Report English

C
Annual Report 2010-11
ANNUAL REPORT
2010-11
MICRO, SMALL & MEDIUM ENTERPRISES

Printed at Chandu Press Ph: 22526936
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
Udyog Bhavan, New Delhi-110107 Government of India
Website: www.msme.gov.in
Udyami Helpline No. : 1800-180-6763 (Toll Free) MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
Udyami Helpline No. : 1800-180-6763 (Toll Free)
M
y
C
k
ANNUAL REPORT
2010-11


GOVERNMENT OF INDIA
y
M
Annual Report Annual Report
2010-11
2010-11
Government of India
Ministry of Micro, Small and Medium Enterprises
Udyog Bhavan, New Delhi – 110 107
website: www.msme.gov.in
Udyami Helpline No. 1800-180-6763 (Toll Free )
MSME
Annual Report
2010-11
ii MSME
CONTENTS
CHAPTER TITLE PAGE NO.
NO.
1. Introduction 1
2. (a) Growth and Performance of Micro, Small & Medium Enterprises 11

(MSMEs) and (b) 4th Census of MSME
3. Policy Initiatives 27
4. Role and Functions of Office of the Development Commissioner 65

(MSME)
5. Khadi and Village Industries Commission (KVIC) 109
6. Mahatma Gandhi Institute for Rural Industrialisation (MGIRI) 131
7. Coir Board 137

Annual Report
8. National Small Industries Corporation (NSIC) Limited 151 2010-11
9. Training, Entrepreneurship Development and Other Schemes of 171

the Ministry
10. Prime Minister’s Employment Generation Programme (PMEGP) 199

and Scheme of Fund for Regeneration of Traditional Industries
(SFURTI)
11. International Co-operation 209
12. Activities in the North Eastern Region 229
13. Activities and Programmes for Women 247
14. Use of Official Language 253
15. Vigilance Activities 263
16. Citizen Charter, Right to Information (RTI) Act, Performance 269

Monitoring and Evaluation System (PMES) and Activities
undertaken for the benefit of the persons with disabilities
MSME iii
ANNEXURES
Annexure SUBJECT Page No.
No.
I Statement showing BE, RE, Expenditure and Achievements 277

during 2009-10 and 2010-11
II Statement showing Plan Allocation and Expenditure during 310

10th Five Year Plan, 2008-09, 2009-10 and 2010-11
III State-wise performance under Prime Minister’s Employment 311

Generation Programme (PMEGP)
IV Data on Census 313
V List of items reserved for SSI 325
Annual Report
VI Bank Credit Data 327
2010-11
VII Most Recent and Important Audit Observations (C&AG) 328
VIII List of CPIO’s of the Ministry and Nodal CPIO’s of its 330
Organizations
IX Contact Addresses 335
X Definition of Micro, Small and Medium Enterprises in India 347
iv MSME
Abbreviations Used
Abbreviation Full Form
ARI Agro-Rural Industries
CCEA Cabinet Committee on Economic Affairs
CCRI Central Coir Research Institute
CFTI Central Footwear Training Institute
CICT Central Institute of Coir Technology
CGTMSE Credit Guarantee Trust for Micro and Small Enterprises
CLCSS Credit Linked Capital Subsidy Scheme
CPIO Central Public Information Officer

Annual Report
DC (MSME) Development Commissioner (Micro, Small and Medium
2010-11
Enterprises)
DIs Development Institutes
EDP Entrepreneurship Development Programme
ESDP Entrepreneurship-cum-Skill Development Programme
FFDC Fragrance and Flavour Development Centre
FTS Field Testing Station
GoI Government of India
ICT Information and Communication Technology
IIE Indian Institute of Entrepreneurship
IPFC Intellectual Property Facilitation Centre
IPR Intellectual Property Rights
MSME v
KVI Khadi and Village Industries
KVIC Khadi and Village Industries Commission
MGIRI Mahatma Gandhi Institute for Rural Industrialisation
M/o MSME Ministry of Micro, Small and Medium Enterprises
MSE Micro and Small Enterprises
MSE-CDP Micro and Small Enterprises – Cluster Development Programme
MSME Micro, Small and Medium Enterprises
MSMED Act Micro, Small and Medium Enterprises Development Act
MSME-DI Micro, Small and Medium Enterprises Development Institute
MSME-TC Micro, Small and Medium Enterprises Testing Centres

Annual Report
MSME-TDC Micro, Small and Medium Enterprises Technology Development
2010-11
Centres
MSME-TS Micro, Small and Medium Enterprises Testing Stations
MSME-TR Micro, Small and Medium Enterprises Tool Room
MSME-TI Micro, Small and Medium Enterprises Training Institute
NB MSME National Board for Micro, Small and Medium Enterprises
NER North-Eastern Region
NIESBUD National Institute for Entrepreneurship and Small Business

Development
NIMSME National Institute for Micro, Small and Medium Enterprises
NMCP National Manufacturing Competitiveness Programme
NSIC National Small Industries Corporation Limited
vi MSME
NTSC NSIC Technical Service Centre
PMEGP Prime Minister’s Employment Generation Programme
QMS Quality Management System
QTT Quality Technology Tools
R&D Research & Development
REGP Rural Employment Generation Programme
REMOT Rejuvenation, Modernisation and Technology Upgradation of

the Coir Industry
RGUMY Rajiv Gandhi Udyami Mitra Yojana
RTI Right to Information
SDP Skill Development Programme Annual Report

2010-11
SFURTI Scheme of Fund for Regeneration of Traditional Industries
SME Small & Medium Enterprises
SSI Small Scale Industries
TDC Technology Development Centres
MSME vii
Annual Report
2010-11
viii MSME
CHAPTER I
INTRODUCTION
1.1 BACKGROUND • Measures for promotion,
development and enhancement
1.1.1 Micro, Small and Medium
of MSMEs
Enterprises (MSMEs), including khadi
and village/rural enterprises credited • Schemes to control delayed
with generating the highest rates of payments to MSMEs
employment growth, account for a • Enactment of rules by State
major share of industrial production Governments to implement
and exports. They also play a key role the MSMED Act, 2006 in their
in the development of economies respective States
with their effective, efficient, flexible
On 9 May 2007, subsequent to an
and innovative entrepreneurial Annual Report
amendment of the Government of
spirit. The socio-economic policies 2010-11
India (Allocation of Business) Rules,
adopted by India since the Industries
1961, the Ministry of Small Scale
(Development and Regulation) Act,
Industries and the Ministry of Agro
1951 have laid stress on MSMEs as
and Rural Industries were merged to
a means to improve the country’s
economic conditions. form the Ministry of Micro, Small and
Medium Enterprises (MSME). This
1.1.2 MSMED Act was notified in Ministry now designs policies and
2006 to address policy issues affecting promotes/facilitates programmes,
MSMEs as well as the coverage and projects and schemes and monitors
investment ceiling of the sector. The their implementation with a view to
salient features of the Act include:
assisting MSMEs and help them scale
• Setting up of a National Board up.
for MSMEs
1.1.3 The primary responsibility
• Classification of enterprises
of promotion and development of
• Advisory Committees to support MSMEs is of the State Governments.
MSMEs However, the Government of
MSME 3
Chapter I - Introduction
India, supplements the efforts of of the units and their collectives.

the State Governments through
1.1.4 The majority of people living in
different initiatives. The role of
rural areas draw their livelihood from
the Ministry of Micro, Small and
agriculture and allied sectors. However,
Medium Enterprises (M/o MSME)
the growth and balanced development
and its organisations is to assist the
of other sectors such as industry and
States in their efforts to encourage
services is also necessary to sustain
entrepreneurship, employment
the growth of Indian economy in an
and livelihood opportunities and
inclusive manner. The Government
enhance the competitiveness of
of India is striving to improve the
MSMEs in the changed economic
economic and social conditions of
scenario. The schemes/programmes
rural population and non-farm sector
undertaken by the Ministry and its
through a host of measures including
organizations seek to facilitate/
creation of productive employment
provide: i) adequate flow of
Annual Report opportunities based on optimal use
credit from financial institutions/
2010-11 of local raw materials and skills as well
banks; ii) support for technology
as undertaking interventions aimed
upgradation and modernization; iii)
at improving supply chain; enhancing
integrated infrastructural facilities;
skills; upgrading technology;
iv) modern testing facilities and
expanding markets and capacity
quality certification; v) access to
building of the entrepreneurs/
modern management practices;
artisans and their groups/collectives.
vi) entrepreneurship development
The details regarding Schemes being
and skill upgradation through
implemented by the Ministry are
appropriate training facilities; vii)
given in the subsequent Chapters.
support for product development,
design intervention and packaging; 1.2 ORGANISATIONAL SET-UP
viii) welfare of artisans and workers;
ix) assistance for better access to 1.2.1 The Ministry of MSME is having
domestic and export markets and x) two Divisions called Small & Medium
cluster-wise measures to promote Enterprises (SME) Division and Agro
capacity-building and empowerment & Rural Industry (ARI) Division. The
4 MSME
SME Division is allocated the work, (MSME)}; the Khadi and Village
inter-alia, of administration, vigilance Industries Commission (KVIC); the
and administrative supervision of the Coir Board; the Mahatma Gandhi
National Small Industries Corporation Institute for Rural Industrialization
(NSIC) Ltd., a public sector enterprise (MGIRI); the National Small
and the three autonomous national Industries Corporation (NSIC)
level entrepreneurship development/ Ltd. and the three autonomous
training organisations. The Division is national level entrepreneurship
also responsible for implementation development/ training institutes,
of the schemes relating to marketing viz.,National Institute for
and export promotion. SME Division
Entrepreneurship and Small
is also responsible for preparation
Business Development (NIESBUD),
and monitoring of Results-Framework
NOIDA; National Institute for Micro,
Document (RFD) as introduced in
Small and Medium Enterprises (NI-
2009 by the Cabinet Secretariat Annual Report
MSME), Hyderabad and Indian
under Performance Monitoring and 2010-11
Institute of Entrepreneurship (IIE),
Evaluation System (PMES). The ARI
Guwahati.
Division looks after the administration
of two statutory bodies viz. the Khadi 1.2.3 The Government established
and Village Industries Commission the National Board for Micro, Small
(KVIC), Coir Board and a newly created and Medium Enterprises (NBMSME)
organization called Mahatma Gandhi under the Micro, Small and Medium
Institute for Rural Industrialisation Enterprises Development Act, 2006
(MGIRI). It also supervises the and Rules made thereunder. The
implementation of the Prime Board examines the factors affecting
Minister’s Employment Generation promotion and development of
Programme (PMEGP). MSMEs and reviews policies and
1.2.2 The Ministry is duly assisted programmes from time to time
in its efforts by its attached office relating to these enterprises and
viz., Office of the Development makes recommendations to the
Commissioner (MSME) {O/o DC Government in formulating the
MSME 5
policies for the growth of MSMEs. following organogram:-
1.2.4 The organizational structure The details regarding the attached

of the Ministry is depicted in the office and other organizations of the
Annual Report
2010-11
Ministry are given in the following (MSME)} [earlier known as O/o

paragraphs. DC (SSI)], assists the Ministry
in formulating, coordinating,
1.3 OFFICE OF THE implementing and monitoring
DEVELOPMENT COMMISSIONER different policies and programmes
(MICRO, SMALL AND MEDIUM for the promotion and development
of MSMEs in the country. In addition,
ENTERPRISES) {O/o DC (MSME)}
it provides a comprehensive range
1.3.1 The Office of the Development of common facilities, technology
Commissioner (Micro, Small and support services, marketing
Medium Enterprises) {O/o DC assistance, etc., through its network
6 MSME
of 30 MSME Development Institutes generating sustainable rural non-

(MSME - DIs); 28 Branch MSME-DIs; farm employment opportunities at
4 MSME Testing Centres (MSME- low per capita investment. This also
TCs); 7 Field Testing Stations (MSME- helps in checking migration of rural
TSs); 18 Autonomous Bodies - which population to urban areas in search
include 10 MSME Tool Rooms of the employment opportunities.
(MSME-TRs); 6 MSME Technology The details of role and functions of
Development Centres (MSME-TDCs)
KVIC are mentioned in Chapter – V.
and 2 MSME Footwear Training
Institutes (MSME-TDC-CFTIs). There 1.5 MAHATMA GANDHI
are also 2 Departmental Training INSTITUTE FOR RURAL
Institutes (MSME-TIs). The Office
INDUSTRIALISATION (MGIRI)
implements a number of Schemes
for the MSME sector, the details of 1.5.1 The national level institute
which have been duly incorporated in namely ‘Mahatma Gandhi Institute
Annual Report
Chapter – IV. for Rural Industrialization (MGIRI)” 2010-11
(erstwhile Jamnalal Bajaj Central
1.4 KHADI & VILLAGE Research Institute) has been
INDUSTRIES COMMISSION (KVIC) established as a society under
1.4.1 The Khadi & Village Industries Societies (Registration) Act, 1860 at
Commission (KVIC), established Wardha, Maharashtra, to strengthen
under the Khadi and Village Industries the R&D activities in khadi and village
Commission Act, 1956, is a statutory industry sectors. The main functions
organization engaged in promoting of the Institute are to improve the
and developing khadi and village R&D activities under rural industrial
industries for providing employment sector through encouraging research,
opportunities in rural areas, thereby extension of R&D, quality control,
strengthening the rural economy. training and dissemination of
The KVIC has been identified as technology related information. The
one of the major organizations details of the institute are provided
in the decentralized sector for in Chapter – VI.
MSME 7
1.6 COIR BOARD the Coir sector are mentioned in

Chapter – VII.
1.6.1 The Coir Board is a statutory
body established under the Coir 1.7 NATIONAL SMALL
Industry Act, 1953 for promoting INDUSTRIES CORPORATION LTD
overall development of the coir (NSIC)
industry and improving the living
conditions of the workers engaged in 1.7.1 The National Small Industries
this traditional industry. The activities Corporation (NSIC) Ltd. was
of the Board for development of established by the Government as a
coir industries, inter-alia, include Public Sector Company in 1955. The
main functions of the Corporation
undertaking scientific, technological
are to promote, aid and foster the
and economic research and
growth of MSMEs in the country,
development activities; developing
generally on a commercial basis. It
new products & designs; and
Annual Report provides a variety of support services
marketing of coir and coir products
2010-11 to MSMEs catering to their different
in India and abroad. It also promotes
requirements in the areas of raw
co-operative organisations among
material procurement; product
producers of husks, coir fibre, coir yarn
marketing; credit rating; acquisition
and manufacturers of coir products;
of technologies; adoption of modern
ensuring remunerative returns
management practices, etc. Detailed
to producers and manufacturers,
activites of the Corporation may be
etc. The Board has promoted two
found in Chapter – VIII.
research institutes namely; Central
Coir Research Institute (CCRI), 1.8 NATIONAL
Kalavoor, Alleppey, and Central
ENTREPRENEURSHIP
Institute of Coir Technology (CICT),
DEVELOPMENT INSTITUTES
Bengaluru for undertaking research
activities on different aspects of coir 1.8.1 Entrepreneurship development
industry, which is one of the major and training is one of the key
agro based rural industries in the elements for the promotion of
country. The details of activities about MSMEs, especially for creation of new
8 MSME
enterprises by the first generation NIESBUD, NIMSME and IIE have been
entrepreneurs. In order to inculcate mentioned in Chapter - IX.
the entrepreneurial culture amongst
1.9 NATIONAL BOARD FOR
the first generation of entrepreneurs
MICRO, SMALL AND MEDIUM
on a regular basis, the Ministry has set ENTERPRISES (NBMSME)
up three national Entrepreneurship
1.9.1 In pursuance of the MSME
Development Institutes viz; National
Development Act, 2006, a National
Institute for Entrepreneurship
Board for Micro, Small & Medium
and Small Business Development Enterprises consisting of a total of
(NIESBUD) (1983) at NOIDA (Uttar 47 members has been constituted.
Pradesh), National Institute for Micro, The 20 non-official members on
Small and Medium Enterprises (NI- the Board represent industry
MSME) (1960) at Hyderabad and Indian associations of MSMEs from all
Institute of Entrepreneurship (IIE) over the country while the other
(1993) at Guwahati, as autonomous 27 members comprise of Members Annual Report
of Parliament, Ministers of six State 2010-11
societies. These institutes are engaged
Governments, representatives of
in developing training modules;
RBI, Banks etc. Meetings of the Board
undertaking research & training;
are held regularly and various issues
and providing consultancy services relating to development of MSMEs
for entrepreneurship development are discussed and remedial measures
& promotion of MSMEs, including are undertaken in consultation
enhancement of their competitiveness. with the concerned departments/
The role, function and activities of the agencies.
MSME 9
Annual Report
2010-11
10 MSME
CHAPTER II
[a]GROWTH AND PERFORMANCE OF MICRO,
SMALL AND MEDIUM ENTERPRISES (MSMEs)
AND [b] 4th CENSUS OF MSME
2.1 OVERVIEW OF THE MSME manufacturing output and 40 per cent
SECTOR of the total exports of the country.
The sector is estimated to employ
2.1.1 The micro, small and medium
about 59 million persons in over 26
enterprises (MSME) sector contributes million units throughout the country.
significantly to the manufacturing Further, this sector has consistently
output, employment and exports registered a higher growth rate than
of the country. It is estimated the rest of the industrial sector. There Annual Report
that in terms of value, the sector are over 6000 products ranging from 2010-11
accounts for about 45 per cent of the traditional to high-tech items, which
MSME 13
Chapter II - Growth & Performence
are being manufactured by the on “Quick Results of 4th All India

MSMEs in India. It is well known Census” comprising the data of
that the MSME sector provide the registered MSMEs and some data
maximum opportunities for both on unregistered MSMEs extracted
self-employment and jobs after from Economic Census (EC-2005)
have been brought out. This has
agriculture sector.
provided the first database on the
2.1.2 Recognizing the MSME sector after the enactment
contribution and potential of of MSME Development Act, 2006.
the sector, the definitions and The collection of data from the
coverage of the MSE sector were unregistered sector by way of the
broadened significantly under sample survey, forming part of
the Micro, Small and Medium the 4th All India Census is under
Enterprises Development progress.
(MSMED) Act, 2006 which
Annual Report 2.2 PERFORMANCE OF MSEs
2010-11 recognized the concept of
“enterprise” to include both 2.2.1 The Office of the DC (MSME)
manufacturing and services provides estimates in respect of
various performance parameters
sector besides, defining the
relating to the Sector. The time
medium enterprises. For
series data in respect of the Sector
collecting and compiling the
on various economic parameters
data for the MSME sector is incorporated in the following
(including khadi, village and Table 2.1. It may be mentioned
coir industries), the Fourth All that data with respect to MSMEs
India Census of MSMEs with have been collected/compiled
reference year 2006-07, was for the first time in 2006-07 and
launched during 2007-08 in hence include both the industry
the country. The collection of and service sectors. Till the year
data from the registered part, 2005-06, data in the Table 2.1 refer
namely the Census units has to micro and small scale industry
been completed and a Report only.
14 MSME
TABLE 2.1 : MSMEs Performance: Units, Investment, Production,

Employment & Exports
Sl. Year Total Fixed Production Employment Exports

No. MSMEs Investment (Rs crore) (lakh person) (Rs. crore)
(lakh (Rs. Crore)
numbers) Current
Prices
1 1992-93 73.51 109623 84413 174.84 17784
(4.07) (9.24) (4.71) (5.33) (28.10)
2 1993-94 76.49 115795 98796 182.64 25307
(4.07) (5.63) (17.04) (4.46) (42.30)
3 1994-95 79.60 123790 122154 191.40 29068
(4.07) (6.9) (23.64) (4.79) (14.86)

Annual Report
4 1995-96 82.84 125750 147712 197.93 36470 2010-11
(4.07) (1.58) (20.92) (3.42) (25.46)
5 1996-97 86.21 130560 167805 205.86 39248
(4.07) (3.82) (13.60) (4.00) (7.62)
6 1997-98 89.71 133242 187217 213.16 44442
(4.07) (2.05) (11.57) (3.55) (13.23)
7 1998-99 93.36 135482 210454 220.55 48979
(4.07) (1.68) (12.41) (3.46) (10.21)
8 1999-00 97.15 139982 233760 229.10 54200
(4.07) (3.32) (11.07) (3.88) (10.66)
9 2000-01 101.1 146845 261297 238.73 69797
(4.07) (4.90) (11.78) (4.21) (28.78)
MSME 15
Sl. Year Total Fixed Production Employment Exports

No. MSMEs Investment (Rs crore) (lakh person) (Rs. crore)
(lakh (Rs. Crore) Current
numbers) Prices
10 2001-02 105.21 154349 282270 249.33 71244
(4.07) (5.11) (8.03) (4.44) (2.07)
11 2002-03 109.49 162317 314850 260.21 86013
(4.07) (5.16) (11.54) (4.36) (20.73)
12 2003-04 113.95 170219 364547 271.42 97644
(4.07) (4.87) (15.78) (4.31) (13.52)
13 2004-05 118.59 178699 429796 282.57 124417
(4.07) (4.98) (17.90) (4.11) (27.42)
14 2005-06 123.42 188113 497842 294.91 150242
(4.07) (5.27) (15.83) (4.37) (20.76)
Annual Report 15 2006-07 261.01 500758 709398 594.61 182538
2010-11 (111.48) (166.20) (42.49) (101.62) (21.50)
16** 2007-08 272.79 558190 790759 626.34 202017
(4.51) (11.47) (11.47) (5.34) (10.67)
17** 2008-09 285.16 621753 880805 659.35 N. A.
(4.53) (11.39) (11.39) (5.35)
18** 2009-10 298.08 693835 982919 695.38 N. A.
(4.53) (11.59) (11.59) (5.47)
The figures in brackets show the percentage growth over the previous year. The data for the period up to 2005-06 is of small
scale industries (SSI). Subsequent to 2005-06, data with reference to micro, small and medium enterprises (MSMEs) are
being compiled.
**Projected {Source: S&D Division – Office of the DC (MSME)}
2.3 PERFORMANCE OF THE in North-Eastern region, their

SECTOR IN NORTH EASTERN fixed investment, production and
REGION employment for the year 2009-10
(Projected) have been incorporated
2.3.1 The estimated number of
registered working MSE units in the Table 2.2: -
16 MSME
TABLE 2.2: North East and the MSEs (2009-10) (Projected).
MSME
Name of the Year Sikkim Arunachal Nagaland Manipur Mizoram Tripura Meghalaya Assam Total
State Pradesh
Number 2006-07 123 451 1331 4507 3714 1253 3063 18671 33113
of working
2007-08 138 514 2109 4549 3940 1409 3469 20425 36553
enterprises
2008-09 209 621 4630 4689 4418 1621 3879 22056 42123
2009-10 252 706 6280 4778 4770 1805 4287 23749 46626
Fixed 2006-07 27.34 584.04 719.12 92.34 279.88 382.50 132.08 5249.82 7467.12
Investment
2007-08 30.68 665.63 1139.49 93.25 297.08 430.17 149.51 5743.51 8549.32
(Rs. crore)
2008-09 46.46 804.20 2501.59 96.12 333.12 494.89 167.18 6202.15 10645.71
2009-10 55.91 914.27 3392.81 97.95 359.66 551.07 184.77 6678.08 12234.51
Production 2006-07 49.56 256.49 1384.17 160.50 303.35 575.09 437.38 6805.62 9972.16
(Rs. crore)
2007-08 49.56 292.31 2193.15 161.94 321.90 646.73 495.37 7444.91 11605.88
2008-09 55.60 353.16 4814.74 166.93 360.95 744.04 553.92 8039.41 15088.75
2009-10 84.21 401.50 6530.05 170.10 389.71 828.50 612.18 8656.33 17672.57
Employment 2006-07 1151 5893 16149 16738 26015 18807 12896 133561 231210
(Person)
2007-08 1292 6718 25582 16877 27580 21149 14604 146039 259841
17
2008-09 1956 8116 56162 17396 30926 24331 16331 157700 312919
2009-10 2354 9227 76170 17726 33390 27093 18048 169802 353811
2010-11
Annual Report
2.4 COMPARISON OF of growth vis-à-vis the overall

THE MICRO AND SMALL industrial sector as would be
ENTERPRISES (MSEs) clear from the comparative
SECTOR WITH THE OVERALL growth rates of production for
INDUSTRIAL SECTOR both the sectors during last five
2.4.1 The MSE sector has years as incorporated in the
maintained a higher rate Table 2.3: -
TABLE 2.3: Comparative Data on Growth Rates of MSE Sector

Over all Industrial
Growth rates of 2001-02
Year Growth rates of sector
base IIP (%age)
(%age) #
2002-2003 8.68 5.70
2003-2004 9.64 7.00
Annual Report
2004-2005 10.88 8.40
2010-11
2005-2006 12.32 8.20
2006-2007 12.60 11.60
2007-2008 13.00* 8.50
2008-2009 Not Available 2.80
2009-2010 Not Available 10.40
*: Projected, IIP – Index of Industrial Production
#: Source- M/o Statistics and PI website - http://www.mospi.gov.in
2.5 CONTRIBUTION OF MSMEs IN THE GROSS DOMESTIC

PRODUCT (GDP)
TABLE 2.4: Contribution of MSEs in GDP
Contribution of MSEs (%) at 1999-2000 prices in
Year Total industrial Gross Domestic
production Product (GDP)
1999-2000 39.74 5.86
18 MSME
2000-2001 39.71 6.04
2001-2002 39.12 5.77
2002-2003 38.89 5.91
2003-2004 38.74 5.79
2004-2005 38.62 5.84
2005-2006 38.56 5.83
2006-2007 45.62 7.20
2007-2008 45.24 8.00
2008-2009 44.86 8.72

The data for the period up to 2005-06 is for small scale industries (SSI).
2.6 EMPLOYMENT Census of MSEs with Reference Year

IN MSME
SECTOR 2006-07 was 594.61 lakh numbers. Annual Report
As per the estimates compiled for 2010-11
2.6.1 The total employment from
the year 2009-10, the employment
the MSE sector (including SSSBEs)
was 695.38 lakh persons in the
in the country as per the Fourth
sector.
2.7 CHARTS SHOWING OTHER STATISTICS OF THE SECTOR
a) Number of MSMEs
No. of MSMEs
No. in lakhs
Year
* Projected data for the year 2007-08 to 2009-10. ** Data for 2005-06 pertain to small scale industries (SSI) only.
MSME 19
b) Employment in MSME Sector
Annual Report c) Fixed Investment in MSME Sector

2010-11
20 MSME
d) Production in terms of Gross Output in MSME Sector
2.8 4TH ALL INDIA CENSUS OF of units, employment, Annual Report
MSMEs production, extent of closure/ 2010-11
sickness, clustering and other

2.8.1 Office of the Development relevant economic parameters
Commissioner, M/o Micro, Small pertaining to micro, small and
& Medium Enterprises, had so medium enterprises.
far conducted three censuses on (ii) To collect data on enterprises
micro and small enterprises. The owned and/or managed by
latest being 4th Census conducted women, SC/ST and OBC.
with reference period 2006-07 was (iii) To collect data on Khadi and
completed during 2010-11. Village Industry units and
2.8.2 Objectives of the 4th census Coir sector units and the
units registered under Prime
(i) To strengthen the database
Minister’s Rozgar Yojana
for the MSME i.e. collection
(PMRY) scheme.
of data in respect of number
MSME 21
(iv) To estimate the size of the and un-registered sector

unregistered MSME sector, taken together will give a
including Khadi & Village complete picture of entire
Industries and Coir Industries MSME sector.
through sample survey using (iii) Information on economic
Economic Census (EC-2005) activity, type of organization,
frame of Central Statistical type of management,
Organization. employment, fixed
investment, products, gross
2.8.3 Methodology of 4th
output, exports, sickness
Census:
and its causes etc., were
(i) As per the definition, all the collected from the registered
enterprises with investment units as well as from
in plant and machinery up unregistered units. The data
Annual Report
2010-11 to Rs. 10.00 crore in the collected were for the year
industrial sector and up to 2006-07.
Rs. 5.00 crore in the services 2.8.4 Progress of 4th Census:
sector have been covered in
(i) The quick results have been
the 4th census.
brought out based on the
(ii) With the available time and basis of data received from
resources, it was decided
the States/UTs for registered
that while the registered
part and extracted data-file
sector shall be enumerated
of Economic Census 2005 for
completely, the method
unregistered MSMEs.
of sample surveys shall
be adopted for obtaining (ii) In order to estimate
the estimates for the unregistered MSMEs in the
unregistered sector. The country, a sample of 12,784
estimates for the registered villages and 568 towns at all-
22 MSME
India level were selected for The size of the registered MSME
data collection of enterprises sector is estimated to be 15,63,974.
in these villages and towns. Of the total working enterprises,
As on 31st December, 2010, the proportion of micro, small and
96% of the data collection medium enterprises were 94.94%,
work was completed. 4.89% and 0.17% respectively.
2.8.5 Estimates obtained from This comprises of 67.10%
Registered MSMEs: manufacturing enterprises and
32.90% services enterprises. About
(i) Size of the registered MSME
45.23% (7.07 lakh) of the units
sector
were located in rural areas.
Annual Report
2010-11
MSME 23
(ii) Nature of activity by public limited companies,

cooperatives/trusts or others.
67.10 % of the enterprises in the
registered MSME sector were Distribution by No. in lakh
engaged in manufacturing/ type of
Organization :
assembling/processing, whereas
Proprietary 14.09 (90.08%)
16.78 % of the units were engaged
Partnership 0.63 (4.01%)
in services activities as may be Pvt. Company 0.43 (2.78%)
seen from the Table given below. Pub. Ltd. Company 0.08 (0.54%)
The remaining 16.13 % of the Cooperatives 0.05 (0.30%)
enterprises were engaged in the Others 0.36 (2.30%)
repair and maintenance.
(iv) Type of Management/
Ownership
Distribution by No. in lakh
Annual Report
Nature of Activity
2010-11 An enterprise (Manufacturing
Manufacturing/ 10.49 (67.10%)
Assembling/
or Services) managed by one
Processing or more women entrepreneurs
Services 2.62 (16.78%) in proprietary concerns, or in
Repairing & 2.52 (16.13%) which she/ they individually or
Maintenance
jointly have a share capital of
Total 15.64 (100%)
not less than 51% as partners/
(iii) Type of organization share holders/ Directors of Private
The table given below shows Limited Company/ Members of
that 90.08 % of the enterprises in Co-operative Society is called a
the registered MSME sector was ‘Woman Enterprise’. It was found
proprietary concerns. About 4.01
that 13.72% (2.15 lakh) of the units
% of the enterprises were run by
in the registered MSME sector
partnerships and 2.78 % of the
enterprises were run by private were women enterprises, whereas
companies. The rest were owned the share of enterprises actually
24 MSME
managed by females was also In terms of religion, 81.22% units

13.72%. were owned by Hindu whereas
domination of Muslim, Sikh and
No. of enterprises No. in lakh Christian was 9.11%, 3.31% and
managed by : 4.12% respectively.
Male 13.49 (86.28%)
Ownership by No. in lakh
Female 2.15 (13.72%) type of Religion:
Total 15.64 (100%)
Hindu 12.70 (81.22 %)
No. of women 2.15 (13.72%)
enterprises Muslim 1.43 (9.11%)
From the angle of community Sikh 0.52 (3.31%)

status, 7.60% of the enterprises were
owned by Scheduled Caste (SC) Christian 0.64 (4.12%)
Annual Report
entrepreneurs, 2.87% by Scheduled
Jain 0.08 (0.52%) 2010-11
Tribe (ST) entrepreneurs and 38.28%
by entrepreneurs of Other Backward
Classes (OBCs). Thus, 48.75% of the Buddhist 0.01 (0.07%)
working units in the registered MSME
Others 0.26 (1.64%)
sector were being owned by socially
backward classes.
The main findings of the census are
Ownership by No. in lakh
type of Social given in Annexure IV (a). Details in
Category: respect of Industry Sector at 2-digit
level of NIC classifications are given
Scheduled 1.19 (7.60%)
Caste(SCs) at Annexure IV (b).
Scheduled 0.45 (2.87%)

Tribe(STs)
OBCs 5.99 (38.28%)
Others 8.02 (51.26%)
MSME 25
Annual Report
2010-11
Shri Virbhadra Singh, Union Minister of MSME addressing the confrence

of FISME in New Delhi
26 MSME
CHAPTER III
POLICY INITIATIVES
3.1 IMPLEMENTATION OF have issued the Notifications

MICRO, SMALL AND MEDIUM nominating authority for
ENTERPRISES DEVELOPMENT receiving Entrepreneurs
(MSMED) ACT, 2006 Memorandum for MSEs.
3.1.1 The MSME Development Act, (ii) Notification of Rules of
2006 came into being w.e.f. 2nd MSEFC: All States & UTs
October 2006. Subsequently, both with the exception of

Annual Report
the Central and State Governments Arunachal Pradesh, Assam, 2010-11
have taken effective steps towards Manipur, Meghalaya,

implementation of the Act. While Mizoram, Nagaland, Tripura,
the Central Government has framed Uttarakhand, Chandigarh and
a number of Rules and issued Lakshadweep have issued
Notifications in respect of the Act, the Notifications providing
different State Governments have for Rules of Micro and Small
also issued notifications under the Enterprises Facilitation
Act as detailed below:- Council (MSEFC).
(i) Notification for Authority (iii) Notification of Constitution of
for receiving Memoranda for Micro and Small Enterprises
Micro and Small Enterprises Facilitation Council (MSEFC):
(MSEs): All States & UTs except All States & UTs except
Meghalaya and Mizoram Assam, Manipur, Meghalaya,
MSME 29
Chapter III - Policy Initiatives
Mizoram, Nagaland, Sikkim, etc. However, with the gradual

Tripura, Uttarakhand opening up of the economy, de-
and Lakshadweep have reservation had to be resorted
issued the Notifications for to for providing opportunities
constitution of Micro and to MSEs for technological up-
Small Enterprises Facilitation gradation; promotion of exports
Council (MSEFC). and achieving economies of scale.
Accordingly, the MSEs are being
3.2 RESERVATION / encouraged for modernization for
DE-RESERVATION OF enhancing their competitiveness
PRODUCTS FOR MANU- for facing the challenges of
FACTURE IN THE MICRO AND liberalization and globalisation of
SMALL ENTERPRISE SECTOR the economy.
Annual Report
2010-11
3.2.1 The Policy of Reservation
3.2.2 The items are reserved/
of Products for Exclusive
de-reserved in accordance with
Manufacture in SSI (now MSEs)
Section 29(B) of the Industries
was initiated in 1967 with
(Development & Regulation) Act,
the objective of achieving
1951, which, inter-alia, provides
socio-economic development,
for the constitution of an Advisory
through development and
Committee headed by the Secretary
promotion of small units all over
(MSME). The Advisory Committee
the country. This was expected
makes its recommendations for
to counter the challenges of
reservation/de-reservation in light
regional industrial imbalances,
of the factors like economies of scale;
employment generation
level of employment; possibility
through self-employment
of encouraging and diffusing
ventures, increased productivity,
entrepreneurship in industry;
30 MSME
prevention of concentration of enterprises for overcoming

economic power to the detriment competition in the global markets
of the common interest and any and facing challenges being posed
other factor which the Committee by the entry of the multi-nationals in
may think appropriate. At present the domestic markets, the Ministry of
only 20 items are reserved for MSME is implementing the National
exclusive manufacture in micro Manufacturing Competitiveness
and small enterprise sector. Programme (NMCP).
A list of items reserved for 3.3.3 The objective of NMCP is
exclusive manufacture in micro to ensure healthy growth of the
and small enterprise sector is at MSME Manufacturing Sector. The
Annexure V. 10 components of the Programme
dealing with the firm level
3.3 NATIONAL Annual Report
competitiveness are being
2010-11
MANUFACTURING
implemented in the Public-Private-
COMPETITIVENESS PROGRAMME Partnership (PPP) mode. The 10
(NMCP) components of NMCP address the
entire gamut of manufacturing
3.3.1 Providing competitive edge
in the sector. The details of the
to the units in the MSME Sector in
components of the Programme and
the global environment has been the status of their implementation
one of the important cornerstones are shown in the Table 3.1: -
of the policies being pursued by
the Government for sustenance of 3.4 Prime Minister’s Task Force
the sector. on Micro, Small and Medium
Enterprises (PM Task Force)
3.3.2 With a view to building
the capacity of the Indian micro, 3.4.1 The Prime Minister had
small and medium manufacturing announced setting up of the
MSME 31
TABLE 3.1: Components of NMCP and Current Status
Sl. Component with Short Name Current

No. Status
1. Marketing Support / Assistance to MSMEs (BAR CODE) Operational
2. Support for Entrepreneurial and Managerial Operational

Development of SMEs through incubator (INCUBATOR)
3. Setting up Mini Tool Room & Training Centres (MTR) Operational
4. Building Awareness on Intellectual Property Rights (IPR) Operational
5. National Programme for Application of Lean Operational

Manufacturing (LEAN)
6. Enabling Manufacturing Sector to be Competitive Operational

through Quality Management Standards and Quality
Annual Report Technology Tools (QMS/QTT)
2010-11
7. Technology Upgradation and Quality Certification Operational
Support to SMEs (TEQUP)
8. Marketing Assistance for SMEs and Technology Approved

Upgradation Activities (MARKETING)
9. Design Clinic Scheme to bring Design expertise to the Operational

Manufacturing sector (DESIGN)
10. Promotion of ICT in Indian Manufacturing Sector (ICT) Operational
Task Force in August, 2009 when 2nd September 2009 to reflect on the
representatives of prominent issues raised by the associations and
MSME associations had met him to formulate an agenda for action after
highlight their issues and concerns. discussions with all stakeholders.
Accordingly, the Task Force under Its members included Member,
Shri T.K.A. Nair, Principal Secretary to Planning Commission, Secretaries
Prime Minister was constituted on of concerned Government
32 MSME
Departments, Deputy Governor, RBI, Kashmir. The implementation of these

Chairman and Managing Director, recommendations is being monitored
SIDBI and representatives of MSME periodically by the Steering Group
associations. The Report of the Task constituted under the Chairmanship
of Principal Secretary to the Prime
Force on Micro, Small and Medium
Minister. Further, a Council on Micro,
Enterprises was presented to the
Small and Medium Enterprises (MSMEs)
Hon’ble Prime Minister on 30th
under the chairmanship of Hon’ble
January, 2010. The report provides Prime Minister was constituted to
a roadmap for the development review the development of the MSME
and promotion of the Micro, Small sector periodically.
and Medium Enterprises (MSMEs).
3.5 RAJIV GANDHI UDYAMI
3.4.2 It made several MITRA YOJANA
recommendations including
institutional changes and detailing 3.5.1 The objective of Rajiv Gandhi
Annual Report
of programmes, to be achieved in a Udyami Mitra Yojana (RGUMY) is 2010-11
time-bound manner. In addition, it to provide handholding support
suggests setting up of appropriate and assistance to the potential first
legal and regulatory structures to generation entrepreneurs, who
create a conducive environment have already successfully completed
for entrepreneurship and growth Entrepreneurship Development
of micro, small and medium Training Programme (EDP) / Skill
enterprises in the country. Development Training Programme
(SDP)/ Entrepreneurship-cum-Skill
3.4.3 The detailed recommendations
Development Training Programme
covered 6 major thematic areas (ESDP) /Vocational Training
including credit, marketing, labour, Programmes (VT), through the
rehabilitation and exit policy, selected lead agencies i.e. ‘Udyami
infrastructure, technology and skill Mitras’, in the establishment
development and taxation. A separate and management of the new
section covered the development of enterprise, in dealing with various
MSMEs in the North-East and Jammu & procedural and legal hurdles and
MSME 33
in completion of various formalities guidance and assistance to first

required for setting up and running generation entrepreneurs as well
of the enterprise. A new service as other existing entrepreneurs
component has been added under
to guide them regarding
the scheme of RGUMY, which is as
various promotional schemes
follows:
of the Government, procedural
3.5.2 A ‘Udyami Helpline’ (a Call formalities required for setting up
Centre for MSMEs) with a toll free and running of the enterprise and
No. 1800-180-6763 has been set up help them in accessing Bank credit
to provide information, support, etc.
Annual Report
2010-11
The Prime Minister, Dr. Manmohan Singh launched the MSME Udyami Helpline by
making an inaugural call, in New Delhi on August 21, 2010.
3.6 REFORMS IN KHADI SECTOR KVIC was signed for loan assistance
3.6.1 An agreement between amounting to US $ 150 million to KVIC
Asian Development Bank (ADB) and from ADB over a period of three years
34 MSME
for implementing a comprehensive incomes for spinners and weavers;

Khadi Reform Programme. This Reform increasing employment; enhanced
Programme aims at revitalising artisans welfare and gradually
the khadi sector for enhanced enabling khadi institutions to
sustainability of khadi; increasing stand on their own feet.
Annual Report
2010-11
Shri Kailash Vijayvargiya, Minister for Commerce and Industries, Govt. of

Madhya Pradesh addressing the participants in a State level convention on
Agro Technology (MSMEs)
3.6.2 A new scheme titled ‘Market and khadi products with the approval
Development Assistance (MDA)’ of Cabinet Committee on Economic
Scheme was introduced w.e.f. Affairs (CCEA). Implications (a) direct
01.4.2010 replacing the erstwhile payment to artisan (b) Non seasonal
system of ‘Rebate on Sale’ of khadi – year round.
MSME 35
3.7 STRATEGIC ACTION PLAN the size of the enterprises, variety of

OF MINISTRY OF MICRO, SMALL products and services produced and
AND MEDIUM ENTERPRISES the levels of technology employed.
Cutting across all sections of
3.7.1 CONTEXT production and services, MSME
The role of micro, small and sector is truly a strategic asset for
medium enterprises (MSMEs) in the the economy of the country.
economic and social development On one hand, we have the village
of the country is well established. and rural industries including Khadi
The MSME sector is a nursery of industry. Locationally, they are
entrepreneurship, often driven by primarily in the rural landscape and
individual creativity and innovation. provide an important ingredient of
This sector contributes 8 per cent the local economic eco-system. In
of the country’s GDP, 45 per cent of a significant number, they also are
the manufactured output and 40 inter-related and inter-dependent
Annual Report
2010-11
per cent of its exports. The MSMEs on the agricultural/horticultural/
provide employment to about other forest and non-forest produce.
60 million persons through over It adds wealth to the local economy
26 million enterprises producing and at the same time provides
over six thousand products. The major employment and in the long
labour to capital ratio in MSMEs run acts, as a bulwark against rural
and the overall growth in the MSME to urban migration. The challenge
sector is much higher than in the here is to provide grass-root and
large industries. The geographic affordable technologies and ensure,
distribution of the MSMEs is also at least primary processing at the
more even. Thus, MSMEs are village/cluster level to add value and
important for the national objectives reduce the costs of logistics. With the
of growth with equity and inclusion. increase of educated youth power
It would be an understatement to at the village level, the second
say that MSME sector in India is challenge is to train them to set up
highly heterogeneous in terms of their own rural level enterprises and
36 MSME
encourage them through policy as A non-level playing field for MSME

well as fiscal instruments. Diverting Sector, facing the odds like reluctance
unproductive labour forces from of banks/financial institutions for
agriculture sector to productive providing credit to MSMEs, lack of
enterprises would add to rural access to technology, inadequate
economy and simultaneously reduce marketing capabilities, etc., has
the disguised unemployment in pushed them towards the edge.
agricultural sector. Their threshold tolerance level to
vicissitudes of markets and vagaries
On the other hand, in extreme
of banking system is so small that
contrast and the opposite side of any adverse environment can have
the spectrum are the Micro, Small serious consequences leading to
and Medium Enterprises who are sickness or even closure.
producing an extremely wide
With the addition of “Enterprises” as
ranging variety of goods which are
a definitional context of the ambit Annual Report
exported as well as have to reach 2010-11
of the Ministry from 2006, (since the
out to the domestic consumers,
MSMED Act came into being) as also
withstanding the removal of
given the fact of the services sector
protectionist measures such as growing at a far higher pace than
reservation for small scale as well the manufacturing sector, it poses
as lowering of entry barriers for completely different challenges
imported goods due to the WTO for the Ministry for pro-active
regime in place. promotion of the Services Sector.
Withstanding such internal (from Given this extremely wide gamut of
big domestic industries) and the constituency of the Ministry, the
external competitions (imports) challenges are huge and exciting.
requires and necessitates them to 3.7.2 Vision, Mission, Objectives
be innately competitive whether and Functions
in terms of design, manufacturing
The vision of the Ministry of Micro,
competence, marketing or market
Small and Medium Enterprises is
access.
MSME 37
to have a vibrant Micro, Small and enterprises. Our avowed mission is to

Medium Enterprises (MSME) sector remove roadblocks that prevent the
in India. establishment and growth of MSME
sector whether the roadblocks are
It is envisioned that the sector will
internal (policy/fiscal/investment/
have a healthy growth with a large
faulty tax regimes) or external
number of enterprises being set up
(misuse of WTO regime including
and their graduation by upscaling
dumping, lack of access to export
into small and medium enterprises.
markets, etc.).
This would be accompanied by
enhancement of their contribution Presently, the MSME sector is
to the GDP, manufacturing output, associated, in public perception,
employment and exports. For with low quality standards. It is
those already established, their envisioned that the MSME sector will
upward graduation to next higher be upgraded through modern and
Annual Report
levels of investments and market new technologies to achieve global
2010-11
shares would be welcomed. On an quality standards. Niche markets
organizational level, transition of will be identified and developed
the sector from a predominantly for MSME products, including khadi
unorganized to the organized and coir products.
sector, would be welcomed.
The objective of the Ministry is
The Mission of the Ministry is to to support and develop existing
promote growth and development MSMEs; creation of new enterprises;
of Micro, Small and Medium support to Khadi, Village and Coir
Enterprises, including Khadi, Village industries. The gamut of these
and Coir industries, in cooperation objectives is a wide spectra of
with concerned Ministries / support to entrepreneurship and
Departments, State Governments skill development of MSMEs and
and other stakeholders by providing such other ancillary objectives so as
support to existing enterprises to create a complete promotional
and encouraging creation of new eco system.
38 MSME
The functions of the Ministry include provision for implementation

inculcation of entrepreneurial of the said policy.
culture amongst youths, facilitation (ii) The State Governments who
of credit flow to MSMEs, improving shape various Government
competitiveness of MSME, policies and take initiatives are
promotion of MSMEs through also a major external factor.
cluster-based approach, marketing Merely a simple political act of
support to MSMEs, creation of new diverting power from industrial
Micro Enterprises through Prime units to agricultural sector
Minister’s Employment Generation effectively shuts down units
Programme (PMEGP), support to (A very familiar trend). It has
Khadi and Village Industries (KVI) also been observed that even
sector, support to Coir Industry, though the clusters of MSME
entrepreneurship and skill pay a very high percentage
development. of taxes, their infrastructural Annual Report
conditions are in an extremely 2010-11
3.7.3 Assessment of the Situation poor shape because the
3.7.3.1 External Factors plough-back by the State
Government does not take
As MSMEs are an integral part of the place. Thus, populism is in an
overall manufacturing and services adversary to the development
value chains, both at the domestic of healthy clusters of MSMEs.
and global level, several factors have
The economic externalities
a bearing on the growth of the sector.
which affect the sector are the
Any adverse policy regime may have
following:-
a cascading disastrous impact on the
MSMEs or a specific sub-sector. This (i) Overall domestic and global
is because of the low threshold of growth trends;
tolerance levels, which characterize (ii) Domestic tax regime,
MSMEs. These include: particularly advent of Goods
(i) The availability (or rather the and Service Tax and Direct Tax
lack of it) of adequate budget Code;
MSME 39
(iii) Policies governing the credit is made in skilling the man-power,

flow to the sector; post empowerment, it leads to
(iv) Trade policies, including free migration once again due to lack
trade agreements with other of opportunity. North- Eastern
countries; States, Bihar, Jharkhand etc. suffer

from this handicap. Up scaling
(v) Labour policies, particularly
the skill, infusion of new skill and
multiplicity of labour laws and
entrepreneurship orientation are
procedures for compliance of
the major challenges before the
various labour regulations;
Ministry.
(vi) Availability of infrastructure
The role of technology, as an external
facilities, including power,
factor, is very significant.
water, roads, etc.;
Annual Report (vii) Availability of critical raw Information Technology is a thread
2010-11
material at competitive prices; which runs through the entire
sector. Access to information
(viii) Availability of skilled manpower
technology enabled services at an
for manufacturing, services,
affordable cost would bring the
marketing, etc.
MSME sector on a level playing
The demographics as have been field with bigger players. Various
affected by the political landscape enabling software from designing
in the past provide another to customer management and
interesting externality which can sales management are still beyond
adversely impact. Thus, in the States the reach of the MSME due to their
where there has been a history of higher cost. The challenge before
migration due to low economic the Ministry is to effectively enable
activity, new units find it very trends in cloud computing which (as
difficult to find skilled man-power. per Gartner) have reached a maturity
On the other hand, if investment level, within the reach of MSME.
40 MSME
Innovation being the strength of the 3.7.3.2 Stakeholders

