Objectives of Third Census
There are three main objectives sought to be achieved through
Third Census. The first one is to update the frame of registered
SSI units. The updated frame with adequate ancillary information
on various classificatory characteristics will help in conducting
regular surveys to understand structural changes in the SSI
sector, which will lead to policy correctives. Another purpose
of the frame is to help in compilation of Index of Industrial
Production (IIP) for SSI sector. The second objective of Third
Census is to identify sick and incipiently sick units with the
reasons and also collect other information useful for policy
formulation.
- Unregistered SSI sector was not surveyed in the first two
Censuses. The Unregistered SSI sector comprises all those
units which are eligible to be registered, but are not registered
because the registration is voluntary. No database is available
at present on this sector. The Economic Censuses conducted
by the Central Statistical Organisation so far did not throw
any light on this sector. Hence, the third objective emanates
from the decision of the Steering Committee to cover the unregistered
SSI sector through a Sample Survey in the Third Census.
Coverage of Third Census
- The Third Census will cover the registered SSI sector through
complete enumeration and the unregistered SSI sector through
a sample survey in all the States/ UTs. All the SIDO units
permanently registered up to 31-3-2001 will be covered in
the registered SSI sector. The SIDO units not registered till
31-3-2001 will constitute the universe for unregistered SSI
sector. Thus the Unregistered SSI sector for the purpose of
Third Census can be defined as the set of all those units
(SSIs, ancillaries & SSSBEs), which are eligible to be registered
as on 31-3-2001, but are not permanently registered because
the registration is voluntary. This includes those units,
which were temporarily registered on or before 31-3-2001provided
they were not permanently registered till 31-3-2001. The coverage
of both the components together will only give a picture of
the total SSI sector. If the two components are surveyed with
a common reference period, it will give benchmark estimates
on different characteristics of the SSI sector as a whole
at different time points. Hence, it has been decided to have
the financial year 2001-2002 as the common reference period.
Sampling Design for the Sample Survey
of Unregistered SSI sector
- A sample size of 2,16,000 units has been fixed for the
survey on unregistered SSI sector at all India level, which
is expected to estimate the population parameters with a permissible
margin of error of 2-3 % with 95 % probability. At State/
UT level, the sample size of 2,16,00 fixed at all India level
has been allocated in such a way that the margin of error
would be reasonable in all the major States.
- A two-stage stratified sampling design is found to be suitable
for the survey. The first stage units (FSUs) will be the census
villages in rural sector and Urban Frame Survey (UFS) blocks
in urban sector. The UFS blocks are compact areal units with
distinct boundaries having a population of 600-800 on the
average. These are carved out in all the towns by the National
Sample Survey Organisation (Field Operations Division). The
second stage units (SSUs) are enterprises falling in the unregistered
SSI sector.
- The data on Economic Census 1998 furnished by the Central
Statistical Organisation was used for stratification. From
the Economic Census (EC) data, at the first stage the non-agricultural
enterprises and establishments having industry codes (as per
NIC 87) relevant for SSI sector were extracted and at the
second stage units belonging to public sector and those operating
without fixed premises were eliminated. The EC data-file after
completing these two stages has been used for preparing size-class
distribution at State level separately for rural and urban
sectors. The size is the number of enterprises and the size
classes are 0, 1 to 10, 11 to 50, 51 to 200 and 201 & above.
These size classes are termed as Stratum 1, Stratum 2, Stratum
3 Stratum 4 and Stratum 5 respectively. The FSUs falling in
Stratum 5 have been earmarked for complete enumeration and
the maximum sample size in each FSU (i.e., no. of SSUs) in
this size class is fixed at 20. In respect of the other strata,
the maximum sample size is fixed at 10. A minimum of 2 FSUs
in each stratum (subject to availability) has also been fixed.
The total sample size of 2,16,000 has been allocated to the
strata based on these considerations and the number of FSUs
to be selected in each stratum has also been computed accordingly.
- The list of FSUs (villages and urban blocks to be surveyed)
in each stratum has been selected circular systematically
with equal probability without replacement after arranging
the FSUs in the stratum in the descending order of no. of
enterprises as found in EC data-file.
- In each FSU, after listing the non-agricultural enterprises
operating within fixed premises, the units falling in unregistered
SSI sector have to be identified through the process of elimination
in a phased manner as prescribed in this mannual. These will
be separated into two sub-strata, viz., SSIs and SSSBEs. The
allocation of total sample size (10 for stratum 1 to 4 and
20 for stratum 5) has to be done proportionately to the two
sub-strata, subject to a minimum of 2 in each sub-stratum.
