What are Small Scale Undertakings? Are there any restrictions on investing in these undertakings?
An industrial undertaking is defined as a small scale unit where the investment in fixed assets (classified as in plant and machinery) does not exceed Rs. 10 million. Such units can manufacture any item including those notified as exclusively reserved for manufacture by the small scale sector. Foreign equity in such units is restricted to 24 percent of total equity. However, one can invest upto 100 percent in case the entire production is to be exported from India.
