Small Scale & Ancillary Industry becomes Small or Medium Enterprise even for the purpose of IDRA.
Rescinding of Notification No.857(E) dated 10 December, 1997
The above said notification lists the factors on the basis of which an industrial undertaking shall be regarded as a small scale or as an ancillary industrial undertaking for the purposes of Industries (Development and Regulation) Act, 1951 (IDRA). It is the impact of Micro, Small & Medium Enterprises Development Act, 2006, the said notification was rescinded. Read about MSMED Act in http://yehseeyes.blogspot.com/2007/11/micro-small-and-medium-enterprises.html
The central Government considers it necessary with a view to ascertain which ancillary and small scale industrial undertakings need supportive measures, exemption or other favourable treatment under the Industries (Development and Regulation) Act, 1951 (65 of 1951) herein after referred to as the said Act) to enable them to maintain their viability and strength so as to be effective in –
promoting in a harmonious manner the industrial economy of the country and easing the problem of unemployment, and
securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good.
& for which purpose has rescinded the above said notification vide Notification SO. 563(E) dated 27th February 2009.
Consequently even the format of Industrial Entrepreneurial Memorandum (IEM) got amended, which now reads instead for IDRA – enterprise for goods pertaining to Schedule-I industry or employing plant & machinery as value addition to final product with distinct name/character/use. Find the said amendment in http://www.laghu-udyog.com/publications/circulars/GazNot/SO-199(E).pdf
Keep tracking Industries amendment using Industries DIPP updates