Criteria for small scale industries

Answer 1

Provisional Registration Certificate (PRC) : In order to take steps to set up an industry for a particular product at a particular place, one needs to Register it with the state Government's District or Tehsil Industries Centre (DIC / TIC etc), which issues a Provisional Registration certificate (PRC). To get the PRC, apply to the DIC etc in prescribed format with a Project Report / Project Profile. A 2 to 3 page project report / profile would suffice if it is a small SSI. It would highlight the background of the entrepreneur, plant & machinery to be bought & its value, details of where the product would sell & at what price, and the sources of funds including term loan, working capital loan, own equity, etc. For large SSI project, details like cash-flow chart will also be needed. The DIC etc will issue the PRC (normally, across the table) if the investment in plant & machinery is within Rs. 1 Crore, the product is not banned, and such an activity is declared as an industry (many services like IT, Hotels, Hospitals are included). The PRC is valid for 3-years, and can be extended if the entrepreneur cites unavoidable circumstances. The PRC is a prerequisite for getting other permissions - permission of local authority to set up the industry, Trade licence, Power, Pollution clearance, clearance of inspector of Boilers, Registration for commercial Taxes (State & Central sales tax) etc. The PRC is also needed for obtaining Term Loan & Working Capital. Permanent Registration Certificate (PMT) Having set up the unit and achieved Trial production, the entrepreneur is expected to take the Permanent registration (PMT). This is also issued by the DIC etc. To get PMT, apply in prescribed format along with copies of PRC, Power sanction, Municipal / Panchayat Licence, First Sale Invoice, Lease or rental agreement, Partnership Deed or Memorandum of Association (in case of limited co.), and a required affidavit. The PMT is normally issued either after inspection or without inspection subject to later verification.

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