MSME sector, it would be important to
The sector has a wide range of
provide financial support to promote stakeholders including the regulators,
innovation and upscale them to facilitators and the beneficiaries.
withstand global competitions. These stakeholders are listed below:
Various productivity improvements (i) MSMEs (both existing and

through application of industrial prospective) and their
Associations;
engineering concepts as well as
technological upgradation of the (ii) Large enterprises including
multinationals (as procurer of
MSMEs, whether through purchase of
goods and services);
new technologies as well as machines,
(iii) State/UT Governments;
would be another challenge. The
creation of a Technology Upgradation (iv) Central Ministries/
Departments; Annual Report
Fund enabling the MSME, (which 2010-11
generally suffer from low level of (v) Banks/Financial Institutions;
technology) to access world class (vi) Entrepreneurship and Skill
technology would minimize external Development Institutions, both in
the public and private sector;
risks to tolerable levels.
(vii) Research and Development
With the TRIPS regime as well as the
Institutions;
WTO regime, the legal contexts have
suddenly become very important. The (viii) Educational Institutions;
complexity can defy comprehension (ix) Organisations under

by average MSME, remedy can administrative control of the
be beyond affordability and both Ministry.
together can translate into serious The role of the most major
threat and in-conducive functional stakeholder i.e. MSME is obvious
environment. as they are The Client Group. But
MSME 41
they have to be helped in gaining a and thus have natural linkages with
momentum of their own after which large enterprises.
they would become a juggernaut.
There exists a strong institutional
The other stakeholders which are
structure at the State and Central
in the Government space, through
level for the promotion and
various policies can make life
development of the sector. There
difficult and may hinder in letting
is a well-spread network at the
the MSME gain this critical mass and
National, State and the local level for
momentum. A small Notification
providing a comprehensive range of
permitting the import of a specific
support services under marketing,
item, ostensibly under WTO regime
technology, finance, infrastructure
can give a problem to the entire
and skill development. The existing
sub-sector. Therefore, the need is
schemes/programmes of the
to be extra-cautious.
Central and State Governments span
Annual Report
3.7.3.3 Strengths and Weaknesses across major areas of operations of
2010-11
MSMEs. These are administered by
The MSME sector is often driven
a workforce who are qualified but
by individual creativity. A major
can be upgraded with additional
strength of the sector is its potential
inputs. An apex consultative body
for greater innovation both in
has been set up at the national level,
terms of products and processes.
namely, National Board for MSMEs,
An inherent strength of the sector
comprising of representatives of
is that these enterprises can be
all sections of stakeholders for
set up with very small amounts of
providing guidance/inputs in
investments and have the locational
policy formulation and programme
flexibility to be located anywhere
implementation.
in the country. Their employment
potential is higher compared to Having said so, the sector suffers
large enterprises and are presently from a number of constraints
estimated to employ 6 crore persons. and weaknesses. Of the 2.6 crore
They are amenable to ancilliarisation enterprises, a predominant number
42 MSME
is in the unorganized sector, often The present structure also suffers

located in non-conforming urban from poor delivery of services
zones. The sector is heterogeneous at the field level. The schemes
with pockets of high technology and programmes have limited
enterprises but majority suffering outreach with a large number
from low technology base resulting of very small schemes. There is a
in low productivity and poor quality lack of coordination among the
of products. The units being small in various organisations involved in
size also have poor access to equity the promotion of MSMEs, including
and credit. organisations of the State/UT
Most of the time, the equity is Governments and poor linkages
coming from savings and loans from with the institutional stakeholders
friends and relatives rather than in the private sector. Absence
through banking systems. Very of a suitable exit mechanism is a
often, the credit is coming from major constraint for the higher end Annual Report
operations or domestic savings entrepreneurs of the MSME sector. 2010-11
rather than established systems of

The lack of reliable and updated
cheap banking credit for working
data base is another area of
capital. This problem is particularly
concern as it inhibits monitoring
acute for the village industries
of development initiatives and
as well as the lower end of micro
formulation of appropriate schemes
industries.
to meet the differential needs of
While we have large pool of human the heterogeneous profile of the
resources, this sector continues to beneficiaries.
face shortage of skilled manpower
A major systemic weakness noticed
due to lack of paying capacity
is the duplication of same/similar
and poor managerial capabilities.
programmes run by various
Another major weakness is absence
of marketing channels and brand Ministries/Departments for the
building capacity. same target groups. Thus whereas
the Coir Board is situated in the
MSME 43
ambit of the Ministry of MSME, success story based approach

other Departments also invest in for changing this mindset and
programmes for promotion of coir overcome this problem.
industry. Similar issues are found
Credit availability remains one of
for village industry sector where
the most major concerns. Whereas,
major investments, which are not
the Government of India has taken
fully coordinated, are taking place
several steps to increase the lending
from the Handicrafts Institutions as
of this Sector, this remains even now
well as Rural Development set up.
the most difficult problem faced by
Similar issues are being faced in
the MSME.
various micro and small enterprise
based sectors such as leather, There is a cyclical nature of
handicrafts, etc. A coordinated availability of funds to the MSME
effort can significantly reduce the sector. This is determined by
Annual Report risk of duplication and the confusion larger issues of international and
2010-11 it causes in the client group. domestic monetary policies, fiscal
policies and other parameters
A major weakness is a heritage beyond the pale of the sector. In
weakness. Due to the protectionist, times of a liquidity crunch, lack of
subsidy-driven, reservation based liquidity in the financial system,
regime, the mindset of the sector even though caused by external
continues to demand similar legacy factors, can quite dry up the flow of
treatments. It is interesting to note credit to the sector. The most major
that this tendency is gradually dependence of the sector is for the
dying out in the newer generation working capital requirement which
of entrepreneurs but the thought directly impacts their production
leaders from this newer generation cycle. As stated elsewhere, the
are yet to emerge. We can term tolerance threshold levels of this
it as a major weakness but also a sector are very low. Hence, any
transient weakness, which may liquidity crunch has an immediate
require extensive workshops/ and disastrous impact. During the
44 MSME
last global economic crisis, this was 3.7.4 Outline of the Strategy
seen to be a major problem area,
3.7.4.1 Potential Strategies
affecting the MSME for their day-to-
day requirement of working capital. At a macro level there is need
The MSME thus need to be insulated for a strategy for a horizontal
from such credit squeezes in times geographical spread of the various
of adverse monetary conditions. outreach programmes for balanced
growth. On the other hand, there
3.7.3.4 Need to Learn is also a need to emphasize the
The strengths and weaknesses inclusive nature of any strategy to
provide learning for the future target women entrepreneurs and
strategy. other weaker sections of the society.

It is only by such horizontal and
Thus the learning agenda is at
vertical inclusiveness that we can
several levels. It would be in the Annual Report
attain the objectives of this mission
creation of insular layers to protect 2010-11
with equity.
the MSME from the vagaries of
global/financial markets and misuse The potential strategies would
of WTO/TRIPS regimes. There is mainly rest on five pillars, as it were,
also need to learn from best of concurrently. They are (not in order
the breed international practices of priority):
both in technology and marketing. i) Skill development

On another level, creation and ii) Markets
professionalization of efficient
iii) Technology
organizational systems even at
iv) Infrastructure
the lowest level and promoting
innovations at grass root level, v) Credit availability
knowing full well that the success There are individual analyses and
of some of them is only an enigma proposed actions which are listed
in futuris. below including new knowledge-
MSME 45
driven initiatives and actions which provide handholding and advisory

can leverage our strength and lower services to the MSME. All training
the susceptibility of the MSME to institutions of Ministry of MSME
external threats. would be brought under single
umbrella, in terms of standardized
The Ministry would focus on its
syllabi, updated course content
efforts for giving financial assistance
and market sensitive training.
for Entrepreneurship Development
Depending upon the individual
Training Programmes (EDPs), Skill
strength, the national level
Development Training Programmes
institutions would endeavour to
(SDPs), Entrepreneurship-cum-Skill
develop into separate Centres of
Development Training Programmes
Excellence in their chosen areas.
(ESDPs) and Training of Trainers
Programmes. Centre for Excellence Study would be conducted to
Annual Report would be set up at national level see the impact of “Assistance to
2010-11
for standardization of training Training Institutions Scheme” of
curriculum, training of trainers the Ministry and the efficiency
etc. Financial assistance to States/ of private/Government Partner
UTs for their efforts to set up Institutions empanelled by national
Entrepreneurship Development level Institutions.
Institutes would be enhanced with Database of the trained persons

more focus on naxalite affected would be created and linked to
areas, hilly areas of Jammu & Kashmir, Job Exchange to give the benefit
Himachal Pradesh and Uttarakhand, of training to the trainees and the
North Eastern Region and difficult industry. Industry would be enabled
areas e.g. Andaman & Nicobar group to access the database of trained
of Islands, Lakshadweep group of manpower.
Islands, etc. MSME Development
The employment generation is
Institutes would be converted
another area where MSMEs play a
into autonomous organisations to
46 MSME
pivotal role. Keeping this in view, it is product differentiation,

Prime Minister’s Employment incremental feature of the product,
Generation Programme (PMEGP) a branding issue, customized and
national level credit linked subsidy tailor-made services, clientele
scheme, was introduced in August building, post sale servicing etc. The
2008. The Ministry of MSME would existing scheme of support requires
take initiatives for further improving to be harmonized and rationalized
the performance under PMEGP to have a focused approach.
through implementing IT-enabled The existing marketing support
application tracking system and institutions would also be revisited
related data collection. A special with a view to strengthening the
effort would be made by creating marketing infrastructure for the
a web-portal as one-stop shop for MSME sector and mainstream it
multitude of products of PMEGP to the major consuming areas and
Annual Report
units to facilitate buyer-seller patterns. 2010-11
interaction.
E-Commerce has emerged as
Marketing is one of the critical areas
a powerful tool world over for
where MSMEs face problems. In the
reaching out to buyers in business
global arena, they do not have the
as well as consumers worldwide.
strategic tools and the means for
Territories/borders have been
their business development, unlike
obliterated with the advent of this
the large enterprises. Constant
new technology. For giving better
changes in the market dynamics
access to MSME sector to the market,
due to technological changes and
Ministry has already promoted a
globalization have had a profound
Business-to-Business (B2B) Portal in
impact on the competitiveness of
NSIC. Now the endeavour would be
the MSMEs. The whole gamut of
to have a robust and inclusive, best
marketing strategy for any product
of the breed, Business-to-Consumer
is required to be addressed whether
(B2C) Portal in addition to the
MSME 47
above. The challenge would be to competitive. This is the tool

create a logistics supply chain and to enable them to take on the
standardization of the products to onslaught of competitive marketing
service the customers. strategy of large scale sector as
well as multinationals. The Cluster
The National Small Industries
Development Scheme of the
Corporation Ltd. (NSIC) would be
Ministry of MSME addresses all the
strengthened by providing more
sectors of MSE clusters across the
equity support for their efforts to
country. The awareness about the
create market for products of MSMEs.
scheme would be increased among
KVIC would be strengthened to
various stakeholders including
provide market to village industries.
State Governments. More clusters
The schemes of the Ministry to
will be undertaken for soft and hard
provide financial assistance to
interventions including diagnostic
Annual Report MSMEs for participation in domestic
study, infrastructure development
2010-11 and international exhibitions/ trade
and Common Facility Centre
fairs would continue in the XII Plan
projects.
also with more outlay.
The critical factor that drives growth
A policy has been formulated,
in MSME sector is technology. In
awaiting Cabinet approval, to ensure
the present economic scenario of
that 20% of the procurement by the
globalised competitiveness, it is
different Ministries/ PSUs is made
the technological edge that will
from MSME sector mandatorily.
determine the winners. In view of
Challenge here would be to upscale
this reality, the Ministry of MSME is
the technical capabilities of MSMEs
initiating a number of programmes
to meet quality standards and
and schemes for technology
delivery schedules.
development of the sector. It has
The cluster development approach recently introduced 10 innovative
can make the industry more schemes under the National
48 MSME
Manufacturing Competitiveness ix. Technology and Quality

Programme (NMCP) covering entire Upgradation Support to
gamut of manufacturing in the MSMEs
sector aiming to develop global x. Promotion of ICT in MSME
competitiveness among Indian Manufacturing Sector (ICT)
MSMEs. These ten schemes are:
These schemes under NMCP
i. Marketing Support/Assistance
would get priority of the Ministry
to MSMEs (Bar Code)
and would provide competitive
ii. Support for Entrepreneurial and
edge to the MSME units in future.
Managerial Development of
SMEs through Incubators In addition, the Ministry is also
implementing Credit Linked Capital
iii. Enabling Manufacturing Sector
Subsidy Scheme for Technology
to be competitive through
Quality Management Standard & Upgradation with the aim to
Annual Report
Quality Technology Tools (QMS/ facilitating Technology Upgradation 2010-11
QTT) of Micro and Small Enterprises by

providing 15% capital subsidy on
iv. Building Awareness on
institutional finance availed by them
Intellectual Property Rights (IPR)
for induction of well-established
for MSME
and improved technology in
v. Lean Manufacturing
approved sub-sectors/products.
Competitiveness Scheme for
MSMEs These schemes would not only
vi. Mini Tool Rooms (MTR) continue in the XII Plan but outlay
would be enhanced to make MSMEs
vii. Design Clinic Scheme for
more competitive.
design expertise to MSMEs
Manufacturing sector (DESIGN) a) The existing administrative
structures seem to be
viii. Marketing Assistance &
reasonably adequate to meet
Technology Upgradation Scheme
the challenges. However,
in MSMEs.
MSME 49
delivery systems sometimes tool for better targeting of

suffer due to clogging of schemes and data collection.
the pipelines. For a more c) For expanding the
coordinated institutional outreach of the schemes/
framework for the promotion programmes, the Ministry
and development of the will take a comprehensive
MSME sector, the Ministry will review of all the existing
undertake a comprehensive schemes/programmes. The
diagnostic study. Besides schemes/ programmes with
analyzing the existing overlapping objectives will
institutional framework, be merged and those that
the study will also look have outlived their utility will
into the best international be weeded out. In place of
practices in this regard. implementing a number of
Annual Report
2010-11
A sensitized mechanism small schemes, the Ministry
would be put in place which will provide focused attention
sends alerts for de-clogging on few large schemes to have
of the delivery pipelines. a discernible impact on the
Involvement of private sector, beneficiary group.
wherever feasible, as well
d) Leveraging the benefit of
as strengthening of District
public-private partnership (PPP)
Industries Centres (DICs) of
approach in a cluster has been
States are other possible
recognized as one of the best
strategies.
instruments for effective policy
b) Strengthening and
intervention. The existing Micro
empowering the MSME
and Small Enterprises-Cluster
Associations, to be appropriate
Development Programme (MSE-
delivery channel can be
CDP) including Industrial Infra-
a supplemental strategic
structure Development Scheme
50 MSME
would be pursued more vigorously helpful for trend-spotting and trend

with renewed guidelines under PPP analysis. It would also be a powerful
mode to cover as many as possible tool for any mid-course correction
clusters all over the country for all of the strategy, if required. It would
round sustainable growth of the be agreed that this strategy would
MSMEs. also be shaped by global and
domestic trends. Hence no MSME
e) The Ministry would take
strategy can be a frozen fixity but
steps, including amendments, to
has to be dynamic and evolving in
effectively implement the MSMED
nature.
Act, 2006.
3.7.5 Engaging with Stakeholders
f) Facilitate start-ups through
appropriate schemes for The draft Strategic Plan
handholding and credit support. was discussed in MSME Board

meeting. It was also circulated to all Annual Report
g) Provide network of testing 2010-11
members of the MSME Board, MSME
facilities to ensure quality standards
Associations, Principal Secretary/
of MSME products.
Secretary (Industries) of States and
h) Separate funding window Ministries of Government of India
for MSME sector through banking and subordinate organisations
channels by bringing a new of the Ministry. The engaging of
scheme; stakeholders would be continued
i) Ministry undertakes a Census by ensuring regular meetings
of MSME industries on a five year through the existing mechanism
basis. For converting this into a of National Board for MSMEs and
dynamic and reliable data base, the the governance structures laid
Ministry will undertake an annual down under individual schemes.
sample survey for the MSME sector, Institutionalizing annual meetings
to keep relevant its Census of with State/UT Governments, MSME
MSME industry. This would also be Associations and Banks/ Financial
MSME 51
Institutions and establishing The MSME in the country need to learn

coordination would be done. the best of breed manufacturing
Since, the stakeholders’ and marketing practices from
engagement is a constant and across the world. Thus, whether
continuous process apart from it is a cluster cohesiveness and
the above mentioned institutional competitiveness of the Italian
mechanism, new innovative web- industrial districts, availability of
based interactivity would also be mentoring and technical advice as
established which would give such prevailing in Japan, or, institutional
interaction and engagement a far context of the Small Business
more dynamic meaning. It is also Administration of USA, they have a
envisaged that greater involvement significant learning contribution to
of training and R&D Institutions give to India.
Annual Report and large enterprises will be built The second important learning is
2010-11 into the schemes and programmes. envisaged to be peer group learning.
An interactive website and an Best practices in, say, Vaniyambadi
IT-enabled grievance redressal (of effluent treatment) (Tamil
mechanism will be introduced for Nadu) needs to be replicated also
public feedback. in Tengara (West Bengal). Today,
3.7.6 Knowledge and Capability there is no such institutionalized
mechanism for such sharing of
The knowledge and capabilities
experiences. Institutionalized
will be built up through proper
mechanisms would be built for the
documentation, introduction of a
same. The Ministry would organize
Management Information System
it through field offices such as
(MIS) in all major schemes, regular
the Office of the Development
training of programme officers
Commissioner (MSME) and other
and capacity building of MSME
instrumentalities of the Ministry.
Associations.
52 MSME
3.7.7 Priority Areas and give weightage, the following
For quantifying the initiatives is the relative weightage:-
i) Marketing as listed above 20

ii) Skill Development 20
iii) Technology upgradation 20
(external factors apply Such as availability of budget and
creation of technology upgradation fund which is in pipeline)
iv) Infrastructure 20
(State Government, local authorities required to provide quality
and adequate infrastructure to the MSME sector).
v) Availability of Credit 20
(External factors impacting credit are banking and financial
institutions, higher interest rate on credit, adverse attitude of Annual Report
bankers towards MSME sector etc.)
2010-11
TOTAL 100
Each of these priority areas is equally Institutions and upscaling

important for the MSME sector and training facilitation especially
in the rural and remote areas;
therefore, strategic initiatives for
each area have been given equal (ii) Better marketing support to
weightage. All the above five areas MSMEs and strengthening/
are suitably acceptable (as they are creation of existing/
demand driven) as well as easy to new marketing support
implement. infrastructure/institutions;
3.7.8 Implementation Plan
(iii) Technological support to
The Implementation Plan would
MSMEs;
cover the following areas:
(iv) Amendments in the MSMED
(i) Strengthening Training
Act, 2006 for providing an exit
MSME 53
mechanism to the MSMEs, (x) Introducing a scheme for

making the decision of the supporting the States to
Facilitation Council binding set up Rehabilitation Funds
and final, etc.; and operationalise appropriate
schemes for the rehabilitation
(v) Strengthening of District of units temporarily rendered
Industries Centres (DICs) with sick due to circumstances
provision of modern IT-enabled beyond their control;
communication facilities, (xi) Up scaling existing schemes
across the country to improve or evolving new schemes to
the delivery of services at the assist MSMEs in acquisition,
field level; adaptation and innovation of
modern clean technologies
(vi) Cluster Development
as well as creation of a
Programme would be
Annual Report Technology Bank/product
strengthened. MSME
2010-11 specific technology centres to
Associations would be involved
enable them to move up the
in Cluster Development
value chain;
Programmes;
(xii) Encouraging innovations
(vii) Strengthening of khadi through setting up of large
institutions through number of business incubators
implementation of the Khadi in educational institutions of
Reform and Development repute;
Programme; (xiii) Expanding the outreach of the
(viii) Introduction of a Public major schemes/programmes of
Procurement Policy for MSMEs the Ministry, including National
for assisting the MSMEs in Manufacturing Competitive-
increasing their market share; ness Programme (NMCP),
Prime Minister’s Employment
(ix) Encouraging corporatisation of the
Generation Programme
MSME sector;
54 MSME
(PMEGP), Scheme of Market Document (RFD)

Development Assistance
RFD for the future years would
(MDA) for Khadi, Micro and
be prepared keeping in view the
Small Enterprises-Cluster
strategic plan of the Ministry.
Development Programme
(MSE-CDP), Credit Linked 3.7.10 Cross departmental and
Capital Subsidy Scheme cross functional issues
(CLCSS), Credit Guarantee
Cross departmental and cross
Scheme, etc. functional issues are addressed as
The resources required for the same under:
are reflected in the Draft Annual
Linkage with Potential Challenges
Plan 2011-12 as well as in the next
likely to be addressed in the 12th
proposed Five Year Plan. Detailed Plan
mile-stoning and review points
Annual Report
have been worked for schemes as The following “Twelve Strategy
2010-11
mentioned above and are available Challenges” have been identified
with each implementing line by the Planning Commission for
preparation of the XII Five Year Plan:
agency.
i. Enhancing the Capacity for
The proposed strategy would
Growth
be met by revising the different
Plan schemes of the Ministry after ii. Enhancing Skills and Faster
conducting evaluation studies of Generation of Employment
the schemes. Detailed resource iii. Managing the Environment
requirements will be worked
iv. Markets for Efficiency and
out after studying the report of
Inclusion
evaluation studies of different
v. Decentralisation,
schemes.
Empowerment and
3.7.9 Linkage between Strategic Information
Plan and Result Framework vi. Technology and Innovation
MSME 55
vii. Securing the Energy Future for details mentioned in the preceding
India paragraphs.
viii. Accelerated Development of Identification and management of
Transport Infrastructure cross departmental issues including
ix. Rural Transformation resource allocation and capacity
and Sustained Growth of building issues
Agriculture The draft Strategic Plan was discussed
x. Managing Urbanization in MSME Board meeting, which
xi. Improved Access to Quality is represented by various Central

Ministries, State Governments, and
Education
MSME Associations etc. It was also
xii. Better Preventive and Curative
circulated to Ministries of Government
Health Care
of India and Principal Secretary/
Annual Report Out of above twelve Strategy Secretary (Industries) of States. Thus,
2010-11
Challenges, the Ministry has the Final Strategic Plan has been
substantive role to play in the made after an extensive consultative
following areas: process. However, this is not a static
i. Enhancing the Capacity for document but would evolve further
Growth and further consultative processes
are already institutionalized in the
ii. Enhancing Skills and Faster
form of MSME Board, and other
Generation of Employment
consultative mechanisms.
iii. Markets for Efficiency and
Inclusion The most major cross departmental
issue is regarding resource
iv. Technology and Innovation
allocation. The guidelines for
The linkage with the XII Plan in the making this Strategic Plan have
above four areas would be brought an assumption that there is a
out in the Plan document as per the coordinated merit-based approach
56 MSME
for resource availability. Whereas yet been possible for the individual
structural and policy initiatives are MSME. They would require the help
possible which are non-resource of experts from Government sector
linked, resource availability to help them to get the benefit
becomes a serious issue in spite of of carbon credit. The system has
the critical nature played by this already been established in the
sector. As has been seen in the past, Ministry but the same is required to
a stereo-typed approach through a be strengthened out.
percentage based increase in the Cross functional linkages within
Budget allocation may not be the departments/ offices
best way to help the sector grow to
its full potential. There are a few activities within
the Ministry, where functions
Carbon Credit for MSMEs overlap among various Divisions/
Reaping the benefits of the new Organisations. These functions
are cluster development, training, Annual Report
instruments like carbon credit,
2010-11
environment and ecological balance participation in domestic/
have gained global significance international exhibitions etc. Separate
and MSME sector is required to financial allocations are made activity-
be empowered to face the future wise/ department-wise.
challenges while at cluster level the
Organisational Review and Role of
concern has started permeating
the minds of the policy makers. The agencies and wider public service
MSMEs and the environmentalists, Separate strategic plan, result frame
civil activists in the sector of chemical document and sevottam compliant
and petro-chemical foundry, steel citizen/client charter would be
and iron roiling/forging industry formulated for all the subordinate
etc. while Ministry of MSME has organisations/ responsibility centres
started implementing many of of the Ministry and would be placed
such technological improvement in the public domain. The Ministry
programmes but the benefits of the
would also initiate a Government
scheme like carbon credit have not
Process Reengineering (GPR)/
MSME 57
Business Process Reengineering by making above mentioned MIS

(BPR) exercise to review the online. The other existing system
schemes, the role of line agencies i.e. RFD and Outcome Budget of the
and organizational review to ensure Ministry and its organizations would
effective public service. This would minimize the scope for errors and
address the need for organisational
lapses. There is a scheme under the
review, role of agencies and wider
Ministry i.e. ‘Surveys, Studies and
public service.
Policy Research’ under which burning
3.7.11 Monitoring and Reviewing issues concerning MSMEs and any
arrangements other factors impacting MSME sector
The success will be monitored are regularly studied. The schemes of

and measured through outcome the Ministry would be evaluated by
parameters laid down for each scheme independent agencies to assess their
and their concurrent evaluation. impact on MSMEs.
Annual Report
Implementation will be monitored
2010-11 3.7.12 Subordinate organisations/
through a robust MIS and grievance
Responsibility Centres
redressal mechanism. The existing
system of monitoring like periodical The Ministry has following 25
review of the schemes of divisional subordinate organisations/
head, Secretary and Minister would responsibility centres under it. These
be made more sharp and objective are as under:
Sl. Responsibility Landline Email Address

No. Centre/ Sub- Number
Ordinate
Organisation
1 National Small 011- info@nsic. Okhla Industrial

Industrial 26926275, co.in Estate, Phase- III,
Company Ltd 26910910 New Delhi.
58 MSME

Ordinate
Organisation
2 Khadi and 022- dit@kvic.gov. “Gramodaya”“3,

Village Industries 26714320-25 in Irla Road, Vile
Commission, Parle (West),
(KVIC), Mumbai -
400056,
3 National 0120- info.niesbud@ A-23-24, Sector-

Institute for 2403051-54 nic.in 62, Institutional
Entrepreneurship Area, Phase-II,
and Small Business NOIDA-201301.
Development
(NIESBUD),
Annual Report
4 National Institute 040- registrar@ Yousuf Gauda,
2010-11
for Micro, Small 23608544-46 nimsme.org Hyderabad – 500
and Medium 045.
Enterprises (NI-
MSME),
5 Indian Institute of 0361- iieindia1@ 37, NH Bypass,

Entrepreneurship 2302646, bsnl.in Lalmati, Basistha
(IIE), 2300994, Chariali,
2300123 Guwahati – 781
029, Assam.
6 Coir Board 0484- coirboard@ “Coir House”, M.G.

2351807, vsnl.com Road, Ernakulam,
2351788 Kochi-682016,
Kerala
7 Mahatma Gandhi 07152- director. Maganwadi,

Institute of Rural 253512 mgiri@gmail. Warda-442001,
Industrialisation com Maharashtra
MSME 59

Ordinate
Organisation
8 MSME-Tool Room, 0240 gm@igtr-aur. P-31, MIDC,

(Indo German Tool 2486832, org Chikalthana
Room) 2482593, Indl. Area,
2470541 Aurangabad 431
006
9 MSME-Tool Room, 079 gm@igtrahd. Plot-5003, Phase-

(Indo German Tool 25840966, com IV, GIDC Vatva,
Room), 25841963 Mehmedabad
Road,
Ahmedabad 382
445 (Gujarat).
Annual Report 10 MSME-Tool Room, 0731 indigtr@ Plot No.291/B

2010-11 (Indo German Tool 4210700/03/04 sancharnet.in -302/A, Sector-E,
Room), 4210701 Sanwer Road,
Industrial Area,
Indore 452 003
(MP).
11 MSME-Tool Room 0161 info@ A-5, Focal Point,

(Central Tool 2670057, ctrludhiana. Ludhiana 141 010
Room), 2670058, com (Punjab).
2670059,
2676166
12 MSME-Tool Room 033 cttckolkata@ Bonhooghly Indl.

(Central Tool Room 25771492, vsnl.com Area, Kolkata 700
& Training Centre) 25771068 108 (W.B.).
13 MSME-Tool Room, 0674 cttc@satyam. B-36, Chandaka

(Central Tool Room 2742100, net.in Indl. Area,
& Training Centre), 2743349, P.O. Patia,
3011700 Bhubaneswar
751 024 (Orissa).
60 MSME

Ordinate
Organisation
14 MSME-Tool Room 0657 reach@ M-4 (Part) Phase-

(Indo Danish Tool 2201261/62, idtrjamshedpur. VI, Tata Kandra
Room) 2200507 com Road, Gamharia,
Jamshedpur 832
108 (Jharkhand)
15 MSME-Tool Room 0361 trtc_ghy@ Amingaon

(Tool Room & 2655542 rediffmail.com Industrial Area,
Training Centre) North Guwahati
Road, Amingaon,
Guwahati 781
031 Annual Report
2010-11
16 MSME-Tool Room, 0181 institute_jld@ G.T. Road, Bye
(Central Institute 2290226, dataone.com Pass, Jalandhar-
of Hand Tools), 2290225, 144008 (Punjab).
2290196
17 MSME-Technology 022 idemi@vsnl. S.T. Tope Marg,

Development 24050301/2/3/4 net Chunabhatti
Centre (Institute Sion, P.O.
for Design Mumbai-400022.
of Electrical
Measuring
Instruments),
18 MSME-Technology 05947 pd_estc@ Kaniya,

Development 251201, sancharnet.in Ramnagar, Dist.
Centre (Electronics 251530, Nainital-244715,
Service & Training 255951 Uttarakhand.
Centre)
MSME 61

Ordinate
Organisation
19 MSME-Technology 0121 info@ Sports Goods

Development 2511779 ppdcmeerut. Complex, Delhi
Centre, (Process com Road, Meerut-
cum Product 250002 (U.P.).
Development
Centre)
20 MSME-Technology 0562 ppdc@ Foundry Nagar,

Development 2344006, sancharnet.in Agra-282006
Centre, (Process 2344673 (U.P.).
and Product
Development
Annual Report
Centre)
2010-11
21 MSME-Technology 044 cfti@vsnl.net 65/1, G.S.T. Road,
Development 22501529 Guindy, Chennai-
Centre, (Central 600032
Footwear Training
Institute ),
22 MSME-Technology 0562 info@cftiagra. C – 41& 42, Site

Development 2642005, org.in ‘C’, Sikandra,
Centre, (Central 2642004 Industrial Area,
Footwear Training Agra-282007
Institute), (U.P.).
23 MSME-Technology 05694 ffdcknj@ Industrial Estate,

Development 234465, sancharnet.in GT Road, P.O.
Centre. (Fragrance 234791 Makrand Nagar,
& Flavour Kannauj, -209726
Development (U.P.).
Centre),
62 MSME

Ordinate
Organisation
24 MSME-Technology 05612 cdgifzbd@ A-1/1, Industrial

Development 232293 sancharnet.in Area, Jalesar
Centre, (Centre for Road, P.O.
Development of Muiddinpur,
Glass Industry), Firozabad-
283203 (U.P.).
25 MSME-Tool Room 040 hyd1_ A-1 to A-8 APIE,

(Central Institute 23774536, citdhyd@ Balanagar,
of Tool Design) 23772748 sancharnet.in Hyderabad 500
037 (A.P.)
Annual Report
2010-11
MSME 63
Annual Report
2010-11
64 MSME
CHAPTER IV
ROLE AND FUNCTIONS OF OFFICE OF THE
DEVELOPMENT COMMISSIONER
(MICRO, SMALL & MEDIUM ENTERPRISES) {O/o DC (MSME)}
4.1 INTRODUCTION as an attached office to the Ministry

of Small Scale Industries (now
4.1.1 The O/o DC (MSME) was
Ministry of Micro, Small and Medium
established as Small Industries
Enterprises) since September, 2001.
Development Organisation (SIDO)
Over the years, it has witnessed its role
{also referred to as Micro, Small and
evolve into an agency for advocacy,
Medium Enterprises – Development
handholding and facilitation of the Annual Report
Office (MSME-DO)} in 1954 on the small industries sector. It has over 60 2010-11
basis of the recommendations of the offices and 18 autonomous bodies

Ford Foundation. The MSME-DO is under administrative control. These
playing a very constructive role by autonomous bodies include Tool
rendering comprehensive services Rooms; Training Institutions and
including consultancy through Technology Development Centres. It
institutional set up of its field provides a wide spectrum of services
organizations spread over different to the small industries sector, now
parts of the country. The Office of the enlarged to also include Micro,
Development Commissioner (Micro, Small and Medium Enterprises. The
Small and Medium Enterprises) has institutions, inter-alia, include facilities
been functioning as an apex/nodal for testing, tool making, training
organ and provides link between for entrepreneurship development,
the Ministry/Department and field preparation of project and product
organizations. It has been working profiles, technical and managerial
MSME 67
Chapter IV - DC (MSME)
consultancy, assistance for exports, country. The major functions of the

pollution and energy audits etc. The Organization are: -
organisation provides economic i) Advising the Government
information services and also advises in policy formulation for the
Government in policy formulation promotion and development
for the promotion and development of MSME Sector;
of MSME sector. Its field offices also
ii) Providing techno-economic
work as effective links between the and managerial consultancy,
Central and the State Governments common facilities and
in the area of MSME development. extension services to the
4.1.2 As a result of the globalization MSME Sector;
and liberalization of the economy, iii) Making available facilities
the units in the sector were for technology upgradation,
Annual Report
increasingly called upon to face modernisation, quality
2010-11
new and bigger challenges not improvement and
only from Multinational Companies infrastructure;
(MNCs) etc. but also from bigger iv) Developing Human Resources
domestic players. Recognising the through training and skill
dynamics of the new environment upgradation;
in which these units were operating, v) Providing economic
the O/o DC (MSME) now focuses on information services;
providing support in the fields of
vi) Maintaining a close liaison with
credit, marketing, technology and
the Central Ministries, Planning
infrastructure. The emerging global
Commission,StateGovernments,
trends and national developments
Financial Institutions and other
have transformed the role of the
organisations concerned with
Organization into that of catalyst of
development of MSME Sector;
growth of small enterprises in the and
68 MSME
vii) Evolving and coordinating Management and Skill

Policies and Programmes for Development Programmes;
development of the Sector as
(ii) Assistance / Consultancy
ancillaries to large industries.
to prospective and existing
4.1.3 The organisation has a entrepreneurs;
network of 30 MSME Development
(iii) Preparing State and District
Institutes (MSME - DIs); 28 Branch
Industrial Potential Survey
MSME-DIs; 4 MSME Testing Centres
Reports;
(MSME-TCs); 7 Field Testing Stations
(iv) Preparation/updation of
(MSME-TSs); 18 Autonomous Bodies
Project Profiles of Products
- which include 10 MSME Tool Rooms
/Industries suitable and
(MSME-TRs); 6 MSME Technology
feasible in the MSME Sector;
Development Centres (MSME-TDCs)
and 2 MSME Footwear Training (v) Conducting Energy
Annual Report
Institutes (MSME-TDC-CFTIs). There Conservation, Pollution
2010-11
Control, Quality Control &
are also 2 Departmental Training
Upgradation;
Institutes (MSME-TIs).
(vi) Assisting Ancillary
4.1.4 MSME Development
Development by way of
Institutes: The network of 30 MSME
organizing VDPs;
Development Institutes (MSME - DIs)
(vii) Making available Common
and 28 Branch MSME Development
Facility Services in Workshops/
Institutes set up in the State capitals
Laboratories;
and other industrial cities all over
(viii) Preparation of Directory of
the country mainly performs the
specific industryies;
following functions:-
(ix) Market Surveys;
(i) Organizing Industrial
(x) Coordination with DICs and
Motivation Campaign/
linkages with State Govt.
Entrepreneurship,
functionaries;
MSME 69
(xi) Promotion and handholding Electrical Measuring Instruments

of micro and small enterprises and Glass.
under Rajiv Gandhi Udyami
4.1.7 MSME Testing Centres (MSME-
Mitra Yojana (RGUMY) and
TCs) at Chennai, Delhi, Kolkata and
other Action Plan activities
Mumbai have facilities for quality
assigned by Ministry/Office
upgradation, training/consultancy
of the DC (MSME).
in testing, quality control, quality
4.1.5 MSME Tool Rooms (MSME- management, process quality control
TRs): The 10 MSME-TRs set up under systems, etc. The 7 Field Testing Stations
the Indo-German and Indo-Danish (MSME-TSs) provide focused testing
collaborations assist MSMEs in services in the cities of Bengaluru,
technical upgradation and provide Bhopal, Ettumanur, Jaipur, Hyderabad,
good quality tooling through Kolhapur and Puducherry which have
Annual Report designing and producing tools, significant concentration of MSMEs.
2010-11 moulds, jigs & fixtures, components
4.1.8 MSME – Technology
etc. These Tool Rooms also provide
Develop-ment Centres (Central
technical training and consultancy
Footwear Training Institutes)
in the area of tool and die making.
(MSME-TDC-CFTI) at Agra and
4.1.6 MSME Technology Chennai are engaged in developing
Develop-ment Centres (MSME- designs and development of
TDCs) are product-specific footwear and also providing training
Centres for addressing product- for skill development footwear
specific problems and rendering industry.
technical services, developing
4.1.9 MSME - Training-cum-
and upgrading technologies and
Product Development Centres
manpower development & training
(MSME-TPDCs)
in respective product groups like
Foundry & Forging; Electronics; Four Training - cum - Product
Fragrance & Flavour; Sport Shoes; Development Centres (TPDCs) are
70 MSME
being set up for Agro and Food (iii) MSME-Tool Room (Indo
Processing Industries in the campus German Tool Room), Indore;
of MSME - Development Institutes
at Ludhiana, Kanpur, Indore and (iv) MSME-Tool Room (Indo
Guwahati with a total cost of Rs. German Tool Room),

4.57 crore. Aurangabad;
4.2 MSME TOOL ROOMS (v) MSME-Tool Room (Central

(MSME-TRs) Tool Room & Training Centre),
Kolkata;
4.2.1 The 10 MSME-TRs set up
under the Indo-German and Indo- (vi) MSME-Tool Room (Central
Danish collaborations, assist MSMEs Tool Room & Training Centre),
in technological upgradation. Bhubaneswar;
These tool rooms provide good
(vii) MSME-Tool Room (Indo Danish Annual Report
quality tooling through designing
2010-11
and producing tools, moulds, jigs Tool Room), Jamshedpur;
& fixtures, components etc. These
(viii) MSME-Tool Room (Central
Tool Rooms also provide technical
Institute of Hand Tools),
training and consultancy in the area Jalandhar;
of tool engineering.
(ix) MSME-Tool Room (Central
The name and location of Institute of Tool Design),
different Tool Rooms are as under:- Hyderabad and
(i) MSME-Tool Room (Central (x) MSME-Tool Room (Tool Room

Tool Room), Ludhiana; & Training Centre), Guwahati
(ii) MSME-Tool Room (Indo 4.2.2 These Tool Rooms &

German Tool Room), Training Centres provide
Ahmedabad ; production, technical training and

consultancy services in the areas
MSME 71
of tool engineering i.e. facilities for dropouts, also organize different

production of tools, moulds, dies, long-term courses such as ‘Post-
jigs & fixtures, etc. and providing graduate Diploma in Tool Design
skilled manpower to industry. These and CAD CAM’. They have achieved
services help the industry become nearly 100% placement for the
more productive and competitive. trainees of their long- term courses
in different industries.
4.2.3 These Tool Rooms apart from
conducting various short term
4.2.4 The achievements of these
technical courses and vocational
Tool Rooms are as under:-
training programmes for school
Table 4.1: Achievements of MSME Tool Rooms during 2010-11

(up to 31st December, 2010)
Annual Report (i) Revenue Target 2010-11 (Rs. in lakh) 7883

2010-11
(ii) Revenue Earned (Rs. in lakh) 5502
(iii) No. of Units Serviced 10089
(iv) No. of Trainees (Long Term) 8489
(v) No. of Trainees (Short Term) 21285
(vi) No. of SC/ST Trainees 9111
(vii) No. of OBC Trainees 4123
(viii) No. of Minority Trainees 964
(ix) No. of Women Trainees 2362
(x) No. of Physically Handicapped Trainees 22
72 MSME
4.3 MSME TECHNOLOGY Product Development Centre

DEVELOPMENT CENTRES (MSME (PPDC), Meerut.
TDCs)
4.3.2 The main objective of these
4.3.1 MSME Technology Technology Development Centres
Development Centres (MSME TDCs) is to develop human resources
are product-specific Centres to for meeting the requirements
look into MSME’s specific problems for transfer of technology in
and render technical services, respective products fields. These
develop and upgrade technologies Centres are also running training
& manpower development and courses as per the requirements of
training in specific product groups the industry. The CDGI, Firozabad
like Foundry & Forging, Electronics, provide technical support to micro
Fragrance & Flavour, Sport Shoes, and small glass units through
Electrical Measuring Instruments promoting installation of energy
Annual Report
and Glass, etc. MSME TDCs include efficient glass melting furnaces,
2010-11
the Electronics Service & Training auxiliary furnaces, introduction
Centre (ESTC), Ramnagar; Institute of new types of glasses & their
for Design of Electrical Measuring standardization, introduction
Instruments (IDEMI), Mumbai; of developed techniques for
Fragrance & Flavour Development the decoration of glasswares
Centre (FFDC), Kannauj; Centre etc.
for Development of Glass Industry
(CDGI), Firozabad; Process and
TDCs as on December 31, 2010 are
Product Development Centre
given in the following Table.
(PPDC), Agra and Process-cum-
TABLE 4.2: Achievements of MSME TDCs as on December 31, 2010.
(i) Revenue Target 2010-11 (Rs. in lakh) 1700
(ii) Revenue Earned (Rs. in lakh) 1264.18
MSME 73
(x) No. of Physically Handicapped Trainees 11
4.4 MSME TESTING CENTRES undertake Performance test, Type

(TCs) AND MSME TESTING test and Acceptance test of semi-
STATIONS (TSs) finished, finished products etc. The
centers also undertake calibration
Annual Report 4.4.1 MSME -TESTING CENTRES
works for Measuring Instruments
2010-11 (TCs)
and Equipment conforming
4.4.1.1 Office of DC (MSME) to international standards.
is operating four MSME -Testing These centers are accredited by
Centres located at New Delhi, internationally recognized National
Mumbai, Chennai and Kolkata. MSME Accreditation Board of Testing &
Testing Centres provide testing and Calibration laboratories (NABL)
calibration facilities to industries certification as per ISO (17025).
in general and MSMEs in particular
for raw materials, semi-finished and 4.4.2 MSME -TESTING STATIONS
finished products, manufactured (TSs):
by them. The centers are equipped
4.4.2.1 In order to provide
with the state of art indigenous and
testing facilities in the area with
imported equipment in the field of
Chemical, Mechanical, Metallurgical cluster of industries and some
and Electrical Engineering to strategic areas, the Ministry has
74 MSME
set up MSME- Testing Stations in fact act as extension of the

at Jaipur, Bhopal, Kolhapur, MSME- TCs thereby serving the
Hyderabad, Bangalore, Puducherry needs of the industries situated in
and Ettumanur. These Testing far-flung areas. For the year 2010-
Stations extend facilities for testing 11, an amount of Rs 5.15 crore
of various products viz .chemicals, has been allocated for day-to-day
dye-stuffs, lamps, rubber products, functioning and modernization of
castings and forgings, paints and MSME -Testing Centres / Stations.
varnishes, domestic electrical
4.4.3 The performance of MSME-
appliances, general engineering
TCs/TSs during the last five years and
etc.
the percentage of self-sufficiency
4.4.2.2 These Testing Stations (of these centers) are as follows:
Year Revenue Recurring No. of jobs No. of MSME Annual Report

earned (Rs. Expenditure completed Benefited 2010-11
lakhs) (Rs.lakhs)
TCs TSs TCs TSs TCs TSs TCs TSs
2004-05 259.74 82.69 267.89 87.79 10872 15150 1810 2229
2005-06 247.60 85.25 393.50 96.59 11616 16378 3026 3979
2006-07 320.33 96.26 405.69 104.54 12459 16248 2873 2734
2007-08 326.03 106.81 430.40 111.84 12214 14261 2428 4662
2008-09 348.11 122.91 568.32 175.21 14013 21916 2608 5844
2009-10 387.96 137.04 638.67 209.92 14497 22471 6805 8163
2010-11 256.28 107.49 507.14 143.19 8602 17443 4144 5601

(up to December
2010 )
MSME 75
4.5 MSME-DEVELOPMENT there is a need to replace their

INSTITUTES (MSME-DIs) old machines with new ones,
preferably hi-tech machines,
4.5.1 MSME-DIs are providing as the services provided by the
techno-managerial consultancy modernized workshops to MSMEs
assistance and rendering necessary
are excellent. Further, to keep pace
assistance to MSMEs by conducting
with the technological requirement,
various programmes like Seminars,
the MSMEs are in the need of
Industrial Motivational Campaigns,
specialized services including CAD/
Feasibility Analysis, Area Survey
CAM facilities.
Analysis. They also provide Common
Facility Services, In-plant Studies, 4.5.4 On these machines, MSME-
EDPs to MSMEs. DIs are also providing training to
the workers sponsored by MSMEs
Annual Report 4.5.2 Under the scheme, funds are
and to unemployed youth. After
2010-11 allotted to meet the expenditure on
getting the training, these trainees
salary, travel and other expenses of
are absorbed by the large units/
the staff posted in these institutes
MSMEs. Many trainees take up the
including rent/taxes for the building
training to upgrade their skills and
occupied by these institutes. Funds
are also provided for infrastructure, set up their own unit.
machinery and other technical

4.6 Vertical Shaft Brick Kiln
equipments, which may be required
(VSBK) Technology at MSME-DIs
by MSMEs. The common facility
centre in these DIs also provide 4.6.1 A Plan Scheme namely
help to MSME sector in developing “Adoption of VSBK technology in
hi-tech tools, dies, jigs and fixtures brick manufacturing units under
etc. Package for Promotion of Micro
4.5.3 To provide the best possible and Small Enterprises” is under
common facility services to MSMEs, implementation.
76 MSME
4.6.2 In the recent years, to a ceiling of Rs. 2 lakh per unit.

