Setting up a new small-scale unit involves several key steps:
1. Selecting an viable product or service idea through market research and ensuring there is opportunity.
2. Finalizing product details, production process, and machinery needs. This includes obtaining necessary approvals and financing.
3. Developing the unit by securing land or space, constructing buildings, and obtaining utility connections like power and water.
4. Registering the small-scale industrial unit with the state Directorate of Industries to obtain benefits and support services.
The document provides guidelines on each of these steps, including project selection, financing options, regulatory approvals and certifications required.
Generation and Screening of Project Ideas Vivek Goyal
It is contain all about Generation of ideas, How to monitoring the environment, corporate appraisal, Profit potential of industries, Porter Models, Scouting of projects ideas, preliminary Screening, Project rating Index, sources of Positive Net present Value, On being an Entrepreneur
Barring truly new ideas
Stimulation the flow of ideas
most people adopt somewhat casual and haphazard approach to the generation of project ideas. To stimulate the flow of ideas, the following are helpful: SWOT Analysis
Clear Articulation of Objectives
Forecasting a conductive climate
Business idea generation in today's economyacemindia
The topic has been divided into 3 major parts Impact of Pandemic CORONA on Indian Economy, Business Opportunity Identification, Business Opportunities, and need of the hour in today’s Indian Environment.
www.acem.edu.in
Just started your company and don't know what to do ?
- We have just the solution. We at B C Shetty & Co. specialize in providing a smooth base for companies to start from.
Generation and Screening of Project Ideas Vivek Goyal
It is contain all about Generation of ideas, How to monitoring the environment, corporate appraisal, Profit potential of industries, Porter Models, Scouting of projects ideas, preliminary Screening, Project rating Index, sources of Positive Net present Value, On being an Entrepreneur
Barring truly new ideas
Stimulation the flow of ideas
most people adopt somewhat casual and haphazard approach to the generation of project ideas. To stimulate the flow of ideas, the following are helpful: SWOT Analysis
Clear Articulation of Objectives
Forecasting a conductive climate
Business idea generation in today's economyacemindia
The topic has been divided into 3 major parts Impact of Pandemic CORONA on Indian Economy, Business Opportunity Identification, Business Opportunities, and need of the hour in today’s Indian Environment.
www.acem.edu.in
Just started your company and don't know what to do ?
- We have just the solution. We at B C Shetty & Co. specialize in providing a smooth base for companies to start from.
BSG: A case study in Innovation. Presented by Jurie Schoeman at the TCI Futur...Jurie Schoeman
I presented at the TCI SA 4th MOBILE FINANCIAL SERVICES OF THE FUTURE CONFERENCE on the 17th September 2014, in Sunninghill, Johannesburg. The topic was 'A case study in disruptive innovation - how to create mobile solutions that customers love using, that are good for business, and that can be built and evolved quickly and sustainably'
The Age of Opportunity: The New Era of Innovation for Business, Technology, a...Frank W. Spencer IV
A Kedge presentation explaining the new age of innovation and opportunity resulting from the postnormal shift, the 7 values of our new environment, and how some of those shifts are shaping our future.
200:1 - Do You Trust Your Mobile Security Odds? Blueboxer2014
On Wednesday, November 12, Bluebox Security hosted a webinar titled, “200:1 – Do You Trust Your Mobile Security Odds?” Jeff Forristal, CTO of Bluebox, shares real-life iOS and Android case studies revealing the amount of implicit trust, risk and insecurity found in today’s mobile devices, and what users can do about it.
Watch the recorded webinar in it’s entirety here:
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Startups are human institutions that are designed to deliver a new product or service under conditions of extreme uncertainty.
This report - part of the "Inspiring Route" project - analyses and understands the main themes related to Startup and The New Entrepreneurs through stories, examples, numbers, case studies
More than a buzz word or a trend. Omni-Channel retail is a real opportunity for businesses to adapt, scale-up and tap into their potential customer universe. A simple overview of the changing (R)etail landscape, consumer, purchase trends and what businesses need to align to go the Omni-channel way.
A cross-industry inspiration set for brainstorms, new business development and strategy sessions. Note this a preview of what we make customised for our clients.
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This power point slide is all about the contemporary trends in quality engineering and management.every one should have a knowledge about the quality engineering in a 21st century.quality gives you more success in life.i had been giving you some techniques use in quality engineering program for a business purpose.
