 bill no 165 of  2016 the national commission for tiny industries bill, 2016 by dr boora narsaiah goud, mp a billto provide for constitution of a national commission for tiny industries and for matters connected therewith or incidental theretobe it enacted by parliament in the sixty-seventh year of the republic of india as follows:—short title and commencement2 it is hereby declared that it is expedient in the public interest that the union should take under its control the regulation of products and processes of tiny industriesdeclaration as to expediency of control by union3 in this act, unless the context otherwise requires,—definitions5(a) "national commission" means the national commission for tiny industries constituted under section 4;(b) "prescribed" means prescribed by rules made under this act; (c) "state commission" means the state commission for tiny industries constituted under section 6; and10 15(d) "tiny industry" means any industry involved in the manufacturing or processing of consumer or household products such as breads, biscuits, and other confectionery items, fast food or other food products, detergents, soaps, kitchen items, shoe and leather goods, cosmetics and skin care products, herbal products for medicinal and other purposes, stationery and electrical items, hardware and sanitaryware items or any other item which may be prescribed and where the total capital invested in running the business does not exceed rupees ten lakh 4 (1) the central government shall, by notification in the official gazette, constitute a national commission for tiny industries for carrying out the purposes of this actconstitution of national commission for tiny industries20(2) the national commission shall consist of a chairperson and four other members possessing such qualifications as may be specified by the central government, to be appointed in such manner as may be prescribed(3) the salaries and allowances payable to, and other terms and conditions of, service of, the chairperson and other members of the national commission shall be such as may be prescribed5 the national commission shall—25functions of national commission(i) formulate a national policy for the promotion and development of tinyindustries;(ii) coordinate with the states and union territory administrations regardingpromotion and development of tiny industries;30(iii) formulate guidelines regarding financial assistance or loans by banks orfinancial institutions to tiny industries;(iv) recommend to the central government the steps to be taken for the welfare of persons engaged in tiny industries; and(v) undertake such other functions, as may be assigned to it by the central government356 (1) every state government shall, constitute a commission to be known as the state commission for tiny industries for effective implementation of the provisions of this actconstitution of state commission for tiny industries(2) the state commission shall consist of a chairperson and four other members to be appointed by the state government, in such manner as may be prescribed40(3) the salaries and allowances payable to, and other terms and conditions of service of, the chairperson and other members shall be such as may be prescribed7 the state commission shall—functions of state commission(i) provide financial assistance to the tiny industries in matters such as acquiring licence and building of infrastructure;(ii) provide assistance to the tiny industries in obtaining loans from scheduled banks and other financial institutions;(iii) implement the national policy framed under clause (i) sub-section (1) of section 5 for development of tiny industries in their respective jurisdiction;5(iv) advise the concerned state government regarding any matter relating todevelopment of tiny industries in the state;(v) furnish regular reports or information, as the case may be, to the nationalcommission from time to time; and10(vi) undertake such other functions as may be assigned to it by the state government 8 the central government shall, after due appropriation made by parliament by law in this behalf, provide adequate funds to the state governments for carrying out the purposes of this actcentral government to provide adequate funds power to make rules159 (1) the central government may, by notification in the official gazette, make rules for carrying out the purposes of the act20(2) every rule made under this act by the central government shall be laid, as soon as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule statement  of  objects  and  reasonsthe tiny industries ie industries where the total capital invested in running the business does not exceed rupees ten lakh, are very important for our economy as they prevent concentration of wealth in few hands and decentralize the manufacturing processes and provide employment on large scale these are the industries involved in the manufacturing or processing of consumer or household products such as bread, biscuit and other confectionery items, fast food or other food products, detergents, soaps, kitchen items, shoe and leather goods, cosmetics and skin care products, herbal products for medicinal and other purposes, stationery and electrical items, hardware and sanitary ware itemstiny industries simultaneously provide choice to the consumers and act as a source of revenue to the state by way of payment of taxes however, there is no clear-cut policy for the development of small and tiny industries in the country earlier, certain categories of industries were reserved exclusively for the small scale sector, but now it has been dispensed with now big industrial houses and even multinational companies are penetrating the small scale sector as well as the retail sector, thereby causing a threat to the existence of small and tiny industries, as they are not in a position to compete with the former further, the small scale entrepreneurs have to run from pillar to post in order to obtain loans, licences, and other infrastructural facilities there is no proper authority to assist them and address their grievancesit is, therefore, proposed to constitute a national commission for tiny industries and similar commissions at state level to promote and develop tiny industrieshence this bill financial  memorandumclause 4 of the bill provides for constitution of a national commission for tiny industries it also provides for appointment of chairperson and other members of the commission clause 6 provides for constitution of state commission for tiny industries clause 8 provides that the central government shall provide adequate funds to the state governments for carrying out the purposes of the bill the bill, therefore, if enacted, is likely to involve expenditure from the consolidated fund of india it is estimated that an annual recurring expenditure of about rupees five hundred crore will be involveda non-recurring expenditure of about rupees one hundred crore is also likely to be involved memorandum  regarding  delegated  legislationclause 9 of the bill empowers the central government to make rules for carrying out the purpose of the bill as the rules will relate to matters of detail only, the delegation of legislative power is of a normal character———— a billto provide for constitution of a national commission for tiny industries and for matters connected therewith or incidental thereto————(dr boora narsaiah goud, mp)gmgipmrnd—1109ls(s3)—11072016