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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.)
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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.
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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.
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