Msme Annual Report 2007-08 - English

ANNEXURES
Annexure - 1.1
[Extracts from the SECOND SCHEDULE of the Government of India

(Allocation of Business) Rules, 1961]
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

(SUKSHMA, LAGHU AUR MADHYAM UDYAM MANTRALAYA)
PART I
SUBJECTS IN LIST 1 OF THE SEVENTH SCHEDULE TO THE CONSTITUTION

OF INDIA:
1. Industries, the development and regulation of which by the Union are declared by Par-
liament to be expedient in public interest under the Industries (Development and Regulation)
Act, 1951 (65 of 1951) and the Micro, Small and Medium Enterprises Development Act, 2006
(27 of 2006) so far as they relate respectively to small scale industrial undertakings and ancil-
lary industrial undertakings and, as the case may be, micro, small and medium enterprises
defined in the said Acts.
PART II
2. For the Union Territories, the subject mentioned in PART I above so far as they exist
in regard to these territories.
PART III
GENERAL AND CONSEQUENTIAL:
3. All matters of policy and planning relating to and coordination of all measures for de-
velopment of micro, small and medium enterprises, including khadi, cottage, village and coir
industries.
139
4. National Board for Micro, Small and Medium Enterprises.
5. Co-operation in the micro, small and medium enterprises sector, including cottage,
khadi, village and coir industries, excepting cooperative sugar factories.
6. All matters relating to preference policies for procurement of goods produced and ser-
vices rendered by micro and small enterprises, by Ministries or Departments, public sector
undertakings and aided institutions of the Central Government.
7. All matters relating to technical and economic cooperation with United Nations Indus-
trial Development Organisation for promotion and development of micro, small and medium
enterprises, including cottage, khadi, village and coir industries.
PART IV
ATTACHED OFFICE:
8 Small Industries Development Organisation (SIDO) and Office of the Development

Commissioner (Small Scale Industries), including Small Industries Development Organisa-
tion’s field units like Small Industry Service Institutes, Regional Testing Centres and Field
Testing Stations, Small Entrepreneurs Promotion and Training Institute (SEPTI), etc.
PART V
STATUTORY AND AUTONOMOUS BODIES AND TRAINING INSTITUTES:
9. Khadi and Village Industries Commission (KVIC) ,Mumbai.
10. Coir Board (CB), Kochi.
11. Tool Rooms and Training Centres operated through the Small Industries Development
Organisation.
12. Entrepreneurship Development and Skill Development or Training Institutes:
(i) National Institute of Small Industry Extension Training (NISIET), Hyderabad.

(ii) National Institute for Entrepreneurship and Small Business Development
(NIESBUD), NOIDA.
(iii) Indian Institute of Entrepreneurship (IIE), Guwahati.
140
(iv) Central Footwear Training Institute (CFTI), Agra.
(v) Central Footwear Training Institute (CFTI), Chennai
(vi) All Training Institutes of Khadi and Village Industries Commission.
(vii) All Training Institutes of Coir Board.
13. Credit Guarantee Fund Trust for Small Industries.
14. Research and Development Centres, including:-
(i) Institute for Design of Electrical Measuring Instruments (IDEMI), Mumbai.

(ii) Electronic Service and Training Centre (ESTC), Ramnagar.
(iii) Process and Product Development Centre (PPDC), Agra.
(iv) Process and Product Development Centre (PPDC), Meerut.
(v) Fragrance and Flavour Development Centre (FFDC), Kannauj.
(vi) Centre for the Development of Glass Industry (CDGI), Firozabad.
(vii) Mahatma Gandhi Institute of Rural Industrialisation, Wardha.
15. Any other statutory body or institute created for Micro, Small and Medium Enterprises
including those in the unorganised sector.
PART VI
PUBLIC SECTOR UNDERTAKING:
16. National Small Industries Corporation Limited, Delhi.
PART VII
AWARDS AND EXHIBITIONS:
17. National Awards for Micro, Small and Medium Enterprises, including khadi, cottage,
village and coir industries.
18. National Awards for Research and Development Efforts by Micro, Small and Medium
Enterprises, including khadi, cottage, village and coir industries.
19. National Awards for Quality Products, including khadi, cottage, village and coir indus-
tries.
141
20. National and international exhibitions, buyer-seller meets and similar events for pro-
motion and development of micro, small and medium enterprises, including khadi, cottage,
village and coir industries.
PART VIII
ADMINISTRATION OF ACTS, RULES AND REGULATIONS:
21. The Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) and
Rules and Regulations thereunder.
22. Section 29B of the Industries (Development and Regulation) Act, 1951 (65 of 1951)
to the extent its provisions relate to small scale industrial undertakings and ancillary industrial
undertakings and Rules and Regulations thereunder.
23. The Khadi and Village Industries Commission Act, 1956 (61 of 1956) and Rules and
Regulations thereunder.
24. The Coir Industry Act, 1953 (45 of 1953) and Rules and Regulations thereunder.
PART IX
MISCELLANEOUS:
25. Coordination and implementation of Prime Minister’s Rozgar Yojana and Rural Em-
ployment Generation Programme and similar schemes or programmes relating to industriali-
sation and employment generation through promotion and development of micro, small and
medium enterprises, including khadi, cottage, village and coir industries with the states or
Union territories, and enhancing the competitiveness of such enterprises and industries.
26. All other matters relating to micro, small and medium enterprises including khadi, cot-
tage, village and coir industries, not specifically allocated to any other Ministry or Department
and renomenclature of the existing non-statutory organisations, field offices and institutions
under the Ministry in line with the Micro, Small and Medium Enterprises Development Act,
2006 (27 of 2006)
142
Annexure - 5.1
STATE-WISE UNITS SET UP UNDER REGP DURING X PLAN AND 2007-08

Sl. States / Union 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
No. Territories
1 Chandigarh 01 8 8 3 2 01
2 Delhi 09 7 9 15 13 03
3 Haryana 677 923 1140 1058 869 472
4 Himachal Pradesh 423 414 469 650 803 522
5 Jammu & Kashmir 105 775 922 1402 1716 561
6 Punjab 1358 882 864 440 1022 606
7 Rajasthan 3036 2496 1537 2133 1340 705
8 Andaman & Nicobar Islands 196 58 6 598 127 10
9 Bihar 229 88 254 692 849 341
10 Jharkhand 298 323 240 217 221 48
11 Orissa 668 1031 991 650 857 335
12 West Bengal 2459 3348 2584 2078 2290 961
13 Arunachal Pradesh 30 32 43 76 88 55
14 Assam 559 1223 1658 2229 1599 1703
15 Manipur 79 36 102 65 139 21
16 Meghalaya 153 210 146 206 165 76
17 Mizoram 143 33 162 365 990 328
18 Nagaland 64 61 151 316 156 194
19 Tripura 141 244 233 306 212 77
20 Sikkim 16 113 139 106 89 24
21 Andhra Pradesh 1818 1097 1988 2278 2113 1010
22 Karnataka 1411 1422 934 1314 1689 1049
23 Kerala 789 2046 914 1217 912 875
24 Lakshadweep 0 9 0 26 0 0
25 Pondicherry 03 47 7 56 164 29
26 Tamil Nadu 764 1568 925 1036 1075 924
27 Dadra & Nagar Haveli 05 2 0 0 0 0
28 Goa 244 126 138 136 104 35
29 Gujarat 126 290 376 516 412 222
30 Maharashtra 2249 857 1773 3120 2296 462
31 Chattishgarh 216 697 656 551 691 210
32 Madhya Pradesh 703 1041 1361 736 934 393
33 Uttaranchal 375 1106 513 527 641 428
34 Uttar Pradesh 1677 2134 2210 1532 1509 824
Total 21024 24747 23453 26650 26087 13504
*Upto December 2007
143
Annexure - 5.2
STATE-WISE MARGIN MONEY UTILISATION DURING X PLAN AND 2007-08

(Rs lakh)
Sl. State / U.Ts 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
No
1 Andhra Pradesh 1775.01 1675.40 3394.19 3627.58 3674.06 2089.99
2 Arunachal Pradesh 45.36 52.77 66.03 126.54 144.45 99.09
3 Assam 375.68 806.83 1277.42 2719.99 1717.35 1875.68
4 Bihar 108.13 186.03 281.69 570.54 715.67 371.24
5 Goa 198.06 82.98 88.90 103.68 95.25 29.01
6 Gujarat 102.23 130.34 530.55 883.08 756.10 406.59
7 Haryana 884.91 1938.96 2142.25 1782.18 1749.31 1156.44
8 J&K 179.00 363.45 584.55 833.56 1565.20 356.55
9 Himachal Pradesh 643.78 757.11 657.72 889.90 1165.42 743.25
10 Karnataka 1560.05 1692.17 1063.83 1697.66 2424.27 1545.28
11 Kerala 1196.03 2753.15 1027.95 1603.41 1565.36 1493.55
12 Madhya Pradesh 605.97 1355.07 2125.71 1114.33 1531.38 713.13
13 Maharashtra 1541.92 873.25 1439.17 1596.48 1837.03 599.65
14 Manipur 110.53 41.19 73.66 43.85 128.99 21.45
15 Meghalaya 135.94 121.79 196.03 234.14 255.06 121.03
16 Mizoram 224.40 61.10 257.48 995.54 1043.60 402.99
17 Nagaland 50.15 117.20 204.46 286.22 192.13 81.12
18 Orissa 156.78 784.11 863.05 837.22 1055.54 433.74
19 Punjab 1744.62 819.03 1834.63 837.21 1826.00 1443.99
20 Rajasthan 2189.08 2890.28 2064.33 2679.91 2106.77 1374.53
21 Tamilnadu 604.08 1362.17 1147.28 1217.13 1438.04 1374.70
22 Tripura 106.23 224.02 214.14 289.95 278.41 87.81
23 Uttar Pradesh 2293.52 3415.18 3596.64 2495.99 2903.32 1634.67
24 West Bengal 1202.17 1593.51 1999.62 2100.06 2396.03 1028.50
25 Sikkim 6.70 127.67 165.78 139.54 151.47 48.70
26 A & N. Islands 78.24 28.44 4.16 218.87 22.15 3.98
27 Chandigarh 0.40 10.24 21.45 3.63 3.47 0.75
28 D & N. Haveli 9.49 4.13 0.00 0.00 0 0
29 Delhi 16.16 12.31 8.09 16.66 18.37 3.69
30 Lakshdweep 0.00 7.42 0.00 16.39 0 0
31 Pondicherry 0.29 11.38 9.05 12.66 42.76 10.45
32 Chattisgarh 427.33 1098.00 1000.91 1152.87 1215.03 355.66
33 Jharkhand 421.01 198.08 320.60 351.12 357.92 95.65
34 Uttaranchal 378.01 979.70 578.63 617.86 601.44 415.12
Total 19371.26 26574.46 29239.95 32095.75 34979.35 20417.98
*up to December 20 07
144
Annexure -5.3
STATE/UT-WISE DETAILS OF EMPLOYMENT GENERATION UNDER PMRY DURING

X FIVE YEAR PLAN
SI. State/U. T. 2002-03 2003-04 2004-05 2005-06* 2006-07*

No Cases Esti- Cases Esti- Cases Esti- Cases Esti- Cases Esti-
Dis- mated Dis- mated Dis- mated Dis- mated Dis- mated
bursed employ- bursed em- bursed em- bursed employ- bursed em-
by ment by ploy- by ploy- by ment by ploy-
Banks gener- Banks ment Banks ment Banks gener- Banks ment
(No.) ated# (No.) gener- (No.) gener- (No.) ated# (No.) gener-
ated# ated# ated#
1 2 3 4 5 6 7 8 9 10 11 12
145
1 Haryana 7008 10512 7277 10916 7755 11633 9610 14415 11438 17157
2 Himachal 2209 3314 2862 4293 2853 4280 3015 4523 3480 5220
Pradesh
3 Jammu & 605 908 656 984 639 959 544 816 728 1092
Kashmir
4 Punjab 7771 11657 7558 11337 8372 12558 8142 12213 8334 12501
5 Rajasthan 12267 18401 12769 19154 12919 19379 14509 21764 15208 22812
6 Chandi- 47 71 68 102 206 309 107 161 47 71
garh
7 Delhi 632 948 904 1356 819 1229 700 1050 588 882
8 Assam 4149 6224 5844 8766 8256 12384 6414 9621 4531 6797
9 Manipur 549 824 520 780 387 581 455 683 188 282
10 Meghalaya 256 384 403 605 568 852 568 852 455 683
11 Nagaland 107 161 53 80 109 164 2379 3569 978 1467
SI. State/U. T. 2002-03 2003-04 2004-05 2005-06* 2006-07*
ated# ated# ated#
12 Tripura 1085 1628 2043 3065 1747 2621 2139 3209 1904 2856
13 Arunachal 294 441 668 1002 440 660 462 693 327 491
Pradesh
14 Mizoram 155 233 775 1163 142 213 500 750 744 1116
15 Sikkim 26 39 30 45 32 48 31 47 38 57
16 Bihar 7939 11909 9860 14790 10396 15594 12136 18204 8039 12059
17 Jharkhand 4354 6531 4774 7161 4804 7206 4660 6990 4892 7338
146
18 Orissa 6725 10088 8779 13169 11339 17009 14264 21396 13823 20735
19 West Ben- 2528 3792 2822 4233 3796 5694 4687 7031 3438 5157
gal
20 Andaman 142 213 182 273 142 213 153 230 118 177
& Nicobar
21 Madhya 16710 25065 19748 29622 20642 30963 21265 31898 21298 31947
Pradesh
22 Chattis- 3006 4509 3275 4913 3276 4914 3700 5550 4128 6192
garh
23 Uttar 38016 57024 40481 60722 42534 63801 40046 60069 43094 64641
Pradesh
24 Ut- 4683 7025 5361 8042 6637 9956 7584 11376 7166 10749
taranchal
25 Gujarat 7184 10776 6755 10133 6406 9609 6369 9554 6021 9032
SI. State/U. T. 2002-03 2003-04 2004-05 2005-06* 2006-07*
ated# ated# ated#
26 Maharash- 17631 26447 17230 25845 21819 32729 24011 36017 20976 31464
tra
27 Daman & 2 3 3 5 4 6 14 21 4 6
Diu
28 Goa 274 411 116 174 45 68 43 65 21 32
29 Dadra & 10 15 0 0 22 33 24 36 6 9
Nagar
Haveli
147
30 Andhra 13632 20448 17729 26594 22542 33813 22164 33246 16060 24090
Pradesh
31 Karnataka 10026 15039 11929 17894 13931 20897 19377 29066 19415 29123
32 Kerala 9853 14780 14024 21036 16553 24830 21507 32261 21473 32210
33 Tamilnadu 9595 14393 12738 19107 16902 25353 19717 29576 22003 33005
34 Lakshad- 10 15 17 26 4 6 5 8 0 0
weep
35 Pondich- 213 320 294 441 329 494 368 552 336 504
erry
Not Speci- 828 1242 897 1346 897 1346 1397 2096 886 1329
fied
ALL INDIA 190521 285782 219444 329166 248264 372396 273066 409599 262185 393278
Source: RBI data
# estimated employment generated @1.5 per case disbursed.
* Provisional
Annexure - 10.1
REVISED PARAMETERS UNDER PRIME MINISTER’S ROZGAR YOJANA

Sl. No. Parameters for Eligibility
1. Age (i) 18 to 35 years for all educated unemployed.
(ii) 18 to 40 for all educated unemployed in North-East

States, Himachal Pradesh, Uttarakhand and J&K.
(iii) 18 to 45 years for Scheduled Castes /Scheduled Tribes,

Ex- servicemen, Physically Disabled and Women.
2. Educational Qualification VIII pass. Preference will be given to those who have
been trained for any trade in Government recognised/
approved institutions for duration of at least six months.
3. Family Income Neither the income of the beneficiary along with the
spouse nor the income of parents of the beneficiary
shall exceed Rs.1,00,000/- per annum.
4. Residence Permanent resident of the area for atleast 3 years.

(Relaxed for married men in Meghalaya and for mar-
ried women in rest of the country. For married men
in Meghalaya and for married women in rest of the
country, the residency criteria applies to the spouse or
in-laws.)
5. Defaulter Should not be a defaulter to any nationalized bank/

financial institution/co-operative bank. Further, a per-
son already assisted under other subsidy linked Gov-
ernment schemes, would not be eligible under this
scheme.
6. Activities Covered All economically viable activities including agriculture

and allied activities but excluding direct agricultural
operations like raising crop, purchase of manure etc.
7. Project Cost Rs. 2.00 lakhs for business/ service sector and
Rs. 5.00 lakhs for industry sector, loan to be of com-
posite nature. If two or more eligible persons join
together in a partnership, projects upto Rs.10.00 lakhs
are covered. Assistance shall be limited to individual
admissibility.
148
Sl.No. Parameters for Eligibility
Self Help Groups can be considered for assistance

under the Scheme provided:
• Educated Unemployed Youth satisfy the eligibility cri-

teria laid down under the Scheme and volunteer to
form SHG to set up self-employed ventures (Common
Economic Activity).
• A Self Help Group may consist of 5-20 educated un-

employed youth.
• No upper ceiling on project cost.
• Loan may be provided as per individual eligibility tak-

ing into account requirement of the project.
• SHG may undertake common economic activity for

which loan is sanctioned without resorting to onward
lending to its members.
• The subsidy ceiling for Self Help Group is Rs. 15,000/-

per beneficiary subject to a maximum of Rs. 1.25 lakh
per Self Help Group.
• Subsidy may be provided to the SHG as per the eligi-

bility of individual members taking into account relax-
ation provided in North Eastern States, Uttarakhand,
Himachal Pradesh and Jammu & Kashmir.
• Required margin money contribution (i.e. subsidy and

margin to be equal to 20 per cent of the project cost)
should be brought in by the SHG collectively.
• The exemption limit for obtention of collateral security

will be Rs. 5.00 lakh per borrowal account for projects
under Industry Sector. Exemption from collateral will
be limited to an amount of Rs. 2.00 lakh per member
of SHG for projects under Service & Business Sec-
tors. Banks may consider enhancement in limit of ex-
emption of collateral in deserving cases.
• Implementing Agencies may decide necessity of pre-

disbursal training for all the members/majority of the
members of the group.
149
8. Subsidy & Margin Money i) Subsidy will be limited to 15% of the project cost sub-
ject to ceiling of Rs.12,500/- per entrepreneur. Banks
will be allowed to take margin money from the entre-
preneur varying from 5% to 16.25% of the project cost
so as to make the total of the subsidy and the margin
money equal to 20% of the project cost.
For North Eastern States, Himachal Pradesh, Uttra-

khand and J&K.
ii) Subsidy @ of 15% of the project cost subject to a ceil-

ing of Rs.15,000/- per entrepreneur for north-eastern
States, Himachal Pradesh,Uttaranchal and Jammu &
Kashmir. Margin money contribution from the entre-
preneur may vary from 5% to 12.5% of the project cost
so as to make the total of the subsidy and the margin
money equal to 20% of the project cost.
9. Collateral No collateral for units in industry sector with project

cost upto Rs. 5.00 lakh (the loan ceiling under the
PMRY). For partnership projects under Industry Sec-
tor, the exemption limit for obtention of collateral se-
curity will be Rs. 5.00 lakh per borrower account. For
units in service and business sector no collateral for
project upto Rs. 2.00 lakh. Exemption from collateral
in case of partnership project will also be limited to an
amount of Rs. 2.00 lakh per person participating in the
project cost.
10. Rate of Interest Normal rate of interest shall be charged.

& Repayment Repay ment schedule may range from 3 to 7 years
Schedule after an initial moratorium as may be prescribed.
11. Reservation Preference should be given to weaker sections includ-

ing women. Assistance to SC/ST beneficiaries should
be targeted in such a manner that they are benefited
in proportion to their population in the respective Dis-
trict/State. However, the number of SC/ST beneficia-
ries should not be less than 22.5% and 27% for Other
Backward Classes (OBCs) as is currently envisaged
in the PMRY. In case SC/ST/OBC candidates are not
available, States/UTs Govt. will be competent to con-
sider other categories of candidates under PMRY.
150
12. Training Each entrepreneur whose loan is sanctioned is pro-

vided training as per details given below:
i) For Industry Sector:
Duration:15-20 working days.
Stipend: Rs.750/-
Training Expenditure: Rs.1750/-
ii) For Service and Business Sector:
Duration:7-10 working days.
Stipend: Rs.375/-
Training Expenditure: Rs.875/-
13. Motivational Campaigns To improve the success rate of eligible applicants,

States/UTs will be allowed reimbursement of cost of
counseling and guiding the applicants @ Rs.200/- per
applicant, for 125 per cent of the allocated target of
cases.
14. Recovery of Loans (i) Panchayati Raj Institutions like Gram Panchayats be
empowered to identify and sponsor candidates locat-
ed in the same area to the District Task Force Commit-
tee so as to ensure disbursement of loan to genuine
persons and better recovery of loan.
(ii) To reduce the level of sickness/closure of PMRY units,

the District Level Selection Committee/Task Force
Committee be made accountable for the proper scru-
tiny of applications and selection of viable projects.
15. Implementing Agency The District Industries Centres and Directorate of In-
dustries are mainly responsible for implementation of
the Scheme along with the banks.
151
Annexure - 10.2
STATE-WISE EMPLOYMENT GENERATED (PMRY)

DURING X PLAN AND 2007-08
Sl. STATES/UTS 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
No.
1 Chandigarh 07 162 188 36 50 7
2 Delhi 293 231 144 112 267 38
3 Haryana 15964 33201 35691 26541 28339 19046
4 Himachal Pradesh 11644 13485 12256 12276 17102 12451
5 Jammu & Kashmir 3129 6845 9406 18284 23274 9411
6 Punjab 31461 13600 30665 16654 35604 22477
7 Rajasthan 43040 51337 38287 59596 44168 23904
8 Andaman & Nicobar 1392 504 93 4495 323 43
9 Bihar 1965 3818 5049 11445 12334 6791
10 Jharkhand 9398 3968 6855 3756 7289 1983
11 Orissa 2816 13431 15241 9670 16311 5899
12 West Bengal 22531 27350 36581 36853 42834 18080
13 Arunachal Pradesh 806 864 1219 1857 2106 621
14 Assam 7003 15548 25768 49595 30912 31421
15 Manipur 2196 682 1313 416 1881 157
16 Meghalaya 2515 2171 3789 1962 2174 821
17 Mizoram 3970 1174 5180 18255 16455 5597
18 Nagaland 981 2332 3851 5549 3358 1343
19 Tripura 2021 4316 3227 5616 5851 1968
20 Sikkim 120 2140 3994 1750 2208 168
21 Andhra Pradesh 34500 31996 66463 66050 59750 36376
22 Karnataka 29648 29958 19478 27129 42420 26052
23 Kerala 21394 50291 16434 30586 30144 27738
24 Lakshadweep 0 127 0 292 0 0
25 Pondicherry 05 219 146 187 854 152
26 Tamil Nadu 11017 24028 19159 20055 25216 22652
27 Dadra & Nagar Haveli 0 61 0 0 0 0
28 Goa 3556 1715 1670 801 1389 185
29 Gujarat 1717 2236 8581 17947 13520 7555
30 Maharashtra 28182 15498 25040 30928 27182 9924
31 Chattishgarh 7254 19815 18347 17348 17719 4179
32 Madhya Pradesh 10947 23683 40539 15365 22332 9186
33 Uttaranchal 6881 16825 10471 10948 10962 8507
34 Uttar Pradesh 42652 57847 64900 45322 51123 22534
Total 361005 471458 530025 567676 595451 337266
*Up to December 2007
152
Annexure 10.3
LIST OF TECHNICAL AGENCIES APPROVED UNDER SFURTI
Sl. Name of Technical Agency Location

No.
1. Cluster Pulse Ahmedabad
2. Small Industries Product Promotion Organisation (SIP- Madurai.

PO)
3. NABARD Consultancy Services Mumbai
4. TERI (The Energy and Resource Institute) New Delhi
5. North Eastern Industries Consultants Ltd. Tripura
6. West Bengal Consultancy Organisation Ltd. (WEBCON) Kolkata
7. Indian School of Livelihood Promotion. Indore
8. Xavier Institute of Social Services Ranchi
9. Xavier Institute of Management Bhubhaneswar.
10. Indian Institute of Forest Management. Bhopal
11. Entrepreneurship Development Institute of India Ahmedabad
12. National Institute for Entrepreneurship & Small Business Noida

Development (NIESBUB)
13. National Institute for Small Industry Extension Training Hyderabad

(NI-MSME)
14. Indian Institute of Entrepreneurship Guwahati
15. Indian Institute of Crafts & Design (IICD) Jaipur
16. Indian Institute of Rural Management (IIRM) Jaipur
17. Kumarappa National Handmade Paper Institute Jaipur
18. Central Bee Research & Training Institute Pune
153
Annexure - 10.4
LIST OF 124 CLUSTERS APPROVED UNDER SFURTT

(KHADI – 34; COIR – 26 AND V I - 64)
A. KHADI CLUSTERS (34)

Sl Name of the Place Name & Location of Name of the Activity Name of the I.A.
No the Cluster
Jammu and Kashmir
1 Srinagar Bandipora Woollen Wool khadi produc- Kashmir Khadi
Khadi Cluster tion (Tweeds, Chaddar, Sangh, Srinagar
Shawls, Hosiery, Nam-
da, Pashmina)
2 Pulwama Bandipora Wollen Wool khadi production Bhartiya Khadi
Khadi Cluster ( Chaddar, Shawls, Ashram
Dresses Namda, Ho-
siery and Tweeds)
Himachal Pradesh
3 Kullu Tenurpur Woollen Wool khadi produc- Himachal Khadi
Khadi Cluster tion (Tweeds, Chaddar, Mandal, Kullu
Shawls)
Haryana
4 Kurukshetra Kurukshetra Cotton Cotton khadi (Towel, Khadi Gramodyog
Khadi Cluster Dari, Bed dari ) Mandal, Kuruk-
shetra
Punjab
5 Amritsar Amritsar Woollen Kha- Production of me- Kshetriya Shri
di Cluster rino wool and desi Gandhi Ashram,
wool ( Shirting, Coat- Amritsar
ing, Tweed, Hosiery,
Readymade Garments,
Blankets, Namda)
6 Jalandhar Jalandhar Cotton Production of Cotton Sutlej Khadi Man-
Khadi Cluster Khadi Garments dal, Nakodar, Pun-
jab
Rajasthan
7 Bassi Bassi Khadi Cluster Cotton Khadi and Poly- Khadi Gramodyog
vastra ( Shirting, Coat- Saghan Vikas
ing, Bedsheets, Dari) Samiti, Bassi
154
No the Cluster
8 Bikaner Bikaner Khadi Cluster Cotton khadi (Dari, Khadi Mandir,
Shirting, Coating, Bed- Bikaner
sheets, Towels, Dust-
ers)
9 Jaipur Jhalawar Khadi Clus- Production of Khadi Vinoba Sewa Sami-
ter Garments ti, Jaipur
Uttaranchal
10 Haldwani Haldwani Khadi Clus- Cotton, silk, wool and Kshetriya Shri Gan-
ter Polyvastra (Shirting, dhi Ashram, Hald-
Coating, Sarees, Bed- wani
sheets, Daris, Blankets,
etc.)
Madhya Pradesh
11 Tikamgarh Tikamgarh Khadi Clus- Woollen, Silk, Polyvas- Khadi Ashram,
ter tra and Cotton ( Daris, Tikamgarh
Poly Khadi, Bedsheets,
Towels, Dusters, Silk
Sarees)
Gujarat
12 Rajkot Vadhwan Polyster Production of Khadi Khadi Gramodyog
Cluster Polyvastra Sangh (Saman-
vay), Rajkot
13 Rajkot Cotton Khadi Cluster Cotton khadi produc- Saurashtra Ra-
tion ( Daris, Poly chanatmak Samiti,
khadi, Bedsheets, Tow- Rajkot
els, Dusters, Silk Patola
Sarees)
Maharashtra
14 Nanded Swami Ramanand Khadi and Polyvas- Marathwada Khadi
Tirth Khadi Cluster tra (Daris, Poly khadi Samiti, Nanded
,Bedsheets, Towels,
Dusters)
Karnataka
15 Hubli Belur Khadi Cluster Cotton Khadi Polyvas- Karnataka Khadi
tra and muslin produc- Gramodyog Sangh,
tion.(Cotton khadi, silk Hubli
khadi, National Flag,
muslin shirting, poly
silk shirting DT and
bunting)
155
No the Cluster
16 Dharwad Hebbally Cotton Khadi Cotton Khadi and Poly- Dharwad Taluka
Cluster vastra (Lungies, Tow- Hebbally Kshetriya
els, Bedsheets, Dress Seva Sangh
Materials, DT* khadi
for National Flag, ST**
khadi ).
Andhra Pradesh
17 Srikak-ulam Srikakulam Cotton Cotton khadi Gram Swarajya
Khadi Cluster Sangha, Srikaku-
lam
18 Metpalli Sircilla Khadi Cluster Cotton khadi and silk Metpalli Khadi Gra-
(Cotton khadi, silk kha- modyog Pratisthan,
di, DT, ST Muslin, Shirt- Metpalli
ings, Buntings).
Tamil Nadu
19 Tirunelveli Sankarankovil Khadi Cotton and silk kha- Sankarankovil Sar-
Cluster di (Dhoties, Hand- vodaya Sangh,
karchiefs, Bedsheets, Sankarankovil
Sarees, Checked
Lungies, Readymade
items)
20 Coimbatore Coimbatore Khadi Production of Khadi Av a r a m p a l a y a m
Cluster Garments Sarvodaya Sangh,
Coimbatore
21 Coimbatore Sulur Khadi Cluster Cotton Khadi and Tamil Nadu Khadi
Polyvastra (Shirting, & V.I. Board, Chen-
Dhoties, Towels, Silk nai
Sarees, Bedsheets, Pil-
low Covers and Chadd-
ars).
Pondichery
22 Pondicherry Dist. Pondicherry Khadi Cotton and Silk Pondicherry Sar-
Cluster (Cotton Khadi, Silk vodaya Sangh &
Khadi, Shirtings, Sa- Pondicherry Khadi
rees, Towels , Dhoties & V.I. Board.
and Lungies)
Kerala
23 Ernakulam Thalappilly Cotton Cotton and muslin Kerala Khadi & VI
Khadi Cluster (Cotton Dhoties, Bed- Association, Co-
sheets, Shirts , Lungies chin
, Coatings and Towels)
156
No the Cluster
24 Thiruvanathapuram Thiruvanathapuram Cotton , muslin and Kerala Khadi & VI
Khadi Cluster polyvastra Dhoties, Board, Thiruvana-
Bedsheets, Shirts, thapuram
Coatings, Kupaddam
and Towels)
Bihar
25 Gaya Nawadah Khadi Clus- Cotton khadi (Cotton Gram Nirman Man-
ter Dhoties, Chaddars, dal, Gaya
Gamchas, Thans)
Jharkhand
26 Ranchi Palamu Khadi Cluster Khadi, Polyvastra and Chotanagpur Khadi
Wool (Woollen Blan- Gramodyog Sanst-
kets, Ashani, Kambal han, Tiril
Patti, Cotton Khadi)
West Bengal
27 Murshidabad and Birbhum Behrampore (Jan- Cotton and Silk Khadi Bharat Khadi
gipur) Cotton Khadi ( Silk Khadi Fabric, Cot- Sewak Sangh,
Cluster ton Khadi, Muslin Yarn, Murshidabad
Silk Yarn , Cotton and
Muslin products)
28 Malda Malda Khadi Cluster Silk ( Silk Sarees, Shirt- Diamond Silk Kha-
ings, Garad, Silk Tie, di Society, Sujapur
Spun varieties) Dist. Malda
Assam
29 Nalbari Mukalmua Silk Khadi Production of Eri Silk, Barkhetri Unnayan
Cluster Muga Silk and pat Silk Samity
products
Nagaland
30 Dimapur Dimapur Khadi Clus- Endi Silk, Muga Silk, Nagaland Khadi &
ter Endi Shirting, Endi VI Sangh
Chaddars, Endi shawls
Uttar Pradesh
31 Gorakhpur Gorakhpur Cotton Production of Khadi Kshetriya Shri Gan-
Khadi cluster Garments hi Ashram
Sultanpur Tikarmafi Woollen & Wool (Woollen Blan- Kshetriya Shri Gan-
32 Cotton Khadi Cluster kets, Shawls etc.) hdi Ashram, Sultan-
pur, UPKVIB
33 Rae Bareli Rae Bareli Khadi Clus- Khadi cotton and Poly- Swarajya Ashram,
ter vastra Kanpur
34 Lucknow Baharaich Khadi Clus- Production of Khadi Kshetriya Shri Gan-
ter Garments dhi Ashram
157
B. NAME OF COIR CLUSTERS (26)
Sl. State Name of cluster & Nature of activity Name of the I.A.
No. location
1 Kerala Chirayinkeezhu Coir Fibre extraction and Coir Project Office,
Cluster, Thiruvanan- spinning Chirayinkezhu
thapuram District
2 Beypore Coir cluster, Fibre extraction and Coir Project Office,
Kozhikode District spinning Kozhikode
3 Mangad Coir Cluster, Fibre extraction and Coir Project Office,
Kollam District spinning Kollam
4 Vembanadu Coir Fibre extraction and Coir Project Office,
Cluster, Kottayam spinning Kottayam
District
5 Tamil Nadu Salem Coir Cluster, Fibre extraction and District Industries
Salem District spinning Centre, Salem
6 Singampuneri Coir Fibre extraction, District Industries
Cluster, Sivagangai Spinning and prod- Centre, Sivagangai
District uct manufacturing
7 Periyakulam Coir Fibre extraction and District Industries
Cluster, Theni spinning Centre, Theni
8 Pattukottai Coir Clus- Fibre extraction, District Industries
ter, Thanjavur District spinning and prod- Centre, Thanjavur
uct manufacturing
9 Cuddalore Coir Clus- Fibre extraction, District Industries
ter, Cuddalore District spinning and prod- Centre, Cuddalore
uct manufacturing
10 Vellore Coir Cluster, Fibre extraction, District Industries
Vellore District spinning and curled Centre, Vellore
coir
11 Karnataka Hassan Coir Cluster, Fibre extraction, Karnataka State Coir
Hassan District spinning, pith ma- Co-operative Feder-
nure and product ation Ltd., Bangalore
manufacturing
12 Channapattanam Fibre extraction, Karnataka State Coir
Coir Cluster, Banga- spinning and product Development Corpo-
lore Rural District manufacturing ration Ltd.,Bangalore
13 Gubbi Coir Cluster, Fibre extraction, Karnataka State Coir
Tumkur District spinning and product Co-operative Feder-
manufacturing ation, Bangalore
14 Arsikere Coir Cluster, Fibre extraction, Karnataka State Coir
Hassan District spinning, pith ma- Co-operative Fed-
nure and product eration,
manufacturing Bangalore
158
Sl. State Name of cluster & Nature of activity Name of the I.A.
No. location
15 Andhra Coir Cluster, East Fibre extraction, APITCO Ltd.,
Pradesh Godawari District spinning and product Hyderabad
manufacturing
16 Srikakulam Coir Clus- Fibre extraction, APITCO Ltd.,
ter, Srikakulam Dis- spinning and rope Hyderabad
trict making
17 Orissa Alanahat Coir Cluster, Fibre extraction, Orissa Co-operative
Jagatsinghpur District spinning and product Coir Corporation Ltd
manufacturing
18 Sakhigopal Coir Clus- Fibre extraction: The Orissa Coopera-
ter, Puri District Rope, Yarn, Mats, tive Coir Corporation
Broom and Toys Ltd. Details to be
making obtained from State
Government
19 Goa Morgim Coir Cluster, Spinning and prod- State Directorate of
North Goa District uct manufacturing Craftsman Training
20 Lakshadweep Androth Coir Cluster, Fibre extraction, Director of Industries,
UT of Lakshadweep spinning and product UT of Lakshadweep,
manufacturing Kavaratti
21 Pondicherry Pondicherry Coir Fibre extraction, Pondicherry Pudu-
Cluster, Pondicherry spinning and product mai Handicrafts Ar-
District manufacturing tisans Co-operative
society Ltd.
22 Assam Collection of Husk, Manas Coir Barnarddi Gram Un-
Fihre Extraction, cluster,Guwahati nayan Samiti, Guwa-
Spinning, Dying & hati
Crushed Coir
23 West Bengal Coir Yarn, Door Mats, Dhanchetbria Coir M/s Bartala Human
Coir Mattress& Rough Cluster, South 24 Welfare Education
Fibre Paraganas Society, South 24
Paraganas
24 Gujarat Coir Mats, Rope, Coir Mahuva Coir Cluster Shri Guruji Educa-
Garden Articles, etc. tional and Charitable
Trust, Bhavnagar,
Gujarat
25 Andaman & Coir Fibre, Coir Mat- Rangat-Middle An- A&N Integrated De-
Nicobar ting Coco Logs, Coir daman Coir Cluster velopment Corpora-
PVC, etc. tion
26* Tripura* Information Awaited Tripura Coir Cluster -
* ‘In principle’ approval accorded by SSC in its 4th Meeting
159
C. NAME OF VILLAGE INDUSTRY CLUSTERS (64)
Sl Name of the Name & Location Name of the Activ- Name of the I.A.
No. Place of the Cluster ity
Andhra Pradesh
1 Devara Konda Devara Konada Manufacturing of Village Development
Jewels cluster jewelery items. Society, A.P.
2 Ananatapur Hindupur Agarbatti Agarbatti Shree Neela-
Cluster kanteswari Khadi Silk
Gramodyog Sanstha
3 Chittor Chittor, Wood Carv- Wood Carving Kalasruti
ing Craft Cluster
4 Vizianagaram Roofing Tiles Red clay Tiles Dolphin Roofing Tiles
Cooperative Society
Ltd, Kantakapalli Vil-
lage
Assam
5 Barpeta Barpeta Cane & Cane & Bamboo Anchalik Gram Un-
Bamboo Crafts Crafts ayan Parishad
Cluster
6 Dhubri Lakhimani Cane & Bamboo Products Gauripur Vivekanan-
Bamboo Cluster da Club
7 Nalbari Cane & Cane & Bamboo Bamboo Products Barnarddi Grama
Bamboo Khadi Cluster Unnayan Samiti, Nal-
Cluster bari
Bihar
8 Muzaffarpur Bee Keeping Clus- Bee Keeping Cluster Tirhut Dugdh Ut-
ter padak Sahakari
Sangh Ltd.
9 Gopal Ganj Mehsi River shell Shell Button Prod- Gopal Gani Zilla
Button ucts Khadi Gramodyog
Sangh
Goa
10 Panji Fruit & Vegetable Fruit & Vegetable Nirmal Vishwa
Processing Cluster Processing
Haryana
11 Karnal Handmade Paper, Handmade Paper Khadi Ashram, Ram
Nagar, Karnal, Hary-
ana
12 Hissar Wooden Beads Wooden Beads clus- Gramin Sewa Man-
cluster, Bhiwani ter, Bhiwani dal
13 Ambala Leather goods, Am- Manufacturing of Society for National
bala Leather Items Education, Entrepre-
neurship & Develop-
ment
160
Sl Name of the Name & location Name of the activ- Name of the I.A.
No. Place of the cluster ity
Himachal Pradesh
14 Una Una Plant Fiber Plant Fiber Society for Advance-
Cluster ment of Village Econ-
omy (SAVE)
Jammu & Kashmir
15 Baramulla Baramulla Ajas Namda, Gabba, Hurmukh Khadi
Manda Gabba Em- Embroidery/Crewal/ Gram Udyog Sanst-
broidery Cluster, Carding/Dying & Fin- han, Srinagar
Crewel ishing
16 Jammu Jammu Beekeeping Bee Keeping Khadi Gramodyog
Cluster Sewa Sansthan,
Jammu
17. Ladakh S e a b u c k - t h o r n Seabuckthorn Ladakh Autonomous
Cluster, Ladakh Hill Dev. Council,
Leh
Maharashtra
18 Sindhudurg Food Processing Food Processing Konkan Nisarga
Cluster Manch, Sindhudurg
19 Chandrapur Gadchiroli Pottery Gadchiroli Pottery Gramodaya Sangh
Cluster Cluster
20 Wardha Amaravathi Wardha Bee Keeping Pragathi Bahudeshya
Beekeeping Cluster Sanstha, Wardha
Orissa
21 Ganjam Mahatma Gandhi Manufacturing of Mahatma Gandhi
Gramodyog Samity, Bamboo Craft Items Gramodyog Samity,
Khurda Gandhi Vihar, Arika-
ma, Khurda, Orissa
22 Koraput Umri Leather Clus- Leather Goods Prod- Dr. Ambedkar Leath-
ter uct er Industrial Co. op.
Soc. Ltd.
Rajasthan
23 Dausa Dausa Pottery clus- Pottery Kshetriya Khadi Gra-
ter modyog Samity
24 Bikaner Khadi Mandir Bi- Pugal Textile Crafts Bikaner Vishudh
kaner Cluster Khadi Gramodyog
Samiti, Bikaner
Tamilnadu
25 Thanjavur Nachyarkoil Brass Brass Metal Thanjavur West Sar-
Metal Production vodaya Sangh
Cluster,
26 Dindigul Siddha & Ayurveda Siddha & Ayurveda Lakshmi Seva
Cluster, Dindigul Medicines Sangam, Gandhi-
gram
27 K a n y a k u m a r i Pottery, Kanyaku- Curi Pot, Round Pot, Centre for Social De-
Pottery Cluster mari Garden Pot velopment Nagercoil,
Tamil Nadu
161
28 Marthandam Marthandam Bee- Honey Processing Marthandam Bee-
keeping Cluster keepers Cooperative
Society, Marthandam
(TNKVIB)
29 Coimbatore Thiruchandur Agar- Manufacturing of Avarmplalayam Sar-
bathi Cluster Agarbathi vodaya Sangh Coim-
batore Dist.
Uttaranchal
30 Chamoli Bee keeping cluster Bee Keeping Dasoli Gram Swar-
jya Mandal , Gope-
shwar, Chamoli
Uttar Pradesh
31 Lucknow Chinhat Pottery Pottery Khadi Gramodyog
Cluster (luw) Sewa Sansthan,
Chinhat, Lucknow
32 Kanpur Kanpur Dehat Leather Goods Tarun Gramodaya
Leather Goods Vikas Samiti, Kanpur
Cluster (luw)
33 Moradabad Horns & Bone Prod- Horns & Bone Prod- Rudayan Gram Vikas
ucts ucts Ashram
34 Sultanpur Amla Processing Amla Processing Centre of Technology
(Luw) (Luw) & Entrepreneurship
Development
35 Kannauj Kannauj Agarbathi Kannauj Agarbathi Chakor Gramodyog
cluster cluster Sewa Sansthan
36 Varanasi Mauri Cane & Bam- Cane & Bamboo Khadi Gramodyog
boo Cluster Items Products Vikas Samiti, Sind-
hora, Varanasi
37 Lucknow Chikan Handicraft Manufacturing of Bhartiya Hastshilp
Chikan Handicraft Vikas Sansthan, Luc-
Items know
38 Saharanpur Honey processing Bee Keeping Mahalaxmi Khadi
cluster Gramodyog Sans-
than, Nakur, Saha-
ranpur
39 Lucknow Chikan Cluster, Luc- Production of Chikan Society for Partici-
know Saree, Chikan Cloth patory Research &
etc. Development Action
(SPREDA)
Tripura
40 Tripura West Gandhigram Crafts Bamboo Products Tripura Bamboo and
Processing cluster cane Development
Center (TRIBAC)
41 Agartala Bee-Keeping clus- Bee keeping Tripura, KVIB
ter, Agartala
162
West Bengal
42 Jalpaiguri Bamboo cluster Bamboo Products Khagrabari Rural En-
ergy Development
Association (KRE-
DA)
43 North 24 Parga- Bee Keeping clus- Bee Keeping cluster West Bengal Bee
nas ter Keeper’s Association
44 Murshidabad Cane & Bamboo Cane & Bamboo Satish Sarbodhaya
Cluster Items Products Varati, W.B.
Chhattisgarh
45 Raipur Ektal Bell Metal Dhokra Casting, Handicraft Develop-
Cluster (Dhokra Bell Metal Ware by ment Board, Chhat-
Casting), process of Hot Wax tisgarh
casting
Karnataka
46 Chamarajnagar Sisal Fibre Clusters Table mats, Foot- IDPMS, Bangalore
mats, Runners, Pen-
stand Fibre extract
from leaves from
plant
47 Mysore Mysore Wood Work Wooden Toys, Table Karnataka Handi-
ware & decorative crafts Artisans Wel-
items fare Association,
Mysore
Kerala
48 Wayanad Kalpetta Bamboo Different Bamboo Uravu Indigenous
craft Cluster products like Lamp Science & Technol-
Shed, (Bamboo ogy Study Center,
Sticks, Basket, Can- Wayanad
dle Stand, Hair clip)
49 Kozhikode Bee Keeping Indus- Processing of Honey Kozhikode Sarvoda-
try & Honey Pro- ya Sangh, Kerala
cessing
Punjab
50 Patiala Phulkari Cluster Suits, Phulkari Fold- The Patiala Handi-
er, Phulkari Jaket, craft W. Co Ind Soci-
Hand Fans ety Ltd.
51 Hoshiarpur Wooden handicrafts Decorative items, The Rural Environ-
cluster Multiple use boxes, mental Enterprises
Jewellery boxes Development Soci-
ety, Hoshiarpur.
52 Ferozpur Desi Punjabi Juti Manufacturing of Regional Centre for
Shoes & Chappal Entrepreneurship
Development
163
Madhya Pradesh
53 Bhopal Balaghat Bam- Bamboo Furniture, Madhya Pradesh
boo crafts Cluster, Accessories like State Minor Forest
Balaghat lamp, flower-wase (Tr. & Dev.) Co-oper-
etc,. ative Federation Ltd.,
Bhopal
54 Hoshangabad Lac Cluster Ho- Stick lac, Processed Jilla Vanopaj Sangh,
shangabad lac, Seed lac Hoshangabad
Gujarat
55 Valsad Neera Cluster Production of Neera Gujarat Neera & Tal-
padarth Gramodyog
Sangh, Valsad
Arunachal Pradesh
56 Lower Subansiri Ziro Traditional Traditional Dress Arun Kutir Udyog
Dress Making Clus- making Cooperative Society,
ter Lower Subansiri
Mizoram
57 Aizwal Cane & Bamboo Cane & Bamboo Hnam Chhantu Pawl,
Clusters Products Aizwal
MEGHALAYA
58 Jaintia Hills Development of Bamboo Products, Women’s Group &
Traditional Bamboo Dry Flower manufac- Handicraft Multipur-
& Handicrafts, Jain- turing pose Co-Operative
tia Hills Ltd, Mawkyndeng,
Meghalaya
Manipur
59 Thoubal Carpentry Cluster, Carpentry products Volunteers for Ru-
Thoubal Dist like Dining Tables, ral Health & Action
Chairs, Looms, Cots, (VORHA), Manipur
Dressing Table &
Tools
60 Chandel Pallel Cane and Cane & Bamboo People Action for
Bamboo cluster Items Products Rural Development
Organisation, Pallel,
Chandel, Manipur
61 Ukhrul Ukhrul Pottery clus- Manufacturing of Action for Rural De-
ter, Manipur pottery items velopment, Manipur
Nagaland
62 Montown Montown Cluster, Horn Beads Konyak Citizen Wom-
Nagaland en Organisation
Sikkim
63 South Sikkim Bee keeping cluster, Bee keeping State Institute of Ru-
South Sikkim ral Development
Note: In principle approval has been accorded to 1 Cluster from Jharkhand by SSC in its 3rd
Meeting
164
Annual Report 2007-2008
Chapter I
An Overview
1.1 BACKGROUND of India (Allocation of Business) Rules,

