Ancilarisation in India-JUNAID ALI
Ancilarisation in India-JUNAID ALI
Ancilarisation in India-JUNAID ALI
IN
INDIA
Ancillary and small scale industry
1) Provisional registration:
Form 4-A
DIC
Within 1 week
Initial validity 1 year, can be renewed for 2 more years in
four 6 monthly extensions
Benefits:
Post-
Registration: Half yearly reports on
production and sales to be
submitted to Directorate of
Industries
DE-REGISTRATION
Reasons for De-registration
Unit closed continuously for period exceeding
1 year
Fails to submit half-yearly reports
Unit misuses the raw material allocated to it
Process:
Show cause 30 days time
De-registration
notice to appeal
RELATION BETWEEN SMALL
AND LARGE UNITS
1. Supplementary
2. Competitive
3. Complementary
4. Ancillarisation
5. Jobbing
6. Merchandising
7. Servicing
DIFFERENCES
1)Cottage and Small- Scale Industries
• Kind of goods
• Use of manual labour
• Technological advancement
• Sources of raw material
• Type of enterprise
• Quantum of hired labour
• Markets Served
Small and large scale units
Investment
Labour
Area of operation
Character
Scope for expansion
Kind of labour
Size
Kind of organization
Location
Management style
Selection of a project
Project is a work plan to achieve certain
objectives within a specified period.
Sole proprietorship
Partnership
Corporation public/ limited company
Cooperative
Clearance from department
1st
Industrial policy came into force in
1948
INDUSTRIAL POLICY, 1977
Presented
to the parliament on
23/12/1977
Main thrust:
Effective promotion of cottage and
small scale industries widely
dispersed in rural areas and towns
Features:
Investment limits:
Tiny Units Rs. 2 Lacs
Ancillaries Rs. 25 Lacs
• Nucleus Plants
• Stress on R & D
• Early warning systems for sickness
INDUSTRIAL POLICY, 1991
Presentedto the parliament on 06/08/1981
Investment limits:
Disadvantages
Variations in demand
Captive unit
Delay in payments
Isolation paradox
Promotional deficiency