industries
(Development and Regulation) Act, 1951, the Central Government may, for
the purposes of this Act, by notification and having regard to the
provisions of sub-sections (4) and (5), classify any class or classes of
enterprises, whether proprietorship, Hindu undivided family, association
of persons, co-operative society, partnership firm, company or
undertaking, by whatever name called, - |
Classification of enterprises. |
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65 of 1951 |
(a) in
the case of the enterprises engaged in the manufacture or production of
goods pertaining to any industry specified in the first schedule to the
Industries (Development and Regulation) Act, 1951, as –
(i) a micro enterprise, where the investment
in plant and machinery does not exceed twenty five lakh rupees;
(ii) a small enterprise, where the investment
in plant and machinery is more than twenty five lakh rupees but does
not exceed five crore rupees; or
(iii) a medium enterprise, where the investment in plant and machinery
is more than five crore rupees but does not exceed ten crore rupees;
(b) in
the case of the enterprises engaged in providing or rendering of
services, as –
(i) a micro enterprise, where the investment
in equipment does not exceed ten lakh rupees;
(ii) a small enterprise, where the investment
in equipment is more than ten lakh rupees but does not exceed two crore
rupees; or
(iii) a
medium enterprise, where the investment in equipment is more than two crore rupees but does not exceed five crore rupees
Explanation 1 For the removal of doubt, it is
hereby clarified that in calculating the investment in plant and
machinery, the cost of pollution control, research and development,
industrial safety devices and such other items as may be specified, by
notification, shall be excluded.
Explanation
2 It is clarified that the provisions of section 29B of the Industries
(Development and Regulation) Act, 1951, shall be applicable to the
enterprises specified in sub-clauses (i) and (ii) of clause (a) of
sub-section (l) of this section. |
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(2) The
Central Government shall, by notification, constitute an Advisory
Committee consisting of the following members, namely:-
(a) the Secretary to the Government of India
in the Ministry or Department of the Central Government having
administrative control of the small and medium enterprises who shall be
the Chairperson, ex
officio;
(b) not more than five officers of the Central
Government possessing necessary expertise in matters relating to micro,
small and medium enterprises, members, ex officio;
(c) not more than three representatives of the
State Governments, members, ex officio;
and one representative
each of the associations of micro, small and medium enterprises,
members, ex officio; |
Advisory
Committee |
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(3)
The Member- Secretary of the Board shall also be the ex officio
Member-Secretary of the Advisory Committee.
(4) The
Central Government shall, prior to classifying any class or classes of
enterprises under sub-section (1), obtain the recommendations of the
Advisory Committee.
(5) The
Advisory Committee shall examine the matters referred to it by the Board
in connection with any subject referred to in section 5 and furnish its
recommendations of the Board.
6) The
Central Government may seek the advice of the Advisory Committee on any
of the matters specified in section 9, 10, 11, 12 or 14 of Chapter IV.
(7) The
State Government may seek advice of the Advisory Committee on any of the
matters specified in the rules made under section 30.
(8) The
Advisory Committee shall, after considering the following matters,
communicate its recommendations or advice to the Central Government or,
as the case may be, State Government or the Board, namely:-
(a) the level of employment in a class or
classes of enterprises;
(b) the level of investments in plant and
machinery or equipment, in a class or classes of enterprises;
(c) the need of higher investment in plant and
machinery or equipment for technological upgradation, employment
generation and enhanced competitiveness of the class or classes of
enterprises;
(d) the possibility of promoting and diffusing
entrepreneurship in micro, small or medium enterprises; the international
standards for Classification of small and medium enterprises. |
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65 of 1951 |
(9) Notwithstanding anything
contained in section 11B of the Industries (Development and Regulation)
Act, 1951 and clause (h) of section 2 of the Khadi and Village
Industries Commission Act, 1956, the Central Government may, while
classifying any class or classes of enterprises under sub-section (1),
vary, from time to time, the criterion of investment and also consider
criteria or standards in respect of employment or turnover of the
enterprises and include in such Classification the micro or tiny
enterprises or the village enterprises, as part of small enterprises. |
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8. (1)
Any person who intends to establish,-
(a) a micro or small enterprise, may, at his
discretion; or
(b) a medium enterprise engaged in providing
or rendering of services may, at his discretion; or |
Memorandum of micro, small and medium enterprises |
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65 of 1951 |
(c) a medium enterprise engaged in the
manufacture or production of goods pertaining to any industry specified
in the First Schedule to the Industries (Development and Regulation)
Act, 1951, shall
file the memorandum of micro, small or, as the case may be, of medium
enterprise with such authority as may be specified by the State
Government under sub-section(4) or the Central Government under
sub-section (3): |
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Provided that any person who, before the commencement of this Act,
established—
(a) a small scale industry and obtained a
registration certificate, may, at his discretion; and |
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65 of 1951 |
(b) an industry engaged in the manufacture or
production of goods pertaining to any industry specified in the First
Schedule to the Industries (Development and Regulation) Act, 1951,
having investment in plant and machinery or more than one crore rupees
but not exceeding ten crore rupees and, in pursuance of the notification
of the Government of India in the erstwhile Ministry of Industry
(Department of Industrial Development) number S.O.477(E), dated the 25TH
July, 1991 file an Industrial Entrepreneurs’ Memorandum, shall within one
hundred and eighty days from the commencement of this Act, file the
memorandum, in accordance with the provisions of this Act. |
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(2) The
form of the memorandum, the procedure of its filing and other matters
incidental thereto shall be such as may be notified by the Central
Government after obtaining the recommendations of the Advisory Committee
in this behalf.
(3) The
authority with which the memorandum shall be filed by a medium
enterprise shall be such as may be specified, by notification, by the
Central Government.
(4) The
State Government shall, by notification, specify the authority with
which a micro or small enterprise may file the memorandum.
(5)
The authorities specified under sub-sections (3) and (4) shall follow,
for the purposes of this section, the procedure notified by the Central
Government under sub-section (2). |
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