Formats for Data Collection
- There are four formats to be used by enumerators for data
collection. These are Formats I, III, IV & V. In addition,
there is another format, viz., Format II which is, by and
large, a summary of Format IV. These formats are given at
Annex. Computerised Data Preparation will be done only in
respect of Formats I, II & III. However, Formats IV and V
will be used for data validation purposes. The list of the
formats is given below.
|
S. No.
|
Format No.
|
Description of the format
|
Remarks
|
|
1.
|
I
|
Format for complete enumeration of registered SSI units
|
This will be filled in respect of all the SSIs & SSSBEs
registered up to 31-3-2001.
|
|
2.
|
II
|
Format for summarising the listing of unregistered SSI
units
|
This will give summary information of the unregistered
SSI sector, compiled on the basis of entries in Format
- IV.
|
|
3.
|
III
|
Format for the survey of unregistered SSI units
|
The unregistered SSIs & SSSBEs selected for survey will
be known from the entries in Format IV. Data will be collected
in this format from the selected units.
|
|
4.
|
IV
|
Working Sheet for listing of unregistered SSI units operating
in a fixed premises
|
The list of unregistered SSI units will be prepared and
the required no. of units will be selected on the basis
of methodology prescribed.
|
|
5.
|
V
|
Working Sheet to calculate gross output and net worth
|
This will be used for each unit surveyed (both registered
and unregistered) to compute gross output and net worth
and the values arrived at, will be copied against the
respective items in Formats I or III.
|
Concepts and Definitions
- The enumerators have to understand various concepts, which
are to be used by them in data collection. Some of the definitions
to be used in Third Census are given below.
Small Scale Industrial Unit (SSI): An industrial undertaking
in which the investment in fixed assets in plant and machinery,
whether held on ownership terms, or on lease, or by hire purchase,
does not exceed Rs. 100 lakhs as on 31-3-2001 is to be treated
as a Small Scale Industrial Unit.
Registered SSIs : All SSIs registered permanently with
State Directorates of Industries/ District Industries Centres
as on 31-3-2001 are called registered SSIs. Some SSI units
were earlier registered when the upper ceiling limit in plant
and machinery was Rs. 300 lakhs. These units are also to be
treated as registered SSIs.
Unregistered SSIs : All the SSIs not registered permanently
with State Directorates of Industries/ District Industries
Centres on or before 31-3-2001 are called unregistered SSIs.
SSIs that are temporarily registered on or before 31-3-2001
as also the units that are temporarily or permanently registered
after 31-3-2001 till the date of survey will be treated as
unregistered SSIs for the purpose of this survey.
Small Scale Service & Business (industry related) Enterprises
(SSSBEs): Industry related service & business related
enterprises with investment in fixed assets, excluding land
and building, up to Rs. 10 lakhs, irrespective of location
as on 31-3-2001 are to be treated as SSSBEs. The illustrative
list of services (effective as on 31-3-2001) covered under
the definition of SSSBEs is given below.
- Advertising Agencies
- Marketing Consultancy
- Industrial Consultancy
- Equipment Rental and Leasing
- Typing Centres
- Photocopying Centres (Zeroxing)
- Industrial Photography
- Industrial R & D Labs.
- Industrial Testing Labs.
- Desk Top publishing
- Internet Browsing/Setting up of Cyber Cafes
- Auto Repair, services and garages
- Documentary Films on themes like Family Planning, Social
forestry, energy conservation and commercial advertising
- Laboratories engaged in testing of raw materials, finished
products
- "Servicing Industry" Undertakings engaged in maintenance,
repair, testing or electronic/electrical equipment/instruments
i.e. measuring/control instruments servicing of all types
of vehicles and machinery of any description including
televisions, tape recorders, VCRs, Radios, Transformers,
Motors, Watches, etc.v
- Laundry and Dry Cleaning
- X-Ray Clinic
- Tailoring
- Servicing of agriculture farm equipment e.g. Tractor,
Pump, Rig, Boring Machines etc.
- Weigh Bridge
- Photographic Lab
- Blue Printing and enlargement of drawing/designs facilities
- ISD/STD Booths
- Teleprinter/Fax Services
- Sub-contracting Exchanges (SCXs) established by Industry
Associations.
- EDP Institutes established by Voluntary Associations/Non-Government
Organisations
- Coloured or Black and White Studios equipped with processing
laboratory.
- Ropeways in hilly areas.
- Installation and operation of Cable TV Network:
- Operating EPABX under franchises
- Beauty Parlours and Creches
Activities not recognised as SSIs and SSSBEs : The
following activities are not recognised as SSIs and SSSBEs.
- Transportation
- Storage (except cold storage)
- Retail/ Wholesale Trade Establishments
- General Merchandized Stores
- Sale Outlets for industrial components
- Health services including pathological laboratories
- Legal Services
- Educational Services
- Social Services
- Hotels
Registered SSSBEs : All SSSBEs registered with State
Directorates of Industries/ District Industries Centres as
on 31-3-2001 are called registered SSSBEs.
