What is the Criterion for Small Units?
Criterion for small units Investment in fixed assets in plant and machinery has been criterion to determine the scale of the industrial sector of unit. It is pertinent that investment in other assets such as administrative building, lands and other fixed assets is not taken into account. The traditional measurement of size by the number of employees is not adopted the small scale units fall broadly under four categories, namely:- Small Scale Industrial Units, ancillary industrial units, Tiny Units, Service Units. Small Scale Industrial Units In the case of small scale industrial units the investment in fixed assets, in plant and machinery, whether held on ownership terms or on lease or by hire purchase does not exceed Rs.60 Lakhs. In order to enable small scale industries to play an important role in the total export effort such as small scale units which undertake to export at lease 30 per cent of the annual production by the third year are permitted to step up their investment in pla