1961. Pursuant to this amendment, Ministry
1.1.1 Micro, small and medium enterprises of Agro and Rural Industries and Ministry
(MSMEs), including khadi and village/ of Small Scale Industries were merged
rural enterprises constitute an important into a single Ministry, namely, “Ministry of
segment of Indian economy in terms of Micro, Small and Medium Enterprises.”
their contribution to country’s industrial The Second Schedule of the Government
production, exports, employment and of India (Allocation of Business) Rules,
creation of an entrepreneurial base. The 1961, indicates the business allocated to
Government of India established the Ministry the Ministry of Micro, Small and Medium
of Small Scale Industries and Agro & Rural Enterprises (Annexure-1.1).
Industries (SSI&ARI) in October, 1999 as the
nodal Ministry for formulation of policies and 1.1.3 Although, the primary responsibility
Central sector programmes/schemes, their for promotion and development of MSMEs
implementation and related coordination lies with the State Governments. However,
and for supplementing the efforts of the the Government of India [in recognition of
States/Union Territories for promotion potential of these enterprises both in terms of
and development of these industries in creation of wealth and employment as well as
the country. The Ministry of SSI&ARI was the need for country-wide unified framework
bifurcated into two separate Ministries, of policies and measures for their promotion
namely, Ministry of Small Scale Industries and development] has always taken active
and Ministry of Agro and Rural Industries in interest in supplementing the efforts of State
September, 2001. Governments through various policies and
schemes. The role of the Ministry of Micro, Small
1.1.2 Subsequent to enactment of “Micro, and Medium Enterprises is mainly to assist the
Small and Medium Enterprises Development States in their efforts to promote growth and
Act (MSMED) 2006” by the Parliament, the development of MSMEs, for enhancing their
Hon’ble President under Notification dated competitiveness in an increasingly market-led
9th May 2007 has amended the Government economy and for enabling them in generating
1
MSME
additional employment opportunities. Besides, is implemented by the Khadi and Village

the Ministry also attempts to address common Industries Commission (KVIC), the PMRY
concerns of these enterprises and undertakes is implemented by the State Governments
policy advocacy on behalf of the sector on through the District Industries Centres (DICs).
issues critically affecting their sustenance and
growth. The specific schemes / programmes
1.2 ORGANISATIONS OF THE
undertaken by the Ministry and its organisations
MINISTRY
seek to facilitate / provide one or more of the
following :
1.2.1 The formulation and implementation
l adequate flow of credit from finan- of policies and programmes/projects/
cial institutions/banks; schemes is undertaken by the Ministry with
the assistance of its attached office, public
l support for technology upgradation sector enterprise, statutory bodies and
and modernisation; autonomous organisations, namely, Micro,
l integrated infrastructural facilities; Small and Medium Enterprises-Development
Organisation (MSME-DO), the National Small
l modern testing facilities and quality
Industries Corporation Ltd. (NSIC), the Khadi
certification;
and Village Industries Commission (KVIC),
l access to modern management the Coir Board and three national level
practices, entrepreneurship develop- entrepreneurship development institutes, viz.
ment and skill upgradation through National Institute for Micro, Small and Medium
appropriate training facilities; Enterprises (NI-MSME), Hyderabad; National
l support for product development, Institute for Entrepreneurship and Small
design intervention and packaging; Business Development (NIESBUD), NOIDA;
and Indian Institute of Entrepreneurship (IIE),
l welfare of artisans and workers; Guwahati.
l assistance for better access to
domestic and export markets; and 1.2.2 Government has set up the National
Commission For Enterprises in the
l cluster-based measures to promote
Unorganised Sector (NCEUS) to suggest
capacity-building and empowerment
of the units and their collectives, in policies and programmes for addressing the
addition to all or some of the above- wide range of issues affecting the productive
mentioned supports. potential of the large segment of unorganised
micro and small productive units.
1.1.4 In addition, the Ministry has been
implementing two nation-wide employment
1.2.3 Pursuant to enactment of MSMED
generation programmes, namely, Rural
Employment Generation Programme (REGP) Act, 2006 and framing of Rules thereunder,
and Prime Minister’s Rozgar Yojana (PMRY). the Government has also established
Both these programmes are credit-linked capital a National Board for Micro, Small and
subsidy schemes, which are implemented Medium Enterprises (NBMSME). The Board
through commercial banks. While the REGP examines the factors affecting promotion and
2
development of MSMEs and reviews policies 1.4 NATIONAL SMALL INDUSTRIES

and programmes relating to these enterprises CORPORATION (NSIC) LTD.
with a view to make recommendations on
these matters to the Government. 1.4.1 The National Small Industries
Corporation (NSIC) Ltd. was established by
1.3 MICRO, SMALL AND MEDIUM the Government in 1955 as a Public Sector
ENTERPRISES-DEVELOPMENT Company. NSIC is headed by a Chairman-
ORGANISATION (MSME-DO) cum-Managing Director and managed by
a Board of Directors. The main function of
1.3.1 The Office of the Development the Corporation is to promote, aid and foster
Commissioner (Micro, Small and Medium the growth of micro and small enterprises in
the country, generally on commercial basis.
Enterprises) [earlier known as the O/o the
NSIC provides a variety of support services
DC(SSI)], is also known as the Micro, Small
to micro and small enterprises to cater to their
and Medium Enterprises-Development
different needs in the areas of raw material
Organisation (MSME-DO). It is an apex
procurement, product marketing, credit
body, headed by the Additional Secretary
rating, acquisition of technologies, adoption
& Development Commissioner (MSME),
of modern management practices, etc.
for assisting the Ministry in formulating,
NSIC implements its various programmes
coordinating, implementing and monitoring and projects throughout the country through
policies and programmes for the promotion its 9 Zonal Offices, 35 Branch Offices, 17
and development of MSMEs in the country. Sub Offices, 5 Technical Services Centres,
In addition, the MSME-DO provides a 3 Technical Services Extension Centres,
comprehensive range of common facilities, 2 Software Technology Parks and 1 office
technology support services, marketing outside India . The Corporation is an ISO:
assistance, etc., through its network of 9001-2000 Company and has also executed
30 Micro, Small and Medium Enterprises- a number of turnkey projects in many
Development Institutes (MSME-DIs), developing countries.
28 Branch MSME-DIs (Br.MSME-DIs)
(erstwhile SISI & Branch SISI), 7 Field 1.5 KHADI & VILLAGE INDUSTRIES
Testing Stations (FTs), 4 Regional Testing COMMISSION (KVIC)
Centres (RTCs), 2 Small Entrepreneurs
Promotion and Training Institutes (SEPTIs) 1.5.1 The Khadi & Village Industries
and 1 Hand Tool Design Development and Commission (KVIC), established under the
Training Centre. The MSME-DO also has Khadi and Village Industries Commission
a network of Tool Rooms, Process-cum- Act, 1956, is a statutory organisation
Product Development Centres (PPDCs) engaged in promotion and development of
and technology and training support khadi and village industries for providing
institutes which are run as autonomous employment opportunities in the rural areas.
bodies registered as societies under the The KVIC has been identified as one of the
Societies Registration Act. major organisations in the de-centralised
3
MSME
sector for generating sustainable rural non- preventing unfair competition among
farm employment opportunities at low per producers and exporters; assisting the
capita investment. It undertakes activities establishment of units for the manufacture
like skill improvement, transfer of technology, of products; promoting co-operative
research & development, marketing, etc., organisations among producers of husk,
in the process of generating employment/ coir fibre, coir yarn and manufacturers
self-employment opportunities in the rural of coir products; ensuring remunerative
areas. returns to producers and manufacturers,
etc.
1.5.2 The KVIC through its programmes
and policies seeks to achieve - the social 1.7 NATIONAL ENTREPRENEUR-
objective of providing employment in rural SHIP DEVELOPMENT INSTI-
areas; the economic objective of producing TUTES (EDIs)
saleable articles; and the wider objective of
creating self-reliance amongst the people 1.7.1 Entrepreneurship development
and building up a strong rural community and training is one of the key elements
spirit. for the promotion of micro, small and
medium enterprises (MSMEs), particularly
1.6 COIR BOARD for creation of new enterprises by first
generation entrepreneurs. To undertake
1.6.1 The Coir Board is a statutory body this task on regular basis, the Ministry has
established under the Coir Industry Act, set up 3 national-level Entrepreneurship
1953 for promoting the overall development Development Institutes, viz; National Institute
for Micro, Small and Medium Enterprises
of the coir industry and uplifting the living
(NI-MSME) at Hyderabad, National Institute
conditions of the workers engaged in this
for Entrepreneurship and Small Business
traditional industry. The Coir Board consists
Development (NIESBUD) at NOIDA and
of a full-time Chairman and 39 Members
Indian Institute of Entrepreneurship (IIE)
representing all stakeholders in the coir at Guwahati, as autonomous societies.
industry. These institutes are engaged in developing
training modules, undertaking research and
1.6.2 The functions and activities of training and providing consultancy services
the Board inter-alia include undertaking for entrepreneurship development and
scientific, technological and economic promotion of MSMEs.
research and development activities;
collecting statistics relating to exports 1.8 NATIONAL COMMISSION FOR
and internal consumption of coir and coir ENTERPRISES IN THE UNOR-
products; developing new products and GANISED SECTOR (NCEUS)
designs; undertaking publicity for promotion
of exports and domestic sales; marketing of 1.8.1 The National Commission for
coir and coir products in India and abroad; Enterprises in the Unorganised Sector
4
(NCEUS) was set up in September, 2004. (NBMSME), with the Minister (MSME) as
The term of the Commission has now been its Chairman, Member (VSE), Planning
extended up to 30th September, 2008. The Commission as the Deputy Chairperson,
Commission has been given the mandate 44 other Members representing
to examine the problems of enterprises various stakeholders and Development
in the unorganised sector and suggest Commissioner (MSME) as the Member
measures to overcome them. It consists of - Secretary. The main functions of the
a Chairman, three full time Members, two Board are to examine factors affecting
Part-time Members and an Advisory Board the promotion and development of micro,
consisting of eminent experts from various small and medium enterprises; to review
fields relating to the unorganised sector. the policies and programmes of the Central
Government in regard to facilitating the
1.9 NATIONAL BOARD FOR MICRO, promotion and development and enhancing
SMALL AND MEDIUM ENTER- the competitiveness of such enterprises; to
PRISES (NBMSME) assess impact thereof on such enterprises;
and to make recommendations on these
1.9.1 In exercise of powers conferred matters or on any other matter referred to
under Section 3 of MSMED Act, 2006, the it which, in the opinion of the Government,
Government under notification dated 15th is necessary or expedient for facilitating the
May, 2007 has established National Board promotion and development and enhancing
for Micro, Small and Medium Enterprises the competitiveness of the MSMEs.
5
Chapter II
RECENT POLICY INITIATIVES AND
OTHER REFORMS
2.1 RECENT POLICY INITIATIVES as provided for in Clause (c) sub-

section (1) of Section 8.
2.1.1 Implementation of the MSMED Act- v) Notification No. S.O.1909 (E) dated
The Micro, Small and Medium Enterprises 7 November 2006 declaring DICs
Development (MSMED) Act, 2006 came into in the States/UTs as ‘Authority’ with
force w.e.f. 2 October 2006. Subsequently, which the EM could be filed by the
a number of notifications have been issued medium enterprises engaged in pro-
under the Act to facilitate implementation of viding or rendering services as pro-
various prrovisions of the Act as listed below: vided for in Clause (b) sub-section
(1) of Section 8.
i) Principal Notification No. S.O.1154 vi) Notification No. S.O.1643 (E) dated
(E) dated 18 July 2006 notifying that 30 September 2006 for the format
MSMED Act becomes operational of Memorandum to be filed by the
from 2nd October 2006. enterprises, procedure of its filing
and other matters incidental thereto
ii) Notification No. S.O.1622 (E) dated
as provided for in sub-section (2) of
27 September 2006 for the consti-
Section 8.
tution of the Advisory Committee
as provided for in sub-section (2) of vii) Notification No. S.O.1722 (E) dat-
Section 7. ed 5 October 2006 for exclusion of
items while calculating the invest-
iii) Notification No. S.O.1642 (E) dated
ment in plant and machinery as pro-
29 September 2006 for classifying
vided for in Clause (a) of sub-section
enterprises as provided for in sub-
(1) of Section 7.
section (1) of Section 7.
viii) Notification No. S.O. 766(E) dated
iv) Notification No. S.O.1636 (E) dated
15 May 2007 for constitution of the
29 September 2006 declaring DICs
NBMSMEs as per Section 3.
in the States/UTs as ‘Authority’ with
which the EM could be filed by the ix) Notification No. S.O. 765(E) dated
medium enterprises engaged in 15 May 2007 for dividing the country
manufacture or production of goods into six regions.
7
MSME
x) Notification No. S.O.941 (E) dated Items were reserved /de-reserved

07.6.2007 for the amendment of EM in accordance with Section 29(B) of the
format. Industries (Development & Regulation)
[I(D&R)] Act, 1951, which, inter alia, provides
xi) Notification No. G.S.R. 596(E) dat-
ed 26 September 2006 notifying the for the constitution of an Advisory Committee
Rules for National Board of Micro, under the chairmanship of the Secretary
Small and Medium Enterprises to be (SSI) [now Secretary (MSME)]. The Advisory
constituted under the Act as provid- Committee makes its recommendations
ed for in sub-section (4) of Section on the basis of the laid down procedure in
3 and Section 6 read with clause (a) the I(D&R) Act, 1951 which relates to the
and (b) of sub-section (2) of Section economies of scale, the level of employment,
29. the possibility of encouraging and diffusing
entrepreneurship in industry, the prevention
l One Notification of Rules and two
of concentration of economic power to
other Notifications are to be issued
by the State/UT Governments, de- the detriment of the common interest and
tails of which are as follows: any other issue which the Committee may
think fit. After due consultation with the
(i) Notifying the authority for filing of stakeholders, 125 items were de-reserved
Entrepreneurs Memorandum for mi- on 13 March 2007 and 79 more on 8th
cro and small enterprises. February 2008. The total number of items
(ii) Notifying the Rules for MSEFCs reserved for exclusive manufacture in micro
and and small enterprise sector now stands at
35 only.
(iii) Notifying the constitution of
MSEFCs.
2.1.3 Package for Promotion of Micro
2.1.2 Reservation / De-reservation of and Small Enterprises (MSEs) - The micro
Products in the Micro & Small Enterprise and small enterprises (MSEs) have a vital
Sector - The Policy of Reservation of Products role in the socio-economic development.
for exclusive manufacture in SSI (now The resilience of the MSE Sector to adjust
MSEs) was started in 1967. The objective of to the fast changing economic scenario is
reservation then was to protect the interests reflected in the fact that its growth rate has
of the SSI sector. However, with the gradual
always been higher. Accordingly, in order
opening up of the economy and policy of
to assist the MSEs in fully harnessing their
liberalisation, there has been progressive de-
potential by enhancing their competitiveness
reservation of a number of items reserved for
exclusive manufacture by the micro and small to face the challenges of stiff competition
scale sector. The objective of progressive (both in the domestic and global markets)
de-reservation was to provide for opportunities and in availing opportunities generated by
for technological upgradation, promotion of trade liberalization, the Government in its
exports and economies of scale, in order NCMP declared that a “major promotional
to encourage modernization and enhance package” will be announced for this segment
the competitiveness of MSEs in view of the to provide full support in the areas of credit,
liberalisation and globalisation of the economy. technological up-gradation, marketing and
8
infrastructure up-gradation in industrial and Quality Management Support for SMEs

infrastructure. Infulfillment of the assurance (vii) Enabling Manufacturing Sector to be
in the NCMP, the ‘Package for Promotion competitive through Quality Management
of Micro and Small Enterprises’ was Standards and Quality Technology Tools
announced in Lok Sabha on 27 February (viii) National Campaign for Investment in
2007 and in Rajya Sabha on 2 March 2007. Intellectual Property (ix) Market Assistance/
This promotional package, inter-alia, includes SMEs and Technology Upgradation activities
measures to address concerns in the areas – in co-operation with TIFAC/CSIR and (x)
of credit, fiscal support, cluster-based Marketing support/assistance to SMEs.
development, infrastructure, technology and These components/programmes are in
marketing and so on. Capacity building of various stages of implementation.
MSME Associations and support to women
entrepreneurs are the other important 2.1.5 Filing of Entrepreneurs’
features of this Package. Memorandum by Enterprises - In
pursuance of Section 8 of the MSMED Act,
2.1.4 The National Manufacturing 2006, an entirely new process of filing of
Competitiveness Programme (NMCP) - Entrepreneurs’ Memorandum (EM) by Micro,
The Government with an objective to support Small and Medium Enterprises (MSMEs) has
the manufacturing sector, particularly been put in place. The erstwhile process of
small & medium enterprises sector, in their SSI registration has since been done away
endeavor to become competitive, announced with. This process of filing of EM is voluntary
in its Budget for 2005-06, formation of for micro and small enterprises and medium
National Manufacturing Competitiveness service enterprises and is mandatory for
Programme (NMCP) to be designed by the medium manufacturing enterprises. Under
National Manufacturing Competitiveness the Act, the authority for receiving and
Council (NMCC) in consultation with the acknowledging the EM has been notified.
Industry. Accordingly, the NMCC in close The format for Entrepreneurs’ Memorandum
cooperation with the Ministry of MSME and (EM) and procedure of its filing has also
other stakeholders chalked out a five year been notified, and placed on the web site for
NMCP consisting of 10 point initiatives for easy access to all concerned.
development and promotion of MSMEs,
which was announced in the budget 2006- 2.1.6 Steps Taken to Discourage
07. Delayed Payments to MSEs - One of the
major issues of concern for the promotion
The said programme has 10 and development of the micro and small
components / programmes which include enterprises has been the delayed payments
(i) National Programme on Application from the buyers. To address this issue,
of Lean Manufacturing (ii) Design Clinic the erstwhile “The Interest on Delayed
scheme to bring design expertise to the Payments to Small Scale and Ancillary
Manufacturing Sector (iii) Promotion of ICT Industrial Undertakings Act, 1993” was
in Indian Manufacturing Sector (iv) Mini- subsumed in the MSMED Act, 2006, with
Tool Rooms on PPP mode (v) Technology the strengthening of the provisions. The
9
MSME
two effective measures provided under the Preference Policy, availability of credit to
provisions of said Act are - (i) Requirement MSEs, and marketing efforts of NSIC were
to specify unpaid amount with interest in the discussed in the above meetings.
annual statement of accounts (under Section
22) and (ii) Interest not to be allowed as
deduction from income” under Income-Tax
Act, 1961(under Section 23).
2.1.7 National Board for Micro, Small

and Medium Enterprises (NBMSME) - The
Board was constituted on 15 May 2007,
which is chaired by Minister (MSME), and
inter alia, includes, Member (VSE), Planning
Commission as Deputy Chairperson and six
Ministers of the State Governments, three
Meeting of the National Board for MSME in Progress
MPs, Administrator of a Union Territory, five
Secretaries to the Government of India,
Chairman of the Board of Directors,
NABARD, SIDBI and Indian Banks’
Association, one officer of the RBI, two
representatives of the Central Trade Union
Organisations, three persons of eminence
and 20 persons to represent the associations
of MSMEs. The Development Commissioner
(MSME) is the Member Secretary of the
Board. Three meetings of the Board have
so far been held in June, September and 2.1.8 AdvisoryCommittee consti
December 2007. Various issues relating to tuted under MSMED Act, 2006 - An
MSMEs inter-alia including, Procurement Advisory Committee has been constituted
on 27 September 2006 in accordance with
the provisions of Section 7(2) of the Act.
The Committee is chaired by the Secretary,
Ministry of MSME and consists of five
officers of the Central Government, three
representatives of the State Government,
one representative each of the associations
of MSMEs as Members. The Development
Commissioner (MSME) is the Member-
Secretary of the Committee. As per the
provisions of the MSMED Act, the Central
Shri Mahabir Prasad, Union Minister MSME chairing
the Second Meeting of National Board for MSME. On Government shall, prior to classifying any
his right is Dr. Syeda Hamid, Member, Union Planning class or classes of enterprises has to obtain
Commission and on left Shri Jawhar Sircar, Add.
Secretary and Development Commissioner (MSME) the recommendations of the Advisory
10
Release of the commemorative coin by the Hon’ble President of India during Golden Jubilee Celebrations
of Khadi and Village Industries Commission held at Vigyan Bhavan, New Delhi
Committee. The other functions of the Commission Act, 1956 (as amended up to
Advisory Committee, inter-alia, include 22nd March, 2006), the National Khadi and
rendering advice to Central Government on Village Industries Board was constituted and
any of the matters specified in Section 9, 10, its 1st meeting and the 2nd meeting were
11, 12 or 14 of Chapter IV of the MSMED Act, held on 8th June, 2007 and 16th January,
2006. The Advisory Committee has met two 2008 respectively to discuss the various
times i.e. on 28 September 2006 and 30 March issues related to KVI Sector.
2007 during which it made recommendations
to the Government on matters relating to 2.2.2 The year 2007-08 witnessed the
definition of MSME and filing of EM. Golden Jubilee Celebrations of KVIC. A
programme was organised at Vigyan
Bhawan, New Delhi on 19th November
2.2 NEW INITIATIVES FOR KHADI
2007. The Hon’ble President of India who
AND VILLAGE INDUSTRIES was the Chief Guest, launched One, Two
COMMISSION and Eight spindle Electronic Charkhas. The
commemorative Coin, Post Card and Inland
2.2.1 Consequent upon the amendments letters on Golden Jubilee Celebrations were
made to Khadi and Village Industries also released.
11
MSME
Launching of newly developed e-charkha (s) by the Hon’ble President of India during Golden Jubilee
Celebrations of Khadi and Village Industries Commission held at Vigyan Bhavan, New Delhi
2.2.3 Since khadi is handspun and Artisans to improve their work environment
handwoven, it provides employment at a and productivity. The second seeks to enhance
low per capita cost. No new major initiative the productivity of Khadi industry and Artisans
or scheme other than the Scheme of Fund through 200 selected Khadi institutions which
for Regeneration of Traditional Industries include 50 institutions managed by persons
(SFURTI), with an overall outlay of Rs.97.25 belonging to Scheduled Castes (SC) and
crore spread over five years from 2005- Scheduled Tribes (ST), by assisting them
06, was introduced in the Xth Plan, which with quality raw material, capacity building,
otherwise saw only small level interventions. value addition, marketing linkages in a holistic
manner. The third seeks to provide a nursing
2.2.4 An attempt has been made in 2007-08 fund for selected Khadi institutions which have
to frame new initiatives to support the Khadi the potential to be revived and also renovation
sector, and in particular, to make it more of selected retail outlets for improving their
efficient and productive, while at the same marketing and sales.
time, creating a better work environment
for the Spinners and Weavers through pilot 2.3 NEW INITIATIVE FOR COIR
schemes. Three pilot schemes are at various SECTOR
stages of approval, which are expected to be
launched in the next few months. The first A scheme to rejuvenate, modernise and
seeks to provide Worksheds to Khadi Spinners/ technologically upgrade the most crucial link
12
in the Coir production chain, namely Spinners entrepreneurs in completion of various

and Tiny Household sector, is in an advanced formalities and tasks necessary for
stage of approval, and is expected to be fully setting up and operationalisation of their
operationalised in 2008-09. This is the first enterprises. It is targeted to assist potential
phase of a major initiative to fully modernize first-generation entrepreneurs, who
and achieve technological upgradation of have undergone entrepreneurship / skill
the Coir industry. Under the scheme out- development training of at least two weeks’
dated ratts/looms would be replaced and duration, or have undergone vocational
worksheds would be provided to spinners and training from ITIs.
tiny household units resulting into increased
production and earnings of workers.
2.4 RAJIV GANDHI UDYAMI

MITRA YOJANA
2.4.1 The objective of the scheme,

namely Rajiv Gandhi Udyami Mitra Yojana 2.4.2 The scheme would be implemented
(a scheme for “Promotion and Handholding through various lead agencies i.e. Udyami
of Micro and Small Enterprises”), is to help Mitras, viz; Entrepreneurship Development
and facilitate the potential first generation Institutions (EDIs), Central/ State Government
Shri Mahabir Prasad, Hon’ble Union Minister (MSME) lighting the lamp at the launching of Rajiv Gandhi
Udyami Mitra Yojana. On his left is Shri Dinesh Rai, Union Secretary (MSME) and on his right are:
Shri R.S. Sirohi, then SS & FA and Dr. Chandrapal, former Secretary (MSME)
13
MSME
Shri Mahabir Prasad, Hon’ble Union Minister (MSME) releasing the booklet on Rajiv Gandhi Udyami Mitra
Yojana. On his right is Shri Dinesh Rai, Union Secretary (MSME) and on left are: Shri Pravir Kumar,
Joint Secretary (MSME) and Shri R.S. Sirohi, then SS & FA
Public Sector Enterprises (PSEs) involved in preparation of report, arranging finance,

in promotion and development of MSEs, establishment of workshed, sanction of power
Entrepreneurship Development Centers load/connection, selection of technology,
(EDCs), NGOs, Industry Associations installation of plant and machinery/office
and other organisations engaged in equipment, obtaining various registrations/
entrepreneurship and promotion of micro licenses/ clearances / no objection certificates
and small enterprises. (NOCs), tying up arrangements for supply of
raw material as well as marketing of products/
services, linkage for mentoring support, etc.
2.4.3 The Udyami Mitras would be network-
ing and coordinating with various Government
departments/agencies,regulatory/support 2.4.4 Udyami Mitras would be compensated
for handholding charges with nominal
agencies, for channelising the benefits available
contribution from the entrepreneurs as under
under various schemes to the first generation
(Table 2.1).
entrepreneurs with a view to assist them in
setting up their enterprises. They would provide
2.4.5 The handholding charges shall
assistance to the potential entrepreneurs
be released to the Udyami Mitra in three
14
instalments on achievement of various to approximately 1,50,000 potential

milestones as specified under the guidelines entrepreneurs with an outlay of Rs. 69 crore
of this scheme. under this scheme.
2.4.6 During the 11th Five Year Plan,
it is envisaged to support handholding
TABLE - 2.1: Handholding Charges Payable to Udyami Mitras
Category of Enterprise Handholding Charges (Rs.)

Govt. Grant Beneficiary’s Total
Contribution
(i) Service Enterprises 3000 1000* 4000
(ii) Manufacturing Enterprises (Micro i.e. < 5000 1000* 6000
Rs. 25,00,000/-)
(iii) Manufacturing Enterprises (Small i.e. > 5000 1000* + ‘ X ‘ 6000 + ‘ X ‘
Rs. 25,00,000/-)
‘ X ‘ = additional contribution to be paid @ 0.1 per cent of
the project cost in excess of Rs.25,00,000/-, subject to a
ceiling of Rs.10,000/-.
* For the beneficiaries from special categories i.e. SC/ ST/ physically handicapped/ women / beneficiaries
from North-Eastern Region, the beneficiary’s contribution of Rs. 1,000/- or more shall also be provided as
government grant.
15
Chapter III
ROLE & FUNCTIONS OF MICRO,
SMALL AND MEDIUM ENTERPRISES
- DEVELOPMENT ORGANISATION
(MSME-DO)
3.1 Introduction preparation of project and product profiles,
technical and managerial consultancy,
3.1.1 The organization of the Development assistance for exports, pollution and energy
Commissioner (Micro Small and Medium audits etc. MSME-DO provides economic
Enterprises) [(earlier called Development information services and advises Government
Commissioner (Small Scale Industries)] in policy formulation for the promotion and
was established as Small Industries development of MSME sector. The field
Development Organisation (SIDO) in 1954 offices also work as effective links between
on the basis of the recommendations of the the Central and the State Governments in the
Ford Foundation. Over the years, it has seen area of MSME development.
its role evolve into an agency for advocacy,
hand holding and facilitation for the small 3.1.2 Consequent upon the increased
industries sector. With the enactment of globalization of the Indian economy, MSME
the MSMED Act 2006, the organization has sector is facing new challenges. MSME-DO
been renamed as Micro, Small and Medium has recognised the changed environment
Enterprises-Development Organisation and is currently focusing on providing support
(MSME-DO) with the wider mandate of in the fields of credit, marketing, technology
promotion and development of MSME sector. and infrastructure to MSMEs. Global trends
It has over 60 offices and 21 autonomous and national developments have transformed
bodies under its management. These MSME-DO’s role into that of a catalyst of
autonomous bodies include Tool Rooms, growth of small enterprises in the country.
Training Institutions and Project-cum-Process
Development Centres. MSME-DO provides The main services rendered by MSME-DO
a wide spectrum of services to the small are:
industries sector, now enlarged to include all
enterprises, excluding the larger ones. These Ø Advising the Government in policy
include facilities for testing, tool making, formulation for the promotion and
training for entrepreneurship development, development of MSME sector.
17
MSME
Ø Providing techno-economic and 28 Branch MSME Development Institutes

managerial consultancy, common has been set up in State capitals and other
facilities and extension services to industrial cities all over the country. The
the MSME sector. main activities of these institutions are as
follows:-
Ø Extending facilities for technology
upgradation, modernisation, quality
improvement and infrastructure. Ø Conducting Entrepreneurship, Man-
agement and Skill Devlopment Pro-
Ø Developing Human Resources grammes;
through training and skill upgrada-
tion. Ø Assistance/Consultancy to prospec-
tive and existing Entrepreneurs;
Ø Making available economic informa-
tion services. Ø Preparation of State and District In-
dustrial Profiles;
Ø Maintaining a close liaison with the
Central Ministries, Planning Com- Ø Preparation of Project Profiles of
mission, State Governments, Finan- Products / Industries feasible in the
cial Institutions and other Organisa- MSME Sector;
tions concerned with development
of MSME sector. Ø Energy Conservation, Pollution
Control, Quality Control & Technol-
Ø Evolving and coordinating Policies
ogy Upgradation;
and Programmes for development
of MSME sector as ancillaries to Ø Ancillary Development and
large industries.
Ø Providing Common Facility Services
3.1.3 MSME-DO has a network of 30 in Workshop/Lab Laboratories.
MSME Development Institutes (MSME
- DIs), 28 Branch MSME-Development MSME Development Institutes (MSME
Institutes (Br. MSME-DIs), 4 MSME Testing - DIs), also have common facility workshops
Centres (MSME-TCs), 7 MSME Field Testing in various trades. There are at present 42
Stations (MSME-TSs), 18 Autonomous such common facility workshops.
Bodies - which include 10 MSME Tool
Rooms ( MSME-TRs), 6 MSME Technology 3.1.5 MSME Testing Centres (MSME-TCs)
Development Centres (MSME-TDCs) 2 at Chennai, Delhi, Kolkata and Mumbai have
MSME Central Footwear Training Institutes facilities for quality upgradation, training/
(MSME-TDC-CFTIs). There are also 2 consultancy in testing, quality control,
MSME Departmental Training Institutes quality management, process quality control
(MSME-TIs) and one Departmental MSME systems, etc. The 7 MSME Field Testing
Hand Tools Development Centre (MSME- Stations (MSME-FTSs) provide focused
TDC-Hand Tools). testing services in 7 cities viz; Bangalore,
Bhopal, Changanacherry, Jaipur, Hyderabad
3.1.4 The network of 30 MSME Kolhapur and Puducherry having significant
Development Institutes (MSME - DIs), and concentration of MSMEs.
18
3.1.6 The 10 MSME-Tool Rooms; started 3.2.1.2 These Tool Rooms were established
with Indo-German and Indo-Danish by the Government of India in technical
collaborations, assist MSMEs in technical collaboration either with the Govt. of Federal
upgradation, provide good quality tooling Republic of Germany or the Govt. of Denmark
by designing and producing tools, moulds, for providing services in the area of tooling
jigs and fixtures, components, etc. They also (design & manufacture), precision machining,
provide training and consultancy for tool and heat treatment, technical training and technical
die makers. consultancy to metal working industry, in
general and micro and small industries in
3.1.7 MSME Technology Development particular so as to improve the quality and
Centres (MSME-TDCs) are product specific productivity of such units. These Tool Rooms
Centres to look into the specific problems were set up to fulfil the tooling and training
and render technical services, develop needs of the micro and small industries in
and upgrade technologies and manpower the fields of tool design and manufacture
development and training in specific product and training of technical personnel in these
groups like Foundry & Forging, Electronics, fields.
Fragrance & Flavour, Sport Shoes, Electrical
Measuring Instruments and Glass. 3.2.1.3 Various long-term post-graduate
diplomas in tool design and CADCAM
3.1.8 MSME – Technology Development course and vocational training programmes
Centres: Central Footwear Training Institutes are being organized for school drop-outs.
(MSME-TDCs-CFTIs) at Agra and Chennai These Tool Rooms have achieved nearly
develop footwear designing to promote 100% placement for the trainees of its long-
exports and provide training for manpower term courses.
in Footwear Industry.
3.2.1.4 The achievements (as on November
3.2 PLAN SCHEMES 2007) of these Tool Rooms are as follows:-
3.2.1 MSME Tool Rooms (MSME-TRs) Table - 3.1: Achievements of the Tool Rooms
(As on November 2007)
(i) Revenue Target (2007-08) (Rs. 4515
3.2.1.1 The 9 MSME-TRs started with Indo-
Lakh)
German and Indo-Danish collaborations
(ii) Revenue Earned (Rs.Lakh) 2991
assist MSMEs in technical upgradation,
(iii) No. of Units Serviced 4465
provide good quality tooling by designing
(iv) No. of Trainees (Long Term) 3928
and producing tools, moulds, jigs & fixtures,
(v) No. of Trainees (Short Term) 6748
components, etc. They also provide Training
(vi) No. of SC/ST Trainees 1839
and Consultancy for tool and die makers.
(vii) No. of OBC Trainees 1338
These Tool Rooms are at Ludhiana,
(viii) No. of Minority Trainees 343
Ahmedabad, Indore, Aurangabad, Kolkata,
(ix) No. of Women Trainees 895
Bhubaneshwar, Jamshedpur, Jalandhar &
Guwahati. (x) No. of PH Trainees 26
19
MSME
3.2.2 MSME Technology Development Cen- 3.2.2.3 The achievements (as on November
tres (MSME- TDCs) 2007) of these Centres are as follows:
TABLE - 3.2: Achievements of MSME-TDCs
(As on November 2007)
3.2.2.1 MSME Technology Development
Centres (MSME-TDCs) are product specific (i) Revenue Target (2007-08) (Rs. 1499
Centres to look into their specific problems Lakh)
and render technical services, to develop (ii) Revenue Earned (Rs.Lakh) 831.52
and upgrade technologies and manpower
development and training in specific product (iii) No. of Units Serviced 3635
groups like Foundry & Forging, Electronics, (iv) No. of Trainees (Long Term) 1311
Fragrance & Flavour, Sport Shoes, Electrical (v) No. of Trainees (Short Term) 3082
Measuring Instruments and Glass. MSME-
TDCs include Electronics Service & Training (vi) No. of SC/ST Trainees 800
Centre, Ramanagar; Institute for Design of (vii) No. of OBC Trainees 1134
Electrical Measuring Instruments, Mumbai; (viii) No. of Minority Trainees 42
Fragrance & Flavour Development Centre,
Kannauj; Centre for Development of Glass (ix) No. of Women Trainees 490
Industry, Firozabad; Central Institute of Tool (x) No. of PH Trainees 11
Design, Hyderabad; Process-cum-Product
Development Centre, Agra and Process- 3.2.3 MSME – Technology Development
cum-Product Development Centre, Meerut. Centres: CFTI
3.2.2.2 The main objectives of these 3.2.3.1 Central Footwear Training Institutes,
institutes are to develop human resources to (MSME-TDC-CFTIs) at Agra and Chennai
meet the essential requirements for transfer develop footwear designing to promote
of technology in various fields viz; electronic exports and provide training for manpower
items, instrumentation industries, sports goods, in Footwear Industry.
promote and moderanise the glass industry,
foundry and forge industries and technological
upgradation of essential oils, aroma chemicals, 3.2.3.2 The basic objective of these
fragrance and flavour industry in the country. institutes is to develop human resources
These institutes are also running training for footwear and allied industries through
courses on repair and maintenance of CNC various training programmes on footwear
machines, addition of fibre optics testing facilities technology and allied services. These
and tailor-made training modules designed as institutes conduct long term, short term
per the needs of the industry with emphasis and part-time training courses on various
on hands-on training. CDGI, Firozabad
subjects of footwear technology. Besides,
provides technical support to micro and small
the institutes also provide technical support
glass industry units by promoting installation
of energy efficient glass melting furnaces, services to the user industry by making
auxiliary furnaces, introduction of new type of their facilities available to them. Further
glasses and their standardization, introduction the institutes also provide services for
of developed techniques for the decoration of development of new products and patterns
glasswares etc. as per given sample or concept.
20
3.2.3.3 The achievements (as on Novenber modifications have been made in taking up
2007) of these Centres are given below: technology upgradation on a larger scale.
TABLE - 3.3: Achievements of MSME-TDCs; CFTI
(As on November 2007) 3.2.4.3 Monitoring of the Scheme: The
(i) Revenue Target (2007-08) 267 Scheme is monitored by the Governing
(Rs.Lakh) and Technology Approval Board (GTAB) of
(ii) Revenue Earned (Rs.Lakh) 216.40 the CLCSS. The Secretary (MSME) is the
(iii) No. of Units Serviced 331 Chairperson of the Board with the Additional
(iv) No. of Trainees (Long Term) 385 Secretary & Development Commissioner
(v) No. of Trainees (Short Term) 6049 (MSME) as its Member-Secretary. The GTAB
(vi) No. of SC/ST Trainees 2841 also periodically reviews the functioning
(vii) No. of OBC Trainees 673 of the Scheme. There is a Technical Sub-
(viii) No. of Minority Trainees 219 Committee under the GTAB to consider
(ix) No. of Women Trainees 2402 inclusion of new sub-sectors/products and
(x) No. of PH Trainees 1
Well Established and Improved Technologies
under the Scheme.
3.2.4 Credit Linked Capital Subsidy
Scheme (clcss) 3.2.4.4 NodalAgencies:The Scheme is being
implemented through eligible Primary Lending
3.2.4.1 The Ministry of Micro, Small & Institutions (PLIs) which include Scheduled
Medium Enterprises (MSME) is operating Commercial Banks, Scheduled Cooperative
a scheme for technology upgradation of Banks [including urban cooperative banks
Small Scale Industries (now MSEs) called co-opted by the SIDBI under the TUFS of the
the Credit Linked Capital Subsidy Scheme Ministry of Textiles], Regional Rural Banks
(CLCSS). The Scheme aims at facilitating (RRBs), State Financial Corporations (SFCs)
technology upgradation by providing and North Eastern Development Financial
upfront capital subsidy to SSI units (now Institution (NEDFI). The capital subsidy is
MSEs), including tiny, khadi, village and released to SIDBI and NABARD for on-ward
coir industrial units, on institutional finance disbursement to the beneficiary units through
(credit) availed by them for modernisation eligible PLIs. An advance of Rs. 5 crore and
of their production equipment (plant and Rs. 3 crore has been placed with SIDBI and
machinery) and techniques in specified NABARD respectively for operationalising
sub-sectors/products approved under the the Scheme.
Scheme.
Besides, an advance of Rs. 1 crore
3.2.4.2 The ceiling for eligibility of loans each has also been placed with the eight
under the Scheme is Rs. 1 crore and Public Sector Banks/Government Agencies
rate of subsidy is 15 per cent. Further, namely State Bank of India, Canara Bank,
in the light of the experience gathered Bank of Baroda, Punjab National Bank, Bank
through implementing the Scheme, certain of India, Andhra Bank, State Bank of Bikaner
21
MSME
& Jaipur and Tamil Nadu Industrial Investment units (subsidy amount approximately Rs. 24
Corporation Ltd., which have been inducted crore) in about 5 years. However, during the
as nodal agencies/banks for disbursement period of one and half years after amendment
of subsidy under the Scheme. The National in the scheme (From 29.9.05 to 31.03.07),
Small Industries Corporation Ltd. has also been 2399 units availed of subsidy of Rs. 80 crore
inducted as nodal agency for disbursement (approx.).
of subsidy under the Scheme. These nodal
banks/ agencies consider proposals only in 3.2.5 I so - 9 0 0 0 / I so - 1 4 0 0 1 / H accf
respect of credit approved by their respective Certification Reimbursement Scheme
branches with effect from 04.04.2006.
3.2.5.1 In order to enhance the competitive
3.2.4.5. Progress of the Scheme: The year- strengths of the Small Scale Sector (now MS
wise details of units assisted and amount of Sector), the Government of India, introduced
subsidy sanctioned under the CLCSS since an incentive scheme for technological
2001-02 are given in Table 3.4 Up-gradation/quality improvement and
TABLE - 3.4: Details of Units Assisted and Subsidy Sanstived Under CLCSS
Year No. of Units Assisted Amount of Subsidy Sanctioned