Unregistered SSSBEs : All the SSSBEs not registered
permanently with State Directorates of Industries/ District
Industries Centres on or before 31-3-2001 are called unregistered
SSSBEs.
Unregistered SSI sector : All the Unregistered SSIs
and the Unregistered SSSBEs constitute Unregistered SSI sector.
SSIs and SSSBEs that are temporarily registered on or before
31-3-2001 as also the units that are temporarily or permanently
registered after 31-3-2001 till the date of survey will be
treated as unregistered for the purpose of this survey.
Ancillary unit: This is a sub-class of SSIs. An industrial
undertaking which is engaged or is proposed to be engaged
in - (i) the manufacture of parts, components, sub-assemblies,
toolings or intermediates; or (ii) rendering of services,
or supplying or rendering not less than fifty percent of its
production or its total services, as the case may be, to other
units for production of other articles and whose investment
in fixed assets in plant and machinery, whether held on ownership
terms or on lease or on hire purchase, does not exceed Rs.
one crore as on 31-3-2001 is to be treated as an ancillary
enterprise.
Gross output : It comprises total ex-factory value
of products and by-products manufactured as well as other
receipts such as receipts from non-industrial services rendered
to others, work done for others on material supplied by them,
value of electricity produced and sold, sale value of goods
sold in the same condition as purchased, addition in stock
of semi-finished goods and own construction.
Net Worth : The difference of current assets and current
liabilities in each year gives net worth for that year.
Working Unit: An SSI or a SSSBE which has worked at
least for one day during the reference period will be treated
as a working unit. Otherwise, it will be treated as a closed
unit.
Economic Activity: Any activity resulting in production
of goods and services that adds value to national product
is considered as Economic Activity. Such activity includes
production of all goods and services for market i.e., production
for pay or profit and the production of primary commodities
for own consumption and own account production of fixed assets,
among the non-market activities. The activities like prostitution,
begging, smuggling etc. may result in earnings, but will not
by convention be considered as economic activities.
Fixed Assets: Fixed assets are assets held for the
purpose of producing or providing goods and services such
as land, building, plant & machinery, transport equipments,
tools and other assets (new or used) that have a normal economic
life of more than one year from the date of acquisition through
out-right purchase/ hire purchase/ loans/ mortgage/ construction
regardless of their use. They are not held for resale in the
normal course of entrepreneurial activities. Full value of
assets taken on hire purchase/ installments (whether fully
paid or not) excluding interest should be considered. Intangible
assets like goodwill etc. are excluded. Advance payment for
fixed assets not yet received should not be considered. The
information to be recorded here is by physical approach. Fixed
assets owned but rented out are not to be accounted for. Additions
to the fixed assets during the reference period are to be
included. For the unit, which has not yet started providing
service and is engaged in the process of installation, fixed
assets will be duly considered.
Plant and Machinery: Plant is generally the name given
to an assembly of machinery/ equipment/ devices installed
for the operation of entrepreneurial activities. Machinery
means an implement or mechanical device used in the entrepreneurial
activities.
Employment: This relates to all persons engaged by
the unit whether for wages or not, in the work connected directly
or indirectly with the entrepreneurial activity and includes
all administrative, technical and clerical staff as also labour
in production of capital assets for factory’s own use. It
also includes all working proprietors and their family members
who are actively engaged in the work of the unit even without
any pay and the unpaid members of the co-operative societies
who work in or for the unit in any direct and productive capacity.
Outstanding loan: Any borrowing in cash or kind to
be repaid is to be treated as loan. The purpose of the loan
should be for the use of the enterprise only. Outstanding
loan is the amount of loan taken including interest that is
outstanding as on the closing day of the reference period.
This includes all loans, whether short term or long term,
whether interest bearing or not.
Fixed Premises: Units operating in fixed premises will
only be considered prima facie as belonging to SSI sector.
The following illustrations will make the concept of fixed
premises clear.
- In a hat (periodical market) there are some permanent
structures built by Panchayat or local bodies. The entrepreneurs
occupy them on hat days and carry out their activities.
These will be considered as activities without fixed premises.
- The activities carried on by the roadside or in the
open public places like that under a bridge or a tree
etc., with temporary make shift shelter or no structure
at all are deemed to be carried out without fixed premises.
- The brick kilns, pottery etc., having fixed site (with
or without structure) will always be identified at their
sites. Hence, these are to be treated as being operated
in fixed premises.