CorporatEdge has organized a seminar on ‘Improving Quality, Preventing Recall and Product Liability’. The seminar covers topics such as: How to prevent recalls, Document Control, Design & Product Safety reviews, Establishing a Recall Team, How to be Recall ready, etc.The seminar will be conducted by Randall Goodden of Randall Goodden International, USA. He is a worldwide authority on the topic and has written 3 very well received books on the topic and conducts seminars all over the world exclusively on this topic.
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What is Strategy Management ?
Strategy is to prepare systematically plans for the future in order to interact to new emerging trends and changes in the wider scope of the company with special attention to avoid rigidity, because the past is not equal to the future.
“Wide scope of the company” : Companies are open systems : input side for resource seeking and output side for market seeking (system dynamics!)
“Avoid rigidity” : New events, new knowledge makes that the original strategy is no longer up to date
In general, strategy arises incrementally: “What are realistic objectives with current characteristics of the context and future trends?”
Predictability is key for making strategic plans and investment decisions in the long run. Planning, with hard data and soft data (tacit knowledge), is easier in stable environment. However in the long run a small change in wide scope of the company could escalate dramatically due to system dynamics.
Besides predictability, there is also legacy: most big companies have legacy to carry on while small companies (e.g. Fintech) start from a clean sheet and are flexible, focused, motivated and can “do more with less”.
For building and accumulating a “strategic competitive advantage (SCA)” a consistent flow of investment is needed in order to obtain desired level of accumulation.
A “strategic competitive advantage (SCA)” can be a patent (intellectual property), a customer install base, a certain image or branding in the mind of the customers, a new disruptive or innovative technology, … and is the result of a strategic decision in investing a consistent flow and stock.
Stock – flow diagram : “Success breeds success”
For example: (1) a consistent investment in R&D will give a bigger stock of knowledge/competence than the double investment in half of the time. So speeding up the investments will not give the same stock at a certain moment. (2) a consistent investment in advertising will give a bigger stock of reputation/image/branding than the double investment in half of the time.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
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LA HUG - Video Testimonials with Chynna Morgan - June 2024
Guidelines
1. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
Guidelines to set up a new
Small Scale Unit
Source: www.smallindustryindia.com
2. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
Table of Contents
1. PROJECT SELECTION ......................................................................................................................... 3
2. MAKING A PRODUCT CHOICE ......................................................................................................... 4
3. TECHNOLOGY AND MACHINERY................................................................................................... 5
3.1 PROCESS SELECTION .......................................................................................................................... 5
3.2 NSIC PROCEDURES FOR HIRE PURCHASE OF MACHINERY ................................................................ 6
4. ARRANGING FINANCE........................................................................................................................ 8
5. UNIT DEVELOPMENT.......................................................................................................................... 9
5.1 CONSTRUCTION OF BUILDING............................................................................................................... 9
5.2 GETTING THE UTILITY CONNECTIONS ................................................................................................ 10
5.3 GETTING 3M'S RIGHT ......................................................................................................................... 10
Men ..................................................................................................................................................... 10
Machinery ........................................................................................................................................... 10
Materials............................................................................................................................................. 10
6. SSI REGISTRATION............................................................................................................................ 11
6.1 REGISTERING YOUR SSI UNIT............................................................................................................. 11
6.2 BENEFITS OF REGISTERING................................................................................................................. 11
6.3 OBJECTIVES OF THE REGISTRATION SCHEME...................................................................................... 12
6.4 FEATURES OF THE SCHEME................................................................................................................. 12
6.5 PROVISIONAL REGISTRATION CERTIFICATE (PRC)............................................................................. 12
6.6 PERMANENT REGISTRATION CERTIFICATE ......................................................................................... 12
6.7 PROCEDURE FOR REGISTRATION......................................................................................................... 13
6.8 DE-REGISTRATION.............................................................................................................................. 13
7. APPROVALS.......................................................................................................................................... 14
Exemption from Compulsory License ................................................................................................. 14
8. QUALITY CERTIFICATION.............................................................................................................. 14
3. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
"Setting up a new unit is a big challenge."
The overriding reason for anyone to think of establishing a SSI unit can be summarized
in one word - OPPORTUNITY. If one can see an opportunity to provide a product or
service in a manner to generate sufficient surplus, then one way is to start up a SSI unit.