(Rs. lakh)
2001-02 9 21.36
2002-03 47 93.97
2003-04 150 368.47
2004-05 526 1346.29
2005-06 699 1800.99
2006-07 1898 6733.03
2007-08( As on 31.12.07)* NIL NIL
Total 3329 10364.11
* Progress of the Scheme during the year is environment management. The scheme
however, NIL as formal approval for continuation provides incentive to undertakings in the
of the Scheme in XI Plan has been received Sector for having acquired ISO certifications.
recently only. It is expected that entire allocation for
subsidy in areas other than NER will be utilised. 3.2.5.2 The salient features of the Scheme:
Consequent upon the increase of l The Scheme envisages reimburse-

ceiling for eligibility of loans from Rs. 40 lakh ment of expenses for acquiring
to Rs. 1.0 crore and in the rate of subsidy from ISO9000/14001(or its equivalent)
certification, to the extent of 75% of
12 per cent to 15 per cent from September
the cost subject to a maximum of
29, 2005, the progress under the CLCSS
Rs. 75,000/- in total.
has been quite encouraging. The cumulative
progress of CLCSS before amendment of the l All Micro and Small Scale Enter-
scheme i.e. before 29.9.2005 was only 930 prises having Entrepreneus Memo-
22
randum (EM) Number are eligible to 3.2.6.2 The main activities of MSME-DIs
avail the reimbursement. and their Branches are as follows:
l The units can apply for reimburse-

l Assistance/Consultancy to prospec-
ment under the Scheme only after
tive and existing entrepreneurs
obtaining ISO9000/14001/HACCF
(or its equivalent) certification. l Preparation of State Industrial Pro-
files and District Industrial Potential
l The Scheme is an all India Scheme Surveys
administered by MSME-DO, Ministry
of MSME, Govt. of India. The Scheme l Preparation/updation of Project Pro-
has been decentralised to state level files
through MSME-DIs w.e.f. 1.4.2007. l Entrepreneurship Development Pro-
l The Scheme provides one time reim- grammes
bursement. The amount of subsidy / l Motivational Campaigns
financial support if already received
from the State Govt./ financial insti- l Production Index
tution shall be adjusted against the
l Management Development Pro-
entitlement of reimbursement under grammes
this Scheme.
l Skill Development Programmes
l The Govt. of India has extended the
Scheme in the XIth. Five Year Plan. l Energy Conservation
3.2.5.3 Status of Reimbursement under l Pollution Control

ISO 9000/14001 Reimbursement
l Quality Control & Upgradation
Scheme: Total 15807 number of units
have been reimbursed expenses l Export Promotion
involving an amount of Rs.80.30
crore up to 31st December, 2007 l Ancillary Development
since inception of the scheme in l Common Facility Workshop/Lab.
1994.
l Preparation of Directory of specific
industries
3.2.6 Micro, Small & Medium Enterprise-
Development Institutes (Msme- l Intensive Technical Assistance
DIs)
l Coordination with DICs
3.2.6.1 The Scheme has been in operation l Linkages with State Government
since the 6th Five Year Plan. Since 1983- functionaries
84, 12 new Branch Institutes, mostly in the
backward and hilly areas of the country have l Market Surveys
been sanctioned, making a total of 15 such l Other Action Plan activities assigned
Institutes under the Scheme. by the Headquarters
23
MSME
3.2.7 Modernisation Of Msme Workshops 3.2.9.2 With a view to enhance the self /
paid employability potential for educated
3.2.7.1 This is an ongoing Plan Scheme with unemployed / underemployed youth and
the allocation of Rs. 500 lakhs during the 10th MSE personnel/artisans, this Institute had
Plan for the Workshops attached to MSME DIs/ identified certain employment oriented trades
Br.MSME DIs. Funds are generally provided in which it was proposed to impart both
to MSME DIs/Br. MSME DIs for replacing their theoretical and practical training in functions
outdated/out of order machines. Funds are like Information Technology, technical trades
also being provided for purchase of accessories like repairs of Electric Motors / Domestic
and equipments which are required for these Appliances / Screen Printing, Medical Lab.
machines for developing Jigs, Fixtures, Dies, Technology, Herbal Health Technology. etc.
Tools etc. On these machines, training is also This Institute is also conducting several EDPs
imparted to the workers sponsored by MSE and MDPs of two month’s duration at regular
units and unemployed youths seeking jobs in intervals on Aluminium Fabrication, Mobile
MSE units.
Phone Servicing, Computer Hardware and
Networking, Auto Cad, Repair & Servicing
3.2.8 Upgradation of Msme Workshops
Into Mini Tool Rooms TABLE - 3.5: Details of Revenue Earnings and
Persons Trained: MSME-TI; Ettamanur
Year Revenue Earned Persons
3.2.8.1 A Scheme titlid “Upgradation Trained
of MSME-DO Workshops into Mini Tool
2002-03 Rs. 13,51,549 621
Rooms” was approved in 1992-93 envisaging
2003-04 Rs. 11,69,363 514
conversion of a few Workshops into Mini Tool
2004-05 Rs. 13,16,641 600
Rooms from Common Facility Workshops
2005-06 Rs. 26,25,371 1062
attached to MSME-DIs/Br.MSME-DIs.
2006-07 Rs. 23,23,163 769
Consequently, hi-tech machines, CAD/CAM
Softwares, CNC machines etc. have been TOTAL Rs. 87,86,087 3566
provided to the selected Workshops like of Air Conditioners etc. The revenue earning
MSME-DI, Mumbai, Chennai, Bangalore, of the Institute during the last five years are
Jaipur, Delhi, Kolkata, Kanpur, Ludhiana, given Table 3.5
Indore, Patna, Goa, Thrissur, Guwahati,
Jammu, Ranchi, Br. MSME-DI at Mangalore,
3.2.9.3 During the current financial year,
Varanasi, and Gwalior etc.
this Institute has collected a revenue of
Rs. 2,76,953/- and trained 314 persons upto
3.2.9 Msme-Ti, Ettamanur
the end of November, 2007.
3.2.91 The MSME-TI, Ettamanur, Kerala,

3.2.10 MSME-TI, Tiruvalla
functioning under the Ministry of MSME,
Government of India, is imparting training
to artisans / entrepreneurs of Kerala State 3.2.10.1 The MSME-TI, Tiruvalla functioning
in various technical disciplines and also under the Ministry of MSME, Government of
inculcating entrepreneurial culture among India, was set up in 1994 with the avowed
them since 1 December, 1999. objective to train unemployed youth of the
24
State in various technical disciplines and and calibration facilities to industries in general
also to inculcate an entrepreneurial culture and Micro, Small & Medium Enterprises in
among them. Since the inception, this particular, for raw materials, semi-finished
Institute has been conducting different types and finished products, manufactured by them.
of skill development training programmes for The Centers are equipped with the state-of-
candidates drawn from all over the State like the-art indigenous and imported equipments
Repair of Household Electrical Appliances, in the disciplines of Chemical, Mechanical,
cnc Programming, Electric Motor Winding, Metallurgical and Electrical Engineering to
TABLE - 3.6: Details of Revenue Earnings and
undertake Performance Test, Type Test and
Persons Trained: MSME-TI; Tiruvalla Acceptance Test of semi-finished, finished
Year Revenue Earned Persons
products etc. The Centres also undertake
Trained calibration works for Measuring Instruments
2002-03 Rs. 13,33,875 855 and Equipments conforming to international
2003-04 Rs. 14,72,875 764 standards. These Centres are accredited by
2004-05 Rs. 16,22,500 874 internationally recognized NationalAccreditation
2005-06 Rs. 19,94,975 970 Board of Testing & Calibration Laboratories
2006-07 Rs. 12,72,460 806 (NABL) Certification as per ISO(17025).
TOTAL Rs. 76,96,685 4269
3.2.11.2 Besides, these Testing Centres
Fire Fighting & Safty Management, Computer
also render technical support to Micro, Small
Application, Computer Hardware Servicing,
& Medium Enterprises in upgrading the
Mobile Phone Servicing, Aluminium quality of products manufactured by them.
Fabrication, etc. The revenue earning of the They also provide consultancy services
Institute during the last five years are given in testing and quality management and in-
in Table 3.6 process quality system to MSMEs. Further,
in order to cope up with the emerging trends
3.2.10.2 During the current financial year, in manpower requirements in the industry
this Institute has collected a revenue of Rs. , these Testing Centres impart training in
4,000/- and trained 65 persons upto the end testing products to young personnel for
of November, 2007. gainful employment in Quality Control
Laboratories of various industries. Apart from
3.2.11 Msme Testing Centres, this, they also conduct training courses for
Msme Testing Stations and the benefit of workers sponsored by MSMEs
Testing Centres by Industries on product specific testing and quality control
Associations so that their units may be in a position to set
up their in-house testing facilities. MSME
a) Msme Testing Centres TCs also organize awareness programmes
on total quality for household electrical
3.2.11.1 MSME-DO is operating four MSME appliances and allied appliances and ISO-
Testing Centres(formerly RTCs) located at 9000 Quality Management Systems for
New Delhi, Mumbai, Chennai and Kolkata. the benefit of micro, small and medium
The MSME Testing Centres provide testing scale entrepreneurs. MSME TCs are also
25
MSME
providing the testing facilities to Bureau b) Msme Testing Stations

of Indian Standards for the products
manufactured by various industries and also 3.2.11.5 In order to provide testing facilities
assist various Government Departments in the areas with cluster of industries and some
in testing the materials procured by them, strategic areas, the Government of India have
apart from providing Testing & Calibration set up MSME Testing Stations (formerly FTSs)
facilities directly to MSMEs and organized at Jaipur, Bhopal, Kolhapur, Hyderabad,
sector units. Bangalore, Pondicherry and Ettumanur
TABLE - 3.7: Performance of the MSME Testing Centres
Year Revenue Recurring %age of No.of Jobs No.of Tests

Earned Expenditure Revenue/ Completed Performed
(Rs.lakhs) (Rs.lakhs) Expenditure
(self-
sufficiency
level)
2003-04 268.50 343.18 75.32 12409 139569
2004-05 259.74 267.89 96.95 10872 136362
2005-06 247.60 393.50 62.92 11616 134454
2006-07 320.33 405.69 78.96 12459 154891
2007-08 211.19 296.28 71.28 7876 110025
(up to 30th Nov’07)
Dec’07 to March’08 105.60 148.14 71.28 3938 55013
(Anticipated)
3.2.11.3 During the 10th Plan Period, a (formerly at Chenganacherry ). These Testing
sum of Rs.9.60 crore was provided for Stations extend facilities for testing of various
modernization of these MSME Testing products viz; chemicals, dye-stuffs, lamps,
Centres. However, Rs.8.32 crore had rubber products, castings and forgings, paints
been utilized out of the allocated and varnishes, domestic electrical appliances,
general engineering etc.
funds.
3.2.11.6 The presence of MSME TSs in the

During the 11th Five Year Plan, an
field has enabled the cluster of industries in
amount of Rs.29 crores has been proposed the micro and small scale sector to utilize the
for modernization of MSME Testing testing facilities. These Testing Stations, in fact,
Centres. act as extension of the MSME TCs thereby
serving the needs of the industries situated in
3.2.11.4 The performance of MSME TCs far-flung areas. The MSME Testing Stations
during last five years and the percentage of are regularly modernizing/upgrading their
self-sufficiency (of these Centres) are given facilities to cater to the needs of industries in
in Table 3.7 general and Micro, Small & Medium sector in
particular, situated in their respective areas.
26
3.2.11.7 The budget provision is made for day to day functioning and modernization of
meeting both the recurring and non-recurring MSME Testing Stations.
expenditure of MSME Testing Stations. The
performance of MSME Testing Stations in 3.2.11.9 The performance of MSME
terms of number of jobs executed, tests TSs during last five years and the
conducted and the revenue earning is percentage of self-sufficiency (of
monitored regularly. these Stations) are given in Table 3.8.
TABLE - 3.8: Performance of the MSME Testing Stations
Year Revenue Recurring %age of No. of Jobs No.of Tests

Earned Expenditure Revenue/ Completed Performed
(Rs. lakhs) (Rs. lakhs) Expenditure
(self-
sufficiency
level)
2002-03 50.38 81.36 61.79 8004 34508
2003-04 61.62 78.35 78.65 11035 43306
2004-05 82.69 87.79 94.42 15150 57269
2005-06 85.25 96.59 88.26 16378 57963
2006-07 96.26 104.54 92.08 16248 56801
2007-08 69.46 77.81 89.27 8882 37649

(up to 30th)
Nov’ 07
Dec’07 to 34.73 38.90 89.27 4441 18825

March’ 08
(Anticipated)
3.2.11.8 During the 10th Plan Period, a c) Setting Up of Testing Centres By

sum of Rs. 5.80 crore was provided for Industries Associations & Modernisation/
Expansion of Quality Marking Centres Under
modernization of MSME Testing Stations and
the Aegis of State Governments
a sum of Rs. 4.51 crores had been utilized.
3.2.11.10 Under the plan scheme,

During the 11th Plan, an amount of Government of India provides one time
Rs. 26.60 crores has been proposed for capital grant-in-aid equal to 50% of the
27
MSME
cost of testing equipment and machinery 3.2.11.13 During the 10th Plan Period, an
(restricted to Rs. 50 lakhs) to the Industries’ outlay of Rs. 4.80 crores was provided under
Associations, which wish to set up and the Scheme and the amount disbursed was
operate testing laboratories of international Rs.0.72 crores. 3 Testing Centres have
standards and also for modernization/ been provided central grant-in-aid during
expansion of existing Quality Marking the period, out of these, 1 Testing Centre
Centres of State Governments and their was set up by Industries Associations and 2
autonomous bodies. The rest of the Quality Marking Centres were set up under
expenditure of testing equipment and the aegis of different State Governments.
machines is borne by the Industries The States which availed benefits of the
Association/State Governments. Scheme so far are Tamil Nadu, Karnataka
and Kerala.
3.2.11.11 The objective of the scheme was
to promote setting up of Testing Centres 3.2.11.14 In view of the lukewarm response,
to offer facilities mainly to Industrial units received during the past years, the Scheme
including MSEs units located in the State for has been discontinued w.e.f. 1st April 2007.
testing quality of raw materials, components However budget provision of an amount of
and the end products as per the relevant Rs. 4.40 crores has been proposed for the
standards/specifications. 11th Five Year Plan for grant-in-aid for those
Testing Centres by Industries’ Associations
3.2.11.12 The Scheme covered the Testing which have already been approved by 31st
Laboratories established by Industries March 2007.
Associations including Chambers of
Commerce, Industrial Co-operatives 3.2.11.15 The year-wise expenditure
registered under the Societies Registration incurred so far and the number of Testing
Act or under any statutory Act. It also Centres assisted during the Xth plan are
covered expansion/modernization of the furnished in Table 3.9
existing Centers under the aegis of State
Governments and State Government funded
3.2.12 Training Programmes (Imcs/
autonomous bodies.
Edps/Esdps/Mdps and Bsdps)
TABLE - 3.9: Testing Centres by I As
conducted By Msme-dis
Sl . Year Expenditure No. of
No. incurred Centres
(Rs. in assisted 3.2.12.1 MSME-DIs, organize a number of
crore) training programmes to train potential first
1. 2002-03 0.095 1 generation entrepreneurs for upgradation
2. 2003-04 Nil - of their techno/managerial knowledge and
3. 2004-05 0.41 1 skills with ultimate object to start MSEs in
4. 2005-06 Nil - various fields.
5. 2006-07 0.218 2
6 2007-08 Nil -
The training programmes
(up to 30th)
Nov’07 conducted are:
28
Ø Industrial Motivation Campaigns for motivating 42000 persons upto December

(IMCs) 2007. The remaining programmes are under
progress and are likely to be completed by
Ø Entrepreneurship Development Pro-
the end of the financial year.
grammes (EDPs)
Ø Entrepreneurship Skill Development b) Entrepreneurship Development

Programmes (ESDPs) Programmes (Edps)
Ø Management Development Pro-
grammes (MDPs) 3.2.12.4 Entrepreneurship Development
Programmes are being organized as a
Ø Business Skill Development Pro- regular training activity to cultivate the latent
grammes (BSDPs) qualities of youth by enlightening them on
a) Industrial Motivation Campaigns various aspects that are necessary to be
(Imcs) considered while setting up Micro, Small &
Medium Enterprises. These programmes
are conducted generally for technicians /
3.2.12.2 Industrial Motivation Campaigns
artisans for motivating them towards self-
( of duration of 1 day or 2 days) are organized
employment. The course contents of the
to identify and motivate traditional / non-
Entrepreneurship Development Programmes
traditional entrepreneurs having potential for
are so designed as to provide useful
setting up MSEs so as to lead them towards
information on product/process design,
self-employment. Emphasis is being given
manufacturing practices involved, testing
on organizing the maximum number of
and quality control, selection and usage of
programmes in rural areas particularly for
appropriate machinery and equipments,
weaker sections of the society.
project profile preparation, marketing
avenues/techniques, product/service pricing,
3.2.12.3 During the year 2007-08, 925 IMCs
export opportunities, infrastructure facilities
will be conducted for motivating about 1 lakh
available, support and financial institutions,
persons towards self-employment. 400
cash flow, etc. There is no fees for SC /
programmes have already been conducted
ST, Women and Physically Handicapped
participants. A stipend of Rs. 500/- per
participant per month is provided to SC /
ST, Women and Physically Handicapped
participants under Promotional Package.
Emphasis is being given on organizing the
maximum number of programmes in rural
areas particularly for weaker sections of the
society.
3.2.12.5 During the year 2007-08, 244

EDPs will be conducted for providing training
to about 6100 persons. Out of these, 51
29
MSME
programmes for weaker sections of the of socially disadvantaged groups (OBC,

society (SC/ST/Women/PH), 53 programmes SC,ST, Minorities and Women ) in various
for Minorities and 140 programmes in ITIs, regions of the country , including the less
Engg. Colleges, Polytechnics etc. will be developed areas. The target groups for
organized for providing training to 1275, these programmes are SC,ST, OBC,Women,
1325 and 3500 persons respectively. Out of Minorities and other weaker sections.
244 EDPs,133 programmes have already
been conducted for providing training to 3.2.12.8 These programmes are also
3100 persons upto December 2007. The called “Out-reach Programmes” as they are
remaining programmes are under progress conducted in rural / less developed areas.
and are likely to be completed by the end of
the financial year. 3.2.12.9 Programmes so far organized,
inter-alia covered Herbal Cosmetics,
c) Entrepreneurship Skill Development High Fashion Garments, Hosiery, Food &
Programmes (Esdps) Fruit Processing Industries, Information
Technology, Hardware Maintenance,
3.2.12.6 Comprehensive training Soap and Detergents, Leather Products/
programmes are organized to upgrade existing Novelties, Servicing of Household Electrical
skills and to create new skills among workers Appliances and Electronic Gadgets, Gem
and technicians of MSEs by organising various Cutting & Polishing, Engineering Plastics
technical training courses for them. The basic , Tour Operators, Mobile Repairing,
objective has been to provide training to Beautician,CAD/CAM, etc
skilled workers engaged in MSEs and to equip
them with better and improved technological 3.2.12.10 There is no fees for SC / ST,
skills of production . Emphasis is being Women and Physically Handicapped
given on organizing the maximum number participants. A stipend of Rs. 500/- per
of programmes in rural areas particularly for participant per month is provided to SC /
weaker sections of the society. ST, Women and Physically Handicapped
participants under Promotional Package.
3.2.12.7 Specific tailor made programmes
are organized for the skill development 3.2.12.11 During the year 2007-08, 970
ESDPs will be conducted for providing
training to about 24250 persons. Out
of these, 135 programmes for weaker
sections of the society (SC/ST/Women/
PH), 92 programmes for Minorities and 743
programmes for educated un-employed youth
will be organized for providing training to
3375, 2300 and 18575 persons respectively.
Out of 970 ESD Ps,344 programmes have
already been conducted for providing training
30
to 7700 persons upto December 2007. The under these training programmes pertain to
remaining programmes are under progress different aspects of management covering
and are likely to be completed by the end of Industrial Management, Human Resource
the financial year. Management, Marketing Management,
Export Management & Documentation,
d) Management Development Materials Management, Financial
Programmes (MDPs) Management, Information Technology &
Exports, ISO 9000, WTO, IPRs etc.
3.2.12.12 Organizing Management
Development Training Programmes 3.2.12.15 During the year 2007-08, 280
constitutes an integral part of the activities MDPs will be conducted for providing
besides counseling and consultancy training to about 7000 persons. Out of
services. 280 MDPs,190 programmes have already
been conducted for providing training to
3.2.12.13 The basic objective of imparting 4400 persons upto December 2007. The
training in management subjects is to improve remaining programmes are under progress
decision-making capabilities resulting and are likely to be completed by the end of
in higher productivity and profitability of the financial year.
existing and potential entrepreneurs and
developing new enterprises. Inputs on a e) Business Skill Development
variety of topics of managerial functions are Programmes (BSDPs)
provided to the participants in short duration
training sessions, by experts, which aim at 3.2.12.16 A tailor-made course namely
dissemination of knowledge of scientific/ Business Skill Development Programme
modern management trends/practices. (BSDP) has been introduced for new
entrepreneurs through Select Business
3.2.12.14 Management Training Courses Schools/Technical Institutions etc. The
in various areas of industrial management programme has been devised to encourage
initiatives are also devised for owner-cum- educated unemployed youth basically from
manager and supervisory level personnel Business Schools/Technical Institutes to start
of MSEs. These training programmes are self-employment ventures of micro or small
continuously re-structured in their contents enterprises and thus become instrumental in
keeping in view the demands of the area employment generation.
and the local requirements of the industries.
The nature of target groups and their 3.2.12.17 During the year 2007-08, 65
profile determine the modification in course BSDPs will be organised for providing
content in order to make them suitable training to 1625 persons. Out of these, 10
for contemporary managerial trends and BSDPs will be conducted exclusively for
practices which may be used by MSEs women for providing training to 250 women.
executives for attaining desired strength of A total of, 35 programmes have already
managerial action. The subjects covered been conducted for providing training to
31
MSME
850 persons upto December 2007. The Departments like Ministry of Commerce &
remaining programmes are under progress Industry, Directorate General of Foreign
and are likely to be completed by the end of Trade, Directorate General of Anti-dumping
the financial year. & Allied Duties and DG (Safeguard), so as
to keep itself updated with regard to WTO
3.2.13 The Wto Cell Agreements for protecting the interests of
MSMEs.
3.2.13.1 A separate WTO Cell in the Office
of the Development Commissioner (Small 3.2.13.4 As part of the Inter-Ministerial
Scale Industries) now known as MSME- consultation process, inputs to Ministry of
DO was set up during 1999 to co-ordinate Commerce and Industry, were provided
the latest developments in regard to World in regard to negotiations on various
Trade Organization. The objectives of the trade agreements for exchange of tariff
Cell inter-alia include (a) to keep abreast concessions. These Agreements inter-
with the latest developments in WTO,
alia included SAARC Preferential Trading
(b) to disseminate information to MSE
Arrangement (SAPTA), Agreement on
Associations and other stakeholders about
Economic Cooperation between India
the various aspects of WTO and their likely
& ASEAN countries, India - Singapore
implications for micro and small enterprises,
Comprehensive Economic Cooperation
(c) to coordinate with other Ministries and
Agreement (CECA), Preferential Trade
Departments of Govt. of India, (d) to prepare
policy for MSMEs in conformity with the Agreement between India and MERCOSUR,
provisions of WTO Agreements and (e) to Agreement on SAFTA and its Implementation
organize WTO Workshops/ Seminars for (TLP), Preferential Trade Agreement with
creating awareness, capacity building and Chile, Free Trade Agreement (FTA) with
conducting sectoral studies. GULF Co-operation Council (GCC), PTA
between India & Mauritius under Framework
3.2.13.2 With a view to create awareness of Comprehensive Economic Partnership
among the MSMEs, MSME Associations and Agreement, India-Thailand FTA, BIMSTEC-
other stakeholders about WTO Agreements FTA, Negotiations under Global System
and their implication for them, The Ministry of Trade Preferences (GSTP) and on
is organizing Sensitization Workshops/ Environmental Goods, Bilateral trade with
Seminars all over the country. Since the Bangladesh, sectoral proposals for tariff
year 2000, 49 such Workshops/Seminars liberalization under NAMA Negotiations,
have been organized. As part of this India-Korea CEPA Negotiations, FTA with
endeavor, eight awareness programmes on Israel, India-Japan CEPA Negotiations,
various aspects of WTO are proposed to be Agreement with South African Custom
organized during 2007-08. Union (SACU) and India-EU bilateral
relations and trade negotiations Unilateral
3.2.13.3 The Cell is maintaining a close Tariff Preference Scheme for the Least
liaison with other concerned Ministries and Developed Countries etc.
32
The Hon’ble Prime Minister, Dr. Manmohan Singh lighting the lamp at National Awards Function
alongwith Union Minister for MSME, Shri Mahabir Prasad.
3.2.14 National Award for Research & two Entrepreneurs from Andhra Pradesh
Development Efforts in Small and the Third Award upon an Entrepreneur
Scale Industries from West Bengal. The awards were given
away by the Hon’ble Prime Minister of India
3.2.14.1 The objective of the Scheme is in a public function held in Vigyan Bhavan.
to encourage in-house R&D efforts and to
promote this spirit in the larger interest of 3.2.15 National Award for Small Scale
qualitative development in MSEs. Under this Entrepreneurs
Scheme, First, Second and Third Awards
are conferred (once in a calendar year) upon
deserving registered small scale industries 3.2.15.1 The Scheme of giving away
(now MSEs) which may be in continuous National Award for Small Scale Entrepreneurs
production for at least 4 years before the for displaying exceptional entrepreneurial
year of Award. The First, Second and Third skills and traits, was instituted by the
Awards carry a Cash Prize of Rs.1,00,000/-, Government of India in the year 1983. Under
Rs.75,000/- and Rs.50,000/- respectively the Scheme, three National Awards (First,
besides a Certificate and a Trophy. Second and Third) and Special Recognition
Awards for an entrepreneur exhibiting
3.2.14.2 For the year 2006, the First and outstanding performance from each of the
Second Awards have been conferred upon participating States/UTs and Special Awards
33
MSME
at par with the First National Award to honour (1) Ladies Footwear (2) Industrial Leather
an outstanding woman entrepreneur and an Hand Gloves (3) Cosmetics, Toiletries,
outstanding entrepreneur from SC/ST are Essential Oil and Perfumers Products
given. Besides a Trophy and a Certificate, (4) Extruded & Thermoformed Plastic
the First Award carries a cash prize of Products (5) Scientific Glass Apparatus and
Rs.1,00,000/-, the Second and the third Equipments (6) Refractory (7) Soya Products
Awards carry cash prizes of Rs.75,000/- (8) Bread, Buns & other Bakery Products (9)
and 50,000/- respectively. The Special Sanitary Fittings (10) Machine Tools (11) Air
Recognition Awards carry a cash prize of Conditioners (12) Stainless Steel Utensils
Rs.50,000/-, a Trophy and a Certificate. (13)Electric Fans (14) Electric Wet Grinder
(15) Inverter (16) Home Furnishing/Home
Textiles (17) Sports-wear and (18) Medical
3.2.15.2 The First National Award for Small
Implant Products. The Awards were given
Scale Entrepreneurs for 2006 has been
away by the Hon’ble Prime Minister of India
bagged by an entrepreneur from Andhra
in a public function held in Vigyan Bhavan.
Pradesh. The Second & Third Awards have
been awarded to entrepreneurs from West
3.2.17 Sub-Contracting Exchange for
Bengal and Andhra Pradesh respectively.
Ancillary Development
The Special Award for Woman Entrepreneur
has been won by an entrepreneur from
3.2.17.1 The main objective of the “Sub-
Andhra Pradesh and Rajasthan and the
contracting Exchange Scheme” is to store
Special Award for SC/ST Entrepreneur
such data as to arrange match-making
went to a women entrepreneur from West
through an appropriate software between
Bengal. Besides, an entrepreneur each
a buyer and seller that may result in
from 15 applicant States have been given
increased business opportunities. 35 Sub-
Special Recognition Awards. The awards contracting Exchanges have been set up
were given away by the Hon’ble Prime in MSME Development Institutes/Branch
Minister of India in a public function held in MSME Development Institutes under MSME
Vigyan Bhavan. Development Organisation (MSME DO)
and 67 Sub-contracting Exchanges have
3.2.16 National Award for Quality Prod- been sanctioned which have been set up
ucts in Small Scale Industries by Industries Associations/NGOs in various
parts of the country up to 30.11.07. Four
3.2.16.1 Under this Scheme, every year more Sub-contracting Exchanges which were
certain products are selected for conferring the already approved in the 2006-07 are likely to
Award. One National Award is given for each be set up during the remaining months of the
category of the selected products. The Award financial year 2007-08.
carries a trophy, a certificate and a cash prize
of Rs.1,00,000/-. 3.2.17.2 One more on going component
under the Scheme i.e. Vendor Development
3.2.16.2 The National Award for Programme-cum-Domestic Fair (VDP cum
Quality Product 2006 has been given DF) both at National and State Level are also
to 18 entrepreneurs for 18 products viz; conducted by MSME Development Institutes.
34
These VDP-cum-DF provide a common MSE sector. First is the District Industries
platform for large scale enterprises i.e. Centres (DICs) of the State Governments,
purchasing organizations and Micro, Small & which furnish the updated information on
Medium Enterprises as sellers, to interact with the number of registered enterprises. But
each other and establish long term linkages. registered enterprises constitute only a
small percentage of the total number of
3.2.17.3 About 35-40 VDP-cum-DF are enterprises, thereby leaving a huge data
conducted in a year of which 8-10 are at gap. The second important source is the
National level. 34 Vendor Development MSE Associations, which are spread across
Programmes were conducted during the the country. The present database with
financial year 2006-07. 12 VDP-cum- MSME-DO suggests the number of such
DF have been conducted by the MSME Associations in the vicinity of 350, including
Development Institutes in different parts of both National and State level, and are mainly
the country till 30.11.2007 and 29 VDP-cum- sector/product specific. MSME-DO has been
DF are likely to be orgenised in the remaining using the services of these Associations
months of the financial year 2007-08. from time to time, especially with regard to
data on number of unregistered enterprises,
3.2.17.4 Now the Scheme of “ Sub- production, exports, etc. relating to specific
Contracting Exchange for Ancillary product groups like pump industry, drugs
Development” has been discontinued from and pharmaceuticals, etc. However, limited
01.04.2007 . availability of funds is the main constraint
faced by these Associations in building a
3.2.18 Scheme for Capacity Building, reliable database.
Strengthening of Database and
Advocacy by Industry/Enter- 3.2.18.2 The Associations of Micro and
prise Associations Small Enterprises (MSEs) do not have
adequate capacity to collect and interpret data
3.2.18.1 A reliable database is the key relating to changes in the market scenario,
input in any policy decision-making process. owing to the limited availability of funds and
This is more so for the micro and small the absence of expertise in the matter. As a
enterprise (MSE) in view of its large size result, their articulation of views on specific
and wide disparity among the enterprises issues concerning their product groups
within the sector. The MSME-DO conducts leaves much to be desired. In spite of the
periodic Census for strengthening/updating fact that the Associations of the MSEs have
the database on MSE sector. So far, it has been made members of the SSI Board and
conducted three Censuses in the year the members of the Steering Committees of
1971-72, 1992-93 and 2001-02. However, certain national programmes for development
the limiting factor is the long gap between of some products, their existing weakness
two Censuses and the high cost involved in this regard, prevents them from playing
in conducting Census. In the intermittent the expected role effectively. Therefore,
period, two sources are used for obtaining to strengthen their role and increase their
information/data on the status of the efficiency, it was decided to provide financial
35
MSME
assistance annually for the secretarial and will be constructed during 11th Five Year Plan.
advisory/ extension services to selected Further, under this Scheme, funds are also being
National Associations up to a maximum provided for special maintenance/renovation of
of Rs. 5 lakh depending upon the size and the buildings.
reach of the Association. Under the Scheme,
the beneficiary Associations are required to b) Construction of Residential
provide the regular manpower at their own Accommodation for The Officers & Staff of
cost and office space and also make an Msme-DO in NE Region, Hilly Areas, Union
equivalent/ matching contribution towards Territories, Backward and Difficult Areas
cost of modernisation of their facilities/
equipment and training of their personnel. 3.2.19.2 The Scheme was sanctioned during
The scope of the Scheme is being further 7th Five Year Plan (1985-86) with the objective
widened to provide financial assistance to provide residential accommodation to the
to the MSE Associations for organizing officers and staff of MSME-DO posted in
seminars/ workshops/ symposiums on North Eastern, Hilly Areas etc. where suitable
issues of relevance to the MSE sector. rented accommodation at reasonable rates is
not available.
3.2.18.3 During 2006-07, 31 MSE
Associations received financial assistance 3.2.19.3 Since the inception of the Scheme,
residential accommodation at Srinagar,
under the Scheme with total amount
Guwahati, Aizwal and Port Blair have been
sanctioned standing at Rs. 97 lakh. Out of
constructed and construction is in progress
this, Rs. 46.62 lakh has been disbursed to
at Tura and Tezpur. The construction of
industry associations under the first phase.
residential quarters at remaining institutes
will be taken up during 11th Five Year Plan.
3.2.19 Land and Building for Office
Accommodation and Residential 3.2.20 Public Awareness
Accommodation in Backward
Areas
3.2.20.1 The Advertising and Publicity
Division of MSME-DO disseminates
a) Construction of Office Accommoda- information about the Government
tion for Msme-DO Field Offices policies and programmes, incentives and
facilities and institutional support services
3.2.19.1 The Scheme has been in operation available to MSMEs. It coordinates with the
since 1961 with the basic objective of acquiring Directorate of Audio Visual Publicity (DAVP)
sheds/land from State Govts. for construction and field offices for timely appearance
of permanent office buildings of field offices of advertisements on entrepreneurship
located in various parts of the country. Since development programmes, skill development
the inception of the Scheme, 90% of the offices courses, etc., in local language newspapers
have their own permanent buildings, which were in different parts of the country. During the
constructed out of the funds allotted under the year under report, 900 advertisements have
Scheme. The remaining 10% of the buildings been released up to December, 2007.
36
3.2.20.2 An effective media plan was l Laghu Udyog Samachar October -

prepared for wide publicity of the special events December, 2007 (Bilingual)
organised by the Ministry of Micro, Small and
l A Guide to Self- employment (2nd
Medium Enterprises. Advertisements for Edition) (English)
“MSME Expo – 2007” and National Awards
Function were designed and released in all l Eleven Folders/Brochures on dif-
leading English/Hindi newspapers for wide ferent Schemes/ Programmes of
publicity across the country. The Division MSME-DO (Hindi)
also arranged the press conferences, press l SC/ST Sub-Plan (Policies & Pro-
meets and coordinated the press coverage grammes) (Hindi & English)
and releases of important events.
l Micro and Small Enterprising Clus-
ter Development Guide (English &
a) Laghu Udyog Samachar and
Hindi)
other Publications
l “Inclusive Growth is on the Top of
3.2.20.3 Laghu Udyog Samachar, a our Ministry’s Agenda” (English)
Quarterly Journal in English and Hindi for
l Speeches delivered by Hon’ble
MSMEs is disseminating updated information
Prime Minister, Minister of MSME
for the benefit of the prospective and existing
and Secretary (MSME) on the
entrepreneurs. Laghu Udyog Samachar is
occasion of National Awards
an important window in print for the MSMEs,
Function (English & Hindi).
providing access to the latest information on
a variety of topics. It creates awareness and b) Information & Facilitation Counter (Ifc)
disseminates information on policies and
programmes of the Central and the State 3.2.20.5 The Information and Facilitation
Governments, Government of India orders, Counter (IFC) in MSME-DO is disseminating
circulars, gazette notifications, field activities, updated information for the benefit of the
statistical and economic information as well prospective and existing entrepreneurs.
as articles on various issues pertaining to the The IFC provides speedy and easy access
MSMEs. to information to the public on the services
and activities of MSME-DO and related
3.2.20.4 During the year 2007-08, the institutions in the area of MSMEs promotion
following publications were brought out: and development. Copies of important
brochures, pamphlets, books, etc. are made
available to the entrepreneurs at IFC. Other
l Laghu Udyog Samachar January -
activities of IFC include: (i) counseling &
March, 2007 (Bilingual)
information on how to set up an enterprise
l Laghu Udyog Samachar April – and provide proper guidance, (ii) documents
June, 2007 (Bilingual) on technical schemes, project report and
details of various programmes being
l Laghu Udyog Samachar July – Sep- implemented by the MSME-DO, (iii) policies
tember, 2007 (Bilingual) concerning MSMEs and schemes of various
37
MSME
State Governments for promotion of MSMEs, l To establish possible linkages with