Mixed Activity: There are enterprises, which carry
out a number of activities simultaneously. For example, a
grocery shop owner may also sell oil from his own ghani, a
doctor may have a medical shop attached to his dispensary,
a restaurant may run an STD booth in its premises etc. Each
of such activity is to be treated as a separate enterprise
if information for them is separately available. If the accounts
are not separable, then the data will pertain to the enterprise
as a whole. The appropriate NIC code in such cases will be
determined on the basis of major activity. Major activity
refers to the activity, which yields maximum income/ turnover/
employment in that order of preference. In case of mixed activity
of manufacturing and trade such as handloom weavers, sweetmeat
shops, by convention manufacturing will be taken as the major
activity.
Sickness/ Incipient sickness: The definition of sickness
in SSI sector has been changing over time. The RBI have appointed
Committees from time to time to look in to this issue. The
latest definition given by the Working Group on Rehabilitation
of Sick Units set up by RBI (Kohli Committee) is given below.
“A small scale industrial unit is considered as sick when
- if any of the borrowal accounts of the unit remains
substandard for more than six months, i.e., principal
or interest, in respect of any of its borrowal accounts
has remained overdue for a period exceeding one year will
remain unchanged even if the present period for classification
of an account as substandard is reduced in due course;
OR
- There is erosion in the net worth due to accumulated
losses to the extent of 50 per cent of its net worth during
the previous accounting year, and
- The unit has been in commercial production for at least
two years.”
Criteria to identify sickness/ incipient
sickness
- In the Third Census, the following criteria will be adapted
to identify sick/ incipient sick units.
- Continuous decline in gross output compared to the
previous two financial years;
- Delay in repayment of loan, taken from institutional
sources, for more than 12 months; and
- Erosion in the net worth to the extent of 50 per cent
of the net worth during the previous accounting year.
- Units satisfying one or more of the above criteria will
have to be treated by the enumerator as not having run satisfactorily
and he has to elicit reasons.
Programme of work
- Each enumerator may be assigned the survey work in a few
registered SSI units and in a few villages/ urban blocks.
He has to carefully fill up the prescribed number of Formats.
Formats I, II and III will be scanned on computers. Hence,
adequate care and attention have to be taken in filling up
these formats. The enumerators will submit all the filled-in
formats in respect of the work assigned to them to the concerned
Data Inspectors. The Data Inspectors will put the codes in
respect of economic activity and products/ services. Thereafter,
the Supervisors will thoroughly check the entries in Formats
I, II & III using Formats IV & V. Separate instructions will
be issued indicating the work to be done by the Data Inspectors
and Supervisors. All the five filled-in formats in suitable
batches should be sent to the designated Centre at New Delhi,
immediately after completion of the work. Detailed instructions
will be issued separately on the dispatch of filled-in formats.
General Guidelines for filling the formats
(DOs and DON’Ts)
- Advance technology will be used for scanning the filled-in
formats, i.e., Formats I, II and III. Hence, the enumerators
have to follow the general guidelines given below while filling
up these formats.
- Use of blue or black ballpoint pen only should be made
for making entries in the formats.
- The formats provided for collection of information
should not be folded or mutilated in any manner to avoid
difficulties at the processing stage.
- The entries to be made in words should be made in the
formats in CAPITAL LETTERS and in ENGLISH language
only. All the entries should be clear and legible.
- Entries should be made strictly within the cell boundaries
and should not touch the cell boundaries.
- There should not be any over-writings.
- While entering the numerals in the formats, only the
“Arabic Numerals” should be written. Extra care should
be taken to write them in the simplest possible manner
in order to avoid chances of mistakes at the scanning
stage. All the entries in the boxes or columns be made
by applying same pressure throughout. No extra decoration
should be made while writing the numerals. For example,
while writing ‘one’, a simple vertical line would be sufficient
without writing any other line/ curve either on the top
or bottom of it. Similarly, while writing the number ‘seven’,
no extra horizontal line should be drawn.
- No rough work or stray marks should be made on the
formats I to III. Such things can be done on Formats IV
& V in the margin.
- It is important that survey work in all the units assigned
to each enumerator is completed.
- The reluctant informants should be assured that the
information collected from the unit would be kept confidential.
A letter of authority in this regard should be carried
without fail and should be shown to the informants, if
necessary.
- The reference year for the collection of information
from the units for the census is financial year 2001-2002,
i.e., period from 1-4-2001 to 31-3-2002.
- The working sheets (Formats IV & V) have to be submitted
by the enumerators along with the other three formats
on completion of data collection work.
- Major activity codes as per National Industrial Classification
for SSI sector and Product codes as per Commodity Classification
for SSI sector are to be entered by Data Inspectors only.
Enumerators are required to fill the exact descriptions
only as mentioned in the books of classification. This
is very important to avoid complications at processing
stage.
- In respect of Formats I, II & III, the original forms
supplied by the O/o DC (SSI) only must be used. Photocopies
of the forms should not be used under any circumstances.
Other papers should not be stapled with the filled-in
formats I, II or III. However, in respect of Formats IV
& V, no such restrictions need be followed.
|
