Investment limit in small scale/ancillary industrial undertakings brought down
24 December 1999

The government has decided to reduce the investment limit in small scale/ancillary industrial undertakings for plant and machinery from Rs 3 crore to Rs 1 crore. The investment limits for tiny units would, however, continue to be at the level of Rs 25 lakh.

It may be noted that the government had earlier notified its decision to increase the investment limit on plant and machinery in the small scale/ancillary industrial undertakings, upto Rs 300 lakh in 1997. Subsequently, there have been requests from individual SSI units and SSI associations to reduce the investment limit on plant and machinery in respect to SSI/ancillary industrial undertakings.

The decision of the Government to stipulate the investment limit in fixed assets in plant and machinery in respect of small scale/ancillary industrial undertakings, whether held on ownership terms or on lease or on hire purchase, at the level of Rs 1 crore has been notified in the extraordinary issue of the Gazette of India dated 24 December 1999.