(iv) information about filing of Memorandum, existing databases and the end-
(v) information on the Micro, Small and entrepreneurs for development and
Medium Enterprises Development Act, 2006, promotion of the MSME Sector.
(vi) credit policies of the Government, (vi)
l To standardize by introducing auto-
statistics related to micro, small and medium mation tools and related soft-wares
enterprises, (vii) technical and marketing for streamlining data storage activ-
information concerning MSMEs, (vii) list of ity in MSME-DO with the objective
Items reserved for exclusive manufacture in of bringing out transparency of rel-
MSMEs, etc. IFC is the nodal office to accept evant real-time data through on-line
the applications under RTI Act and forward access by the public.
the same to the concerned Division/Section
of the Ministry for further necessary action. l To create and maintain a website for
hosting all relevant data, to the ex-
tent possible, as available within the
3.2.21 Small Enterprise Information
MSME-DO.
& Resource Centre Network
(Senet) l To also hyperlink other websites, es-
pecially field formations of MSME-
3.2.21.1 “Small Enterprise Information & DO, Autonomous bodies, other gov-
Resource Centre Network” (SENET), was ernment departments, etc in order
launched in April 1997 by the then Office of to enable one-stop-access for the
information seekers, industry asso-
the Development Commissioner (SSI) (now
ciations, individual industries, etc.
MSME-DO) with the following objectives.
This Scheme was modified subsequently 3.2.21.2 ACTUAL PERFORMANCE
by enlarging its scope to also include office (Achievements):
automation tools, in its ambit;
(i) Office of the MSME-DO:
l To pioneer, create and promote
web-based database of all relevant l IT-Infrastructure in the Main Centre
information, data, etc., for the ben- has been developed with a dedi-
efit of MSME Sector. cated Server Room having several
independent Servers, including two
l To facilitate easier on-line access for
Web-servers for hosting website of
information seekers, especially the
MSME-DO.
Micro, Small & Medium sector, by
networking to the extent possible, all l Three database Servers have been
relevant data from Central & State commissioned along with NIC`s
Governments, Government agen- dedicated leased-line connectivity
cies engaged directly or indirectly with a structured LAN. The NIC`s
in the promotion, development, etc leased line had been installed in the
of the MSME sector, national and MSME-DO during December 2006.
state-level Industry Associations,
l An English website was created
NGOs, etc. and launched in 2000 and main-
38
tained regularly. It was upgraded l All automation applications of NIC

to a knowledge-based database like Document Management Infor-
driven, interactive Portal, which was mation System (DMIS), Personnel
launched on 30th August 2001. This Information System, Payroll, Budget
Portal now has more than 8000 pag- & Library have been introduced in
es of static information and is being MSME-DO during the year 2007.
updated regularly.
(ii) Field Offices of MSME-DO
l A Hindi language website has also
been created and is regularly main- l 20 SENET Centres were initially
tained through a hyperlink. given networking equipment for 64
kbps leased-line connection to the
l The MSME-DO’s Website has been
main-center and database building.
restructured in respect to change in
10 more MSME DIs were provided
the nomenclature of the Office (af-
with networking hardware. Almost
ter comming into force of MSMED
all MSME DIs now are networked.
Act, 2006) and a new URL www.
dcmsme.gov.in has been created in l All 30 MSME DIs have been allot-
NIC Server during 2007. ted new e-mail address of NIC for
official use during 2007.
l All officers of MSME-DO have been
allotted new e-mail address of NIC l All MSME DIs have been hyper-
for official use during 2007. linked to website of MSME-DO. 25
MSME DIs have already hosted
l The entire IT-infrastructure has
their web site on NIC Server.
been protected by installation of a
highly sophisticated Intruder Detec- l Thirty numbers of ‘Touch Screen Ki-
tion System (IDS). osks’ have been installed in all the
field offices, namely Micro, Small &
l Local Area Networking (LAN) has
Medium Enterprise- Development
been introduced by providing com-
Institutes (MSME DIs) throughout the
puters to almost all the officers.
country to enable information seek-
l All computers have been networked ers get any web-based data pertain-
with LAN and are also provided with ing to MSME-DO.
internet connections.
3.2.21.3 Future Planned Activities:
l Few computers have been provided
with facility to view live parliamen- The following long-term activities are
tary proceedings. planned to be taken up, subject to approval
of the competent authority.:-
l On-line data for ISO-9000 Reim-
bursement Scheme is maintained.
l Integrating with National Informatics
l The latest MSMED Act-2006 and oth- Centre (NIC), by using their infra-
er related matters like notifications, structure to the maximum. This will
O.M. etc. have been hosted on the enable better economics in future-
Website. budgeting for SENET.
39
MSME
l Introduce any automation tools de- 2007-08. Upto 18 January, 2008, MSME-
veloped by National Informatics DO has participated in nine Fairs: Expo Riva
Centre (NIC) to bring in an element Schuh, Garda, Italy (June 16 – 19, 2007), 22nd
of standardization. International Exhibition for Machine Tools &
Machinery, Argentina (July 13 - 18, 2007),
l Introduce web-enabled data pertain-
Africa’s Big Seven Exhibition, Johannesburg
ing to the “The ‘Right to Information
(SA) (July 15 – 17, 2007), Fiera-del-Levante,
Act (RTI)’ matters.
Bari, Italy, (Sept. 8 – 16, 2007), 7th Tehran
l Maintenance of Website of MSME- International Fair, Iran (Sept. 8 – 12, 2007),
DO. GDS International Footwear Fair, Dusseldorf,
Germany (Sept. 14 – 16, 2007), South Asian
3.2.22 Modernisation Of Msme-do
Country Commodity Fair, Beijing, China (Dec.
Libraries
28 – 30, 2007), Intermoda – International
Apparel & Textile Fair, Mexico (Jan. 15 – 18,
3.2.22.1 MSME-DO is maintaining a Library at
2008) & Rwanda Fair (Kirgi) held in August
its Headquaters at Nirman Bhawan and all its
2007. The exhibits of 52 MSEs were displayed
field institutes in the country. These Libraries
by their representatives under MSME
are the valuable source of information and are
India stall. The exhibits from 48 MSEs are
maintained with an objective of making available
different technical information required for the expected for display by their representatives
development and promotion of micro and small in the remaining four International Trade Fairs
enterprises. The officers of the institutes and under MSME India stall upto March, 2008.
the entrepreneurs of the areas use the library However, participating units are selected
to know about the new developments taking by MSME-DIs and for their confirmed
place in the different segments of industrial participation, they have to pay 40% rental
and business environment. charges of their booked space (min. 6 sq.mtr.)
and also to carry/ manage their exhibits (to
3.2.22.2 The libraries are equipped with and fro) including custom clearance etc.
technical books, journals, reports, project
profiles and statistical surveys including 3.2.24 Micro and Small Enter-
other related government publication etc. prises Cluster Development Pro-
The libraries are needed to be upgraded gramme (MSE-CDP)
regularly with the latest publications and
technical books. MSME-DO libraries are also 3.2.24.1 A scheme on Technology
being equipped with Computers, Photostat Upgradation and Management Programme
Machines, Internet connectivity etc. called UPTECH was launched in February,
1998 to address the issues related to
3.2.23 Participation in Overseas Inter- Technology Upgradation and Modernisation
national Trade Fairs/ Exhibitions of Small Scale Industries (now MSEs) on
cluster approach basis. It was later renamed
3.2.23.1 The MSME-DO has decided to as Small Industry Cluster Development
participate in 13 Fairs, as approved by Programme(SICDP) in the year 2003 while
the Hon’ble Minister (MSME) for the year adopting a holistic approach for cluster
40
development comprising of diagnostic 3.2.24.4 During the financial year 2007-08,

study, trust building, exports, marketing, skill sixty six clusters have been approved till 15
development, technology upgradation of the December 2007 for development including
enterprises, setting up of common facility setting up of common facility centres in
centres, etc. After announcement of the seven clusters under MSE-CDP. During
package for promotion of Micro and Small remaining period of the year, 58 additional
Enterprises, the Scheme has again been clusters are likely to be approved. BE for the
renamed as Micro and Small Enterprises Scheme for the year 2007-08 is Rs. 43.0
Cluster Development Programme(MSE- crore including Rs. 4.3 crore for NE Region.
CDP) and the scope of Scheme further Till December 15, 2007, an expenditure of
enlarged by inclusion of provisions for Rs. 5.0 crore approximately has been
development/ upgradation of physical incurred. RE for the year has been proposed
infrastructure also. at Rs. 9 crore including Rs. 1.0 crore for
NE region, which is likely to be fully utilized
3.2.24.2 156 clusters covering twenty four during the current financial year.
states in the country have so far been
taken up for development under MSE- 3.2.25 Credit Guarantee Fund Scheme
CDP including five National Programmes for Micro and Small Enterprises
for development of Toy, Stone , Machine
Tool, Lock and Hand Tool industries being 3.2.25.1 The Government of India launched
implemented in collaboration with UNIDO. the Credit Guarantee Fund Scheme for Micro
Efforts are being made to include the clusters and Small Enterprises in August, 2000, with the
of all the states under the Programme. objective of making available credit to micro
In addition, 172 diagnostic studies were and small enterprises (MSEs), particularly
undertaken to find out the problems of the micro enterprises, without collateral/ third
clusters so that further intervention can be party guarantees. The Scheme is being
initiated for development of these clusters. operated by the Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE)
3.2.24.3 Two Centres, one at National set up jointly by the Government of India and
Institute for Micro, Small & Medium SIDBI.
Enterprises (NI-MSME), Hyderabad
and the other at International Centre for 3.2.25.2 The Scheme covers collateral-free
Cluster Competitiveness and Growth at the credit facility (term loan and/ or working capital
Entrepreneurship Development Institute including non fund based working capital)
of India (EDII), Gandhinagar, have been extended by eligible lending institutions to
established by the Ministry for imparting new and existing micro and small enterprises
training to Cluster Development Executives up to Rs. 50 lakh per borrowing unit. The
(CDEs), monitoring cluster development guarantee cover is up to 75% of the credit
work, assisting formulation of programmes sanctioned (80% for loans up to Rs. 5 lakh
and policies for cluster development and provided to micro enterprises, MSEs owned/
guidance. operated by women and loans provided
41
MSME
in the NE region). The Member Lending Programme which has been tied up with
Institutions (MLIs) availing guarantee from the existing Micro Credit Scheme of SIDBI.
the Trust have to pay one time Guarantee Under the Scheme, the Government of India
Fee of 1.5% (0.75% for loans provided in the provides funds to SIDBI under a ‘Portfolio
NE region) and Service Fee of 0.75% per Risk Fund’ (PRF), which is used for security
annum, of the credit sanctioned. deposit requirement of the loan amount
from the MFIs/NGOs. At present, SIDBI
3.2.25.3 The Credit Guarantee Scheme takes fixed deposit equal to 10% of the loan
was initially approved for one year with a amount. Under the PRF, the share of MFIs/
corpus of Rs. 125 crore contributed by the NGOs is 2.5% of the loan amount (i.e. 25%
Government of India and SIDBI in the ratio of security deposit) and balance 7.5% (i.e.
of 4:1. Subsequently, Government decided 75% of security deposit) is adjusted from the
to continue the scheme beyond one year. funds provided by the Government under the
The corpus of CGTMSE has been enhanced Scheme.
to Rs. 1,584.05 crore with the contribution
of Rs.1, 267.25 crore from the GoI and Rs. 3.2.26.2 As on 30th November, 2007, the
316.80 crore from SIDBI. As announced in Government has released an amount of Rs.
the ‘Package for Promotion of Micro and 25 crore towards ‘Portfolio Risk Fund’ (PRF).
Small Enterprises’, the corpus fund will be Of this, Rs.18.86 crore has been utilized by
raised to Rs.2, 500 crore during the XIth SIDBI up to November, 2007. As on 30th
Plan. November, 2007, cumulative loan amount
of Rs. 251.52 crore has been provided to
3.2.25.4 As on 30th November, 2007, 62 MFIs/NGOs under the Scheme benefiting
eligible institutions comprising 28 Public approximately 5.09 lakh persons. Of this,
Sector Banks, 13 Private Sector Banks, more than 90% are estimated to be women
18 Regional Rural Banks (RRBs), National beneficiaries.
Small Industries Corporation (NSIC), North
Eastern Development Finance Corporation 3.2.26.3 While the funds under PRF are to be
(NEDFI) and Small Industries Development utilized for extending loans in all States/UTs,
Bank of India (SIDBI) have become Member the focus has been to cover maximum loans
Lending Institutions (MLIs) of CGTMSE from the underserved States, particularly the
under the Credit Guarantee Scheme. 84,507 North Eastern region.
proposals amounting to Rs. 2,293.96 crore
have been approved for guarantee cover 3.2.27 SSI-MDA Scheme
under the Scheme up to 30th November,
2007. 3.2.27.1 As per modified guidelines,
participating MSEs in International Trade
3.2.26 Micro Finance Programme Fair/ Exhibition may get total subsidy upto
Rs. 1.25 lakhs per unit (Rs. 1.5 lakh in case
3.2.26.1 Since 2003-04, the Ministry has of micro manufacturing enterprise) once
been operating a Scheme of Micro Finance in a year towards subsidy on space rent,
42
shipping cost & air fare. 90 participating issues. The small scale entrepreneurs are
MSEs (in 2006-07 & upto Sept. 2007 during being sensitised to the need for protection
2007-08) were reimbursed subsidy upto and methodology to be adopted for IPR
18 January, 2008 and 50 MSEs are likely management through not only diffusion
to get subsidy for their participation upto and upgradation of technology, but also
March, 2008. Rs. 10.08 lakhs has been through employing existing IPR resources
reimbursed to 58 MSEs for adoption of for the purpose. Till date, more than 90 such
Bar Code Certification obtained from GS1 programmes have been organised through
India as one-time registration fee and Rs. MSME-DIs all over the country. With the
67,500/- to 18 MSEs as subsidy on annual initiatives of MSME-DO, Kulu Shawls (Kulu)
recurring fee also. It is expected that about and Wet Grinder (Coimbatore) have been
42 SMEs will avail subsidy for adoption of registered under Geographical Indications
Bar Code upto March, 2008. Five one- (GI) Act and efforts are being made to assist
day Seminars/ Sensitization Programmes other group of industries/clusters to register
on Bar Code have been organized by 05 under G.I. Act.
MSME-DIs. 211 MSEs have participated in
these programmes. 12 one-day Seminar/
3.2.28.2 Under the National Manufacturing
Sensitization Programmes will be organized
Competitive Programme (NMCP) drawn by
by concerned Director, MSME-DIs upto
the National Manufacturing Competitiveness
March, 2008.
Council (NMCC), Building Awareness on
Intellectual Property Rights for the MSME
3.2.28 Intellectual Property Rights (IPRs)
is one of the 9 schemes drawn under the
NMCP. The IPR Cell in MSME-DO has
3.2.28.1 IPR protection and management of
been entrusted with the responsibility of
rapid up scaling through infusion of technology
implementation of this scheme. The objective
is important for the development of small
of NMCP is to revive the manufacturing
enterprises in these areas. With the onset
sector, particularly the MSMEs, and to
of the trade related aspects of Intellectual
Property Rights (TRIPS) agreement under enable them to adjust to the competitive
WTO and the consequent changes made by pressures caused by liberalization and
various countries in their IPR laws, including modernization of tariff rates. The objectives
India, the issues of IPR have gained special of the interventions proposed under IPRs
importance in the Small Scale Industry (now are mainly concerned with the creation of
MSE) sector. It was noticed that changes IPRs awareness to enable MSMEs to protect
of far reaching consequences were being their ideas/strategies, utilization of IPR tools
effected in the business landscape without by MSMEs for technology upgradation and
the sector being aware of it. It was also felt enhancing competitiveness and ensuring
that IPRs require understanding and attention access to technical facilities and expertise for
by the industry. To meet this objective, the value addition. The implementation of this
IPR Cell was created in MSME-DO in the scheme will be in Public Private Partnership
year 2001-02 for generating awareness (PPP) mode with the active participation
amongst the enterprises on IPR related of National/International Agencies and
43
MSME
Departments looking after the IPRs issues. State Directorates of Industries (SDIs) and
The scheme has been recommended by were lying vacant for more than one year,
the EFC meeting held on 15-11-2007 under have been abolished and currently, 351
the Chairmanship of the Secretary (MSME). persons are working in various States/ UTs
The Hon’ble Minister has also approved the under the Scheme.
scheme. The guidelines for implementation
of this scheme are under preparation. The 3.2.29.4 During the 8th Plan (1992-1997),
Seheme will be implemented after the a component of computerization of District
necessary concurrence of the competent Industries Centres (DICs) was added under
authority. the Scheme to automate the functions of DICs
for better utilization of staff, decentralized
data analysis and dissemination and
3.2.29 Scheme on “Collection Of Sta-
expeditious flow of data through computer
tistics of MSEs”
communication network. Thereafter, 138
DICs and 25 State/UT Directorates of
3.2.29.1 Introduction: Statistics and Data Industries were computerized through
Bank Division of MSME-DO collects, compiles National Informatics Centre (NIC).
and disseminates statistical information on
various economic parameters like number of 3.2.29.5 The coverage of the Scheme has
MSME units, employment and production in been extended to collect data on the Micro,
the small scale (now MS) sector under the Small and Medium Enterprises since 2nd
centrally sponsored scheme of “Collection October 2006 (Subsequent to coming into
of Statistics on SSIs”. The data/information effect of the MSMED Act 2006). A decision
helps in policy formulation/ implementation. has also been taken to conduct a new
census for the MSMEs.
3.2.29.2 The Scheme was started during
Fifth Five Year Plan period in 1975 with the 3.2.29.6 The Scheme is primarily concerned
objective to collect, compile and disseminate with the following:
statistical data/information on SSI sector.
Conduct of periodic census for the SSI l Computation of Index of Industrial
sector, sample survey, and collection of Production for the MSME sector for
Index of Industrial Production (IIP) data and estimating production trends in the
updation of frame, are covered under the MSME sector.
Scheme.
l Providing monthly production data
to Central Statistical Organisation
3.2.29.3 The Scheme is implemented
(CSO) pertaining to small scale sec-
through State Directorates of Industries
tor for compilation of the Index of In-
(SDIs) and their respective District Industries
dustrial Production (IIP) brought out
Centres (DICs). Under the scheme, 538 posts
by CSO.
were sanctioned on ad-hoc basis, which are
continuing on a year-to-year basis. Of these, l Estimation of information on number
187 posts, which could not be filled up by the of un-registered units.
44
l Estimation of production and em- item basket has 465 items grouped
ployment for both registered & un- into 29 major industry groups as
registered units. compared to 356 items in the earlier
basket.
l Updation of frame.
l The revised series has 126 products
l Conducting census and sample sur- in common with the old basket (i.e.
vey/diagnostic survey, from time to 1970 base basket).
time.
l The revised Series has followed
3.2.29.7 Performance under the Scheme the National Industrial Classifica-
during 2006-07 tion (NIC 1998) and ASICC 2000
(A Standard Industrial Commodity
l Collection/collation of data for com- Classification) instead of NIC-1987.
pilation of IIP for MSE sector (with
l The revised IIP is compiled quarterly
base year 1970).
and will be released with a time lag
l Updation in the base year for IIP for of about six weeks from the refer-
SSI from 1970 to 2001-02. ence quarter.
l Data collection on 18 reserved items 3.2.29.10 Based on the data received from
for inclusion in the general index of the sampled units, the quarterly index with
CSO the base year 2001-02 for the period April
2002 to March 2006 has been compiled. The
l Analysis of Registration Data. growth rates of MSE sector for the year 2002-
l Preparatory work concerning the 4th 03, 2003-04, 2004-05 , 2005-06 and 2006-
Census of MSMEs. 07 estimated on the basis of the new series
of IIP vis-à-vis old series of IIP and with total
3.2.29.8 The Index of Industrial Production manufacturing sector are given in Table 3.10
(IIP) for the MSE sector had 1970 as the base
year. It was considered necessary to update TABLE - 3.10: Growth Rates: MSE and
the base year to reflect the changing MSE Manufacturing Sector
(erstwhile SSI) sector. Accordingly based Year Growth Growth Growth
upon the data of the Third All India Census rates of rates rates of
on the sector, a new IIP with new item basket MSE with of MSE Manufacturing
and weighting diagram with 2001-02 as the 1970 base with Sector with
base year, has been compiled. The item IIP 2001-02 base year
basket in the updated index is fixed at 465 base 1993-94
items and 12303 units. IIP
2002-03 7.68 % 8.68 % 6.0
2003-04 8.59 % 9.64 % 7.4
3.2.29.9 Following are the salient features of 2004-05 9.96 % 10.88 % 9.2
the new IIP with base year as 2001-02: 2005-06 10.40 % 12.32 % 9.1
2006-07 abandoned 12.60% 12.5 #
l The revised Index of Industrial Pro- *
duction (IIP) is at All India level. * Based on the index of first three quarters i.e. April-
December, 2006.
l To have wider coverage, the revised # Source: http://mospi.nic.in/iip_table3.htm
45
MSME
3.2.29.11 It may be seen that the overall 3.3 Performance Of Mses

industrial growth rate of the Small Scale
Industries (MSE) sector in terms of Index of 3.3.1 MSME-DO provides estimates in
Industrial Production (IIP) (Base: 2001-02=100) respect of various performance parameters
rose to 12.60% during the year 2006-07 as relating to the growth of MSME Sector.
compared to 12.32% during the year 2005- The table showing the time series data
06. The MSE sector has also consistently on various economic parameters is
registered a higher growth rate as compared given below.
to the overall manufacturing sector.
TABLE- 3.11: MSEs Performance: Units, Investment, Production, Employment & Exports
Sl. Year Total SSI Fixed Production( Rs. crore) Employment Exports
No. units (lakh Investment Current Constant (lakh persons) (Rs.
numbers) (Rs. Crore) Prices Prices crore)
(1993-94)
1 1990-91 67.87 93555 78802 84728 158.34 9664
2 1991-92 70.63 100351 80615 87355 165.99 13883
(4.07)* (7.26) (2.30) (3.1) (4.83) (43.66)
3 1992-93 73.51 109623 84413 92246 174.84 17784
(4.07) (9.24) (4.71) (5.6) (5.33) (28.10)
4 1993-94 76.49 115795 98796 98796 182.64 25307
(4.07) (5.63) (17.04) (7.1) (4.46) (42.30)
5 1994-95 79.60 123790 122154 108774 191.40 29068
(4.07) (6.9) (23.64) (10.1) (4.79) (14.86)
6 1995-96 82.84 125750 147712 121175 197.93 36470
(4.07) (1.58) (20.92) (11.40) (3.42) (25.46)
7 1996-97 86.21 130560 167805 134892 205.86 39248
(4.07) (3.82) (13.60) (11.32) (4.00) (7.62)
8 1997-98 89.71 133242 187217 146262.9 213.16 44442
(4.07) (2.05) (11.57) (8.43) (3.55) (13.23)
9 1998-99 93.36 135482 210454 157525.1 220.55 48979
(4.07) (1.68) (12.41) (7.7) (3.46) (10.21)
10 1999-00 97.15 139982 233760 170379.2 229.10 54200
(4.07) (3.32) (11.07) (8.16) (3.88) (10.66)
11 2000-01 101.1 146845 261297 184401.4 238.73 69797
(4.07) (4.90) (11.78) (8.23) (4.21) (28.78)
12 2001-02 105.21 154349 282270 195613 249.33 71244
(4.07) (5.11) (8.03) (6.06) (4.44) (2.07)
(At 2001-02 prices)
13 2002-03 109.49 162317 314850 306771 260.21 86013
(4.07) (5.16) (11.54) (8.68) (4.36) (20.73)
14 2003-04 113.95 170219 364547 336344 271.42 97644
(4.07) (4.87) (15.78) (9.64) (4.31) (13.52)
15 2004-05 118.59 178699 429796 372938 282.57 124417
(4.07) (4.98) (17.90) (10.88) (4.11) (27.42)
16 2005-06 123.42 188113 497842 418884 294.91 150242
(4.07) (5.27) (15.83) (12.32) (4.37) (20.76)
17 2 0 0 6 - 128.44 207307 585112 471663 312.52 NA
07(P) (4.07) (4.67) (17.53) (12.60) (4.23)
* The figures in bracket indicate growth rate over the previous year
46
3.3.2 Comparison of the MSE sector with with the reference year of 2001-02 was 249.33
the overall Industrial Sector lakh persons. As per the estimates made for
the year 2006-07, total employment in the
3.3.2.1 The MSE sector has maintained a MSE sector stood at 312.52 lakh persons.
higher rate of growth vis-à-vis the overall
industrial sector. The comparative growth 3.4 THE DATABASE ON THE
rates of production for both the sectors during MSME SECTOR
recent years are given in Table 3.12
TABLE - 3.12: Comparative Growth Rates 3.4.1 The MSMED Act came into effect
Year Growth Overall on 2nd October 2006. Accordingly, the
Rate of MSE industrial coverage and the investment ceiling have
Sector (%) Sector (%) been widened and the sector is now referred
2002-03 8.68 5.75 to as micro, small and medium enterprises
2003-04 9.64 7.02 sector. There is an immediate requirement
2004-05 10.88 8.36 to update the database accordingly.
2005-06 12.32 8.15
2006-07* 12.60 10.8 # 3.4.2 Under the new scheme “Quinquennial
* April-December, 2006 Census and Annual Sample Surveys”,
#Source:http://commerce.nic.in/PressRelease/ henceforth a Census would be conducted
pressrelease_detail.asp?id=1980
once every five years and annual sample
surveys will be conducted in the intervening
3.3.3 Contribution of MSE in the
years. A fresh Census (4th) is being launched
Gross Domestic Product (GDP)
during 2007-08 accordingly. In 4th Census
TABLE - 3.13: Contribution of MSE in GDP of MSME, a complete enumeration of
Year Contribution of MSE (%) at registered enterprises and a sample survey
1999-2000 prices in of unregistered enterprises will be done. For
Total Gross the first time, medium enterprises will also
Industrial Domestic be covered under this Census.
Production Product
(GDP)
3.4.3 The objectives of the proposed
2001-02 39.12 5.79
Census are as follows-
2002-03 38.89 5.92
2003-04 38.74 5.79
l Creation of database for registered
2004-05 38.62 5.84
MSME sector-Statistics and infor-
2005-06 38.56 5.83
mation is proposed to be collected
3.3.4 Employment in MSE Sector in respect of number of enterprises,
employment, cluster, production,
3.3.4.1 The total employment in the MSE extent of closure/sickness and other
sector including SSSBEs (erstwhile SSI relevant economic parameters per-
sector) in the country estimated on the basis of taining to micro, small and medium
the Third All India Census of SSIs conducted enterprises.
47
MSME
l Data on enterprises owned and/or under Prime Minister’s Rozgar Yojana

managed by women and other so- (PMRY) Scheme.
cial categories.
l Estimate the size of the unregistered
l Information on Khadi & Village Industry MSME sector, including Khadi & Vil-
units set up under Rural Employment lage Industries and Coir Industries.
Generation Programme (REGP), Coir
3.4.4 The 4th Census for the MSMEs is ex-
Sector units and the units registered
pected to be launched during 2007-08.
3.4 Charts Representing the Performance of MSE Sector
1. Number of MSE Units
NO. OF REGISTERED UNITS NO. OF UNREGISTERED UNITS TOTAL
128.44
123.42
140.00
118.59
113.95
109.49
108.12
104.12
100.35
120.00
96.83
93.46
Lakh Numbers
100.00
80.00
60.00
20.32
19.30
18.24
40.00
17.12
16.03
20.00
0.00
2002-03 2003-04 2004-05 2005-06 2006-07
Year
2. Fixed Investment in MSE Sector

REGISTERED UNITS UNREGISTERED UNITS ALL UNITS
250000
Fixed Investment (in Rs. Crore)
207307
198050
200000 188793
178269
169579
150000 126814 133329

112014 120133
105629
100000
68660 71237 73978
63950 66254
50000
0
2002-03 2003-04 2004-05 2005-06 2006-07
Year
48
3. Production in MSE sector
REGISTERED UNITS UNREGISTERUNITSED ALL UNITS
585112
600000
497842
453877
429796
Production (in Rs.)
386181
500000
364547
333397
314850
282783
400000
244232
300000
131235
111661
96399
200000
81764
70618
100000
0
2002-03 2003-04 2004-05 2005-06 2006-07
Year
4. Employment in MSE Sector
EMPLOYMENT IN REGISTERED UNITS(Nos.)

EMPLOYMENT IN UNREGISTERED UNITS(Nos.)
EMPLOYMENT IN TOTAL MSE SECTOR UNITS(Nos.)
Employment (in person)
31251682
29984658
28755473
35000000
27530222
26367980
30000000
21378996
20605591
22201644
19883698
19192152
25000000
20000000
15000000
8605662
7175828
8149881
7646523
9050038
10000000
5000000
0
2002-03 2003-04 2004-05 2005-06 2006-07
Year
49
MSME
50
Chapter IV
NATIONAL SMALL INDUSTRIES
CORPORATION LIMITED
4.1 INTRODUCTION Technology, Finance and other Support

Services.
4.1.1 The National Small Industries
Corporation Ltd., (NSIC), an ISO 9001 4.3.1 Marketing Support
certified company, since its establishment in
1955, has been working to fulfill its mission of 4.3.1.1 Marketing, a strategic tool for
promoting, aiding and fostering the growth of business development is critical to the
small enterprises in the country. With passing growth and survival of small enterprises in
of the Micro, Small and Medium Enterprises today’s intensely competitive market. NSIC
Development (MSMED) Act, 2006, NSIC acts as a facilitator to promote the products of
has also included medium enterprises in its small enterprises and has devised a number
ambit for providing assistance under some of schemes to support small enterprises in
of its schemes. their marketing efforts, both in and outside
the country. These schemes are briefly
described as under:-
4.2 ORGANISATIONAL SET UP
l Raw Material Distribution: NSIC
4.2.1 NSIC operates through 9 Zonal has made arrangements with
offices, 35 Branch Offices, 17 Sub-Offices, bulk manufacturers like M/s. Steel
5 Technical Services Centres, 3 Extension Authority of India Ltd. (SAIL), M/s.
Centres, 2 Software Technology Parks and Rashtriya Ispat Nigam Ltd. (RNIL),
1 Office outside India – at Johannesburg M/s. National Aluminium Company
(South Africa). Ltd. (NALCO) and Sterlite group
for procuring raw materials. These
4.3 SCHEMES OF THE CORPORA- arrangements are aimed at providing
TION the raw material alongwi th financial
assistance, as per the requirements
To enhance the competitiveness of of small enterprises.
micro & small enterprises, NSIC provides During the year 2006-
integrated support services under Marketing, 07 Raw Material to the tune of
51
MSME
Rs. 2109.37 crores was provided to are also provided to enable small
small enterprises. During the year enterprises to improve and maintain
2007-08, upto 31st December, 2007 the quality of their products conforming
Raw Material Assistance provided is to the standard specifications.
Rs.2205.40 crores.
During 2006-07, marketing
l Consortia and Tender Marketing : assistance provided to the units was
Micro, small & medium enterprises in Rs.15.25 crores and during financial
their individual capacity face problems year 2007-08 up to 31st December,
to procure and execute large orders, 2007 assistance provided is Rs.17.05
which inhibit and restrict their growth. crores.
NSIC, accordingly adopts Consortia
l Single Point Registration for
approach and forms consortia of units
manufacturing the same products, Government Purchase: NSIC
thereby easing out marketing operates a Single Point Registration
problems of small enterprises. The Scheme under the Government
Corporation explores the market and Purchase Programme, wherein the
secures orders for bulk quantities. registered small enterprises get
These orders are then distributed to purchase preference in Government
small enterprises in tune with their Purchase Programme, exemption
production capacity. Testing facilities from payment of Earnest Money
Shri Dinesh Rai, Union Secretary, Ministry of Micro, Small & Medium Enterprises (MSME), visit NSIC
Incubator at NSIC-Technical Service Centre, Okhla, New Delhi. Explaining the functioning of the
Incubator to him is Shri H.P. Kumar, Chairman-cum-Managing Director, NSIC and Shri Pravir
Kumar, Joint Secretary, Ministry of MSME.
52
Deposit etc. The small enterprises exhibitions and buyer-seller meets.

registered under this scheme get the During the year 2007-08, upto 31st
following facilities : December, 2007, Corporation has
participated in 55 such events.
Ø Issue of tender sets free of cost.
l Buyer - Seller Meets: Bulk and
Ø Advance intimation of tenders
issued by DGS&D. departmental buyers such as
Railways, Defence, Communication
Ø Exemption from payment of Departments and large Companies
earnest money. are invited to participate in buyer-
Ø Waiver of security deposit up to seller meets to enrich micro, small
& medium enterprises’ knowledge
the monetary limit for which the
regarding terms and conditions,
enterprise is registered.
quality standards, etc required
Ø Issue of competency certificate by the buyer. These programmes
in case the value of an order are aimed at vendor development
exceeds the monetary limit, after from small enterprises for the bulk
due verification. manufacturers.
l Export of Projects: NSIC is a

2506 units were registered
under Single Point Registration recognized Export House and is
Scheme during the year 2006- exporting projects of micro & small
enterprises to other countries. The
07. During the year 2007-08, up
major areas of operation are:
to 31st December, 2007, another
1560 units have been registered  Supply of Small Industry projects
under the scheme. on turnkey basis and
 Export of IT solutions from India

l Exhibitions and Technology Fairs: To through Software Technology
showcase the competencies of Indian Parks.
micro, small & medium enterprises
and to capture market opportunities, Export to the tune of Rs.68
NSIC participates in select crores was facilitated during
International and National Exhibitions 2006-07 and during 2007-08,
and Trade Fairs every year. NSIC upto 31st December, 2007 Export
facilitates the participation of the small to the tune of Rs.60 crores has
been facilitated.
enterprises by providing concessions
in rental etc. Participation in these
events exposes small enterprises to 4.3.2 Technology Support
international practices and enhances
their business prowess. 4.3.2.1 Technology is the key to enhancing
a company’s competitive advantage in
During 2006-07, NSIC today’s dynamic information age. Micro,
organised/participated in 86 small & medium enterprises need to develop
53
MSME
and implement a technology strategy NSIC has set up Incubation

in addition to financial, marketing and Centres for small enterprise
operational strategies and adopt the one establishment at its Technical
that helps integrate their operations with Centres, wherein low cost projects
their environment, customers and suppliers. depicting appropriate technologies
are displayed in working conditions.
4.3.2.2 NSIC offers micro, small & medium These incubation centres provide
enterprises the following support services comprehensive package of services
through its Technical Services Centres and including on the job training and other
Extension Centres: support services to establish own
ventures.
 Material testing facilities through At these incubators for
accredited laboratories; enterprise establishment, NSIC
 Product design including CAD; facilitates the trainees / first generation
entrepreneurs in:
 Common facility support in machining,
EDM, CNC, etc.;  Getting training in basic business and
entrepreneurial skills;
 Energy and environment services at
selected Centres and  Getting practical exposure on the
machines;
 Practical training for skill upgradation
 Selecting the projects;
5531 units were served under
common facility services during the  Preparation of the project reports /
year 2006-07 and during 2007-08, profiles;
upto 31st December, 2007, 3845 units  Identification of plant and machineries
have been provided such services. / equipments for the project;
l Incubators for Small Enterprise  Procuring the plant and machineries /

Establishment: Enterprise development equipments;
is one of the thrust areas for nurturing  Installation of the machineries; and
the development and growth of micro
and small enterprises in the country  Other support services to establish
that is being facilitated by providing their enterprises.
handholding support to micro and small NSIC has also established an
enterprises in every field of business. Incubator for Information Technology
Incubator is one of the tools to achieve at Okhla, New Delhi. Infrastructure
this as it provides the necessary facilities like ready to move in space,
facilities for prospective / potential hardware, software etc. have been
entrepreneurs and start-up companies provided in the IT Incubator. Once the
to learn product manufacturing incubatee attains the maturity stage,
processes coupled with technology it can avail the assistance under any
development under one roof. of the schemes of NSIC.
54
4.3.3 Credit Support Commerce, Central Bank of India,

Bank of Maharashtra, YES Bank, UTI
4.3.3.1 NSIC facilitates financing for micro, Bank (now Axis Bank) and HSBC)
small & medium enterprises in the following for sanction of term loan and working
manner: capital facilities to the micro, small
& medium enterprises as per their
l Meeting credit needs of Micro, Small requirements. Such arrangements
& Medium Enterprises through tie-up facilitate smooth credit flow to micro,
arrangements with Banks small & medium enterprises.
One of the major challenges NSIC, provided credit
faced by micro, small & medium facilitation to the small and medium
enterprises is inadequate access enterprises to the tune of Rs. 215.03
to finance due to lack of financial crore during 2006-07 and Rs. 284.63
information and non-formal business crore up to 31st December, 2007
practices. In this direction, NSIC during the year 2007-08, through tie
launched a new scheme for facilitating up arrangements with banks.
sanction of loans for small enterprises
l Financing for Procurement of Raw
from commercial banks. NSIC has
Material (short term):
entered into tie-up arrangements
with eight banks (i.e. United Bank of NSIC supports micro, small &
India, UCO Bank, Oriental Bank of medium enterprises by procuring and
NSIC pays the dividend to the Government. Union Minister of MSME, Shri Mahabir Prasad, receiving
dividend cheque from Shri H.P. Kumar, Chairman-cum-Managing Director, NSIC at Vigyan
Bhavan, New Delhi.
55
MSME
supplying raw materials like Steel, quicker and cheaper and thus helps
Aluminium and Copper etc. alongwith in economizing the cost of credit.
financial assistance as required by
2742 units applied for rating
them.
during 2006-07 and 2170 units were
NSIC procures raw material rated. In the year 2007-08, upto 31st
from bulk producers and distributes December, 2007, 3296 units have
the same in the requisite small applied for rating and 2500 units have
quantities to micro, small & medium already been rated.
enterprises ensuring timely delivery
4.3.4 Support Services
thus, playing a role of the catalyst
agency.
l Infomediary Services
l Financing for Marketing Activities
(short term) Information plays a vital
NSIC facilitates financing role in the success of any business.
for marketing activities such as Recognizing the importance of
Internal Marketing, Exports and Bill information and its relevance to micro,
Discounting to micro, small & medium small & medium enterprises, NSIC
enterprises. provides Infomediary Services to
small units. Besides hosting a website
l Performance and Credit Rating (www. nsic.co.in), NSIC hosts sector
Scheme for Small Enterprises specific portals for focused information
dissemination. Under this scheme,
NSIC had formulated the
micro, small & medium enterprises
“Performance & Credit Rating
can become members and avail a
Scheme” for small enterprises and as
number of value added services.
its implementing agency, is operating
Some important services are:
the scheme through accredited rating
agencies i.e. CARE, CRISIL, D&B,  Supplier database;
FITCH, ICRA, ONICRA and SMERA.
The fee to be paid by the micro, small Market intelligence;

& medium enterprises for the rating, Technology providers;

is subsidized by the Government to
the extent of 75% up to a maximum Information providers;

of Rs. 40,000/-. The scheme has
become quite popular now and getting Linkages with relevant institutions;

good response from the micro, small E to E services;

& medium enterprises.
E to B services and

The rating serves as a trusted
third party opinion on the unit’s Value additions like directories of

capabilities and credit worthiness. A machinery makers and component
good rating enhances the acceptability manufacturers, spare capacity
of the rated unit in the market and bulletin boards, discussion forums,
also makes their access to credit virtual exhibitions, etc.
56
2063 units were registered on one-way relations. Since its

under the scheme during 2006-07 inception, NSIC has contributed
and during the year 2007-08, up to to strengthen enterprise-to-
31st December, 2007, 1980 units enterprise cooperation, south-
have already been registered. south cooperation and to share
best practices and experiences
l Insurance of Export Credit for Micro, with other developing countries,
Small & Medium Enterprises under especially those in African, Asian
strategic alliance between NSIC and and Pacific regions. Important
ECGC initiatives are through setting
up of institutional frameworks
NSIC has entered, into an
for promotion of micro, small &
arrangement with Export Credit
medium enterprises; conducting
Guarantee Corporation of India
techno-economic assessment
Ltd. (ECGC) for facilitating small
and medium enterprises to insure surveys; setting up industrial
their export credits. Micro, small & estates, provision of common
medium enterprises would be helped facility services; support and
in insuring their export credits through extension services; supply of
any office of the Corporation, located machinery, equipment and
all over the country. This arrangement transfer of technology; ancillary
shall strengthen promotion of exports development and sub-contracting
from small enterprises. relationships and technical and
entrepreneurial training.
l International Cooperation
For the last five decades, NSIC’s initiatives in this area are:
NSIC has acquired various skill sets
in the development process of small  Exchange of business / technology
enterprises. The inherent skills are missions with various countries for
being networked to offer consultancy facilitating enterprise-to-enterprise
services for other developing
cooperation, joint ventures,
countries. The areas of consultancy
technology transfers and other forms
are as listed below:
of sustainable collaboration.
Capacity Building;