This is all the more true if one believes in the maxim, "Small is Beautiful"
Opportunities emerge out of ideas that one comes across by thinking about lives of
friends and neighbors. This can generate ideas about products and services that can make
things easier, and improve quality of life of people.
1. Project Selection
It all begins with an Idea
The overriding reason for anyone to think of establishing a SSI unit can be
summarized in one word – opportunity,an opportunity to provide a product or service,
which can generate sufficient surplus. This is all the more true if one is a believer in
the maxim, "Small is Beautiful".
However, ideas need to be filtered through a multi-layer sieve. This model is shown
in the following flow:
- Does the idea fire up your motivation?
- Is it a viable business proposition in your area?
- Does it match the needs of your clientele?
- Check it out with basic market research
- Test it out at market place
- Consult with the experts
- Look out for competition in the field
- Is it a sunrise industry?
- Your business opportunity
- Project conceptualization
Once the ideas are screened and a viable business opportunity emerges the project has
to be conceptualized in all its dimensions. The 4 Ps of Project Conception is:
- Product (Shape, Size and Nature)
- Process (Technology to produce the product)
- Place (Location of Plant)
- Partner (Technological of Financial Collaborator)
4. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
2. Making a Product Choice
In a project conceptualization stage while making a product choice following factors
are related to product need to be considered:
- Product Line - Depth, Width
- Packaging
- Branding
- Warranties
- After Sales Service
Some other factors that one should consider while finalising the product choice are:
- Ease of availability of raw-material
- Process Technology
- Accessibility to the market
- Incentive and support from Government
Market information is also important for product selection. Products, which are likely
to have a number of players in the market, are best avoided. Some such products in
the recent past have been plastic footwear, audio cassettes, disposable gloves and bulk
drugs.
In case the entrepreneur is looking for a product, which has export potential, the
following additional questions need to be asked:
- What should be the contents of export-product portfolio?
- What are the special requirements for packaging if one has to export the
products?
- What product adaptations are needed to be made for exporting a product to a
specific country?
- Are any WTO conditionalities involved e.g. "child labor free", ISO 9000
certified, GMP followed etc.
The development of export-product portfolio can be done by considering 4
parameters viz.
- External demand conditions
- Internal supply capability
- Complexity of marketing tasks
- Amount of investment required to penetrate the market
5. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
Analysis can be conducted using this four dimensional model. The obvious choice is
a product which scores a high rating on first two parameters and low rating on last
two parameters.
EXIM (Export Import Bank of India) Bank has also developed an excellent model to
conduct the export-product portfolio analysis based on three parameters viz.
- Supply Capability in Product Group
- Domestic Environment
- Export Market Attractiveness
This analysis gives rise to product groups with high potential or low potential.
With regard to special packaging requirements one has to be careful about laws of the
country one is exporting to. For instance, while exporting to Australia, wooden-
packaging cannot be done.
Product adaptations for country's specific needs look into things like whether voltage
supply is 220V or 110V for electric appliances and for automobiles whether left-hand
drive or right-hand drive is appropriate.
It has now become important to understand the implications of the various
agreements which form part of WTO.
Once the product is finalized, choices of process technology emerge.
3. Technology and Machinery
3.1 Process Selection
Choices of process technology emerge once the product is finalised. For some
complex products, process know how has to be imported. In such cases agreements
for technology transfer should be made with due care to safeguard interest. A lot of
appropriate technology is being developed at CSIR and Defense Research Labs and
some of this technology can now be bought. Indigenously developed process know-
how has intrinsic benefits such as appropriateness and relative inexpensiveness.
While checking out on a process technology, the following things need to be
considered with utmost care:
- Whether process requires very high level of skilled workers or complex
machines?
- Whether process requires large quantities of water and/or power?
6. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
- Whether any process or product patent needs to be honored while utilizing
the selected process technology.
- Any special pollution or environmental regulations.
- Finally, the appropriateness to the Indian environment and conditions.
Machinery and equipment
One of the major deficiencies in the small industry scenario is the prevalence of
outdated production and management methods hindering the efficient operation of
small-scale units. It was also found that the most important reason for the reluctance
of the small industrialists to install modern machinery and equipment was the lack of
investible funds. The main objective of National Small Industries Corporation (NSIC)
is to provide machinery and equipment to small industrial units offering them long
repayment period with moderate rate of interest.
3.2 NSIC procedures for hire purchase of machinery
- The hire purchase application is to be made on the prescribed form.
