How would you differentiate between an ancillary and a tiny unit?
How would you differentiate between an ancillary and a tiny unit?
Basis of difference
Ancillary industrial units
Tiny units
Definition
Industrial units that have to supply a minimum of 50% of their production to their parent industries are termed ancillary industrial units.
Industries that have a maximum investment of Rs. 25 lakh in their plant and machinery are regarded as tiny industrial units.
Investment limit
The maximum level of investment is Rs. 1 crore.
The maximum level of investment is Rs. 25 lakh.
Obligation
Such units have to supply at least 50% of their production to their parent industries.
No such obligations.
Examples
Industries engaged in the production of machine parts, tools and other intermediate products.
Business units such as small shops, boutiques, STD (subscriber trunk dialling) booths and photocopy centres.
|
Basis of difference |
Ancillary industrial units |
Tiny units |
|
Definition |
Industrial units that have to supply a minimum of 50% of their production to their parent industries are termed ancillary industrial units. |
Industries that have a maximum investment of Rs. 25 lakh in their plant and machinery are regarded as tiny industrial units. |
|
Investment limit |
The maximum level of investment is Rs. 1 crore. |
The maximum level of investment is Rs. 25 lakh. |
|
Obligation |
Such units have to supply at least 50% of their production to their parent industries. |
No such obligations. |
|
Examples |
Industries engaged in the production of machine parts, tools and other intermediate products. |
Business units such as small shops, boutiques, STD (subscriber trunk dialling) booths and photocopy centres. |