the housing sector has been 4.6.3 The programme is being
witnessing rapid growth due to implemented in the selected
higher demand and availability clusters of brick manufacturing
of cheap credit. This in turn has units in the States of MP,
led to high demand for bricks. Chhattisgarh, Jharkhand, Orissa
Bricks are at present manufactured and Rajasthan. MSME-DIs, Cuttack,
nearly in thirty major clusters Indore, Ranchi, Jaipur and Raipur
of MSEs by employing a highly are the coordinating agencies
energy-intensive technology. for implementation of the
The manufacturing process has programme.
a vast potential of technological
4.6.4 The programme also
upgradation to make it more
involves organization of seminars Annual Report
energy efficient and eco-friendly. 2010-11
/ workshops by MSME-DIs to
The adoption of the Vertical Shaft
introduce the technology and
Brick Kiln technology can lead to
showcasing the technology by
substantial reduction in cost by
conducting tours of entrepreneurs
energy conservation. It would also
at the sites of technology providers
lead to reduction of green house
and entrepreneurs where
gas emissions. The Government,
successful units of VSB Kilns are
therefore, encourages Micro and
already in operation. Interested
Small Enterprises by establishing
entrepreneurs will be able to
five demonstration VSBK units by
undergo various training courses
upgrading the functional kilns
on VSBK technology in their
and promoting the use of this
respective areas for upgradation
technology under the credit linked
of their knowledge. The progress
capital subsidy scheme with 30%
of this Scheme is given below:
capital subsidy to the MSEs, subject
MSME 77
1 No. of Demo Plant set up till date 4 numbers in Chhattisgarh, Orissa,

Rajasthan and Madhya Pradesh
2 No. of Seminars/Workshops 26 Numbers

organised for awareness of Brick
manufacturing owners
3 No. of training programme 18 Numbers

organised
4 No. of exposure visit organised 5 Numbers
5 No. of Testing Lab. set up till date 2 Nos. in Orissa and Madhya
Pradesh
4.7 MSME – TRAINING Institutes) at Agra and Chennai are

INSTITUTES engaged in providing training for
manpower in footwear industry and
4.7.1 MSME – Training Institutes
Annual Report developing designs for accelerating
2010-11 (Central Footwear Training
exports.
Shri Virbhadra Singh, Union Minister of MSME releasing a publication of

the Council for Leather Exports
78 MSME
4.7.2 The basic objective of these institutes provide technical support

institutes is to develop human services to the user industry through
resources for footwear and making their facilities available to
allied industries through various them. The institutes also provide
training programmes on footwear services for development of new
technology and allied services. products and patterns as per given
These institutes conduct long term, sample or concept.
short term and part-time training
courses on different subjects of
Institutes as on December 31, 2010
footwear technology. Besides, these
are given in the following Table.
TABLE 4.4: Achievements of MSME-TIs as on December 31, 2010
(i) Revenue Target 2010-11 (Rs. Lakh) 457

Annual Report
2010-11
(ii) Revenue Earned (Rs. Lakh) 342.18
(x) No. of Physically Handicapped Trainees -
MSME 79
Annual Report
Shri Virbhadra Singh, Union Minister of MSME delivering his speech during 26th India
2010-11
international Leather Fair. Other dignitaries on dais are (form left to right) Shri Neeraj
Kumar Gupta, Executive Director, ITPO, Shri Uday Kumar Varma, Union Secretary,
MSME, Dr. Subas Pani, CMD, ITPO, Shri Salman Khurshid, Union Minister for
Water Resources and Minority Affairs
4.8 CREDIT LINKED CAPITAL was launched in October, 2000

SUBSIDY SCHEME (CLCSS) and revised w.e.f. 29.9.2005. The
revised scheme provides for 15%
4.8.1 The M/o MSME is operating Capital Subsidy (12 % prior to
a Scheme namely Credit Linked 29.9.2005) on institutional finance
Capital Subsidy Scheme (CLCSS) availed by them for induction of
for Technology Upgradation of well-established and improved
Micro and Small Enterprises. technology in approved sub-
The Scheme aims at facilitating sectors/products. The maximum
Technology Upgradation of Micro limit of eligible loan for calculation
and Small Enterprises. The Scheme of capital subsidy under the
80 MSME
scheme is Rs. 100 Lakh with a of the term loan.

maximum subsidy of Rs. 15 lakh. 4.8.2 Progress of the Scheme:
The admissible capital subsidy
Year-wise details of Micro and
under revised scheme is calculated
Small Enterprises benefited under
with reference to purchase price of
the CLCSS are as under:
the plant and machinery, instead
Year No. of units assisted Amount of subsidy

sanctioned (Rs. Lakh)
2001-02 9 21.36
2002-03 47 93.97
2003-04 150 363.06
2004-05 526 1312.08
2005-06 699 1767.82 Annual Report

2010-11
2006-07 1880 6579.74
2007-08 1407 6374.30
2008-09 1790 9734.60
2009-10 2551 13971.72
2010-11* 2055 12127.00
TOTAL 11114 52345.70

(Provisional as on December, 2010)
4.9 CREDIT GUARANTEE FUND Fund Scheme for Micro and Small
SCHEME FOR MICRO AND SMALL Enterprises in August, 2000, with
ENTERPRISES the objective of making available
credit to micro and small enterprises
4.9.1 The Government of India (MSEs), particularly micro enterprises,
launched the Credit Guarantee for loans up to Rs. 100 lakh without
MSME 81
collateral/third party guarantees. The Sector Banks, 17 Private Sector

Scheme is being operated through the Banks, 61 Regional Rural Banks
Credit Guarantee Fund Trust for Micro (RRBs), 2 foreign banks and 8 other
and Small Enterprises (CGTMSE) set Institutions viz., National Small
up jointly by the Government of India
Industries Corporation (NSIC),
and Small Industries Development
North Eastern Development
Bank of India (SIDBI).
Finance Corporation Ltd. (NEDFi),
4.9.2 The Scheme covers collateral free Delhi Financial Corporation, Kerala
credit facility (term loan and/ or working
Financial Corporation, Tamilnadu
capital) extended by eligible member
Industrial Investment Corporation
lending institutions (MLIs) to new and
Ltd., Jammu & Kashmir Development
existing micro and small enterprises up
to Rs. 100 lakh per borrowing unit. The Finance Corporation Ltd. (JKDFC),
guarantee cover provided is up to Export Import Bank of India
Annual Report 75% of the credit facility up to Rs.50 (EXIM Bank) and Small Industries
2010-11 lakh with an incremental guarantee Development Bank of India (SIDBI).
of 50% of the credit facility above Cumulatively 4,76,452 proposals
Rs.50 lakh and up to Rs.100 lakh (85% have been approved for guarantee
for loans up to Rs. 5 lakh provided cover for a total sanctioned loan
to micro enterprises, 80% for MSEs
amount of Rs. 20,109.36 crore.
owned/ operated by women and all
loans to NER). One time guarantee
4.10 MICRO FINANCE
fee of 1.5% of the credit facility
PROGRAMME
sanctioned (0.75% for NER including
Sikkim) and Annual Service Fee of
4.10.1 The Ministry has been
0.75% is collected from the MLIs.
operating a Scheme of Micro Finance
4.9.3 As on 31st December 2010, Programme since 2003-04, which
there were 115 eligible lending has been tied up with the existing
institutions registered as MLIs of Micro Credit Scheme of SIDBI. Under
the Trust comprising of 27 Public the Scheme, the Government of
82 MSME
India provides funds to SIDBI under cumulative loan amount provided

‘Portfolio Risk Fund’ (PRF) which to MFIs/NGOs under the Scheme
is utilized for security deposit stood at Rs.1461.44 crore covering
requirements of loan from the MFIs/ approximately 21.85 lakh persons.
NGOs. At present SIDBI takes fixed Of this, it has been estimated that
deposit equal to 10% of the loan the share of women beneficiaries
amount. Under the PRF, the share under the Scheme is more than
of Micro Finance Institution (MFIs) 80%.
/NGOs is 2.5% of the loan amount
(i.e. 25% of security deposit) and 4.11 MICRO & SMALL
balance 7.5% (i.e. 75% of security ENTERPRISES CLUSTER
deposit) is adjusted from the funds DEVELOPMENT PROGRAMME
provided by the Government under (MSE-CDP)
the scheme. The funds under PRF Annual Report
4.11.1 The Ministry of Micro, Small
are to be utilized for extending 2010-11
and Medium Enterprises (MSME)
loans in the underserved States
initiated selected interventions
like North Eastern States including
in industrial clusters first in 1998
Sikkim, Bihar, Jharkhand, West
through its scheme ‘Integrated
Bengal, Orissa, Madhya Pradesh,
Technology Upgradation and
Chhattisgarh, Uttar Pradesh,
Management Programme’
Jammu & Kashmir, Rajasthan and
(UPTECH). In August 2003, the
Uttarakhand and underserved
Scheme was renamed as Small
pockets/ districts of other States.
Industry Clusters Development
4.10.2 During 2010-11, the Programme (SICDP) and was broad-
Government has released an based for holistic and integrated
amount of Rs.20.00 crore towards development of micro and small
‘Portfolio Risk Fund’ (PRF). As enterprises through interventions
on 31st December, 2010, the such as capacity building, marketing
MSME 83
development, export promotion, Programme (MSE-CDP) and

skill development, technology the Integrated Infrastructural
upgradation, exposure visits, Development (IID) Scheme of the
etc. and setting up of common Ministry was subsumed under
facilities. MSE-CDP with its existing funding
pattern, in October 2007.
4.11.2 The Ministry simultaneously
continued to implement a 4.11.4 Based on the
separate Integrated Infrastructural recommendations emerging out
Development Scheme (IID) of the evaluation of schemes
[started in 1994] for setting up of and after consultation with the
industrial estates and to develop senior functionaries of the State
infrastructure facilities like power Governments, it was felt necessary
distribution network, water, to modify the guidelines which
Annual Report
telecommunication, drainage, envisage streamlining of procedures,
2010-11
roads, storage and marketing providing a more holistic approach
outlets, common service facilities, to the development of clusters
etc. The IID Scheme also provided and enhanced level of financial
for upgradation/ strengthening of assistance, which are as under:
the infrastructural facilities in the (i) Enhancement of the maximum
existing industrial estates. project cost for Common
4.11.3 In accordance with the Facility Centre (CFC) from
decision of the Cabinet Committee Rs.10 crore to Rs.15 crore, with
on Economic Affairs (CCEA), GoI contribution of 70% (90%
while approving the Package for for Special Category States
Promotion of Micro and Small and for clusters with more
Enterprises, the Scheme was than 50% women/micro/
renamed as Micro and Small village/SC/ST units);
Enterprises – Cluster Development (ii) Enhancement of the maximum
84 MSME
project cost for Infrastructure been taken under the programme for
Development from Rs.5 Diagnostic Study, Soft Interventions
crore to Rs.10 crore, with GoI and Hard Interventions. The efforts
contribution of 60% (80% for under the scheme are focused on
Special Category States and covering of more and more clusters
for clusters with more than from all the States / UTs.
50% women/micro/SC/ST (b) Physical Progress (1st April
units); 2010 to 31st December, 2010):-
(iii) Enhancement of the i. New clusters undertaken for
maximum project cost for Diagnostic Study Reports
soft interventions from Rs.10 (DSRs) – 29 Nos.
lakh to Rs.25 lakh, with GoI ii. Clusters undertaken for
contribution of 75% (90% for soft interventions including
Special Category States and ongoing clusters - 36 Nos. Annual Report
iii. New Common Facility Centre 2010-11

for clusters with more than
50% women/micro/village/ (CFCs) approved - 10 Nos.
SC/ST units); and iv. Monitor and sanction of funds
in the earlier approved CFCs –
(iv) Enhancement of the cost
6 Nos.
ceiling for preparation of
Detailed Project Report (DPR) v. In-principle approval for CFC
– 14 Nos.
for CFC and/or Infrastructure
Development to Rs.5 lakh. (c) Financial Progress: Sanctions
of Rs. 7.458 crore have been issued
4.11.5 Progress under the
till 31st December, 2010 during the
components of MSE-CDP
current financial year under MSE-
(a) Cluster Development: A total CDP.
of 471 clusters spread over 28 States
(d) Under IID component, till 31st
and 7 UTs in the country have so far
December, 2010, 95 new Centres have
MSME 85
been sanctioned since inception the Government of India to develop

of the scheme. Out of the above global competitiveness among
sanctioned centres, 67 (including Indian MSMEs. Conceptualised
12 in the current financial year – by the National Manufacturing
up to December) new IID Centres Competitiveness Council (NMCC),
have been completed. A total of the Programme was initiated in
10,972 plots have been allotted 2007-08. An amount of Rs.682 crore
to small and tiny units and 3,561 has been allocated during the 11th
units established. The scheme has Plan period for NMCP. There are
generated employment to 37,555 ten components under the NMCP
persons so far and infrastructure targeted at enhancing the entire
in 29 old Industrial Estates for value chain of the MSME sector
upgradation has been sanctioned. which are stated below:-
Annual Report Out of the above sanctioned centres, 4.12.1 Marketing Support/
2010-11 25 (including 22 up to December, Assistance to MSEs (Bar Code)
2010) old Industrial Estates for
In order to provide continued
upgradation have been completed.
financial support to MSEs for
The total grant of Rs. 159.03 crore
adoption of Bar Code, a component
out of commitment of Rs. 216.20
was added in the SSI-MDA Scheme
crore has been released.
for 75% reimbursement of annual
4.12 NATIONAL recurring fee for 1st three years
MANUFACTURING to MSEs w.e.f 1st June 2007. The
COMPETITIVENESS funding for reimbursement of
PROGRAMME ( NMCP ) annual recurring fee is provided
under NMCP Scheme – Marketing
The National Manufacturing Support /Assistance to MSME
Competitiveness Programme (Bar Code). For the year 2010-11,
(NMCP) is the nodal programme of financial assistance of Rs.5.09 lakh
86 MSME
to 101 cases of MSEs for annual 4.12.3 Mini Tool Rooms

recurring fee was provided up to under the Public Private
December, 2010. Partnership (PPP) mode:
4.12.2 Scheme for Providing Support Under this component, 15 Mini Tool
for “Entrepreneurial and Managerial Rooms are proposed to be set up
Development of SMEs through during the 11th Plan period. The
Incubators” Government support will be capped
The scheme aims at nurturing of Rs.9 crore.
innovative business ideas (new/

4.12.4 Scheme for
ingenious technology, processes,
“Building Awareness on
products, procedures, etc), which
Intellectual Property Rights”
could be commercialized in a
(IPR) for the Micro, Small &
year. Under the scheme, various Annual Report
Medium Enterprises (MSME)
institutions like Engineering 2010-11
Colleges, Research labs etc. will a. The objective of the scheme

be provided funds up to Rs. 6.25 is to enhance awareness of MSME
lakh for handholding each new about Intellectual Property Rights
idea/entrepreneur. The incubator (IPRs) to take measures for protecting
will provide technology guidance, their ideas and business strategies.
workshop and lab support and Effective utilisation of IPR tools
linkage to other agencies for by MSMEs would also assist them
successful launching of the business in technology upgradation and
and guide the entrepreneur in enhancing competitiveness. These
establishing the enterprise. Under initiatives will provide MSME sector
the scheme, 76 institutions and 190 more information, orientation
ideas have been approved as on 31- and facilities for protecting their
12-2010. intellectual powers.
MSME 87
b. Salient Features: The main activities and maximum
Under this programme financial Government of India grant under
assistance is being provided for this scheme cover the following
taking up the identified initiatives. broad areas of interventions:
Sl. Activity Maximum grant

No. per application/
proposal (Rs. in
lakh)
a. Awareness/ Sensitisation Programmes on 1.00

IPR.
b. Pilot Studies for Selected Clusters/ Groups of 2.50

Annual Report Industries.
2010-11
c. Interactive Seminars / Workshops. 2.00
d. Specialized Training.
(i) Short term (ST) (i) 6.00
(ii) Long term (LT) (ii) 45.00
e. Assistance for Grant on Patent/ GI

Registration. (i) 0.25
(i) Domestic Patent (ii) 2.00
(ii) Foreign Patent (iii) 1.00
(iii) GI Registration
f. Setting up of ‘IP Facilitation Centre for MSME’. 65.00
g. Interaction with International Agencies.

(i) Domestic Intervention 5.00
(ii)International Exchange Programme 7.50
88 MSME
These initiatives are being Standard Operation Procedures, Just

implemented through Public- in Time, Kanban System, Cellular
Private Partnership (PPP) mode Layout, Poka Yoke, etc. To start with,
to encourage economically a pilot project for Lean Techniques
sustainable models for overall interventions in 100 Mini Clusters has
development of MSMEs. Eligible been taken up for implementation.
applic ants/beneficiaries will have 4.12.6 Enabling Manufacturing Sector
to contribute minimum 10% of the to be competitive through Quality
GoI financial support for availing Management Standards (QMS) and
assistance under the scheme. Quality Technology Tools (QTT):
4.12.5 Lean Manufacturing This is aimed at improving the

Competitiveness Scheme for quality of the products in the MSME
MSMEs : sector and inculcates the quality
Annual Report
consciousness in enterprises in this
Under the Lean Manufacturing 2010-11
sector. The major activities are:
Programme (LMP), MSMEs will be
assisted in reducing their manufacturing (i) Introduction of Appropriate
costs, through proper personnel Modules for Technical
management, better space utilization, Institutions;
scientific inventory management, (ii) Organizing Awareness

improved process flows, reduced Campaigns for MSEs;
engineering time and so on. LMP also (iii) Organizing Competition-
brings improvement in the quality of Watch (C-Watch);
products and lowers costs, which are (iv) Implementation of Quality
essential for competing in national Management Standards and
and international markets. The broad Quality Technology Tools in
activities planned under the scheme selected MSMEs;
include Total Productive Maintenance
(v) Monitoring International
(TPM), 5S (Sigma), Visual Control,
Study Missions;
MSME 89
(vi) Impact Studies of application 4.12.8 Marketing Assistance and

of QMS/ QTT. Technology Upgradation Scheme
for MSMEs :
4.12.7 Technology and
Quality Upgradation Support to The objective of this component is to
MSMEs: identify and encourage such clusters of

MSMEs, which have quality production
The objective of this component
and export potential and assist them
of NMCP is to sensitize the MSMEs to achieve competitiveness in the
about the benefits that could national and international markets
accrue from usage of energy through technological upgradation in
efficient technologies, reduction packaging, development of modern
in emissions of Green House marketing techniques, competition
Gases, improve the acceptance of studies, ISO 10000/ 22000/ 27000,
Annual Report
their products by product quality participation in local exhibitions/ fairs
2010-11
certification, thereby making etc. The Government contribution
them globally competitive. The is estimated as Rs.19 crore for this

component.
major activities planned under
this component include Capacity 4.12.9 Design Clinics for
Building of MSME Clusters for Energy MSMEs :
Efficiency/Clean Development The main objective of this
Interventions, Implementation of component is to bring the MSME
Energy Efficient Technologies in sector and design expertise on a
MSME sector, Setting up of Carbon common platform and to provide
Credit Aggregation Centres and expert advice and solutions on real
encouraging MSMEs to acquire time design problems, resulting in
product certification licenses from continuous improvement and value-
national / international bodies. addition for existing products. It also
90 MSME
aims at value-added cost effective setting up of e-readiness centre,

solutions. The Government support developing web portals for clusters,
has been pegged at Rs. 50 crore for skill development of MSME unit
the activities planned under the staff, preparation of local software
component. The activities include solutions for MSMEs to enhance
creation of Design Clinics Secretariat their competitiveness, etc.
along with regional centres for

4.13 ISO-9000/ISO-14001/
intervention on the design needs
HACCP certification
of the MSME sector. Reimbursement Scheme
4.12.10 Promotion of Information
4.13.1 The scheme envisages one
& Communication Tools (ICT) in
time reimbursement of charges for
MSME sector : acquiring ISO 9000/14001/HACCP
The main objective of the scheme is (or its equivalent) certification
Annual Report
to encourage and assist the potential to the extent of 75% of the cost
2010-11
subject to a maximum of Rs.75000/-
MSME clusters to adopt ICT tools
in total. 20,065 numbers of units
and applications in their production
amounting to Rs. 97.81 crore have
and business processes, with a view
been reimbursed since inception
to improving their productivity and
till 31st March, 2010. During 2010-
competitiveness in national and
11, about 767 units amounting to
international markets. The total
Rs.3.78 crore have been reimbursed
budget outlay of the scheme is Rs.
up to 31st December, 2010.
105.00 crore including Government
contribution of Rs. 47.70 crore to be
4.14 Training Programmes
implemented during the 11th Plan.
(IMCs, ESDPs, EDPs, BSDPs and
The broad activities planned under
MDPs) Conducted by MSME-DIs
this component include identifying
the potential MSME manufacturing 4.14.1 MSME-DIs are imparting varities
clusters for ICT intervention, of training programmes for first
MSME 91
generation potential entrepreneurs, December, 2010. A total of 2,970

existing industrial workers and programmes will be conducted
managers. The ultimate aim is to in this year benefiting 2,97,000
promote the MSME sector of the country persons.
by inculcating entrepreneurial culture in
(ii) Entrepreneurship Development
the respective area as well as to enhance
Programmes (EDPs): Entrepreneurship
productivity of the existing industries of
Development Programmes are be-
that State/Area. The details of MSME-
ing organized as a regular training
DI’s techno-managerial activities given
activity to cultivate the latent quali-
in the earlier para 4.5. Different types
ties of youth by enlightening them
of training programmes conducted for
on various aspects that are neces-
entrepreneurship development and
sary to be considered while setting
promotion are:
up enterprises. These programmes
Annual Report
(i) Industrial Motivation are conducted generally for techni-
2010-11
Campaigns (IMCs): Industrial cians /artisans for motivating them
Motivation Campaigns (one day towards self-employment. The
duration) are organized to identify course contents of such Entrepre-
and motivate traditional/non- neurship Development Programmes
traditional entrepreneurs having are so designed as to provide use-
potential for setting up MSEs ful information on product/process
so as to lead them towards self- design, manufacturing practices in-
employment. Emphasis is being volved, testing and quality control,
given to organize the maximum selection and usage of appropriate
number of programmes in rural machinery and equipments, proj-
/ remote areas particularly for ect profile preparation, marketing
weaker sections of the society. avenues/techniques, product/ser-
1,720 programmes were conducted vice pricing, export opportunities,
to motivate 1,38,555 persons up to infrastructure facilities available,
92 MSME
finance and financial institutions, and to equip them with better and
cash flow, etc. No fees is charged improved techno-managerial skills
from SC, ST, women and physically of production. Emphasis is being
handicapped participants in the sti- made to organize the maximum
pendiary programmes, rather they programmes in rural areas
are eligible for a stipend of Rs.125/- particularly for weaker sections of
per week. Emphasis is being made the society. Specific tailor-made
to organize special programmes in programmes are organized for the
rural areas particularly for weaker skill development of the socially
sections of the society. 264 pro- disadvantage groups (OBC, SC, ST,
grammes were conducted for pro- Minorities and Women) in remote
viding training to 6,264 persons up regions /pockets of the States. These
to December, 2010. A total of 501 programmes are also called ‘Out-
programmes will be conducted in Reach Programmes’ as these are Annual Report
this year to train 12,525 persons. conducted in rural/less developed 2010-11
areas.
(iii) Entrepreneurship Skill
Development Programme Programmes so far organized, inter-
(ESDPs): Comprehensive training alia, included Herbal Cosmetics,
programmes are organized to High Fashion Garments, Hosiery,
upgrade existing skills and to Food & Fruit Processing Industries,
create new skills in workers and Information Technology, Hardware
technicians of existing units and Maintenance, Soap and Detergents,
educated unemployed youth Leather products/Novelties,
by organizing various technical Servicing of House Hold Electrical
training courses for them. The Appliances and Electronic Gadgets,
basic objective has been to provide Gem Cutting and Polishing,
training to unskilled/semi-skilled Engineering Plastics, Tour Operators,
workers engaged in MSE sector Mobile Repairing, Beautician, CAD/
MSME 93
CAM etc. No fee is charged from (v) Business Skill Development

SC, ST, women and physically Programme (Tailor made
handicapped in the stipendiary Course): Tailor made courses
programmes, rather they are namely Business Skill Development
eligible for a stipend of Rs.125/- Programme (BSDP) have been
per week. 1922 programmes introduced for new entrepreneurs
were conducted for providing through select Business schools/
training to 48,198 persons up to Technical institutions etc. The
December, 2010. A total of 2,809 programmes has been devised to
programmes will be conducted encourage educated unemployed
in this year to train 70,225 youth/students basically from
persons. Business Schools/Technical
Institutes to start self–employment
Annual Report
(iv) Management Develop ventures. 145 programmes are
2010-11 ment Programmes (MDPs): The likely to be conducted during the
basic objective of imparting train- current financial year, 2010-11, to
ing in management subjects is to provide training to 3,625 persons.
improve the MSMEs in the deci-
(vi) E n t r e p r e n e u r - c u m - S k i l l
sion-making and in enhancing pro-
Development Programme (ESDP)
ductivity/profitability. Potential
on Biotechnology: Biotechnology
entrepreneurs are trained so that
is playing an important role in
they can set up and run their own
diverse sectors such as human
enterprises. 310 programmes were
and animal health care, plant
conducted for providing training and agriculture sciences, food
to 7,088 persons up to November, and nutrition, environment etc.
2010. A total of 592 programmes The areas of tissue cultures,
will be conducted in this year to bio-fertilizers, bio-pesticides,
train 14,800 persons. mushroom cultivation, solid waste
94 MSME
management etc. are given priority iv. to fine-tune the existing

for ESDPs. 33 programmes are policy and programmes for
likely to be conducted during the MSMEs in line with the WTO
current financial year, 2010-11, to Agreements; and
provide training to 825 persons. v. to organize WTO awareness/
workshops/ seminars for
4.14.2 WTO Sensitization
MSMEs.
Workshop:
4.14.3 As part of the Inter-
A separate WTO Cell had been
Ministerial consultation process,
created in 1999 for co-ordinating
inputs to Ministry of Commerce and
the latest developments in
Industry were provided in regard to
regard to its different Agreements
negotiations also on various Trade
affecting the functioning of MSEs.
Agreements for exchange of tariff
The broad objectives of the Cell, Annual Report
concessions.
inter-alia, include:- 2010-11
4.14.4 With a view to creating
i. To keep abreast with the
awareness among the MSMEs,
recent developments in
MSME Associations and other
WTO;
stakeholders, on WTO Agreements
ii. to disseminate information and its implications for them,
to MSME Associations and Ministry of MSME is organizing
MSMEs units about the One day Sensitization workshops/
various provisions of the seminars all over the country since
WTO; the year 2000. 77 such workshops/
iii. to coordinate with other seminars have been organized.
Ministries and Departments As part of this endeavor, Nine
of the GoI on issues pertaining WTO awareness workshops
to the likely impact of WTO were organized benefiting 665
for the MSE sector; entrepreneurs and incurred an
MSME 95
expenditure of Rs. 4.86 lakh out of of the steering committees of

budget allocation of Rs 5.00 lakh certain national programmes for
for the financial year 2009-10. A development of some products,
budget of Rs. 5.00 lakh has been their existing weaknesses prevent
provided during the current year them from playing the expected
to organize eight WTO awareness role effectively. Even in their role
programmes.Total provision of Rs. as facilitators for their members
25.00 lakh was earmarked for the in Government assisted schemes
11th Five Year Plan period. like setting up of sub-contracting
exchanges, testing laboratories,
4.14.5 Capacity building,
etc., the capacity of these
strengthening of database and
Associations has been found to be
advocacy by Industry/ Enterprise
deficient.
Annual Report Associations: It has been felt that
2010-11 the Associations of Micro and Small 4.14.6 To strengthen their role
Enterprises do not have adequate and increase their efficiency,
capacity to collect and interpret financial assistance is provided
data relating to changes in the for the secretarial and advisory/
market scenario, owing to the extension services and for holding
limited availability of funds and the workshops/seminars/symposiums
absence of expertise in the matter. of selected Associations depending
As a result, their articulation of on the size and the reach of the
views on specific issues concerning associations. The beneficiary
to their product groups leaves associations are to provide the
much to be desired. In spite of the regular manpower at their own
fact that the Associations of the cost and office space and also
MSEs have been made members bear 50 per cent of the cost of
of the SSI Board and the members modernization of their facilities,
96 MSME
equipment and training of their is at Table 4.6:

personnel. Progress of the scheme
Table 4.6: INDUSTYRY ASSOCIATIONS ASSISTED UNDER THE SCHEME
Year Secretarial/Advisory Seminar/Symposium/

Assistance Workshop
No. of cases Amount No. of Amount

(Rs. lakh) cases (Rs. lakh)
2006-07 31 46.625 Nil Nil
2007-08 31 75.75 16 8.50
2008-09 17 37.30 22 16.71
2009-10 12 31.84 12 11.24

Annual Report
2010-11* 7 11.26 9 10.97 2010-11
* Up to December, 2010
4.14.7 Officer’s Training fixtures etc. through modern tool

Programmes within the O/o DC rooms and development institutes
(MSME): MSME-DO plays a vital spread across the country. It has
role in the development of Micro, excellent technical officers and staff
Small & Medium sector in India. It for imparting Entrepreneurship
is actually engaged in developing skills, management training, and
new and existing Micro, Small and technical training in all trades
Medium Entrepreneurs by providing pertaining to MSME sector.
training, extension service, common
facility workshop and hi-tech 4.14.8 It is against this background
technological inputs and facilities that there exists a continuous need
for preparing of tools, moulds, jigs, for improving the performance of
MSME 97
staff and officers of MSME-DO by lakh for formation of approximately

giving appropriate training to them. 630 Clubs benefiting 31,500 MSEs.
During the year 2010-11 (till 31st
4.14.10 Export Promotion: Training
December 2010), 123 officers were
Programme on Packaging for
sent for various training courses
Exports
including 3 officials from NE region
and 3 women officers. The total To educate MSMEs entrepreneurs
amount of sanction issued till date about the scientific packing
is Rs. 72.36 Lac. techniques, latest design of
packing technology and improve
4.14.9 Scheme to Support 5
their packaging standards and
Selected Universities / Colleges
to highlight the importance of
to run 1200 Entrepreneurship
packaging in marketing, this
Clubs
Annual Report office has been organizing
2010-11 The scheme is to support 5
specialized training programmes
selected universities to run
on Packaging for exports for MSME
Entrepreneurship Clubs (one each
units through field offices i.e.
from Northern, Western, Southern,
MSME-DIs in collaboration with
Eastern and North-East Region).
Indian Institute of packaging (IIP),
Each university will have to run
Mumbai. In 2009-10, 25 training
240 Clubs per year and each club
programmes for three days period
may have a membership of 50
have been conducted benefiting
entrepreneurs with an objective to
798 entrepreneurs. A budget of
bring the entrepreneurs, experts of
universities and MSME-DIs together Rs.15.00 lakh has been provided
to solve common problems in the during 2010-11 to organize training
field of technology, innovation, programmes on packaging. Women,

marketing etc. During 2011-12, SC&ST and Physically Handicapped
there is a budget provision of Rs 150 participants are exempted from
98 MSME
payment of participation fee for types of VDPs are being organized

these training programmes. by MSME DIs – National Level VDPs
–cum-Exhibitions and State Level
4.15 Vendor Development
VDPs.
Programme (VDP) for
Ancilliarisation 4.16 SSI-MDA Scheme:
Participation in Overseas
Vendor Development Programmes
International Trade Fairs/
(VDPs) are being organized by
Exhibitions
MSME-DIs in every nook and corner
of the country to provide common O/o DC (MSME) has been providing
platform for MSEs as well as large opportunity under Marketing
public sector enterprises to inter- Development Assistance Scheme
act with each other with a view to MSMEs for getting an exposure
Annual Report
to identifying emerging demands in the international market and
2010-11
of the buyer organizations exploring the possible export
simultaneously providing an opportunity of their products
opportunity for displaying the by exhibiting them through
capabilities of the MSMEs and participation in International Trade
their industrial ventures. Such Fairs under MSME India stall. Office of
programmes have proved to be of DC(MSME) during the financial year
immense use in locating suitable 2010-11 has planned to participate
entrepreneurs by a number of in 15 trade fairs with a target to
buying organizations including the provide 131 MSEs to participate in
Public Sector Enterprises, various the International Trade Fair under
wings of Defence, Railways and MSME India stall. Till December, this
others in indigenising a number of office has participated in following
products which hitherto have been 8 international trade fairs and
imported at a colossal cost. Two provided export and marketing
MSME 99
opportunity to more than 107 are owned by women entrepreneurs

MSMEs and out of which 38 MSMEs and SC entrepreneurs respectively.
Table 4.7: Participation in Overseas Trade Fairs/Exhibitions
S.No Date Event

1. 15-19 April, 2010 China Import and Export Fair (Canton Fair),
China
2. 19-23 April ,2010 India Pavilion at HANNOVER MESSE 2010
3 08-12 September, 2010 Budapest International Fair, Budapest,
Hungary
4 9-13 September, 2010 INTERGIFT, Madrid, Spain
5 04-08 October, 2010 INDEE 2010 at Bogotá, Colombia
6 25-28 November, 2010 India Pavilion at MACTECH 2010, Cairo, Egypt
7 01-04 December., 2010 India Pavilion at Euromold 2010, Frankfurt,
Germany
8 04-12 December, 2010 AFL-Artigiano, Milan, Italy
Annual Report
2010-11
Shri Dinsha Patel, the then Union MOS (I/C) for MSME inaugrating the MSME Expo at
Pragati Maidan during India International Trade Fair 2010, New Delhi in the presence of
Shri Uday Kumar Varma, Union Secretary (MSME) and other senior officers.
100 MSME
4.17 BAR CODING setting up an information network

on small enterprises to be called
SSI-MDA Scheme has the provision
Small Enterprise Network-SENET.
for 75% reimbursement of one-
The following main activities are
time registration fees w.e.f. January,
broadly covered under the SENET
2002 and annual recurring fees
during XI Plan: -
(for first three years) w.e.f. June,
(i) Maintenance of computers,
2007 paid by Micro and Small
servers, printers, UPS,
Enterprise (MSEs) to GS1 India
Networking equipments,
for use of Bar Code. This scheme
Facility Management, lease
aims at enhancing marketing
line/broad band connection
competitiveness of MSEs. For the
etc, upgradation/replacement
year 2010-11, financial assistance of
of computers of the hardware
Rs. 13.89 lakhs have been provided
available in the HQr and its Annual Report
to 68 MSEs for reimbursement of
30(thirty) field MSMEDIs. 2010-11
one-time registration fees up to
(ii) The maintenance of the
December, 2010.
website of Office of DC
4.18 SMALL ENTERPRISE (MSME), the website of

30 MSME Development
NETWORK (SENET)
Institutes (formerly called
4.18.1 The objective of the project SISIs) providing connectivity
was to set up an electronic (computer) through leased lines/
Information and Resource Center broadband in Nirman Bhawan,
Network to meet the information AGCR building and the MSME
resource requirements of the Development Institutes etc.
small enterprise sector including (iii) The SENET Schemes also
small industries & industry related provide for marinating a
service & business activities. This communication link between
objective has been achieved by the Associations; State
MSME 101
Governments and other of Rs.1,00,000/-, Rs.75,000/- and

stakeholders. Rs.50,000/- respectively. Selection
for awards is made on the basis of
4.19 NATIONAL AWARDS
a set criteria exclusively designed
With a view to recognizinge the to evaluate performance of the
efforts and contribution of MSMEs, MSMEs. Besides Awards to the
National Awards are given annually Entrepreneurs, awards are also
to selected entrepreneurs and
given to banks for excellence in
enterprises under the scheme of
lending to MSEs.
National Award.
Under the scheme, national
The awards are given for various
categories i.e. (i) R&D efforts (ii) awardees are given opportunity to
Entrepreneurship and (iii) Quality exhibit products manufactured by
Products. The first, second and them at India International Trade
Annual Report third award carry a cash prize Fair (IITF) in New Delhi.
2010-11
Her Excellency Smt. Pratibha Devisingh Patil, President of India lights up the traditional
lamp to mark the inaguration of MSME National Award Function on 31st August, 2010
at Vigyan Bhavan, New Delhi
102 MSME
4.19.1 Research & Development 4.19.2 Outstanding Entre-

Efforts in Micro, Small and preneurship Efforts in Micro,
Medium Enterprises (MSMEs) Small and Medium Enterprises
(MSMEs)
National Awards are given for
encouraging in-house R&D efforts Under the Scheme, three National
and promoting this spirit in the Awards are given to MSMEs engaged
larger interest of qualitative in manufacturing Sector and
development in MSME Sector. two awards for MSMEs rendering
Under this Scheme, two awards each Services. Besides a Trophy and a
for Micro, Small and for Medium Certificate, the First Award carries
Enterprises are conferred upon a cash prize of Rs.1,00,000/-, the
deserving registered MSMEs which Second and the Third Awards carry
cash prizes of Rs.75,000/- and
may be in continuous production
Rs.50,000/- respectively. Special Annual Report
for the last 3 years. The first and
Award to Outstanding Women, SC/ 2010-11
second award carry a cash prize
ST and Entrepreneur from NER at
of Rs.1,00,000/- and Rs.75,000/-
par with Ist National Award in each
respectively, besides a Certificate
category is also given. The First,
and a Trophy. The First and Second
Second and Third National Award
National Award for MSEs have been
for Micro and Small Enterprises
awarded to Entrepreneurs from
for 2009 have been awarded
Andhra Pradesh and Karnataka.
to entrepreneurs from Andhra
H.E. the President of India gave the
Pradesh, Punjab and Andhra
awards in a public function held in
Pradesh respectively. A women
Vigyan Bhavan.
entrepreneur from Kerala has
A Special Recognition Award in the won the Special Award under the
form of a cash prize of Rs. 20,000/- category of women entrepreneurs
each, a certificate and a trophy are and special award for SC/ST
given to the deserving MSMEs. entrepreneur has gone to Gujarat.
MSME 103
An entrepreneur from Assam has The National Award for Quality

won the Special Award for NER. The Product 2009 were given to eligible
First and Second National Awards entrepreneurs for 10 products. i.e.
for Medium Enterprises have been
i. Knit wear
awarded to entrepreneurs from
Punjab and Maharastra respectively. ii. Electric Power and Distribution
The First and Second National Transformers
Award for rendering services have iii. Lighting Fixtures

been awarded to entrepreneurs
iv. Plastic Processing Machinery
from Rajasthan and Karnataka
respectively. v. Hospital Furniture
Special Recognition Awards have vi. Fruit and Vegetable Processed

been given to 61 Entrepreneurs/ products
enterprises in this category. vii. Ceramic Sanitary ware
Annual Report
2010-11 4.19.3 Quality Products in viii. Plastic Auto Components
Micro & Small Enterprises (MSEs)
ix. Adhesives
Under the “National Awards for
x. Ladies and Men’s Leather
Quality Products in Micro and Small
footwear
Enterprises”, certain products are
selected for conferring the Awards Special Recognition awards have
every year. One National Award been given to 9 entrepreneurs/
is given for each category of the enterprises.
selected products. The award
4.19.4 National Awards to Banks
carries a trophy, a certificate and a
for Excellence in MSE Lending and
cash prize of Rs.1,00,000/-. A Special
Excellence in Lending to Micro
Recognition Award in the form of
Enterprises
cash prize of Rs.20, 000/- each, a
certificate and a trophy are given to With a view to encourage the
the deserving MSMEs. Banks for taking effective steps
104 MSME
for enhancing flow of credit to the information for the larger benefit
MSE sector, a National Award is of the prospective and existing
being conferred upon the Banks entrepreneurs. Laghu Udyog
in recognition of their outstanding Samachar is an important window
performance in financing the micro in print for the MSMEs, providing
and small enterprises. access to the latest information
on a variety of topics affecting
4.19.5 These awards are also
the operations of MSMEs. It helps
given to entrepreneurs belonging
creating awareness on policies and
to khadi and coir sector.
programmes of the Central and the
4.19.6 List of awardees for the State Governments including about
year 2009 given in the month of different orders, circulars, gazette
August, 2010 is available of the web- notifications etc. It also provides
site of the Ministry www.msme.gov. useful information about field

Annual Report
in and O/o the DC (MSME) www. activities and carries statistical and 2010-11
dcmsme.gov.in. economic information as well as

articles on various issues pertaining
4.20 ADVERTISING AND to the MSMEs.
PUBLICITY DIVISION
4.20.1 During the year (till 4.22 INFORMATION &
December, 2010), more than 1375 FACILITATION COUNTER (IFC)
advertisements were released. The Information and Facilitation
4.21 LAGHU UDYOG Counter (IFC) located in Nirman
SAMACHAR AND OTHER Bhavan is nodal office for the M/o

MSME and its organizations. It
PUBLICATIONS
provides speedy and easy access
Laghu Udyog Samachar is published to information to the public on the
bilingually on monthly basis to services and activities of Ministry of
disseminate useful and updated MSME and its organizations. Copies
MSME 105
of important brochures, pamphlets, MSMEs and Reservation/De-

books, etc. are also made available reservation in MSMEs, etc.
to the entrepreneurs by the IFC. The
IFC is nodal office for accepting
other important activities of IFC
the applications under RTI Act
include:
and forwarding the same to the
(i) Providing counseling, concerned Division/Section of
guidance & information on how to the Ministry for further necessary
set up an enterprise; action.
(ii) Disseminating information on

4.23 MODERNISATION OF
technical schemes, project report
MSME LIBRARIES
and details of various programmes
implemented by the M/o MSME and The Office of the DC (MSME)
its organisations; is maintaining Libraries at its
Annual Report
Headquarters at Nirman Bhawan
2010-11 (iii) Making available information
and its entire field Institutes.
relating to policies concerning
These Libraries are the source of
MSMEs and schemes of various
information and are maintained with
State Governments for promotion
the objective of making available
of MSMEs;
the technical information required
(iv) Providing information for the development of MSMEs.
about filing of Memorandum The officers of the institutes use the
and other different provisions libraries and also the entrepreneurs
of the Micro, Small and Medium of the areas to know about the new
Enterprises Development Act, 2006 developments taking place in the
and supplying information about different segments of industrial
credit policies of the Government, and business environment. The
statistics related to MSMEs, technical libraries are maintaining technical
and marketing aspects concerning books, journals, reports, project
106 MSME
profiles and statistical surveys and of Statistics”. Based on the primary

copies of other related Government data collected through census and
publication etc. Libraries are sample surveys, the time-series
maintained regularly with these estimates on above economic
publications to keep abreast parameters are maintained for
with developments taking place use in the policy formulation and
in the field of MSME. The MSME planning.
libraries are being equipped with
4.24.2 The scheme was started
computers, photostat machines,
during the Fifth Five Year Plan period
internet connectivity etc.
in 1975 with the prime objective of
4.24 COLLECTION OF providing for infrastructure in terms
STATISTICS OF MSMEs of man-power and computers &
peripherals to the Directorate of
4.24.1 The Statistics and Data Bank Annual Report
Industries and District Industries
Division of the O/o DC(MSME) 2010-11
Centres (DICs) of the States/UTs for
collects, compiles and disseminates
facilitating activities like collection,
statistical information on various
compilation and dissemination
economic parameters like number
of statistical data/information
of MSMEs, employment, fixed
on MSMEs. Conduct of census,
investment and production in the
sample survey, collection of Index
MSME sector under the centrally
of Industrial Production (IIP) data,
sponsored scheme of “Collection
wholesale price index data.
MSME 107
Annual Report
2010-11
108 MSME
CHAPTER V
KHADI AND VILLAGE INDUSTRIES
COMMISSION (KVIC)
5.1 BACKGROUND 5.2 MAIN OBJECTIVES
Khadi & Village Industries The main objectives of KVIC

Commission (KVIC) established include:-
under the Khadi and Village (i) The social objective of
Industries Commission Act, 1956 (61 providing employment in rural
of 1956), is a statutory organization areas;
under the aegis of the Ministry (ii) The economic objective of
of MSME, engaged in promoting producing saleable articles;
Annual Report
and developing khadi and village 2010-11

and
industries for providing employment
(iii) The wider objective of creating
opportunities in the rural areas,
self-reliance amongst people
thereby strengthening the rural
and building up a strong rural
economy. KVIC has been identified as
community spirit.
one of the major organisations in the
decentralised sector for generating
5.3 FUNCTIONS
sustainable non-farm employment
opportunities in rural areas at a low The functions of KVIC as prescribed
per capita investment. It undertakes under the KVIC Act, 1956 (61 of 1956)
activities like skill improvement; and Rules made thereunder, are as
transfer of technology; research & follows:
development; marketing etc. and (i) to plan and organise training of
helps in generating employment/ persons employed or desirous
self-employment opportunities in of seeking employment in
rural areas. khadi and village industries;
MSME 111
Chapter -V KVIC
(ii) to supply raw materials to (x) to ensure genuineness and to

concerned agencies at an set up standards of quality.
appropriate rate;
(iii) to set up common facilities for 5.4 ORGANISATIONAL SET-UP

quality produce;
5.4.1 KVIC is functioning under
(iv) to promote the sale and the administrative control of the
marketing of khadi, products Ministry of Micro, Small and Medium
of village industries and Enterprises, Government of India.
handicrafts; The Commission functions with its
(v) to encourage and promote Head Office in Mumbai and six Zonal
research in the technology Offices located in New Delhi; Bhopal;
used in khadi and village Bangalore; Kolkata; Mumbai and
industries; Guwahati and 36 State/Divisional
(vi) to undertake directly or Offices spread all over the country to
Annual Report facilitate speedy implementation of
through other agencies,
2010-11
studies of the problems of KVI programmes.
khadi or village industries;
5.4.2 KVIC undertakes training
(vii) to provide financial assistance activities through its 38
to institutions/ persons of departmental and non-
khadi or village industries and
departmental training centres.
guide them through supply of
Marketing is taken up through
designs, prototypes and other
technical information; its 12 departmentally-run Khadi
Gramodyog Bhawans located in
(viii) to undertake directly or
urban areas and 7,050 institutional/
through specified agencies,
retail sales outlets located at
experiments or pilot projects;
different parts of the country.
(ix) to promote and encourage KVIC also makes available quality
cooperative efforts among
raw material to khadi institutions
the manufacturers of khadi
or persons engaged in village through its six Central Sliver Plants
industries; and (CSPs).
112 MSME
Chapter -V KVIC
5.5 IMPLEMENTING AGENCIES woven cotton, woollen, muslin and

silk varieties, the Village Industry (VI)
5.5.1 Khadi and Village Industries Programmes have been classified
(KVI) programmes are implemented into seven broad groups. These are:
through 33 State/Union Territories
(i) Mineral Based Industry;
(UTs) Khadi and Village Industries
Boards (KVIBs); 5,000 registered (ii) Forest Based Industry;
institutions; 30,129 cooperative
(iii) Agro Based and Food
societies and banks /financial
Processing Industry;
institutions. The Khadi programme
is implemented through institutions (iv) Polymer and Chemical Based
registered either with KVIC or State/ Industry;
UT KVIBs. In the case of village
(v) Rural Engineering and Bio-
industries, KVIC is implementing
Technology Industry;
Prime Minister’s Employment
Generation Programme (PMEGP) (vi) Hand Made Paper & Fibre Annual Report
with effect from 2008-09 which Industry; and 2010-11
is more attractive for prospective (vii) Service Industry.

entrepreneurs with higher subsidy
levels than the erstwhile Rural 5.6.2 Industries connected with
meat (slaughter) i.e. processing,
Employment Generation Programme
canning and/ or serving items
(REGP). KVIC also implements cluster
made therefrom; production/
development activities in traditional
manufacturing or sale of intoxicant
industries of khadi; and village
items like beedi/pan/cigar/cigarette,
industries under Scheme of Fund for
etc., any hotel or dhaba or sales
Regeneration ofTraditional Industries
outlet serving liquor; preparation/
(SFURTI) as a Nodal Agency. producing tobacco as raw
materials; tapping of toddy for sale;
5.6 GROUPING OF INDUSTRIES manufacturing of polythene carry
bags of less than 20 microns thickness
5.6.1 While the Khadi Programmes and manufacturing of carry bags or
comprises hand spun and hand containers made of recycled plastics
MSME 113
Chapter -V KVIC
for storing, carrying, dispensing or State KVIBs; institutions registered

packaging of food-stuff, etc., are not under the Societies Registration
assisted under KVI programme as Act, 1860 and cooperative societies
these are either not eco-friendly or registered under the Cooperative
against the ideology and ethos of Acts of the State Governments;
Mahatma Gandhi. implementing banks, District
Industries Centres, etc. The
5.7 BUDGETARY SUPPORT TO Commission’s administrative
KVIC expenditure including pension
5.7.1 The Union Government payments is also met out of Non-plan
through the Ministry of Micro, Government budgetary support.
Small and Medium Enterprises
5.7.2 The details of funds provided
(MSME) provides funds to KVIC for
from budgetary sources (both
undertaking its various activities
under Plan and Non-Plan head)
under Plan and Non-Plan heads.
Annual Report during the last three years and
These funds are provided primarily
2010-11 those earmarked in the Budget
by way of grants and loans and
Estimate 2010-11 are given in the
KVIC in turn re-allocates them to its
following Table:
implementing agencies, namely the
TABLE 5.1: Budgetary Support to KVIC