 Exploring new markets and areas of
Policy & Institutional Framework
 cooperation through:
and
- Identification of new export markets
Business Development Services
 by participating in sector-specific
exhibitions all over the world.
One of NSICs objectives
is to facilitate sustainable - Identification of countries in which
international partnerships. The India has potential to export its
emphasis is on sustainable technology, products and projects,
business relations rather than such as the sub-Saharan countries,
57
MSME
Central Asia the Indo-China region Maidan, New Delhi. Shri Mahabir Prasad,
etc. Hon’ble Minister of Micro, Small & Medium
Enterprises, Govt. of India inaugurated the
- Assistance to these countries exhibition and appreciated the efforts made
in formulating their policy and
by NSIC for small enterprises.
institutional framework.
4.3.5 New Infrastructure Projects to fa- Ø 190 units including 70 from North
cilitate MSMEs in Marketing their Eastern Region participated in the
Products event. The display covered a wide
range of products and services from
l Development of infrastructure at all focused sectors.
NTSC, Okhla
Ø A new initiative was taken by
NSIC is establishing providing special enclosure of
“Marketing Development-cum- “Working Techmart” where stand-
Business Park” (MDBP) & “Laghu alone technologies for entrepreneurs
Udyog Mart” at Okhla, New Delhi. were put on display besides live
MDBP will be a multi-storied, state- cluster demonstration of units from
of-the-art building having a total North Eastern Region.
covered area of approx. 37,000 sqm.
“Laghu Udyog Mart” would be a pre- Ø Foreign delegates from South Africa,
engineered steel building system Poland, Saudi Arabia, Senegal,
spread over an area of 9500 sqm. for Nigeria, Mozambique, Sri Lanka,
exhibition purposes Brazil, Afghanistan, Nigeria, Iran,
Botswana, Libya, Ethiopia, Angola
l Development of infrastructure at and Tunisia visited Techmart.
NTSC, Hyderabad
Ø NSIC was awarded the Gold Medal
Construction of “Exhibition- for Special Display in the theme
cum-Marketing Development category by India Trade Promotion
Business Park” at Hyderabad has Organisation, the organiser of
also been taken up. The Park will be IITF’2007.
a five-storied building with a covered
area of approx. 15,000 sqm. Ground 4.4.2 International Consultancy Services
floor would be utilized for exhibition
purposes and the upper floors will be The various skill sets acquired
given on lease and licence basis to by NSIC in the development process
micro and small industries / service of small enterprises are being
providers, IT & ITES / BPOs and networked to offer consultancy
financial institutions / banks. services to other developing countries.
Under this, a consultancy assignment
4.4 MAJOR EVENTS IN 2007- 08
was undertaken in KwaZulu-Natal,
South Africa. This assignment was
4.4.1 The Corporation organised the 15th to provide and render services for
series of Techmart India, 2007 coinciding the development of a framework for
with India International Trade Fair at Pragati the support to small, medium and
58
micro enterprises in KwaZulu-Natal 4.5.2 Direct Operator Vs. Facilitator:

Province. As a fallout of the successful Considering past performance, financial
completion of the assignment, which capability, inherent disadvantages in respect
was widely appreciated, further of operations, the role of a ‘facilitator’ was
business propositions have opened considered more appropriate for NSIC.
for consultancy services as well as This saw the Corporation withdrawing from
supply of small industry projects. ‘Direct Financing’ and instead making tie
4.4.3 International Exhibitions ups with banks for facilitating the credit
required by the SSI (now MS) units. NSIC
To show case the competencies has entered into tie-up arrangements with
of Indian micro, small & medium eight banks (i.e. United Bank of India, UCO
enterprises in the international market Bank, Oriental Bank of Commerce, Central
and expose the small enterprises to Bank of India, Bank of Maharashtra, YES
international practices and enhance Bank, UTI Bank (now Axis Bank) and HSBC
their business competitiveness, NSIC for sanction of term loans and working
takes small enterprises for participation capital facilities to the MSMEs as per their
in international exhibitions and trade requirements. Such arrangements facilitate
fairs. The units participating in these fairs smooth credit flow to this sector. This also
are provided various concessions. saved NSIC from investing/blocking its funds
and incurring costs thereon and avoiding
4.5 TURNAROUND OF THE COR-
huge losses on account of provisioning for
PORATION – A Combination of
bad and doubtful debts.
Vision and Pragmatism
4.5.2 Raw Material Assistance: Tie ups

4.5.1 The Corporation was in continuous
were made with various bulk manufacturers
losses till the year 2004-05. With a view to
of raw materials (like SAIL, RINL, NALCO,
make the Corporation self sustaining various
HCL, HZL etc.) so as to extend to the SSI
measures were initiated during the past three
years. The need of the hour was to consolidate units (now MSEs) the benefits of economies
upon the range of services provided which of scale as well as steady availability of raw
would not only enhance its competitiveness but materials. To add more raw materials in our
also provide an added edge to its operations. It fold, dialogue has been initiated with the
required major decisions including those about Indian Oil Corporation, Gas Authority of India
the hiving off of some of its prime activities of Ltd., Coal India Ltd. and Hindustan Organic
the past. To regain the vitality and dynamism, Chemicals Ltd. for distribution of bitumen
to establish its creditability and restore the in southern states. A godown has been
confidence of its stakeholders and the small made operational at Chennai for handling
industries, the Corporation undertook the the sale of bitumen on behalf of Chennai
following as focus areas: Petrochemical Corporation Ltd.
59
MSME
4.5.3 Insurance of Export Credit for incubatees attain the maturity stage, it can
Small Enterprises under Strategic avail the assistance under any schemes of
Alliance between NSIC and ECGC: NSIC NSIC.
entered into an arrangement with Export
Credit Guarantee Corporation of India Ltd. 4.5.6 International Consultancy
(ECGC) for facilitating small and medium Services :The various skill sets acquired by
enterprises to insure their export credits. NSIC in the development process of small
Small & Medium Enterprises would be helped enterprises are being networked to offer
in insuring their export credits through any consultancy services to other developing
office of the Corporation, located all over the countries.
country. This arrangement shall strengthen
promotion of exports from small and medium
4.5.7 Human Resource Development
enterprises.
– Training Motivation, Redeployment:
Retraining and redeployment of under utilized
4.5.4 Enlarging Client Base: The manpower in Groups B, C & D was also
Corporation increased its reach by opening carried out wherein the identified employees
sub offices, extension offices in various were imparted training at in-house Training-
new areas. In addition, NSIC signed cum-Motivational Programmes. After
Memorandum of Understandings (MoUs) imparting necessary training, the identified
with 49 Industry Associations, whereby manpower has been redeployed in recently
services at door steps could be provided to opened new offices.
their members. The membership schemes
were introduced with certain ‘add-on’
For employees to have better
features for attracting small enterprises to
understanding of the Corporation’s value
join the NSIC family.
system and philosophy, NSIC’s Code of
Business Conduct and Ethics was prepared
4.5.5 Incubators for Small Enterprise
and circulated to all employee, to read and
Establishment: The Corporation has set
make compliance thereof, a priority.
up Incubation Centres for small enterprise
establishment at its Technical Centres,
4.5.8 Rationalization of Staff – To the
wherein low cost projects depicting
Optimal Level of 860: The level of staff
appropriate technologies are displayed in
working conditions. The incubation centre strength which was 1214 as on 31.03.2002
provides comprehensive package of services has been reduced to 860 as on 31.03.2007.
including on the job training and other support Effective use of Voluntary Retirement
services to establish own venture. Scheme also enabled the shedding of the
surplus manpower.
It has also established an Incubator
for Information Technology at Okhla, New 4.5.9 Recovery of Stuck Capital:To
Delhi. Infrastructure facilities like ready to address the cases of chronic default, the
move in space, hardware, software etc. has Corporation designed and implemented One
been provided in the IT Incubator. Once the Time Settlement Scheme on All India basis.
60
A focused and structured approach led to before amortization of VRS expenditure

reduction in stuck capital to Rs. 192.69 crore showing an increase of 51.16% over the
by 31.03.2007. previous year’s net profit before amortization
of VRS expenditure. The Corporation earned
During the year, the Corporation a net profit of Rs.2.84 crores as against
surged ahead in business performance, Rs.1.25 crores in the previous year.
achieving record business growth with the
business turnover standing at an all time high
4.6 DIVIDEND
of Rs. 2197.89 crore, showing an increase
of 43% over the last year.
4.6.1 In view of the improved performance,
As a result of above measures, the NSIC paid dividend @20% of the Net Profit
Corporation made a turnaround in the year rounded off to the nearest thousand of Rs
2006-07 and earned a profit of Rs. 4.92 crores 56,90,000/- after a gap of many years.
Inauguration of Techmart India’ 2007. Hon’ble NSIC signed MoU with HSBC Bank for providing
Union Minister (MSME), Shri Mahabir Prasad credit facilities to MSEs. Signing the MoU are Shri
inaugurates the Techmart India’ 2007 at Pragati H.P. Kumar, Chairman-cum-Manager Director,
Maidan, New Delhi in the presence of Shri H.P NSIC and Shri Subir Mehra, Country Head,
Kumar, Chairman-cum- Managing Director, NSIC. Commercial Banking, HSBC Bank.
61
Chapter V
KHADI AND VILLAGE INDUSTRIES
COMMISSION
5.1 INTRODUCTION l The wider objective of creating self-

reliance amongst people and building
5.1.1 Khadi & Village Industries Commission up a strong rural community spirit.
(KVIC) established under the Khadi and 5.3 FUNCTIONS
Village Industries Commission Act, 1956 (61
of 1956), is a statutory organisation engaged
5.3.1 The functions of KVIC as prescribed
in promoting and developing khadi and
under the KVIC Act, 1956 (61 of 1956) and
village industries for providing employment
Rules made thereunder, are as follows:
opportunities in the rural areas, thereby
strengthening the rural economy of the
country. It took over the activities from the l to plan and organise training of
erstwhile All India Khadi and Village Industries persons employed or desirous of
Board w.e.f. 01 April 1957. KVIC has been seeking employment in khadi and
identified as one of the major organisations in village industries;
the decentralised sector for generating non- l to build up reserves of raw materials
farm employment opportunities in rural areas and implements and supply them or
at low per capita investment. It undertakes arrange supply of raw materials and
activities like skill improvement, transfer implements, to persons engaged or
of technology, research & development, likely to be engaged in production
marketing, etc., in the process of generating of handspun yarn or khadi or village
employment/self-employment opportunities industries at such rates as the
in rural areas. Commission may decide;
5.2 MAIN OBJECTIVES l to encourage and assist in the

creation of common service facilities
l The social objective of providing for the processing of raw materials
employment in rural areas; or semi-finished goods and for
otherwise facilitating production and
l The economic objective of producing marketing of khadi or products of
saleable articles; and village industries;
63
MSME
l to promote the sale and marketing specified agencies, experiments or

of khadi or products of village pilot projects which in the opinion
industries or handicrafts and for of the Commission are necessary
this purpose to forge links with for the development of khadi and
established marketing agencies village industries;
wherever necessary and feasible; l to establish and maintain separate
l to encourage and promote research organisations for the purpose of
in the technology used in khadi carrying out any or all of the above
and village industries, including the matters;
use of non-conventional energy
l to promote and encourage
and electric power with a view to
increasing productivity, eliminating cooperative efforts among the
drudgery and otherwise enhancing manufacturers of khadi or persons
their competitive capacity and engaged in village industries;
arranging dissemination of
l to ensure genuineness and to
salient results obtained from such
research; set up standards of quality and
ensure that products of khadi and
l to undertake directly or through other village industries do conform to the
agencies, studies of the problems of said standards, including issue of
khadi or village industries; certificates or letters of recognition
to the concerned persons; and
l to provide financial assistance
directly or through specified agencies l to carry out any other activity
to institutions or persons engaged incidental to the above.
in the development and operation of
khadi or village industries and guide 5.4 AMENDMENT TO KVIC ACT,
them through supply of designs, 1956
prototypes and other technical
information for the purpose of
producing goods and services for 5.4.1 One of the declarations in the
which there is effective demand in National Common Minimum Programme of
the opinion of the Commission; the Government was to revamp Khadi and
Village Industries Commission (KVIC) through
l to undertake directly or through
organisational restructuring of KVIC and
initiation of measures to introduce modern
management practices, in order to make khadi
and village industry products competitive in
the globalised economy while continuing to
generate non-farm employment opportunities
in rural areas. With these objectives, the
Commission was dissolved and a ten-
member Expert Committee was constituted
in December 2004 to recommend suitable
measures for its revamping, after reviewing its
64
education, science & technology, marketing

and banking.
5.5.2 National Khadi and Village Industries

Board has been constituted in March 2007 as
stipulated in Section 10 of the amended KVIC
Act read with Rule 15 of KVIC Rules. Two
meetings of the Board have been held so far
in July 2007 and January 2008. Further, as per
Section 12A(1) of the amended KVIC Act, six
structure, functioning and performance under Zonal Committees have also been constituted
the existing Act. on 01 March 2007, under the chairmanship of
the non-official member of the Commission
5.4.2 Based on the recommendations of the representing the concerned zone.
Expert Committee, important amendments
have been made in the Khadi and Village 5.6 ORGANISATIONAL SET UP
Industries Commission Act, 1956, which
inter-alia include the enhancement of 5.6.1 KVIC is functioning under the
specified population limit for small towns, administrative control of the Ministry of Micro,
fixed capital investment per artisan, Small and Medium Enterprises (erstwhile
increasing the number of non-official expert Ministry of Agro and Rural Industries),
members, constitution of zonal committees, Government of India. The Commission is
conferring voting rights upon the ex-officio having its Head Office at Mumbai and six Zonal
members, specific provisions for clear Offices located in Delhi, Bhopal, Bangalore,
demarcation of functions and powers Kolkata, Mumbai and Guwahati and 29 State
among the Commission, Chairperson, Chief Offices to facilitate speedy implementation of
Executive Officer and the Financial Adviser KVI programmes. At the Head Office, different
of the Commission, etc. Directorates have been established in order
to coordinate the functions like training,
5.5 CONSTITUTION OF COMMIS- marketing, funding, economic research and
SION, NATIONAL KHADI AND Rural Employment Generation Programme
VILLAGE INDUSTRIES BOARD (REGP), etc.
AND ZONAL COMMITTEES
5.6.2 The Commission also undertakes
5.5.1 Based on the amended Khadi and training activities through its 38
Village Industries Commission (KVIC) Act, departmental and non-departmental training
1956, the Commission has been reconstituted centres. Marketing is taken up through
by the Government vide Notification dated 19 12 departmentally run Khadi Gramodyog
July 2006. In the reconstituted Commission, Bhawans located in urban areas and 7050
there are 13 members including Chairman institutional/retail sales outlets spread over
and nominated experts from the fields of different parts of the country. KVIC also
65
MSME
makes available quality raw material to khadi 5.8.2 The industries connected with meat
institutions through its six Central Sliver (slaughter) i.e. processing, canning and/ or
Plants (CSP). serving items made therefrom; production/
manufacturing or sale of intoxicant items
5.7 IMPLEMENTING AGENCIES like beedi/pan/cigar/cigarette, etc.; any
hotel or dhaba or sales outlet serving
5.7.1 Khadi and Village Industries (KVI) liquor; preparation/producing tobacco as
programmes are implemented through 33 raw materials; tapping of toddy for sale;
States/Union Territories (UTs) Khadi and Village manufacturing of polythene carry bags of less
Industries Boards (KVIBs), 5,000 registered than 20 microns thickness and manufacturing
institutions, 30,000 cooperative societies of carry bags or containers made of recycled
and banks/financial institutions. The Khadi plastics for storing, carrying, dispensing or
programme is implemented through institutions packaging of food-stuff, etc., are not assisted
registered either with KVIC or State/UT KVIBs. under KVI programme as these are either
In the case of village industries, the Commission not eco-friendly or against the ideology and
implements the Rural Employment Generation ethos of Mahatma Gandhi.
Programme (REGP).
5.9 BUDGETARY SUPPORT TO
5.8 GROUPING OF INDUSTRIES KVIC
5.8.1 While the khadi programme comprises 5.9.1 The Union Government through
hand spun and hand woven cotton, woollen, the Ministry of Micro, Small and Medium
muslin and silk varieties, the village industry Enterprises, provides funds to KVIC for
programmes have been classified into seven undertaking its various activities under
broad groups. These are: Plan and Non-Plan heads. These funds are
provided primarily by way of grants and loans,
Ø Mineral Based Industry; which the Commission in turn re-allocates
them to its implementing agencies, namely
Ø Forest Based Industry;
the State KVIBs, institutions registered under
Ø Agro Based and Food Processing the Societies Registration Act, 1860 and
Industry; cooperative societies registered under the
Ø Polymer and Chemical Based Cooperative Acts of the State Governments,
Industry; implementing banks, etc. The Commission’s
administrative expenditure including that on
Ø Rural Engineering and Bio pension is met out of Non-plan Government
Technology Industry; budgetary support. The details of the funds
Ø Hand Made Paper & Fibre Industry; provided from budgetary sources (both Plan
and and Non-plan) during the Xth Plan, are given
in Table 5.1.
Ø Service Industry.
66
TABLE - 5.1: Details of Budgetary Allocation and Funds Released During 10th Five Year Plan
Rs. In Crore
YEAR BUDGET FUNDS RELEASED
ALLOCATION (RE)
Plan Non- Plan Plan Non- Plan
2002-03 394.67 84.87 340.55 83.36
2003-04 444.75 83.75 423.60 63.70
2004-05 462.00 84.91 460.99 83.90
2005-06 560.82 84.82 558.56 84.76
2006-07 592.93 84.82 589.82 83.91
Total 2455.17 423.17 2373.52 399.63
2007-08* 650.40 84.82 479.59 62.10
*up to December 2007
5.10 PHYSICAL PERFORMANCE 5.10.2 The total cumulative employment in
OF THE KVI SECTOR the KVI sector is estimated to have increased
to 88.92 lakh (8.84 lakh in khadi and 80.08
5.10.1 The KVI sector recorded an improved lakh in VI) during 2006-07 as against the
performance during 2006-07 in comparison previous year’s level of 82.77 lakh (8.68 lakh
to the previous year. The total KVI production in khadi and 74.09 lakh in VI), registering a
stood at Rs. 14018.71 crore (khadi - growth of 7.43 per cent during the period.
Rs. 491.52 crore and VI – Rs. 13527.19
crore) in 2006-07 as against Rs. 12383.84 5.10.3 The total KVI production during 2007-
crore (khadi - Rs. 468.30 crore and VI – 08 (up to December 2007) is estimated at Rs.
Rs. 11915.54 crore) in 2005-06, registering 10547.25 crore (Rs. 362.25 crore in khadi
an increase of 13.20 per cent. Similarly, and Rs.10185 in VI) as compared to Rs.
sales of KVI products also increased to Rs. 10,325 crore (Rs. 339.50 crore in khadi and
17562.40 crore (khadi – Rs.663.19 crore Rs.9985.50 in VI) in 2006-07 (up to December
and VI Rs. 16899.21 crore) as compared to 2006), registering an overall growth of 2.15 per
Rs. 15276.02 crore (khadi – Rs.628.69 crore cent during the corresponding period. Sales
and VI Rs. 14647.33 crore), thus registering also increased to Rs. 12967.90 crore (Rs.
a growth of 14.97 per cent during 2006-07. 447.00 crore in khadi and Rs.12520.90 crore
in VI) in 2007-08 (up to December 2007) as
compared to Rs. 12347.70 crore (Rs. 438.60
crore in khadi and Rs.11909.10 crore in VI)
during the corresponding period of 2006-07,
reflecting a growth of 5.02 per cent.
5.10.4 The total cumulative employment in

KVI sector is estimated to have increased
to 94.85 lakh (9.00 lakh in khadi and
85.85 lakh in VI) during 2007-08 (up to
67
MSME
December 2007) as compared to 85.22 lakh l To achieve the goal of rural

(8.77 lakh in khadi and 76.45 lakh in VI) persons industrialization.
during the corresponding period of 2006-07,
l To facilitate participation of banks in
thus registering a growth of 11.30 per cent. the village industries sector so as to
ensure higher credit flow to these
5.11 MAJOR SCHEMES BEING industries.
IMPLEMENTED BY KVIC 5.11.1.1 Salient Features of REGP are as
under:
5.11.1 Rural Employment Generation
l The programme is applicable to all
Programme (REGP): The Rural Employment
village industry projects set up in
Generation Programme (REGP), is being
rural areas.
implemented by KVIC to generate additional
employment opportunities in rural areas l The eligible beneficiaries under the
through setting up micro enterprises, thereby programme are (i) individuals (rural
helping in reduction of migration of people artisans/entrepreneurs), and ii)
from rural to urban areas. Under REGP, institutions, cooperative societies,
capital subsidy in the form of margin money trusts & Self Help Groups (SHGs) for
is provided for setting up labour-intensive projects costing upto Rs. 25 lakh.
projects in rural areas as well as in small l Partnership firms, private/public
towns with population up to 20000. The main limited companies, joint ventures,
objectives of REGP are: joint borrowers, co-obligators of
HUF are not eligible.
l To generate employment in rural
l The permissible margin money
areas.
assistance under the Programme is
l To develop entrepreneurial skills and as detailed in the Table 5.2
aptitude among rural unemployed
youth.
TABLE - 5.2: Margin Money Assistance Under REGP
Sl. No. Category of Project Cost Margin Money Assistance
Beneficiary
1. General Up to Rs. 10 lakh 25 per cent of project cost
Above Rs. 10 lakh and up to Rs. 2.5 lakh plus 10 per cent of project
Rs. 25 lakh cost over Rs. 10 lakh.
2. S C / S T / O B C / Wo m e n / Up to Rs. 10 lakh 30 per cent of project cost
PH/ Ex-servicemen/NE Above Rs. 10 lakh and up to Rs. 3 lakh plus 10 per cent of project
Region /Hill Areas Rs. 25 lakh cost over Rs. 10 lakh.
Note: SC/ST – Scheduled Caste/Scheduled Tribe; PH – Physically Handicapped;
NE – North Eastern Region
68
l The beneficiary is required to invest l All activities which do not appear

own contribution of 10 per cent of in the negative list circulated by
the project cost. In case of SC/ KVIC, are eligible for financing
ST and beneficiaries from other under the scheme.
weaker sections, the beneficiary’s
l KVIC is implementing REGP
contribution is 5 per cent of the
through all Public Sector Banks,
project cost.
Regional Rural Banks, Co-
l Banks will sanction loan of 90 per operative Banks approved by
cent of the project cost in the case of State/U.T Governments, KVIBs,
general category beneficiaries and Private Commercial Banks
95 per cent of the project cost in case approved by the State KVIBs,
of the weaker section beneficiaries. and other Financing Institutions
After the sanction of the credit facility, of State & Central Government as
eligible amount of margin money will approved by KVIC.
be kept in term deposit of two years l KVIC provides financial assistance
in the account of the beneficiary at to its State Offices as well as the
the lending bank branch, which will State Khadi and Village Industries
be credited to the beneficiary’s loan Boards for establishing backward
account after a period of two years and forward linkages for the
from the date of first disbursement entrepreneurs/institutions which
of loan. consist of awareness camps,
workshops, exhibitions, meetings
l “Rural Area” means the area with bankers, entrepreneurship
comprised in any village, and includes development programme (EDP)
the area comprised in any town, the training, etc.
population of which does not exceed
twenty thousand or such other figure 5.11.1.2 Since the commencement of
as the Central Government may REGP, 2.62 lakh units have been assisted
specify from time to time. generating an estimated 39.68 lakh additional
job opportunities up to 31.03.2007. State-wise
l The term “Village Industries” has performance in respect of projects sanctioned,
been redefined in the amended margin money utilised and employment
KVIC Act, as “any industry located
in a rural area which produces any
good or renders any service with
or without the use of power and in
which the fixed capital investment
per head of artisan or worker does
not exceed Rs. one lakh (Rs. one
lakh and fifty thousand in case of
village industry located in a hilly
area) or such other sum as may, by
notification in the Official Gazette,
be specified from time to time, by
the Central Government”.
69
MSME
generated during Xth Plan and in the current 5.11.2.2 Under the ISEC Scheme, credit
year (up to December 2007) are given in at the concessional rate of interest of 4
Annexures – 5.1, 5.2 and 5.3 respectively. per cent per annum for capital expenditure
Keeping in view, REGP’s potential, the as well as working capital is given as per
Government is considering to continue this the requirements of the institutions. The
Scheme during 11th Plan beyond April 2008 difference between the actual lending
also, after rationalising its design, introducing rate and 4 per cent is paid by the Central
more focused targeting of beneficiaries Government through KVIC to the lending
and improved implementation practices by bank and funds for this purpose are provided
merging Prime Minister’s Rozgar Yojana to KVIC under the khadi grant head.
(PMRY) and enhancing the targets that would
be allocated to KVIC. During 2006-07, against 5.11.2.3 The institutions registered with
the target of generating 5.90 lakh additional the KVIC/State Khadi and Village Industries
job opportunities under REGP, an estimated Boards (KVIBs) can avail of financing under
5.95 lakh additional job opportunities had the ISEC scheme. Initially, the entire KVI
been generated, thus recording a 4.75 per sector was covered, but with the introduction
cent growth in employment generation as of REGP for village industries (VI), the
compared to that during 2005-06 (5.68 lakh ISEC scheme now supports only the khadi
against the target of generating 5.50 lakh job and the polyvastra sector. However, all VI
opportunities). units existing as on 31 March 1995, have
been allowed to avail of this facility for the
5.11.1.3 During 2007-08 (up to amount of bank finance availed as on that
December 2007), 13432 projects have date or actuals, whichever is less and funds
already been set up, thus generating 3.37 for this purpose are provided under the
lakh additional employment opportunities as VI grant head. The extent of credit flow to
against the target of creation of 7.04 lakh job the institutions under the Scheme during X
opportunities. A large number of projects Plan and in the current year 2007-08 (up to
are at ‘sanction’ stage and it is expected that December 2007) are given in Table 5.3
the target set under the programme would
be achieved going by the trends of previous
years as well as the assessment made by TABLE - 5.3: Credit Flow and Subsidy under ISEC
KVIC in this regard. (Rs. crore)
Year Credit flow Subsidy
to khadi and provided by
5.11.2 Interest Subsidy Eligibility polyvastra KVIC
Certification (ISEC) Scheme institutions
2002-03 329.73 21.99
5.11.2.1 The Interest Subsidy Eligibility 2003-04 362.70 18.77
Certificate (ISEC) Scheme is the major 2004-05 278.74 26.09
source of funding for the khadi programme. 2005-06 233.23 22.38
It was introduced in May 1977 to mobilise 2006-07 233.62 23.66
funds from banking institutions to fill the Total 1438.02 112.89
gap in the actual fund requirement and its 2007-08* 232.62 13.94
availability from budgetary sources. *up to December 2007
70
5.11.3 Rebate Scheme institutions. The final decision on the

continuation or otherwise of the scheme shall
5.11.3.1 The rebate on sales of khadi and be taken based on the outcome of these pilot
khadi products is made available by the projects. A proposal received from KVIC for
Government so as to make the price of introducing Market Development Assistance
khadi and khadi products competitive with based on ‘Production of Khadi’ as a possible
other textiles. Normal rebate (10 per cent) all alternative to ‘Rebate on Sale’ is also under
through the year and an additional special examination of the Government.
rebate (10 per cent) for 108 days in a year,
is given to the customers from funds made
5.11.4 Product Development, Design
available through budgetary support of the
Intervention and Packaging
Ministry. (PRODIP) Scheme
5.11.3.2 The rebate is allowed only on the 5.11.4.1 The Product Development, Design
sales made by the institutions/centres run by Intervention and Packaging (PRODIP)
the KVIC/State KVIBs and also at the sales scheme was launched in November 2002 as
centres run by the registered institutions a small intervention with a view to selectively
which are engaged in the production of improving the quality of khadi products
khadi and polyvastra. The funds released and also to diversify into new products.
to khadi institutions towards rebate during X The scheme envisages improvement in
Plan period and current financial year (upto product quality, introduction of new designs
December 2007) are given in Table 5.4. and better packaging of products. It also
TABLE - 5.4: Amount of Rebate Allowed During X Plan seeks to improve the marketability of khadi
Year Amount (Rs. crore) by enlisting the support of professional
2002-03 111.84 designers approved by the National Institute
2003-04 81.99 of Design (NID). Under this scheme, financial
2004-05 81.18 assistance is provided to the institutions or
2005-06 80.08 entrepreneurs affiliated to the KVIC or State
2006-07 101.47 KVIBs upto Rs. 2 lakh per project per year or
Total 456.56
75 per cent of the project cost whichever is
2007-08* 62.38
less. In the case of individual entrepreneurs,
assistance is upto Rs. 1 lakh or 75 per cent of
(upto December 2007)
the project cost whichever is less. The internal
5.11.3.3 On the basis of the studies conducted by KVIC have indicated
recommendations of the Expert Committee, that production and sales have increased
an Inter-Ministerial Group (IMG) was approximately by 13 per cent and 21 per cent,
constituted to consider the continuity of respectively, in the case of projects taken up
the rebate scheme or suggest a suitable under PRODIP. KVIC is getting the impact
alternative to this scheme. The IMG of this intervention evaluated separately. The
submitted its report in March 2006. Based progress made under this scheme during X
on this Report, four pilot projects have Plan (2003-04 to2006-07) and in 2007-08 is
been implemented in a few selected khadi given in Table 5.5.
71
MSME
TABLA - 5.5: Projects Assisted Under PRODIP Scheme machinery/equipment to be utilised as

Year Total No. of KVI common utility facilities by nearby units /
Projects Assisted artisans to enhance production capacity or
2003-04 121 value addition of the products, attractive
2004-05 69 and appropriate packaging facilities and
2005-06 116 machinery to the local units/artisans for
2006-07 162 better marketing of their products, training
Total 468 facilities to upgrade artisans’ skills in order
2007-08 124 to increase their earnings and new design
(up to December 2007) or new product and diversified product
in consultation with experts /agencies
5.11.5 Rural Industries Service Centres for value addition of rural manufacturing
(RISC) Scheme units. The scheme is implemented through
KVIC/KVIBs, National level/ State level
5.11.5.1 KVIC has also taken up another Khadi and VI Federations, Khadi and VI
small intervention called “Rural Industries Institutions affiliated with KVIC and KVIBs
Service Centers (RISC)” Scheme from and NGOs which have already worked in the
2004-05 onwards to provide infrastructural implementation of programmes relating to
support and services to selected units to rural industries. Under this scheme, financial
upgrade their production capacity, skills and assistance for establishing projects upto
market promotion. RISC, inter alia, provides Rs. 5 lakh is provided to KVI units. Each
testing facilities by establishing laboratory RISC programme up to Rs. 5 lakh should
to ensure quality of products, improved provide benefit to 25 individuals.
Khadi Paridhan Utsav organised by KVIC at IITF 2007
72
5.11.5.2 Under this scheme, 72 and 24

projects were sanctioned during 2006-
07 and 2007-08 (up to December 2007),
respectively.
5.11.6 Khadi Karigar Janashree Bima

Yojana
5.11.6.1 In order to provide insurance

cover to khadi artisans, a scheme of group
insurance in the name of Khadi Karigar
Janashree Bima Yojana (JBY) was launched
Display of pottery products produced in MGIRI,
on 15 August 2003. This scheme was
Wardha seen by Union Minister (MSME)
formulated by KVIC in association with the Shri Mahabir Prasad and Kum. Kumud Joshi,
Life Insurance Corporation of India (LIC) with Chairperson, KVIC
annual premium of Rs. 200/- per beneficiary.
KVIC has been able to persuade the LIC to its network of Khadi Gramodyog Bhavans
reduce the premium to Rs. 100/- with effect (KGB) and retail sales outlets, efforts
from the policy year 2005-06. The premium have been made to organise a number of
is shared as - Rs. 50/- by the Central exhibitions, in different parts of the country
Government Social Security Fund, Rs. 25/- as a cost effective publicity and market
by Khadi Institution and Rs. 12.50/- each by promotion instrument. During 2006-07,
khadi artisan and KVIC. The compensation special efforts were made in this regard and
payable under this scheme, has also been 106 exhibitions were organised in various
increased by 50 per cent, i.e. Rs. 30,000/- in parts of the country. During 2007-08, KVIC
case of natural death, Rs. 75,000/- in case has already organised 76 exhibitions (up to
of accidental death, Rs. 75,000/- in case December 2007) at different locations.
of full permanent disability due to accident,
and Rs.37,500/- in case of part permanent
5.11.7.2 Further, in order to promote
disability due to accident.
khadi and village industries products in the
international markets, KVIC participated in
5.11.6.2 As an ‘add-on’ benefit without
5 international exhibitions in 2006-07 along
any extra premium, upto two school going
with khadi and village industries institutions/
children of insured artisans studying in
entrepreneurs at AF-L Artigiano in Feira 11th
class nine to twelve are also eligible to get
International Craft Selling Exhibition, Milan,
a scholarship of Rs. 100/- each per month,
Italy (ii) Paper World, Frankfurt, Germany (iii)
under the scheme.
MUBA-2007, Basel, Switzerland, (iv) Lyon
International Fair, Eurexpo, Lyon, France and
5.11.7 Exhibitions
(v) Cairo International Trade Fair, Cairo, Egypt.
In 2007-08 (upto December 2007), KVIC has
5.11.7.1 Apart from promoting sales of participated in 03 such international exhibitions
khadi and village industries products through held at Johannesburg, Brazil and China.
73
MSME
5.11.7.3 Besides, KVIC has been granted 5.11.9 Research and Development
‘deemed’ Export Promotion Council (EPC)
status by the Departments of Commerce 5.11.9.1 KVIC undertakes research and
for availing assistance on the pattern of development activities through in-house
an umbrella EPC, like Federation of Indian research and also by sponsoring projects
Export Organisations (FIEO). Proposals to other R&D organisations. The main
for participation in international exhibitions/ objectives of the R&D programme are
fairs, organization of buyers-sellers meets, achieving increase in productivity and wages
etc. are approved by the Department of of the workers, improvement in quality,
Commerce as per admissibility under Market efficient use of local skills and local raw
Development Assistance (MDA)/Market materials, and reduction of human drudgery.
Access Initiative (MAI) guidelines. Under the In addition to Jamnalal Bajaj Central Research
KVIC-EPC, KVIC has proposed to participate Institute (JBCRI) now renamed as Mahatma
in 15 international exhibitions/events, buyer- Gandhi Institute for Rural Industrialization
seller meets – 2 abroad and 2 in India, to (MGIRI), Wardha, KVIC undertakes R&D
send 2 trade delegations to Sri Lanka and activities through Central Bee Research
Pakistan, and to organise seminars and and Training Institute (CBRTI), Pune; Dr.
workshops for proper interaction between Ambedkar Institute of Rural Technology and
KVIC and producing units. Management (AIRTM), Nashik; Kumarappa
National Handmade Paper Institute (KNHPI),
5.11.8 Quality Control and Brand Pro- Sanganer, Jaipur; Central Village Pottery
motion Institute (CVPI), Khanapur, Karnataka; and
Khadi Gramodyog Prayog Samiti (KGPS),
5.11.8.1 In order to improve the quality Ahmedabad.
of handcrafted khadi, KVIC has made
arrangements with the National Institute 5.12 OTHER INITIATIVES TO DE-
of Design (NID), Ahmedabad; ‘Dastakar’, VELOP KHADI AND VILLAGE
Andhra Pradesh; IIT, Delhi; and Textiles INDUSTRIES SECTORS
Committee, Mumbai. The Memorandum of
Understanding (MoU) signed between KVIC 5.12.1 Revamping JBCRI, Wardha
and the Textiles Committee, a statutory
body under the Ministry of Textiles has been 5.12.1.1 The erstwhile Jamnalal Bajaj
continued during 2006-07. Under the MoU, Central Research Institute (JBCRI), Wardha
facilities of 13 laboratories of the Committee has been revamped with the help of IIT,
situated throughout the country are being Delhi, as a National level institution and
used for testing of khadi and polyvastra. renamed as Mahatma Gandhi Institute for
Under the arrangement, the quality of Rural Industrialization (MGIRI). Its vision
khadi is expected to receive a fillip, thereby is to upgrade and accelerate the process of
improving its marketability. A number of rural industrialization in the Country so that
khadi institutions have availed of benefits of we can move towards the Gandhian vision
this arrangement. of sustainable village economy, and the
74
products of the KVI sector can have place of sales, marketing, etc. As on 31 December
pride amongst the large industrial sector and 2007, the details of 1919 categorised khadi
become popular in the country and abroad. institutions are given in Table 5.6
The main functions of MGIRI are to improve
the R&D activities under rural industrial sector 5.12.4 Rural Industries Consultancy
by encouraging research, extension of R&D, Service (RICS)
quality control, training and dissemination
of technology related information. MGIRI is 5.12.4.1 KVIC has launched a Rural
operating in project mode till 31 March 2008. Industries Consultancy Service (RICS)
Government has approved the creation and for providing guidance, technical and
filling up one post of Director and 35 other managerial support to the prospective
supporting posts, which are in the process entrepreneurs which includes preparation of
of being filled up.
projects, liaison with banks/other agencies/
organisations/ local authorities in respect
5.12.2 MOU with Technical Interface of the project, assistance and support to
Institutes implement the project, procurement of raw
materials, machinery, installation, quality
5.12.2.1 KVIC has built up a large network control for acceptability and reliability,
of rural cottage industrial units producing a packaging and design for better marketing,
wide range of goods and articles catering
marketing support for sustainability of the
to the rural and partly urban markets.
unit, etc. As on 31 March 2007, 49 such
KVIC has also undertaken certain activities
RICS have been opened in various parts of
under various outsourcing arrangements
the country.
at Engineering and Technological institutes
of repute to meet the perceived demands
of making the products more marketable, 5.12.5 Government Supply
either through design interventions or
through quality assurance system. 5.12.5.1 KVIC has been executing supply
of its products under the ‘Rate Contract’
5.12.3 Categorisation of Institutions of Director General of Supplies and
Disposal (DGS&D) to various Government
5.12.3.1 In order to streamline the payment Departments/Agencies. Based on DGS&D
of rebate, release of interest subsidy, supply rate contract, items like dasuti khadi,
of raw materials, etc., khadi institutions are dungari cloth, dusters, long cloth, bunting
categorized as A+, A, B, C and D on the cloth and sheeting cloth, etc., are being
supplied to Government Agencies and bed
basis of their performance in production,
rolls, curtains, pillow covers, “kulhars”, etc.,
TABLE - 5.6: Details of Categorised Khadi Institutions
S. Type A+ A B C D Total
No.
1. Affiliated to KVIC 107 289 323 308 217 1244
2. Affiliated to State Boards 28 162 186 246 53 675
Total 135 451 509 554 270 1919
75
MSME
to Indian Railways. In 2006-07, supplies has been started in consultation with South
worth Rs. 29.09 crore were made through Indian Textile Research Association (SITRA)
DGS&D to the Government offices. During at Karnataka Khadi Gramodyog Samyukta
2007-08 (up to December 2007), products Sangh, an NGO of KVIC at Bengeri, Hubli
amounting to Rs. 15.77 crore have already (Karnataka) at an estimated cost of Rs.
been supplied under this arrangement. 51.10 lakh. The first phase of the project was
commissioned during 2004-05. The National
5.12.6 Registration of new Khadi In- Flag Production unit has been awarded BIS
stitutions belonging to SC/ST certification on 17 February 2006. The unit
Beneficiaries has also installed the dyeing, processing
and finishing equipment envisaged in the
5.12.6.1 There was an internal ban second phase of programme of National
(imposed by the Commission) on registration Flag Production Centre. The unit has the
and establishment of new khadi institutions. capacity to produce around 5000 National
With a view to uplifting weaker sections of Flags of different sizes per day .
the society, this ban has been removed in
case of institutions managed by persons 5.12.9 Khadi ‘Ready-to-Use’ Mission
belonging to SC/ST categories. During the
year 2007-08 (up to December 2007), 50
5.12.9.1 KVIC has initiated a “Ready-to-
new khadi institutions have been registered
Use” Mission during 2005-06 for khadi
under this category.
products. Under this mission, a major
khadi institution works as a lead institution,
5.12.7 Khadi Artisans Welfare Trust where facilities for production of garments
Fund (KAWTF) including covering, designing, finishing,
packaging, etc., are installed. Other
5.12.7.1 Conceptually, KAWTF is run on institutions (at least 9) working in the
the pattern of Employees Provident Fund. nearby areas are associated in a concentric
Membership of the Fund is mandatory for all manner with the activities of the lead
khadi and polyvastra producing institutions institution. As a result, all of them are able
affiliated to KVIC and State KVIBs. The to upgrade their product quality by sharing
institutions categorised as A+, A, B and C their experiences and common facilities
are eligible to join the Fund. 21 States have installed at the lead institution(s). The
been covered under this Fund, mobilising
National Institute of Fashion Technology
contributions of artisans and the institutions
is the technical consultant for the projects
to the tune of Rs. 609.30 lakh. Cumulative
being set up under the mission. KVIC has
balance under the Fund, as on 31.3.2007,
identified 5 mission projects for production
was Rs. 3179.27 lakh.
of “Ready to Use Khadi” in the country.
5.12.8 National Flag Production Centre

5.12.10 Central Sliver Plants (CSPs)
5.12.8.1 As per the Bureau of Indian

Standards (BIS), khadi is the only fabric that 5.12.10.1 In order to improve the quality of
can be used for production of India’s National raw material in khadi sector, KVIC has been
Flag. One National Flag Production project operating its 6 CSPs at Kuttur, Chitradurga,
76
Hon’ble Prime Minister giving away the award to a woman Khadi entrepreneur
Sehore, Raibareilly, Etah and Hajipur. During being organised through these events, on
2006-07, the khadi institutions purchased issues of topical interest concerning Khadi
slivers/rovings from these plants to the extent and Village Industries.
of 25.94 lakh kgs valued at Rs. 22.36 crore.
During the year 2007-08 (up to 31 December 5.12.12 Credit Guarantee Trust Fund
2007), 20.39 lakh kgs of sliver amounting for MSME(CGT-MSME)
to Rs. 1729.64 lakh was produced in these
Plants and 23.48 lakh kgs of sliver worth Rs. 5.12.12.1 The Credit Guarantee Trust Fund
1983.85 lakh supplied to khadi institutions. for Micro, Small and Medium Enterprises
(CGTMSME) approved the extension of the
5.12.11 People Education Programme credit guarantee to loans advanced by banks
(PEP) under the KVIC/REGP schemes. KVIC has
taken steps to publicise this scheme, in
association with the Trust and the participating
5.12.11.1 As a part of its publicity programme banks.
aimed at informing the people through direct
interaction, KVIC during 2007-08 (upto 5.13 New Initiatives
December 2007), held 23 PEP events.
Besides dissemination of information about
5.13.1 Some need based interventions
policies/programmes/schemes of KVIC have been conceived by the KVIC for
regarding rural industrialisation, essay implementation during the XI Five Year Plan,
competitions, debates and seminars are also which inter-alia include the following :
77
MSME
l providing workshed(s) to khadi which 50 will be those managed by

spinners, on a pilot basis, SC/ST) and
l enhancing productivity of khadi l providing nursing fund for around 200

industry and artisans through weak institutions, renovation of sales
comprehensive backward-forward outlets in 30 selected cases.
linkages, exposure visits, capacity These initiatives are under
building, common facilities, etc., in consideration and in the process of approval
200 selected khadi institutions (of at various stages.
Kum. Kumud Joshi, Chairperson, KVIC welcoming The Union Minister (MSME), Shri Mahabir Prasad
Union Minister (MSME), Shri Mahabir Prasad at lighting a lamp at KVIC Pavillion, IITF 2007
KVIC Pavillion, IITF 2007
78
Chapter VI
COIR SECTOR / COIR BOARD
6.1 COIR INDUSTRY – availability of coconut husk. Historically,

