Finance Minister P Chidambaram is likely to announce on Wednesday removal of 125 items from the list of goods reserved for manufacture by small scale units.
"The Advisory Committee that met last week decided to further de-reserve 125 items from the SSI list," sources said.
The minister is likely to announce the decision in the budget, they added. The latest round of dereservation would bring down the number of items in the list to just 114 from 239 items at present.
Last year, Chidambaram had announced pruning the list of items for exclusive manufacture by small units by 180.
The notification implementing the decision was issued in May last year. In January, 87 more items were de-reserved.
Economic Survey 2006-07: Complete Coverage