New Bill on SSIs to be tabled

NEW DELHI: The government will bring in a new legislation for the small-scale sector in the Budget session of Parliament that will combine all the laws governing the sector.

"The draft note of the Small Enterprises Development Bill 2004 has been circulated among various ministries. Once their comments are available it will be taken to the cabinet and efforts will be made to introduce the bill in the Budget Session of Parliament," Minister for Small Scale Industries and Agro and Rural Industries Mahabir Prasad said on Friday.

"The Bill will address issues relating to registration, credit, marketing and trade protection," he said at the conference of state SSI ministers here.

"The proposed Bill seeks to bring all laws governing SSI sector under one," secretary in the Ministry BS Minhas later told newsmen.

"The Bill will also seek to curtail the inspector raj by bringing down the number of inspections that SSI units are subjected to one in five years. For additional inspections the inspectors will have to seek the approval of the higher authorities," the official said.

The Bill also seeks to empower the SSI Ministry to decide on the excise concessions to the units and the definition of the SSI unit, Minhas said.

At present units with an investment of less than Rs 1 crore fall under SSI category with some exemptions like pharma, hand tools, hosiery and stationery items, where the limit is Rs 5 crore.