AN OVERVIEW the coir industry started and flourished in
Kerala which has a long coast line, lakes,
6.1.1 India is the largest coir producer in lagoons and backwaters providing natural
the world accounting for more than 80 per conditions required for retting. However,
cent of the total world production of coir fibre. with the expansion of coconut cultivation, coir
The coir sector in India is very diverse and industry has picked up in the States of Tamil
involves households, co-operatives, NGOs, Nadu, Karnataka, Andhra Pradesh, Orissa,
manufacturers and exporters. West Bengal, Assam, Tripura, Pondicherry
and the Union Territories of Lakshadweep
6.1.2 The coir industry employs more than and Andaman & Nicobar Islands through
6.4 lakh persons of whom a majority are from the efforts of Coir Board. The production
rural areas belonging to the economically and processing methods in coir industry
weaker sections of society. Nearly 80% of still continue to be mainly traditional. For
the coir workers in the fibre extraction and instance, spinning is primarily carried out
spinning sectors are women. on traditional ratts which require repeated
walking, forward and backward. The details
6.1.3 The development of coir industry of production of coir and coir products during
has all along been in areas where there the X Plan and in 2007-08 (up to December,
is a concentration of coconut trees and 2007) are given in Table 6.1
TABLE - 6.1: Details of Production of Coir & Coir Products
(Quantity in Metric Tonnes)
Item 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
Coir Fibre 3,53,700 3,64,000 3,85,000 4,10,000 4,30,000 3,40,000
Coir Yarn 2,26,800 2,32,500 2,45,500 2,70,000 2,88,000 2,27,000
Coir Products 75,750 77,900 98,000 1,20,000 1,70,000 1,32,000
Coir Rope 50,000 50,000 50,000 50,000 50,000 37,000
Curled Coir 28,000 29,500 36,500 38,000 48,000 37,000
Rubberised Coir 50,250 51,000 60,000 62,000 68,000 51,000
79
MSME
6.1.4 Similarly, the details of consumption producers and exporters; assistance in

of coir and coir products during this period establishment of units for the manufacture
are given in Table 6.2 of products; promotion of co-operative
TABLE - 6.2: Details of Consumption of Coir & Coir Products
(Quantity in Metric Tonnes)
Item 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
Coir Fibre 89,200 38,400 3,65,750 4,05,000 4,18,500 3,30,000
Coir Yarn 1,25,300 1,96,959 2,22,500 2,35,000 2,48,000 1,95,000
Coir 26,500 19,469 22,500 38,000 45,000 36,000
Products
Coir Rope 49,700 49,692 49,500 49,500 49,000 36,000
Curled Coir 27,500 29,424 35,700 37,000 40,000 31,000
Rubberised 49,700 50,538 54,000 60,000 67,000 49,500
Coir
6.2 COIR BOARD organisations among producers of husk, coir

fibre, coir yarn and manufacturers of coir
6.2.1 The Coir Board is a statutory body products; ensuring remunerative returns to
producers and manufacturers, etc.
established under the Coir Industry Act,
1953 for promoting the overall development
of the coir industry and upliftment of the
6.3 THRUST AREAS FOR DEVEL-
OPMENT OF COIR INDUSTRY
living conditions of workers engaged in this
traditional industry.
6.3.1 The thrust areas for development of
coir sector in the country are as follows:
6.2.2 The Coir Board consists of a full-time
Chairman and 39 members, as provided
Ø Modernisation of production
in Section 4 of the Coir Industry Act, 1953, infrastructure by means of
representing all stakeholders in coir industry. appropriate technology without
displacement of labour.
6.2.3 The functions of the Coir Board for
Ø Expansion of domestic market
the development of coir industry, inter-alia,
through publicity and propaganda.
include undertaking scientific, technological
and economic research and development Ø
Promotion of export of coir and
activities; collection of statistics relating to new products through undertaking
exports and internal consumption of coir and market promotion abroad.
coir products; development of new products Ø
Promotion of research and
and designs; publicity for promotion of development activities like process
exports and internal sales; marketing of improvement, product development
coir and coir products in India and abroad; and diversification and elimination of
prevention of unfair competition among drudgery and pollution abatement.
80
Ø Development of manpower through in CCRI was extended to the coir

training. entrepreneurs. In this laboratory,
140 kg of COIRRET and 2959 kg
Ø
Extension of Research and of PITHPLUS were produced as on
Development findings through field 31.12.2007.
demonstration.
(b) Research Activities: The experi-
Ø
Development of coir industry in all the mental studies on the treatment
coir producing States in association of phenolytic strain of bacteria
with the State Governments. Mycoplana bullatta and
lygnolytic strains, Phenerochaete
6.4 ACTIVITIES OF THE COIR
chrysosporium and Coriolus
BOARD versicolor were applied on coir fibre
for biobleaching and biosoftening.
6.4.1 The main activities being carried out The activity of lignolytic enzymes
by the Coir Board for the overall development viz; lignin peroxides and manganese
of coir sector are as under: peroxide was studied during different
stages of composting coir pith.
6.4.2 Research and Technology: The Lyophilisation of ‘COIRRET’ was
Central Coir Research Institute (CCRI), carried out and the powdered version
Kalavoor, Alleppey, and the Central Institute subjected to treatment on coir fibre.
The studies on the subject are being
of Coir Technology(CICT), Bangalore,
continued for standardization of
undertake research activities for the different
dosage for brown/green husk fibre.
aspects of coir industry beginning with the
Installation of the Scanning Electron
method of extraction of fibre to the processing
Microscope, Gas Chromatograph
and manufacture of end products. The Spectrophotometer HPLC, UV-VIS
identification of new user areas for potential Spectrophotometer, C,H,N,S(O)
utilisation of coir, coir waste, coir pith and Analyser, Atomic Absorption
improvements in processing for better quality Spectrophotometer and Lyophiliser
are the areas of special attention. The Coir was completed and trial operation of
Testing Laboratories have been set up at the equipment conducted in the coir
Pollachi, Tamil Nadu and Bhubaneswar, pith testing laboratory. Analysis for
Orissa to cater to the testing requirements coir pith testing is being carried out
of this sector. on the new equipment. This would
lead to economic utilisation of brown
6.4.3 Modernisation of Extraction and fibre produced in the non-traditional
Processing of Coir Fibre: The activities coconut growing States of India.
under the programme of modernization of (c) Training: The training sessions to
extraction and processing of coir fibre during disseminate details on the Research
the year 2007-08 are as under: & Development activities in CCRI viz;
Corret/Pithplus/ Lignosulphonates/
(a) Pilot Scale Laboratory: The facilities COCOLAWN were organised for
of the Pilot Scale Laboratory set up the benefit of EDP candidates
81
MSME
from different States, viz; Assam, l The Coir Board has initiated a
Sikkim, Tripura, Tamil Nadu, Andhra collaborative project with the “Indian
Pradesh, Karnataka, etc. Asociation for the Cultivation of
Science, Jadavpur, Kolkata on
(d) Testing: As per the requests received “Biosoftening and Biobleaching/
from different coir entrepreneurs, brightening of coir fibre with a
analysis of coir pith samples was diversified end use of the fibre.
carried out in the laboratories of Coir
Board for Nitrogen, Phosphorous, 6.4.5 Product Development and
Potassium (NPK), PH, Salinity, Diversification: The activities comprising
Organic Carbon, Lignin and this programme of Coir Board are as under:
phytosanitary certification for the
presence of E.Coli and Salmonella. l Development of blended yarn of
6.4.4 Development of Coir Machinery: coir fibre and sisal fibre (80:20) and
Under this programme of the Board, the manufacturing of novel products
following activities have been undertaken: with blended yarn and weaving
mats on power loom, jacquard and
semi mechanised loom with new
l A mild steel handloom “Anugraha”
patterns. Altogether 229 different
for weaving coir mattings and blends of coir products were
geotextiles was developed and developed with the blended yarn.
fabricated by CCRI. In this loom, the Besides, implementation of the 3rd
frames are moved up and down by phase of coir geotextiles project in
a mechanism which is operated by a association with IIM, Kozhikode has
wire-rope and cable. The loom can been completed and the process
thus be operated even by women has been documented.
workers who are normally not
engaged in the weaving operation l For manufacturing coir structural
on conventional handloom due to composites, i.e., door frame, a design
the drudgery involved. The output of compression moulding machine
of the loom is 10 metres per hour for has been developed at the Central
geotextiles. The Coir Board has since Institute of Coir Technology (CICT),
commercialised the technology. Bangalore. The new technology aims
at using the waste coir fibres and to
l Another versatile loom “ANUPAM” make coir structural composites. The
for weaving all types of coir mats, waste coir fibres will be separated
mattings and carpets has been from the coir pith and impregnated in
developed by CCRI. Pneumatic the special mixer machine designed
power is used as the prime mover for and then hot cured under pressure
the loom. The traditional motorised and temperature.
ratts have been attached with a
small willowing machine which is 6.4.6 Testing and Service Facility:
operated by a quarter HP single The technical staff of the Board has been
phase motor that can be shared deputed in the field for popularisation of
with the ratt also. This technology is research products such as application
under commercialization. of vegetable oil in water emulsion to
82
unsoaked green husk fibre, PITHPLUS, in 63 exhibitions during 2007-08 (up to

COIRRET, etc. and also for the utilisation December 2007) for popularization of coir
of Coir Bhoovastra (geo-textile) for soil and coir products in the domestic market
erosion control. During the period under out of which 6 exhibitions have been
report, CCRI has undertaken testing of organised in North Eastern Region (NER).
different type of coir products as per the
requirements of Bureau of Indian Standards 6.5.2 The Coir Board has 30 Showrooms
(BIS) and exporters and tested the samples and Sales Depots as marketing outlets. The
as per the standards formulated by BIS sales through the Board’s Showrooms during
and ASTM. A total number of 151 samples the year (up to December 2007) have been of
of coir and coir products were tested in the order of Rs 480.33 lakh. The total sales
the Physical Testing Laboratory and ASTM of coir and coir products through Coir Board’s
laboratory of CCRI and CICT. showrooms and sales depots during X Plan
and in 2007-08 are given in Table 6.3
6.5 DOMESTIC MARKET
TABLE - 6.3: Coir Board’s Sales of Coir & Coir Products
PROMOTION
(Rs. Lakh)
6.5.1 The promotion of the sales of coir 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
products in India and abroad is one of the 692.45 727.29 762.55 754.86 780.95 480.33
important functions of the Coir Board. The *up to December 2007
Domestic Market Promotion, includes
efforts for enhanced sale of coir products
6.6 EXPORT MARKET
through Board’s showrooms and sales
PROMOTION
outlets, and also popularising coir and
coir products through publicity, organising 6.6.1 The export promotion programme
exhibitions in different parts of the country, is one of the important programmes being
using audio and visual media, carrying implemented by the Coir Board for sustainable
out sales campaign, press advertisement development of the industry. Under this
and distribution of pamphlets, installing programme, the Coir Board, in association
hoardings etc. Coir Board has participated with trade and industry, is participating in major
international fairs/exhibitions on a country/
product specific basis, undertaking product
promotion programmes, catalogue shows,
extending external market development
assistance to exporters etc.
6.6.2 With efforts of the Coir Board, the

export of coir and coir products touched
Rs. 605.17 crore during 2006-07, recording
a growth of 19 per cent in value terms, as
compared to the previous year. This is the
highest ever export for the coir industry. The
Coir Board awarded Silver Medal at IITF 2007
83
MSME
details of exports of coir and coir products 6.6.4 Besides, for popularising the coir and
made during the X Plan and 2007-08 are coir products and promoting their export,
given in Table 6.4 the Coir Board has taken many steps like
TABLE - 6.4: Details of Exports from Coir Sector catalogue show during the year. The highlight
Year Quantity Value
was the India International Coir Festival held in
(Metric (Rs. crore) Kochi between 7 December to 11 December
Tonnes) 2007. As many as 108 participants from 33
2002-03 84183 352.71
2003-04 102253 407.50 countries took part in this event.
2004-05 122927 473.40
2005-06 130627 508.45
2006-07 168755 605.17 6.7 DEVELOPMENT OF
Total 608745 2347.23 P R O D U C T I O N
2007-08* 133772 434.13
*up to December 2007 INFRASTRUCTURE
6.6.3 During the year 2007-08 (up to
December 2007), the Coir Board participated 6.7.1 The Brown Fibre Sector of the coir
in the following fairs and exhibitions for industry in India has progressed rapidly
promotion of exports of coir and coir during the last three decades. Under
products. this scheme, the Coir Board is extending
TABLE - 6.5: Participation in Fairs and Exhibitions
financial assistance of 25 per cent of
the cost of equipment and infrastructural
Sl. Name of Country/ Period
facilities subject to ceiling of Rs. 1.5 lakh
No. Exhibition Place
1 China Sourcing Hong Kong 20-23 April for setting up new coir units and Rs. 50,000
Fair 2007 for modernisation of existing coir units and
2 Global Home Florida, USA 08-10 May installation of generator sets of upto 11 KVA
Textile Show 2007 capacity to run fibre/curled coir units. The
3 Africa’s Johnnesburg 15-17 details of financial assistance given to the
Big Seven July,2007 units under this scheme during the X Plan
Exhibition
and 2007-08 (up to December, 2007) are
4 House & Gift Sao Paulo, 18-21
Fair Brazil August given in Table 6.6.
2007 TABLE - 6.6: Details of Assistance Under DPI
5 International Birmingham, 2-5
Autumn Fair UK September Year Amount Number of
2007 (Rs. lakh) Units
6 Rwanda Kigali, 23 Sep.-3 2002-03 28.71 25
International Rwanda Oct. 2007 2003-04 73.16 58
Trade Fair 2004-05 69.94 48
7 International Amsterdam 09-12
2005-06 144.57 77
Horticulture Oct.2007
2006-07 81.73 61
Fair
8. IITF New Delhi 14-27 Total 398.11 269
November 2007-08 70.78 36
2007 *As on 31 December 2007
84
6.8 TRAINING, QUALITY IMPROVE- for spinning coir yarn to women artisans
MENT AND MAHILA COIR YOJANA after giving them training. Not more than
one artisan per household is eligible to
6.8.1 Training: The Coir Board receive assistance under the scheme.
continued to impart training in processing of Women spinners are trained for two months
coir to artisans and workers engaged in the in spinning coir yarn on motorised ratt at
coir industry through its training centres, i.e., the Board’s training centres. A stipend of
National Coir Training and Design Centre Rs.500/- is also paid to the trainees. A trainee
(NCT&DC), Kalavoor, Alleppey and Research- who passes the test conducted on conclusion
cum-Extension Centre, Tenkasi, Tamilnadu. of the training, is eligible for subsidy for
purchasing a motorised ratt. The beneficiary
The Board is also conducting training under the scheme gets a subsidy of 75 per
activities at a number of Field Training Centres cent of the cost of the motorized ratt subject
as per the convenience of coir workers. The to a maximum of Rs.7,500/- and 75 per cent
Field Training Centres are run with the help of the cost or Rs 2,965/- whichever is less,
of NGOs/Co-operative Societies engaged for motorised traditional ratts. The details
in coir activities. These training activities of distribution of ratts and the assistance
consist of training on spinning motorised ratt sanctioned under this scheme during the X
and motorised traditional ratt. Plan and in 2007-08 (up to December, 2007)
are given in Table 6.7
6.8.2 Quality: The Coir Board has TABLE - 6.7: Distribution of Rates
been organising Quality Improvement Year No. of Ratts Assistance
Programmes (QIPs) every year to motivate Distributed Sanctioned
entrepreneurs to take up coir production and (Rs. lakh)
2002-03 1303 38.79
create quality consciousness among the coir
2003-04 1556 64.25
workers in various processing activities viz;
2004-05 3212 112.79
spinning, dyeing and improving the quality of 2005-06 4220 122.00
yarn and coir products. 2006-07 21130 569.27*
Total 31421 907.10
6.8.3 Mahila Coir Yojana: The Mahila 2007-08 (up to 1042 34.26
December 07)
Coir Yojana is the first women oriented
*This was because of a special drive and specific
self employment scheme in the coir additional funding given in this year.
industry which provides self employment
opportunities to the rural women artisans in 6.9 BUDGETARY SUPPORT TO
regions producing coir fibre. The conversion THE COIR BOARD
of coir fibre into yarn on motorised ratt in rural
households provides scope for large scale 6.9.1 For implementing the various
employment, improvement in productivity schemes/programmes, the Government has
and quality, better working conditions and provided the following budgetary support to
higher income to the workers. The scheme the Coir Board during the X Plan and 2007-
envisages distribution of motorised ratts 08 (up to December, 2007):
85
MSME
Shri Mahabir Prasad, Hon’ble Union Minister of MSME lighting the “Mashal” of India International Coir
Fair 2007 alongwith the Chairman, Coir Board, Shri A.C. Jose, Ex-Member of Parliament
TABLE - 6.8: Budgetary Support During Xth Plan 6.10 HINDUSTAN COIR
(Rs. crore)
Year Budget Funds 6.10.1 Pursuant to the decision of the
Allocation Released Government to mechanise one third of
(RE)
coir matting sector, the Hindustan Coir,
2002-03 15.60 13.77
a powerloom coir matting manufacturing
2003-04 15.85 14.52
factory under the Coir Board was established
2004-05 18.00 16.80 in 1968 as a Pilot Project. The total production
2005-06 35.51 35.43 of Hindustan Coir matting during X Plan and
2006-07 23.00 22.90 in 2007-08 (upto December, 2007) are given
Total 107.96 103.42 in Table 6.9
2007-08* 36.70** 21.53
*Up to December 2007
6.10.2 A proposal for revamping Hindustan
** Including proposed new scheme on Rejuvenation
of Coir Industries Coir is under consideration of the Coir Board
TABLE - 6.9: Details of Production of Hindustan Coir
(Quantity = Sq. Mtrs.)
(Value = Rupees in Lakh)
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
Quantity 1,54,270.06 1,96,269.00 2,12,536.14 1,55,748.38 1,74,660 1,25,208
Value 144.06 183.00 245.26 234.00 253.00 160.00
*(up to December 2007)
86
along with the modernization of 31 sales (iii) Permanent Partial

outlets/showrooms. Disability
(a) Loss of one limb/ : Rs. 25,000.00
6.11 NEW INITIATIVES one eye
(b) Provision for finger Depending
6.11.1 Entrepreneurship Development cut upon the
finger and limited
Programmes (EDPs)
to applicable
percentages
6.11.1.1 It has been estimated that only about of capital sum
40 per cent of the total production of coconut insured of
husk is being utilized in the coir industry. For Rs. 50,000/- as
generating employment avenues in the coir per Personal
sector, the utilisation of husk has to be increased Accident Policy
considerably for which more new units are conditions.
required to be set up. In order to motivate and
6.11.2.2 During the financial year 2007-08
identify prospective entrepreneurs for setting
(up to December 2007), 07 insurance claims
up and managing new coir units, the Coir
were settled and an amount of Rs. 2,29,000/-
Board has been organising EDPs through
has been paid towards compensation.
engagement of professionally competent and
reputed organisations.
6.11.3 Alappuzha Coir Cluster
Development Project
6.11.2 Coir Workers Group Personal
Accident Insurance Scheme
6.11.3.1 The Alappuzha Coir Cluster
Development Project was launched in
6.11.2.1 The Insurance Scheme for Coir
October 2005 at Central Coir Research
Workers was introduced by the Coir Board
Institute, Kalavoor, Alleppey for creating
w.e.f. 01.12.1998 and is being renewed year
after year. The scheme was renewed w.e.f. planned infrastructure facilities under the
01.12.2006 with the Oriental Insurance project. This project with an outlay of Rs. 56.80
Company, Ernakulam. The insurance crore was sanctioned by the Department of
premium of Rs.8,53,208/- for a period of Industrial Policy and Promotion (DIPP) for
one year w.e.f. December 2006 was paid to cluster-based development of coir industry
the Insurance Company. The compensation in Kerala, with central grant of Rs. 42.60
payable under this scheme is as under. crore (75 per cent of project cost), under
the Industrial Infrastructure Upgradation
(i) Accidental Death : Rs. 50,000.00 Scheme of the Department. The thrust
areas under the Project are : husk collection,
(ii) Permanent Total
Disability fibre extraction, coir yarn production, modern
methods of weaving, coir pith processing
(a) Loss of two limbs/ : Rs. 50,000.00
and common facility service centres. The
two eyes
stakeholders of the Project are exporters’
(b) Loss of one limb : Rs. 50,000.00
and one eye associations, small scale manufacturers,
87
MSME
coir co-operative societies and NGOs in the motorized traditional ratt and spinning sheds
coir sector. The Project is expected to result for the women SHG groups. The details of
into generating additional direct employment projects sanctioned and undertaken by the
to the tune of 23,000 and equal number in ACCDS are furnished below:
an indirect manner.
(i) Fibre extraction : 2 units
6.11.3.2 For implementation of the Project, (ii) Motorised traditional : 932
a Special Purpose Vehicle viz; Alappuzha ratts with spinning sheds ratts
Coir Cluster Development Society (ACCDS) and 158
has been created with representation from sheds
the Department of Industrial Policy and (iii) Automatic coir yarn : 1 No.
Promotion, Ministry of Commerce and
spinning unit
Industry, Government of India, Government
(iv) Coir mat frame type : 4 Nos.
of Kerala, Coir Board, Kerala State Pollution
Control Board, District Administration, and coir geotextile units
Alleppey, Lead Bank and the Trade (v) Semi-automatic loom : 1 No.
Associations including NGOs. A series unit
of meetings of ACCDS had been held to (vi) Coir pith manure : 3 Nos.
sanction sub-projects for infrastructure units
development. During the year under report, 6.11.3.3 A total amount of Rs. 209.64 lakh
the ACCDS has sanctioned projects for has been incurred so far under the project.
establishment of semi automatic loom unit ACCDS has forwarded a revised work plan
for weaving coir matting, coir pith processing, and time schedule for completion of the
automatic coir yarn production and also Project to DIPP, for its approval.
88
Chapter VII
TRAINING AND ENTREPRENEURSHIP
DEVELOPMENT
7.1 BACKGROUND for development of micro and small

enterprises (MSEs), particularly, the first
7.1.1 Entrepreneurship has been generation entrepreneurs. To undertake this
considered the backbone of economic task on regular basis, the Ministry has set
development. It has been well established up three national-level Entrepreneurship
that the level of economic growth of a region Development Institutes (EDIs). These are,
to a large extent, depends on the level of the National Institute for Micro, Small and
entrepreneurial activities in the region. The Medium Enterprises (NI-MSME), Hyderabad;
myth that entrepreneurs are born, no more the Indian Institute of Entrepreneurship
holds good, rather it is well recognised now (IIE), Guwahati and the National Institute
that the entrepreneurs can be created and for Entrepreneurship and Small Business
nurtured through appropriate interventions Development (NIESBUD), Noida. Further,
in the form of entrepreneurship development the Ministry has been implementing (in
programmes. addition to the schemes of MSME-DO) an
important scheme, namely, Scheme for
7.1.2 In the era of liberalisation, Assistance for Strengthening of Training
privatisation and globalisation along with Infrastructure of Existing and New
ongoing IT revolution, capable entrepreneurs Entrepreneurship Development Institutes
are making use of the opportunities emerging (EDIs). The main objectives of the scheme
from the evolving scenario. However, a large are (i) promoting entrepreneurship for
segment of the population, particularly in the creating self-employment through enterprise
industrially backward regions/rural areas creation; (ii) facilitating creation of training
generally lags behind in taking advantage infrastructure; and (iii) supporting research
of these opportunities. Therefore, there is on entrepreneurship related issues.
a need to provide skill development and
entrepreneurship development training to 7.1.4 Further, in order to improve the success
such people in order to mainstream them in rate of the EDP trainees in the establishment
the ongoing process of economic growth. of new enterprises, the Ministry has recently
launched a new scheme, namely, Rajiv
7.1.3 Entrepreneurship development and Gandhi Udyami Mitra Yojana (A Scheme
training is, thus, one of the key elements for “Promotion and Handholding of Micro
89
MSME
and Small Enterprises”). The main objective grant funds provided under the scheme can
of this scheme is to provide handholding be used to meet the recurring expenditure of
support to first generation entrepreneurs, the institute.
through designated lead agencies i.e.
‘Udyami Mitras’. Under this scheme, the 7.2.2 The institutions/organisations seeking
‘Udyami Mitras’ would provide guidance and assistance under this scheme should be
assistance to the potential entrepreneurs registered as not-for-profit organisation with
registered with them, in preparation of entrepreneurship development as its main
project report, arranging finance, selection objective, should possess a clear title of the
of technology, marketing tie-ups with buyers, land required for setting up of the proposed/
installation of plant and machinery as well as existing institution, have a separate bank
obtaining various approvals, clearances and account in a scheduled bank in which all
receipts/funds received by the institute
NOCs etc. For providing this handholding
should be credited and payments made on
assistance to the new entrepreneurs, the
the basis of authorisation by the Governing
‘Udyami Mitras’ shall be paid handholding
Council of the institute.
charges under the scheme.
7.2.3 All the proposals under this scheme
7.2 SCHEME FOR ASSISTANCE FOR are required to be recommended by and
STRENGTHENING OF TRAINING routed through the concerned State/UT
INFRASTRUCTURE OF EXISTING Government.
AND NEW ENTREPRENEURSHIP
DEVELOPMENT INSTITUTES 7.3 NATIONAL INSTITUTE FOR
(EDIs) MICRO, SMALL AND MEDIUM
ENTERPRISES (NI-MSME),
7.2.1 The scheme envisages providing HYDERABAD
financial assistance to State-level existing/
proposed institutions meant for supporting 7.3.1 NI-MSME, formerly known as
entrepreneurship development and self- National Institute of Small Industry
employment activities. Under this scheme, grant Extension Training (NISIET), was set up
is given for setting up of new entrepreneurship in 1960 at New Delhi as a Department of
development institutions (EDIs) and also for Central Government under the Ministry of
up-gradation and modernisation of existing Commerce and Industry and was initially
EDIs in the country. Under the scheme, a known as Central Industrial Extension
Training Institute (CIETI). Subsequently,
matching grant of 50 per cent, subject to a
in 1962, it was shifted to Hyderabad and
ceiling of Rs.100 lakh, is provided for building,
converted into an autonomous society. In
equipment, training aids etc., the balance
1984, the Institute was renamed as National
being contributed by the State/Union Territory Institute of Small Industry Extension
Governments and other agencies. The financial Training (NISIET). After enactment of the
assistance provided under this scheme is only MSMED Act, 2006, the Institute has been
catalytic and supportive to the contribution and renamed as National Institute for Micro,
efforts of State/Union Territory Governments Small and Medium Enterprises (NI-MSME),
and other agencies. Under no circumstances w.e.f. 11th April 2007. The Institute has
90
benefited not only the Indian micro, small 7.3.2 The academic activities of the Institute
and medium enterprises (MSMEs) but also are organized through centres of excellence
those in other developing countries through focusing on specific needs of the MSMEs.
a plethora of activities and thus helped in The Academic Council of the Institute is the
promoting self-employment and enterprise central coordinating body for benchmarking,
development. The Institute is constantly formulation and evaluation of academic
evolving in accordance with the changing activities and programmes.
times, modifying its focus with the emerging
needs of MSMEs and providing solutions in
7.3.3 The performance of the Institute
the form of consultancy, training, research,
for 2006-07 (actual) and for the period of
and education. NI-MSME’s programmes are
April – December 2007 (actual) and the
designed to have universal relevance for
successfully training the entrepreneurs to projection for the remaining three months
face challenges and emerging competition of 2007-08 is presented are given in Table
in the era of globalisation. 7.1
TABLE - 7.1: Performance of NI-MSME at a Glance

Programmes 2006-07 2007-08
No. of No. of From 1.4.2007 to From 1.1.2008 Total
Progra- Partici- 31.12.2007 to 31.3.2008
mmes pants (actuals) (Projections)
No. of No. of No. of No. of No. of No. of
Progra- Partici- Progra- Partici- Progra- Partici-
mmes pants mmes pants mmes pants
Entrepreneurship
Development
Programmes:
Counselling, 75 3296 14 813 30 1200 44 2013
Re-training and
Re-deployment
of rationalized
employees of CPSUs
EDP for ST Youth 16 606 -- -- 10 500 10 500
Other EDPs 5 205 -- -- 10 500 10 500
Other Programmes:
National:
Announced 18 180 14 143 10 150 24 293
Sponsored 54 1364 17 335 10 250 27 585
International:
Announced 18 246 10 110 4 90 14 200
Sponsored 2 30 5 68 4 105 9 173
Educational:
PG Diploma 7 77 2 23 -- -- 2 23
IT 4 131 4 74 3 60 7 134
IGNOU 10 175 5 180 3 180 8 360
Seminars and 25 925 15 681 8 400 23 1081
Workshops
Consultancy & 21 -- 23 -- 5 -- 28 --
Research
Total 255 7235 109 2427 97 3435 206 5862
91
MSME
7.3.4 Over the years, the Institute has 2007. The major ones of them are indicated
gained immense experience and expertise in are given in Table 7.2
the areas of entrepreneurship development,
technology, management and information 7.4 INDIAN INSTITUTE OF ENTRE-
services. NI-MSME’s inherent capacity PRENEURSHIP (IIE), GUWA-
to innovate, together with its modern HATI
infrastructure, has enabled the Institute to
excel in its endeavour of MSME promotion.
7.4.1 The Indian Institute of
Entrepreneurship (IIE) was set up at Guwahati
7.3.5 NI-MSME has always been conceiving
in 1993. It took over NI-MSME’s NER
specialised need-based programmes,
Centre w.e.f. 1st April, 1994. The Institute
workshops and seminars in tune with the
changing policy and economic scenario. The is completing 14th year of its operation on
primary aim of these activities has been to enable 31st March 2008. During this period, the
the enterprises and the supporting systems Institute has expanded its activities to a
to deal effectively with aspects that directly or great extent covering all facets of MSME
indirectly affect the success of enterprises. activities. Since its establishment and up to
March 2007, the Institute has organized 1167
7.3.6 NI-MSME has developed profitable training programmes / workshops / seminars
interface with several international agencies / meets with a cumulative participation of
like CFTC (Commonwealth Fund for 38524 persons. The Institute has obtained
Technical Co-operation), UNESCO (United ISO-9001-2000 certification from the
Nations Educational, Scientific and Cultural Bureau of Indian Standards. The Institute
Organisation), UNDP (United Nations has expanded its canvas of activities not
Development Programme), Ford Foundation, only in terms of geographical coverage but
GTZ of Germany, USAID (United States also in terms of diversification into various
Agency for International Development), and related areas of the activities pertaining to
ILO (International Labour Organisation), to
socio-economic development. The Institute
name a few.
regularly organises training programmes
and undertakes research and consultancy
7.3.7 During the period from April 2007 to
services in the field of promotion of MSMEs
December 2007, the Institute has conducted
and entrepreneurship.
71 training programmes, which were
attended by 1746 persons. Besides, 15
Seminars and Workshops were conducted 7.4.2 The kind and number of training
during the same period with 681 delegates. programmes organised and number of
participants trained during 2006-07 and
7.3.8 Twenty-three research and 2007-08 (up to December, 2007) along with
consultancy projects have been taken up projections for the last quarter of the current
during the period from April – December financial year, are given in Table 7.3
92
TABLE - 7.2: Research and Consultancy Projects (ni-msme)
Research and Consultancy Project Sponsored by Progress
1. Study of Sick Industries in Goa Government of Goa In progress
2. Status of Women Entrepreneurship in Department of Science and Completed

Andhra Pradesh Technology, Govt. of India
3. Development of Handloom Cluster at Development Commissioner In progress

Mubarakpur, U.P. (Handlooms), Govt. of India
4. Development of Handloom Cluster at Development Commissioner In progress

Barabanki, U.P. (Handlooms), Govt. of India
5. Handholding services to six Khadi Clusters Khadi & Village Industries In progress
(SFURTI) Commission, Govt. of India
6. Handholding services to six Village Industries Khadi & Village Industries In progress
Clusters (SFURTI) Commission, Govt. of India
7. Feasibility Study for setting up Working Andhra Pradesh Women’s In progress

Women Hostels in Andhra Pradesh Cooperative Finance Corporation
Ltd., A.P.
8. Survey of EDPs conducted by SISIs (now MSME-DO, Govt. of India Completed

MSME Development Institutes)
9. Evaluation of 10% Rebate Scheme of Development Commissioner Completed

Handloom Sector (Handlooms) , Govt. of India
10. Study of Leather Footwear and other articles MSME-DO, Govt. of India In progress
manufacturing in Agra
11. Technical Services to 12 Coir Clusters Coir Board, Cochin In progress

(SFURTI)
12. Assistance through Financial Services GTZ, New Delhi In progress

to Readymade Garment MSMEs in
Hyderabad, A.P.
13. Assistance through Business Development GTZ, New Delhi In progress

Services to Readymade Garment MSMEs in
Hyderabad, A.P.
14. Conduct of Test for recruitment for the posts National Mineral Development In progress
of Maintenance Assistant (Trainee) for Corporation, Govt. of India
NMDC at Hailadilla
15. Rehabilitation of Tsunami affected Families International Labour Organisation, In progress

New Delhi
93
MSME
TABLE - 7.3: Performance of IIE at a Glance

Type of Programmes 2006-07 2007-08
No. of No. of From April 2007 From January Total
Progra- Partici- to December 2008 to
mmes pants 2007 (actuals) March 2008
(Projections)
1. Promotion of New 61 3102 29 838 44 1100 73 1938
Entrepreneurs
(PNE)
2. Growth of Existing 103 3756 56 2136 16 400 72 2536
Entrepreneurs
(GEE)
3. Creation of 17 407 23 1016 8 200 31 1216
Environment for
Entrepreneurship
(CEE)
4. Entrepreneurship 32 1324 13 556 2 50 15 606
Education (EE)
5. Information 03 66 2 44 - - 2 44
Technology (IT)
6. Seminar/ Workshop 09 456 17 713 12 300 29 1013
(S/W)
Total 225 9111 140 5303 82 2050 222 7353
7.4.3 The promotion of new entrepreneurs 7.4.4 The Institute under the sponsorship
has been the major focus of training of the Ministry of MSME, Government of
activities organised by the Institute. In order India has initiated a unique programme
to promote new entrepreneurs, the Institute of Comprehensive Entrepreneurship
organizes rural, general and women EDPs Development (CEDP) on gemstones
and sector specific EDPs. The Institute has processing and hosiery & woolen garment
organised 29 such programmes covering manufacturing. Under CEDP, the Institute
838 participants during the first 3 quarters of conductedone entrepreneurshipdevelopment
the current year. Besides, while continuing programme of three months duration for
with its Rural Industries Programme (RIP) hosiery and woolen garment manufacturing
in Meghalaya, Manipur and Assam, the at Itanagar in Arunachal Pradesh, which was
Institute also started its RIP at Nongpoh attended by 8 entrepreneurs.
in Meghalaya with the help of SIDBI. Till
December 2007, Nongpoh RIP trained 7.4.5 The Institute has set up two training
160 entrepreneurs and grounded 43 units. centres, one at its premises in Guwahati
Another 24 units are in the pipeline. The and the other at Aizawl, in collaboration
Institute also organized two programmes on with Directorate of Industries, Government
handloom sector under SFURTI, where 32 of Mizoram, for gemstone processing. For
participants were benefitted. hosiery & woolen garment manufacturing,
94
two centres were set up in Sikkim and quality testing in which 56 entrepreneurs
Arunachal Pradesh, in collaboration with participated.
the Khadi and Village Industries Boards
of respective State Governments. The 7.4.10 Creating awareness amongst college
project, which is the first of its kind in North and university teachers and students about
East, imparts skill development training to entrepreneurship has been one of the focus
prospective entrepreneurs and artisans areas of the Institute. The Institute organised
along with incubation facilities and technical one faculty development programme in
support/ guidance for market linkages. entrepreneurship for school, college and
university teachers in which 18 teachers
7.4.6 Keeping in tune with the market participated. During the year, the Institute
demands and the available infrastructure, IIE organised 10 awareness camps for the
with its professional expertise, has launched students of colleges and 2 such programmes
the Post Graduate Diploma Course in for polytechnic students. The Institute
Management and Entrepreneurship (PGDME), has also been instrumental in setting up
which is the first of its kind in the entire Eastern Information & Career Guidance Cell (ICGC)
and North Eastern Region. The second batch in a number of colleges through its Teachers’
of the course started in July 2007. The course Training Programmes. Till date, 80 colleges
aims at providing comprehensive inputs on have opened such ICGCs in different parts
entrepreneurial as well as managerial aspects of the Region.
of running a business.
7.4.11 During the year, the Institute
7.4.7 Considering the importance of organised 2 training programmes on IT
creating environment for entrepreneurship sector. The Institute also organised a six
development, the Institute has been months Teachers Training Programme on
organising programmes for unemployed Computer Applications, which was attended
youth and orientation of the support officials. by 19 teachers.
During the year, the Institute organised 23
such programmes, which were attended by 7.4.12 The Institute has been organising
1016 participants. seminars, workshops, meets and conferences
for providing an enabling platform for
7.4.8 The Institute organised a series of interaction and exchange of views by various
programmes for growth and development agencies and entrepreneurs. During the year,
of existing entrepreneurs. The Institute the Institute organised 11 such workshops/
organised 51 Programmes for KVIC seminars/meets. The Institute also, inter-
beneficiaries, wherein 2043 beneficiaries alia, organised two Regional Meets for
were trained. promotional functionaries. Altogether 713
participants attended these Workshops/
7.4.9 At the instance of the Development Seminars/Meets.
Commissioner (Handicrafts), the Institute
organised two programmes on export 7.4.13 The Cane & Bamboo Cluster at
procedures and one programme on Dimapur in Nagaland and Handloom Cluster
95
MSME
in Manipur are IIE’s maiden ventures into the Development (NIESBUD), NOIDA was set
cluster initiative in North East. Considering up in 1983 as an apex institution in the field of
the availability of local resources and entrepreneurship development to promote,
craftsmanship, IIE has initiated the process support and sustain entrepreneurship and
of development of clusters of traditional and small business through training, education,
rural artisans in these sectors. research and consultancy services.
7.4.14 The Government of India has 7.5.2 The major activities of the Institute
launched Scheme of Fund for Regeneration include evolving model syllabi for training
of Traditional Industries (SFURTI), a mega various target groups; providing effective
project with industrial cluster development training strategies, methodology, manuals
approach. This project aims to adopt and tools; facilitating and supporting
10 clusters in North East Region under Central/State Governments and other
traditional industry sector and showcase agencies in executing programs of
them as the success stories. IIE has been entrepreneurship and small business
identified as the Technical Agency under this development; maximizing benefits and
accelerating the process of entrepreneurship
scheme for Eastern India.
development; and conducting programs
for motivators, trainers and entrepreneurs.
7.4.15 The Institute has undertaken a “Study
The Institute helps other Entrepreneurship
on Industries based on Ancillary and Support Development Institutions in various ways,
Services of Large and Medium Industries of such as developing syllabi in entrepreneurship
North East India”. The work under the study for different target groups, training of faculty,
is in progress. developing training aids etc.
7.4.16 The Institute signed a Memorandum 7.5.3 The performance of the Institute during
of Understanding (MoU) to develop 2006-07 (actual) and actual performance for
entrepreneurship in Oman. The agreement will the first three quarters of 2007-08 along with
provide for the development of an institutional projections for the last quarter are given in
framework to promote entrepreneurship Table 7.5.
in Oman. The Institute would also advise
on identification of training needs and 7.5.4 In order to strengthen efforts for
assist in designing programmes to develop realising the cherished goal of “inclusive
functionaries. growth” with focus on “bottom of pyramid”,
the Institute has made an attempt to
7.5 NATIONAL INSTITUTE FOR EN- organise exclusive training programmes for
TREPRENEURSHIP AND SMALL the officials engaged in implementation of
BUSINESS D E V E L O P M E N T the policies for tribal, backward classes and
(NIESBUD), NOIDA other down-trodden sections of the society.
These programmes included - training
7.5.1 The National Institute for programmes on Project Management
Entrepreneurship & Small Business for Small Business Enterprises in Tribal
96
TABLE - 7.5: Performance of NIESBUD at a Glance

