 bill no  2 of  2007 the national commission for small and tiny industries bill, 2007 by shri ks rao, mp a billto provide for the setting up of a national commission for small and tiny industries and for matters connected therewith or incidental theretobe it enacted by parliament in the fifty-eighth year of the republic of india as follows:—1 (1) this act may be called the national commission for small and tiny industriesact, 2007short title, extent and commencement(2) it extends to the whole of india5(3) it shall come into force at oncedefinitions2 in this act, unless the context otherwise requires,—(a) "prescribed" means prescribed by rules made under this act;5(b) "small and tiny industry" means any industry 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 items or any other item which may be prescribed and where the total capital invested in running the business does not exceed rupees ten lakh3 (1) the central government shall set up a national commission for small and tiny industries10national commission for small and tiny industries(2) the commission shall consist of  a chairman and four other members possessing such qualifications as may be prescribed(3) the salaries, allowances and other terms and conditions of service of the chairman and other members, shall be such as may be prescribed by the central government154 (1) every state government and union territory administration shall constitute a commission for small and tiny industries to be known as the state or union territory commission for small and tiny industriesstate commission for small and tiny industries(2) the commission shall consist of a chairman and four other members representing such disciplines as may be determined by the state government or union territory administration20(3) the salaries, allowances and other terms and conditions of service of the chairman and other members shall be such as may be prescribed by the state government or union territory administration5 the national commission shall perform the following functions, namely:—(i) formulation of policy for the development of small and tiny industries;functions of the national commission25(ii) coordination with the state/union territory commissions regardingdevelopment of small and tiny industries;(iii) formulation of guidelines regarding financial assistance or loans by banksor financial institutions to small and tiny industries;30(iv) recommend to the central government steps to be taken for the welfare ofpersons engaged in small and tiny industries; and(v) such other functions, as may be assigned to it by the central governmentfunctions of the state commissions356 the state/union territory commissions shall perform the following functions,—(i) provide assistance to the small and tiny industries  in matters such as acquiringlicense, building of infrastructure, from the state governments or union territory administrations concerned;(ii) provide assistance to the small and tiny industries in obtaining loans fromcommercial banks and other financial institutions;(iii) implement the national policy for the development of small and tiny industriesin respect of the state/union territory;40(iv) advise the respective sate government/union territory administrationregarding any matter relating to development of small and tiny industries  in the state/ union territory;(v) send regular report or information, as the case may be, to the nationalcommission from time to time; and45(vi) such other  functions as may be assigned to it by the state government orthe union territory administrationpower to make rules7 the central government may, by notification in  the official gazette, make rules forcarrying out the purposes of the act statement of objects and reasonsthe small and tiny industries are very important for our economy as they prevent concentration of wealth in few hands, decentralize the manufacturing processes and provide employment on large scale it simultaneously provides choice to the consumers and a source of revenue to the state by way of payment of taxes but, as yet, 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 becoming 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 loan, license and other infrastructural facilities there is no proper authority to assist them and address their grievances it is proposed to set up a national commission for small and tiny industries and similar commission at state level to help in their all round developmenthence this billnew delhi;ks raonovember 9, 2006 financial  memorandumclause 3 of the bill provides for the setting up of a national commission for small and tiny industries consisting of a chairman and four other members clause 4 provides for setting up of commissions for small and tiny industries in every state and union territories the central government has to meet expenditure for the union territories and may also have to provide funds to the state governments for the commissions the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is likely to involve a recurring expenditure of about rupees ten crore per annum it is also likely to involve a non-recurring expenditure of rupees two crore memorandum  regarding  delegated  legislationclause 7 of the bill empowers the central government to frame rules for carrying out the provisions 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 setting up of a national commission for small and tiny industries  and for matters connected therewith or incidental thereto—————(shri ks rao, mp)mgipmrnd—45ls(s-5)—06-02-2007