(Rs. crore)
Allocation (RE) Funds Released
Year
Non-
Plan Plan* Non- Plan
Plan
2007-08 650.40 84.82 622.99 82.80
2008-09 1104.95 107.63 1104.94 107.62
2009-10 919.20 192.41 836.00 192.38
2010-11* 1524.41 155.60 1013.21@ 132.58@

* including SFURTI
@ as on 31st December 2010
114 MSME
Chapter -V KVIC
5.8 PHYSICAL PERFORMANCE (Khadi Rs. 762.55 crore and V.I. Rs.
14,970.48 crore) of the previous
5.8.1 Despite the overall slowdown
year (up to December 2009).
of the economy, KVI sector has
registered a growth of around 5% 5.8.2 The total cumulative
in 2009-10 over the performance employment in the KVI sector is
of previous year. The total KVI estimated to have also increased to
production during 2010-11(up 111.19 lakh persons (10.01 lakh in
to December 2010) is estimated Khadi and 101.18 lakh in V.I.) by the
at Rs. 12,828.04 crore (Khadi Rs. end of December, 2010 as against
510.91 crore and V.I. Rs.12317.13 104.96 lakh persons (9.77 lakh
crore) as against Rs. 12,215.05 in Khadi and 95.19 lakh in V.I.) of
crore (Khadi Rs. 484.45 crore and corresponding period of the previous
V.I. Rs. 11,730.60 crore) in 2009-10. year.
Similarly, estimated sales of KVI
products up to December 2010 5.8.3 The performance of KVI sector Annual Report
also increased to Rs. 16,653.33 in respect of production, sales and 2010-11
crore (Khadi Rs. 784.63 crore and employment during the last three
V.I. Rs.15,868.70 crore) in 2010- years and in 2010-11 is shown in the
11 as against Rs. 15,733.03 crore following Table:
TABLE 5.2: Performance of KVI Sector
CUMULATIVE
PRODUCTION SALES
EMPLOYMENT
YEAR (Value Rs. crore) (Value Rs. crore)
(Lakh persons)
KHADI V. I. KHADI V. I. KHADI V. I.
(1) (2) (3) (4) (5) (6) (7)
2007-08 543.39 16134.32 724.39 20819.09 9.16 90.11
2008-09 585.25 16753.62 799.60 21948.59 9.50 94.41
2009-10 628.98 17508.00 867.01 23254.53 9.81 98.72
2010-11* 510.91 12317.13 784.63 15868.70 10.01 101.18
*up to December 2010
MSME 115
Chapter -V KVIC
5.9 MAJOR SCHEMES BEING opportunities under PMRY and REGP

IMPLEMENTED BY KVIC respectively.
5.9.1 Prime Minister’s Employment Keeping in view the varying

Generation Programme (PMEGP): parameters and entitlements,
targeting almost the same set of
The Ministry was implementing two
beneficiaries in rural areas, better
employment generation credit linked
recovery rates under REGP as
schemes namely, Prime Minister’s
Rozgar Yojana (PMRY) and Rural compared to PMRY and the existence
Employment Generation Programme of employment generation schemes
(REGP) since October, 1993 and April, being implemented by a number
1995 respectively. By the end of of States with more attractive
March 2008, the Ministry was able to benefits/ assistance/ interventions
generate an estimated 46.62 lakh and like Bangla Swanirbhar Karma
49.44 lakh additional employment Sansthan Prakalpa (West Bengal);
Annual Report
2010-11
Shri Dinsha Patel, the then Union MOS (I/C) for MSME addressing the
Workshop on PMEGP
116 MSME
Chapter -V KVIC
Shri Vajpayee Bankable Yojana 5.9.2 Workshed Scheme for Khadi

(Gujarat); Chief Minister’s Rozgar Artisans:
Yojana (Uttar Pradesh), etc., it was In order to facilitate and empower
decided to discontinue PMRY and khadi spinners and weavers to chart
REGP from 2008-09 and introduce out a sustainable path for growth,
a new credit linked subsidy scheme income generation and better work
titled Prime Minister’s Employment environment and to enable them to
Generation Programme (PMEGP) carry out their spinning and weaving
through merger of the erstwhile work effectively ‘Workshed Scheme
schemes of PMRY and REGP. PMEGP for Khadi Artisans’ was introduced
has been a significant initiative with in 2008-09. Under this Scheme,
a higher level of subsidy than that financial assistance for construction of
available under PMRY and REGP. worksheds is provided to khadi artisans
This Scheme is being implemented belonging to BPL category through
through KVIC as the national level the khadi institutions with which the Annual Report
nodal agency. The details of PMEGP khadi artisans are associated. The 2010-11
quantum of assistance is as under:

are given in Chapter X.
Component Area per unit Amount of Assistance
Individual Workshed 20 Square Rs. 25,000/- or 75% of

meters the cost of the workshed,
(approximately) whichever is less.
Group Worksheds (for 15 Square Rs. 15,000/- per beneficiary of

a group of minimum 5 meters per the group or 75% of the total
and maximum 15 khadi beneficiary cost of the project, whichever
artisans) (approximately) is less.
Under this Scheme, more than crore (approx.), involving financial

38,000 Worksheds are targeted to be assistance of Rs. 95 crore as grant
constructed at a total cost of Rs.127 to KVIC from the Government’s
MSME 117
Chapter -V KVIC
budgetary sources. Assistance to assistance of Rs. 71.14 crore as grant

5,951 artisans have been provided to KVIC from the Government’s
during 2009-10. Against the budgetary sources between 2008-
target of providing assistance to 09 to 2011-12. A total of 20 khadi
10,000 worksheds during 2010-11, institutions were selected for
assistance to 6,792 artisans could be assistance during 2009-10. Against
provided up to December, 2010. the target for assisting 59 khadi
institutions in 2010-11, assistance to
5.9.3 Scheme for Enhancing
09 institutions have been provided
Productivity & Competitiveness of
up to December 2010.
Khadi Industries and Artisans:
5.9.4 Strengthening Infrastructure
The Scheme aims at making khadi
of Existing Weak Khadi Institutions
industry more competitive with more
and Assistance for Marketing
market-driven, profitable production
Infrastructure
and sustained employment for khadi
Annual Report
artisans and related service providers In order to meet the need-based
2010-11
through replacement of obsolete support of the Khadi sector to nurse
and old machinery and equipment the sick institutions particularly in
and repairs /renovation of existing/ “D” category whose production,
operational machinery/ equipment. sales and employment have been
The Ministry has introduced the declining while they have potential
‘Scheme for Enhancing Productivity to attain normalcy and to support
and Competitiveness of Khadi creation of marketing infrastructure
Industries and Artisans’ through in other identified outlets, the scheme
KVIC with effect from July 2008. The of Strengthening of Infrastructure
Scheme would provide financial of Existing Weak Khadi Institutions
assistance to 200 of the ‘A+’ and ‘A’ and Assistance for Marketing
category khadi institutions of which Infrastructure has been formulated.
50 institutions would be those Under this scheme, financial
which are managed by beneficiaries assistance is provided to around 100
belonging to SCs/ STs, at a total cost existing weak selected institutions for
of Rs. 84.00 crore involving financial strengthening of their infrastructure
118 MSME
Chapter -V KVIC
and for renovation of selected 30 out in consultation with ADB and

khadi sales outlets (KVIC outlets -4, KVIC. Under this Reform Package,
KVIB outlets – 6 and KI outlets – 20). it is proposed to revitalize the Khadi
The maximum ceiling of assistance sector with enhanced sustainability
for strengthening of weak khadi of Khadi, increased incomes and
institutions under this scheme is employment to artisans, increased
Rs.10 lakh (capital expenditure –Rs.3 artisans welfare and to enable
lakh and working capital –Rs.7 lakh). KVIC to become financially self-
For renovation of sales outlets, the suffecient with gradually decreasing
ceiling of financial assistance is Rs. 25 dependence on Government Grants.
lakh for Departmental Sales outlets of Initially, the programme will be
KVIC, Rs. 21.25 lakh for Departmental initiated in 300 khadi institutions
Sales outlets of State KVIBs, Rs. 18.75 keeping the needs of regional
lakh for institutional outlets located balance, geographical spread and
in metro cities and Rs. 15 lakh for inclusion of backward areas. The first Annual Report
institutional outlets located in non- tranche of fund of Rs. 96 crore has 2010-11
metro cities. It is expected that after already been released to KVIC for its
implementation of this scheme, there implementation.
will be a higher level of production,
sales and employment along with 5.9.6 Interest Subsidy Eligibility
the increased level of earnings in Certification (ISEC) Scheme:
khadi sector.
The Interest Subsidy Eligibility
5.9.5 Khadi Reform and Certificate (ISEC) Scheme is an
Development Programme (KRDP) important mechanism of funding
Department of Economic Affairs, khadi programme by khadi
Ministry of Finance has tied up institutions. It was introduced in May
financial aid from Asian Development 1977 to mobilise funds from banking
Bank amounting to US$150 million institutions for filling the gap between
over a period of three years for the actual fund requirements and
implementing a comprehensive availability of funds from budgetary
Khadi Reform Programme worked sources.
MSME 119
Chapter -V KVIC
Under the ISEC Scheme, credit at the with the introduction of REGP for
concessional rate of interest of 4 % village industries (VI) in 1995 and
per annum for capital expenditure PMEGP in 2008, the Scheme now
as well as working capital, is made supports only the khadi and the
available as per the requirement polyvastra sector. All V.I. units
of the institutions. The difference existing as on March 31, 1995, have
between the actual lending rate been allowed to avail of this facility
and 4 % is paid by the Central for the amount of bank finance
Government through KVIC to the availed as on that date or actual,
lending banks and funds for this whichever is less provided they are
purpose are provided under the fully functional and funds for this
khadi grant head to KVIC. purpose are provided under the V.I.
grant head.
The Institutions registered with
the KVIC/State Khadi and Village The extent of credit flow to the
Annual Report
2010-11
Industries Boards (KVIBs) can avail institutions under the Scheme
of financing under the ISEC Scheme. during the past three years and in
Initially, the entire KVI sector was 2010-11 is depicted in the following
covered under the Scheme. However, Table:
TABLE 5.3: Credit Flow under ISEC Scheme

(Rs. crore)
Year Credit Flow to Khadi Subsidy Provided by

and Polyvastra KVIC
Institutions
2007-08 226.12 17.61
2008-09 244.85 27.54
2009-10 279.02 25.00
2010-11* 262.00 24.56
120 MSME
Chapter -V KVIC
5.9.7 Market Development Scheme is that financial assistance

Assistance (MDA) (i.e., MDA) will be provided @
20% of value of production of
For promoting sale of khadi and
Khadi and polyvastra (cotton
polyvastra, Government of India
khadi, silk khadi, wollen khadi
through the Khadi and Village
and Polyvastra) achieved by the
Industries Commission (KVIC) used
producing institution, and will be
to provide subsidy in the form of
apportioned among the artisans,
rebate on seasonal sale which used
producing institutions and selling
to be passed to the consumers. But
institutions in the ration of 25 : 30
it was observed that artisans, who
: 45. The MDA would be claimed
are the backbone of Khadi activities,
by the institutions quarterly on
were not extended any benefit
the basis of their production in the
from this and khadi outlets also
preceding quarter.
were not able to attract buyers due
Annual Report
to inadequate quality design and 5.9.8 Product Development, De- 2010-11
unattractive look of the outlets and sign Intervention and Packaging
inadequate marketing support, etc. (PRODIP)
To rectify these deficiencies, KVIC
has introduced a flexible, growth The Product Development, Design
stimulating and artisan-centric Intervention and Packaging (PRODIP)
‘Market Development Assistance Scheme was launched in November
(MDA) Scheme for Khadi and 2002 as a small intervention with a
Polyvastra’ in place of the Rebate view to selectively improving the
Scheme with effect from 01.04.2010 quality of khadi products and also to
for implementation during two diversify into new products. It also
terminal years of XI Plan, i.e., 2010- seeks to improve the marketability
11 and 2011-12 with estimated cost of khadi by enlisting the support
of Rs. 345.05 crore (Rs. 159.65 crore of professional designers approved
for 2010-11 & Rs. 185.40 crore for by the National Institute of Design
2011-12). The main feature of this (NID).
MSME 121
Chapter -V KVIC
Annual Report
2010-11
Under this Scheme, financial conducted by KVIC have indicated

assistance is provided to the that production and sales have
institutions or entrepreneurs up to Rs. increased approximately by 13 per
2 lakh per project per year or 75% of cent and 21 per cent, respectively,
the project cost whichever is less. In in the case of the projects taken up
the case of individual entrepreneurs, under PRODIP. The progress made
the quantum of assistance is up to under this scheme during the last
Rs. 1 lakh or 75% of the project cost, three years and in 2010-11 is given in
whichever is less. The internal studies the following Table:
122 MSME
Chapter -V KVIC
TABLE 5.5: Progress under PRODIP
Year Total No. of KVI Projects Assisted
2007-08 218
2008-09 256
2009-10 169
2010-11* 128
5.9.9 Rural Industries Service units/artisans for better marketing

Centres (RISCs): of their products; training facilities
KVIC has also taken up another small for upgrading artisans’ skills in
scale intervention called “Rural order to increase their earnings
Industries Service Centers (RISC)” and new designs and diversified Annual Report
Scheme from 2004-05 onwards for products in consultation with 2010-11
providing infrastructural support experts /agencies for value addition
and services to selected units with a of rural manufacturing units. Under
view to upgrading their production this scheme, financial assistance for
capacity; skill upgradation and establishing smaller projects costing
market promotion. RISC, inter
up to Rs. 5 lakh each is provided to
alia, provides testing facilities
KVI units while in bigger projects,
by establishing laboratories for
such assistance is up to Rs. 25 lakh.
ensuring quality of products;
Each project costing up to Rs. 5 lakh
improved machinery/equipment to
is expected to provide benefit to at
be utilised as common facilities by
least 25 individuals.
nearby units /artisans for enhancing
production capacity or value The number of projects assisted
addition of the product; attractive under this programme during the
and appropriate packaging last three years and in 2010-11 is
facilities and machinery to the local given in the Table below:
MSME 123
Chapter -V KVIC
TABLE 5.6: Number of Projects Assisted - RISC
Year Total No. of KVI Projects Assisted

2007-08 76
2008-09 54
2009-10 18
2010-11 12
5.9.10 Khadi Karigar per beneficiary. The Commission

Janashree Bima Yojana: has prevailed upon LIC to reduce
In order to provide insurance the premium to Rs. 100/- from 2005-
cover to khadi artisans, a group 06 which is shared as “Rs. 50/- by
insurance scheme namely Khadi the Central Government from Social
Karigar Janashree Bima Yojana Security Fund, Rs. 25/- by Khadi
Annual Report (JBY) was launched on August 15, Institution and Rs. 12.50/- each by
2010-11
2003. The Scheme was formulated Khadi Artisan and KVIC.”
by KVIC in association with the Life
The compensation under the
Insurance Corporation of India (LIC)
Scheme has also been increased by
with annual premium of Rs. 200/- 50 per cent which stands as follows:
In case of Natural death Rs. 30,000/-
In case of Accidental death Rs. 75,000/-
In case of full permanent disability due to accident Rs. 75,000/-
In case of part permanent disability due to accident Rs. 37,500/-
As an ‘add-on’ benefit without any artisans studying in Class IX to XII are

additional premium, up to two eligible for a scholarship of Rs. 100/-
school-going children of insured each per month.
124 MSME
Chapter -V KVIC
More than 2.70 lakh khadi artisans Development Assistance (MDA)/

have already been covered under Market Access Initiative (MAI)
this Scheme so far. guidelines of the Department of
5.9.11 Exhibitions: Commerce. 880 units have since
been registered with KVIC.
Besides promoting sale
of products of khadi and village 5.9.13 Quality Control and Brand
industries through its network of Promotion:
Khadi Gramodyog Bhavans (KGB) KVIC has made arrangements
and Retail Sales Outlets, KVIC also with the National Institute of Design
organises a number of exhibitions, (NID), Ahmedabad; ‘Dastakar’,
in different parts of the country. 38 Andhra Pradesh; IIT, Delhi and
exhibitions/events were organised in Textiles Committee, Mumbai for
various parts of the country in 2009- promotion of ‘Khadi’ as a brand. The
10. During 2010-11, 30 exhibitions/ Memorandum of Understanding Annual Report
events have already been organized 2010-11
(MoU) signed between KVIC and
till 31 December 2010.
the Textiles Committee, a statutory
1.1.12 KVIC as deemed Export body under the Ministry of Textiles
Promotion Council: continued during 2010-11. Under
KVIC has been granted the the MoU, facilities of 13 laboratories
status of ‘deemed’ Export Promotion situated across the country are
Council (EPC) by the Department of being used by KVIC for testing the
Commerce for availing assistance quality of khadi and polyvastra so
on the pattern of an umbrella EPC as to provide a fillip and thus further
like Federation of Indian Export increase the marketability of their
Organisations (FIEO), participation products. Khadi institutions avail
in international exhibitions/ the benefit of this arrangement and
fairs, organization of buyer-seller cloth samples were tested on cost
meets, etc. The assistance is as sharing basis (75 per cent of the
per admissibility under Market testing charges being borne by the
MSME 125
Chapter -V KVIC
KVIC and 25 per cent by the khadi Paper Institute (KNHPI), Sanganer,
institutions). Jaipur; Central Village Pottery
5.9.14 Research and Development: Institute (CVPI), Khanapur, Karnataka
and Khadi Gramodyog Prayog Samiti
KVIC undertakes R&D activities
(KGPS), Ahmedabad also undertake
through in-house research and also
R&D activities.
by sponsoring projects to other R&D
organisations. The main objectives 5.10 OTHER INITIATIVES TO
of the R&D programme are: increase DEVELOP KHADI AND VILLAGE
in productivity and wages of the INDUSTRIES SECTORS
workers; improvement in quality;
5.10.1 Categorization of Institutions:
efficient use of local skills and
local raw materials and reduction In order to streamline the payment
of human drudgery. In addition, of rebate, release of interest subsidy,
Mahatma Gandhi Institute for Rural supply of raw materials, etc., khadi
Annual Report institutions are categorized as A+,
Industrialization (MGIRI), Wardha,
2010-11 A, B, C and D on the basis of their
Central Bee Research and Training
performance in production, sales,
Institute (CBRTI), Pune; Dr. Ambedkar marketing, etc. As on March 31, 2010,
Institute of Rural Technology and the details of 2065 categorised khadi
Management (AIRTM), Nashik; institutions are given in the Table
Kumarappa National Handmade below:
TABLE 5.4: Categorization of Khadi Institutions
S. Type A+ A B C D Total
No.
1. Affiliated to KVIC 98 282 320 352 239 1291
2. Affiliated to State 28 168 212 307 59 774

Boards
Grand Total 126 450 532 659 298 2065
126 MSME
Chapter -V KVIC
5.10.2 Government Supply: and sheeting cloth, etc., are being

supplied to Government Agencies
KVIC has been supplying its
and bed rolls, curtains, pillow
products under the ‘Rate Contract’
covers, “kulhars” (earthern cup),
of Director General of Supplies
etc., are being made available to
and Disposal (DGS&D) to various
the Indian Railways. The position
Government Departments/
of the supplies made by KVIC to
Agencies. Based upon DGS&D
Government Offices during the
Rate Contract, the items like
last three years and in 2010-11 is
dasuti khadi, dungari cloth,
given in the Table below:
dusters, long cloth, bunting cloth
TABLE 5.9: KVIC Supplies to Governmental Agencies

(Rs. crore)
Year Amount of Government Supplies
2007-08 33.99 Annual Report
2008-09 31.82 2010-11
2009-10 21.36
2010-11* 18.15
5.10.3 Registration of New registered with KVIC and KVIBs in

Khadi Institutions 2010-11 (up to December 2010).
There was an internal ban on 5.10.4 Khadi Artisans Welfare

registration and establishment of Trust Fund (KAWTF):
new khadi institutions imposed
by KVIC. This ban has been KAWTF is conceptually meant to
relaxed and KVIC has started be run on the lines of a Provident
direct enlistment registration Fund. Membership of KAWTF
of institutions with a view to is mandatory for all khadi and
enhancing production. 72 such polyvastra producing institutions
new khadi institutions were affiliated to KVIC and State KVIBs. All
MSME 127
Chapter -V KVIC
the Institutions categorized as A+, A, produce around 5,000 National Flags

B and C are eligible to join the Trust of different sizes per day.
Fund. This Fund has been functioning
5.10.6 Khadi ‘Ready-to-Use
in 20 States and the concerned State
Mission’:
Government manages it. A total of
1,666 khadi institutions have become KVIC has initiated a “Ready-to-Use”
its members as on March 31, 2010, Mission during 2005-06 for khadi
accounting for remittance to the products. Under this project, a
tune of Rs. 163.98 crore and refund major khadi institution works as a
of Rs 8.56 crore. lead institution where facilities for
5.10.5 National Flag Production production of garments including

Centre covering, designing, finishing,
packaging, etc., are installed. Other
Khadi is the pride and joy of our
institutions working in nearby
nation and this can be easily
Annual Report areas are associated in a concentric
understood from the fact that the
2010-11 manner with the activities of the lead
Bureau of Indian Standards (BIS) gave
institution. As a result, all of them
it the first place by way of national
are able to upgrade their product
flag specifications. As per BIS, khadi
quality by sharing their experiences
is the only fabric that is to be used
and common facilities installed by
for production of India’s National
the lead institution. The National
Flag. Accordingly, one National Flag
Production Unit has been started in Institute of Fashion Technology
consultation with the South Indian (NIFT), Kolkata and Chennai have
Textile Research Association (SITRA) been engaged as Service Providers for
at Karnataka Khadi Gramodyog conceptualization and development
Samyukta Sangh, an NGO of KVIC of the project. Two projects, one
at Bengeri, Hubli (Karnataka) at an each at Murshidabad (West Bengal)
estimated cost of Rs. 51.10 lakh. The and Padiyur (Tamil Nadu), have been
National Flag Production Unit was established under this Mission. The
awarded BIS certification on February NIFT, Kolkata and Chennai have
17, 2006. The Unit has the capacity to been enlisted by KVIC to also provide
128 MSME
Chapter -V KVIC
hand-holding support in the areas of artisans and to improve the quality

design inputs and training. of raw material in khadi sector,
KVIC continued to operate its six
5.10.7 Central Sliver Plants:
Central Sliver Plants (CSPs) at Kuttur,
Khadi institutions and State KVI Chitradurga, Sehore, Raibareilly, Etah
Boards are implementing khadi and Hajipur during the year. The
programmes of KVIC. 25% of the performance of these sliver plants in
working capital given to them is terms of production and supply to
meant for raw material. In order the khadi institutions during the last
to ensure that khadi institutions three years and in 2010-11 is given in
maintain regular spinning work for the Table below:
TABLE 5.10: Performance of the CSPs

(Quantity: lakh kg, Value: Rs. Crore)
Year Production Supply
Annual Report
Quantity Value Quantity Value
2010-11
2007-08 29.86 26.91 32.73 27.18
2008-09 33.96 33.26 30.13 29.53
2009-10 35.27 35.70 35.46 35.82
2010-11* 22.83 26.32 24.00 27.63
* up to December 2010
5.10.8 Setting up of Raw Material services during the year:

Godowns (i) Dausa – Rajasthan
In order to facilitate continuous (ii) Nanded – Maharashtra
offtake of slivers/rovings by the (iii) Surendranagar – Gujarat
khadi institutions facing resource
(iv) Bijnour - Uttar Pradesh
crunch, KVIC continued operation
of local godowns during 2010-11. (v) Wavilala - Andhra Pradesh
The following 9 local raw material (vi) Metapalli, Karimnagar - Andhra
godowns provided the above Pradesh
MSME 129
Chapter -V KVIC
(vii) Sangaralingapuram - Tamil institutions, students, Panchayati

Nadu Raj Institutions, NGOs, etc. on issues
(viii) Murshidabad - West Bengal of topical interest concerning Khadi
(ix) Orutukkala - Kerala and Village Industries. KVIC provides
financial assistance for the purpose
5.10.9 People Education
through budgetary allocation.
Programme (PEP)
5.10.10 Assistance under Credit
As a part of its publicity programme Guarantee Trust Fund for MSME to
aimed at informing the people KVI units
through direct interaction between
The Credit Guarantee Trust Fund
KVIC on the one hand and people
for Micro, Small and Medium
on the other, KVIC organised 41
Enterprises (CGT-MSME) approved
PEP events in 2009-10 at the field
extension of the credit guarantee to
level and 14 PEP events during
Annual Report 2010-11 (up to December 2010). loans advanced by the banks under
2010-11
Besides dissemination of the policies the KVIC/PMEGP Schemes under
and schemes of KVIC on rural its Credit Guarantee Fund Scheme.
industrialization, essay competition; KVIC has taken steps to publicise this
debates and seminars drew a good Scheme in association with the Trust
deal of participation from academic and the participating Banks.
Shri Sesh Kumar Pulipaka Joint Secretary, Ministry of MSME

addressing the officers in Motivational Workshop.
130 MSME
CHAPTER VI
MAHATMA GANDHI INSTITUTE FOR RURAL
INDUSTRIALISATION (MGIRI)
6.1 INTRODUCTION set up by Mahatma Gandhi in 1934

in the same campus. The activities
6.1.1 There has been a long felt
of JBCRI centred around research,
need to create a mechanism that
extension and training programmes
would provide high quality science,
for village industries like oil, pottery
technology and management inputs
and handmade paper.
and support in a comprehensive
manner to the khadi and village 6.1.3 The erstwhile Jamnalal Bajaj
Central Research Institute (JBCRI), Annual Report
industries (KVI) sector. Such a
Wardha was revamped with the 2010-11
facility would strengthen rural
help of IIT, Delhi as a national level
industrialization, enhance
institute under the Ministry of MSME
employment in rural areas and also in October 2008 and rechristened
help identify new areas with greater as Mahatma Gandhi Institute for
opportunities for the sector. Rural Industrialization (MGIRI) with
a view to creating a mechanism to
6.1.2 The establishment of the
provide the best possible science,
Jamnalal Bajaj Central Research
technology and management
Institute (JBCRI) in 1955 in Wardha, inputs in a comprehensive
Maharashtra, managed as a manner to the khadi and village
departmental unit by the Khadi and industries sector.
Village Industries Commission (KVIC)
since 1956, was the first step towards 6.2 BUDGETARY SUPPORT
achieving the above-mentioned
objectives. JBCRI had its roots in the 6.2.1 The Union Government,
All India Village Industries Association through Ministry of MSME, provides
MSME 133
Chapter -VI MGIRI
funds to MGIRI for undertaking its provided during the last two years
various activities. The details of funds and in 2010-11 to MGIRI are as under:
Table: 6.1 Funds released to MGIRI

(Rs. in crore)
Year Budget allocation (RE) Funds released
2008-09 3.00 3.00
2009-10 3.00 3.00
2010-11* 6.00 2.25
6.3 FUNCTIONS facilitate the cottage and small scale

Annual Report
2010-11
units in this area, (ii) K h a d i
6.3.1 The activities of MGIRI are
and Textiles Division: The activities
being carried out by its five Divisions
mainly carried out by this division are
each headed by a Senior Scientific to improve the productivity, value
Officer and these are (i)Chemical- addition and quality of products
based Industries Division: The manufactured in khadi institutions by
main focus of this division is to introducing new technologies and by
promote quality consciousness providing quality assurance support.
and consistency in the area of food It also works towards facilitating
processing, organic foods and other eco-friendly products and methods,
products of rural chemical industries. (iii) Bio-processing Industries
It also provides a comprehensive Division: This division of MGIRI
quality testing support and is working prepares technology package and

simple quality assurance methods to
towards developing field worthy
facilitate production and utilization
kits, techniques and technologies to
134 MSME
Chapter -VI MGIRI
of organic manures, bio-fertilizers available renewable resources of

and bio-pesticides to promote rural energy to facilitate rural industries and
entrepreneurs. This section is also also to carry out audit of traditional
making efforts to develop new rural industries so as to make them
formulations using ‘Panchagavya’ and energy efficient, and (v) R u r a l
their quality assurance procedures Crafts and Engineering Division:
and facilities,(iv) Rural Energy and This Division is to help upgrade the
Infrastructure Division: This division skills, creativity and productivity of
has been established to develop rural artisans and encourage value-
user-friendly and cost-effective addition and improve the quality of
technologies utilizing commonly their products.
Annual Report
2010-11
MSME 135
Annual Report
2010-11
136 MSME
CHAPTER VII
COIR BOARD
7.1 COIR INDUSTRY which has a long coast line, lakes,

lagoons and backwaters providing
7.1.1 India is the largest coir natural conditions required for
producer in the world accounting retting. Coconut husk is left to soak in
for more than 80 per cent of the total salty backwater for months together
world production of coir fibre. The and thereafter yarn is possible to be
coir sector in India is very diverse and woven from husk. However, with the
expansion of coconut cultivation, coir
involves households, co-operatives,
industry has also picked up in Tamil Annual Report
NGOs, manufacturers and exporters.
Nadu, Karnataka, Andhra Pradesh, 2010-11
This is the best example of producing
Orissa, West Bengal, Assam, Tripura,
beautiful artifacts, handicrafts and Pondicherry and the Union Territories
utility products from coconut husks of Lakshadweep and Andaman &
which otherwise is a waste. Nicobar Islands through the efforts
of Coir Board. The production and
7.1.2 The coir industry employs
processing methods in coir industry
more than 6.50 lakh persons of still continue to be mainly traditional.
whom a majority is from rural areas For instance, spinning is mainly
belonging to the economically carried out on traditional ratts which
weaker sections of society. Nearly require repeated walking, forward
80% of the coir workers in the fibre and backward. The total production
extraction and spinning sectors are of coir fibre in the country during
the year 2009-10 was 5,15,500 M.T.
women.
The fibre production during 2010-
7.1.3 Historically, the coir industry 11 (up to December, 2010) was
started and flourished in Kerala 3,91,255 M.T.
MSME 139
Chapter -VII Coir Board
7.2 COIR BOARD manufacture of products; promoting

co-operative organisations among
7.2.1 The Coir Board is a statutory
producers of husk, coir fibre, coir yarn
body established under the Coir
and manufacturers of coir products;
Industry Act, 1953 for promoting
ensuring remunerative returns to
the overall development of the coir
producers and manufacturers, etc.
industry and improvement of the
living conditions of the workers 7.3 THRUST AREAS FOR
engaged in this traditional industry. DEVELOPMENT OF COIR
7.2.2 The Coir Board consists of a INDUSTRY
full-time Chairman and 39 Members,
7.3.1 The thrust areas for
as provided in Section 4 of the Act
development of Coir Sector in the
who represent all sections interested
country are as follows:
in the welfare of coir industry.
Annual Report (i) Modernisation of production
7.2.3 The functions of the Coir
2010-11 infrastructure by means
Board for the development of
of appropriate technology
coir industry, inter-alia, include
without displacement of
undertaking scientific, technological
labour.
and economic research and
(ii) Promotion of export of
development activities; collection
coir and new products
of statistics relating to exports and
through undertaking market
internal consumption of coir and
promotion measures
coir products; development of new
abroad.
products and designs; publicity for
(iii) Promotion of research and
promotion of exports and internal
development activities
sales; marketing of coir and coir
like process improvement,
products in India and abroad; product development and
preventing unfair competition among diversification and elimination
producers and exporters; assisting of drudgery and pollution
in the establishment of units for the abatement.
140 MSME
(iv) Development of skilled to Coir Board for undertaking its

manpower through training. various activities under Plan and
Non-plan heads. The details of
7.4 BUDGETARY SUPPORT TO
THE COIR BOARD budgetary support provided to Coir
Board during the last three years
7.4.1 The Government of India and in 2010-11 are given in the Table
through M/o MSME provides funds below:-
TABLE 7.1: Details of budgetary support to the Coir Board

(Rs. crore)
ALLOCATION (RE) FUNDS RELEASED
YEAR
Plan Plan
2007-08 36.70 35.70
2008-09 47.60 47.60 Annual Report
2009-10 42.00 38.73 2010-11
2010-11 50.65** 37.16*

** including SFURTI
7.5 ACTIVITIES OF THE COIR and manufacture of end products.

BOARD The Central Coir Research Institute,
Alleppey was established in 1959
7.5.1 Research and Development
and the Central Institute of Coir
in Coir Technology: Central Coir
Technology, Bangalore in 1980.
Research Institute (CCRI), Kalavoor,
Alleppey and Central Institute of Whereas CCRI, Kalavoor concentrates
Coir Technology (CICT), Bangalore, on research concerning both the
undertake research activities for the white and brown fibre sectors, CICT,
different aspects of coir industry Bangalore confines to the brown
beginning with the method of fibre sector. Identification of new
extraction of fibre to the processing user areas for utilization of coir and
MSME 141
coir waste (coir pith), modernization ii Development of Machinery

of production infrastructure for and Equipments
elimination of drudgery in manual iii (a)Product Development &
operation thereby attaining higher Diversification
productivity and improvement (b) Product Development on
in quality are integral parts of Brown Coir
the research efforts. Research iv Development of Environment
investigations in Central Coir Friendly Technologies
Research Institute have led to
v Technology Transfer,
development of several new
Incubation, Testing & Service
technologies for the coir industry Facilities
and it has been awarded the
7.6 DOMESTIC MARKET
prestigious National Research
PROMOTION
and Development Corporation
Annual Report (NRDC) Technology Awards thrice 7.6.1 Promotion of the sale
2010-11 of coir products in India and
for innovations in 1999, 2002 and
2004. The recent achievements of elsewhere is one of the important
functions of the Coir Board. The
the Board include development of a
Domestic Market Promotion
versatile loom, named as “Anupam’,
includes efforts for enhanced sale
and a Mobile Fibre Extraction
of coir products through Board’s
Machine “Swarna” for extraction and Showrooms and Sales Outlets
manufacturing various coir products and also popularizing coir and
with ease and higher productivity coir products by way of publicity,
and development of a technology organizing exhibitions in different
for pollution free retting. parts of the country, through audio
and visual media, sales campaign,
The R&D activities of the Board
press advertisement and through
concentrate in the following five
pamphlets, hoardings etc. The
areas.
Coir Board has participated in /
i Modernization of Production organized 80 exhibitions during
Process 2010-11 (up to December, 2010)
142 MSME
for popularization of coir and coir outlets. The total sales of coir and
products in the domestic markets. coir products through Coir Board’s
7.6.2 The Coir Board has 30 Showrooms and Sales Depots during
Showrooms and Sales Depots the last three years and in 2010-11
which also serve as marketing (up to November, 2010) are as under:
Rs. Lakh)
2007-08 2008-09 2009-10 2010-11 *
1031.15 1119.30 1406.75 767.98
* up to November, 2010
7.7 EXPORT MARKET 7.7.2 With the efforts of the Coir

PROMOTION Board, the export of coir and coir
Annual Report
products reached the level of
7.7.1 Export promotion is one of 2010-11
Rs. 804.05 crore during 2009-10
the important programmes being
recording a growth around 25%
implemented by the Coir Board for
in value terms as compared to
sustainable development of the the previous year. The details of
industry. Under this Programme, the exports of coir and coir products
Board in association with trade and made during the last three years
industry is participating in major and in 2010-11 are given in the
international fairs/exhibitions. Table below:-
TABLE 7.2: Exports of Coir & Coir Products

Year Quantity (Metric Tonnes) Value (Rs. crore)
2007-08 187567 592.88
2008-09 199925 639.97
2009-10 294508 804.05
2010-11* 185006 466.76
*up to November 2010 (provisional)
MSME 143
7.7.3 The details of participation of exports of coir and coir products

by the Coir Board in International during 2010-11 (up to December
Fairs and Exhibitions for promotion 2010) are given in Table below:
TABLE 7.3: Details of exhibition/fair participated by Coir Board
Sl. Name of the Fair Country Period

No.
1 National Hardware Show, Las USA 4-6 May, 2010

Vegas
2. Made in India Show, South Africa 30 Aug-1 Sep,

Johannesburg 2010
3. International Horti Fair, Netherlands 12-15 Oct.,

Amsterdam 2010
Annual Report
4. Mega Show, Part I, Hong Kong Hong Kong 20-23 Oct.,
2010-11 2010
5. Australian International Sourcing Australia 17-19 Nov.,

Fair, Melbourne 2010
7.7.4 In these exhibitions, visitors 7.8 DEVELOPMENT OF PRODU-

and buyers evinced keen interest in CTION INFRASTRUCTURE
the range of products exhibited. The
Under this scheme, financial
exporters who participated in these
assistance is provided for setting up
events were able to get confirmed
new coir units and modernization
orders. Besides, for popularization of
of existing units for the sustainable
coir and coir products and promoting
growth of coir sector. The financial
their exports in international markets, assistance under this scheme is
the Coir Board has taken steps like 25% of the project cost subject to
catalogue shows during the year. a maximum of Rs. 6 lakh for setting
144 MSME
up of defibering unit, Rs. 4 lakh for entrepreneur and subsidy is released

automatic spinning unit and Rs. 5 as reimbursement after coming into
lakh for others, including coir pith operation of the units. The details of
unit. Financial assistance limited financial assistance given to the units
to Rs. 2 lakh is also provided for under this Scheme during the last
modernization of existing units. three years and 2010-11 are given in
Initial investment is made by the the Table below:-
TABLE 7.4: Details of assistance towards Development of

Production Infrastructure
Year Amount (Rs. lakh) Number of Units
2007-2008 144.37 152
2008-2009 66.49 82
2009-2010 20.74 26 Annual Report
2010-2011* 20.03 17 2010-11
* up to December, 2010
7.9 SKILL UPGRADATION: Nadu. The regular training courses

QUALITY IMPROVEMENT;MAHILA being conducted at these Institutes
COIR YOJANA AND WELFARE are as follows:
MEASURES (i) Advanced training course (
7.9.1 S k i l l U p g ra d at i o n : one year)
The Coir Board continued to impart (ii) Artisans’ training course (six
training in processing of coir to months)
artisans and workers engaged in
(iii) Training in motorized ratt
the coir industry through its training
spinning under Mahila Coir
centres, i.e., National Coir Training
Yojana (two months)
and Design Centre (NCT&DC),
Kalavoor, Alleppey and Research- (iv) Training in Coir Handicraft and
Cum-Extension Centre, Tenkasi, Tamil Coir Ornaments.
MSME 145
7.9.2 The Board is also conducting Through these training activities,

training activities in different training is imparted in spinning
field training centres to suit the motorised ratt and motorised
convenience of the coir workers at traditional ratt. The stipend being
far off places who cannot attend paid to the trainees is Rs.750/- per
the above regular training centres. month. The number of persons
The Field Training Centres are run trained during the last three years
with the help of NGOs/Co-operative and in 2010-11 is given in the Table
Societies engaged in coir activities. below:
TABLE 7.5: Number of persons trained
Year Number of Persons Trained

2007-08 8987
2008-09 9916
Annual Report
2009-10 9007
2010-11
2010-11* 4947
*up to December, 2010
7.9.3 Mahila Coir Yojana: The of motorised ratts to women artisans

Mahila Coir Yojana is the first women- after giving training for spinning coir
oriented Scheme, which provides yarn. One artisan per household is
self-employment opportunities to eligible to receive assistance under
the rural women artisans in regions the Scheme. The women spinners
producing coir fibre. The conversion are trained for two months in
of coir fibre into yarn on motorised spinning coir yarn on motorised
ratt in rural households provides ratt at the Board’s Training Centres.
scope for large scale employment; A stipend of Rs.750/- paid to the
improvement in productivity and trainees. A trainee, who passes the
quality; better working conditions test conducted at the end of the
and higher income to the workers. training, is also eligible for subsidy
The Scheme envisages distribution for purchasing a motorised ratt. The
146 MSME
beneficiary under the scheme gets a less, for motorised traditional ratts.
subsidy of 75 % per cent of the cost The details of distribution of ratts and
of the motorized ratt subject to a the assistance sanctioned during the
maximum of Rs.7,500/- and 75 % of last three years and in 2009-10 are
the cost or Rs.3,200/- whichever is given in the Table below:
TABLE 7.6: Details of assistance under Mahila Coir Yojana
Year No. of ratts distributed Assistance Sanctioned

(Rs. lakh)
2007-08 2509 64.29
2008-09 3009 85.81
2009-10 264 9.62
2010-11* 216 10.3
Annual Report
7.9.4 Quality Improvement is being utilized in the coir 2010-11
Programme (QIP): The Coir Board industry. For generating employment
organizes Quality Improvement avenues in the coir sector, the
Programmes (QIPs) every year to utilisation of husk has to be increased
motivate entrepreneurs to take considerably for which more new
up coir production and to create units are required to be set up.
quality consciousness among the In order to motivate and identify
coir workers in various processing prospective entrepreneurs for setting
activities viz., spinning, dyeing and up and managing new coir units,
on improving the quality of yarn and the Coir Board organises EDPs
coir products. engaging professionally competent
7.9.5 Entrepreneurship Develop- and reputed organisations.
ment Programme (EDP): According 7.9.6 Coir Workers’ Group
to the estimates of the Coir Board, only Personal Accident Insurance
about 40% of the total Scheme: The Insurance Scheme
for coir workers was introduced by
production of coconut husk
MSME 147
the Coir Board w.e.f. 01.12.1998 and compensation payable under this
is being renewed every year. The Scheme is given in the Table below:
TABLE 7.7: Compensation payable under ‘Coir Worker’s Group Personal

Accident
Insurance Scheme’
Sl. Incident Amount Payable

No.
1 Accidental Death Rs.50,000
2 Permanent Total
Disability
(a) Loss of two limbs/ Rs.50,000

two eyes
Annual Report (b) Loss of one limb and Rs.50,000

2010-11 one eye
3 Permanent Partial
Disability
(a) Loss of one limb/one Rs.25,000

eye
(b) Provision for finger Depending upon the finger and limited
cut to applicable percentages of capital sum
insured of Rs.50,000/- as per the Personal
Accident Policy Conditions.
During 2010-11 (up to December, 7.10 HINDUSTAN COIR

2010), 5 insurance claims were settled 7.10.1 As per the Government’s
and an amount of Rs.2,50,000/- decision to mechanise one third of
paid towards compensation to the coir matting sector, the Hindustan
affected workers. Coir, a power loom coir matting
148 MSME
manufacturing factory under the total production of Hindustan Coir

Coir Board was established in 1968 matting during the last three years
as a Pilot Project. Presently, 5 looms and in the current year is given in
are installed in this factory. The the Table below:
TABLE 7.8: Details of Production of Hindustan Coir Matting

{Quantity = Sq. Mtrs: (Value = Rupees in lakh)}
2007-08 2008-09 2009-2010 2010-11*
Quantity 1,75,369 1,82,515 1,47,557 79,594
Value 280.59 306.62 247.90 187.84
7.11 Rejuvenation, Modernisation grant of Rs. 99 crore; beneficiary

and Technology Upgradation contribution of Rs. 12 crore and the
Annual Report
(REMOT): remaining Rs. 132 crore as a term
2010-11
loan from Banks. The two categories
7.11.1 A central sector scheme on of beneficiaries’ viz; Spinner and the
“Re juvenation, Modernisation and Tiny Household Producers which are
Technology Upgradation of the the most vulnerable lot in the Coir
Coir industry” was launched during Sector are to be covered under the
March, 2008 with a total outlay of Rs. Scheme as per details given in the
243 crore consisting of Government Table below:
TABLE 7.9: Details of Rejuvenation, Modernisation and Technology
Upgradation Scheme
(Amount: Rs crore)
Sl. Category Coverage No. of Invest- Term Grant Total
No (Units) Persons ment Loan
to be
employed
1. Spinning 4000 32000 4 44 32 80
MSME 149
Sl. Category Coverage No. of Invest- Term Grant Total

No (Units) Persons ment Loan
to be
employed
2. Tiny/ 3200 28800 8 88 64 160
Household
3. Survey, -- -- -- -- 3 3
Evaluation
&
Monitoring,
MIS
4. Total 7200 60800 12 132 99 243
Under this Scheme, a provision of crore was released to Coir Board up

Rs.15 crore had been made in RE to December, 2010.
2010-11 and an amount of Rs.10.52
Annual Report
2010-11
Coir Board receiving Medal “First for Excellence in Display” in the IITF’ 2010 from
Chief Minister of Delhi
150 MSME
CHAPTER VIII
NATIONAL SMALL INDUSTRIES CORPORATION
LIMITED (NSIC)
8.1 INTRODUCTION Directors, one SIDBI Nominee

Director and six Non-official Part-
National Small Industries Corporation
time Directors. The Corporation
(NSIC) Ltd., an ISO 9001 certified
is manned by a dedicated team
Company, was established by the
of professionals at different levels
Government of India in 1955. The
and operates through 123 offices
strategic objectives, for which
located all over India and one office
the Corporation was established,
located at Johannesburg (South
included “to aid, counsel, assist, Annual Report
Africa). 2010-11
finance, protect and promote the
interest of small industries in India.” 8.3 PERFORMANCE
With the enactment of the Micro, HIGHLIGHTS
Development (MSMED) Act, 2006, 8.3.1 NSIC continued its journey of
medium enterprises also came into growth and further firmed up the
same during 2010-11 and recorded
its ambit.
the operative profit of Rs. 21.81 crore
8.2 ORGANISATIONAL SET-UP up to 31st December, 2010 as against
Rs. 28.07 crore in 2009-10.
The policy guidelines to the 1.1.2 The major highlights
Corporation are provided by the of achievements made by the
Board of Directors consisting of a Corporation during the financial year
full time Chairman-cum-Managing 2009-10 and in the current financial
Director; two Functional Directors; year upto 31st December, 2010 are as
two Government Nominee under:
MSME 153
Chapter -VIII NSIC
(i) Raw Materials Facilitation Purchase Scheme and B2B

of materials like Steel, portal was Rs.5.55 crore,
Aluminium, Zinc, Copper, PTA, during the last financial
Paraffin, Wax etc. to MSMEs year and during the current
was to the tune of Rs 4,974 financial year up to 31st
crore as on 31st December, December, 2010 revenue of
2010 as against Rs 4,301 crore Rs 4.11 crore was generated.
for the financial year 2009-
10. 8.4 DIVIDEND
(ii) Portfolio under Raw Material In view of the improved
Assistance against Bank performance, NSIC for the fourth
Guarantee increased to Rs 812 year in a row paid dividend. For the
crore up to 31st December, year 2009-10 dividend of Rs. 4.85
2010 from Rs 578 crore for the crore (i.e. @ 20% of the Net Profit)
Annual Report
financial year 2009-10. for the financial year 2009-10 to
2010-11 (iii) Revenue from Government the Government.
The then Union Minister of State (I/C) for MSME Shri Dinsha Patel receiving
dividend cheque from Dr. H.P. Kumar, CMD NSIC in the presence of Shri Dinesh
Rai, the then Union Secretry, Shri Amarendra Sinha, Joint Secretary, Shri R.K.
Manchanda, EA and Shri Ravindra Nath, Director (NSIC)
154 MSME
Chapter -VIII NSIC
8.5 SCHEMES OF THE Rashtriya Ispat Nigam Ltd. (RINL);

CORPORATION National Aluminium Company Ltd.
(NALCO), Sterlite Group; Indian Oil
To enhance the competitiveness of Corporation Ltd.; Hindustan Zinc
micro, small & medium enterprises, Ltd. and Chennai Petrochemical
NSIC provides integrated support Corporation Ltd. etc., for procuring
services in the areas of Marketing, raw materials like steel, aluminium,
Technology, Finance, etc. NSIC zinc; petrochemical products and
is implementing the schemes coal etc. These arrangements are
of Marketing Assistance and aimed at making available raw
Performance & Credit Rating on materials to MSMEs at reasonable
behalf of the M/o MSME. prices and in small quantities. The
financial assistance is also extended
8.5.1 Marketing Support to
for procurement of raw material by
MSMEs
MSMEs. During the year 2009-10, Annual Report
‘Marketing’ has been identified as Raw Material Facilitation to the tune 2010-11
one of the most important tools for of Rs. 4,301 crore was provided to
business development. It is critical MSMEs and up to 31st December,
for the growth and survival of MSMEs 2010 facilitation to the tune of Rs.
in today’s intensely competitive 4,974 crore was extended.
market. NSIC acts as a facilitator and b) Consortia and Tender
has devised a number of schemes Marketing: Micro & Small Enterprises
to support enterprises in their (MSEs) in their individual capacity
marketing efforts, both in domestic face problems in procuring and
and foreign markets. These schemes executing large orders, which deny
are briefly described as under:- them a level-playing field vis a vis
large enterprises. NSIC, accordingly
a) Raw Material Distribution: forms consortia of small units
NSIC has made arrangements manufacturing the same products,
with bulk manufacturers like Steel thereby pooling in their capacity
Authority of India Ltd. (SAIL); which provides comfort level to
MSME 155
Chapter -VIII NSIC
MSEs (suppliers) and also to buyers. iii) Exemption from payment of

The Corporation applies for Tenders earnest money deposit.
on behalf of consortia of MSEs and
iv) Waiver of security deposit
secures orders for bulk quantities.
up to the monetary limit
These orders are then distributed
for which the enterprise is
amongst MSEs in tune with their
registered; and
production capacity. Testing
facilities are also provided to enable v) Issue of competency certificate
MSEs to improve and maintain the after due verification, in case
quality of their products conforming the value of an order exceeds
to the standard specifications of the the monetary limit.
buyers. During 2009-10, marketing
Up to the financial year 2009-10,
assistance of Rs. 28.13 crore was
cumulatively 47,736 units were
provided to the MSEs and during
registered under the Scheme and
the current financial year, up to 31st
Annual Report the same increased to 49,703 by 31st
December, 2010, assistance of Rs.
2010-11 December, 2010.
12.77 crore was provided.
d) Exhibitions: To showcase the
c) Single Point Registration for
competencies of Indian MSMEs,
Government Purchase: NSIC
NSIC facilitates their participations
operates a Single Point Registration
in International Exhibitions, Fairs,
Scheme under the Government
etc. on concessional terms under the
Purchase Programme, wherein the
Marketing Assistance Scheme of the
registered small enterprises get
M/o MSME by partially meeting the
purchase preference in Government
cost towards rent of stall as well as
Purchase Programme. The small
air fare. Participation in these events
enterprises registered under this
exposes MSMEs to international
Scheme get the following facilities:-
practices and enhances their business
i) Issue of Tenders free of cost.
prowess. Through participation
ii) Advance intimation of Tenders in these events, MSMEs are also
issued by DGS&D. facilitated to capture new markets
making them globally competitive.
156 MSME
Chapter -VIII NSIC
Techmart India 2010 was inaugurated by Shri Dinsha Patel, the then
Union Minister of State (I/C) for MSME in the presence of Shri Uday Kumar Varma,
Annual Report
Union Secretary, Ministry of MSME, Dr H.P. Kumar, CMD, NSIC, Shri Madhav Lal,
2010-11
the then AS&DC (MSME)
MSME 157
Chapter -VIII NSIC
e) Buyer – Seller Meets: Large (ii) Product design including

and institutional buyers such as CAD;
Railways, Defence, Communication
Departments and large companies are (iii) Common facility support in
invited to participate in buyer-seller machining, EDM, CNC, etc.;
meets to enrich MSEs knowledge (iv) Energy and environment
regarding terms and conditions, services at selected Centres;
quality standards, etc. required by and
the buyers. These Meets are aimed
(v) Practical training for skill
at vendor development from MSEs
upgradation
for the bulk manufacturers.
8.5.2 Technology Support c) A total of 8,255 units were served
under Common Facility Services
a) Technology is the key to enhancing
during the year 2009-10 and up to
Annual Report a company’s competitive advantage
2010-11 in today’s dynamic information 30th November, 2010, 5,247 units
age. MSMEs need to develop and were served.
implement a technology strategy in
8.5.3 Credit Support to MSMEs
addition to financial, marketing and
operational strategies and adopt a) Meeting credit needs of MSMEs
the one that helps integrate their through tie-up arrangements
operations with their environment, with Banks
customers and suppliers.
One of the major challenges faced
b) NSIC offers MSMEs the
by MSMEs is inadequate access
following support services through
to finance due to lack of financial
its Technical Services Centres and
information and non-formal
Extension Centres:
business practices. To overcome
(i) Material testing facilities these problems, NSIC has entered
through accredited
into tie-up arrangements with 12
laboratories;
banks (i.e. United Bank of India, UCO
158 MSME
Chapter -VIII NSIC
Bank, Oriental Bank of Commerce, MSMEs.

