New Delhi, Dec 18 (UNI) The Union government today announced 100 per cent equity participation by both domestic and foreign investors in small scale industry (SSI), rescinding the earlier restriction of only 24 per cent participation.
This, an official statement said, would enable large industrial undertakings to set up small scale units with modern technology and management practices.
However, various schemes of assistance to the SSI sector would continue to be available to existing units, the statement added.
The enactment of the Micro, Small and Medium Enterprises Development Act, 2006 had removed restrictions to set up a small enterprise. Unlike the IDR Act,1951 which had limited equity participation to 24 per cent, the 2006 Act had removed it, paving the way for large industrial houses to enter the small sector.