Exclusive Purchase from SSI


Policy of Reservation

Exclusive Manufacture in Small Scale Sector
List of Industries for which Licensing is compulsory
Exclusively reserved for Public Sector

Schedule I :

List Of Industries To Be Reserved For manufacture Of Items Exclusively in the Public Sector

  • Arms and ammunition and allied items of defence equipment
  • Defence aircraft and warships.
  • Atomic Energy.
  • Coal and lignite
  • Mineral oils.
  • Mining of iron ore, manganese ore, chrome ore, gypsum, sulphur, gold and diamond.
  • Mining of copper, lead, zinc, tin, molybdenum and wolfram.
  • Minerals specified in the Schedule to the Atomic Energy (Control of production and use) Order, 1953.
  • Railway transport.

Schedule II :

List Of Industries In Respect Of Which Industrial Licensing Is Compulsory (In ITC (HS) Classification)

Note 1: This list is based on the Indian Trade Classification, which follows the Harmonised Commodity description and Coding system, Govt. of India, Ministry of Commerce, Directorate General of Commercial Intelligence and Statistics, Calcutta. The code specified for the item description relates to this classification.

Note 2: Other items in respect of which industrial licensing is not exempted are:-

A. For large and medium industries.
- The items reserved for the Small Scale Sector listed in Schedule-III

B. For all industries
- All items of electronic aerospace and defence equipment, Whether specifically mentioned or not, in this list.
- All items related to the production or use of atomic energy including the carrying out of any process, preparatory or ancillary to such production or use, under the Atomic Energy Act, 1962.

Note 3: The authentic description will be treated as specified in the item description given below.

    1. Coal and lignite

    27.01 Coal
    27.02 Lignite

    2. Petroleum (other than crude) and its distillation products.

    27.10 Petroleum oils, other than crude.
    27.11 Petroleum gases and other gaseous hydrocarbons.
    27.12 Petroleum waxes and other similar products obtained through distillation of petroleum.
    27.13 Petroleum coke and other residues of petroleum oils.

    3. Distillation and brewing of alcoholic drinks.

    22.03 Beer made from malt.
    22.04 Wine of fresh grapes including fortified wines.
    22.05 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances.
    22.06 Other fermented beverages (for example, cider, perry, mead).
    22.08 Indentured ethyl alcohol of an alcoholic strength by volume of less than 80% vol. spirit, liquors and other spirituous beverages, compound alcoholic preparations of a kind used for the manufacture of beverages.

    4. Sugar

    170199.02 Cane sugar, refined.
    170199.09 Other sugar, including centrifugal sugar.

    5. 151610.00 Animal fats and oils, partly or wholly hydrogenated.

    15.17 Edible mixtures or preparations of animal fats and oils.
    151800.11 Inedible mixtures or preparations of animal fats and oils.

    6. Cigars and cigarettes of tobacco or of tobacco substitute.

    24.02 Cigars, cheroots, cigarillos and a cigarettes of tobacco or of tobacco tobacco substitutes.

    7. Asbestos and asbestos-based products.

    68.11 Articles of asbestos-cement of cellulose fibre-cement or the like.
    68.12 Fabricated asbestos or with a basis of a asbestos and magnesium carbonate: articles thereof.
    681390.01 Asbestos friction materials.

    8. Plywood, decorative veneers, and other wood-based products such as particle board, medium density fibre board, and block board.

    44.08 Veneer sheets, plywood and other wood sawn lengthwise of a thickness not exceeding 6mm.
    44.10 Particle board and other similar board of wood or other ligneous materials.
    44.11 Fibre board of wood or other ligneous materials.
    44.12 Plywood, veneered panels and similar laminated wood.
    44.13 Densified wood, in blocks, plates strips and other profile shapes.

    9. Raw hides and skins, leather chamois and patent leather.

    41.04 Leather of bovine or equine animals, without hair on, other than leather of heading No. 41.08 or 41.09.
    41.05 Sheep or lamb skin leather, without wool on, other than leather of heading No. 41.08 or 41.09.
    41.06 Goat or kid skin leather, without hair on, other than leather of heading No 41.08 or 41.09.
    41.07 Leather of other animals, without hair on, other than leather of heading No.41.08 or 41.09.
    41.08 Chamois (including combination chamois) leather.
    41.09 Patent leather and patent laminated leather; and matalised leather.

    10. Tanned or dressed furskins.

    43.02 or dressed furskins.

    11. Motor cars.

    12. Paper and Newsprint except bagasse-based units (i.e. except units based on minimum 75% pulp from agricultural residues, bagasse and other non-conventional raw materials).