Central Bank of India, Bank of
Under above mentioned schemes,
Maharashtra, YES Bank, AXIS Bank,
NSIC provided credit facilitation to
Karur Vysya Bank, HSBC, Chinatrust
the tune of Rs. 1022.41 crore during
Commercial Bank, Union Bank of
2009-10 and in the current financial
India and State Bank of Hyderabad)
year up to December, 2010 credit
for helping MSMEs in accessing
facilitation to the tune of Rs 935.22
term and working capital loans.
crore was provided.
During the current financial year
up to 31st December, 2010, credit c) Performance & Credit Rating
support to the tune of Rs. 64.16 Scheme for Small Enterprises
crore was provided.
b) Financing Procurement On behalf of the M/o MSME, NSIC

of Raw Materials & Marketing is implementing “Performance & Annual Report
Credit Rating Scheme” for micro 2010-11

Activities (Short term)
and small enterprises (MSEs). The
NSIC facilitates raw material
scheme is being operated through
requirement of the MSMEs by
07 accredited rating agencies i.e.
making arrangements with bulk
CARE, CRISIL, FITCH, ICRA, ONICRA,
manufacturers for procuring the
Dun & Bradstreet and SMERA. The
materials and supplying the same
fee to be paid by the MSEs for
to MSMEs. In case they need any
the rating, is subsidized by the
credit support, NSIC provides
Government to the extent of 75%
financial assistance for raw
of the rating fee up to a maximum
material procurement by making
of Rs.40,000/- for the first year of
the payment to suppliers. NSIC
rating. The scheme has become
facilitates financing for marketing
quite popular and getting good
activities such as Internal Marketing,
response. During 2009-10, a total
Exports and Bill Discounting to
of 7,531 units were rated under the
MSME 159
Chapter -VIII NSIC
Scheme, and up to 31st December, a) Construction of ‘Marketing

2010, 7,827 units were rated. The Development- cum-Business
rating serves as a trusted third party Park’ (MDBP) at NSIC Complex,
opinion on the unit’s capabilities Okhla Industrial Estate,
and credit worthiness. A good
New Delhi.
rating enhances the acceptability
of the rated unit in the market NSIC is establishing “Marketing
and also makes it access cheaper Development-cum-Business Park”
credit quickly and thus helps in (MDBP) at Okhla, New Delhi. MDBP
economizing the cost of credit. The will be a state-of-the-art building
scheme is becoming popular and having a total covered area of
more units are coming forward for approx. 37,000 sqm.
getting rated.
b) ‘Exhibition-cum-Marketing
8.5.4 Support Services to
Annual Report Development Business Park’
MSMEs
2010-11 (EMDBP) at Hyderabad
NSIC has been doing a
NSIC has set up an Exhibition-cum-
yeoman service in the development
Marketing Development Business
of MSME for more than five
decades and it is observed that Park (EMDBP) at NTSC Campus,
one of the problems faced by the Hyderabad a prominent and well
entrepreneurs is the scarcity in developed place in the city. This
availability of suitable space where is a five storied building with a
they can set up their offices or can covered area of approx.15,000 sqm.
exhibit their products for their wider The ground floor of the building has
publicity and easy marketability an exhibition hall and the upper
under one roof. In order to give floors have been given on lease
a boost to MSMEs, NSIC has taken
and license basis to MSMEs/service
step forward by taking judicious
providers, IT and ITES/BPOs and
decision to set up the following
financial institutions/banks etc.
projects:
160 MSME
Chapter -VIII NSIC
The then Union Minister of MSME (I/C) Shri Dinsha Patel lighting the lamp on the
Annual Report
occasion of inauguration of Marketing-cum-Business Park at Hyderabad
2010-11
c) Infomediary Services under B2B facilities to MSMEs for business to

portal for MSMEs business (B2B) relationship.
Information plays a vital role in the NSIC has also hosted a dedicated B2B
success of any business. However, web portal to promote International
MSMEs have limitations in accessing Trade, wherein it has posted data
such information. NSIC provides of 28 foreign partners. Potential
Infomediary Services to MSMEs. beneficiaries would be MSMEs
Besides hosting a website (www. seeking business collaborations and
nsicindia.com), NSIC has hosted co-production opportunities, joint
sector-specific portals for focused ventures, exporters and importers
information dissemination. NSIC and those looking for technology
has hosted a B2B Web Portal (www. transfers.
nsicindia.com) which provides Some of the salient features of
comprehensive and integrated this portal are: Product specific
MSME 161
Chapter -VIII NSIC
database searches; Sector specific Members); Centralized Mail System

domestic tender notices with alert for each member; Customer Support
factors; Country specific global through Call Centre; Mirroring
tender notices from World Bank, facility and Payment Gateway for
United Nations Organization, ILO membership subscription. Further
etc., Business Trade Leads from enhancement of this Portal is also
more than 200 countries; Automatic being undertaken.
Match Making for Product, Services 8.6. INTERNATIONAL CO-

& Technology; Virtual Exhibition; OPERATION ACTIVITIES
Self-web development tool; Expert NSIC is providing consultancy
chat, Buyer/Seller chat & Video services in diverse areas namely:
Conferencing; Global Trade Shows (i) Policy and Institutional
Information; WAP services for GPRS Framework,
Annual Report activated Mobiles; SMS Alerts;Trusted (ii) Business Development
2010-11 Seal for NSIC Members (Gold, Trust Services,
Shri Virbhadra Singh, Union Minister of MSME, Shri Mohan Suresh of FISME and
Dr. H. P. Kumar, CMD, NSIC during the conference of FISME, Bengaluru
162 MSME
Chapter -VIII NSIC
(iii) Capacity Building of employable or can set up their own

Institutions engaged in MSME small enterprises. During 2009-10,
development. 24 new Training cum Incubation
Centres were set up making the
8.7 NSIC’s NEW INITIATIVES
total number of NSIC-TICs 45. In
8.7.1 Global Partnerships for the current financial year up to 31st
sharing of Best Practices December, 2010, 5 more centres
were set up making the total number
NSIC, further, strengthened its
of NSIC-TICs 50.
Web Portal on International SME
Development, which can be accessed 8.7.3 Establishment of an
on www.nsicpartners.com. The E-Learning Centre at Okhla, New
website provides a unique platform Delhi
where the recognized partners of
In order to have uniform code of
NSIC in 28 countries keep exchanging
lectures and training in all Training- Annual Report
information to facilitate sustainable
cum-Incubation Centres, NSIC 2010-11
collaborations amongst MSMEs of
established an E-Learning Centre
respective countries.
at Okhla, New Delhi, which can be
8.7.2 N S I C - T r a i n i n g - c u m - connected to all NSIC-TICs to receive
Incubation Centres (NSIC-TICs) for high quality and standardized
Small Enterprise Establishment training electronically. Lectures
under Public-Private Partnership on various training modules are
(PPP) Mode broadcasted through internet to
all the TICs from NSIC Studio. The
NSIC continued its initiative to set
studio can also be utilized for video
up new Training-cum-Incubation conferencing among Offices of the
Centres (NSIC-TICs) under PPP Corporation.
mode for the purpose of inculcating
8.7.4 Marketing Intelligence Cell
entrepreneurial skills among
unemployed persons by imparting NSIC has established a Marketing
training through which they become Intelligence Cell for collecting and
MSME 163
Chapter -VIII NSIC
disseminating both domestic January, 2010. The cell helps MSMEs

and international marketing in getting appropriate information
intelligence in coordination with at one place which would enable
other relevant departments / MSMEs in enhancing their ability to
agencies as has been recommended gauge and be at par with the global
by PM’s Task Force on MSMEs in demands.
Annual Report
2010-11
Shri T.K.A. Nair, Principal Secretary to the Hon’ble Prime Minister of India
inaugurating the “MSME-Marketing Intelligence Cell” at New Delhi
164 MSME
Chapter -VIII NSIC
8.8 MAJOR EVENTS IN 2010-11
S. Date Event
No.
1. 13th – 17th
Participation in Fourth Tri-nations Conference at
April, 2010
Brazil: NSIC participated in the 4th Tri-Nations
Conference coinciding with 4th IBSA Summit
held at Brasilia, Brazil. Tri-nations Conference is
the tri-national cooperative initiative of three
organizations i.e. NSIC from India, SEBRAE
from Brazil and SEDA from South Africa to
discuss the issues related to MSMEs of the
three countries and share their experiences
for the development of MSMEs and also to
enhance enterprise to enterprise cooperation Annual Report
among the enterprises of these three countries. 2010-11
The final report of the 4th Tri-nations Summit

was presented in the IBSA Forum to the Heads
of States of the three countries i.e. Mr. L.I. Lula da
Silva, Hon’ble President of the Republic of Brazil,
Mr. J.G. Zuma, Hon’ble President of the Republic
of South Africa and Dr. Manmohan Singh, Hon’ble
Prime Minister of Republic of India. The report
highlighted the initiatives taken by the three
organizations in terms of access to technologies
and innovations, commercial proximity among
the three countries and the exchange of
knowledge and practices in promoting our
enterprises.
MSME 165
Chapter -VIII NSIC
S. Date Event
No.
2. 19th April, 2010 An Agreement of Mutual Cooperation was signed

between NSIC and the Tobago House of Assembly,
Division of Finance and Enterprise Development
(Government of Trinidad and Tobago) for the
development of MSMEs in Trinidad & Tobago on
19th April, 2010 in the presence of Shri Dinsha
Patel, Union Minister of State (I/C) (MSME).
A five member business delegation led by Director
of Indo-Trinidad Chamber of Commerce & Industry
(ITCCI) visited NSIC on 27th April, 2010 and showed
keen interest in NSIC’s Incubator Centre.
Annual Report
3. 20th – 24th Mr. Thami Mazwai, Director, Centre for Small
2010-11
April, 2010 Business Development (CSBD), Soweto Campus
of Johannesburg University visited NSIC to
understand India’s business development model
and explore India’s success in developing small
industries through Government and private
initiatives.
4. 28th April, 2010 A delegation led by Dr. Lindeki Chweya, Permanent

Secretary, Office of the Vice President of Kenya
visited NSIC’s Okhla Incubator Centre on 28th
April, 2010.
5. 9th - 17th May, A delegation led by Dy. Chief Executive Officer of

2010 Local Enterprise Authority (LEA), Botswana visited
NSIC. The visiting delegation has shown interest in
NSIC Model of Incubation.
166 MSME
Chapter -VIII NSIC
S. Date Event
No.
6. 11th May, 2010 A five member delegation consisting of Board

of Directors of Local Enterprise Authority (LEA),
Botswana visited NSIC on 11th May, 2010. The
delegation was received at NSIC Okhla Incubator.
7. 18th May, 2010 Mohd. Matiul Islam, Chairman of IIDFC, Bangladesh

visited NSIC. A MoU between NSIC and IIDFC was
signed for sharing experiences for the development
of SMEs in both the countries.
8. 8th June, 2010 A six member delegation from Federal Micro &
Small Enterprises Development Agency, Addis
Ababa visited NSIC’s Incubator Centre.
Annual Report
9. 16th June, 2010 Lieutenant General Mompati Sebogodi Merafhe, 2010-11
Vice President of Botswana visited NSIC. An

Agreement of Mutual Cooperation was signed
between NSIC and Local Enterprise Authority (LEA)
of Botswana MSMEs in the august presence of
Lieutenant General Mompati Sebogodi Merafhe,
Vice President of Botswana. The MoU envisages
setting up of Technology-cum-Business Incubator
Centres, developing policies and Institutional
framework for SME development in Botswana.
10. 9th July,2010 An MoU between NSIC and Iran Small Industries and
Industrial Parks Organization (ISIPO) was signed
at New Delhi in the presence of Hon’ble Minister
of External Affairs, India for the development of
MSME sector in Iran.
MSME 167
Chapter -VIII NSIC
S. Date Event
No.
11. 10th – 13th NSIC organised a business delegation of 26 MSMEs

Nov., 2010 to Birmingham, U.K. on the the invitation of High
Commission of India (HCI) in U.K. HCI, London had
organised SME Conference-cum-Buyers-Sellers
meet for Indian delegates. Also visits to Aston
University, University of Loughborough were
organised to show emerging environment friendly
technologies to Indian MSMEs.
Annual Report
2010-11
An Agreement of mutual cooperation was signed between NSIC and Local

Enterprise Authority (LEA) of Botswana. Dr. H.P. Kumar, CMD, NSIC signed the
MoU in presence of Lieutenant General Mompati Sebogodi Marafhe, Hon’ble
Vice President of Botswana
168 MSME
Chapter -VIII NSIC
8.9. NSIC IN NORTH EASTERN (iv) Aggressively entrench its

REGION market position and market its
services,
8.9.1 NSIC is having a dedicated
Zonal Office at Guwahati and 5 sub- (v) Optimal utilization of its
offices all over NER to look after the infrastructure.
requirement of MSMEs in the NER.
8.11 AWARDS AND
8.10 CORE BUSINESS FOR THE
RECOGNITIONS
FUTURE
NSIC has been honoured by a
During the year, the future growth
series of awards and recognitions
strategy for the Corporation was
for excellence in business and
deliberated upon, keeping in view,
operations. NSIC-Rourkela was
the transformation that has taken
awarded “Excellence in Service”
place in the economic environment. for providing yeoman service in Annual Report
It was decided that the focus areas of the promotion and development 2010-11
the Corporation for the future would of MSMEs in the State of Orissa by
be: State Government of Orissa. NTSC-
Chennai received an Award and
(i) Building synergies and
Letter of Appreciation from VEL
Partnerships – establishing TECH Technical University, Chennai
itself central to the network of for partnering with the University in
the service providers in India, imparting skills to students by way of
in-plant training and projects entitled
(ii) Increasing the geographic
“India – a Superpower in 2020” under
footprints of NSIC,
Corporate Social Responsibility
(iii) Taking up the cause of on 16th May, 2010 by Secretary to
Government of India, Department of
marketing of products of
Science and Technology.
MSMEs,
MSME 169
Chapter -VIII NSIC
Annual Report
2010-11
170 MSME
CHAPTER IX
TRAINING, ENTREPRENEURSHIP DEVELOPMENT AND
OTHER SCHEMES
9.1 BACKGROUND However, a large segment of the

population, particularly in the
9.1.1 Entrepreneurship has been
industrially backward regions/
considered the backbone of
rural areas generally lags behind
economic development. It has
in taking advantage of these
been well established that the level
opportunities. Therefore, there is a
of economic growth of a region to a
need to provide skill development
large extent, depends on the level
and entrepreneurship development Annual Report
of entrepreneurial activities in the
training to such people in order 2010-11
region. The myth that entrepreneurs
to bring them to mainstream of
are born, no more holds good,
economic growth.
rather it is well recognised now that
the entrepreneurs can be created 9.1.3 Entrepreneurship develo-
and nurtured through appropriate pment and training is, thus, one of
interventions in the form of the key elements for development
entrepreneurship development of micro and small enterprises
programmes. (MSEs), particularly, the first
9.1.2 In the era of liberalisation, generation entrepreneurs. To
privatisation and globalisation undertake this task on regular
along with ongoing IT revolution, basis, the Ministry has set up three
capable entrepreneurs are making national-level Entrepreneurship
use of the opportunities emerging Development Institutes (EDIs).
from the evolving scenario. These are the National Institute
MSME 173
Chapter -IX EDIs/OTHER SCHEMES
for Entrepreneurship and important scheme, namely,

Small Business Development Scheme for Assistance to Training
(NIESBUD), NOIDA, (UP), the Institutions. The main objectives
National Institute for Micro, of the scheme are development
Small and Medium Enterprises of indigenous entrepreneurship
(NI-MSME), Hyderabad from all walks of life for developing
and the Indian Institute of new micro and small enterprises,
Entrepreneurship (IIE), Guwahati. enlarging the entrepreneurial base
Further, the Ministry has been and encouraging self-employment
implementing {in addition to in rural as well as urban areas, by
the schemes operating by the providing training to first generation
Office of the Development entrepreneurs and assisting them
Commissioner (MSME)}, an in setting up of enterprises.
Annual Report
2010-11
Shri Dinsha Patel, the then Union Minister of State (I/C) for MSME inaugurating the
newly constructed additional floor at NIMSME complex in the presence of Shri Uday
Kumar Varma, Union Secretary (MSME), Shri Saurabh Chandra, AS&FA, Shri Madhav
Lal, the then AS & DC (MSME) and Shri Amarendra Sinha, Joint Secretary
174 MSME
9.1.4 Further, in order to improve 9.2 SCHEME FOR

the success rate of the EDP ASSISTANCE FOR
trainees in the establishment of STRENGTHENING OF
new enterprises, the Ministry had TRAINING INFRASTRUCTURE
launched a scheme, namely, “Rajiv OF EXISTING AND NEW
Gandhi Udyami Mitra Yojana” ENTREPRENEURSHIP
(a scheme for Promotion and DEVELOPMENT INSTITUTES
Handholding of Micro and Small (EDIs)
Enterprises). The main objective
9.2.1 Under the scheme,
of this scheme is to provide
assistance is provided to
handholding support to first
existing and new training
generation entrepreneurs, through
Institutions for establishment of
designated lead agencies i.e.
Entrepreneurship Development Annual Report
‘Udyami Mitras’. Under this scheme,
Institute (EDI) and strengthening 2010-11
the ‘Udyami Mitras’ are providing
of their training infrastructure
guidance and assistance to the
on a matching basis. Ministry
potential entrepreneurs registered
provides assistance on a
with them, in preparation of project
matching basis, not exceeding
report, arranging finance, selection
50% of the project cost or
of technology, marketing tie-ups
Rs. 150 lakh whichever is less
with buyers, installation of plant
(90% or Rs. 270 lakh of the
and machinery as well as obtaining
project cost whichever is less,
various approvals, clearances
for North Eastern States and
and NOCs etc. For providing this
Union Territories of Andaman
handholding assistance to the new
& Nicobar and Lakshadweep
entrepreneurs, the ‘Udyami Mitras’
Islands) excluding cost of land
are paid handholding charges
and working capital. The balance
under the scheme.
MSME 175
50% of the matching contribution 9.2.3 Assistance is also provided

(10% for State level EDIs in North under the scheme to following
Eastern States including Sikkim or Training Institutions, for
Union Territories of Andaman & conducting Entrepreneurship
Nicobar and Lakshadweep Islands) Development Programmes
should come from the concerned (EDPs) and Entrepreneurship cum
Institute, State/UT Government, Skill Development Programmes
public funded institution(s), NGOs/ (ESDPs) and Training of Trainers
Trusts/ Banks/Companies/ Societies/
(ToTs) programmes in the areas
Voluntary organizations etc.
of Entrepreneurship and/or Skill
9.2.2 The assistance is for creation Development.
of infrastructure. The land is to be (a) National level EDIs (including
Annual Report
provided by the State Government branches),
2010-11 or any other institution or by the
(b) Training Institutions
applicant. Financial assistance is for
established by Partner
construction of building, purchase
Institutions (PIs) of national
of training aids/equipments, office
level EDIs,
equipments, computers and for
providing other support services (c) Training/Incubation Centers
e.g. libraries/data bases etc. The of NSIC,
costs of land, construction of staff (d) Training cum Incubation
quarters etc. do not qualify for
Centers (TICs) set up by NSIC
calculation of matching grant from
(e) Other training institutions
the Central Government. All the
with proven professional
proposals under this scheme are
required to be recommended by competency, capacity and
and routed through the concerned experience, approved under
State/UT Government. the scheme.
176 MSME
9.2.4 Entrepreneurship and Skill Trainer’s Training (TOT) for 300

Development (ESDP) training would hours.
normally be of 100 to 300 hours (1 Maximum training assistance
to 3 months). Entrepreneurship (per trainee per hour) would be
Development (EDP) training would limited to following rates:-
be of 72 hours (2 weeks) and
Particulars Maximum assistance per

trainee per hour (Rs)
SC/ST/Physically Handicapped (PH) /North Eastern Region (including Sikkim),

Union Territories of Andaman & Nicobar and Lakshdweep Islands (NER+)
District Head Quarter (HQ) 60/-
Urban areas other than District HQ 50/-

Annual Report
Rural areas 40/-
2010-11
Others
District HQ 50/-
Urban areas other than District HQ 40/-
Rural areas 30/-

Assistance for Training of Trainers (ToTs) programmes would be provided @ Rs 60 per trainee per hour.
9.2.5 It would be possible to dovetail 9.3 NATIONAL INSTITUTE

benefits available under schemes of FOR ENTREPRENEURSHIP AND
other Ministries/ Departments/ State/ SMALL BUSINESS DEVELOPMENT
UT Governments for stipend, TA/DA (NIESBUD), NOIDA, UP.
etc. with assistance under schemes
9.3.1 National Institute for
of other Ministries /Departments/
Entrepreneurship & Small Business
State/ UT Governments (without
duplication). Development (NIESBUD) is a
MSME 177
premier Institute established in 1983, implementing programmes related to

for coordinating and overviewing self-employment, entrepreneurship
the activities of various institutions, and industrial development; offering
agencies engaged in developing consultancy services needed for
entrepreneurship, primarily in improving management efficiency,
small industry, small business and productivity and technology
human resources development. The adopted by existing entrepreneurs;
Institute has been actively engaged undertaking documentation
in organizing national/international and disseminating information
training programs, which have related to entrepreneurship/
benefited MSMEs throughout India enterprise development; preparing
and in more than 115 countries and publishing literature and
internationally. information materials related
Annual Report to entrepreneurship/ enterprise
9.3.2 The major activities of
2010-11 development; providing forum for
the Institute include identifying
interaction and exchange of views/
requirements and conducting
experiences for different groups
training programmes aimed at
mainly through seminars, workshops,
entrepreneurship development for
different target groups including conferences etc; studying problems
members of various Government and conducting researches/review
and NGOs engaged in supporting studies etc. for generating knowledge
and promoting entrepreneurship; for accelerating the process of
evolving and standardizing field entrepreneurship development
tested strategies and methodologies culminating into establishment of
of developing entrepreneurship to new economic ventures; evolving,
suit the respective locations and designing and helping use of various
target groups and clusters; gathering, media for promoting the culture of
analyzing and processing information entrepreneurship among different
needed for formulation of policies and strata of society.
178 MSME
9.3.3 During the year 2010-11, as on December 31, 2010. The

the Institute has organized 340 category-wise details of the training
training activities for different target programmes thus organized during
groups with 10,939 participants the year, are given in Table 9.1
Table 9.1: Performance of NIESBUD during 2009-10

and during 2010-11
Sl. Category of the Programme 2009-10 2010-11

No. (up to Dec. 31, 09) (up to Dec. 31, 10)
No. of No. of No. of No. of

Progs. Parti. Progs. Parti.
1. Trainers/ Promoters Training; 21 380 17 298

Small Business Opportunities
& Development and
Entrepreneurship Continuing Annual Report
Education Programme 2010-11
2. Entrepreneurship-cum-Skill 131 3426 219 5,543

Development Programmes,
EDPs and SDPs
3. International Training 03 48 05 104

Programmes
Total 155 3,854 241 5,945
4. Seminars, Workshops & 110 5,378 89 4,994

Conferences/Awareness-cum-
Motivational Campaigns
Grand Total 265 9,232 330 10,939
The training programmes Institute during the corresponding

conducted are in comparison period of the year 2009-10. This
to 265 programmes with 8,232 represents growth of 25% in terms
participants organized by the of training programmes and 19%
MSME 179
in terms of the participants, during Call Centre for MSME made

the year 2010-11 over 2009-10. operational recently by the
Ministry.
9.3.4 The 3 regular announced
International Training Programmes iii) Five Orientation Programmes
with 68 Principals and Senior
conducted by the Institute with 54
Faculty of ITIs were organized
participants drawn from different
under the auspices of the
Afro-Asian countries were: Small
O/o Director General of
Business Planning & Promotion; Employment and Training
Business Advisors’ Training and (DGET), Ministry of Labour and
Human Resource Development Employment, Government of
and Entrepreneurship Education & India.
Training. iv) A 5-days’ Organization
Annual Report 9.3.5 The broad salient features of Programme on “RTI, IT &
2010-11 Behavioural Competency and
the training activities during the
Other Job Oriented Functions”
period, are enumerated below:-
was organized for 20 Central
i) The majority of the training Labour Service (CLS) Officers
activities organized consisted on behalf of the O/o the
of EDPs, SDPs and ESDPs Chief Labour Commissioner
under the Ministry’s Scheme (C), Ministry of Labour &
Employment, Government of
of Assistance to Training
India.
Institutions.
v) The period also saw 109
ii) Five Training Programmes
participants of the training
for 155 beneficiaries
activities of the Institute being
were organized under the Rajiv assisted in obtaining gainful
Gandhi Udyami Mitra Yojana employment in different
(RGUMY) of the Ministry of industries after completion of
MSME and for Executives of the their respective training.
180 MSME
vi) Besides, 284 beneficiaries etc. during the period, which

were assisted/guided for were attended by 4,994 persons.
enabling them to set up their The majority of the activities
own ventures during the under this category consisted
period. of Awareness-cum-Motivational
Campaigns and Workshops in
9.3.6 The Institute organized a
Industrial Clusters on different
total of 89 Seminars/Workshops
topics.
Annual Report
2010-11
Shri Arun Kumar Jha, DG, NIESBUD awarding certificate
9.3.7 In consonance with the the growing demands in different

efforts of the Government, sectors, the Institute conducted a
aimed at increasing the supply total of 219 Entrepreneurship-cum-
of skilled manpower for meeting Skill Development Programmes,
MSME 181
Entrepreneurship Development Clusters, are given below: -

Programmes and Skill Development i) Organizing training
Programmes for 5,543 participants, programmes on
which largely represented Women, Computerized Design
SCs/STs/OBCs and other Weaker Development in the Clusters
Sections of the Society. These of Bone Ware, Loni and in
Programmes were in the trades of Brass Cluster, Moradabad
Computer Hardware & Networking, and training programmes on
Mobile Repairing, Retail Export Documentation and
Management, Desk Top Publishing Procedure in Brass Cluster,
(DTP), Hospitality, Bio-technology, Moradabad.
Computerized Design, Security
ii) Carrying out 5 S (Sigma)
Services, Machine Embroidery
implementation in 25 units
Annual Report & Tracing, Garment Drafting &
of Textile Printing Cluster,
2010-11 Construction, Artificial Gems &
Pilakhua.
Jewellery, Beauty & Health Care,
iii) Holding meetings with
Export Procedure & Documentation,
different stakeholders about
Repair & Maintenance of Electrical
implementation of Soft
Appliances, Food Processing,
Intervention and discussing
Machine Embroidery & Tracing,
the salient details of Hard
Ware-housing & Presentation of
Intervention in Auto Cluster,
Agri Products, Inverter Assembling
Gurgaon and Bone Ware
etc.
Cluster, Loni.
9.3.8 The Institute is looking after
iv) Reviewing the overall
different works in a total of 26
progress in the Khadi Clusters
Clusters. The broad outlines of the
of Kurukshetra, Amritsar,
work executed by the Institute
Hoshiarpur (Wooden Inlay
during the current year in these
Cluster) and Una (Plant Fiber
182 MSME
Cluster). Centre (EDC) through Partner
v) Preparation of the Diagonstic Institutions, for extending
Study Report etc. for the the outreach of the training
Embroidery Cluster, Meerut. activities, has empanelled a total

of 22 eligible and competent
vi) Reviewing the progress of the
organizations/agencies as its
work in respect of Incense
Partner Institutions during
Stick (Agarbatti) Cluster,
the period. A total of 70
Kannauj.
training programmes for 1750
vii) To establish of the Common participants is to be conducted
Facility Centre in Scissors during the year 2010-11 through
Cluster, Meerut. these agencies under the
viii) Promoting the marketing Ministry’s Scheme of Assistance
linkages for the products of to Training Institutions. Annual Report
2010-11
different Clusters through
providing opportunities 9.4 NATIONAL INSTITUTE
of participation in the FOR MICRO, SMALL AND
forthcoming India MEDIUM ENTERPRISES (NI-
International Trade Fair, 2010. MSME), HYDERABAD
ix) Prepare the Diagonistic Study

9.4.1 National Institute for Micro,
Reports in respect of Artificial
Jewellery Cluster, Meerut;
(NI-MSME) was established in
Embroidery Cluster, Meerut
1960 and was known as National
and Mechanical Engineering
Institute of Small Industry
Cluster, Sahibabad.
Extension Training (NISIET). The
9.3.9 The Institute in accordance academic activities are organized
under the Scheme of through Schools of Excellence,
Entrepreneurship Development each School consisting of
MSME 183
theme focused centres and with quantitative and qualitative

cells. The Academic Council is benchmarks by providing a
the nucleus coordinating body, framework for assessment and
which formulates academic evaluation addressing contextual
activities and programmes variations.
Annual Report
2010-11
Shri Uday Kumar Varma, Union Secretary (MSME) along with Shri Saurabh Chandra,
AS & FA, Shri Madhav Lal, the then AS&DC, Shri Sesh Kumar Pulipaka, JS
during the Executive Committee meeting of NIMSME
9.4.2 During the period from participants, are anticipated to
April 2010 to December 2010, be conducted. 15 International
the Institute has conducted 126 announced sponsored programmes
training programmes under for 244 senior executives from
different developing countries were
National announced sponsored
conducted up to end of December,
programme, which were attended
2010 and 6 more programmes to
by 4,054 persons. During the
cover as many as 70 executives are
remaining period of the year, anticipated during the remaining
17 programmes, in which 520 period of the year. As many as 56
184 MSME
Shri Dinsha Patel, the then Union Minister of State (I/C) for MSME addressing the
participants of ‘National Training Programmes and Message to the National and
International Participants’ at NIMSME, Hyderabad
Seminars and Workshops were 2010 – December 2010 and they

conducted during the same period were in progress. The performance
Annual Report
and they were attended by 4,469 of the Institute during 2009- 2010-11
delegates. 3 more are anticipated 10 (actual) and during 2010-11
to be conducted and the delegates (up to 31st December 2010) and
expected are 120. 91 research and projections for the remaining
consultancy projects were taken period of 2010-11 are given in the
up during the period from April Table – 9.2.
Table 9.2: Performance of NI-MSME during 2009-10 & 2010-11
2009-10 2010-11
From 1.4.2010 From 1.1.2011
to 31.12.2010 to 31.3.2011 Total
Type of (actuals) (Projected)
Programmes
Participants
Programmes
Programmes
Programmes
Programmes
Participants
Participants
Participants
Entrepreneurship
Development
Programmes
MSME 185
Programmes under
Assistance to
Training Institutions
sponsored by M/o
MSME:
ni-msme as Apex
07 175 25 715 87 2610 112 3325
Institution
Programmes by
00 00 160 4600 150 3566 310 8166
Partner Institutions
Counselling,
Re-training and
Re-deployment 29 1254 11 567 04 200 15 767
of rationalized
employees of CPSUs
Skill Development
in IT for Socially 00 00 01 32 00 00 01 32
Challenged Youth
Annual Report
Skill Development
2010-11
EDPs
Other EDPs 17 520 36 1440 12 360 48 1800
Other Programmes:
National:
Announced 21 915 12 241 03 30 15 271
Sponsored 46 1669 38 2252 02 65 40 2317
International:
Announced 12 222 14 233 04 50 18 283
Sponsored 02 31 01 11 02 20 03 31
Seminars and
95 6779 57 4336 03 120 60 4456
Workshops
Consultancy &
76 91 91
Research
Total 305 11565 446 14427 267 7021 713 21448
186 MSME
Annual Report
2010-11
Shri Uday Kumar Varma, Union Secretary (MSME) addressing the

participants in NIMSME, Hyderabad
9.4.3 NI-MSME has already year 2010-11. As on 31 st December,

enrolled as many as 22 Partner 2010, 25 programmes by ni-msme
Institutions.The Ministry of MSME and 160 programmes through
has earmarked 105 programmes Partner Institutions covering 5,315
for 3150 participants to ni-msme participants were conducted.
and 235 programmes for 6290 The remaining programmes are
participants through Partner expected to be completed before
Institutions of ni-msme for the 31 st March, 2011.
MSME 187
Annual Report
Shri Dinsha Patel, the then Union Minister of State (I/C) for MSME at the
2010-11 inaugural session of the Training programme along
with Shri Uday Kumar Varma, Union Secretary (MSME)
and Dr. Chukka Kondiah, Principal Director, NIMSME
9.5 INDIAN INSTITUTE OF its establishment and up to March

ENTREPRENEURSHIP (IIE), GUWA 2010, the Institute has organized
HATI 1933 training programmes/
workshops/seminars/meets where
9.5.1 Indian Institute of
71,275 participants participated.
Entrepreneurship (IIE), is completing
17th year of its operation on 31st 9.5.2 The performance of the
March 2011. During this period, Institute during 2009-10 (actual)
the Institute has expanded its and during 2010-11 (up to 31st
activities to a great extent covering December 2010) is given in
all facets of SME activities. Since Table 9.3.
188 MSME
Table 9.3: Performance of IIE during 2009-10 and during 2010-11
Sl. 2009-10 2010-11

No (Up to Dec.2010)
Type of No of No of No of No of
programme programme participants programme participants
1 EDP 114 3045 64 1810
2 ESDP/SDP 11 284 193 5131
3 MDP 45 1292 15 450
4 OTHERS 127 7403 41 1882
Total: 297 12024 313 9273
9.5.3 Considering the importance awareness about entrepreneurship.

of creating environment for During the year, the Institute has Annual Report
entrepreneurship development, organized 33 such programmes 2010-11
the Institute has been organizing with 1,337 participants. Details are
a number of programmes to create given below in Table 9.4.
Table: 9.4
Sl Categories Programme Participants

No
1 Motivating youth for self employment 1 40
2 Orientation for officers of Industries Dept. 4 103
3 Trainers Programme on Entrepreneurship 7 213
4 Short duration programmes on EAP/EAC/ 21 981

FAP
Total 33 1337
MSME 189
9.5.4 Creating Awareness on areas of the Institute. The Institute

Entrepreneurship among the organizes Faculty Development
students has been one of the core Programmes for University and
Annual Report
2010-11
College Teachers and Awareness Meets and Conferences for

Camps for Students of Colleges. providing forum for interaction
The Institute organized one Faculty and exchange of views by various
Development Programme for agencies and entrepreneurs. During
College Teachers where 31 college the year 2010-11, the Institute
teachers participated. organized 2 such Workshops/Meets
9.5.5 The Institute has been on various activities relating to
organizing Seminars, Workshops, Micro and Small Enterprise growth
190 MSME
Annual Report
2010-11
and development. Altogether, entrepreneurs and artisans in

136 participants attended these Gemstone processing and Hosiery
Workshops/Seminars/Meets. processing respectively through its
training centers at its premises and
9.5.6 The Institute under the
also at Aizwal, Sikkim and Arunachal
sponsorship of Ministry of
Pradesh. It provides incubation
MSME, Government of India has
facilities and technical support and
initiated a unique programme of
guidance and market linkages to
Comprehensive Entrepreneurship
Development (CEDP) on Gemstones prospective entrepreneurs in these
Processing and Hosiery & Woolen sectors.

Garment manufacturing. The 9.5.7 As an alternative solution
Institute imparts skill development to meet the rural unemployment
training to prospective problem, the Small Industries
MSME 191
Development Bank of India (SIDBI) Institute has spread its RIP activities
has launched a pilot project called in Meghalaya, Manipur, Nagaland
‘Rural Industries Programme’ (RIP) and Mizoram States also. Till date,
the Institute grounded 295 units
in November 1993. Indian Institute
in Assam, 176 units in Meghalaya,
of Entrepreneurship started its first
71 units in Manipur, 64 units in
RIP Programme in Nagaon district
Nagaland and 35 units in Mizoram
of Assam in the year 1996. Now the
under RIP.
Annual Report
2010-11
9.5.8 In keeping with the trend of North Eastern Region with financial
the recent worldwide phenomenon linkage. The Institute has also
of entrepreneurship development started intervention in Handloom
through area approach, IIE initiated Clusters in Arunachal Pradesh and
cluster development efforts to in Uttarkhand.
develop the languishing small and 9.5.9 IIE has been mandated the role
traditional industrial sector in the of Technical Agency for 14 clusters
192 MSME
in khadi, village industry and coir and 4 soft interventions are going
sector. IIE has conducted a series on.
of training/seminars/workshops
covering various aspects of the 9.6 RAJIV GANDHI UDYAMI
implementation of the programme. MITRA YOJANA (RGUMY)
In addition, IIE has also facilitated 9.6.1 The objective of Rajiv Gandhi
linkage with various professional Udyami Mitra Yojana (RGUMY) is
and support institutions for planned to provide handholding support
capacity building activities for and assistance to the potential first
different clusters. IIE has assisted the generation entrepreneurs, through
Implementing Agencies in product the selected lead agencies i.e.
development both through design ‘Udyami Mitras’, in the establishment
development and technology and management of the new
infusion by providing linkages enterprise, completion of various Annual Report
with designers, technologists and 2010-11

formalities required for setting up
institutions like Weavers Service and running of the enterprise and in
Centre etc. For market promotion, dealing with various procedural and
IIE has assisted the different clusters legal hurdles. Under this Scheme,
through initiatives like development the selected lead agencies i.e.
of E-portal, conducting and ‘Udyami Mitras’ provide guidance
facilitating buyer seller meet, and consultation to the potential
facilitating exhibition participation, entrepreneurs registered with
providing linkages with marketing them, in preparation of project
experts and retail houses etc. The report; arranging finance; selection
Institute completed/organized 9 of technology; marketing tie-ups
soft interventions, 7 pre-diagnostic with buyers; installation of plant
studies, 2 diagnostic studies under and machinery as well as obtaining
the Regional Resource Centre. various approvals, clearances and
Presently 7 pre-diagnostic studies NOCs etc.
MSME 193
9.6.2 In order to further enhance Udyami Mitras. The Udyami Mitras

the scope and effectiveness of are paid handholding charges
the scheme by also extending under the Scheme, including
information support, guidance and nominal contribution of the
assistance to all entrepreneurs, a concerned entrepreneur. However,
Udyami Helpline - a Call Centre the beneficiaries belonging to
for MSMEs has been set up. SC/ST/ Physically handicapped/
Information on various schemes of Women and beneficiaries from NER
the Government targeted for the are subsidized under the scheme
benefit of MSMEs is provided on a for availing the handholding
toll free number 1800-180-6763 in support from Udyami Mitra. 3,375
Hindi and English languages. The numbers of Udyami Mitras have
Udyami Helpline operates on all 365 been empanelled up to December,
Annual Report
2010-11 days of the year including Sundays 2010, who are providing hand-
and Holidays from 6 am to 10 pm.
holding assistance to about 9,500
9.6.3 Apex organizations under first generation entrepreneurs.
the Ministry namely Office of DC
(MSME), KVIC, NSIC and three 9.7 MARKETING ASSISTANCE
national level EDIs i.e NIESBUD, SCHEME
Noida, NIMSME, Hyderabad and IIE, 9.7.1 This is an ongoing scheme for
Guwahati through their field offices providing support to MSMEs. NSIC is
are working as deemed Udyami the implementing agency on behalf
Mitras. The eligible organizations of the M/o MSME.The main objectives
at State level and district level duly of the scheme is to enhance
recommended by the concerned the marketing competitiveness
State Commissioner/ Director of MSMEs; to provide them a
(Industries) are also empanelled as
platform for interaction with the
194 MSME
individual/institutional buyers; programmes are aimed at vendor

to update them with prevalent development from small enterprises
market scenario and to provide for the bulk manufacturers. Intensive
them a forum for redressing their campaigns and other marketing
problems. Marketing, a strategic events are organized all over the
tool for business development, is country to disseminate/ propagate
critical for the growth and survival about the various schemes for the
of MSMEs in today’s intensely benefit of the MSMEs and to enrich
competitive market. One of the their knowledge with respect to
major challenges before the MSME the latest developments, quality
sector is to market their products/ standards etc.
services. MSMEs are supported
under the Scheme for capturing 9.8 PERFORMANCE and
Annual Report
the new market opportunities CREDIT RATING SCHEME 2010-11
through organizing/ participating
9.8.1 This Scheme was launched
in various domestic & international
in the year 2005. NSIC has been
exhibitions/trade fairs, Buyer-Seller
appointed as implementing agency
meets, intensive-campaigns and
for the Scheme by the M/o MSME.
other marketing events.
9.8.2 Under the Scheme, seven
9.7.2 Bulk and departmental buyers
renowned, accredited rating
such as the Railways, Defence,
agencies viz., CARE, CRISIL, Dun
Communication Departments and
large companies are invited to & Bradstreet (D&B), FITCH, ICRA,
participate in Buyer-Seller Meets ONICRA and SMERA have been
to bring them closer to the small empanelled to carry out the rating.
enterprises for enhancing their MSMEs are free to choose any one
marketing competitiveness. These of them as per their convenience.
MSME 195
9.8.3 The Scheme is aimed at enterprises (MSEs) and large number

creating awareness among micro of units are coming forward for the
and small enterprises (MSEs) rating. An independent agency has
{medium enterprises are not conducted the study to assess the
included under the Scheme} about impact of the Scheme in the context
the strengths and weaknesses of its objectives and benefits. The
of their existing operations and agency has found that the rating
to provide them an opportunity scheme is an excellent effort and
to enhance their organizational the idea behind the rating scheme
strengths and credit worthiness. The has been well received by the small
rating under the scheme serves as a enterprises. As per the Agency, the
trusted third party opinion on the scheme has been given recognition
Annual Report capabilities and creditworthiness and acceptance by the Banks,
2010-11 of the micro and small enterprises. Financial Institutions, Customers/
An independent rating by an Buyers and Suppliers / Vendors. The
accredited rating agency has a rating has helped these units to
good acceptance from the Banks/ understand their areas of strengths
Financial Institutions, Customers/ and weaknesses. The units which
Buyers and Vendors. Under this have not been rated ‘good or’ have
scheme, rating fee payable by been rated ‘below poor’ have also
the micro and small enterprises is been helped in initiating measures
subsidized for the first year only for improvement.
subject to a maximum of 75% of
the Fee or Rs. 40000/-, whichever is 9.9 SURVEY, STUDIES AND
lower. POLICY RESEARCH
9.8.4 The scheme is getting good This is an on-going scheme. The

response from the micro and small main objectives of the Scheme
196 MSME
are (i) to regularly/periodically and globalization of the economy,

collect relevant and reliable data and (iii) to use the results of
on various aspects and features of these surveys and analytical
MSMEs, (ii) to study and analyze, studies for policy research and
on the basis of empirical data or designing appropriate strategies
otherwise, the constraints and and measures of intervention by
challenges faced by MSMEs as well the Government. Serveral studies
as the opportunities available to on the MSME sector have been
them in the context of liberalization completed under this scheme.
Annual Report
2010-11
MSME 197
Annual Report
2010-11
198 MSME
CHAPTER X
PRIME MINISTER’S EMPLOYMENT GENERATION
PROGRAMME (PMEGP) AND SCHEME OF FUND
FOR REGENERATION OF TRADITIONAL INDUSTRIES
(SFURTI)
10.1 A scheme titled ‘Prime • To generate employment
Minister’s Employment Generation opportunities in rural as well
Programme (PMEGP)’ was launched as urban areas;
in 2008 with the merging of • To bring together widely
the then existing Prime Minister dispersed traditional artisans/
Rojgar Yojana (PMRY) and rural and urban unemployed
Rural Employment Generation youth and give them self- Annual Report
Programme (REGP) schemes of this employment opportunities 2010-11
Ministry with a total Plan outlay to the extent possible, at their
of Rs. 4735 crore including Rs. 250 place;
crore for backward and forward
• To provide continuous and
linkages. The Scheme is estimated
sustainable employment to a
to generate 37.37 lakh additional
large segment of traditional
employment opportunities during
and prospective artisans and
the remaining four years of the XI
rural & urban unemployed
Plan. The Guidelines of the Scheme
youth; and
are available on the website of the
Ministry of MSME (www.pmegp.in; • To increase the wage earning
www.msme.gov.in). capacity of artisans.
10.2 MAIN OBJECTIVES 10.3 SALIENT FEATURES
The main objectives of the PMEGP The salient features of the

are: scheme are as follows:
MSME 201
Chapter -X PMEGP & SFURTI
• Any individual, above 18 years belonging to SC/ST and

of age, is eligible. borrowers from other weaker
• No income ceiling has been sections, etc., the beneficiary’s

prescribed for assistance. contribution is 5 per cent of
the project cost.
• For setting up of project
costing above Rs. 10 lakh in • Banks will sanction loan for
the manufacturing sector the balance of the project
and above Rs. 5 lakh in the cost (90% or 95% as the case
business /service sector, the may be). After the sanction of
beneficiaries should possess the credit by the Bank and the
educational qualification of beneficiary has undergone
having passed at least VIII EDP training, eligible amount
Annual Report standard. of margin money will be kept
2010-11
• Assistance under the Scheme in term deposit for three years
is available only for new in the account of the borrower
projects sanctioned. at the leading bank branch,
• Self Help Groups (SHG) which will be credited to the
including those belonging borrower’s loan account after
to BPL are also eligible for a period of two years from the
assistance provided that they date of first disbursement of
have not availed benefits loan.
under any other Scheme. • The permissible margin