Type of Programme 2006-07 2007-08
No. of No. of From April 2007 From January Total
Progra Partici to December 2008 to
mmes pants 2007 (actuals) March 2008
(Projections)
1. Trainers’/ 30 504 25 478 07 105 32 583
Promoters’
Programmes
2 Small Business 12 392 03 139 05 75 08 214
Opportunities
& Development
Programmes for
Women/Weaker
Sections
3 Entrepreneurship 03 37 06 66 02 30 08 96
Continuing
Education
Programme
4. Seminars, 06 190 06 247 05 125 11 372
Workshops &
Conferences
5. E.D.Ps 33 968 42 3528 20 400 62 3928
6. International 06 83 05 62 02 44 07 106
Training
Programmes
Total 90 2174 87 4520 41 779 128 5299
Areas for officials of Department of Tribal Act, 2006 in providing sustenance to these
Development, Govt. of Madhya Pradesh; sectors, the Institute has taken initiative in
programme on Performance Motivation for providing orientation to officers of different
the officers of the Department of Sericulture; State Governments in implementation of
Government of Madhya Pradesh and different provisions of the Act, including
Management Development Programmme the changed role of DICs officials, after
(MDP) for the officials of West Bengal enactment of the Act. Two such programmes:
Backward Classes Development & Finance one each for the officials of the Directorate
Corporation (WBCDFC). of Industries, Government of Uttarakhand
and West Bengal have been organised with
the funds provided by the respective State
7.5.5 In view of the crucial role expected
Governments. Similar programmes are also
to be played by the newly enacted Micro,
being planned for the officials of several
Small & Medium Enterprises Development other States/UTs.
97
MSME
7.5.6 In order to enhance the operational 7.5.11 The Institute conducted three training
efficiency of high-level officials of the different programmes on Project Identification &
state organs for effecting improvements in Selection; Business Development Service
services delivery mechanism, the Institute Providers and Micro-finance & Management
continued with its efforts for organising with 73 participants as sponsored by the
orientation programmes for such officials. Ministry of Development of North – Eastern
One such programme was organised during Region; Government of India. Besides, the
the period, for Labour Commissioners of Institute continued its efforts of encouraging
different states of the country. Two more participants from the North – Eastern Region
such programmes are also planned during of the country, to its different activities/
the remaining part of the current year. programmes.
7.5.7 Continuing with its efforts of orienting 7.5.12 In consonance with its efforts of
different target groups about the implications developing entrepreneurship among women,
of the Intellectual Property Rights (IPRs) for the Institute conducted seven training
the units in various sectors, the Institute programmes exclusively for 227 women
organized a Workshop on Application of the participants. These, inter-alia, included two
IPRs in the field of Agricultural Research. programmes on Gender Equity Through
Enterprise Development at Haridwar and
Banasthali; two EDPs on Food Processing
7.5.8 In consonance with the efforts of the
largely for OBC women and two EDPs on
Government for increasing the supply of
Sewing Machine Operations.
skilled manpower for meeting the growing
demand in different sectors, the Institute
7.5.13 The Institute has been identified
conducted a total of 14 Skills Development
as a Technical Agency under SFURTI with
Programmes for 330 participants, which
Industrial Cluster Development approach.
represented women, SCs/STs/OBCs and
11 clusters have been allotted to the Institute
other weaker sections of the society.
under this Scheme.
7.5.9 The two EDPs on Food Processing

7.5.14 The Institute conducted diagnostic
have been conducted at the request of
study for three industrial clusters viz; (i).
the Haryana State Backward Classes and
scissors cluster (Meerut); (ii) packaging
Socially Weaker Sections Vikas Nigam, at
material cluster (Ghaziabad) and (iii) auto
Faridabad, for the benefits of SCs and OBC
parts cluster (Gurgaon), under SICDP
women participants. scheme of MSME-DO.
7.5.10 Two training programmes for sewing 7.5.15 In order to enlarge outreach of its
machine operators were organised for 50 training programmes, the Institute has
participants representing women, SC/STs launched a new scheme of setting up of
and other weaker sections of the society Entrepreneurship Development Centres
at the Institute’s Training-cum-Incubation (EDCs) through Partner Institutions (PIs), in
Centre for Garment Manufacturing. a PPP mode, on October 16, 2007.
98
7.5.16 Besides, the Institute has entered into Finance and Development Corporation
collaborative arrangements with regional (NSKFDC)” in the state of Andhra
entities, through the mechanism of MoUs, Pradesh, was submitted.
for conduct of different activities in their
(ii) The Report on Impact Study of
respective regions. Such organisations,
ISO – 9000 System Application in
inter-alia, include Himachal Industrial
SSI Sector – MSME-DO, was also
Consultancy Organization (HIMCON);
submitted, during the period.
Madhya Pradesh Consultants Ltd. (MPCON);
Andhra Pradesh Industrial & Technical 7.6 SCHEME OF PARTNER
Consultancy Organization (APITCO) and INSTITUTIONS
Electronics Service and Training Centre
(ESTC), Ramnagar. 7.6.1 In spite of the best efforts of existing
national and state level entrepreneurship
7.5.17 With a view to reinforce the supply development institutions (EDIs), it is felt that
of trained manpower to meet ever growing there is a need to fill the gap in providing
demand of skilled personnel in garment entrepreneurship training in the selected
manufacturing sector and to assist / nurture backward/rural areas and also organising
the first generation entrepreneurs in this entrepreneurship development programmes
sector, the Institute with the assistance (EDPs) for persons belonging to Scheduled
of the Ministry of MSME, has started a Caste / Scheduled Tribe / Minority / Women
Training-cum-Incubation Centre for Garment categories, which might have been left out of
Manufacturing, at its premises. the network of existing training institutions.
In order to bridge this gap, the three national-
7.5.18 The Institute conducted a Small level Entrepreneurship Development
Enterprise Establishment Programme Institutions have recently come out with a
(SEEP) sponsored by NSIC at Haldwani scheme of setting up of Entrepreneurship
(Uttarakhand). 30 participants were provided Development Centres (EDCs) through
training in entrepreneurship, project report Partner Institutions (PIs).
preparation and setting up of enterprises.
7.6.2 Through this scheme, these
7.5.19 An entrepreneurship awareness institutions would be collaborating with
camp-cum-counseling session was also Partner Institutions for organising training
organised at Haldwani, which was attended programmes and for implementing other
by 54 potential entrepreneurs. income generating schemes/programmes,
especially in the remote and backward areas.
This scheme will enhance the outreach of
7.5.20 During the year, the Institute has
these institutions and at the same time, the
carried out the following research / evaluation
Partner Institutions will also be benefited in
studies:-
terms of capacity building of their faculty,
(i) The Report on “An Evaluation Study of access to the infrastructure and resources
SchemesofNationalSafai Karamcharis of national-level institutions through
99
MSME
e-classes etc. Through this approach, these entrepreneurship movement throughout the
institutions would be able to spread the length and breadth of the country.
Launching of Entrepreneurship Development Centre Scheme of NIESBUD
100
Chapter VIII
NATIONAL COMMISSION FOR
ENTERPRISES IN THE
UNORGANISED SECTOR (NCEUS)
8.1 The Government of India infrastructure, technology and

has constituted the National markets and suggest measures to
Commission for Enterprises in the provide institutional support and
Unorganised Sector (NCEUS) on linkages to facilitate easy access to
20.9.2004 to examine the problems them;
being faced by the enterprises in the
unorganised, informal sector. The iii Suggest the legal and policy
Commission is to make appropriate environment that should govern
recommendations to provide technical, the informal/unorganized sector for
marketing and credit support to these growth, employment, exports and
enterprises. The term of the Commission promotion;
which was initially fixed at one year has now iv Examine the range of existing
been extended up to 30th September 2008. programmes that relate to
employment generation in the
8.2 THE TERMS OF REFERENCE informal/unorganized sector and
OF THE COMMISSION suggest improvement for their
redesign;
8.2.1 The Terms of Reference of the v Identify innovative legal and
Commission are as follows: financing instruments to promote
the growth of the informal sector;
i. Review of the status of unorganized/
informal sector in India including the vi Review the existing arrangements
nature of enterprises, their size, for estimating employment and
spread and scope, and magnitude unemployment in the informal sector,
of employment; and examine why the rate of growth
in employment has stagnated in the
ii Identify constraints faced by small 1990s;
enterprises with regard to freedom of
carrying out the enterprise, access vii Suggest elements of an employment
to raw materials, finance, skills, strategy focusing on the informal
entrepreneurship development, sector;
101
MSME
viii Review Indian labour laws, consistent 8.3.2 Whereas, Report (i) is being
with labour rights, and with the considered by the Ministry of Housing and
requirements of expanding growth Urban Poverty Alleviation (HUPA), Reports
of industry and services, particularly (ii), (iii) & (iv) are under the consideration
in the informal sector, and improving of the Ministry of Labour and Employment.
productivity and competitiveness; The reports (v) & (vi) are presently under the
and consideration of the Ministry of Micro, Small
and Medium Enterprises (MSME).
ix Review the social security system
available for labour in the informal
sector, and make recommendations 8.4 PILOT GROWTH POLES
for expanding their coverage. PROJECT FOR THE UNOR-
GANISED SECTOR
8.3 REPORTS SUBMITTED BY
THE NCEUS 8.4.1 The Commission has proposed
establishment of “Growth Poles” in different
8.3.1 The National Commission for parts of the country with a view to integrating,
Enterprises in the Unorganised Sector within a geographical location, a number
(NCEUS) has submitted the following reports of clusters of production units engaged
in respect of the Unorganised Sector during in manufacturing, services and non-farm
the current year except those at i) & ii) which activities and facilitating the expansion of
were submitted in 2006-2007:- production and employment in micro and
small enterprises.
i National Policy on Street Vendors;
8.4.2 The Commission had pursued the
ii Unorganised Sector Workers’ Bill; formation of Growth Poles and requested
iii Comprehensive Legislation for the Chief Ministers and Chief Secretaries
Minimum Conditions of Work and of all the States and UTs for identification
Social Security for Unorganised and selection of pilot projects of Growth
Workers; Poles in the States. In response, six State
Governments have identified and submitted
iv Conditions of Work and Promotion proposals for Growth Pole Pilot Projects, i.e.,
of Livelihood in the Unorganised Janjgir-Champa in Chhattisgarh, Kollam
Sector; in Kerala, Dausa in Rajasthan, Chamoli in
v Financing of Enterprises in the Uttarakhand, Howrah in West Bengal and
Unorganised Sector; and South Western Kamrup in Assam. Out of the
above, five State Governments have already
vi Creation of a National Fund for the submitted their Detailed Project Reports to
Unorganised Sector (NAFUS). the Commission.
102
Chapter IX
INTERNATIONAL COOPERATION
9.1 International Cooperation exploring new areas of technology

Scheme infusion/upgradation, facilitating joint
ventures, improving market of MSEs
9.1.1 The International Cooperation (IC) products, foreign collaborations, etc.
Scheme for modernization, technology (iii) Holding international conferences
up-gradation and enhancement of and seminars on topics and themes
competitiveness of micro and small of interest to the MSEs.
enterprises (MSEs), has been under
implementation since 1996. Technology 9.1.3 During 2007-08, participation of
infusion and/or upgradation of Indian MSEs MSMEs in international exhibitions and
and the modernization and promotion of deputation of business delegations, has
their exports are the principal objectives of been sponsored under the Scheme.
assistance under IC Scheme. Under this
Scheme, micro and small entrepreneurs 9.2 SIGNIFICANT EVENTS
are exposed to potential foreign markets,
products and services for firm/association (i). Mr. Yashukun Enoky, Ambassador
level interactions, inter alia, on sourcing of Japan in India met the
technology, exploring export markets for Secretary(MSME) and other
their products and learning best practices. senior officials of the Ministry on
8.3.2007 for exploring possibilities
9.1.2 The Scheme now encompasses the of cooperation between the two
following activities: countries in the small scale sector.
(ii). Mr. N.K. Sabharwal, Deputy Director
(i) Participation by Indian MSEs in General, World Intellectual Property
exhibitions, fairs and buyer-seller Organisation (WIPO) met the
meets in India, in which there is Secretary (MSME) on 14.3.2007 for
international participation. discussing the areas of cooperation
between the Ministry and WIPO for
(ii) Deputation of MSEs business adoption of suitable measures for
delegations to other countries for the protection of interests of MSMEs
103
MSME
(including tiny enterprises) in the (vii). With the support of this Ministry
field of Intellectual Property Rights under International Cooperation
(IPRs). Scheme, Consortium of Women
Entrepreneurs of India (CWEI)
(iii). The Indian Institute of Entrepreneur- organized “Shashwat” International
ship (IIE), Guwahati took a Business Women Entrepreneurs Conference
Delegation to Japan and Korea during 3rd and 4th April, 2007 in
during 10-17 March, 2007 for Delhi on the theme of South Asian
exploring the possibility of future Regional Plan of Action. A total of
business opportunities for North 30 participants from Syria and 30
Eastern region entrepreneurs in from different SAARC countries and
the markets of the two countries national participants attended the
through possible market linkages Conference.
and possibilities of tie-ups between
industry associations of North (viii). With the support of this Ministry
Eastern Region and industry / trade under International Cooperation
associations in Japan and Korea. Scheme, Khadi & Village Industries
The Delegation was supported Commission (KVIC) participated in
under the International Cooperation the Natural and Organic Products,
Scheme of this Ministry. Europe, 2007, organised at Olympic,
London during April 15-16, 2007. In
(iv). Dr. Chandrapal, the then Secretary this event, India’s products in natural
of the Ministry, Shri Pravir Kumar, and organic sectors were exposed
Joint Secretary (SSI) and Shri before the prospective buyers at
H.P. Kumar, CMD, NSIC visited UK. This was expected to increase
Tashkent, Uzbekistan during 10-12 export potentiality of micro level
April, 2007 for attending the 2nd units of KVI sector and SSI units of
Joint Committee Meeting (JCM) North East Zone.
between Government of India
and Government of Uzbekistan (ix). The Global Conference on
in the sphere of support to small “Enhancing the Role of Small &
and private entrepreneurs under Medium-sized Enterprises (SMEs)
Agreement signed on 5.4.2005. in Global Value Chains”, in Tokyo,
Japan, organized by O.E.C.D.
(v). The Secretary (MSME) visited in association with Japanese
UNIDO Headquarters at Vienna, Authorities during 31st May and 1st
Austria on 19.4.2007 for meeting June, 2007 was attended by the
UNIDO officials and discussing Secretary (MSME), CMD, NSIC and
areas of mutual cooperation for the Principal Director, NI-MSME.
promotion and development of small
enterpries. (x). A business delegation of Indian
SMEs, and led by Shri Pravir Kumar,
(vi). Secretary level delegation of small Joint Secretary, Ministry of Micro,
enterprises promoted by NSIC Small and Medium Enterprises
participated in the 71st International participated in the National Hardware
Handicrafts Fair at Florence, Italy Show, Orlando, USA during 7th-
organized by ITPO during 19.4.2007 12th May, 2007 under the auspices
to 22.4.2007. of the NSIC Limited.
104
(xi). The Ethiopian Minister of Urban 2007, Kigali (Rwanda) from 23rd
Development and Small Scale August to 3rd September 2007,
Industries, Dr. Kassu Yilala met the being explored.
Hon’ble Minister of Micro, Small and
Medium Enterprises, Shri Mahabir (xvi). A meeting between Tunisian
Prasad on 30.5.2007 at New Delhi Ambassador and Shri Pravir Kumar,
for discussing the areas of mutual Joint Secretary, MSME was held on
cooperation. 19.9.2007 at New Delhi for discussing
the modalities of operationalization
(xii). A delegation comprising the of the Cooperation Agreement in
Secretary (MSME), Addl. the field of Small and Medium-
Development Commissioner sized Enterprises earlier signed
(MSME) and CMD, NSIC visited on 8.2.2007 between Government
Suzhou, P.R. China from 28th to of India and Government of the
30th June 2007 for attending the 3rd Republic of Tunisia.
China-India Trade and Investment
Conference (CITIC-2007) 2007 and (xvii). Dr. Chandrapal, the then Secretary,
holding discussions with Chinese MSME participated in the 16th
Government officials at Shanghai. Session of the Indo-German Joint
Commission on Industrial and
(xiii). A meeting between a delegation Economic Cooperation held at Berlin
from Cameroon and officials of the during 18-19 September, 2007.
Ministry of Micro, Small and Medium
Enterprises, was held on 5th July, (xviii). With support of the Ministry under
2007 at Udyog Bhavan, New Delhi International Cooperation Scheme,
for discussing areas of cooperation the National Small Industries
for promotion of MSME Sector. Corporation (NSIC) participated in
the 2nd Tri-nations Summit on Small
(xiv). A delegation led by Mr. Rosalio Business held in Belo Horizonte, Brazil
Rodriguez, Corporate Director of during 17-18 September, 2007. The
the Bimbo Group, Mexico met Dr. occasion also saw a Memorandum of
Chandrapal, the then Secretary, Understanding being signed between
MSME on 1.8.2007 in Udyog NSIC and Servicio Brasileiro as Micro
Bhavan, New Delhi for discussing E Pequnas Empresas (SEBRAE) of
possibilities of cooperation in MSME Brazil.
sector, between the two.
(xix). Shri Mahabir Prasad, the Hon”ble
(xv). A meeting between H.E. Lt. General Minister (MSME) accompanied by
Kayumba Nyamwasa, Ambassador Shri Jawhar Sircar, AS&DC(MSME),
of the Republic of Rwanda in India Shri Pravir Kumar, Joint Secretary,
and the then Secretary, MSME, Dr. MSME, Shri H.P. Kumar, CMD, NSIC
Chandrapal held on 3.8.2007 at and Shri M.K. Jha, APS to the Hon’ble
New Delhi saw the mutual areas Minister visited Beijing, China during
of cooperation in the MSME sector 29-31 October, 2007 for attending
being discussed and the possibility Asia-Europe Meeting (ASEM) Small
of participation by the Ministry in and Medium Enterprises (SMEs)
the 10th Rwanda International Fair Ministerial meeting.
105
MSME
(xx). The Meeting between Parliamentary MSME was held on 14.11.2007 for
Secretary of State in the German discussing areas of cooperation
Federal Ministry of Economics & in MSME sector between the two
Technology, Mr. Hartmut Schauerte countries.
and Dr. Chandrapal, the then
Secretary, MSME held on 8.10.2007 (xxiii) Dr. Chandrapal, the then Secretary,
at New Delhi saw the discussions Ministry of Micro, Small and Medium
being held on probable areas Enterprises visited China during
of cooperation between the two 28th to 30th December, 2007 for
countries for promotion of MSME addressing a seminar on “Business
Sector. Opportunities between India and
China”, organized by India China
(xxi). Mr. Carlos Agontinho do Rosario, Trade Centre and for leading a
High Commissioner of Mozambique delegation of Indian exhibitors to
in India made a courtesy call China for participation in the “South
upon Dr. Chandrapal, the then Asian Countries Commodities Fair”.
Secretary, MSME on 18.10.2007
for exploring the possibilities of (xxiv) Dr. Chandrapal, the then Secretary,
mutual cooperation in MSME sector MSME alongwith CMD, NSIC visited
between the two countries. Canada during 21st to 24th January,
2008 for leading the National Small
(xxii) A meeting between H.E. Ms. Industries Corporation business
Elizabeth Thabethe, Deputy Minister delegation of Small Enterprises
of Trade and Industry, Republic from India under the International
of South Africa and Shri Mahabir Cooperation Scheme.
Prasad, the Hon’ble Minister,
106
Chapter X
PRIME MINISTER’S ROZGAR
YOJANA (PMRY) AND SCHEME OF
FUND FOR REGENERATION OF
TRADITIONAL INDUSTRIES (SFURTI)
10.1 INTRODUCTION youth in setting up micro level self-employ-
ment ventures. Initially, the PMRY was im-
10.1.1 In addition to the schemes/ pro- plemented only in urban areas of the coun-
grammes being implemented by the Khadi try. Since 1994-95, it is being implemented
and Village Industries Commission (KVIC) in both urban and rural areas. The target of
and Coir Board for the development of agro the Yojana for 2007-08 is setting up 2.75 lakh
and rural industries based on local raw units thus generating an estimated 4.125 lakh
materials and skills and for creation of in- additional employment opportunities.
creased employment opportunities in rural
non-farm sector, the Ministry is administer- 10.2.2 An educated (up to VIII standard)
ing two national level schemes viz; Prime unemployed person living in any part of the
Minister’s Rozgar Yojana (PMRY), a credit country is eligible under the Scheme and can
linked subsidy scheme to provide financial apply for assistance to the General Manag-
assistance to less educated and poor unem- er, DIC in the district to which he belongs.
ployed youth in the country; and Scheme of In cases where the applicant belongs to the
Fund for Regeneration of Traditional Indus- cities of Kolkata, Chennai and Mumbai, the
tries (SFURTI) for development of clusters application has to be filed directly with the
in khadi, village and coir sectors with a view Office of the Director of Industries and in the
to make the traditional industries more pro- Office of the Deputy Commissioner of the re-
ductive and competitive and increase the spective zones in case of Delhi.
employment opportunities in both the rural
and semi-urban areas of the country. 10.2.3 The Task Force Committees set up
at district level or the Task Force constituted
10.2 PRIME MINISTER’S ROZGAR under the Scheme at Sub-divisional level/
YOJANA (PMRY) block level, have been entrusted with the
job of scrutinizing the applications and in-
10.2.1 The Prime Minister’s Rozgar Yojana terviewing the applicants. The names of ap-
(PMRY) was launched on 02 October, 1993 plicants approved by Task Force Committee
to assist less educated and poor unemployed are sponsored by District Industries Centres
107
MSME
(DICs) to the concerned bank branches for lecting the viable projects and Training &
sanction of loans. Trainers Manuals have been developed by
the Ministry through Rural Development and
10.2.4 In addition to sponsoring of appli- Self Employment Training Institute (RUDSE-
cations by Task Force Committees(s), bank TI), Karnataka.
branches themselves may also receive ap-
plications directly from the eligible persons 10.2.7 Assistance from States/UTs
under the Scheme. However, such applica-
tions should be sent to sponsoring agencies 10.2.7.1 State/UT Governments may pro-
with their observations on the viability and vide necessary infrastructure support like
bankability of the projects. The sponsoring provision of industrial sites, shops and water
agencies would then formally sponsor such supply on preferential basis to the entrepre-
applications back to the bank branches neurs availing benefit under the Yojana. The
for sanction of loan. The details of eligibil- provision of sites and sheds at concessional
ity norms/ parameters (revised) under this rate to service ventures in urban areas will
Yojana are given at Annexure - 10.1 be essential for their success. Priority in
electric connections and general tax con-
10.2.5 Contingency Funds for Scheme cessions/incentives may also be provided to
Administration
the beneficiaries.
10.2.5.1 Funds for contingency @ Rs. 250/-
per case sanctioned, under the Scheme, are 10.2.8 Monitoring & Guidance for
released to the concerned States/UTs from PMRY
1996-97 onwards. The contingency funds
are meant for utilisation towards meeting ex- 10.2.8.1 The District, being a well-estab-
penditure in administering and supervising lished geographical unit for many State/
PMRY at the DIC level, which includes, in- Central promotional programmes, is the
ter-alia, publicity, organization of workshops, basic unit for implementation of the Prime
motivational and familiarization programmes Minister’s Rozgar Yojana. In all the districts,
for eligible youth. District Industries Centre (DIC) is the imple-
menting agency except in the metropoli-
10.2.5.2 In order to provide greater flexibility tan cities of Kolkata, Mumbai and Chennai
to the States/UTs in utilisation of contingen- where the Directorate of Industries is the
cy funds, the expenditure norms have been implementing agency under the scheme.
modified to include expenditure on training In Delhi, the applications are received in
equipment/models, trainer’s fees, training the Office of the Deputy Commissioner of
course materials, hiring of transport, strength- the respective zones. The field agencies, in
ening the existing infrastructure, etc. consultation with the banks of the respec-
tive areas, are responsible for formulation of
10.2.6 Project Profiles self-employment plans, their implementation
and monitoring under the overall guidance
10.2.6.1 Project Profiles have been pre- of the District PMRY Committee. These
pared for guidance of entrepreneurs in se- agencies are required to formulate location
108
specific plans of action, based upon realistic 10.2.11 Monitoring and Guidance at
demand assessment for various activities. Government of India Level
10.2.9 Monitoring and Guidance at 10.2.11.1 The Prime Minister’s Rozgar Yo-
District Level jana is being monitored at the Central Gov-
ernment level by the High Powered Commit-
10.2.9.1 The Yojana is being monitored and tee on PMRY under the Chairmanship of the
guided at district level by the District PMRY Secretary (MSME). The last review meeting
Committee under the Chairmanship of Dis- was held on 16 July 2007, besides subse-
trict Collector/Deputy Commissioner. The quent review(s) by the Secretary (MSME) in
Committee is required to meet at least once different States during the period.
in a month and send monthly progress report
in the prescribed proforma to the Directorate 10.2.12 CUMULATIVE STATUS OF PROG-
of Industries of the concerned State/UT . RESS UNDER PMRY DURING X
PLAN And 2007-08
10.2.10 Monitoring and Guidance at
State/UT Level
10.2.12.1 The details of applications sanc-
tioned for financial assistance and loans
10.2.10.1 The monitoring and guidance for disbursed and credit flow under PMRY
the Prime Minister’s Rozgar Yojana at State/ during X Plan and for the year 2007-
UT level is undertaken by the State/UT
08 (up to September 2007) are given in
PMRY Committee under the Chairmanship
Table 10.1
of the Chief Secretary.
TABLE - 10.1: Details of Targets, Applications Received, Cases Sanctioned/Disbursed: PMRY
(As reported by RBI)

Year Target (No.) Applica- Cases Sanctioned Cases Disbursed
tions No. Amount No. Amount
Received (Rs. crore) (Rs. crore)
(No.)
2002-03 220000 414001 228031 1497 190521 1198
2003-04 220000 436679 264012 1679 219444 1368
2004-05 250000 491324 298003 1923 248264 1543
2005-06 250000 498751 318095 2055 273066 1701
2006-07* 255000 494257 313791 2036 261236 1632
Total 1195000 2335012 1421932 9190 1192531 7442
2007-08 275000 182664 82118 393 47061 224
(up to Sept.
2007)
*Provisional
109
MSME
10.2.12.2 The State-wise estimated employ- of some of the important findings of these
ment opportunities generated under PMRY three rounds of evaluation indicates:
during X Plan are given at Annexure –10.2
l The share of SC/STs as well as
10.2.13 BUDGETARY ASSISTANCE OBCs in the Scheme has steadily
improved. The proportion of SC/STs
10.2.13.1 The Central Government assists improved from about 12 per cent in
the entrepreneurs through capital subsidy the first round to 13 per cent in the
and provides funds to States for entrepre- second and further to 21 per cent in
neurial development, contingencies, etc. The the third round. Similar improvement
details of budget allocations and expenditure has also been observed in respect of
incurred under the Scheme during X Plan and the share of OBCs. However, there
during the year 2007-08 are given in Table has not been much improvement in
10.2 the share of women beneficiaries
TABLR - 10.2: Budget Allocation and Funds under the Scheme.
Released : PMRY
l The average amount of loan dis-
( Rs. crore)
bursed has been increasing. It was
Year Budget Funds Released
Alloca-
Rs. 57,000 in the second round and
For Sub- For EDPs Total
tion sidy
Rs. 64,000 in the third round.
2002-03 169.00 152.55 15.55 168.10 l The employment generation was
2003-04 169.00 147.63 20.20 167.83 higher in the first round at 2.5 per
2004-05 218.90 190.48 27.69 218.17 unit. In the second and third rounds,
2005-06 273.46 251.36 21.11 272.47 it is found to be around 1.95 per
2006-07 252.60 228.82 19.69 248.51 functioning unit.
Total 1082.96 970.84 104.24 1075.08
l The proportion of rural beneficiaries
2007- 320.00 265.60 29.40 295.00
08* has come down from 49.9 per cent
*Up to December 2007 in the second round to 39.1 per cent
10.2.14 EVALUATION STUDIES OF in the third round.
PMRY l Assets have been created in 89.7
per cent of the cases where loans
10.2.14.1 Three rounds of evaluation (first were disbursed.
round conducted in 1996-97 for the pro-
gramme years 1993-94 and 1994-95, sec- l About 36.4 per cent of the beneficia-
ond round conducted in 2000-01 for the ries were repaying the loan install-
programme years 1995-96 to 1997-98 and ment on time.
the third round conducted during 2005-06
l The average rate of recovery of
for the programme years 1998-99 to 2001-
02) of the PMRY have been undertaken by loans was 29 per cent in the second
the Institute of Applied Manpower Research round. It improved somewhat at 38
(IAMR), New Delhi. A comparative position per cent in the third round.
110
10.2.15 Initiatives Taken For l Seminars to be held at the level of

Strengthening Pmry each district for creating awareness
of PMRY in the area in the form of
10.2.15.1 Based on the recommendations pre-selection motivational cam-
of the Group (June 2006) constituted un- paign. A resolution be adopted by
der the Chairmanship of the Adviser (VSE), each and every Gram Panchayat
Planning Commission to review the design for giving wide publicity and spread-
and implementation of the Yojana, some im- ing awareness about the Scheme in
portant components, viz; enhancement in their respective jurisdictions.
the family income ceiling, project cost, sub-
l All the members of the Task Force
sidy, training cost reimbursement, etc. have
Committee would be collectively
been revised in the guidelines of the PMRY
responsible for selection of benefi-
with effect from 2007-08.
ciaries. This would ensure that the
Bank Manager alone is not held re-
10.2.15.2 In the quarterly schedule fixed for
sponsible for the non-performing as-
the year 2007-08, applications to the extent
sets if any, that could arise out of the
of 125 per cent of the target are targeted to
loans extended under PMRY to the
be sponsored by the end of the third quar-
beneficiaries.
ter (100 per cent by the end of the second
quarter), so that loans could be sanctioned l No collateral shall be insisted for
in 90 per cent of the sponsored cases by the PMRY loans upto Rs. 5 lakh.
end of the third quarter (100 per cent by the
end of 4th quarter). The quarterly schedule l SC/ST and beneficiaries from minor-
further prescribes that loans would be dis- ity communities should be targeted
bursed in 75 per cent cases by the end of in such a manner that they are ben-
the third quarter and the loan disbursement efited, at least, in proportion to their
of the entire target of 100 per cent cases population in each District/State.
would be achieved by the end of 4th quar-
l Of the total target for each State/UT,
ter. The RBI has also issued instructions to
women beneficiaries should consti-
all implementing banks reiterating the above
tute at least 30 per cent.
decision of the Government.
l Preference may be given to devel-
10.2.15.3 To improve the success rate of op clusters specializing in specific
eligible applicants, a new concept of pre- products at the time of selection of
motivational campaign has been introduced PMRY beneficiaries.
w.e.f. 2007-08. Under this programme, State/
l According to the findings of the eval-
UTs are allowed reimbursement of cost of
counseling and guiding the applicants @ uation studies of PMRY, the ratio of
Rs.200/- per applicant, for 125 per cent of applications received to the targets
the allocated target. Besides, a number of was low owing to inadequate public-
operational guidelines have been issued to ity of the scheme. As such aggres-
make this Yojana more effective which inter- sive publicity campaigns have been
alia include: asked to be undertaken through
111
MSME
media like radio, television, cinema clusters, with the active participation
slides and distribution of pamphlets, by the local stakeholders that can
in addition to pre-selection motiva- help continuous undertaking of de-
tional campaigns. velopment initiatives by themselves;
and
10.3 SCHEME OF FUND FOR RE-
GENERATION OF TRADITION- Ø building up innovative and tradi-
tional skills, improved technologies,
AL INDUSTRIES (SFURTI)
advanced processes, market intelli-
gence and new models of public-pri-
10.3.1 In pursuance of the declaration in the vate partnerships, so as to gradually
National Common Minimum Programme of replicate elsewhere similar models
the present Government and that of the Fi- of cluster-based regenerated tradi-
nance Minister in his Budget Speech of 2004- tional industries.
05, announcing the setting up of a Fund for
10.3.3 SFURTI is a Central Scheme, and is
Regeneration of Traditional Industries with
being implemented by the Ministry (erstwhile
an initial allocation of Rs. 100 crore, the Min-
Ministry of Agro & Rural Industries) without
istry launched a scheme titled “Scheme of any share of financial contribution by the
Fund for Regeneration of Traditional Indus- State/UTs.
tries (SFURTI)” for development of around
100 clusters in khadi, village and coir sec- 10.3.4 The following support measures are
tors with a total cost of Rs. 97.25 crore over planned to be taken up in the selected clus-
a period of 5 years (beginning 2005-06) with ters:
a view to make these industries more pro-
ductive and competitive and increase the l Replacement of charkhas and looms
employment opportunities in both the rural in khadi sector.
and semi-urban areas of the country. The
Scheme covers an estimated 50,000 benefi- l Setting up of Common Facility Cen-
ciary families. tres (CFCs).
l Development of new products, new
10.3.2 The objective of SFURTI is to estab- designs for various khadi and vil-
lish a regenerated, holistic, sustainable and lage industry (VI) products, new/im-
replicable model of integrated cluster-based proved packaging, etc.
development of traditional industries in KVI l Market promotion activities.
and coir sectors. This will primarily mean:
l Capacity building activities, such as
Ø more competitive traditional in- exposure visits to other clusters and
institutions, need-based training,
dustries which are market-driven,
support for establishment of cluster
productive, profitable and provide
level networks (industry associa-
sustained employment for the par- tions) and other need based sup-
ticipants; port.
Ø strengthened local socio-economic l Other activities identified by the Im-
governance system of the industry plementing Agency (IA) as may be
112
necessary for the development of 10.3.8 The Cluster Development Executives

the cluster as part of the diagnostic (CDEs) have been appointed exclusively for
study and included in the Annual Ac- each cluster and are located in the cluster on
tion Plan for the cluster. full time basis and responsible for implemen-
10.3.5 KVIC and Coir Board are the Nodal tation of the Scheme in the assigned clus-
Agencies (NAs) for implementation of the ter. The CDEs have to undergo prescribed
scheme and also responsible for holding training in cluster development methodology
and disbursing funds to the identified Imple- to be organized by the NA through the TA.
menting Agencies (IAs) and monitoring of The responsibilities of CDEs include con-
the Scheme under the overall supervision ducting the diagnostic study, preparing and
of the Scheme Steering Committee (SSC). implementing the annual action plans of the
The Secretary (MSME) is the Chairman of cluster, promoting linkages with institutions,
SSC and representatives of the Planning building the local governance framework,
Commission, State Bank of India, Indian etc.
Bank Association and National Bank for Ag-
riculture and Rural Development (NABARD) 10.3.9 By the end of December 2007, 124
are the members of SSC. clusters (34 – khadi, 64 - village industries
and 26 – coir) covering all the States have
10.3.6 Implementing Agencies (IAs) under been approved by the SSC for their develop-
SFURTI are non-Government organizations ment under SFURTI. The State wise details
(NGOs), institutions of the Central and State of clusters are given at Annexure – 10.4.
Governments and semi-Government institu- The other activities for development of clus-
tions with suitable expertise which undertake ters like consent of State Government, train-
cluster development. Generally, one IA has ing of NAs, IAs, CDEs, etc., diagnostic study
been assigned only one cluster. The selec- report and annual action plan, etc. in most of
tion of IAs, based on their regional reputa- the cases have been completed. It is expect-
tion and experience of working at the grass- ed that a good number of clusters approved
root level, has been done by the NAs, with under SFURTI will be operationalised by the
approval of SSC. end of the current financial year.
10.3.7 Under this scheme, 18 reputed na- 10.3.10 The release of funds under this
tional level institutions with expertise in clus- scheme will be cluster specific. The funds
ter development methodology have been are released directly to the Nodal Agencies,
appointed as Technical Agencies (TAs) (An- which are also responsible for holding and
nexure 10.3) to provide technical support to disbursing the funds, on receipt of utilization
the NAs and the IAs. The responsibilities certificate and depending on actual physi-
of the TAs also include assisting the NAs in cal progress. The funds for development of
identification of clusters, conducting train- clusters are kept in a separate account by
ing of the Cluster Development Executives the NAs which will be audited. The details of
(CDEs) and other officials of the IAs and the funds released to NAs since inception of
NAs, validation of cluster action plans, moni- this Scheme and funds earmarked for 2007-
toring and evaluation, etc. 08, are given in Table 10.3
113
MSME
TABLE - 10.3: Funds Released: SFURTI sides providing specific professional training
(Rs. crore) on cluster development to Nodal Agencies,
Year KVIC Coir Board Total IAs and exposure to Technical Agencies on
2005-06 1.12 0.38 1.50 the specific needs of these sectors. Obtaining
2006-07 19.03 6.50 25.53 consent of State Governments and prepara-
2007-08* 3.44 3.25 6.69
tion of diagnostic study reports, thereafter, re-
(21.00*) quired some special efforts and time. Almost
*RE all the clusters are now in a take off stage and
7 clusters in KVI sector have already been
launched. All coir clusters are ready to be op-
10.3.11 SFURTI is the first organized and erationalised soon. The benefits are expected
systematic attempt at introducing cluster to start flowing from 2008-09 with the installa-
based development approach in rural and tra- tion of equipment and availability of other en-
ditional sectors of KVI and coir. This approach visaged technical/non-technical support. The
required considerable efforts at identification pace of expenditure under the Scheme is, ac-
and short listing of clusters, IAs and CDEs be- cordingly, expected to pick up from 2008-09.
114
Chapter XI
ACTIVITIES IN THE NORTH EASTERN
REGION
11.1 NORTH EASTERN REGION public sector enterprise, statutory bodies
and autonomous organisations, namely,
11.1.1 The North Eastern Region (NER), Micro, Small and Medium Enterprise-
consisting of Assam, Arunachal Pradesh, Development Organisation (MSME-DO),
Manipur, Mizoram, Meghalaya, Nagaland, the National Small Industries Corporation
Tripura and Sikkim has been bestowed Ltd. (NSIC), the Khadi and Village Industries
with abundant natural resources. These Commission (KVIC), the Coir Board and three
resources can be profitably utilized for all national level entrepreneurship development
round socio-economic development of the institutes particularly, Indian Institute of
region. Entrepreneurship (IIE), Guwahati.
11.2 ACTIVITIES OF THE MINISTRY 11.3 PERFORMANCE OF THE MSE

IN NORTH EASTERN REGION SECTOR IN NE REGION
11.2.1 The Ministry of MSME is actively 11.3.1 A statement showing estimated number
promoting the development of MSMEs in the of MSE units, fixed investment, production and
NER through the programmes and schemes employment State-wise in NER for the year
being implemented by its attached office, 2006-07, are given in Table 11.1
TABLE - 11.1: Estimated Number of MSE Units, Fixed Investment, Production and Employment in NER
Name of the State No of Units Fixed Investment Production Employment

(Rs. crore) (Rs crore) (In numbers)
Sikkim 474 14 62 1774
Arunachal Pradesh 1578 42 97 5178
Nagaland 19024 601 755 91032
Manipur 57171 428 984 162667
Mizoram 14335 167 289 33383
Tripura 29141 384 644 68147
Meghalaya 28591 202 673 88418
Assam 235576 1451 6864 530497
Total 385890 3289 10368 981096
115
MSME
11.4 BUDGETARY SUPPORT 11.6 ACTIVITIES OF THE NATIONAL