    47.01 Mechanical wood pulp
    47.02 Chemical wood pulp, dissolving grades.
    47.03 Chemical wood pulp, soda or sulphate, other than dissolving grades.
    47.04 Chemical wood pulp, sulphite, other than dissolving grades.
    47.05 Semi-chemical wood pulp.
    48.01 Newsprint, in rolls or sheets.
    48.02 Uncoated paper of a kind used for writing, printing or other graphic purposes, in rolls or sheets.
    48.03 Paper of a kind used for household or sanitary purposes, inrolls or sheets.
    48.04 Uncoated kraft paper, in rolls or sheets.
    48.05 Other uncoated paper, in rolls or sheets.
    48.06 Vegetable parchment, grease proof papers, tracing papers and the like, inrolls or sheets.
    48.07 Composite paper, in rolls or sheets.
    48.08 Paper, corrugated, creped, crinkled, embossed or perforated, in rolls or sheets.
    48.09 Carbon paper, self-copy paper and other copying or transfer papers in rolls or sheets.
    48.10 Paper coated with Kaolin or other inorganic substances, in rolls or sheets.
    48.11 Other coated or impregnated paper, in rolls, or sheets.
    48.12 Filter blocks, slabs and plates, of paper pulp.
    48.13 Cigarette paper.

    13. Electronic aerospace and defence equipment: all types.

    87.10 Tanks and other armoured fighting vehicles.
    88.01 Defence-aircraft, spacecraft, and parts to thereof.
    88.05 8906.01 Warships - all kinds.
    93.07 Arms and ammunition; parts and accessories to thereof.

    14. Explosive including detonating fuses, safety fuses, gun powder, nitro cellulose and matches.

    36.01 Explosives; pyrotechnic products; to matches; pyrophoric alloys; certain
    36.06 combustible preparations.

    15. Hazardous chemicals.

    22.07 Indentured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher, ethyl alcohol and other spirits, denatured, of any strength (Industrial alcohol.)
    280110.00 Chlorine
    281119.01 Hydrocyanic acid and its derivatives.
    281210.01 Phosgene and its derivatives.
    2815.11 Sodium Hydroxide (Caustic soda): Solid.
    2815.12 Sodium Hydroxide (Caustic soda): In aqueous solution.
    290121.00 Ethylene
    290122.00 Propene (propylene).
    290124.01 Butadienes
    290220.00 Benzene
    290230.00 Toluene
    290241.00 O-xylene
    290242.00 M-xylene
    290243.00 P-xylene
    290244.00 Mixed xylene isomers
    290531.00 Ethylene glycol (ethanediol)/ethylene oxide.
    29.05 Industrial alcohol
    292229.02 Meta amino phenol.
    292910.09 Isocyanates and disocyanates of hydrocarbon, not elsewhere specified (example, Methyl isocyanate).
    380810.02 Aluminium Phosphide.
    380810.16 Dimethoate
    380810.21 Guinalphos
    380810.29 Carbaryl, phorate and fenitorphion
    390110.00 Polyethylene having a specific gravity of less than 0.94.

    16. Drugs and Pharmaceuticals (according to Drug Policy)

    29.36 Provitamins and vitamins, natural or reproduced by synthesis (including natural concentrates), derivatives thereof used primarily as vitamins, and inter-mixtures of the foregoing. (subject to the Drug Policy).
    29.37 Hormones, natural or reproduced by Synthesis; derivatives thereof, used primarily as hormones; other steroids used primarily as hormones (subject to the Drug Policy).
    29.38 Glycosides, natural or reproduced by synthesis and their salts, ether, esters and other derivatives, (subject to the Drug Policy).Antibiotics. (subject to the Drug Policy).
    29.39 Vegetable alkaloids, natural or reproduced by synthesis and their salts, ethers, esters and other derivatives. (subject to the Drug Policy.)
    29.41 Antibiotics. (subject to the Drug Policy).
    29.42 Other synthetic drugs, not elsewhere specified or included (subject to the Drug Policy).
    30.01 Pharmaceutical products (Subject to the to Drug Policy).

    Now only six items fall under Schedule II

    1. Distillation and brewing of alcoholic drinks.
    2. Cigars and cigarattes of tobacco and manufactures tobacco substitutes.
    3. Electronic Aerospace and defence equipment: all types.
    4. Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches.
    5. Hazardous chemicals.
    6. Drugs and Pharmaceuticals (according to modified Drug Policy issued in September, 1994).

    17. Entertainment electronics (VCRs, colour TVs, CD players, tape recorders).

    85.19 Compact disc players.
    852031.00 Tape recorders, cassette-type.
    8520.39 Tape recorders, other than cassette-type.
    85.21 Video recording or reproducing apparatus.
    8528.10 Colour television receivers.

    18. White goods (domestic refrigerators, domestic dishwashing machines, programmable domestic washing machines, microwave ovens, air conditioners).

    84.15 Air conditioning machines.
    84.18 Refrigerators and other freezing equipment, of the household type.
    842211.00 Dishwashing machines, of the household type.
    84.50 House hold washing machines of the programmable type.
    851650.00 Microwave ovens.20.

Schedule III :

List Of Items Reserved For Exclusive Manufacture In Small Scale Sector