• The borrower is required to money assistance is kept at
bring in own contribution of a higher level as compared
10 per cent of the project cost. to PMRY and REGP and is as
In the case of beneficiaries detailed in the Table below:
202 MSME
TABLE 10.1: Assistance under PMEGP
Categories of beneficiaries Beneficiary’s Rate of Margin Money

under PMEGP Contribution Subsidy
(of project (of project cost)
cost)
Area (location of project/unit) Urban Rural
General Category 10% 15% 25%
Special Category (including SC 05% 25% 35%

/ ST / OBC /Minorities/Women,
Ex-servicemen, Physically
handicapped, NER, Hill and
Border areas etc.)
Note: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.
(2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.
(3) The balance amount of the total project cost will be provided by Banks as term loan Annual Report
2010-11
Definition of “RURAL AREA” service with or without the use of
AND “VILLAGE INDUSTRIES” power and in which the fixed capital
investment per head of artisan or
(a) “Rural Area means the area
worker does not exceed Rs. one lakh
comprised in any village, and includes
(Rs. one lakh and fifty thousand in
the area comprised in any town, the
case of village industry located in a
population of which does not exceed
hilly area) or such other sum as may,
twenty thousand or such other figure
by notification in the Official Gazette,
as the Central Government may
specify from time to time.” be specified from time to time by the
Central Government”.
(b) Similarly, the term “village
industries” has been redefined in 10.4 IMPLEMENTING AGENCY
amended KVIC, Act, 1956 as “any
industry located in a rural area which The following agencies are involved
produces any goods or renders any in implementation of PMEGP:
MSME 203
• At national level, KVIC is 10.5 BACKWARD AND FORWARD

the single Nodal Agency for LINKAGES
implementation of PMEGP.
Besides margin money assistance, the
• At the State level, the Scheme
Government also provides financial
is implemented through State
assistance for backward and forward
Directorates of KVIC; State
linkages through KVIC which includes
Khadi and Village Industries
revamped EDP training; awareness
Boards (KVIBs) and District
camps; publicity; workshops;
Industries Centres of State
bankers, review meetings; district,
Governments.
State and national level exhibitions;
Besides the above, finance is arranged physical verification of the units
through the following institutions: set up; concurrent evaluations; and
Annual Report • 27 Public Sector Banks. electronic tracking of applications. As
2010-11
• All Regional Rural Banks. reported by KVIC, 15 workshops, 564
awareness camps and 143 exhibitions
• Co-operative Banks approved
were organized during 2010-11
by State Level Task Force
(up to December 2010) and 18233
Committee headed by the
persons underwent EDP training
Principal Secretary (Industries)/
during 2010-11 (up to December
Commissioner (Industries).
2010). As per PMEGP guidelines,
• Private Sector Scheduled
once a project is sanctioned by
Commercial Banks approved
Bank, before releasing the second
by State Level Task Force
installment of loan, the beneficiary
Committee headed by the
is required to undergo a two weeks
Principal Secretary (Industries)/
EDP training to be arranged by KVIC
Commissioner (Industries).
through its accredited institutions.
• Small Industries Development State-wise details of units assisted,
Bank of India (SIDBI). margin money utilised and estimated
204 MSME
employment generated during 2010- only in 26,871 cases involving margin

11 is given at Annexure III. money assistance of Rs. 515.48 crore.
It is expected that achievements
10.6 For improved implementation
would pick up faster towards the end
of the scheme, the progress made
of the current financial year.
under PMEGP is reviewed in
the Ministry at regular intervals.
10.8 SCHEME OF FUND FOR
Besides, all Chief Ministers have
REGENERATION OF TRADITIONAL
been requested to instruct the State
INDUSTRIES (SFURTI)
implementing agencies, namely, DICs
and KVIBs as well as Banks to put in 10.8.1 The Ministry of MSME is
more concerted efforts in improving implementing a cluster-based
the performance of PMEGP. Regular scheme titled “Scheme of Fund for
review meetings by National Level Regeneration of Traditional Industries
Monitoring Committee, KVIC and (SFURTI)” for the development of
Annual Report
others are also held. More than 300 around 100 clusters in khadi, village 2010-11
model projects have been made and coir sectors with a total cost of Rs.
available in the websites namely 97.25 crore over a period of 5 years
www.kvic.org.in and www.pmegp. (beginning with 2005-06) to make
in for the benefit of prospective industries in KVI and coir sectors
entrepreneurs and around 535 more productive and competitive
taining centres have been accredited and to increase the employment
by KVIC for conducting EDP training opportunities in rural areas of the
before disbursal of loan as provided country. The Scheme is targeted to
in the guidelines. cover an estimated 50,000 beneficiary
10.7 2,70,673 applications had families.
been received under the Scheme till 10.8.2 The objective of SFURTI
December 2010 of which 1,16,034 is to establish a regenerated,
projects were recommended to banks. holistic, sustainable and replicable
Banks have, however, sanctioned model of integrated cluster-based
42,833 cases and made disbursement development of traditional industries
MSME 205
in KVI and coir sectors. This primarily (ii) Setting up of Common Facility
means: Centres (CFCs).
(i) more competitive traditional (iii) Development of new products,
industries with more market- designs for various khadi and
driven, productive, profitable village industry (VI) products,
and sustained employment for new/improved packaging, etc.
the participants;
(iv) Market promotion activities.
(ii) strengthened local socio-
(v) Capacity building activities,
economic governance system
such as exposure visits to
of the industry clusters, with
other clusters and institutions,
the active participation by the
need-based training, support
local stakeholders that can
for establishment of cluster
help to continue undertake
level networks (industry
Annual Report development initiatives by
associations) and other need
2010-11 themselves; and
based support.
(iii) building up innovated and
(vi) Other activities identified by the
traditional skills, improved
Implementing Agency (IA) as
technologies, advanced
necessary for the development
processes, market intelligence
of the cluster as part of the
and new models of public-
diagnostic study and included
private partnerships, so as
to gradually replicate similar in the Annual Action Plan for
models of cluster-based the cluster.
regenerated traditional 10.8.4 KVIC and Coir Board are
industries. the Nodal Agencies (NAs) for
10.8.3 The following support measures implementation of the scheme and
are taken up in the selected clusters: are also responsible for holding
and disbursement of funds to the
(i) Replacement of charkhas and
identified Implementing Agencies
looms in khadi sector.
206 MSME
(IAs) and monitoring of the Scheme the TAs also include assisting the
under the overall supervision of the NAs in identification of clusters,
Scheme Steering Committee (SSC). conducting training of the Cluster
The Secretary (MSME) is the Chairman Development Executives (CDEs)
of SSC and representatives of the and other officials of the IAs
Planning Commission; State Bank and NAs, validation of cluster
of India; Indian Banks’ Association; action plans, monitoring and
National Bank for Agriculture and evaluation, etc.
Rural Development (NABARD) are, 10.8.7 Cluster Develop-
inter-alia, members of SSC. ment Executives (CDEs) have
10.8.5 Implementing been appointed exclusively for
Agencies (IAs) under SFURTI are non- each cluster and are located in the
Government organizations (NGOs), cluster on full time basis and are
institutions of the Central and State responsible for implementation
Governments and semi-Government of the Scheme in the assigned Annual Report
institutions with suitable expertise to cluster. CDEs undergo prescribed 2010-11
undertake cluster development. Each training in cluster development

IA has been assigned only one cluster. methodology organized by
The selection of IAs, based on their the NA through the TA. The
regional reputation and experience responsibilities of CDE include
of working at the grass-root level, has conducting the diagnostic study;
been done by the Nodal Agencies, preparation and implementation
with the approval of SSC. of the annual action plans of the
cluster; promoting linkages with
10.8.6 Technical Agencies
institutions; building the local
(TAs): Under this Scheme, 17 reputed
governance framework, etc.
national level institutions with
expertise in cluster development 10.8.8 Progress of SFURTI:
methodology have been appointed Up to December 2010, 105 clusters
as Technical Agencies (TAs) to (29 – khadi, 50 - village industries
provide technical support to the NAs and 26 – coir) well distributed
and the IAs. The responsibilities of throughout the country have
MSME 207
been selected for their development Agencies, who are also responsible
under SFURTI. The other activities for for holding and disbursing the funds,
development of clusters like consent on receipt of utilization certificate
of State Government; training to and depending upon actual physical
NAs, IAs, CDEs, etc., preparation of progress. Funds for development
diagnostic study report and annual of clusters are kept in a separate
action plan, etc. in most of the cases,
account by the Nodal Agencies which
have been completed.
are subject to audit. The details of
10.8.9 The release of funds under this the funds released to Nodal Agencies
scheme is cluster specific. The funds since inception under this Scheme
are released directly to the Nodal are given in the Table below:
TABLE 10.2: Release of Funds to Nodal Agencies under SFURTI

(Rs. crore)
Year KVIC Coir Board Total

Annual Report
2005-06 1.12 0.38 1.50
2010-11
2006-07 19.03 6.50 25.53
2007-08 9.04 6.27 15.31
2008-09 13.45 3.50 16.95
2009-10 12.00 - 12.00
2010-11* - 2.50 2.50

*up to December, 2010.
10 Up to December 2010, Rs. 73.79 implementation of the SFURTI, average

crore (Rs. 54.64 crore to KVIC and Rs. increases of 40% to 60% in wages of
19.15 crore to Coir Board) was released the artisans have been achieved in the
for implementing this scheme. After functional KVI cluster.
208 MSME
CHAPTER XI
INTERNATIONAL COOPERATION
11.1 Worldwide, the micro, small continuously update themselves to

and medium enterprises (MSMEs) meet the challenges emerging out
have been accepted as the engine of changes in technology, changes
of economic growth for promoting in demands, emergence of new
equitable development. As per the markets, etc.
available statistics (4 th Census of
11.2 In recent years, the MSME
MSME sector), this sector employs Annual Report
sector has consistently registered 2010-11
an estimated 59.7 million persons
higher growth rate compared
spread over 26.1 million enterprises
to the overall industrial sector.
in the country. It is estimated that
With its agility and dynamism,
in terms of value, MSME sector
accounts for about 45% of the the sector has shown admirable
manufacturing output and around innovativeness and adaptability
40% of the total exports of the to survive the recent economic
country. MSMEs play an important downturn and recession.
role in export promotion of the However, MSMEs have been
country. To maintain its niche in the facing great challenge in the era
international and global market, of globalization, privatization and
MSMEs are required to remain liberalization. With its consistent

globally competitive. They have to growth performance and abundant
MSME 211
Chapter -XI IC
high skilled manpower, India this Ministry have also been

provides enormous opportunities maintaining close interaction with
for investment, both domestic and their counterparts in the foreign
foreign. To exploit this potential, countries for the development of
M/o MSME and its organisations, Indian MSMEs. The National Small
through its various Schemes and Industries Corporation (NSIC) Ltd.,
Programmes, are providing support a public sector enterprise under
to the Indian MSME sector, by giving this Ministry has entered into long
them exposure of the international term agreement with partner
market; foreign technology; institutions/ organizations in 24
sharing of experiences and best different countries. In view of
Annual Report management practices in the M/o MSME’s long experience of

2010-11 international arena. In continuation over half a decade in the policy,
of this endeavour, M/o MSME has programme and implementation
entered into long term agreements of the schemes in the MSME
Memorandum of Understanding/ sector, many of the developing
Joint Action Plan) with 15 countries economies of Asia and Africa
viz., Tunisia, Romania, Rwanda, seek guidance from it and /or its
Mexico, Uzbekistan, Lesotho, organisations. The organisations
Sri Lanka, Algeria, Sudan, Cote of the M/o MSME have provided
d’Ivoire, Egypt, Republic of South consultancy services and
Korea, Mozambique, Botswana also assisted in setting up of
and Indonesia. In addition to this, different projects, in the Afro-
the various organizations under Asian countries.
212 MSME
Chapter -XI IC
The then Union Minister of State (I/C) for MSME Shri Dinsha Patel and the Minister of Foreign
Annual Report
Affairs & Cooperation of Mozambique, Mr. Oldemiro Baloi signing an MoU on Cooperation in
2010-11
the field of MSME in the presence of Hon’ble President of Mozambique, Mr. Armando Emilio
Guebuza and the Hon’ble Prime Minister Dr. Manmohan Singh in New Delhi
11.3 INTERNATIONAL upgradation of Indian micro, small

COOPERATION SCHEME and medium enterprises (MSMEs),
their modernization and promotion
11.3.1 International Cooperation (IC) of their exports. The IC scheme
Scheme, being implemented by M/o including the application form is
MSME, is an ongoing Scheme of the available on the website of this
Ninth Plan (under implementation Ministry viz. http://msme.gov.in.
since 1996), which is continuing in 11.3.2 The Scheme encompasses
the Eleventh Plan (2007-2012) with the following activities:
an outlay of Rs.1000.00 lakh. The (i) Deputation of MSME business
important objectives of the Schemes delegations to other countries
are Technology infusion and/or for exploring new areas
MSME 213
Chapter -XI IC
of technology infusion/ (iii) Holding international

upgradation, facilitating joint conferences and seminars on
ventures, improving the market topics and themes of interest
of MSMEs products, foreign to the MSMEs.
collaborations, etc. 11.3.3 Under the IC Scheme, during
(ii) Participation by Indian MSMEs the year 2010-11, a number of
in international exhibitions, MSMEs have been facilitated
trade fairs and buyer-seller to participate in international
meets in foreign countries as exhibitions, conferences and
well as in India, in which there seminars on topics and themes of
is international participation. interest to the MSME, trade fairs
and buyer-seller meets abroad.
Annual Report
2010-11
India MSME Summit 2011 jointly inaugurated by H.E. Mr. Leonel Antonio Fernandez,
President of the Dominican Republic and the Shri Virbhadra Singh,
Union Minister (MSME)
214 MSME
Chapter -XI IC
11.4 SIGNIFICANT MEETINGS delegations for enhancement

WITH FOREIGN DIGNITARIES of bilateral cooperation for the
AND DELEGATIONS mutual benfits of MSMEs of the
two countries. The details of such
11.4.1 M/o MSME and its meeting/discussion with respect
organistaions like O/o DC (MSME) to M/o MSME, O/o DC(MSME) and
and NSIC hold discussion with foreign NSIC are given below:
S. No. Date Event
1 April 19, 2010 A delegation from Tobago House of Assembly (THA),

Govt. of Trinidad and Tobago led by Dr. Anselm London,
Finance Secretary met Hon’ble Minister of State (I/c)
for MSME in New Delhi and discussed the issues
concerning the MSMEs between the two countries.
Annual Report
2 May 4, 2010 Secretary, M/o MSME met Mr. Zenene Sinombe, Acting 2010-11
High Commissioner of Botswana to discuss cooperation
in the MSME sector between two countries.
3 May 5, 2010 Joint Secretary, Ministry of MSME met Mr. Claudio

Lilienfied, Deputy Assistant U.S. Trade Representative
for South and Central Asia to discuss various issues
regarding India US bilateral relations in the MSME
sector.
4 May 6-7, 2010 Joint Secretary, M/o MSME participated as this

Ministry’s representative in the ASEM Forum 2010 on
Green Growth and SMEs at Seoul, South Korea.
5 May 20, 2010 Secretary, Ministry of MSME met Mr. M. Matiul Islam,
Chairman, Industrial and Infrastructure Development
Finance Company (IIDFCL), Bangladesh to discuss
issues relating to bilateral cooperation in the MSME
sector.
MSME 215
Chapter -XI IC
S. No. Date Event
6 June 8, 2010 Joint Secretary, Ministry of MSME met Mr. Yaregal

Meskir, Director General, Federal Micro and Small
Enterprises Development Agency (FeMSEDA), Ethiopia
to discuss bilateral issues for promotion of MSMEs in
both the countries.
7 June 17, 2010 A Memorandum of Understanding (MoU) between

Government of Republic of Botswana and M/o
MSME, on cooperation in MSME sector was signed
on 17.6.2010 during the visit of the Vice President of
Botswana to India.
8 June 18, 2010 A Memorandum of Understanding (MoU) between

Small & Medium Business Administration (SMBA),
Government of the Republic of Korea and Ministry of
Annual Report MSME on Cooperation in the MSME Sector was signed
2010-11 on 18.6.2010 by the two sides during the visit of
Hon’ble External Affairs Minister to Republic of Korea.
9 June 21-22, 2010 Secretary, Ministry of MSME visited Lima, Peru to

attend and address the Session on the ‘Productive
Chains and Exporting SMEs”, organised by Association
of American Chambers of Commerce in Latin America
(AACCLA).
10 June 24, 2010 Secretary, Ministry of MSME visited US Market Access

Centre (MAC) / Incubator and held discussions
with Senior Business Development Specialists and
entrepreneurs at San Jose, USA.
11 July 16, 2010 Joint Secretary, Ministry of MSME met Mr. David Hsu,
Director and Mr. Paul Ching-Hya Tsai, Commercial
Secretary, Taipei Economic and Cultural Centre to
discuss the issues of bilateral relationship between
India and Taiwan.
216 MSME
Chapter -XI IC
S. No. Date Event
12 September 8, Joint Secretary, Ministry of MSME met Mozambique

2010 delegation led by H.E. Mr. Jose Maria Morais, High
Commissioner to discuss the issues of bilateral
relationship between India and Mozambique.
13 September 8, Joint Secretary, Ministry of MSME met Mr. Savenaca

2010 Kaunisela, High Commissioner of Fiji to discuss the
issues of bilateral relationship between India and Fiji.
14 September 16- Secretary, Ministry of MSME visited China to attend

19, 2010 the 5th China-India Trade and Investment Conference
and visited MSMEs at Nantong.
Annual Report
15 September 30, A Memorandum of Understanding (MoU) on 2010-11
2010 cooperation in the field of MSME between Ministry
of MSME and the Ministry of Industry and Commerce,
Republic of Mozambique was signed on 30.9.2010 in
New Delhi.
16 October 22,2010 A Malawian delegation led by Principal Secretary of

Republic of Malawi met Secretary, Ministry of MSME
to discuss the issues of bilateral relationship between
India and Malawi.
17 November 16, A delegation of Ministry of Cooperative and Small and

2010 Medium Enterprises led by Mr. Choirul Djamhari, PhD.,
Deputy Minister of the Republic of Indonesia met
Secretary, Ministry of MSME to discuss and exchange
views to explore cooperation in the field of small and
medium enterprises between India and Indonesia.
MSME 217
Chapter -XI IC
Meeting of Shri Uday Kumar Varma, Union Secretary (MSME) with the delegation consisting of
Principal Secretaries of the Republic of Malawi in New Delhi. Shri Amarendra Sinha,
Joint Secretary (SME) was also present
Annual Report
2010-11
Meeting of Shri Uday Kumar Varma, Union Secretary (MSME) with Indonesian delegation
led by Dr. Choirul Djamhari, Deputy Minister, Ministry of Cooperatives, Small and Medium
Enterprises, Republic of Indonesia in New Delhi. Shri Amarendra Sinha, Joint Secretary (SME)
and Director (Finance), NSIC were also present
218 MSME
Chapter -XI IC
11.4.2 Office of the DC (MSME)
S.No. Event
1 Meeting with the international representative in the Fourth Tri-Nations

Summit being organised by SABRAE, Brazil together with National
Small Industries Corporation-India and Small Enterprise Development
Agency (SEDA)-South Africa under the Tri-Nations Cooperation between
these organizations to enhance cooperation among the MSMEs of three
countries.
2 Meeting with the representative of UNIDO in connection with the various

Consolidated Projects.
3 Meeting with the representative of GTZ, Germany to discuss the report

on ‘Institutional Mechanism for SME Promotion – a Comparison of India
with International Practices’.
Annual Report
2010-11
4 Meeting with South African delegation for development of SMEs.
5 Meeting with the representative of UNIDO for technology upgradation of

Brass & Bell Metal Industry under National Programme.
6 Meeting with the representative of UNIDO for technology upgradation

and productivity enhancement of machine tool industry for the project
under Micro & Small Enterprises – Cluster Development Programme (MSE
– CDP).
7 Meeting with Senior Executive in the 11th World Export Development

Forum (WEDF) on “Women as Vendors in Global Value Chains” organised
by International Trade Centre (ITC), Geneva at Chongqing, China from 9
– 12 September, 2010.
8 Led the delegation of CII for International Study Mission under the Scheme
QMS/QTT to Japan for discussing various aspects on development of
SMEs with the representative of different countries.
MSME 219
Chapter -XI IC
11.4.3 National Small Industries Corporation (NSIC)
S.No. Date Event
1. 13th – 17th Participation in Fourth Tri-nations Conference

April,2010 at Brazil: NSIC participated in the 4th Tri-Nations
Conference coinciding with 4th IBSA Summit held
at Brasilia, Brazil. Tri-nations Conference is the tri-
national cooperative initiative of three organizations
i.e. NSIC from India, SEBRAE from Brazil and SEDA
from South Africa to discuss the issues related
to MSMEs of the three countries and share their
experiences for the development of MSMEs and also
to enhance enterprise to enterprise cooperation
among the enterprises of these three countries.
The final report of the 4th Tri-nations Summit was
presented in the IBSA Forum to the Heads of States
of the three countries i.e. Mr. L.I. Lula da Silva, Hon’ble
Annual Report President of the Republic of Brazil, Mr. J.G. Zuma,
2010-11 Hon’ble President of the Republic of South Africa
and Dr. Manmohan Singh, Hon’ble Prime Minister
of Republic of India. The report highlighted the
initiatives taken by three organizations in terms of
access to technologies and innovations, commercial
proximity among three countries and the exchange
of knowledge and practices in promoting our
enterprises.
2. 19th April, An Agreement of Mutual Cooperation was signed

2010 between NSIC and the Tobago House of Assembly,
Division of Finance and Enterprise Development
(Government of Trinidad and Tobago) for the
development of MSMEs in Trinidad & Tobago on
19th April, 2010 in the presence of Shri Dinsha Patel,
Union Minister of State (I/C) (MSME).
A five member business delegation led by Director
of Indo-Trinidad Chamber of Commerce & Industry
(ITCCI) visited NSIC on 27th April, 2010 and showed
keen interest in NSIC’s Incubator Centre.
220 MSME
Chapter -XI IC
S.No. Date Event

Director of Indo-Trinidad Chamber of Commerce &
Industry (ITCCI) visited NSIC on 27th April, 2010 and
showed keen interest in NSIC’s incubator Centre.
3. 20th – 24th Mr. Thami Mazwai, Director, Centre for Small
April, 2010 Business Development (CSBD), Soweto Campus of
Johannesburg University visited NSIC to understand
India’s business development model and explore
India’s success in developing small industries
through Government and private initiatives.
4. 28th April, 2010 A delegation led by Dr. Lindeki Chweya, Permanent
Secretary, Office of the Vice President of Kenya
visited NSIC’s Okhla Incubator Centre on 28th April,
2010.
5. 9th - 17th A delegation led by Dy. Chief Executive Officer of
May, 2010 Local Enterprise Authority (LEA), Botswana visited
NSIC. The visiting delegation has shown interest in
NSIC Model of Incubation. Annual Report
6. 11th May, 2010 A five member delegation consisting of Board 2010-11
of Directors of Local Enterprise Authority (LEA),
Botswana visited NSIC on 11th May, 2010. The
delegation was received at NSIC Okhla Incubator.
7. 18th May, 2010 Mohd. Matiul Islam, Chairman of IIDFC, Bangladesh
visited NSIC. A MoU between NSIC and IIDFC was
signed for sharing experiences for the development
of SMEs in both the countries.
8. 8th June, 2010 A six member delegation from Federal Micro & Small
Enterprises Development Agency, Addis Ababa
visited NSIC’s Incubator Centre.
9. 16th June, 2010 Lieutenant General Mompati Sebogodi Merafhe,
Vice President of Botswana visited NSIC. An
Agreement of Mutual Cooperation was signed
between NSIC and Local Enterprise Authority (LEA)
of Botswana MSMEs in the august presence of
Lieutenant General Mompati Sebogodi Merafhe,
Vice President of Botswana. The MoU envisages
setting up of Technology-cum-Business Incubator
Centres, developing policies and Institutional
framework for SME development in Botswana.
MSME 221
Chapter -XI IC
S.No. Date Event
10. 9th July,2010 A MoU between NSIC and Iran Small Industries and
Industrial Parks Organization (ISIPO) was signed at
New Delhi in the presence of Hon’ble Minister of
External Affairs, India for the development of MSME
sector in Iran.
11. 10th – 13th Nov., NSIC organised a business delegation of 26 MSMEs

2010 to Birmingham, U.K. On the invitation of High
Commission of India (HCI) in U.K. HCI, London had
organised SME Conference-cum-Buyers-Sellers meet
for Indian delegates. Also visits to Aston University,
University of Loughborough were organised to
show emerging environment friendly technologies
to Indian MSMEs.
Annual Report
2010-11
Meeting of Shri Uday Kumar Varma, Union Secretary (MSME) with the delegation of H.E. Mr.
Giacomo Sanfelice di Monteforte, Ambassador of Italy, New Delhi and Mr. Daniel Kraus, Head
of the ‘Confindusria’ of Italy in New Delhi. Shri Amarendra Sinha, Joint Secretary (SME) and
CMD, NSIC were also present
222 MSME
Chapter -XI IC
11.5 PARTICIPATION IN INTERNATIONAL EVENTS
11.5.1 Under International Cooperation Scheme of the M/o MSME (details are
provided in 11.3 para above), the details of participation are as under:
S. No. Date Event
1 April 11-12, 2010 M.P. Audyogik Kendra Vikas Nigam (MPAKVN),

Jabalpur participated in‘Natural & Organic Products
Europe 2010’ at Olympia Exhibition Centre, London,
United Kingdom.
2 April 12-16, 2010 Indo American Chamber of Commerce (IACC), New

Delhi organised a business delegation of IACC
Automotive SME Trade Mission to visit Detroit and
Ohio, USA.
3 April 14-16, 2010 Ankleshwar Industries Association (AIA), Ankleshwar

organised a business delegation of MSMEs to visit
International Exhibition China Interdye 2010 at Annual Report
Shanghai, China. 2010-11
4 April 15-19, 2010 Salem Productivity Council (SPC), Salem organised

a business delegation of MSMEs to visit Canton
Fair 2010 – 107th China Export Commodities Fair
at Guangzhou, China.
5 April 15-19, 2010 Industries Association of Chandigarh (IAC),

Chandigarh organised a business delegation of
MSMEs to visit Canton Fair 2010 – 107th China
Export Commodities Fair at Guangzhou, China.
6 April 15-19, 2010 Chamber of Chandigarh Industries (CCI),

Chandigarh organised a business delegation of
MSMEs to visit Canton Fair 2010 – 107th China
Export Commodities Fair at Guangzhou, China.
7 May 1-5, 2010 Indian Industries Association (IIA), Lucknow

the 107th China Import and Export Fair 2010 at
Guangzhou, China.
MSME 223
Chapter -XI IC
S. No. Date Event
8 May 10 – 11, 2010 Federation of Indian Micro and Small & Medium
Enterprises (FISME), New Delhi organised a business
delegation of MSMEs to visit USA India Business
Summit 2010 at Atlanta, USA.
9 May 12 – 15, 2010 All India Bread Manufacturers’ Association (AIBMA),

New Delhi organised a business delegation of
MSMEs to visit Bakery China - International Trade
Fair for the Bakery and Confectionery Industry in
China.
10 May 18 – 25, 2010 Offset Printers Association (OPA), Ludhiana

IPEX 2010 Fair at Birmingham, U.K.
11 May 18 – 25, 2010 Delhi Printers Association (DPA), New Delhi

Annual Report
IPEX 2010 Fair at Birmingham, U.K.
2010-11
12 May 18 – 25, 2010 Madras Printers & Lithographers Association
(MPLA), Chennai organised a business delegation
of MSMEs to visit IPEX 2010 Fair at Birmingham,
U.K.
13 June 4 – 7, 2010 Gem & Jewellery Trade Council of India (GJTCI),

Ahmedabad organised a business delegation of
MSMEs to visit Exhibition held at JCK Las Vegas,
USA.
14 June 14 – 18, 2010 Ludhiana Machine Tool Manufacturers Association

(LMTMA), Ludhiana organised a business delegation
of MSMEs to visit in the Trade Fair CIMES 2010 China
International Machine Tool & Tools Exhibition at
Beijing, China.
15 June 16 – 18, 2010 Fastener Manufacturers Association of India (FMAI),

Ludhiana 2010 organised a business delegation of
MSMEs to visit Fastener Expo at Shanghai, China.
224 MSME
Chapter -XI IC
S. No. Date Event
16 June 22 – 24, 2010 Engineering Manufacturer Entrepreneurs Resource

Group (EMERG), Bangalore organised a business
delegation of MSMEs to visit WBENC 2010 at
Baltimore, Maryland, USA.
17 June 22 – 26, 2010 Bahadur-ke-Textile & Knitwear Association,

Ludhiana organised a business delegation of
MSMEs to visit in the International Exhibition ITMA
ASIA + CITME 2010 at Shanghai, China.
18 July 2 – 5, 2010 North Calcutta Dishari Mahila Samity (NCDMS),

Kolkata participated in International Bangla Festival
& Book Fair 2010 at Jackson, New York, USA.
19 August, 24 -29, Consortium of Women Entrepreneurs of India,

2010 (CWEI), New Delhi participated in 7th DOSTI-
Women Entrepreneur Trade Expo 2010 at Dhaka,
Annual Report
Bangladesh.
2010-11
20 September 16 – 19, Federation of Indian Micro and Small & Medium
2010 Enterprises (FISME), New Delhi organised
deputation of business delegation of MSMEs
to visit in 5th China India Trade and Investment
Conference at Nantong and Shanghai, China.
21 September 23 -29, North Eastern Small Scale Industries Association

2010 (NESSIA), Guwahati organised business delegation
of MSMEs to attend B2B meetings with Chamber
of Commerce in Vienna and Budapest.
22 September 26 to MIDC Industries Association (MIA), Nagpur

October 04, 2010 organised a business delegation of MSMEs to visit
the International trade Fair EXPO-2010 at Shanghai,
China.
23 September 27 – 29, Metal Finishers’Association (MFA), Nashik organised

2010 a business delegation of MSMEs to visit the
Surface Treatment & Coating Industries – SFCHINA
+ CHINACOAT at Guangzhou, China.
MSME 225
Chapter -XI IC
S. No. Date Event
24 September 28 to Coimbatore District Small Industries Association

October 02, 2010 (CODISIA), Coimbatore organised a business
delegation of MSMEs to attend AMB 2010 Fairs,
Stuttgart, Germany.
25 September 29 to Centre for Development of Stones (CDOS), Jaipur

October 02, 2010 organised a business delegation of MSMEs to
attend Marmomacc 2010 Show - International
Exhibition of Stone Designing and Technology at
Verona, Italy.
26 October 15 -19, Marathwada Association of Small Scale Industries

2010 & Agriculture (MASSIA), Aurangabad organised
a business delegation of MSMEs to attend 108th
Canton 2010 Fair in Guangzhou, China.
27 October 26, 2010 Confederation of Indian Industry (CII), New Delhi

Annual Report
organised India SME Summit 2010 at New Delhi.
2010-11
28 October 26 to Federation of Industry & Commerce of North Eastern

November 04, 2010 Region (FINER), Guwahati organised a business
delegation of MSMEs to visit in the K-Plastics &
Rubber Exhibition at Dusseldorf, Germany & B2B
meeting at Copenhagen & Amsterdam.
29 November 09 – 12, Consortium of Electronic Industries of Karnataka

2010 (CLIK), Bangalore organised a business delegation
of MSMEs to visit in the Electronica 2010 at Munich,
Germany.
30 November 10 – 14, National Small Industries Corporation Limited

2010 (NSIC), New Delhi organised a business delegation
of MSMEs to attend conference and BSM at
Birmingham, U.K.
31 November 14 – 25, Federation of Karnataka Chambers of Commerce

2010 & Industry (FKCCI), Bangalore organised a business
delegation of MSMEs to visit Eastern Africa.
226 MSME
Chapter -XI IC
11.5.2The O/o DC (MSME) had 2010-11 has planned to participate

provided opportunity under in 15 trade fairs with a target to
Marketing Development Assistance provide 131 MSEs to participate in
Scheme to MSMEs for getting an the International Trade Fair under
exposure in the international market MSME India stall. Till December, this
and exploring the possible export office has participated in following
opportunity of their products by 08 international fairs and provided
exhibiting it through participation export and marketing opportunity
in following Trade Fairs under to more than 110 MSEs including
MSME India stall. Office of DC 51 and 06 women and SC/ST owned
(MSME) during the financial year MSEs respectively.
S.No Date Event

Annual Report
2010-11
1 15-19 April, 2010 China Import and Export Fair (Canton Fair),
China
2 19-23 April, 2010 India Pavilion at HANNOVER MESSE 2010
3 08-12 Sept, 2010 Budapest International Fair, Budapest, Hungary
4 09-13 Sept, 2010 INTERGIFT, Madrid, Spain
5 04-08 October, 2010 INDEE 2010 at Bogotá, Colombia
6 25-28 Nov, 2010 India Pavilion at MACTECH 2010, Cairo, Egypt
7 01-04 Dec., 2010 India Pavilion at Euromold 2010, Frankfurt,

Germany
8 04-12 Dec, 2010 AFL-Artigiano, Milan, Italy
MSME 227
Chapter -XI IC
11.5.3 NSIC
S.No. Date Event
1. October 11 – 14 , 2010 Taitronics, 2010: NSIC participated in Taitronics,

2010 at Taipei, Taiwan to display the products
manufactured by MSME units.
2. November 9 – 11, Interade Malaysia, 2010, Kuala Lumpur, Malaysia:

2010 NSIC participated in Interade Malaysia, 2010 at
Malaysia to display the automotive products
& components, building material, electrical &
electronics, food & agriculture, health care, oil,
gas & energy and apparels etc.
3. November 17 – 19 , The Global Expo, 2010, Botswana: NSIC
2010 participated in Global Expo, 2010 at Botswana
wherein 11 units displayed their products of
leather, engineering, chemicals & cosmetics,
Annual Report machinery, automobiles, electrical goods &
2010-11 appliances, power and renewal energy etc.
11.5.4 Coir Board in MSME sector to showcase their

products for capturing foreign
Similarly, Coir Board also provides
markets and the details of such
financial assistance to Coir exporters
participation are as under:
S.No. Date Event
1. May 4-6, 2010 Participated in National Hardware Show, Las
Vegas, USA
2 August 30 – Septemebr Participated in Made in India Show,
1, 2010 Johannesburg, South Africa.
3 October 12-15, 2010 Participated in the International Horti Fair,
Amsterdam, Netherlands.
4 October 20-23, 2010 Participated in the Mega Show, Part I, Hong
Kong.
5 November 17-19, 2010 Participated in the Australian International
Sourcing Fair, Melbourne, Australia.
228 MSME
CHAPTER XII
ACTIVITIES IN THE NORTH EASTERN REGION
12.1 ACTIVITIES OF THE development of MSMEs in the

MINISTRY IN NORTH EASTERN NER through the programmes
REGION (NER) and schemes implemented by the
Ministry and its organizations.
The NER, consisting of Assam,
Arunachal Pradesh, Manipur, 12.2 PERFORMANCE OF THE
Mizoram, Meghalaya, Nagaland, MSME SECTOR IN NER
Tripura and Sikkim has abundant
The estimated number of MSME units
natural resources. These resources in North-East, fixed their investment,
can be utilized for all round economic production and employment for Annual Report
development and employment the year 2009-10 (Projected) have 2010-11
generation in the region. The M/o been incorporated in the Table 12.1
MSME is actively promoting the below: -
MSME 231
2010-11
Annual Report
Table 12.1: North East and the MSMEs (2009-10) (Projected).
Name of the Year Sikkim Arunachal Nagaland Manipur Mizoram Tripura Meghalaya Assam Total
232
State Pradesh
Chapter -XII NER
Number 2006-07 123 451 1331 4507 3714 1253 3063 18671 33113
of working
enterprises 2007-08 138 514 2109 4549 3940 1409 3469 20425 36553
2008-09 209 621 4630 4689 4418 1621 3879 22056 42123
2009-10 252 706 6280 4778 4770 1805 4287 23749 46626
Fixed 2006-07 27.34 584.04 719.12 92.34 279.88 382.50 132.08 5249.82 7467.12
Investment
(Rs. crore) 2007-08 30.68 665.63 1139.49 93.25 297.08 430.17 149.51 5743.51 8549.32
2008-09 46.46 804.20 2501.59 96.12 333.12 494.89 167.18 6202.15 10645.71
2009-10 55.91 914.27 3392.81 97.95 359.66 551.07 184.77 6678.08 12234.51
Production 2006-07 49.56 256.49 1384.17 160.50 303.35 575.09 437.38 6805.62 9972.16
(Rs. crore)
2007-08 49.56 292.31 2193.15 161.94 321.90 646.73 495.37 7444.91 11605.88
2008-09 55.60 353.16 4814.74 166.93 360.95 744.04 553.92 8039.41 15088.75
2009-10 84.21 401.50 6530.05 170.10 389.71 828.50 612.18 8656.33 17672.57
Employment 2006-07 1151 5893 16149 16738 26015 18807 12896 133561 231210
(Person)
2007-08 1292 6718 25582 16877 27580 21149 14604 146039 259841
2008-09 1956 8116 56162 17396 30926 24331 16331 157700 312919
2009-10 2354 9227 76170 17726 33390 27093 18048 169802 353811
MSME
Chapter -XII NER
12.3 BUDGETARY SUPPORT Programme of M/o MSME, an outlay

of Rs. 240.00 crore in BE 2010-11 has
Pursuant to the Government’s
been earmarked exclusively for the
Policy of earmarking 10% of the total
Region.
funds for NER, under the Schemes/
Annual Report
2010-11
12.4 ACTIVITIES OF OFFICE OFTHE Pradesh); Diphu (Assam); Silchar

DEVELOPMENT COMMISSIONER (Assam); Tezpur (Assam); Shillong
(MSME) IN THE NORTH EASTERN (Meghalaya) and Tura (Meghalaya).
REGION A Tool Room and Training Centre has
been set up at Guwahati to cater to
12.4.1 The O/o DC (MSME) has MSME- the need of industries in the area of
DIs at Gangtok (Sikkim); Guwahati tooling and training. State Govt. of
(Assam); Imphal (Manipur); Agartala Nagaland has also been assisted to
(Tripura) and also branch MSME- set up a Mini Tool Room & Training
DIs at Aizwal (Mizoram); Dimapur Centre at Dimapur, Nagaland. Tool
(Nagaland); Itanagar (Arunachal Rooms are equipped with Hi-Tech
MSME 233
Chapter -XII NER
machinery for providing common Development Programmes (EDPs);

facility services to the industry; 7 Small Enterprises Establishment
conducting various long-term and Programmes (SEEPs) and 5 Skill
short-term training programmes Development Programmes wherein
such as 4 year diploma in Tool & Die more than 3000 beneficiaries
Making, Computer Aided Design, participated.
Basic Workshop Technology, Turning
12.5.3 During the financial year 2010-
and Milling, Engineering Drawing
11, NSIC continued providing support
etc.
to MSME through its various schemes.
Apart from this, NSIC organised 19
12.5 ACTIVITIES OF NSIC IN
Intensive Campaigns in all the 8 States
NORTH EASTERN REGION
of North Eastern Region, organised /
12.5.1 NSIC is having a network of participated in 4 domestic exhibitions
Annual Report offices in NER. This includes Zonal and 1 international exhibition held at
2010-11 Office at Guwahati (Assam), which Milan (Italy).
looks after all the activities of the
12.5.4 The Corporation provided
NER and 5 sub-offices at Shillong
assistance to units in NER under its
(Meghalaya); Agartala (Tripura);
various schemes and provided the
Imphal (Manipur); Naharlagurn
Raw Material Assistance and support
(Arunachal Pradesh) and Dimapur
under Internal Marketing Scheme.
(Nagaland). NSIC also has a Training-
Besides, the enterprises of the NER
cum-Incubation Centre at Guwahati,
availed benefit under Infomediary
which provides technical training
Scheme and Government Purchase
and organises skill upgradation
Programme.
programmes and entrepreneurship
development programmes. 12.6 TRAINING ACTIVITIES:
12.5.2 NSIC, Guwahati conducted
12.6.1 IIE, Guwahati: The Indian
20 Entrepreneurs Awareness
Institute of Entrepreneurship (IIE) at
Programmes (EAPs); 24 Entrepreneurs
234 MSME
Chapter -XII NER
Guwahati was set up with the aim of Resource Centre (RRC) in NER for
inculcating entrepreneurship cluster MSE-Cluster Development Scheme
in the NER. The promotion of new of the Ministry.
entrepreneurs has been the major
12.6.2 NI-MSME, Hyderabad:-
focus of training activities organised During the year, four programmes
by the Institute. In addition to exclusively for the entrepreneurs from
entrepreneurship trainings, the North Eastern Region sponsored by
Institute is organizing Seminars, the Union Ministry of Food Processing
Workshops, Meets and Conferences Industries were conducted by the
for providing forum for interaction Institute. These programmes were
and exchange of views by various attended by 100 entrepreneurs.
agencies and entrepreneurs. During
12.6.3 NIESBUD, NOIDA:
the year 2010-11 (till 30th November,
The two training programmes
2010), the Institute has organized Annual Report
each of 6 months duration for 2010-11
247 such prgorammes on various
unemployed youth of North East
activities relating to Micro and Small
on Retail Management and Apparel
Enterprises growth and development.
Manufacturing and Merchandising
Altogether, 7551 participants
were concluded during April, 2010.
attended theseWorkshops/Seminars/
The two residential programmes with
Meets. In order to promote new
30 participants each were organized
entrepreneurs, the Institute organizes
under the auspices of the Ministry
rural, general and women EDPs, of DONER; Government of India.
crash course on self employment and During the course of the training
sector-specific EDPs. The Institute has programmes, the participants were
been providing technical advice to afforded opportunities of interaction
14 clusters covered under Scheme of with different entrepreneurs, had
Fund for Regeneration of Traditional hands-on experience of working
Industries (SFURTI) in NER. The in Shopping Malls, Export Houses
Institute is also acting as Regional etc. Upon culmination of the two
MSME 235
Chapter -XII NER
training programmes, many of the Scheme of Fund of Regeneration

participants have already been of Traditional Industries (SFURTI);
absorbed in respective fields with schemes relating to khadi and village
some of them expressing desire to industry activities and schemes
set up their own units in the relevant relating to promotion of coir and
fields.Thus, the Institute has organized coir products.
all the four training programmes as
earlier awarded to it by the Ministry 12.8 BUDGETARY SUPPORT
of DONER, Government of India,
12.8.1 As per the policy of the
training thereby a total of 120 North-
Government, 10 per cent of total Plan
East youths in the two trades.
budget has been earmarked for NER
for implementation of various Plan
12.7 ACTIVITIES OF ARI IN NORTH
schemes in khadi, village industries
Annual Report EASTERN REGION
and coir sectors. The details of the
2010-11
Various schemes relating to funds released by the Ministry to
ARI sector are under implementation KVIC, Coir Board and under erstwhile
in the North Eastern Region (NER) PMRY for the NER during the last
include Prime Minister’s Employment three years and 2010-11 are given in
Generation Programme (PMEGP); the Table below:
TABLE 12.2 Release of Funds for NER

(Rs. crore)
Year Funds released

KVIC Coir Board PMRY** SFURTI Total
2007-08 58.39 1.30 30.78 1.63 92.10
2008-09 111.14 3.83 -- 3.85 118.82
2009-10 34.84 1.70 -- 2.00 38.54
2010-11* 34.38 0.85 -- 0.25 35.48
* up to December 2010,** discontinued and merged into PMEGP in 2008-09
236 MSME
Chapter -XII NER
12.9 KVI PROGRAMMES IN NER 12.9.3 The programmes of KVIC for

rural industrialisation are expected
12.9.1 In order to ensure effective
to increase the earnings of artisans,
implementation and monitoring of
weavers, spinners and individual
Khadi and Village Industries (KVI)
entrepreneurs along with output
programmes in the NER, Khadi and
of high quality KVI goods from this
Village Industries Commission (KVIC)
region. This is also expected to reduce
has a Zonal Office at Guwahati and
drudgery in the labour intensive
other field offices in NE States. KVI
activities, ensure sustainable
programmes are being implemented
utilisation of locally available raw
in the region through State KVI Boards,
material and upgradation of skills of
registered institutions, cooperative
artisans.
societies and entrepreneurs.
12.9.4 Over the years, there has been
12.9.2 Village industries which are considerable increase in production
being set up in these hilly and and employment in the VI sector
Annual Report
backward areas include forest based in the NER though performance
2010-11
industries, pottery, beekeeping, in khadi sector has not picked up
processing of cereals and pulses, substantially. Achievements made in
fibre, fruit & vegetable processing terms of estimated production, sales
industries, soap, activities like and employment in KVI sector during
carpentry and blacksmithy and also the last three years and in 2010-11
khadi and polyvastra. are given in the following Table:
TABLE 12.3 KVI Productions in NER

(Value: Rs. lakh)
State 2007-08 2008-09 2009-10 2010-11*

Arunachal Pradesh 2936.92 3050.76 3902.68 4339.42
Assam 40626.88 42393.97 48505.20 50010.37
Manipur 7708.53 8003.22 8401.77 8389.18
Meghalaya 9108.17 9457.77 9928.76 10775.16
Mizoram 17390.48 18057.98 18957.27 20108.79
MSME 237
Chapter -XII NER
Nagaland 9556.44 9933.46 10428.15 12290.23

Sikkim 3130.99 3251.17 3413.07 4226.45
Tripura 7972.48 8278.47 8961.42 9385.67
Total 98430.89 102426.80 112498.32 119525.26
TABLE 12.4: KVI Sales in NER

(Value: Rs. lakh)
State 2007-08 2008-09 2009-10 2010-11*
Assam 66333.81 70192.33 70422.53 72435.69
Manipur 8106.48 8550.33 12785.55 12778.29
Meghalaya 12367.76 13038.80 14013.29 15071.01

Annual Report Mizoram 27609.38 29107.31 29965.62 31404.88
2010-11
Nagaland 13173.66 13889.13 14446.41 16781.75
Sikkim 6614.76 6973.70 4856.62 5872.32
Tripura 11296.48 11908.62 12578.12 13102.88
Total 150555.07 158988.75 164995.65 173919.60

TABLE 12.5: KVI Employment in NER

(In lakh persons)
State 2007-08 2008-09 2009-10 2010-11*
Assam 2.98 3.67 3.76 3.80
Manipur 0.65 0.65 0.70 0.70
Meghalaya 0.39 0.39 0.44 0.45
238 MSME
Chapter -XII NER
Mizoram 0.81 0.83 0.87 0.88
Nagaland 0.52 0.53 0.56 0.58
Sikkim 0.22 0.22 0.24 0.25
Tripura 0.59 0.59 0.65 0.65
Total 6.25 6.98 7.33 7.43
12.9.5 To cater to the needs of training centres are in operation in

skill development in NER, Multi- NE States. The beneficiaries from
Disciplinary Training Centres at NE Region are provided rail fare
Kumarikata (Assam) and Doimukh, for attending training programmes
(Arunachal Pradesh) are being and also daily allowance during the
run by KVIC. In addition, training training period. A total of 10,622
centers are being run by State persons were trained in 2009-10
KVIBs at Roha, Marigaon (Assam); while 2,633 persons were trained Annual Report
2010-11
Zamabank, Aizwal (Mizoram) and in 2010-11 up to December 2010 in
Kohima (Nagaland). Besides, 7 EDP this Region including Sikkim.
MSME 239
Chapter -XII NER
12.10 SCHEMES OF KVIC Special efforts have been made

BEING IMPLEMENTED IN NER by KVIC to provide employment
in NER under PMEGP. In 2009-10,
12.10.1 Prime Minister’s
a total number of 3,720 projects
Employment Generation were assisted by utilizing margin
Programme: Special attention money subsidy of Rs. 36.53 crore. In
to NER has been given while the current year (up to December
formulating this programme. Under 2010), 9,902 number of applications
this programme, financial assistance have been recommended by the
is provided in the form of subsidy District Level Task Force (DLTF)
up to 35% (25% for beneficiaries for assistance under PMEGP of
belonging to General category) which 3,051 projects have been
of the project cost (rural areas) to sanctioned by banks involving Rs.