SMALL INDUSTRIES CORPO-
11.4.1 As per the policy of the Government RATION (NSIC) LTD. IN NER
of India, 10 per cent of total plan budget has
been earmarked for NER for implementation 11.6.1 NSIC has a network of offices in
of various Plan schemes of the Ministry. North Eastern Region. This includes branch
During 2007-08, out of total plan outlay of office at Guwahati (Assam) and sub-offices
Rs. 1690.25 crore, outlay earmarked for at Imphal (Manipur), Dimapur (Nagaland),
NER was Rs. 165.05 crore. Itanagar (Arunachal Pradesh), Shillong
(Meghalaya) and Agartala (Tripura). Besides,
11.5 ACTIVITIES OF MSME-DO IN NSIC has a Demonstration-cum-Training
NORTH EASTERN REGION Centre at Guwahati, which provides training
in technical trades, skill upgradation and
undertakes entrepreneurship development
11.5.1 MSME-DO has MSME-DIs at
programmes. The following activities have
Gangtok, Guwahati, Imphal, Agartala and
been undertaken by NSIC for development
also Branch MSME-DIs at Aizwal, Dimapur,
of the North East Region.
Itanagar, Diphu, Silchar, Tezpur, Shillong
and Tura. There is also a Tool Room and
11.6.2 NSIC organises exhibitions for
Training Centre at Guwahati.
exclusive display of products and handicrafts
from NER in Delhi and other parts of the
11.5.2 The Centre is rendering project country. By participating in such exhibitions,
management services to the state the entrepreneurs/ artisans from NER get
Government of Nagaland for running Mini exposure to the demands/requirements
Tool Room & Training Centre at Dimapur. of domestic market. Besides, in order to
give them exposure to the international
11.5.3 Pursuant to the Government’s policy markets, NSIC takes the products of NER
of earmarking of funds for NER, under the in exhibitions abroad. NSIC also participated
Schemes/Programmes of MSME-DO, an in the International Trade Fair, Guwahati.
outlay of Rs.49.00 crore has been earmarked In addition, in the exhibitions organised by
exclusively for the region, out of which NSIC i.e. Techmart India, North East Expo,
expenditure of Rs. 22.87 crore has already 2006 at New Delhi and Shillong and Trade
been incurred on various developmental Fair at Shillong, more than 300 units from
activities in NER. the region were facilitated participation and
their products displayed.
11.5.4 Residential accommodations at
Guwahati and Aizwal have been constructed 11.6.3 A business delegation from North East
and construction is in progress at Tura was sent to Johannesburg (South Africa)
and Tezpur with the objective to provide consisting of ten entrepreneurs including
residential accommodation to the officers one women entrepreneur in search of project
and staff of MSME-DO posted in NER. profiles and business opportunities.
116
11.6.4 There are a number of skilled artisans footwear and accessories, food processing,
in the region engaged in different trades like broom stick manufacturing, bamboo products
Bamboo, Broom stick, Brass & Bell Metal, etc. which are relevant for the region.
Kouna Weaving, Fruit Processing etc. NSIC
has taken up two clusters and imparted 11.6.9 NSIC has conducted 5 vocational/
training to the artisans especially in design and skills training courses, sponsored by the
production by adopting improved technology. National Scheduled Caste Development
Corporation, for Scheduled Caste
11.6.5 In the Nalbari district of Assam, unemployed educated youth from Assam.
more than 1000 artisans are engaged in
manufacturing different bamboo products. 11.7 KVI PROGRAMMES IN NORTH
But due to inferior quality of their products, EASTERN STATES
the marketability was found to be poor. By
imparting the cluster training, NSIC has 11.7.1 Khadi and Village Industries
trained 135 artisans in the trade of Bamboo Commission (KVIC) has established a Zonal
venation, blind manufacturing and Sital Office at Guwahati and other field offices
patty bags manufacturing which have got in all the NE States. KVI programmes are
tremendous potentiality in the national as being implemented in these areas through
well as international markets. State KVI Boards, registered institutions,
cooperative societies and entrepreneurs.
11.6.6 For better design and manufacturing
of different Kouna products, like cushion, 11.7.2 The rural industries like, pottery,
mattress, in the Imphal district of Manipur, beekeeping, processing of cereals and
NSIC has trained a large number of women pulses, fibre, fruit & vegetable processing
artisans by inviting different designers, for industries, soap; activities like carpentry and
the purpose. blacksmithy and also khadi and polyvastra,
are generally being set up in hilly and
11.6.7 Under Small Enterprise Establishment backward areas of NER. The programmes of
Programme (SEEP), NSIC has organised KVIC for rural industrialisation are expected
10 training programmes, training more than to augment the earnings of artisans, weavers,
370 participants in NER. spinners and individual entrepreneurs along
with output of high quality KVI products from
11.6.8 NSIC through its Technical Services this region.
Centre (NTSC), Howrah and Branch Office
Guwahati is conducting various vocational 11.7.3 Over the years, there has been
training courses for the trainees from NER. considerable increase in production and
Throughthesetrainingprogrammes,vocational/ employment in the KVI sector in the NER. The
skills training is being imparted in the trades achievements made in terms of production
like - hospitality and tourism management, and employment in the KVI sector during
catering and baking technology, TV/Mobile previous year and year under report are
Phone Repair, computer hardware, leather given in Table 11.2
117
MSME
TABLE - 11.2: KVI Production, Sales and Employment in North Eastern Region
State Productuion (Rs. Lakh) Sales (Rs. Lakh) Employment (In lakh
persons)
2006-07 2007-08* 2006-07 2007-08* 2006-07 2007-08*
Arunachal 1925.21 1447.44 2914.34 2151.92 0.07 0.08
Pradesh
Assam 30328.99 22802.34 47337.39 34953.46 2.48 2.65
Manipur 7336.19 5515.59 7557.24 5580.19 0.66 0.71
Meghalaya 6423.52 4829.42 9003.30 6647.95 0.35 0.37
Mizoram 14239.61 10705.81 20220.03 14930.27 0.64 0.68
Nagaland 7747.68 5824.96 10077.24 7440.94 0.44 0.47
Sikkim 2336.86 1756.93 4819.05 3558.34 0.19 0.20
Tripura 5470.01 4112.53 6815.19 5032.27 0.45 0.48
Total 75808.07 56995.02 108743.78 80295.34 5.28 5.64
*Up to December 07
11.7.4 To cater to the needs of skill entrepreneurs from the NER. Accordingly,
development in NER, Multi-Disciplinary 30 per cent margin money, as against 25 per
Training Centres (MDTCs) at Kumarikata cent in the case of beneficiaries from general
(Assam) and Doimukh (Arunachal Pradesh) category, is provided to the entrepreneurs
are being run by KVIC. In addition, training from this region. For setting up of projects in
centres are being run by State KVIBs at NER, own contribution from entrepreneur is
Roha, Marigaon (Assam), Zamabank, only 5 per cent of the project cost, as against
Aizawal (Mizoram) and Kohima (Nagaland). 10 per cent in other areas.
Besides, 7 EDP Training Centres are in
operation in NER. The beneficiaries from
11.8.2 Special attention has been given for
NER are provided second class Rail fare
implementation of REGP in NER by providing
for attending training programmes and also
additional funds for conducting workshops
daily allowance during the training period. A
and awareness camps. 30 exhibitions for
total of 7986 persons were trained during the
year 2006-07 while 2045 persons have been display and sale of products manufactured by
trained in 2007-08 (up to December 2007) in REGP entrepreneurs, were organised in NER
this Region including Sikkim. during the year (up to December 2007).
11.7.5 In NER, 136 exclusive sales outlets 11.8.3 During the Xth Plan, 12,778
are functioning for promotion of KVI products. projects (involving margin money grant of
Rs. 13809.79 lakh), generating 2,47,125
11.8 RURAL EMPLOYMENT GEN- additional employment opportunities, were
ERATION PROGRAMME set up in NER under REGP.
(REGP) IN NER
11.8.4 During 2007-08 (up to December
11.8.1 Under REGP, concessional facilities 2007), the number of projects set up in
are extended to the weaker sections and the the NER along with amount of Margin
118
Money (MM) utilised and employment (iv) To and fro transportation charges
generated against the target set under the are provided to institutions and
Scheme, are given in Table 11.3 REGP entrepreneurs from NER
Table - 11.3: Performance Under REGP During 2007-08 in NER
S. States Target for 2007-08 Achievement (up to 31.12.07)

No. No. of M.M. Empl. No. of M.M. Empl.
Projects (Rs.lakhs) (No.) Projects (Rs. lakhs) (No.)
1. Arunachal 116 132.96 2214 55 99.09 621
Pradesh
2. Assam 2344 2678.38 44602 1703 1875.68 31421
3. Manipur 209 238.55 3973 21 21.45 157
4. Meghalaya 342 391.07 6513 76 121.03 821
5. Mizoram 682 797.38 12806 328 402.99 5597
6. Nagaland 283 322.90 5377 194 81.12 1343
7. Sikkim 122 138.85 2312 24 48.70 168
8. Tripura 246 281.57 4689 77 87.81 1968
TOTAL 4344 4981.66 82486 2478 2737.87 42096
M.M - Margin Money
11.8.5 The following new initiatives have participating in the exhibitions,

been taken for promotion of KVI melas, etc, organised outside NER.
activities in NER:
(v) 10 per cent space is reserved in all
(i) To increase the number of khadi Departmental Khadi Gramodyog
institutions in North Eastern States, Bhawans for the products of the
KVIC has removed the ban on institutions from NER for marketing
registration of new khadi institutions of KVI products.
located in the NER.
11.9 ACTIVITIES OF THE COIR
(ii) To improve the technology used in BOARD IN NER
the KVI sector as also the quality of
products, the KVIC has entered into
11.9.1 The Coir Board is adopting a
an arrangement with IIT; Guwahati as
multifarious approach for the development of
part of its nation-wide programme for
having S&T interfaces with reputed coir industry in NER for enhancing awareness
National level technical institutes. of coir and coir products. As a result, demand
of coir and coir product is slowly growing. All
(iii) The Indian Institute of the infrastructural facilities are offered by the
Entrepreneurship (IIE), Guwahati Board to new entrepreneurs for setting up
has been recognised as the Nodal
of coir industrial units. Traditional as well as
Agency for NER with the objective
innovative products such as coir geo-textiles
to implement and monitor REGP
projects being set up in the Region and coir-ply, which have special importance
and to impart training to the in the topography of the North-East, are also
beneficiaries. being introduced. Some of the important
119
MSME
programmes being carried out in this region subject to a ceiling of Rs. 15,000/-
by the Board are as follows: per beneficiary (as compared to
Rs.12,500/- per beneficiary for rest
l EDPs and Entrepreneurship of the country).
Awareness Programmes for NGOs l Margin Money Contribution: The
with special emphasis on marketing margin money contribution from the
of coir products. beneficiaries varies from 5 per cent
l New Enterprise Creation Training to 12.5 per cent of the project cost so
Programme-cum-Exposure Tours. as to make the total of subsidy and
margin money contribution equal to
l Seminars on application of Coir geo- 20 percent of the project cost in NER
textiles. (as compared to 5 per cent to 16.25
per cent for rest of the country).
l Participation in Fairs and Exhibitions
in NER. l Contingency Funds: The funds for
contingency are released to the
l Publicity programmes through State/UTs @ Rs. 250/- per beneficiary
electronic and print media on who has been sanctioned loan.
opportunities offered by coir
industry. 11.10.2 The State-wise employment
opportunities generated under this Yojana
l Demonstration of new products
like disaster management houses, in NER during 2006-07 and 2007-08 as
wood-substitutes etc. relevant to reported by the Reserve Bank of India (RBI)
NER. are given in Table 11.4
Table 11.4 Employment Generation Under
l Research and Development PMRY in NER
projects in collaboration with local (No. of persons)
institutions. S.No State 2006-07 2007-08*
1 Arunachal 491 0
l Free distribution of Coir Matting to
Pradesh
Schools in NER. 2 Assam 6797 686
3 Manipur 282 87
11.10 PRIME MINISTER’S ROZGAR 4 Meghalaya 683 24
YOJANA (PMRY) 5 Mizoram 1116 0
6 Nagaland 1467 6
7 Tripura 2856 1752
11.10.1 The following special relaxations are 8 Sikkim 57 14
available under PMRY for the beneficiaries *up to September 07.
from NER:
11.11 SCHEME OF FUND FOR RE-
l Eligible Age Limit: The eligible age GENERATION OF TRADITION-
limit of beneficiaries from North Eastern AL INDUSTRIES (SFURTI)
States is 18-40 years, as compared to
18-35 years for rest of the country. 11.11.1 Out of 124 clusters (34 – khadi,
l Subsidy: The subsidy is provided 64 - village industries and 26 – coir), 17
@ 15 per cent of the project cost clusters from NER have been approved
120
under SFRURTI. For providing technical conducted three training programmes on

support to these clusters, two Technical Project Identification & Selection; Business
Agencies i.e., North Eastern Industries Development Service Providers and Micro-
Consultants Ltd., Tripura and Indian Institute finance & Management with 73 participants,
of Entrepreneurship, Guwahati, have been sponsored by the Ministry of Development
identified. of North – Eastern Region; Government of
India. Furthermore, the Institute continued
11.12 E N T R E P R E N E U R S H I P its efforts for encouraging participants from
DEVELOPMENT PRO- NER to its different training programmes
GRAMMES (EDPs) AND SKILL and other activities.
DEVELOPMENT PROGRAMMES
(SDPs) IN NER 11.13 RAJIV GANDHI UDYAMI
MITRA YOJANA ( A SCHEME
11.12.1 In addition to programmes / schemes FOR PROMOTION AND
of MSME-DO, NSIC, KVIC and Coir Board, HANDHOLDING OF MSMEs)
relating to EDPs and SDPs in NER, three
national level entrepreneurship development
11.13.1 While the details of the Scheme
institutes set up by the Ministry, particularly,
are given in Chapter 2, the beneficiaries
Indian Institute of Entrepreneurship (IIE),
from NER are not required to contribute Rs.
Guwahati, are also undertaking training
programmes for skills and entrepreneurship 1000/- towards Handholding Charges, which
development in NER. The activities of IIE, is required by the beneficiaries from general
Guwahati in this regard are detailed in Chapter category. The contribution of beneficiaries
7 relating to ‘Training and Entrepreneurship from NER is provided to ‘Udyami Mitras’ as
Development’. Besides, NIESBUD, Noida grants by the Government.
121
Chapter XII
ACTIVITIES AND PROGRAMMES FOR
WOMEN IN MSME SECTOR
12.1 ROLE OF THE MINISTRY generation programmes being implemented

by the Ministry, namely, Rural Employment
12.1.1 The role of the Ministry of Micro, Small Generation Programme (REGP) and Prime
and Medium Enterprises (MSME) is primarily Minister’s Rozgar Yojana (PMRY), some
to assist the States/Union Territories in their concessions have been provided for women
efforts to promote growth and development beneficiaries. Besides, the Coir Board is
of MSMEs. The main focus of the schemes/ implementing the Mahila Coir Yojana which
programmes undertaken by the organisations is a women oriented self-employment
of the Ministry is thus to provide/facilitate programme.
provision of a wide range of services and
facilities required for accelerating the growth 12.2 TRAINING OF WOMEN
of MSMEs. The schemes/programmes ENTREPRENEURS
generally focus on capacity building in State/
Regions; nevertheless, there are a few 12.2.1 The industrial policies of the
schemes/programmes, which are individual Government announced from time to
beneficiary oriented. While, there are no time, have laid considerable emphasis on
specific reservations for women, in the latter, promotion of women entrepreneurship,
there are some concessions/incentives particularly among first generation women
available under these programmes for the entrepreneurs, through various training
benefit of women entrepreneurs. and support services. Special attention
is being given by organising exclusive
12.1.2 In respect of entrepreneurship / skill Entrepreneurship Development Programmes
development training programmes, under (EDPs) for women.
the National Awards for Entrepreneurial
Development (Quality Products) and Trade 12.2.2 The Field Institutes of MSME-DO
Related Entrepreneurship Assistance & conduct need based entrepreneurship /
Development (TREAD) Programme for skill development programmes for existing
Women, the necessary guidelines have been and prospective entrepreneurs. During
issued and specific reservation provided for the year 2007-08 (up to December, 2007)
women. Similarly, under two employment approximately 15000 women participated in
123
MSME
these training programmes. The autonomous 12.3 TRADE RELATED ENTRE-

bodies under MSME-DO also conduct various PRENEURSHIP ASSISTANCE
short-term/long-term training programmes in AND DEVELOPMENT (TREAD)
footwear technology, tool and dye-making SCHEME FOR WOMEN
and other allied industries. These bodies
provided training to approximately 3775 12.3.1 The scheme envisages economic
women. No fee is being charged from women empowerment of women through
participants. Besides, MSME-DIs/Br. DIs are development of their entrepreneurial skills in
also giving stipend @ Rs.500/- per month to non-farm activities. The Government’s grants
the participants belonging to disadvantaged up to 30% of the total project cost is provided to
groups including women. the Non-Government Organisations (NGOs)
for promoting entrepreneurship among
12.2.3 In addition to programmes / schemes women. The remaining 70% of the project
of MSME-DO, NSIC, KVIC and Coir Board, cost is financed by the lending agency as
relating to conduct of EDPs & SDPs for benefit loan for undertaking activities as envisaged
of potential women entrepreneurs, three in the project. Further, Government grants
national level entrepreneurship development up to Rs.1 lakh per programme is provided
institutes set up by the Ministry, particularly, to training institutions / NGOs for imparting
Indian Institute of Entrepreneurship (IIE), training to the women entrepreneurs.
Guwahati, are also undertaking training Besides, need-based grants up to
programmes for skills and entrepreneurship Rs. 5 lakh may also be provided to national
development for women. The National level EDIs and other reputed institutions, for
Institute for Entrepreneurship and Small undertaking field surveys, research studies,
Business Development (NIESBUD), NOIDA evaluation studies, designing of training
has conducted seven training programmes modules etc.
exclusively for 227 women participants
during 2007-08. 12.3.2 Under this scheme, proposals
involving grant of Rs. 51.65 lakh to 16
12.2.4 Further, the Ministry has recently NGOs / Institutions, have been approved for
launched ‘Rajiv Gandhi Udyami Mitra benefiting 1700 women.
Yojana’ (a Scheme for Promotion and
Handholding of Micro and Small Enterprises) 12.4 RURAL EMPLOYMENT
to help and facilitate the potential first GENERATION PROGRAMME
generation entrepreneurs in completion of (REGP)
various formalities and tasks necessary for
setting up and operationalisation of their
12.4.1 REGP is a flagship scheme of
enterprises (details given in Chapter-II).
the Government of India for employment
Under this scheme, women beneficiaries are
generation programmes in the unorganised
not required to contribute Rs. 1000/-, which
sector. Though there are no specific
is required by the beneficiaries from general
reservation for women entrepreneurs under
category. The contribution in respect of
this scheme, still there has been substantial
women beneficiaries is provided to ‘Udyami
participation (around 30 per cent) of
Mitras’ as grants by the Government.
women as a result of the promotional
124
efforts undertaken in this regard. In order beneficiaries under PMRY should not be less
to encourage participation of women in the than 30%. Furthermore, in order to facilitate
programmes, the following relaxations are participation of women beneficiaries under
being provided to women beneficiaries: this scheme, the following relaxations are
being provided:
l Capital Subsidy in the form of margin
money is provided at the rate of 30 l Age Relaxation – the upper limit
per cent (for general category it is for women applicants is 45 years,
25 per cent) of the project cost up to as against 35 years for general
Rs.10 lakh and 10 per cent on the category applicants.
balance project cost up to Rs. 25
l Relaxation in residency criteria for
lakh.
married women - the residency
l The borrowers’ contribution is 5 per criterion of last three years is
cent of the project cost in case of applicable for spouse/in-laws in
women beneficiaries while in the case of married women applicants.
case of general category, it is 10 per
cent of the project. 12.5.2 During 2007-08, up to September
2007, under this scheme, 4515 projects of
l Bank finance in the form of loan is 95 women beneficiaries, have been sanctioned.
per cent of the project cost in case
of women and other weaker section
12.6 MAHILA COIR YOJANA
borrowers as against 90 per cent of
the project cost in case of general
12.6.1 Mahila Coir Yojana is a woman
category.
oriented self-employment scheme in the coir
12.4.2 Under this scheme, 3656 projects industry, which provides self-employment
of women entrepreneurs involving margin opportunities to the rural women artisans in
money of (as Government Grant) Rs. regions producing coir fibre. The scheme
6397.99 lakh, have been assisted during envisages distribution of motorised ratts
2007-08 (up to December 2007). . for spinning coir yarn to women artisans
after giving training. Women spinners are
12.5 PRIME MINISTER’S ROZGAR trained for two months in spinning coir yarn
YOJANA (PMRY) on motorized ratt at the Coir Board’s training
centres. A stipend of Rs. 500/- p.m. is also
12.5.1 During 2006-07, the participation of paid to the trainees. The Coir Board provides
women (in terms of employment generation) motorised ratts/ motorised traditional ratts
under PMRY, was 16.5 per cent. Under the at 75% cost subsidy, subject to a maximum
scheme , preference is given to women ceiling of Rs. 7,500/- for motorized ratts and
beneficiaries. While communicating the Rs. 2,925/- for traditional ratts.
targets under the Scheme to the States/
Union Territories and Reserve Bank of 12.6.2 During 2007-08, up to December
India (RBI), standing instructions are issued 2007, under this scheme, 1042 ratts have
for ensuring that the number of women been distributed.
125
Chapter XIII
USE OF OFFICIAL LANGUAGE
13.1 Hindi is the Official Language of the Union Territory Administrations and Central
Union of India and the Government policy Government offices located in regions ‘A’
aims at progressively increasing the use of and ‘B’ were issued in Hindi, to the maximum
Hindi in official work. Effective steps were extent possible. Similarly, efforts were made
taken during the year in the Ministry of Micro, to send letters in Hindi to Central Government
Small and Medium Enterprises to ensure the offices located in region ‘C’ as per the targets
compliance with the Official Language Policy laid down in the Annual Programme. About
of the Government, implementation of the 92 per cent correspondence were made in
Annual Programme and compliance with the Hindi in region ‘A’, 87 per cent in region ‘B’
various orders of the Government of India and 83 per cent in region ‘C’ up to the quarter
on the recommendations of the Committee ending September, 2007.
of Parliament on Official Language.
13.4.2 On 14.9.2007, the Ministry was
13.2 COMPLIANCE WITH THE PRO- awarded the 2nd Indira Gandhi Rajbhasha
award for excellent work done in Hindi
VISIONS OF THE OFFICIAL
during 2005-06.
LANGUAGE ACT, 1963
13.5 SECTIONS SPECIFIED FOR
13.2.1 All documents such as resolutions,
WORKING IN HINDI
general orders, rules, licences, etc., under
Section 3(3) of the Official Language Act and
13.5.1 The sections of the Ministry, notified
all papers laid on the Table of both the Houses
for doing hundred per cent work in Hindi, are
of Parliament were issued bilingually, i.e. in
working satisfactorily.
Hindi and English. General orders meant for
departmental use were issued in Hindi only.
13.6 MONITORING AND INSPEC-
TIONS
13.3 REPLIES TO LETTERS IN HINDI
13.6.1 In order to ensure compliance with the
13.3.1 All letters received in Hindi were Official Language Policy, monitoring is done
replied to in Hindi. through reviewing the quarterly progress
reports. During the year, 12 Sections of
13.4 CORRESPONDENCE IN HINDI the Ministry were inspected, to ensure use
of Hindi and compliance with the Official
13.4.1 Letters to State Governments, Language policy.
127
MSME
13.7 TRAINING OF OFFICIALS October, 2007 in the Ministry. To encourage

and motivate the employees for doing official
13.7.1 All officials of the Ministry have work in Hindi, various competitions like Hindi
already been trained in Hindi Typing and Typing, Hindi Essay Writing, Noting and
Hindi Stenography. Drafting in Hindi, Dictation, General Hindi
etc. were organised. A large number of
13.8 USE OF MECHANICAL AIDS officers and employees participated in these
events with enthusiasm. The messages of
13.8.1 As per the provisions of the Official the Hon’ble Home Minister and Cabinet
Language Act, bilingual mechanical Secretary were circulated in the Ministry
facilities have been provided on mechanical as well as in the attached and subordinate
equipments in the Ministry. Computers offices of this Ministry for information and
and terminals have also been installed with compliance.
facility to work in Hindi.
13.11 USE OF HINDI IN AT-
13.9 COMMITTEES TACHED AND SUBORDI-
NATE OFFICES
13.9.1 To review and accelerate the use
of Hindi in the Ministry, a Hindi Advisory 13.11.1 Micro Small and Medium
Committee has been constituted in the Enterprises-Development
Ministry. Important decisions are taken Organisation (MSME-DO)
by this Committee. Compliance with these
decisions is also ensured at appropriate 13.11.1.1 There is a full-fledged Hindi
levels. Section in MSME-DO to ensure compliance
with the Official Language Policy of
13.9.2 Departmental Official Language the Government and to implement the
Implementation Committee under the directives of the Government of India in
Chairmanship of the Joint Secretary (In- this regard. During this year, 26 Sections
charge Hindi) in the Ministry of Micro, Small
of MSME-DO were inspected to ensure
and Medium Enterprises, has already been
maximum use of Hindi and compliance
constituted.
with the Official Language Policy. During
the Hindi Pakhwara celebrated in MSME-
13.9.3 Quarterly Meetings of these DO from 14th to 28th September, 2007
Committees were organized and important
besides conducting usual competitions,
decisions for use of Hindi in official work
2 new competitions viz; Hindi Dictation
have been taken. Effective steps for ensuring
and Hindi Essay were started for Group D
compliance with these decisions and follow-
employees for the first time which received
up action, have also been taken.
overwhelming response. The Parliamentary
13.10 HINDI MONTH Committee on Official Language also
inspected the Headquarters and some of
13.10.1 Hindi Month was celebrated its subordinate offices during this period.
from 14th September, 2007 to 13th MSME-DO also regularly publishes
128
Laghu Udyog Samachar bilingually for achieve the targets set by the Government,
wider circulation. It has also published the use of Hindi is being progressively
13 advertisement folders in Hindi for increased in NSIC.
spreading awareness of various schemes/
programmes. 13.11.3 Khadi &Village Industries Com-
mission (KVIC)
13.11.2 National Small Industries Cor-
poration
13.11.3.1 During the period under report,
three Hindi Workshops were organized by
13.11.2.1 The National Small Industries KVIC and 63 officials were trained to work in
Corporation Ltd. continuously strives to Hindi. Regular quarterly meetings were also
promote the use of Hindi in official work. organized during this period. The KVIC also
A full-fledged Hindi Section with adequate regularly publishes house magazine ‘Jagriti’
staff is functioning at the corporate office of bilingually for wider circulation
the Corporation in Delhi. The meetings of
NSIC’s Official Language Implementation
13.11.4 Coir Board
Committee and Hindi Workshops are
regularly organised. During the year, Hindi
Pakhwara was celebrated from 14th - 28th 13.11.4.1 The Coir Board continued its
September, 2007 in which various Hindi efforts to implement the Official Language
competitions were organised. Literature Policy. During 2007-08, three quarterly
and application forms of various schemes of meetings were held by them at Alppuzha,
NSIC have been prepared bilingually. During Bangalore and Delhi. Four Hindi Workshops
the year, the Parliamentary Committee on were also organised by them at various
Official Language inspected its Chennai locations in India. Efforts were also made
Office and the Committee was satisfied with by the Board to prepare Audit Report,
the progress made for the use of Hindi. NSIC Questionnaire, Brief Note on Coir Board etc.
has already started publishing in-house bilingually. The publication of the Board ‘Coir
magazine namely “NSIC Parivar” in Hindi. To News’ also had Hindi segments.
129
Chapter XIV
VIGILANCE MATTERS
14.1 The vigilance unit of the Ministry of of departmental proceedings on the

Micro, Small and Medium Enterprises is advice of the Department of Person-
headed by a Chief Vigilance Officer (CVO) nel and Training (DoP&T) & CVC;
of the rank of Joint Secretary, appointed on
l Obtaining second stage advice of
the advice of the Central Vigilance Commis-
the CVC, wherever necessary; and
sion (CVC). The CVO functions as the nodal
point in the vigilance set-up of the Ministry. l Obtaining advice of the Union Pub-
The vigilance wing is, inter alia, responsible lic Service Commission (UPSC) in
for the following: regard to the nature and quantum
of penalty to be imposed, wherever
l Identification of sensitive areas necessary.
prone to malpractices/temptations
and taking preventive measures to 14.2 ACTIVITIES OF THE VIGI-
ensure integrity/efficiency in Gov- LANCE WING
ernment functioning;
14.2.1 Preventive vigilance continues to re-
l Taking suitable action to achieve ceive attention with emphasis on identifica-
the targets fixed by the Department
tion of areas sensitive/prone to malpractices
of Personnel & Training (DoP&T) on
and temptations. The guidelines/instructions
anti corruption measures;
issued by the DoP&T and the CVC from
l Scrutiny of complaints and initiation of time to time in this regard, are scrupulously
appropriate investigation measures; followed. The action taken for the purpose
inter-alia includes:
l Inspections and follow-up action on
the foregoing;
(i) Regular and surprise inspections
l Furnishing comments to the CVC on are carried out by the Departmental
the investigation reports of the Cen- Security Officer. In the attached and
tral Bureau of Investigation(CBI); subordinate offices, respective De-
partmental Security Officers carry
l Taking appropriate action in respect out these inspections.
131
MSME
(ii) Strengthening of vigilance machin- Office, Department of Personnel &

ery by way of appointing CVOs in Training and to the CVC periodically
the offices and organisations under as per the guidelines laid down by
the Ministry, who look after the vigi- these offices.
lance activities in the offices/organi-
zations concerned. (viii) The cases pending for prosecution
sanction are monitored on a regular
(iii) A strict watch is kept on liaison men basis for ensuring early disposal.
and other persons. The Departmen-
tal security instructions are reiterat- (ix) A list of officers with doubtful integ-
ed from time to time for streamlining rity in the Ministry as well as in the
entry of outsiders into the building. attached and subordinate offices of
In order to dispense with the prac- this Ministry is prepared at the be-
tice of professional liaison men op- ginning of every year and is sent to
erating in the Ministry, a fresh list of the CBI as per the guidelines issued
such unwanted liaison men is pre- by the Department of Personnel and
pared every year. Training. Simultaneously, instruc-
tions are also issued for posting of
(iv) The cases of the officers, who have these officers to the non-sensitive
attained the age of 50 years or have posts and keeping a check over
put in 30 years of service, are re- their activities.
viewed under FR 56 (i) in order to
judge their suitability for continuation 14.3. VIGILANCE AWARENESS
in service thereafter. The exercise is WEEK
currently being done by the Estab-
lishment Division of the Ministry. 14.3.1 In accordance with the instructions
(v) In order to make officers conscious issued by the Central Vigilance Commis-
about the provisions of the Conduct sion, Vigilance Awareness Week was cel-
Rules applicable to them as also to ebrated in this Ministry from 12 to 16th No-
acquaint them with the importance vember, 2007. On 12th November, 2007,
of departmental security, Rules/In- The Secretary (MSME) administered the
structions are reiterated in this re- Pledge to all the officers and staff mem-
spect from time to time. bers working in this Ministry. During this
(vi) The guidelines and instructions of week, officers and members of staff were
CVC and the Department of Person- impressed upon to emphasis more on
nel & Training for ensuring integrity/ efficiency and transparency in their cus-
efficiency in the Government func- tomer oriented programmes and also to
tioning, are circulated in the Ministry increase awareness among the users of
and in the attached and subordinate the services provided by the Ministry. They
offices with the directions to ensure were also sensitized to take more initia-
observance/ compliance and imple- tive for improvement of the systems and
mentation of the same. procedures, the complaint handling policy,
(vii) The requisite Reports and Returns the avenues available for redress of griev-
are submitted to the Prime Minister’s ances. During this period, cloth banners
132
were displayed on the main-gate/ entry of 14.4.1.3 The vigilance cases in respect of
this office and placards were also displayed Group ‘C’ & ‘D’ staff of field offices are at-
at various points in Udyog Bhawan. tended to by the Director of the institute/
centre who is assisted by AD (Admn). The
14.4 VIGILANCE SET UP OF AT- services of senior officers both at the Head-
TACHED AND SUBORDINATE quarters and field offices, are utilized for in-
OFFICES vestigating the complaints.
14.4.1 Micro Small and Medium Enter- 14.4.2 National Small Industries Corpo-
prises Development Organisa- ration Ltd. (NSIC)
tion (MSME-DO)
14.4.2.1 The National Small Industries
14.4.1.1 The Vigilance Unit in the MSME-
Corporation Ltd. (NSIC) is a public sector
DO or the Office of the Development Com-
company under the Ministry of MSME. The
missioner (Micro, Small and Medium Enter-
vigilance work in NSIC is looked after by a
prises), New Delhi, is headed by a CVO of
the rank of Director to the Government of part-time Chief Vigilance Officer, appointed
India, appointed on the advice of the Cen- on the advice of CVC.
tral Vigilance Commission (CVC), with full
complement of staff under him. The CVO 14.4.3 Khadi & Village Industries Com-
is also responsible for all the field offices of mission (KVIC)
the MSME-DO. The Vigilance Unit deals
with vigilance matters like complaints and 14.4.3.1 The Khadi & Village Industries Com-
vigilance cases coming within the purview of mission (KVIC) is a statutory organisation un-
CCS (CCA) Rules, 1965 concerning MSME- der the Ministry of MSME. The vigilance work
DO and its offices.
in Khadi & Village Industries Commission is
looked after by a full-time Chief Vigilance Of-
14.4.1.2 Apart from dealing with complaints ficer appointed on the advice of CVC.
and vigilance cases against officers and staff
relating to corruption and improper motives,
14.4.4 Coir Board
a number of anonymous/ pseudonymous
complaints as also complaints and vigilance
cases other than those of corruption or im- 14.4.4.1 The Coir Board, Kochi, is a statu-
proper motives pertaining to the officers of tory body under the Ministry of MSME. The
MSME-DO are also handled by the CVO and vigilance work in Coir Board is looked after
suitable action is taken against officers found by a part-time Chief Vigilance Officer ap-
guilty of misconduct/ misbehavior. pointed on the advice of CVC.
133
Chapter XV
CITIZENS’ CHARTER AND
THE RIGHT TO INFORMATION ACT
15.1 CITIZENS’ CHARTER Organisation (MSME-DO), the National

Small Industries Corporation Ltd. (NSIC),
15.1.1 This Charter is a declaration of the Min- the Khadi and Village Industries Commis-
istry, incorporating its mission and commitment sion (KVIC), the Coir Board and three na-
to the Micro, Small and Medium Enterprises tional level entrepreneurship development
and for the people of India in general. institutes, viz. National Institute for Micro,
Small and Medium Enterprises (NI-MSME),
15.2 MINISTRY OF MICRO, SMALL Hyderabad; National Institute for Entrepre-
neurship and Small Business Development
AND MEDIUM ENTERPRISES
(NIESBUD), Noida; and Indian Institute of
Entrepreneurship (IIE), Guwahati. The Prime
15.2.1 The role of the Ministry of Micro, Small
Minister’s Rozgar Yojana (PMRY) scheme of
and Medium Enterprises is mainly to assist
this Ministry is implemented through the Dis-
the States in their efforts to promote growth
trict Industries Centres (DICs) of the States/
and development of MSMEs, for enhancing
Union Territories and banks, in the rural ar-
the competitiveness of these enterprises in
eas as well as urban areas.
an increasingly market-led economy and for
generating additional employment opportu-
nities. In addition, the Ministry also attempts 15.2.3 The organisations of the Ministry
to address common concerns of these en- have their own Citizens’ Charters.
terprises and undertakes advocacy on be-
half of this sector. 15.3 OUR MISSION
15.2.2 The formulation and implementa- 15.3.1 The Mission of the Ministry is to pro-
tion of policies and programmes/projects/ mote, in cooperation with other Ministries
schemes is undertaken by the Ministry with and Departments of the Central Govern-
the assistance of its attached office, public ment, State Governments, Union Territory
sector enterprise, statutory bodies and au- Administrations and all other stakeholders,
tonomous organisations, namely, Micro, the growth and development of the micro,
Small and Medium Enterprises-Development small and medium enterprises, including
135
MSME
village and tiny industries and to enhance committed to providing efficient and prompt
their competitiveness so as to enable these services with transparency and courtesy to
enterprises to contribute in generation of the citizens as well as to MSMEs.
productive employment opportunities in the
country. 15.4.2 Towards this end, the Ministry in the
spirit of dutiful discipline, respects the rights
15.3.2 It is the endeavor of this Ministry to of individuals, entrepreneurs and their as-
support the micro, small and medium enter- sociations. The Ministry maintains and
prises, including village and tiny industries upholds the confidentiality of personal and
through advocacy with Ministries / Depart- business information disclosed to it by the
ments of Government of India and other citizens. The Ministry along with its organi-
stakeholders. sations continuously reviews the policies,
programmes and enforcement of related
15.3.3 The objective of this Ministry is to fa- laws and regulations, in consultation with
cilitate growth and development of MSMEs. the stakeholders concerned, with the aim
The main focus of the schemes/programmes of fulfilling its Mission.
undertaken by the organisations of the Min-
istry is thus to provide/facilitate provision of a 15.5 STANDARD FOR GENERAL
wide range of services and facilities required PROCEDURE
for accelerating the growth of MSMEs. The
schemes/programmes generally focus of 15.5.1 The letters received by the Ministry
capacity building in the States/Regions. are generally acknowledged within 15 days
and replied to as soon as possible.
15.3.4 The aim of this Ministry is to provide
prompt service to citizens through its at- 15.6 RESPONSIBILITIES OF OUR
tached office, public sector enterprise, statu- CITIZENS
tory bodies and autonomous organisations,
for accelerating the growth of MSMEs and 15.6.1 The Ministry expects continuous
also to enhance their competitiveness. feedback from the citizens on the quality of
the services provided to them and on areas
15.3.5 The Ministry seeks to fulfil its Mission in which improvements are expected.
by formulating appropriate policies and de-
signing/implementing support measures in 15.7 ASSESSING PERFORMANCE
the fields of credit, technological upgrada-
tion, marketing, entrepreneurship develop-
15.7.1 The Ministry, from time to time,
ment, etc. and undertaking effective advo-
shares its performance with the citizens
cacy for these purposes.
and stakeholders through the media and
its Website. The Ministry also undertakes
15.4 COMMITMENT independent surveys on perceptions of
the citizens and assessment of its perfor-
15.4.1 The Ministry and its organisations are mance.
136
15.8 GUIDANCE AND HELP In accordance with the provisions of Section

4(1)(b) of this Act, the Ministry of Micro, Small
15.8.1 The Information and Facilitation and Medium Enterprises, Government of In-
Counter of the Ministry, located on the dia has brought out a handbook for informa-
ground floor, Gate No. 4, Nirman Bhavan, tion and guidance of the stakeholders and the
New Delhi, provides information on the ser- general public and hosted the same on the
vices and activities of the Ministry and its or- Website of the Ministry, i.e., www.msme.gov.
ganisations. in In terms of Section 5(2) of the Right to In-
formation Act, 2005, Central Public Informa-
15.9 COMPLAINTS tion Officers (CPIOs) have been designated
in the Ministry.
15.9.1 In case of any complaint, one may
telephone or send a letter or fax or visit the 15.10.2 The Ministry’s attached office, pub-
Ministry at Udyog Bhavan, New Delhi. How- lic sector enterprise, statutory bodies and
ever, before lodging of a complaint, one may, autonomous organisations, namely, Micro,
first of all, use the Information and Facilita- Small and Medium Enterprises-Develop-
tion Counter of the Ministry. In case one is ment Organisation (MSME-DO), the Nation-
not satisfied, the matter may be taken up al Small Industries Corporation Ltd. (NSIC),
with the Grievance Officer in this Ministry. the Khadi and Village Industries Commis-
The address, phone and fax numbers of the sion (KVIC), the Coir Board and three na-
Information and Facilitation Counter and the tional level entrepreneurship development
Grievance Cell are given in Table 15.1 institutes, viz; National Institute for Micro,
Small and Medium Enterprises (NI-MSME),
15. 10 THE RIGHT TO INFORMA- Hyderabad; National Institute for Entrepre-
TION ACT neurship and Small Business Development
(NIESBUD), Noida; and Indian Institute
15.10.1 In order to promote transparency and of Entrepreneurship (IIE), Guwahati and
accountability in the working of every public NCEUS; have also designated CPIOs in re-
authority and to empower the citizens to se- spect of their organisations. The details of
cure access to information under the control CPIOs designated by these organisations
of public authorities, the Government of India are available on their respective Websites
enacted “The Right to Information Act, 2005”. as per addresses given in Table 15.1.
137
MSME
TABLE - 15.1: Important Addresses and Website Addresses
Important Addresses Website Addresses
1. Grievance Cell
Additional Development Com- www.msme.gov.in Ministry of MSME

missioner, Office of the DC
(MSME), Room No. 721, Nirman
Bhawan, New Delhi – 110 011, www.dcmsme.gov.in MSME-DO
Tel. No. 23061847, Fax No. 011-
23061017 www.nsic.co.in NSIC
www.niesbud.nic.in NIESBUD, Noida
www.nimsme.org NI-MSME, Hydrabad
www.iie.nic.in IIE, Guwahati
2. Information and Facilitation www.kvic.org.in KVIC

Counter, Gate No. 4, Ground
Floor, Nirman Bhavan, New Delhi
– 110 011, Tel. No. 23062219 www.coir-india.com Coir Board
www.nceuis.nic.in/ NCEUS
138

Msme Annual Report 2007-08 - English

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Msme Annual Report 2007-08 - English

Uploaded by

Copyright:

Available Formats

ANNEXURES

[Extracts from the SECOND SCHEDULE of the Government of India

MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

SUBJECTS IN LIST 1 OF THE SEVENTH SCHEDULE TO THE CONSTITUTION

GENERAL AND CONSEQUENTIAL:

8 Small Industries Development Organisation (SIDO) and Office of the Development

STATUTORY AND AUTONOMOUS BODIES AND TRAINING INSTITUTES:

9. Khadi and Village Industries Commission (KVIC) ,Mumbai.

10. Coir Board (CB), Kochi.

12. Entrepreneurship Development and Skill Development or Training Institutes:

(i) National Institute of Small Industry Extension Training (NISIET), Hyderabad.

13. Credit Guarantee Fund Trust for Small Industries.

14. Research and Development Centres, including:-

(i) Institute for Design of Electrical Measuring Instruments (IDEMI), Mumbai.

PUBLIC SECTOR UNDERTAKING:

16. National Small Industries Corporation Limited, Delhi.

AWARDS AND EXHIBITIONS:

ADMINISTRATION OF ACTS, RULES AND REGULATIONS:

STATE-WISE UNITS SET UP UNDER REGP DURING X PLAN AND 2007-08

STATE-WISE MARGIN MONEY UTILISATION DURING X PLAN AND 2007-08

STATE/UT-WISE DETAILS OF EMPLOYMENT GENERATION UNDER PMRY DURING

SI. State/U. T. 2002-03 2003-04 2004-05 2005-06* 2006-07*

REVISED PARAMETERS UNDER PRIME MINISTER’S ROZGAR YOJANA

1. Age (i) 18 to 35 years for all educated unemployed.

(ii) 18 to 40 for all educated unemployed in North-East

(iii) 18 to 45 years for Scheduled Castes /Scheduled Tribes,

4. Residence Permanent resident of the area for atleast 3 years.

5. Defaulter Should not be a defaulter to any nationalized bank/

6. Activities Covered All economically viable activities including agriculture

Self Help Groups can be considered for assistance

• Educated Unemployed Youth satisfy the eligibility cri-

• A Self Help Group may consist of 5-20 educated un-

• No upper ceiling on project cost.

• Loan may be provided as per individual eligibility tak-

• SHG may undertake common economic activity for

• The subsidy ceiling for Self Help Group is Rs. 15,000/-

• Subsidy may be provided to the SHG as per the eligi-

• Required margin money contribution (i.e. subsidy and

• The exemption limit for obtention of collateral security

• Implementing Agencies may decide necessity of pre-

For North Eastern States, Himachal Pradesh, Uttra-

ii) Subsidy @ of 15% of the project cost subject to a ceil-

9. Collateral No collateral for units in industry sector with project

10. Rate of Interest Normal rate of interest shall be charged.

11. Reservation Preference should be given to weaker sections includ-

12. Training Each entrepreneur whose loan is sanctioned is pro-

i) For Industry Sector:

Duration:15-20 working days.

Training Expenditure: Rs.1750/-

ii) For Service and Business Sector:

Duration:7-10 working days.

Training Expenditure: Rs.875/-

13. Motivational Campaigns To improve the success rate of eligible applicants,

(ii) To reduce the level of sickness/closure of PMRY units,

STATE-WISE EMPLOYMENT GENERATED (PMRY)

LIST OF TECHNICAL AGENCIES APPROVED UNDER SFURTI

Sl. Name of Technical Agency Location

1. Cluster Pulse Ahmedabad

2. Small Industries Product Promotion Organisation (SIP- Madurai.

3. NABARD Consultancy Services Mumbai

4. TERI (The Energy and Resource Institute) New Delhi

5. North Eastern Industries Consultants Ltd. Tripura