Question

How would you differentiate between an ancillary unit and a tiny unit?

Answer 1

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.