ASCI for liberal SSI legal regime THE Administrative Staff College of India (ASCI), which made a study of laws, rules, regulations and procedures relating to small-scale industries (SSIs) in India, has recommended that none other than environment laws should be made applicable to SSI units employing less than 50 persons (including part-time, contractual and casual) or with less than Rs 25 lakh in plant and machinery at historical value. The study has identified the following laws as redundant for the SSI sector: *The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 (Act 31 of 1959). *The Employees Liability Act, 1936 (Act 24 of 1938). *The Weekly Holidays Act, 1942 (Act 18 of 1942). *The Collection of Statistics Act, 1953 (Act 32 of 1953). *The Labour Laws (Exemption from Furnishing Returns and Maintenance of Registers by Certain Establishments) Act, 1988 (Act 32 of 1953). The SSI law project has been commissioned by the Union Ministry of Small-Scale and Agro & Rural Industries. The exercise is stated to have been undertaken as SSIs in the country feel harassed by the plethora of laws, rules and regulations and the burden of inspections under various laws has proved too onerous. The focus of the study is the simplification of SSI laws within the context of overall industrial development. The SSI sector in the country comprises 3.12 million units, employs 17 million persons or 5.5 per cent of the total workforce in the country and accounts for 35 per cent of the exports. The sector currently faces threats from de-reservation, global competition, rising labour costs, strict intellectual property rights (IPR) regime and loss of control over management. The study team, headed by Dr B. Yerram Raju of ASCI, submitted Volume I of its report to the Ministry recently. The report comprises three volumes with Volume I dealing with an overview of the SSI sector, aspects of simplification and the role of SSI associations. Volume II covers `documentation' and Volume III covers draft legislation for the SSI sector. The net effect of the ASCI recommendations regarding simplification of laws and procedures would be substitution of 52 forms with one common annual return, substitution of all inspections with only one inspection once in five years or when the whistle is blown regarding non-compliance of statutory provisions by any particular unit and replacement of all the registers with one muster roll register and a binder of wage slips. Before undertaking the task of examining the laws impacting on the SSI sector, the ASCI team held wide-ranging discussions with the Government officials and representatives of industry associations in different States to ascertain their views on the issues involved in framing a single comprehensive law for small industries. The project report states that, given the complexity of the business environment in which SSIs operate, a strength, weakness, opportunities and threat (SWOT) analysis of the sector as a whole has been undertaken as a basis for reviewing the policy framework. As per this analysis, there are significant strengths that the SSI sector enjoys in terms of laying the foundation for bigger businesses, creating an export base and generating employment besides mobilising local resources and balanced industrial growth in the country. However, SSIs face certain problems which contribute to their weaknesses. These problems include credit constraints, marketing, low entry barriers, low technology, regulatory burden and managerial blinkers. With regard to the role of SSI associations, the report says that in the post liberalisation era, the associations themselves will need to re-learn new ways of collaborating and networking for the greater benefit of the SSI sector. Definitions Small Scale Service & Business Enterprises India An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million,Subject to the condition that the unit is not owned, controlled or subsidiary of any other industrial undertaking. Ancillary Industrial Undertakings The following requirements are to be complied with by an industrial undertaking for being regarded as ancillary industrial undertaking: - An industrial undertaking which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates, or the rendering of services and the undertaking supplies or renders or proposes to supply or render not less than 50 per cent of its production or services, as the case may be, to one or more other industrial undertakings and whose investment in fixed assets in plant and machinery whether held on ownership terms or on lease or on hire-purchase, does not exceed Rs 10 million. Tiny Enterprises Investment limit in plant and machinery in respect of tiny enterprises is Rs 2.5 million irrespective of location of the unit. Small Scale Service & Business (Industry related) Enterprises (SSSBEs) SSSBEs industry related service/ business enterprises with investment upto Rs 500,000 in fixed assets, excluding land and building, are called Small Scale Service/ Business Enterprises (SSSBEs). This limit has been raised to Rs.1 million w.e.f. September 2000. UK/International Laws Internet Legal Research Group A categorized index of more than 4000 select web sites in 238 nations, islands, and territories, as well as thousands of locally stored web pages, legal forms, and downloadable files, this site was established in 1995 to serve as a comprehensive resource of the information available on the Internet concerning law and the legal profession, with an emphasis on the United States of America. Designed for everyone, lay persons and legal scholars alike, it is quality controlled to include only the most substantive legal resources online. Patent Office-UK The official government body responsible for granting Intellectual Property (IP) rights in the United Kingdom (UK). Copyright Licensing Agency Ltd The Copyright Licensing Agency Ltd. (CLA) is a non profit-making company that licenses organisations for photocopying and scanning from magazines, books and journals.The Copyright Licensing Agency Ltd. (CLA) is the UK's Reproduction Rights Organisation and a member of the International Federation of Reproduction Rights Organisations (IFRRO) Chartered Institute of Patent Attorneys (CIPA) The Institute was founded in 1882 and was incorporated by Royal Charter in 1891. It represents virtually all the 1,500 registered patent attorneys in the UK whether they practice in industry or in private practice. Total membership is over 3,000 and includes trainee patent attorneys and other professionals with an interest in intellectual property matters.
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