1. Small Industry means an industrial undertaking engaged either in manufacturing process or service activity whose total fixed investment excluding the prices of the land, expenses for inland transportation and commissioning of machinery appliances and duties and taxes , is limited to taka three crore i.e. Tk. 30 million (including initial working capital). In the case of BMRE, even of the total investment limit exceeds Tk. 30 million, it would still be considered as a small industry. However   , the extent of extended investment for BMRE shall not be more than 50% of the total investment limit.

2. 'Cottage Industry ' means an industrial unit either engaged in manufacturing or servicing generally run by the family members either as full time or part time and the total investment is limited to taka five lac (Tk.500, 000).

3. For the development and expansion of Small and Cottage Industries, BSCIC will be responsible for the registration, determination of import entitlement of raw materials and packing materials, issue of import pass book recommendation for local raw materials, allotment of land in its own industrial zones, and also for providing assistance in all other matters.

4. BSCIC will provide financial types of small and cottage industries; in this case, BSCIC shall have to mobilize its own fund. The fund to the banks may not be utilized for this purpose.

5. During the selection of investors for small and cottage industries, special priority shall be given to women educated unemployed, skilled technicians, laborers, engineers, wage- earners and those depended upon them.

6. Small Industries of the textile sector will enjoy similar facilities as those of small and cottage industries from the Bangladesh Small and Cottage Industries Corporation.

7. BSCIC will continue its efforts in creating infrastructure facilities in the growth centers similar to those available in the industrial estates. In the regions, where there are no industrial estates, the relevant authorities on the recommendation of BSCIC, will provide infrastructural facilities to the small and cottage industries on a priority basis. Irrespective of the amount of investment, BSCIC will approve the plans and lay-outs of the buildings of all the industries situated in the BSCIC, industrial states and are their controlling authorities, but for the sake of expansion of small industries, no permission shall be granted for the establishment of any new large or medium industry in the BSCIC industrial estates.

8. To assist in the marketing of products of small and cottage industries, the government, semi-government and autonomous bodies will ensure the purchase of these products, as per rules and the government purchase policy. By utilizing their own funds, the Thana Parishads will also try to support BSCIC and the related institutions by organizing fairs and exhibition, setting up of sales and exhibition centers and providing infrastructural facilities like setting up of special Hat Corner.

9. The Jurisdiction, Sector and amount of investment and the type of production to be controlled by the Board of investment and the BSCIC will be clearly demarcated.

10. Small and cottage industries which have been granted credits by financial institutions/banks must be registered with BSCIC.

11. A Review committee will be formed in the Ministry of Industries with members from BSCIC, Bangladesh Bank, relevant banks/financial institutions and representatives from Chamber of Commerce and Industry and NASCIB for reviewing the implementation of the investment schedule of the small and cottage industries and monitoring the credit, policy being followed by the banks and other financial institutions.

12. Machinery/spare parts required by the new and existing heavy and medium industries and Government. Semi-Government and Autonomous bodies have to be procured from small industries and in these cases subcontracting will be given preference.

13. In addition to the existing facilities, the following special incentives and facilities will be provided to intensify the expansion of small and cottage industries:

a. Small Industry Credit Guarantee Scheme will be introduced with joint collaboration of Bangladesh Small and Cottage Industries Corporation, Government / Private General Insurance Corporation, Government / Private General Insurance Corporation / companies.

b. Based on the recommendation of the BSCIC, the National Board of Revenue will provide tax holiday to appropriate small and cottage industries.

c. To assist the sub-contracting banks and financial institutions will make provisions for funds in accordance with their rules; the sub-contracting industries shall enjoy incentives and facilities similar to those provided in the SCI sector irrespective of their locations.