Annual Report
35.31 crore margin money subsidy.
2010-11 the beneficiary belonging to North
Eastern States while it is 25% (15% for KVIC is taking special efforts to
beneficiaries belonging to General popularize this scheme through
category) for urban areas. It is a wide publicity and organizing
significant initiative with attractive workshops in NER. Intensive
subsidy levels for promoting self monitoring is also done from
employment through setting up the Ministry level to improve the

performance in NER.
micro enterprises with special focus
on North Eastern Region. Further, 12.10.2 Product Development
for setting up a project under Design Intervention and
PMEGP, the own contribution of Packaging (PRODIP) Scheme:
beneficiaries belonging to NER is Under this scheme, grants up to Rs.
only 5% (10% for general category) 2 lakh for institution/up to Rs. 1 lakh
of the project cost. for individual or 75% of the project
240 MSME
Chapter -XII NER
cost whichever is less is, provided by quality, skills, marketing, etc,

KVIC to improve the product quality, financial assistance up to 90% of
introducing new designs and better the project cost is provided to
packaging of products. During beneficiaries from NER for projects
2010-11 (up to December 2010), up to Rs. 5 lakh and 75% for the
04 VI projects were sanctioned for projects costing up to Rs. 25 lakh.
assistance under PRODIP in North During 2010-11 (up to December
Eastern Region. 2010), 2 VI projects have been
sanctioned for assistance under
12.10.3 Janashree Bima Yojana:
RISC in North Eastern Region.
A total of 3,390 artisans have been
covered under the Janashree Bima 12.10.6 Exhibitions: In order to
Yojana of KVIC so far to provide promote the sale of khadi and village
insurance to the khadi artisans/ industry products, KVIC organized

Annual Report
weavers. 3 exhibitions during 2010-11 (up 2010-11
to December 2010). Transport
12.10.4 State Level Artisan
subsidy is provided by KVIC to the
Welfare Fund Trust: An artisan
participant institutions in these
Welfare Fund Trust was registered at
exhibitions. KVIC also continued
Assam in NER. 32 Institutions aided
reservations of 10% of space in
by KVIC and 01 institution aided by
Khadi Gramodyog Bhawan, New
KVIB were registered as members till
Delhi for the products produced by
December 2010. As on 31.03.2010,
the units located in NER.
Rs. 16.46 lakh has been deposited
12.10.7 New initiatives by KVIC in
in this trust.
NER: The following new initiatives
12.10.5 Rural Industries Service have been taken by KVIC for
Centre (RISC): To provide development of khadi and village
infrastructure support for individual industries sector in NER:
units to upgrade their production,
MSME 241
Chapter -XII NER
• To improve the technology • 10% space is reserved in

used in the KVI sector as all Departmental Khadi
also the quality of products, Gramodyog Bhawans
KVIC has entered into a for the products of
tie-up arrangement with the institutions in
IIT, Guwahati as part of its North Eastern Region
nation-wide programme for marketing the KVI
for having S&T interfaces products.
with reputed national- level
technical institutes. 12.11 COIR BOARD IN NER
• The Indian Institute of 12.11.1 The Board is adopting

Entrepreneurship (IIE), a multifarious approach for the
Guwahati has been development of coir industry
Annual Report
recognized as the Nodal in North Eastern States for
2010-11
Agency for North Eastern enhancing awareness of coir and
Region with the objective coir products. As a result, demand
to implement and monitor of coir and coir product is slowly
PMEGP projects being growing. All the infrastructural
set up in North East Zone
facilities are offered by the Board
and imparting training to
to new entrepreneurs to set up coir
beneficiaries.
industrial units. Traditional as well
• To and fro transportation as innovative products such as coir
charges are provided to geo-textiles and coir-ply, which
beneficiaries sponsored have special importance/relevance
by institutions of NER for to the topography of the North-
participating in exhibitions, East, are also being introduced/
fairs, etc, conducted in popularised.
places other than NER.
242 MSME
Chapter -XII NER
12.11.2 During the year 2010- TRADITIONAL INDUSTRIES

11 (up to December, 2010) various (SFURTI) IN NER
activities were undertaken by Coir
Board for the promotion of coir 12.12.1 The Guidelines of
industries in NER which include SFURTI provide that the selection
publicity of coir programmes of clusters should be based on
through electronic and print geographical concentration of
media, training for spinning and
viable number of artisans with at
for manufacturing of value added
least 10 per cent of the clusters
products and participation in fairs
being located in the NER.
and exhibitions in NE States. An
amount of Rs. 1.10 crore (including
12.12.2 Keeping the above in
SFURTI) has been released to Coir
view, Scheme Steering Committee
Board against an allocation of Rs. Annual Report
on SFURTI has approved 15 clusters
2.97 crore (including SFRUTI) to 2010-11
(out of 105 clusters) for North
carry out the various coir activities
in NER. Eastern States for their development
under this programme. The details
12.12 SCHEME OF FUND of clusters in these States are given
FOR REGENERATION OF in the Table below:-
TABLE 12.6: Clusters under SFURTI in NER
Sl. State Place Name of Cluster

No.
KHADI CLUSTERS
1 Assam Nalbari Mukalmua Silk Khadi Cluster
2 Nagaland Dimapur Dimapur Khadi Cluster
MSME 243
Chapter -XII NER
COIR CLUSTERS
3 Assam Guwahati Manas Coir Cluster
4 Tripura Agartala Agartala Coir Cluster
VILLAGE INDUSTRIES CLUSTERS
5 Barpeta Barpeta Cane & Bamboo Crafts

Cluster
Assam
6 Dhubri Lakhimani Cane & Bamboo
Cluster
7 Tripura West Gandhigram Crafts Processing

Cluster
Annual Report Tripura
2010-11 8 Agartala Agartala Bee Keeping Cluster
9 Arunachal Pradesh Lower Subansiri Ziro Traditional Dress Making

Cluster
10 Mizoram Aizwal Aizwal Cane & Bamboo Clusters
11 Meghalaya Jaintia Hills Development of Traditional

Bamboo & Handicrafts
12 Thoubal Carpentry Cluster

Manipur
13 Chandel Pallel Cane and Bamboo Cluster
14 Nagaland Montown Mon Beads making cluster
15 Sikkim South Sikkim Bee Keeping Cluster
244 MSME
Chapter -XII NER
12.12.3 Cluster development Development Executives (CDEs);

activities like execution of MoU among various trainings and awareness
Nodal Agencies, Implementing programmes, exposure visits,
Agencies, and Technical Agencies; preparation of Diagnostic Study
obtaining consent of the State Reports (DSR) and Annual Action
Government; appointment of Cluster Plans (AAPs) have been completed.
Annual Report
2010-11
MSME 245
Annual Report
2010-11
246 MSME
CHAPTER XIII
ACTIVITIES AND PROGRAMMES FOR WOMEN
13.1 ROLE OF THE MINISTRY for women may be seen in the

respective scheme guidelines as
13.1.1 The role of the M/o MSME is
available on the Ministry’s website
primarily to assist the States/Union
www.msme.gov.in. The details
Territories in their efforts to promote
of TREAD and Mahila Coir Yojana
growth and development of MSMEs.
are explained in the following
The main focus of the schemes/
paragraphs.
programmes undertaken by the Annual Report
Organisations of the Ministry is thus 13.2 TRAINING OF WOMEN

2010-11
to provide/facilitate a wide range of ENTREPRENEURS

services and programmes required
for accelerating the development 13.2.1 The policies of the
of MSMEs. Nevertheless, there are Government announced from time
a few schemes/programmes which to time have laid considerable
are individual/ beneficiary oriented. emphasis on promotion of women
While, there are several schemes, entrepreneurship particularly
wherein women are provided extra among first generation women
benefits/concessions/ assistance, through various training and
M/o MSME is implementing two support services. Special attention
specific schemes for women i.e. the is given by organising exclusive
scheme of TREAD and Mahila Coir Entrepreneurship Development
Yojana. The details of concessions Programmes (EDPs) for women.
MSME 249
Chapter -XIII WOMEN
13.2.2 NI-MSME, Hyderabad: 2010), the Institute has provided

During the year 2010-11 (up to training to 3,947 women. These
December 2010), the Institute included women from rural areas
has provided training to 1,177 and the training programmes
women under various training covered all kinds of entrepreneurial
programmes. development programmes.
13.2.3 NIESBUD, Noida: 13.2.5 NSIC: During the year

In accordance with the policy 2010-11 (up to December, 2010),
directions/guidelines of the NSIC has provided training to 5,996
Government of India for women under various training
accelerating the spread of programmes.
entrepreneurial culture among
women, the Institute continued 13.3 TRADE RELATED ENTRE-
Annual Report
with its activities having focus on PRENEURSHIP ASSISTANCE
2010-11
this target group and encouraged AND DEVELOPMENT (TREAD)

women candidates for participation SCHEME FOR WOMEN
in its different activities like The scheme envisages economic
Workshops, Entrepreneurship-cum- empowerment of women
Skill Development Programmes, through the development of their
Management Development entrepreneurial skills in non-
Programme etc. In this manner, the farm activities. There are three
Institute provided training to 4,909 major components of the scheme.
women participants through its The Government’s grant up to
different training activities during 30% of the total project cost is
the period. provided to the Non- Government
13.2.4 IIE, Guwahati: During Organisations (NGOs) for promoting
the year 2010-11 (up to December, entrepreneurship among women.
250 MSME
Chapter -XIII WOMEN
The remaining 70% of the project cost participation of women in them.

is financed by the lending agency In addition, the Coir Board is
as loan for undertaking activities as implementing the Mahila Coir
envisaged in the project. Further, Yojana which is a women oriented
the Government’s grant up to Rs.1 self-employment programme.
lakh per programme is provided Under this programme, women
to training institutions / NGOs for are provided training and ratts
imparting training to the women for carrying out spinning activity
entrepreneurs. Besides, need- and increasing their earnings. The
based grants up to Rs. 5 lakh may details of the benefits available
also be provided to national level to women entrepreneurs under
EDIs and other reputed institutions, these programmes and also their
for undertaking field surveys, participation in terms of numbers
research studies, evaluation studies, and subsidy provided are mentioned Annual Report
in the following paragraphs. 2010-11

designing of training modules etc.
Budget estimate for the year 2010-
13.5 PRIME MINISTER’S
11 under the scheme is Rs.270.00
EMPLOYMENT GENERATION
lakh and sanction of Rs.92.00 lakh
PROGRAMME AND WOMEN
has already been released up to
December 2010 to benefit 5,165 13.5.1 Relaxation is provided to
women. women beneficiaries under Prime
Minister’s Employment Generation
13.4 ACTIVITIES AND PRO- Programme (PMEGP) launched in
GRAMMES FOR WOMEN IN ARI 2008-09, such as:
SECTOR (i) For urban women
13.4.1 While implementing various beneficiaries, margin money
schemes of this Ministry, efforts subsidy is provided at the rate
are made to ensure adequate of 25% (for general category,
MSME 251
Chapter -XIII WOMEN
it is 15%) of the project cost self-employment opportunities

while it is 35% for women in to the rural women artisans in
rural areas (25% for general regions producing coir fibre. The
category). Scheme envisages distribution
(ii) In case of women entrepreneurs, of motorized ratts for spinning

beneficiary’s contribution is 5% coir yarn to women artisans after
of the project cost while in the giving training. One artisan per
case of beneficiaries belonging household is eligible to receive
to general category; it is 10% assistance under the scheme.
of the project cost. Women spinners are trained for
(iii) Bank finance in the form of two months in spinning coir yarn
on motorized ratt at the Coir
loan is 95% of the project cost
Board’s Training Centres. A stipend
in case of women and other
Annual Report
of Rs.500/- was earlier paid to the
weaker section borrowers
2010-11 trainees which has been raised to
and 90% of the project cost
Rs. 750/- per month from 2009-
in case of those belonging to
10. Coir Board provides motorized
general category.
ratts/motorized traditional ratts
at 75% cost subsidy subject to a
13.6 MAHILA COIR YOJANA
maximum ceiling of Rs. 7,500/- for
13.6.1 It is the first women- motorized ratts and Rs. 3200/- for
oriented self-employment scheme motorized traditional ratts. The
launched in the coir industry in remaining 25% has to be raised by
November 1994 which provides the beneficiary.
252 MSME
CHAPTER XIV
USE OF OFFICIAL LANGUAGE
14.1 Hindi is the Official Language Parliament were issued bilingually,

of the Union of India and the i.e., in Hindi and English. General
Government policy aims at orders meant for departmental use
progressively increasing the use were issued in Hindi only.
of Hindi in official work. Effective
14.3 REPLIES TO LETTERS IN
steps were taken during the year
HINDI
in the Ministry of MSME to ensure
implementation of the annual All letters received in Hindi were Annual Report
programme and compliance with the replied in Hindi. 2010-11
various orders of the Government 14.4 CORRESPONDENCE IN

of India on the recommendations HINDI
of the Committee of Parliament on
14.4.1 Letters to State Governments,
Official Language.
Union Territory Administrations and
Central Government offices located
14.2 COMPLIANCE OF SECTION
in regions ‘A’ and ‘B’ were issued
3(3) OF THE OFFICIAL LANGUAGE
in Hindi, to the extent possible.
ACT, 1963
Similarly, letters were sent in Hindi to
All documents, such as resolutions, Central Government offices located
general orders, rules, licences, etc., in region ‘C’ as per the targets laid
under section 3(3) of the Official down in the Annual Programme.
Language Act and all papers laid About 87% correspondence was
on the Table of both the Houses of made in Hindi in region ‘A’, 82% in
MSME 255
Chapter -XIV OFFICIAL LANGUAGE
region ‘B’ and 77% in region ‘C’ up organizations were inspected, to

to the quarter ending September, ensure use of Hindi and compliance
2010. with the Official Language policy.
14.4.2 The Ministry of MSME was

14.7 TRAINING OF OFFICIALS
selected by the Department of
Official Language for the 1st Prize of Many officials of the Ministry have
Indira Gandhi Rajbhasha Award for already been trained in Hindi typing
Excellent Work done in Hindi during and Hindi stenography.
2008-09. The Award was presented
by the Hon’ble Vice-President of 14.8 USE OF MECHANICAL AIDS
India to the Secretary (MSME) on
14.09.2010 on the occasion of As per the provisions of the Official
Hindi Diwas. Language Act, bilingual mechanical
Annual Report facilities have been provided in the
2010-11 14.5 SECTIONS SPECIFIED FOR Ministry. Computers and terminals
WORKING IN HINDI have also been installed with facility
The sections of the Ministry, to work in Hindi.

specified for doing 100% work in
Hindi, are working satisfactorily. 14.9 COMMITTEES
14.9.1 To review the use of Hindi in

14.6 MONITORING AND
the Ministry and to accelerate the
INSPECTIONS
use of Hindi, the Hindi Advisory
In order to ensure compliance Committee has been reconstituted
with the Official Language Policy, in the Ministry. The first meeting of
monitoring is done through the Hindi Advisory Committee was
reviewing the quarterly progress held on 15.09.2010 and the action
reports. During the year, Sections on the decisions of the Committee is
of the Ministry and attached being taken at appropriate levels.
256 MSME
14.9.2 The Departmental Official 14.9.3 Quarterly meetings of the

Language Implementation Committee were organized and
Committee under the Chairmanship important decisions for use of Hindi in
of the Joint Secretary (In-Charge of official work have been taken. Effective
Hindi) in the Ministry of MSME has steps for ensuring compliance of the
been constituted. decisions have also been taken.
Annual Report
2010-11
The then Union Minister of State (I/C) for MSME Shri Dinsha Patel addressing
the Hindi Advisory Committee
14.10 HINDI MONTH and motivate the employees for

doing official work in Hindi, various
Hindi month was celebrated from competitions like Hindi-Typing,
14 September 2010 to 13 October
th th
Hindi-Essay Writing, Noting and
2010 in the Ministry. To encourage Drafting in Hindi, General-Hindi,
MSME 257
Speech in Hindi, Antakshari and Government and to implement

Hindi work in section etc. were the directives of the Government
organised. Hindi Workshops were of India in this regard. During the
also organized during this period. year, 26 sections of O/o DC (MSME)
A large number of officers and were inspected to ensure maximum
employees participated in these use of Hindi and compliance
events with enthusiasm. Certificates with the Official Language Policy.
and cash awards were given to the Hindi Pakhwara was celebrated
winners of the competitions. The from 14th to 30th September, 2010
messages of the Hon’ble Home and various Hindi competitions
Minister, the Cabinet Secretary were conducted during the Hindi
and Hon’ble Minister (MSME) on Pakhwara. The Parliamentary
the occasion of Hindi Diwas, 2010 Committee on Official Language
Annual Report
were circulated in the Ministry of also inspected subordinate offices
2010-11
MSME as well as in its attached and of the DC (MSME) during the year.
subordinate offices for information The meetings of Official Language
and compliance. Implementation Committee are
regularly held in the O/o DC (MSME).
14.11 USE OF HINDI IN The requisite documents were
ATTACHED AND SUBORDINATE issued bilingually under section
OFFICES 3(3) of Official Language Act. All
the letters received in Hindi were
14.11.1 Office of the Development
replied to in Hindi.
Commissioner (MSME)
14.11.2 National Small Industries
There is a full fledged Hindi Section
Corporation (NSIC) Ltd.
in the Office of the DC (MSME)
to ensure compliance with the NSIC continuously strives to
Official Language Policy of the promote the use of Hindi in official
258 MSME
work. A full fledged Hindi Section were trained to work in Hindi and
with adequate staff is functioning regular quarterly meetings of
at the corporate office of Delhi. Official Language Implementation
The meetings of Official Language Committee were also organized
Implementation Committee and during the year. The KVIC also
Hindi Workshops are regularly regularly publishes in-house
organized in NSIC. During the magazine ‘Jagriti’ bilingually to give
year, Hindi Month was celebrated wide publicity to Khadi and Khadi
from 14th September, 2010 to 13th products.
October, 2010 in which various
14.11.4 Coir Board
Hindi competitions were held.
Literature and application forms The Coir Board continued its efforts
of various schemes of NSIC have to implement the Official Language
Annual Report
been prepared bilingually. NSIC has Policy. During the year 2010-11, the
2010-11
already started publishing Monthly office orders, circulars, etc. were
Newsletter namely “NSIC Chronicle” issued bilingually. Letters received
in Hindi and English. To achieve the in Hindi were replied to in Hindi. A
targets set by the Government, the Hindi Workshop was organized in
use of Hindi is being progressively the Board in which many officers/
increased in NSIC. officials participated. The Board
organized Official Language
14.11.3 Khadi &Village Industries
inspection of its sub-offices. The
Commission (KVIC)
maximum official work is done in
Hindi Fortnight was celebrated Hindi on 14th of each month at the
from 14th – 29th September, 2010 in Board Office. Hindi Pakhwara was
which various Hindi competitions celebrated in the Board and various
were held. Hindi Workshops were Hindi competitions were organized.
organized by KVIC and officials The advertisements of the Board
MSME 259
were issued in Hindi and Website 14.11.6 National Institute for

of the Board has been prepared Micro Small & Medium Enterprises
bilingually. The OLIC meetings were (NI-MSME)
held regularly.
As far as possible, efforts for
14.11.5 National Institute implementation of Official
for Entrepreneurship and Language Policy of the Government
Small Business Development are being made by the Institute.
(NIESBUD)
Course material for the programmes
The Annual Report of the Institute conducted in the Hindi speaking
and Agenda Papers and other areas was provided in Hindi. Replies
details for the Meeting of Sanchalan to the letters received in Hindi were
Parishad had been prepared invariably given in Hindi. Employees
Annual Report bilingually. All the reports related of the Institute were encouraged to
2010-11
to Official Language had been use Hindi to the maximum extent.
sent regularly. A Hindi Week was
14.11.7 Indian Institute of
organized during 14th September,
Entrepreneurship (IIE)
2010 to 20th September, 2010. During
the Hindi Week celebration, a Hindi All the forms used in the office
Workshop was organized wherein were made bilingual. Newsletters
employees were appraised about pertaining to activities of the
writing of notes and drafts in Hindi Institute have been translated
as also about Hindi translation. The in Hindi and published in local
maximum official work is done in
newspapers. Headings of the files
Hindi on 14 of each month at the
th
have been made bilingual and
Institute. Entrepreneurship-cum-
noting on files is being done in
Skill Development Programme was
Hindi. The Website of the Institute
organized in Hindi in the Institute.
is being prepared bilingually. The
260 MSME
Official Language Inspection of the NIC. The OLIC meetings were held
Regional Offices had been done by regularly. Advertisement etc., were
the Institute. Most of the employees published in Hindi also.
have been trained under the
14.11.8 Mahatma
Hindi Sikshan Yojana. Hindi Week Gandhi Institute for Rural
was celebrated during 14 to 21
th st
Industrialisation (MGIRI)
September, 2010 and a Hindi Quiz
Maximum efforts are being put in
was organised during the Hindi
to implement Official Language
Week. Employees had also been
policy in the Institute.
imparted Computer training by
Annual Report
2010-11
MSME 261
Annual Report
2010-11
262 MSME
CHAPTER XV
VIGILANCE ACTIVITIES
15.1 The Vigilance Division of 15.3 The Vigilance Division also

the Ministry is headed by a Chief deals with the appeals preferred
Vigilance Officer (CVO) of the rank by employees of the organizations
of Joint Secretary who functions functioning under the Ministry on
as a nodal point for all vigilance the penalties imposed on them
matters in consultation with the as also complaints, etc. received
Central Vigilance Commission and against the functionaries of these
Investigating Agencies. organizations. The following Annual Report
2010-11
functions are also performed by the
15.2 The Ministry is implementing
Division:-
the guidelines/instructions issued
(i) Maintenance of Confidential
by the Department of Personnel &
Reports of Officers and Staff.
Training and the Central Vigilance
Commission on creating greater (ii) All cases falling under CCS
awareness of vigilance among the (Conduct) Rules, 1964.
users of its services. In order to bring (iii) Safe custody of mortgage

about awareness about vigilance bonds/deeds.
and transparency in functioning of (iv) Vigilance clearance for
offices that have public inter-face, administrative purposes.
the Vigilance Awareness Period
was celebrated from October 25 to 15.4 Vigilance set up of
November 1, 2010 starting with a Organisations under
Pledge Taking on October 25, 2010. Ministry of MSME
MSME 265
Chapter -XV VIGILANCE
15.4.1 Office of the Inquiries, Investigations,

Development Commissioner Inspection, Scrutiny of Annual
(MSME) Property Return, etc., were
sent to CVC.
15.4.1.a The Vigilance Unit of this
ii) Quarterly return regarding
office is headed by a Chief Vigilance
examination of work by Chief
Officer (CVO) of the rank of Director
Technical Examiner i.e., an
appointed on the advice of the
organization of CVC, was also
Central Vigilance Commission.
sent to Ministry of MSME.
The Vigilance Section deals with
vigilance matters like complaints iii) Fortnightly report regarding
and vigilance cases coming within complaints concerning
the purview of CCS (CCA) Rules, corruption/ irregularities
Annual Report 1965 concerning MSME. received from Prime Minister’s

2010-11 Office and expeditious
15.4.1.b Complaints & Vigilance disposal in a time bound
Cases manner of cases for according
sanction for prosecution
Apart from complaints and vigilance
under Section 197 Cr. PC and
cases against officers and staff
Section 19 of Prevention of
relating to corruption etc., a number
Corruption Act were also sent
of anonymous complaints other
to Ministry of MSME.
than those of corruption pertaining
to the officers of MSME, were iv) Quarterly reports regarding
also handled during the year. The Action Plan on Anti-
following reports were submitted: Corruption Measures and
complaints/disciplinary cases
i) Monthly report and
against CSS Officers (Gr. ‘B’ &
complaints, action on
above) and CSSS Officers (PPS
CVC advice, Departmental
266 MSME
Chapter -XV VIGILANCE
and Sr. PPS) were also sent to 15.4.2 National Small

DoPT and Ministry of MSME. Industries Corporation (NSIC)
Ltd.
15.5.1.c Vigilance and Anti-
corruption work done by the The National Small Industries
Vigilance organization: Corporation Ltd. (NSIC), is a public
sector enterprises under the
Wherever any procedural lacuna or
Ministry of MSME. The vigilance
working defects in the organizations
work in NSIC is looked after by a
come to light, instructions are
part-time Chief Vigilance Officer,
issued for adopting ways and means appointed on the advice of CVC.
to avoid recurrence of such cases
15.4.3 Khadi & Village Industries
relating to that of theft, fraud etc.
Commission (KVIC)
15.5.1.d Improvement in Methods
The Khadi & Village Industries Annual Report
and steps taken to check Delays 2010-11
Commission (KVIC) is a statutory
and Corrupt Practices:
organization under the Ministry of
The present arrangements are MSME. The vigilance work in Khadi
working satisfactorily and no change & Village Industries Commission
in methodology or procedure is is looked after by a full-time Chief
considered necessary. The vigilance Vigilance Officer appointed on the
cases in respect of Group ‘C’ staff advice of CVC.
of field offices are attended to by 15.4.4 Coir Board
the Director of the Institute/Centre The Coir Board, Kochi, is a statutory
who is assisted by Assistant Director body under the Ministry of MSME.
(Admn). The services of senior The Vigilance work in Coir Board is
officers both at Headquarters and looked after by a part-time Chief
in the field offices are utilized for Vigilance Officer appointed on the
investigating the complaints. advice of CVC.
MSME 267
Annual Report
2010-11
268 MSME
CHAPTER XVI
CITIZENS’ CHARTER / RIGHT TO INFORMATION ACT
(RTI) AND PERFORMANCE MONITORING, EVALUATION
SYSTEM (PMES) AND ACTIVITIES UNDERTAKEN FOR
THE BENEFIT OF THE PERSONS WITH DISABLITIES
16.1 Citizens’ Charter of the (b) The formulation and

Ministry (Salient features) implementation of policies and
programmes/ projects/schemes
This Charter is a Declaration of the are undertaken by the Ministry
Annual Report
2010-11
Ministry, incorporating its mission with the assistance of its attached
and commitment to the Micro, office, public sector enterprise,
Small and Medium Enterprises and statutory bodies and autonomous
for the people of India, in general. organisations.
(c) The aim of this Ministry is to

16.1.1 Ministry of Micro, Small
provide prompt service to citizens
and Medium Enterprises
through its attached office, public
16.1.1(a) The role of the Ministry sector enterprise, statutory bodies
of Micro, Small and Medium and autonomous organisations,
Enterprises is mainly to assist the for accelerating the growth of

MSMEs and also to enhance their
States in their efforts to promote
competitiveness.
growth and development of MSMEs
and to address common concerns (d) The Ministry seeks to
of enterprises. fulfill its mission by formulating
MSME 271
Chapter -XVI CITIZENS’ CHARTER/RTI/PMES
appropriate policies and designing/ 16.1.4 COMMITMENT

implementing support measures in
The Ministry and its organisations
the fields of credit, technological are committed to providing
upgradation, marketing, efficient and prompt services with
entrepreneurship development, transparency and courtesy to the
etc., and undertaking effective citizens as well as to MSMEs.
advocacy for these purposes.
16.1.5 STANDARD FOR GENERAL
(e) All the organisations of the PROCEDURE
Ministry have their own Citizen’s The letters received by the Ministry
Charter. are generally acknowledged within
15 days and replied to as soon as
16.1.2 MISSION
possible.
Annual Report
2010-11 Promote growth and development of 16.1.6 RESPONSIBILITIES OF OUR
Micro, Small and Medium Enterprises, CITIZENS
including, Khadi, Village and Coir
The Ministry expects continuous
industries, in cooperation with
feedback from the citizens on the
concerned Ministries/Departments,
quality of the services provided
State Governments and other to them and on areas in which
stakeholders by providing support to improvements are expected.
existing enterprises and encouraging
16.1.7 ASSESSING
creation of new enterprises.
PERFORMANCE
16.1.3 VISION The Ministry, from time to time, shares
its performance with the citizens
To have a vibrant Micro, Small and
and stakeholders through the media
Medium Enterprises (MSME) sector.
and its website. The Ministry also
272 MSME
undertakes independent surveys been put in place to give information

on perceptions of the citizens and as well as guidance to potential
assessment of its performance. entrepreneurs.
16.1.8 GUIDANCE AND HELP 16.1.9 Annual Reports and

Handbook on Self Employment have
The Information and Facilitation
been published and are available
Counter of the Ministry, located on
for the information of potential
the ground floor (between Gate No.
entrepreneurs, policy makers and
4 and 5), Nirman Bhavan, New Delhi,
others. The website of the Ministry,
provides information on the services
i.e., www.msme.gov.in provides all
and activities of the Ministry and its
the relevant information and link to
organizations. It also receives RTI
its organisations.
applications as well as fees, if any,
by RTI applicant. 16.1.10 COMPLAINTS Annual Report
2010-11
The Ministry has set up a Call In case of any complaint, one may
Centre namely, ‘Udyami Helpline’ to telephone or send a letter or fax or
give free access of information and visit the Ministry at Udyog Bhavan,
guidance to potential entrepreneurs New Delhi. However, before lodging
throughout the country by making a complaint, one may, first of all,
a provision of toll free Telephone use the Information and Facilitation
Number 1800-180-6763. Under
Counter of the Ministry. In case one
this, any potential entrepreneur
is not satisfied, the matter may be
desirous of getting any information
taken up with the Grievance Officer
regarding schemes of Ministry of
in this Ministry. The address, phone
MSME or anything related to small
and fax numbers of the Information
businesses may get information
and Facilitation Counter and the
by dialing up this toll free number.
Grievance Cell are as follows:-
Adequate trained manpower has
MSME 273
Particulars Website Address Organisation
1. Grievance Cell www.msme.gov.in M/o MSME

Economic Advisor, Office of the
Development Commissioner (MSME), www.dcmsme.gov. O/o DC (MSME)
Room No.716, in
Nirman Bhawan, New Delhi – 110108.
Tel: 23061277, Fax: 23061804 www.nsic.co.in NSIC, New Delhi
www.niesbud.nic.in NIESBUD, Noida

2. Information and Facilitation
Counter, www.nimsme.org NI-MSME,
Gate No. 4, Ground Floor, Nirman Hyderabad
Bhavan, New Delhi – 110108. Tel.
No. 23062219 www.iie.nic.in IIE, Guwahati
www.kvic.org.in KVIC, Mumbai
Annual Report www.coir-india. Coir Board, Kochi

2010-11 com
www.mgiri.org MGIRI, Wardha
16.2 RIGHT TO INFORMATION by the Ministry, out of which 59

(RTI) ACT applications were transferred, 81
requests were accepted/ replied to
For information under the RTI
and 1 was rejected. The complete
Act, 2005, citizens may approach
information in respect of the
the Public Information Officer
Ministry and the other Public
(RTI) located between Gate No.
Authorities of the Organisations
4 & 5, Nirman Bhavan, (Office of
under this Ministry was duly
the Development Commissioner,
MSME), New Delhi on any working uploaded on the website of the
day. During the year 2009-10, Central Information Commission.
141 applications were received The details of the CPIO’s/Appellate
274 MSME
Authority are available at Ministry/ controlling authority from

respective Office website. The list of Department of Industrial Policy
Nodal CPIO of the Ministry and its & Promotion, this Ministry is
organizations is at Annexure-VIII.
maintaining ‘reservation roster’
16.3 PERFORMANCE as per the instructions on the

MONITORING AND EVALUATION subject. The vacancies arising out
SYSTEM (PMES) of 100 point roster for the disabled
persons for the Ministry and its
Government has recently approved
attached office of the Development
a Performance Monitoring and
Commissioner (MSME) are regularly
Evaluation System (PMES) for
intimated to the Department of
Ministries/Departments. As per
this, Ministries/Departments are Pesonnel and Training for filling
required to prepare a Results– up of such posts. Besides this, Annual Report
Framework Document (RFD). The other facilities (like conveyance 2010-11
Ministry has prepared a Results – allowance), as per the Government
Framework Document (RFD) after of India’s instructions, are provided
due deliberations with Ad-hoc Task
to the disabled persons working in
Force constituted by the Cabinet
this Ministry.
Secretariat, summarizing the main
objective and corresponding action The National Small Industries
for the year. The RFD for 2010-11 Corporation Limited, a PSU of this
is available on the website of the
Ministry and 3 EDIs namely National
Ministry (www.msme.gov.in).
and Small Business Development,
16.4 ACTIVITIES UNDERTAKEN
Noida, National Institute for Micro,
FOR THE BENEFIT OF THE
Small and Medium Enterprises,
PERSONS WITH DISABILITIES
Hyderabad and Indian Institute of
On separation of the cadre Entrepreneurship, Guwahati are
MSME 275
providing necessary reservation/ 11 (up to December, 2010), NSIC has

preference for the training in provided training to 378 Physically
different fields of entrepreneurship Handicapped persons under various
development. During the year 2010- training programmes.
Annual Report
2010-11
276 MSME
ANNEXURE -I
MSME
Statement showing the Budget Estimates, Revised Estimates, Expenditure as well as progress during the
year 2009-10 & the Budget Estimates and Quantifiable / Deliverable/ Physical Output for the year 2010-11
(Rs. in Crore)
Sl. Name of the 2009-10 2010-11

No. Scheme
BE RE Exp. Physical Progress/ BE RE Quantifiable /

2009-10 2009-10 2009-10 Achievement 2010-11 2010-11 Deliverable/ Physical
2009-10 Output
2010-11
1 Surveys, 1.00 0.09 0.06 Assistance 1.00 0.50 13 surveys/ studies

Studies provided for are to be conducted
and Policy completion of during 2010-11.
Research 01 study.
2 Assistance 10.00 6.30 6.58 35586 persons 54.25 51.80 40000 persons to be
to Training trained trained.
Institutions
Provided To Provide financial
financial assistance to set
assistance of up one new EDI in
49.81 lakh to Arunachal Pradesh
IED, Orissa for and assistance to
strengthening one existing EDI
infrastructure. for strengthening
277
infrastructure.
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sl. Name of the 2009-10 2010-11
No. Scheme
278
BE RE Exp. Physical Prog- BE RE Quantifiable / Deliver-
2009-10 2009-10 2009-10 ress/Achieve- 2010-11 2010-11 able/ Physical Output
Annexure-I Contd.
ment 2010-11
2009-10
3 Rajiv Gandhi 5.00 0.50 0.24 228 Udyami 7.75 2.66 4000 new udyamis
Udyami Mitra Mitras are expected to be
Yojana have been assisted
empanelled
who are
providing
handholding
support to first
generation
entrepreneurs.
MSME Info Call

Centre/Helpline
to provide
support to new
entrepreneurs
has been
established.
4 International 2.00 2.00 2.00 MSME Units 2.00 4.00 MSME Units to
Cooperation have been be assisted in
Scheme assisted in participating 30
participating international events.
44 international
MSME
events.
Sl. Name of the 2009-10 2010-11
MSME
No. Scheme

ment 2010-11
2009-10
5 Performance 20.90 40.00 36.80 7531 units have 35.00 35.00 9400 units will be
& Credit been rated rated.
Rating
Scheme
6 Marketing 10.00 10.00 10.00 1. Organised 10.00 10.00 To be organised /

Assistance / participated participated in 43
Scheme in 105 Exh.
Exhibitions.
To be co- sponsored
2.. Organized in 40 Exhibitions
24 Buyer Seller
Meets To be organized 15
Buyer Seller Meets
3. Conducted
831 Intensive To be conducted 450
Campaigns. Intensive campaigns.
279
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sl. Name of the 2009-10 2010-11
No. Scheme
280
Annexure-I Contd.
ment 2010-11
2009-10
7 National 1.10 1.11 1.11 NCEUS has - - -

Commission been wound
for Enterprises up.
in the
Unorganised
Sector
(NCEUS)
Sub-Total for 50 60.00 57.37 110.00 103.96

SSI Division
MSME
ARI DIVISION
MSME
Khadi & Village Industries Commission (KVIC)
(Rs. in crore)
BE 2009- RE 2009- Exp. Physical Progress/ BE RE Quantifiable/
Sl.
Head 10 10 2009- Achie- 2010- 2010- Deliverable/Physical
No
10 vement 11 11 Output
1 2 3. 4. 5 6 7. 8. 9.
1. Khadi Grant 125.00 125.00 117.48 (i) Khadi 290.00 448.60 (i) Khadi
(including MDA) Prod.: Rs. 628.98 crore
Sales: Rs.867.01 crore Prod.: Rs. 700.00 crore
Employment (cumulative): Sales: Rs. 1010.00 crore
9.81 lakh persons Employment
(cumulative): 10.50
lakh persons
(ii) Rebate Scheme - Rs. (ii) MDA Rs. 144.00

88.33 crore provided crore to be provided
towards rebate on sale of towards MDA.
khadi
(iii) ISEC: (iii) ISEC: Rs 30.00 crore
Rs 25.00 crore provided to be provided towards
towards subsidy subsidy
(iv) PRODIP: 118 khadi (iv) PRODIP: 130 khadi
projects sanctioned projects to be assisted
281
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sl.
No
282
1 2 3. 4. 5 6 7. 8. 9.
2 S&T(Khadi) 2.00 2.00 - 106 units assisted for 2.00 2.00 32 units to be assisted
Annexure-I Contd.
establishment of in-house for establishment of in-

test laboratories house test laboratories
3 Khadi loan 2.00 2.00 0.15 Loan is provided to the 2.00 2.00 Loan will be provided
institutions located in NER to the institutions
for gainful employment to located in NER for
the spinners and weavers gainful employment
to the spinners and
weavers
4 Interest Subsidy 5.00 5.00 5.00 This is book adjustment 5.00 5.00 This is book
(khadi) only towards subsidy on adjustment only
interest on loans provided towards subsidy on
in the past. interest on loans
provided in the past.
MSME
Sl.
MSME
No
1 2 3. 4. 5 6 7. 8. 9.
5 VI Grant 40.00 40.00 34.20 55.00 78.42 (i) Village Industry
Prod.: Rs. 20670.00
crore
(i) Village Industry Sales: Rs. 24580.00
Prod.: Rs. 17508.00 crore crore
Sales: Rs. 23254.53 crore Employment
Employment (cumulative): (cumulative): 109.87
98.72 lakh persons lakh persons
(ii) RISC - 18 projects (ii) RISC - 14 projects to
sanctioned be assisted
(iii) PRODIP: 88 VI
(iii) PRODIP: 51 V.I projects projects to be assisted
sanctioned
(iv) Training: 66,121
(iv) Training: 63071 persons persons
(v)Exhibitions – 38 (v)Exhibitions – 39
exhibitions/ events exhibitions/ events to
organized be organised
6 S&T (VI) 2.00 2.00 0.40 65 projects assisted 2.00 2.00 65 projects to be
assisted
283
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sl.
No
284
1 2 3. 4. 5 6 7. 8. 9.
7 VI Loan 1.00 1.00 - 1.00 1.00 Loan will be provided to
Annexure-I Contd.
the institutions located

in NER for gainful
employment to the
spinners and weavers
8 Interest Subsidy 5.00 5.00 5.00 This is only book adjustment 5.00 5.00 This is only book
(VI) towards subsidy on interest adjustment towards
on loans provided in the past. subsidy on interest on
loans provided in the
past.
9 PMEGP 823.00 601.20 545.71 No. of projects assisted: - 906.00 920.64 No. of projects: - 59,714
39502 Margin money subsidy:
Margin money utilised: Rs. Rs. 920.64 crore
742.76 crore Creation of employment
Estimated employment opportunities: 5.97 lakh
opportunities generated: 4.20 persons
lakh.
10 Workshed 15.00 15.00 13.95 Assistance has been 20.00 20.00 Assistance to be
Scheme for provided to 5951 artisans provided to 8000
Khadi Artisans: during the year. artisans.
MSME
BE 2009-10 RE 2009- Exp. Physical Progress/ BE RE Quantifiable/
Sl.
MSME
Head 10 2009- Achie- 2010- 2010- Deliverable/Physical
No
1 2 3. 4. 5 6 7. 8. 9.
11 Scheme for 8.00 8.00 3.44 20 Khadi Institutions 21.00 21.00 Financial assistance to
enhancing have been selected for 59 khadi institutions
productivity assistance under this
& competi- scheme.
tiveness of
Khadi Industries
and artisans
12 Scheme for 5.00 5.00 2.73 A token provision has been 5.00 5.00 25 khadi institutions
Strengthening made. The implementation to be assisted and 10
of Infrastru- guidelines are issued in sales outlets to be
cture of existing July 2009. renovated.
Weak Khadi
Institutions
and Assistance
for Marketing
Infrastructure
13. Khadi Reform 96.00 96.00 96.00 192.00 1.00 Preliminary activities
Programme such as selection of
khadi institutions,
action plan, etc. to be
285
undertaken
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
BE 2009-10 RE 2009- Exp. Physical Progress/ BE RE Quantifiable/
Sl.
Head 10 2009- Achie- 2010- 2010- Deliverable/Physical
No
286
1 2 3. 4. 5 6 7. 8. 9.
Sub-Total 1129.00 907.20 824.06 1506.00 1511.66
Annexure-I Contd.
II Mahatma 3.00 3.00 3.00 The project has been 6.00 6.00 Technical Support to
Gandhi operationalised with 38 model enterprises
Institute for the filling up of the post and in 15 cases
Rural Industria- of Director and scientific improved machines
lisation and technical posts have and Process/services
been filled and it is fully in rural industries have
functional. been developed.
MSME
COIR BOARD
(Rs. in crore)
MSME
Sl. Heads BE RE 2009- Exp. Physical performance BE RE Quantifiable/Deliverable/
No. 2009-10 10 2009-10 under main schemes 2010- 2010 Physical Output
11 -11
1 2 3. 4. 5 6 7. 8. 9.
1 Plan – S&T 7.00 7.00 7.00 Development of 7.00 7.00 Development
machinery and equipment: of machinery and
----07 Nos., Consultancy equipment: 04 Nos.,
provided to -2264 Consultancy to be
entrepreneurs on new S&T provided to 1200
developments entrepreneurs on new
S&T developments
Technology transfer to
Industry: 04 Nos. Technology transfer to
Industry: 25 Nos.
Demonstration of S&T
Technologies: 182 Nos. Demonstration of S&T
Technologies: 120 Nos.
2 Plan (General), 27.00 22.00 22.00 Coir 28.00 24.40 Coir
Training Prod.: 5,15,500 M.T. Prod.: 5,70,000 M.T.
Extension, Quality Export: Rs. 804.05 crore Export: Rs. 800.00 crore
Improvement, Empl.: 6.84 lakh Empl.: 7.15 lakh
Mahila Coir
Yojana & Welfare
287
Measures
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
11 -11
288
1 2 3. 4. 5 6 7. 8. 9.
Skill Upgradation & Skill Upgradation &
Annexure-I Contd.
Quality Improvement: Quality Improvement:

-4062 persons trained Training of 8000 persons
for manufacturing value for manufacturing value
added products, -07 EDP added products.
conducted and 12 QIP
organized. EDP: 30
QIP: 25
Mahila Coir Yojana: Mahila Coir Yojana:

4945 beneficiaries trained 4500 beneficiaries to be
and 264 ratts distributed. trained and 3000 ratts
distributed.
Development of Development
Production Infrastructure: of Production
26 coir units assisted. Infrastructure: 90 coir
units to be assisted.
Domestic Market Domestic Market
Promotion: participated in Promotion: Participation
60 domestic exhibitions in domestic exhibition:
125
MSME
MSME
11 -11
1 2 3. 4. 5 6 7. 8. 9.
Export Market Promotion Export Market
(EMP) : Participated Promotion (EMP):
in 09 international Participation in
exhibitions. Assistance to 10 international
exporters/ entrepreneurs exhibitions. Assistance
for participation in to exporters/
international exhibitions entrepreneurs
76 Nos for participation
in international
exhibitions – 60 Nos
3 Rejuvenation, 21.00 13.00 9.73 706 units assisted. 21.00 15.00 1200 units to be
Modernization (spinning units 296 and assisted.
and Technology tiny household - 410) (spinning units – 500
Upgradation of and tiny household -
the Coir Sector 700)
Sub-Total 55.00 42.00 38.73 56.00 46.40
289
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
11 -11
290
1 2 3. 4. 5 6 7. 8. 9.
III SFURTI 21.00 16.95 16.95 72 KVI clusters have 17.00 17.00 24 clusters
Annexure-I Contd.
become functional. There operationalised during

is an improvement in the year.
the earnings of artisans/
workers.
Sub-Total 1204.00 964.20 877.79 1585.00 1581.06
for ARI
Division
MSME
STATEMENT SHOWING BE, RE and Physical Progress of 2009-10 and 2010-11 (up to Dec.2010) - O/O
MSME
DC(MSME), M/O MSME Demand No.64
(Rs. Crore)
Sr. 2009-10 2010-11

No.
BE RE Actual Physical Progress BE RE Physical

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress up
2009-10 to Dec.2010
DC(MSME)
A Central Sector Schemes
I Quality of Technology
Support Institutions &
Programmes
1 Tool Rooms & Tech.

