Approvals and clearances – a series
Every SSI/MSM Enterprises has to comply with various
regulations which are in force. These include i) regulatory, ii) taxation, iii)
environmental, iv) certain product specific clearances. This section looks into
the methodology of obtaining these approvals & clearances.
Exemption from compulsory license/industrial license
Licensing
in the industries sector is governed by the Government of India, under
licensing exemption notification issued in 1991, under the industries Act 1951.
In SSI, there are virtually no licensing restrictions. No industrial license is
required except in case of 6 product groups include in compulsory licensing
(these mainly cover product that can only be made in large scale sector).
But
if a SSI unit employs less than 50/100 workers with/without power then it would
not require a license from the Government of India even for the 6 product
groups covered in licensing under schedule II of the notification.
Subject
to this, an entrepreneur can set up a SSI unit anywhere in the country without
restriction. The units are of course, subject to the location/land use &
zoning restrictions in force under the local laws.
One
has to obtain several clearances or permissions depending upon the nature of
his/her unit & products manufactured.
Product specific clearances
Regulatory or Taxation
Clearances
1.
Registration
under Sales Tax Act - Commercial Tax officer.
2.
Registration
under Central Excise Act - Collector of Central Excise.
3.
Payment
of Income Tax – ITO.
4.
Registration
of Partnership deed - Inspector General.
5.
Calibration
of weights & measures - Weights and Measures Inspector of State
6.
Power
Connection - State Electricity Board
7.
Employee
strength exceeding 10 with power connection or 20 without power - Chief
Inspector of Factories
Environment & Pollution
Related Clearances
The
method of granting consent under water and air pollution to MSM Enterprises has
been simplified. Except for 17 critically polluting sectors given below, in all
other cases MSM Enterprises will merely have to file an application and obtain
an acknowledgement which will serve the purpose of consent:-
1.
Fertilizer
2.
Sugar
3.
Cement
4.
Fermentation
& Distillery
5.
Aluminum
6.
Petrochemicals
7.
Thermal
Power
8.
Oil
refinery
9.
Sulphuric
Acid
10. Tanneries
11. Copper smelter
12. Zinc smelter
13. Iron & Steel
14. Pulp & Paper
15. Dye and Dye
intermediates
16. Pesticides
manufacturing and formulation
17. Basic Drugs and
Pharmaceuticals
Product Specific Clearances
1.
Establishing
a Printing Press - District Magistrate
2.
License
for Cold Storage Construction - Designated Official in State
3.
Pesticides
- Central/State Agricultural Department - Ministry of Agriculture
4.
Drugs
and Pharmaceuticals - Drug license from State Drug Controller
5.
Safety
Matches/ Fireworks - License under Explosives Act from Directorate of
Explosives, Nagpur
6.
Household
Electrical Appliances - License from Bureau of Indian Standards
7.
Wood
Working Industry within 8 km from forest - District Forest Officer
8.
Milk
Processing & Milk products manufacturing units - Approval under Milk and
Milk Products Order from State Agricultural/ Food Processing Industries
Department above a designated capacity.
Quality
certification has become extremely important in competitive markets & especially
in gaining foothold in exports. To avail the certification of ISO 9001-2008, a
unit has to undertake significant costs, the small scale industries have been
found wanting mainly on account of resource crunch to implement quality systems
to obtain this certification.
i)
A scheme has been launched to give
financial incentive to these MSM Enterprises who acquire ISO 9001-2008
certification. By reimbursing 75% of their costs of obtaining certification,
subject to a maximum of Rs. 0.75 lacs per unit.
ii)
In order to promote modernization &
technology up gradation in MSM Enterprises are assisted in improving the
quality of their products.
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