- The Director of Industries of the State under whose jurisdiction the applicant
falls, forwards the application to the head office of the NSIC at Delhi with his
recommendation and comments.
- All applications for indigenous or imported machines are considered by
acceptance committees comprising of the representatives of the Chief Controller
of Imports, Development Commissioner, Small Scale Industries and other
concerned departments.
- Decision of these committees is conveyed to the parties concerned with copies
to the regional offices of the NSIC and the concerned Directorate of Industries.
- Once all these formalities are completed by the hirer, instructions are sent to the
suppliers to dispatch the consignment (duly insured for transit risk) to the hirer
and to send the R/R or C/R as the case may be, to the regional office
- The NSIC after ensuring that all dues have been paid by the hirer, releases the
R/R or C/R to him for taking delivery of the machines.
- In case of imported machines, the procedure is slightly different in as much as
the shipping documents are sent to the clearing agents for clearing the
consignment from the Customs and dispatching it to the hirer.
Value of machines that can be supplied
Rs. 7.5 Lacs, F.O.R. or landed cost as the case may be.
Earnest Money
5% or 10% of the value of machinery depending on whether the equipment is
imported or indigenous. In the case of furnaces and a few other items of equipment,
the rate of earnest money is different. Interest 9 per cent per annum with a rebate of 2
7. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
per cent on prompt payment. This interest is calculated on the value of machines
outstanding after deducting payment of earnest money.
Administrative Charge
2 per cent on the sales value of machines and its recovery by the NSIC is spread over
the total installment period.
Period of Repayment
The value of the machines, after deducting the earnest money received, called the
Balance Value, is payable alongwith interest and administrative charge in 7 years.
- The first installment is payable after one year and six months from the delivery of
machines
- The second and subsequent installment are payable half-yearly thereafter.
Gestation Period
In case of certain type of machines which become operative immediately on
installation in the service sector industries and job order establishment, a gestation
period of only 6 months shall be allowed both to the new and existing units.
A rebate of 2% per annum is allowed on the interest rates, in case an installment is
paid on or before the due date.
In case the payment of installment is not made within one month of the specified due
date, interest @ 2% per annum over and above the normal rate is charged on the
defaulted amount from the date of default to the date of actual payment. Remission in
interests is allowed in case one or more than one installment is paid in advance of the
due date(s).
Now the Place and Right Partner has to be selected and Project Report has to be
prepared.
8. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
4. Arranging Finance
No SSI unit can take off without monetary support. This need for finance can be
classified into following types:
- Long and medium term loans
- Short term or working capital requirements
- Risk Capital
- Seed Capital/Marginal Money
- Bridge loans
Financial assistance in India for SSI units is available from a variety of institutions.
The important ones are
- SIDBI: Small Industries Development Bank of India (refinance and direct
lending)
- SFCs: State level Financial Corporation e.g. Delhi Financial Corporation.
- NSIC: National Small Industry Corporation.
- Small Industry Development Corporations of various states.
- Commercial/Co-operative Banks.
- DIC: District Industry Centre.
Long and medium term loans are provided by State Financial Corporations, SIDBI
and State Industrial Development Corporations. Banks also finance term loans. This
type of financing is needed to fund purchase of land, construction of factory
building/shed and for purchase of machinery and equipment. Term loans are secured
against mortgage of assets such as land, building, machines, equipment and other
stocks. The short-term loans are required for working capital requirements, which
fund the purchase of raw material and consumable, payment of wages and other
immediate manufacturing and administrative expenses. Such loans are generally
available from commercial banks.
There is, however, a SINGLE WINDOW SCHEME, for SSI units. Under the scheme,
one agency, either the bank or the financial institution, funds both the term loan and
working capital requirements. This scheme applies to all SSI projects with project
cost upto Rs. 5 million. The working capital loan is generally secured against
- Pledging of stocks, raw materials and finished goods,
- Advances against work-in-progress (WIP),
- Advance against bills.
9. Milagrow Business and Knowledge Solutions
Nurturing Ideas, Enabling Enterprise
For loans from financial institutions and commercial banks a formal application needs
to be made. The details of documentation that need to be provided with the loan
application are shown here.
- Documentation for Loan Application
- Balance Sheet and Profit Loss Statement for last three consecutive years of
firms owned by promoters
- Income Tax Assessment Certificates of Partners/Directors
- Proof of Possession of Land/Building
- Architects estimate for construction cost
- Partnership deed/Memorandum and Articles of Associations of Company.
