Question

In the Small Sector Industrial Policy 1991, the investment limit in plant and machinery of ancillary units is ______.

• A. Rs. 35 lakhs
• B. Rs. 50 lakhs
• C. Rs. 60 lakhs
• D. Rs. 75 lakhs

Answer 1

The correct option is D Rs. 75 lakhs

Industrial Policy Statement, 1991 raised the investment ceiling in plant and machinery to Rs. 60 lakh for small-scale units and Rs. 75 lakh for ancillary units and for the “tiny” units the limit was raised from Rs. 2 lakh to Rs. 5 lakh. Small scale industries were also given extra incentives for export.

Hence, option (D) is the correct answer.