- Project Report
- Budgetary Quotations of Plant and Machinery
A sanction or rejection letter is issued by bank after its assessment of the application.
After receiving the sanction letter applicants need to indicate in writing their
acceptance of terms and conditions laid down by FI/ Banks.
Subsequent loan is disbursed according to the phased implementation of the project.
In today's environment there are other choices apart from commercial banks and
Government owned financial institutions. These options include venture capital funds
and non-government finance companies.
5. Unit Development
After deciding the issues of product and process, the next important question is where to
set the unit up?
For many tiny units and service-based units, the home is perhaps the best starting point.
Setting up an establishment is much more than putting a signboard up and waiting for
customers to walk in. It requires negotiating a favourable plot or shed purchase,
organising for proper construction of building, design of interiors and finding good deals
for equipment and machinery.
5.1 Construction of Building
Once an industrial plot for the unit is secured, then the next job is that of finding a
suitable architect. Design of factory building has to be in consonance with the type of
industry and have an appropriate plant layout.
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An architect's estimate of building construction is essential for loan applications.
Further, architect's certificate for money spent on building is needed for disbursement
of loan.
5.2 Getting the Utility Connections
Among the utilities of prime importance are power and water. In many cases getting
power connection causes delay in setting up of plant. Therefore it is imperative to
commence work on these aspects with diligent follow up. Power connections are
generally of either LT (Low Tension) or HT (High-tension) type. If connected load is
upto 75 HP, LT connection is provided. For connected loads of 130 HP or higher only
HT connection is provided.
A formal application needs to be made in a specified form to the state electricity
board. An electrical inspector is deputed for evaluation of application to factory site,
after which the load is sanctioned. In areas of power shortage, it is advisable to
augment the power supply with a captive generating set.
Water connection is also obtained likewise by applying in advance in formal forms.
The water supply can be augmented by installation of tubewell.
5.3 Getting 3M's Right
Men
Projections for manpower and staffing are made in the project report. However it is
necessary to time the induction of manpower in a planned manner. The engineers and
operatives must be available before the installation of the machinery.
Machinery
Choosing and ordering of right machinery is also of paramount importance. In many
cases technology or process provides us with specifications which is not provided,
then an extensive techno-economic survey of machinery and equipment available
must be carried out. International trade fairs and engineering fairs are good places to
look at available options. The entrepreneur must also consult experts, dealers /
suppliers as well as users, prior to making a selection of equipment and machinery.
The advice of DIC, SISI and NSIC can also be sought.
Materials
Materials procurement and planning are critical to success, of a start-up with a SSI
unit. Inventory management can lead to manageable cash flow situations; otherwise if
too much is ordered too soon considerable amount of working capital gets locked up.
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On the other hand, non-availability may result in production hold-ups, and idle
machine and manpower. For essential imported raw material whose lead-time is large
proper planning is all the more essential.
6. SSI Registration
Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery
of less than Rs. 10 million) should seek registration with the Director of Industries of the
concerned State Government.
6.1 Registering your SSI Unit
The main purpose of Registration is to maintain statistics and maintain a roll of such
units for the purposes of providing incentives and support services.
States have generally adopted the uniform registration procedures as per the
guidelines. However, there may be some modifications done by States. It must be
noted that small industries is basically a state subject. States use the same registration
scheme for implementing their own policies. It is possible that some states may have
a 'SIDO registration scheme' and a 'State registration scheme'.
6.2 Benefits of Registering
The registration scheme has no statutory basis. Units would normally get registered to
avail some benefits, incentives or support given either by the Central or State Govt.
The regime of incentives offered by the Centre generally contains the following:
- Credit prescription (Priority sector lending), differential rates of interest etc.
- Excise Exemption Scheme
- Exemption under Direct Tax Laws.
- Statutory support such as reservation and the Interest on Delayed Payments Act.
(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law have
incorporated the word SSI in their exemption notifications. Though in many cases
they may define it differently. However, generally the registration certificate issued
by the registering authority is seen as proof of being SSI).
States/UTs have their own package of facilities and incentives for small scale. They
relate to development of industrial estates, tax subsidies, power tariff subsidies,
capital investment subsidies and other support. Both the Centre and the State, whether
under law or otherwise, target their incentives and support packages generally to units
registered with them.
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6.3 Objectives of the Registration Scheme
They are summarized as follows:
To enumerate and maintain a roll of small industries to which the package of
incentives and support are targeted.
To provide a certificate enabling the units to avail statutory benefits mainly in
terms of protection.
To serve the purpose of collection of statistics.
To create nodal centres at the Centre, State and District levels to promote SSI.
6.4 Features of the Scheme
Features of the scheme are as follows:
DIC is the primary registering centre
Registration is voluntary and not compulsory.
Two types of registration is done in all States. First a provisional registration
certificate is given. And after commencement of production, a permanent
registration certificate is given.
PRC is normally valid for 5 years and permanent registration is given in
perpetuity.
6.5 Provisional Registration Certificate (PRC)
This is given for the pre-operative period and enables the units to obtain the
term loans and working capital from financial institutions/banks under priority
sector lending.
Obtain facilities for accommodation, land, other approvals etc.
Obtain various necessary NOCs and clearances from regulatory bodies such as
Pollution Control Board, Labor Regulations etc.
6.6 Permanent Registration Certificate
Enables the unit to get the following incentives/concessions:
Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.
Incentives and concessions in power tariff etc.
Price and purchase preference for goods produced.
Availability of raw material depending on existing policy.
Permanent registration of tiny units should be renewed after 5 years.
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6.7 Procedure for Registration
Features of the present procedures are as follows:
A unit can apply for PRC for any item that does not require industrial license
which means items listed in Schedule-III and items not listed in Schedule-I or
Schedule-II of the licensing Exemption Notification. Units employing less
than 50/100 workers with/without power can apply for registration even for
those items included in Schedule-II.
Unit applies for PRC in prescribed application form. No field enquiry is done
and PRC is issued.
PRC is valid for five years. If the entrepreneur is unable to set up the unit in
this period, he can apply afresh at the end of five years period.
Once the unit commences production, it has to apply for permanent
registration on the prescribed form.
The following form basis of evaluation:
The unit has obtained all necessary clearances whether statutory or
administrative. e.g. drug license under drug control order, NOC from
Pollution Control Board, if required etc.
Unit does not violate any locational restrictions in force, at the time of
evaluation.
Value of plant and machinery is within prescribed limits.
Unit is not owned, controlled or subsidiary of any other industrial undertaking
as per notification.
6.8 De-Registration
A Small Scale Unit can violate the regulations in the following ways which will make
it liable for de-registration:
It crosses the investment limits.
It starts manufacturing any new item or items that require an industrial license
or other kind of statutory license.
It does not satisfy the condition of being owned, controlled or being a
subsidiary of any other industrial undertaking.
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7. Approvals
Every SSI unit has to comply with various regulations in force. These include
regulatory, taxation, environmental and certain product specific clearances. This
section looks into the methodology of obtaining these approvals and clearances.
Exemption from Compulsory License
Licensing in the Industries sector is governed by the licensing exemption notification
issued by Govt. of India in July 25 1991 under the Industries (Development and
Regulation) Act, 1951. In SSI, there are virtually no licensing restrictions. No
industrial license is required except in case of 6 product groups included in
compulsory licensing (these products groups mainly cover products that can only be
made in large sector.)
8. Quality Certification
Quality certification has become extremely important in competitive markets and
especially in gaining foothold in exports. To avail the certification of ISO-9000, 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. However, as a paradigm shift, SSI must make 'Quality' a way of life.
It has been decided to push the quality upgradation programme in the SSI Sector in a
big way.A scheme has been launched to give financial incentive to those SSI units
who acquire ISO-9000 certification, by reimbursing 75% of their costs of obtaining
certification, subject to a maximum of Rs. 0.75 lacs per unit.
In order to promote modernisation and technology upgradation in SSI, the units are
assisted in improving the quality of their products.
A new scheme has been launched to assist SSI units in obtaining ISO-9000 or an
equivalent international quality standard. Subject to an upper ceiling of Rs. 075 lacs,
each unit is given financial assistance equal to 75% of the costs incurred in acquiring
the quality standard.
The SSI units are also encouraged to participate in quality awareness and learning
programmes organised specially for their benefit.
But if a small-scale unit employs less than 50/100 workers with/without power then it
would not require a license from the Govt. 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
any restriction. The units are, of course, subject to the locational/land use and zoning
restrictions in force under the local laws.