Institutions
291
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
292
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
a Tool Rooms 48.95 56.15 57.85 a. Training of 57.00 58.37 a. Training
57335 persons of 47185
b Research Institutes b. Benefiting 17214 persons
b.
units including:
Benefiting
NER -
17866 units
a. Training of (including
1062 persons b. NER-a.
Benefitting 48 units. training of
817 trainess
b. Benefitted
273 units,
SC:13669,
ST:2080
trainess
c Training Institutes 2.40 3.22

2 NMCP
MSME
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
a. Lean Manufacturing 28.65 9.80 6.29 a) 95 awareness 20.00 11.10 05
Competitiveness Scheme Prog- rammes Awareness
organised Programme
b) 20 Special organized,
Purpose Vehicles 70 SPV
(SPVs) in Mini formed.
Clusters formed/
registered
c) 13 Lean
Manufacture
Consultants
short listed for
attachment to Mini
Cluster.
293
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
294
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
b Promotion of ICT Tools in 2.00 1.82 0.06 12.00 5.10 I. EFC
MSME Sector approved on
29.4.10 by
Secy.(Exp.)
II. The
scheme
has been
approved on
6.8.10
MSME
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
c Setting up of Mini Tool 32.00 0.25 0.23 (i) Draft request 10.00 2.50 I. Model
Rooms under PPP mode for Qualification, RFQ
Request for proposl document
and Agenda approved by
documents for SFC II. Pre-
Chennai Project qualification
prepared and application
circulated to for Cheenai
all concerned project
Ministries/ received and
Deptartments evaluated
before Finalization. III. Bids
(RFP) from
qualified
bidders for
cheenai
project
would be
invited
shortly.
295
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
296
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
d Technology Upgradation and 5.00 0.50 0.00 The first meeting 9.50 3.55
Quality Certification Support held on 12.02.2010
to MSMEs to select clusters for
implementing the
scheme.
e Support for Entrepreneurial 8.00 2.50 1.91 22 Business 10.00 10.00 29 nos. of
and Managerial Incubators Incubetors
have been
Development of SMEs benefiting 80
setup and
through Incubators incubators units. grand-
in-aids
has been
released to
professional
stock
companies
for nurturing
80 ideas.
MSME
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
f Design Clinics Scheme for 2.00 2.00 1.76 2 Seminars 8.00 4.00 i) 44
MSME Sector organized Seminars
and 2
workshops
organised.
ii) 14
Student
projects
selected.
iii) 19
individual
MSME
projects.
g Enabling manufacturing 7.40 5.50 1.37 (i) 70 awareness 5.00 4.50 210 ITI
Sector to be competitive programmes teachers
trained, 14
through Quality organized (ii) 499 ITI awareness
Management Standards and teachers trained programmes
Quality Technology Tools organized.
One
International
Mission
297
to Japan
completed.
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
298
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
h Marketing Assistance and 1.00 1.00 0.00 - 2.00 2.00 139 MSME
Technology Upgradation Units
Scheme for MSMEs participated
in local
exhibitions/
fairs.
3 Credit Linked Capital 120.00 163.25 163.25 Benefitted 2551 195.00 250.68 Benefitted
Subsidy Scheme units 2055 units
4 ISO 9000/14001 10.25 6.66 5.77 Benefited 1285 units 7.15 7.65 Benefitted
Reimbursement NER- 2 units 764 units,
NER: 03
5 VSBK 0.35 0.35 0.16 I) Organised 0.35 0.35 ( i) Organising
Seminars/ Seminar/
Workshops.4
workshops - 4 nos. (ii) Setting up
II) Setting up of demo center
4 nos., one
demonstration no. under
MSME
Centres - 4 nos. progress (iii)
III) Training - 9 nos Training. 09
No.
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
Sub Total 268.00 253.00 238.65 336.00 359.80
II Promotional Services Institutions & Programmes
1 DC (MSME) Officers’ 1.00 0.60 0.60 Trained 202 officers 1.00 1.00 Trained for
Training Programme NER: 12 Nos officers 123 officers
including
NER 03
Officers.
2 Provision for Workshops/ 1.20 1.10 0.89 18 workshops 1.50 0.87 09
Trg. modernised. Workshops
3 MSME TCs/MSME TSs 4.60 4.60 4.06 (a) 40536 no. jobs 5.15 5.15 29177 Nos.
tested. jobs Tested
(b) 72 nos new/ and 05 Nos.
of new
balancing test
machine/
equipment/machine
testing
installed.
299
equimpment
installed
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
300
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
4 MDP/EDP/Skill Development 21.33 21.33 19.79 In total 569 EDPs 23.75 23.75
& 300 of MDP, 138555
Benefitting 3.75 persons
lakh persons, to be
NER-400 EDP and
motivated
50 Nos. MDP
and 61550 tr
benefited 21250
persons(including ained.
benefit of SCSP,
45000 persons, TSP
15000 persons and
100000 women
5 WTO 0.05 0.05 0.05 9 WTO Sensitization 0.05 0.05 04
workshops. programmes
conducted
benefiting 249
participants.
MSME
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
6 Bio-Technology 0.20 0.20 0.17 29 programmes 0.20 0.20
conducted.
7 National Award 2.75 2.75 2.15 154 Awards 2.75 2.75 Awards
(Entrepreneur & Quality) NER : 1 Award given to 22
MSMEs & 06
Banks
8 Vendor Development 1.25 1.25 0.95 24 VDPs Conducted 1.40 1.40 09 VDPs
Programme for NER : 1 VDP
Ancillarisation
9 SENET Project 1.40 1.40 1.20 Maintenece of 1.60 1.60
website and sharing
of information
with associations,
field offices and
automation of
301
office.
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
302
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
10 DC(MSME) Library 0.30 0.30 0.26 The libraries 0.30 0.30
of DC(MSME)
modernised.
11 Publicity & Exhibition 0.50 0.35 0.29 Participation in 12 0.50 0.30 12 Trade
Trade Fairs. Fairs
participated
12 Scheme for Conduct of 1.30 1.20 1.03 107 programmes 1.45 1.45 250 persons
Tailor made courses for conducted to train trained.
new entrepreneurs through 3029 persons.
select business Schools,
Technical Institutes, etc.
13 Scheme to support 5 select 1.12 1.12 0.27 142 Clubs formed 1.50 1.05
universities/colleges to run benefiting, 10912
1200 entrepreneurs clubs. entrepreneures.
MSME
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
14 Training-cum-product 1.00 1.00 0.36 One building 2.00 2.00 Building
Development Centre,TPDCs. completed and under
one building under construction
construction at MSME DIs
Indore and
Guwahati,
construction
of Building
at MSME DI
Ludhiana will
start.
15 Scheme for capacity 1.50 1.00 0.43 39 Associations 1.00 0.70 16 proposals
building, strengthening of benefited. sanctioned
data base and advocacy
by industry/enterprises
303
associations.
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
304
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
16 Testing Centres by Industry 2.00 3.05 Grant-in-aid to 5 0.00 0.00
Associations Testing Centres /
QMCs was released
during the year
2009-10.
17 Vendor Development 0.30 0.50 0.00 One SCX reimbursed 0.00 0.00
Programme for
Ancillarisation (For setting
up of SCX)
18 Advertising & Publicity 2.50 2.50 2.50 2.75 2.75 Advertise-
ment cannot
be quantified
19 MSME DI 7.72
5.20 6.20 Salary,Medical,RRT,OE 5.95 6.15 Not
& TE for MSME DIs . quantifiable
0.30 0.30 0.30 0.30
0.45 0.45 0.40 0.40
0.50 0.50 0.50 0.50
0.25 0.25 0.25 0.25
MSME
Sub Total 51.00 52.00 42.72 54.30 52.92
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
III MSME Cluster Development Programmes and MSME Growth Poles
1 MSME Cluster
Development Programme
(including IID subsumed)
a MSE CDP 26.00 15.93 13.77 a) New clusters 35.00 20.46 - 29
undertaken for Diagnostic
Studies
diagnostic study Reports,
reports – 43 - 11+25 Nos.
b) Clusters fund release
in on-going
undertaken for clusters
soft interventions for soft
including ongoing intervention
- 10 new CFCs
clusters –87. approved and
c) New Common fund released
Facility Centre in 06 ongoing
CFCs.
(CFCs) -09 approved. -In principle
approvals-14
Nos.
305
- 03 achived.
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
306
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
b Fund released to -Funds
22 ongoing IID released to
IID 12.00 12.00 12.13 centres including 20.00 13.00 ongoing IID
8 from NER for Centers 12
development of - 15 IID
infrustructure Centres,
facilities. approved,
- In-principle
approval 17
2 MSME Growth Poles of 1.00 0.50 0.29 DPR for 6 Growth 1.00 0.00
NCEUS Poles have been
prepared.
Sub Total 39.00 28.43 26.19 56.00 33.46
IV Credit Support Programme
1 Credit Guarantee Scheme 122.00 122.00 122.00 a) Guarantee cover 200.00 200.00 a) Guarantee
for 151387 MSEs cover for
b) Credit Amount - 178082
Rs.6875.11 Crore MSEs
b) Credit
amount of
Rs. 8756.95
MSME
crore
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
2 Augmentation of Portfolio 20.20 6.00 6.00 718700 micro units 20.00 20.00 163163
Risk Fund under MFP micro units
(incl. NER
20160, SC
52154 & ST
15187)
3 TREAD 1.80 1.80 1.32 Benifited 2.70 2.70 5165
4768 women womens
entrepreneurs. benefitted
Sub Total 144.00 129.80 129.32 222.70 222.70
V MDA Programme
Export Promotion & MDA
Scheme
1 MDA Scheme 1.40 1.40 0.94 1.40 2.00
2 Empowerment of women 1.00 1.00 0.37 Benefitted 64 1.00 0.20
owned enterprises, women MSEs by
participation in 25 way of participation
exhibitions and marketing in 12 international
facilitation trade fairs.
3 Marketing Support/ 0.25 0.25 0.13 Benefitted 132 SMEs 0.30 0.30 Benefitted
307
Assistance to MSMEs (Bar 101 MSEs.
Coding)
Annexure-I Contd.
2010-11
Annual Report
2010-11
Annual Report
Sr. 2009-10 2010-11
No.
308
2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
Annexure-I Contd.
2009-10 up to
Dec.2010
4 Export Promotion 0.15 0.15 0.14 25 training 0.15 0.15 08
Programmes
programmes
conducted &
conducted. 377 persons
benefited.
5 Building Awareness on 8.20 4.00 2.84 7.15 3.60 (a) Interactive
Intellectual Property Rights (a) Interactive with
for MSMEs Seminars/ International
workshops-7 Agency-1
(b) Awareness/ (b)Seminars/
Sensitisation workshops 21
programmes-36 (c)Awareness/
(c)Specialised Sensitisation
Training courses -3 programmes-
(d) IP Facilitation 51
Centre-13 (d) IP Advisory
Office /
Facilitation
Cells- 04
(e) 03 short
specilised
training
courses.
MSME
Sub Total 11.00 6.80 4.42 10.00 6.25
Sr. 2009-10 2010-11
MSME
No.

2009-10 2009-10 Exp. 2009-10 2010-11 2010-11 Progress
2009-10 up to
Dec.2010
VI Upgradation of Data Base
(a) Collection of Statistics 9.63 9.58 9.32 - 8.06 8.16
(b) Quinquennial Census 7.87 6.35 5.04 2.34 2.80
(c) Computerisation of DICs 2.50 1.60 0.00 6.60 9.91
Sub Total 20.00 17.53 14.36 17.00 20.87
VII NAFUS (National Fund for 1.00 0.00 0.00 1.00 0.00
Unorganised Sector)
Special Scheme for MSME 0.00 0.00 0.00 1.00 1.00
(New Initiative)
VIII CAPITAL OUTLAY
Construction of Office 6.00 6.00 1.44 -. 8.00 8.00
Accommodation
Grand Total 540.00 493.56 457.10 705.00 705.00
Grand Total 1794.00 1517.76 1392.26 2400.00 2390.02
for
309
M/o MSME
Annexure-I Contd.
2010-11
Annual Report
Annexure-II
ANNEXURE-II
PLAN ALLOCATION AND EXPENDITURE DURING 2008-09, 2009-10

AND 2010-11
(Rs. in crore)
Items 2008-09 2009-10 2010-11*
A. SSI DIVISION (NSIC, EDCs)
BE 50.00 50.00 110.00
RE 48.76 60.00 103.96
EXPENDITURE 45.89 57.37 80.60*
B. ARI DIVISION (KVIC, COIR BOARD, MGIRI & SFURTI)
BE 1204.00 1204.00 1585.00

Annual Report
RE 1172.50 964.20 1581.06
2010-11
EXPENDITURE 1172.49 877.79 1052.62*
C. O/o. DC (MSME)
BE 540.00 540.00 705.00
RE 503.74 493.56 705.00
EXPENDITURE 439.67 457.10 505.14*
TOTAL BE 1794.00 1794.00 2400.00
TOTAL RE 1725.00 1517.76 2390.02
TOTAL 1658.05 1392.26 1638.36*

EXPENDITURE
*up to December, 2010
310 MSME
Annexure-III
Annexure-III
STATE-WISE DETAILS: UNITS ASSISTED, MARGIN MONEY UTILISED

AND ESTIMATED EMPLOYMENT GENERATION DURING 2010-11
(UP TO DECEMBER 2010) UNDER PMEGP
Sr. State/UT Number of Margin Money Estimated

No. units assisted subsidy Empl.
utilised opportunities
(Rs. lakh) (No. of
persons)
1 Chandigarh 8 3.23 34
2 Delhi 85 62.05 210
3 Haryana 615 1205.42 4727
4 Himachal 424 578.77 2064
Pradesh Annual Report
5 J&K 956 1730.00 7903 2010-11
6 Punjab 602 1016.27 5015

7 Rajasthan . 1121 2498.54 13200
8 A & N Islands 71 44.86 249
9 Bihar 873 1942.23 5977
10 Jharkhand 772 1011.24 7720
11 Orissa 618 1188.56 7840
12 West Bengal 3768 4762.51 30144
13 Andhra Pradesh. 1303 4016.19 27083
14 Karnataka 976 2686.72 9760
15 Kerala 1051 1907.20 10510
16 Lakshadweep 10 8.20 200
17 Puducherry 76 18.04 213
MSME 311
Annexure-III Contd.
18 Tamil Nadu 1701 3255.95 15240

19 Goa 47 85.33 620
20 Gujarat 1326 2977.69 12595
21 Maharashtra 3513 4411.11 23713
22 Chattisgarh 877 1913.63 5429
23 Madhya Pradesh 974 2266.51 9753
24 Uttarakhand 634 738.71 4508
25 Uttar Pradesh 3482 9844.40 34597
26 Arunachal 100 83.46 1000
Pradesh
27 Assam 382 318.31 2410
28 Manipur - - -
Annual Report
29 Meghalaya 68 161.29 415
2010-11
30 Mizoram 145 219.41 1450
31 Nagaland 150 357.26 1479
32 Tripura 108 154.93 301
33 Sikkim 35 80.83 134
Total 26871 51548.85 246133
Note: Figures of Dadra & Nagar Haveli and Daman & Diu have been included in the figures of
Gujarat and Maharashtra,
respectively.
312 MSME
ANNEXURE IV (a)
MSME
SUMMARY RESULTS OF FOURTH ALL-INDIA CENSUS OF MICRO, SMALL & MEDIUM ENTERPRISES WITH
REFERENCE YEAR OF 2006-07
ALL-INDIA
Parameters Distribution Percentage distribution
Regd. Unregd. Total Regd. Unregd. Total
1. Total number of
working enterprises
Manufacturing 1035102 6418294 7453396 66.67% 26.15% 28.56%
Services 517390 18130011 18647401 33.33% 73.85% 71.44%
Total 1552492 24548305 26100797 100.00% 100.00% 100.00%
2. Number of rural 704551 12808326 13512877 45.38% 52.18% 51.77%
enterprises
3. Number of woman 215036 1704938 1919974 13.85% 6.95% 7.36%
enterprises
4. Number of 156753 N. A. 156753 10.10% N. A. N. A.
enterprises managed
by woman
5. Number of 1482847 23521525 25004372 95.51% 95.82% 95.80%
enterprises running
313
perennially
6. Employment (Person)
2010-11
Annual Report
2010-11
Annual Report
314
Manufacturing 7984321 22422264 30406585 86.75% 44.62% 51.14%
Services 1219343 27834775 29054118 13.25% 55.38% 48.86%
Annexure-IV Contd.
Total 9203664 50257039 59460703 100.00% 100.00% 100.00%

7. Employment by male
and female
Male 7339372 41275333 48614705 79.74% 82.13% 81.76%
Female 1864292 8981706 10845998 20.26% 17.87% 18.24%
Total 9203664 50257039 59460703 100.00% 100.00% 100.00%
8. Enterprises by type of
social category
SC 119949 1937993 2057942 7.73% 7.89% 7.88%
ST 46983 781844 828827 3.03% 3.18% 3.18%
OBC 600810 9895898 10496708 38.70% 40.31% 40.22%
Others 784750 10672725 11457475 50.55% 43.48% 43.90%
Societies 0 938628 938628 0.00% 3.82% 3.60%
Not Responded 0 321217 321217 0.00% 1.31% 1.23%
Total 1552492 24548305 26100797 100.00% 100.00% 100.00%
9. Enterprises by type of
organization
MSME
MSME
Proprietary 1421548 23240914 24662462 91.57% 94.67% 94.49%
Partnership 63283 115207 178490 4.08% 0.47% 0.68%
Private Company 30102 106743 136845 1.94% 0.43% 0.52%
Public Ltd. Company 7346 66074 73420 0.47% 0.27% 0.28%
Co-operatives 4583 128945 133528 0.30% 0.53% 0.51%
Others 25630 890422 916052 1.65% 3.63% 3.51%
Total 1552492 24548305 26100797 100.00% 100.00% 100.00%
10 Enterprises by main
source of power
No power needed 383846 18195815 18579661 24.72% 74.12% 71.18%
Coal 24571 603535 628106 1.58% 2.46% 2.41%
Oil 54012 589403 643415 3.48% 2.40% 2.47%
LPG/CNG 6550 377851 384401 0.42% 1.54% 1.47%
Electricity 1031407 2814113 3845520 66.44% 11.46% 14.73%
Others 52106 1967588 2019694 3.36% 8.02% 7.74%
Total 1552492 24548305 26100797 100.00% 100.00% 100.00%
11. Enterprises by source
315
of finance
Annexure-IV Contd.
2010-11
Annual Report
2010-11
Annual Report
316
No Finance/Self 1362568 22850626 24213194 87.77% 93.08% 92.77%
Finance
Finance through 174060 1177212 1351272 11.21% 4.80% 5.18%
Annexure-IV Contd.
Institutional Sources
Finance through Non- 15864 520467 536331 1.02% 2.12% 2.05%
Institutional Sources
Total 1552492 24548305 26100797 100.00% 100.00% 100.00%
MSME
Annexure-IV Contd.
Characteristics Registered % Share

Annexure IV(a) – Contd…
REGISTERED MSME SECTOR

ALL-INDIA
1 Number of working enterprises 1552492 70.19%
Number of enterprises found permanently
closed 480946 21.74%
Number of enterprises found non-traceable 178522 8.07%
Total Number of enterprises surveyed 2211960 100%
2 Number of Working Enterprises
Manufacturing 1035102 66.67%
Services 517390 33.33% Annual Report
2010-11
Total 1552492 100%
3 Employment (Person)
Manufacturing 7984321 86.75%
Services 1219343 13.25%
Total 9203664 100%
4 Per unit employment (Person)
Manufacturing 7.71
Services 2.36
Total 5.93
Original value of Plant & Machinery/
5 Equipment (Rs. Crore)
Manufacturing 110310.31 90.94%
Services 10987.97 9.06%
MSME 317
Annexure-IV Contd.

Total 121298.28 100%
6 Per unit original value of Plant & Machinery/Equipment (Rs. Lakh)
Manufacturing 10.66
Services 2.12
Total 7.81
7 Market value of Fixed Investment (Rs. Crore)
Services 60264.68 12.03%
Total 500758.36 100%
Per unit market value of Fixed Investment
8 (Rs. Lakh)
Manufacturing 42.56
Annual Report
2010-11 Services 11.65
Total 32.26
9 Value of Net Worth (Rs. Crore)
Services 30996.47 6.94%
Total 446551.22 100%
10 Per unit value of Net Worth (Rs. Lakh)
Manufacturing 40.15
Services 5.99
Total 28.76
11 Total Gross Output (Rs. Crore)
Services 40531.00 5.71%
Total 709397.63 100%
318 MSME
Annexure-IV Contd.
12 Per unit Gross Output (Rs. Lakh)

Manufacturing 64.62
Services 7.83
Total 45.69
Number of units taken loan from Institutional
13 Sources or Others 185378
14 Amount of loan taken (Rs. Crore) 66125.47
15 Number of units having loan Outstanding 108238
16 Amount of loan Outstanding (Rs. Crore) 43606.11
Annual Report
2010-11
MSME 319
2010-11
Annual Report
Annexure IV(b)
INDUSTRY SECTOR-WISE (AT 2-DIGIT LEVEL OF NIC-2004) DISTRIBUTION OF MICRO, SMALL AND
320
MEDIUM ENTERPRISES AS PER FOURTH ALL INDIA CENSUS 2006-07
SL. NIC DESCRIPTION OF ACTIVITIES NO. OF ENTERPRISES EMPLOYMENT
Annexure-IV Contd.
NO. CODE REGD UNREGD TOTAL REGD UNREGD TOTAL
SERVICE ACTIVITIES RELATED TO

1 01 AGRICULTURE AND HUNTING 11871 34933 46804 214962 0 214962
SERVICE ACTIVITIES RELATED TO

2 02 FORESTRY, LOGGING 1025 15751 16776 8554 0 8554
SERVICE ACTIVITIES INCIDENTAL TO

3 05 FISHING 124 3826 3950 1319 0 1319
SERVICE ACTIVITIES INCIDENTAL TO

4 10 MINING 71 23 94 962 0 962
SERVICE ACTIVITIES INCIDENTIAL TO

5 11 EXTRACTION OF OIL AND GAS 42 3847 3889 605 11189 11794
6 13 MINING OF METAL ORES 464 2861 3325 6893 9154 16047
7 14 OTHER MINING AND QUARRYING 12943 8866 21809 124598 63252 187850
8 15 FOOD PRODUCTS & BEVERAGES 212559 1317070 1529629 1255412 2588948 3844360
MSME
MSME
9 16 TOBACCO PRODUCTS 4461 923693 928154 168221 1852146 2020367
10 17 TEXTILES 106616 939018 1045634 1064230 2862348 3926578
11 18 WEARING APPAREL 214861 1092501 1307362 911539 1830196 2741735
LEATHER PRODUCTS(FOOTWEAR,LUG
12 19 GAGE,HANDBAGS, ETC.) 26741 62549 89290 165153 174311 339464
13 20 WOOD AND WOOD PRODUCTS 53939 494471 548410 217677 1027039 1244716
14 21 PAPER AND PAPER PRODUCTS 12888 20111 32999 144622 44120 188742
PUBLISHING, PRINTING AND

15 22 REPRODUCTION OF RECORDED MEDIA 40464 102649 143113 208265 305752 514017
COKE AND REFINED PETROLEUM

16 23 PRODUCTS 2166 3016 5182 30048 26079 56127
CHEMICALS AND CHEMICAL

17 24 PRODUCTS 50065 89687 139752 489738 225042 714780
18 25 RUBBER AND PLASTIC PRODUCTS 35894 25212 61106 293879 129517 423396
19 26 NON-METTALIC MINERAL PRODUCTS 56692 220060 276752 577778 822380 1400158
321
20 27 BASIC METALS 19274 55610 74884 315125 178757 493882
Annexure-IV Contd.
2010-11
Annual Report
2010-11
Annual Report
322
21 28 FABRICATED METAL PRODUCTS 137957 181766 319723 738821 356519 1095340
22 29 MACHINERY AND EQUIPMENTS 72400 49845 122245 507253 108752 616005
Annexure-IV Contd.
OFFICE, ACCOUNTING AND

23 30 COMPUTING MACHINERY 4750 1909 6659 26538 16795 43333
ELECTRICAL MACHINERY AND
24 31 APPARATUS N.E.C. 34326 43030 77356 172738 144701 317439
RADIO, TV AND COMMUNICATION
25 32 EQUIPMENT AND APPARATUS 8784 25987 34771 59637 61134 120771
MEDICAL, PRECISION, OPTICAL
26 33 INSTRUMENTS, WATCHES & CLOCKS 10488 10004 20492 89468 29466 118934
MOTOR VEHICLES, TRAILERS & SEMI-
27 34 TRAILERS 5773 9391 15164 69913 114190 184103
28 35 OTHER TRANSPORT EQUIPMENT 15579 5877 21456 179377 20159 199536
29 36 FURNITURE 99920 565569 665489 361710 1478822 1840532
30 37 RECYCLING 183 15502 15685 1534 42246 43780
ELECTRICITY, GAS, STEAM AND HOT
31 40 WATER SUPPLY 645 15362 16007 4579 92219 96798
MSME
MSME
COLLECTION, PURIFICATION AND
32 41 DISTRIBUTION OF WATER 101 11358 11459 361 31856 32217
33 45 CONSTRUCTION 184 53904 54088 1005 121203 122208
REPAIR & MAINTENANCE OF MOTOR
VEHICLES & MOTORCYCLES, SALE OF
34 50 AUTOMOTIVE FUELS 58021 609843 667864 169705 1563655 1733360
WHOLESALE TRADE AND
35 51 COMMISSION TRADE 1255 655973 657228 5369 1772013 1777382
REPAIR & MAINTENANCE OF
PERSONAL AND HOUSEHOLD GOODS
36 52 AND RETAIL TRADE 141050 11968341 12109391 259934 20625218 20885152
37 55 HOTELS AND RESTAURANTS 1256 1322994 1324250 7116 3378098 3385214
SUPPORTING AND AUXILLIARY
TRANSPORT ACTIVITIES, TRAVEL
38 63 AGENCIES 2709 149174 151883 29117 459283 477049
39 64 POST AND TELECOMMUNICATIONS 17127 610214 627341 40746 1022714 1063460
40 70 REAL ESTATE ACTIVITIES 312 54284 54596 1324 119530 120854
323
Annexure-IV Contd.
2010-11
Annual Report
2010-11
Annual Report
Annexure IV(b) – Contd…
324
RENTING OF MACHINERY AND
Annexure-IV Contd.
EQUIPMENT WITHOUT OPERATOR AND

41 71 HOUSEHOLD GOODS 458 265671 266129 1273 526531 527804
42 72 COMPUTER AND RELATED ACTIVITIES 21357 41752 63109 78349 268817 347166
43 73 RESEARCH AND DEVELOPMENT 4 1450 1454 105 9109 9214
44 74 OTHER BUSINESS ACTIVITIES 25855 421327 447182 82371 1138399 1220770
45 80 EDUCATION 801 213418 214219 2545 580745 583290
HEALTH AND SOCIAL WELFARE
46 85 ACTIVITIES 1371 569017 570388 4425 1597303 1601728
SEWAGE AND REFUSE DISPOSAL,
47 90 SANITATION AND SIMILAR ACTIVITIES 34 0 34 286 0 286
RECREATIONAL, CULTURAL AND
48 92 SPORTING ACTIVITIES 2560 161523 164083 6844 491002 497846
49 93 OTHER SERVICE ACTIVITIES 8622 1092632 1101254 22048 1936330 1958378
50 99 NOT REPORTED 15449 5440 20889 79593 0 79593
TOTAL 1552491 24548311 26100802 9203664 50257039 59449352
MSME
Annexure-V
ANNEXURE V
LIST OF ITEMS RESERVED FOR EXCLUSIVE MANUFACTURE BY MICRO AND
SMALL ENTERPRISE SECTOR
(Last revised on 30 July, 2010)
S. S.No. 20-21 FOOD AND ALLIED INDUSTRIES
No. (As per Product Name of the Product
Gazette Code
Notification)
20-21 FOOD AND ALLIED INDUSTRIES
1 3 202501 Pickles & chutneys
2 7 205101 Bread
3 11 21100102 Mustard Oil (except solvent extracted)
4 13 21100104 Ground nut oil (except solvent extracted)
27 WOOD AND WOOD PRODUCTS Annual Report
5 47 276001 Wooden furniture and fixtures 2010-11
28 PAPER PRODUCTS
6 79 285002 Exercise books and registers
OTHER CHEMICALS AND CHEMICAL
PRODUCTS
7 253 305301 Wax candles
8 308 314201 Laundry soap
9 313 317001 Safety matches
10 314 318401 Fire works
11 319 319902 Agarbatties
GLASS AND CERAMICS
12 335 321701 Glass bangles
33-35 MECHANICAL ENGG. EXCLUDING
TRANSPORT EQUIPMENT
13 364 340101 Steel almirah
MSME 325
Annexure-V Contd.
14 394 341004 Rolling shutters

15 402 34200602 Steel chairs-All types
16 404 34200702 Steel tables-All other types
17 409 342099 Steel furniture-All other types
18 428 343302 Padlocks
19 447A 345207 Stainless steel utensils
20 474 345202 Domestic utensils-Aluminium
Annual Report
2010-11
326 MSME
Annexure-VI
ANNEXURE VI
OUTSTANDING BANK CREDIT TO MICRO AND SMALL ENTERPRISES

(Rs. crore)
As on last Public Private Foreign All Percentage

reporting Sector Sector Banks Scheduled of MSE
Friday of Banks Banks Commercial Credit to
March Banks Net Bank
Credit
1 2 3 4 5 6
2005 67,800 8,592 6,907 83,498 8.8
2006 82,434 10,421 8,430 1,01,285 7.5
(21.6) (21.3) (22.1) (21.3)
2007 1,02,550 13,136 11,637 1,27,323 7.2
(24.4) (26.1) (38.0) (25.7)
Annual Report
2008 1,51,137 46,912 15,489 2,13,538 11.6
(47.4) (257.1) (33.1) (67.7) 2010-11
2009 1,91,408 46,656 18,063 2,56,127 11.3

(26.6) (0.0) (16.6) (19.9)
2010 2,78,398 64,534 21,080 3,64,012 13.4
(Provisional) (45.4) (38.3) (16.7) (42.1)
Source: Reserve Bank of India.
Note:
1. Figure in parentheses indicates year-on-year growth.
2. The high growth witnessed during 2008 is on account of re-classification of MSEs as
per MSMED Act, 2006. Firstly, the investment limit of small (manufacturing) was raised
from Rs.1 crore to Rs.5 crore and small (services) was added to include enterprises with
investment limit between Rs.10 lakh to Rs.2 crore. Secondly, the coverage of service
enterprises was broadened to include small road and water transport operators,
small business, professional and self-employed and all other service enterprises as per
definition provided under MSMED Act, 2006.
3. Vide circular RPC.CO.Plan.BC.24/04.09.01/2009-10 dated September 18, 2009, retail

trade (credit limit not exceeding Rs.20 lakh) has also been included under the ambit of
MSE Sector.
MSME 327
Annexure-VII
ANNEXURE-VII
MOST RECENT AND IMPORTANT AUDIT OBSERVATIONS (C&AG)
Report No. Observations Action Taken

Report No. The Ministry of Micro, Small and Medium After receiving the action
9 of 2010-11 Enterprises launched the Scheme of taken note on Para No. 10.1-
regarding Poor Integrated Infrastructural Development (IID C&AG Report No. 9 of 2010-
implementation Scheme) for small scale industries in rural/ 11, the reply has been sent
of the Scheme backward areas in 1993-94 for setting up to the Office of Principal
of Integrated of IID centres with suitable infrastructural Director of Audit, Economic
Infrasturcture facilites to promote clusters of small scale and Service Ministry, AGCR
Development and tiny units. The scheme was subsumed Building, New Delhi for
for Small Scale in the Micro Small Enterprises Cluster vetting before it is sent to
Industries Development Programme (MSE-CDP) from Department of Expenditure,
2007-08. The Ministry released an amount Ministry of Finance. Office
of Rs. 124.59 crore up to 2007-08 to various of Principal Director of Audit
Annual Report implementing agencies for 84 IID project has made some queries on
2010-11 with an estimated cost of Rs.400 crore. the action taken notes,
Audit reviewed the status of the which have been sent to
implementation of the scheme and found them. Accordingly, Office
that 42 out of 79 IID projects, which were of the DC (MSME) has asked
due for completion by January, 2008 the information from the
remained incomplete. Delays in completion concerned agencies. As soon
of projects ranged between one month as the same is received, it
and twelve years. Further, detailed field will be informed to Principal
level audit of 10 centres in Assam, Haryana, Director of Audit. Further, it
Madhya Pradesh, Orissa and Uttar Pradesh may be mentioned that as
revealed that many infrastructural facilites on date 68 IID projects have
at the centres were incomplete. Also, by been completed out of 79
creating large plots and allocating plots to IID projects which were due
large units, the small scale and tiny units, for completion by January,
which formed the target group for the 2008. Action is being taken
scheme, were deprived of its benefits. There for completion of these
were also instances of deficient financial projects.
management and inadequate monitoring.
328 MSME
Annexure-VII Contd.
Report No. Observations Action Taken

Para No. 7.1 The Commission did not assess its fund Budget demand for
of Report No. requirement and improperly retained House Building Loan was
23 of 2009-10 unutilized loan amount which resulted in submitted by KVIC based on
regarding Khadi avoidable interest payment of Rs. 30.03 lakh the trends of the earlier year.
and Village indicating deficient internal control system No additional or increase
Industries in fund management. in demand was requested
Commission by KVIC and same was
restricted to the extent of
availability of funds made
during the earlier year. The
demand for funds for House
Building Advances (HBA) has
declined from employees of
KVIC due to various reasons. Annual Report
KVIC has now refunded the 2010-11
unspent balance amount
for Rs. 1,68,77,400.72
under HBA Advance to the
Government vide their letter
dated 17.09.2009.
KVIC has been advised
separately to ensure that
unnecessary retention of
loans is avoided in future
through more accurate
budgeting exercise and
review the position at
regular intervals.
MSME 329
Annexure-VIII
ANNEXURE VIII
1. LIST OF CPIOs OF THE MINISTRY
Sl. Name, Name, Designation Subject Matter

No. Designation and and Telephone
Telephone of of Appellate
CPIO (S/Shri) Authority (S/Shri)
1. P.S. Verma, S.K. Goyal, Plan Schemes relating to Surveys,
Under Secretary Director Studies and Policy Research and
23061636 23063142 Policy relating to Entrepreneurship
Development Institutes (EDIs) and
Rajiv Gandhi Udyami Mitra Yojana
(RGUMY), Protocol and General
Adminstration
2. M.L. Sharma, A.K. Jha, Matters relating to the Public
Annual Report
Under Secretary Director Sector Undertaking the National
2010-11
23063293 23063198 Small Industries Corporation
Limited (NSIC), Coordination of
Plan of Budget of SME Division,
International Cooperation Scheme.
3. M.K. Mishra, Angshuman Dey All the matters relating to Agro
Under Secretary Deputy Secretary and Rural Industries like Khadi
23062573 23062745 & Village Industries and Prime
Minister’s Employment Generation
Programme (PMEGP) & Scheme of
Fund for Regeneration of Traditional
Industries (SFURTI).
4. Baldev Raj, P.P. Muralidharan Overall Coordination and matters
Research Officer Deputy Secretary which are not specifically pertaining
23063288 23061431 to any other PIO. Filing of various
reports with Central Information
Commission etc.
330 MSME
Annexure-VIII Contd.
Sl. Name, Name, Designation Subject Matter

No. Designation and and Telephone
Telephone of of Appellate
CPIO (S/Shri) Authority (S/Shri)
5. K.P. Singh P.P. Muralidharan Matters relating to Official
Assistant Director Deputy Secretary Language Act.
23062672 23061431
6. Anil Tehlan , V.K. Wadhwa, Matters relating to Coir Industry.
Section Officer Deputy Secretary
23062736
7. Smt. Rita Sharma, P.P. Muralidharan Matters relating to Vigilance
23061431
8. D.K. Thakur P.P. Muralidharan Matters relating to administration
Section Officer Deputy Secretary and establishment of the Ministry
Annual Report
23062210 23061431 of MSME
2010-11
9. Bhola Ram P.P. Muralidharan Matters relating to Cash Section
23061431
MSME 331
2. LIST OF NODAL CPIOs OF THE MINISTRY’s ORGANISATIONS
Sl. Name, Name, Subject Matter

No. Designation and Designation
Telephone of CPIO and Telephone
(S/Shri) of Appellate
Authority (S/Shri)
1. Harish Anand M.P. Singh, Distribution of all the RTI

Director, Economic Adviser, applications related to Office of
Office of the DC Office of the the Development Commissioner
(MSME), DC(MSME), (MSME) among the concerned
Nirman Bhavan, Nirman Bhavan, CPIOs. The subject-wise list of
New Delhi. New Delhi. CPIOs are available on website
011-23062219 011-23061277 www.dcmsme.gov.in
2. A.K. Aggarwal Ravindra Nath Distribution of all the RTI

Annual Report General Manager, Director (Finance) applications related to the National
2010-11 NSIC Limited, NSIC Limited, Small Industries Corporation
NSIC Bhavan, NSIC Bhavan, Limited among the concerned
Okhla Industrial Okhla Industrial CPIOs. The subject-wise list of CPIOs
Estate, Estate, are available on website www.nsic.
New Delhi-110020 New Delhi-110020 co.in
011-26910910 011-26319452
3. Mukesh Kumar Vinod Gupta, All the matters related to NIESBUD.

Gupta, Director, The details of CPIOs are available
Admn. Officer, National on website www.niesbud.nic.in,
National Institute for www.niesbud.org
Entrepreneurship and Small Business
and Small Business Development
Development (NIESBUD), A-23-
(NIESBUD), A-23- 24, Sector-62,
24, Sector-62, Institutional Area,
Institutional Area, Phase-II, NOIDA-
Phase-II, NOIDA- 201301, Uttar
201301, Uttar Pradesh
Pradesh 0120-2403054
0120-2403054
332 MSME

Authority (S/Shri)
4. N. Muralia Kishore, All the matters related to NIMSME.

Librarian and Asstt. The details of CPIOs are available
Registrar, on website www.nimsme.org
National Institute
for Micro, Small
and Medium
Enterprises (NI-
MSME), Yousuf
Gauda, Hyderabad
– 500 045
5. Bakul Sarma, K. Ahmed, All the matters related to IIE. Annual Report
Admn. Officer, Director The details of CPIOs available on 2010-11
Indian Institute of Indian Institute of website www.iie.nic.in
Entrepreneurship Entrepreneurship
(IIE), 37, NH Bypass, (IIE), 37, NH Bypass,
Lalmati, Basistha Lalmati, Basistha
Chariali, Guwahati- Chariali, Guwahati
781 029, Assam – 781 029, Assam
6. G. Hussain, L.G. Israni Distribution of all the RTI

Director, Director (Admn.), applications related to Khadi and
KVIC, KVIC, Village Industries Commission
3 Irla Road, 3 Irla Road, among the concerned CPIOs. The
Ville Parle (West), Ville Parle (West), subject-wise list of CPIOs is available
Mumbai Mumbai on website www.kvic.org.in
022-26703470 Ext. 022-26714267
317
MSME 333

Authority (S/Shri)
7. P.C. Antonel Vaz, M. Kumara Raja, All the matters related to Coir Board.
Joint Director, Secretary, The details of CPIOs are available
Coir Board, Coir Board, on website www.coirboard.gov.in
Coir House, Coir House,
M.G. Road, M.G. Road,
Kochi-682016 Kochi-682016
0484-2373327 0484-2372676
8. R.R. Gajabhiya, Dr. T. Karunakarn, All the matters related to MGIRI.

Mahatama Gandhi Director, The details of CPIOs are available
Institute for Rural Mahatama Gandhi on website www.mgiri.org
Annual Report Industrialisation, Institute for Rural
2010-11 Maganwadi, Industrialisation,
Wardha-442001 Maganwadi,
07152-253512 Wardha-442001
07152-253512
334 MSME
Annexure-IX
ANNEXURE-IX
CONTACT ADDRESSES
S. Name and Website E-mail Telephone Fax

No. Address of the
organisation
1 Ministry of www.msme.gov.in min-msme@nic.in 011- 011-

Micro, Small 23063800 23062315
and Medium 23063802-06 23061726
Enterprises, 23061068
Udyog Bhavan,
New Delhi – 110
107
2 Office of www.dcmsme.gov.in; dc-msme@nic.in 011- 011-

Annual Report
Development www.laghu-udyog.com; 23063800 23062315
2010-11
Commissioner www.smallindustry.com 23063802-06 23061726
(MSME), 7th 23061068
Floor, A-Wing,
Nirman Bhavan,
New Delhi – 110
108
3 Khadi and www.kvic.org.in kvichq@bom3.vsnl.net.in, 022- 022-

Village Industries ditkvic@bom3.vsnl.net.in, 26714320-25/ 26711003
Commission, dit@kvic.gov.in 26716323/
(KVIC), 26712324/
“Gramodaya” 26713527-9/
3, Irla Road, 26711073/
Vile Parle 26713675
(West), Mumbai
- 400056,
Maharashtra
MSME 335
Annexure-IX Contd.

No. Address of the
organisation
4 Coir Board, “Coir www.coirboard.nic.in, coir@md2.vsnl.net.in, 0484- 0484-

House”, M.G. www.coirboard.gov.in coirboard@vsnl.com 2351807, 2370034
Road, Ernakulam, 2351788,
Kochi-682016, 2351954,
Kerala 2354397
5 National Small www.nsic.co.in info@nsic.co.in, pro@ 011- 011-

Industries nsic.co.in 26926275 26932075
Corporation 26910910 26311109
Limited (NSIC), 26926370
NSIC Bhawan,
Okhla Industrial Toll Free
Estate, New Delhi 1-800-111955
– 110 020
Annual Report 6 National www.niesbud.nic.in info.niesbud@nic.in, 0120- 0120-
2010-11 Institute for www.niesbud.org rrsingh04@yahoo.com, 2403051-54 2403057
Entrepreneurship 2403062
and Small
Business
Development
(NIESBUD), A-23-
24, Sector-62,
Institutional Area,
Phase-II, NOIDA-
201301, Uttar
Pradesh
7 National Institute www.nimsme.org registrar@nimsme.org 040- 040-

for Micro, Small 23608544-46 23608547
and Medium 23608316-19 23608956
Enterprises 23541260
(NI-MSME),
Yousuf Gauda,
Hyderabad
– 500 045
336 MSME
Annexure-IX Contd.

No. Address of the
organisation
8 Indian Institute of www.iie.nic.in iieindia1@sancharnet.in, 0361- 0361-

Entrepreneurship iieindia1@bsnl.in 2302646 2300325
(IIE), 37, NH 2300994
Bypass, Lalmati, 2300123
Basistha Chariali, 2300840
Guwahati – 781
029, Assam
9 Mahatama www.mgiri.org director.mgiri@gmail.com 0752-253512 0752-

Gandhi Institute 240328
for Rural
Industrialisation,
Maganwadi, Annual Report
Wardha-442001 2010-11
MSME 337
Annexure-IX Contd.
CONTACT ADDRESSES OF AUTONOMOUS INSTITUTIONS

UNDER OFFICE OF THE DEVELOPMENT COMMISSIONER (MSME)

No. Address of the
Autonomous
Body
1. General www.igtr-aur.org gm@igtr-aur.org 0240- 0240-

Manager, 2480578 2484028
MSME-Tool -
Room 2486832
-
(Indo German 2482593
Tool Room), -
P-31, MIDC, 2470541
Chikalthana
Annual Report
Indl. Area,
2010-11
Aurangabad
431 006
2. General www.igtrahd.com gm@igtrahd.com 079- 079

Manager 25840964 -25841962
MSME-Tool marketing@igtrahd.
Room com 25840966
(Indo German
Tool Room)
Plot-5003,
Phase-IV,
GIDC Vatva
Mehmedabad
Road,
Ahmedabad
382 445
(Gujarat)
338 MSME
Annexure-IX Contd.

No. Address of the
Autonomous
Body
3. General www.igtr-indore.com indigtr@sancharnet. 0731- 0731-

Manager in 4210755 2720353
MSME-Tool 4210700,
igtrindore-mp@nic.in 4210704
Room
(Indo German
Tool Room)
Plot No.291/B,
302/A,
Sector-E,
Sanwer Road,
Industrial Area,
Indore 452 015
(MP)
4. General www.ctrludhiana.com info@ctrludhiana. 0161- 0161- Annual Report
Manager com 2670058 2674746
2010-11
MSME-Tool
Room
centool@jla.vsnl. -2676166
net.in
(Central Tool
Room)
A-5, Focal Point
Ludhiana 141
010 (Punjab)
5. Principal www.citdindia.org hyd1_citdhyd@ 040- 040-
Director sancharnet.in 23772747- 23772658
MSME-Tool 48
Room
(Central
Institute of Tool
Design)
A-1 to A-8 APIE,
Balanagar
Hyderabad 500
037 (A.P.)
MSME 339
Annexure-IX Contd.

No. Address of the
Autonomous
Body
6. General www.msmetoolroomkolkata.com msmetrkolkata@bsnl.in 033- 033-

Manager 25770576 25772494
MSME-Tool -
Room 25771492
-
(Central 25771068
Tool Room
& Training
Centre)
Bonhooghly
Indl. Area
Kolkata 700
108 (W.B.)
Annual Report
2010-11
7. General www.cttc.gov.in cttc@satyam.net.in 0674- 0674-
Manager 2742100 2743061
cttc@sify.com
MSME-Tool
Room -3011700
(Central
Tool Room
& Training
Centre)
B-36, Chandka
Indl. Area
P.O. Patia
Bhubaneswar
751 024
(Orissa)
340 MSME
Annexure-IX Contd.

No. Address of the
Autonomous
Body
8. General www.idtrjamshedpur. reach@idtrjamshedpur. 0657- 0657-

Manager com com 2201261-62 2202723
MSME-Tool
Room
(Indo Danish
Tool Room)
M-4 (Part)
Phase-VI,
Tata Kandra
Road,
Gamharia
Jamshedpur Annual Report
832 108 2010-11
(Jharkhand)
9. Project www.trtcguwahati.org trtc_ghy@rediffmail. 0361- 0361-

Manager com 2655542 2654042
MSME-Tool
Room -2654042
(Tool Room
& Training
Centre)
Amingaon
Industrial
Area, North
Guwahati
Road,
Amingaon,
Guwahati 781
031
MSME 341
Annexure-IX Contd.

No. Address of the
Autonomous
Body
10. Principal www.ciht.in institute_jld@ 0181- 0181-

Director dataone.in 2290225-26 2290457
MSME-Tool
Room
bathla_ashok@ -2290196
yahoo.com
(Central
Institute of
Hand Tools)
G.T. Road,
Bye Pass,
Jalandhar-
144008
(Punjab)
Annual Report
11. Principal www.idemi.org info@idemi.org 022 022-
2010-11
Director www.msmetdcmumbai. -24056239 24050016
MSME-Tech.
org idemi@mtnl.net.in - 24050301-
Development 04
Centre
(Institute
for Design
of Electrical
Measuring
Instruments)
S.T. Tope Marg,
Chunabhatti
Sion,P.O.
Mumbai-400
022
342 MSME
Annexure-IX Contd.

No. Address of the
Autonomous
Body
12. Principal www.estcindia.com pd_estc@ 05947- 05947-

Director sancharnet.in 251201 251294
MSME-
Technology 251530
Development
Centre 255951
(Electronics
Service &
Training
Centre)
Kaniya, Annual Report
Ramnagar
2010-11
Dist. Nainital-
244715
Uttarakhand
13. Principal www.ppdcmeerut.com info@ppdcmeerut. 0121- 0121-

Director com 2511779 2404991
MSME-
Technology ppdcmeerut@yahoo.
Development co.in
Centre
(Process
cum Product
Development
Centre)
Sports Goods
Complex, Delhi
Road
Meerut-250002
(U.P.)
MSME 343
Annexure-IX Contd.

No. Address of the
Autonomous
Body
14. Principal www.ppdcagra.in info@ppdcagra.in 0562- 0562-

Director 2344006 2344381
arvindppdc@gmail.
MSME-
Technology
com 2344673
Development
Centre
(Process
and Product
Development
Centre)
Annual Report
Foundry Nagar,
2010-11 Agra-282006
(U.P.)
15. Director www.cftiagra.org.in info@cftiagra.org.in 0562 0562-

MSME- -2642004-05 2640502
Technology 2642004
Development
Centre
(Central
Footwear
Training
Institute)
C – 41& 42, Site
‘C’
Sikandra,
Industrial Area
Agra-282007
(U.P.)
344 MSME
Annexure-IX Contd.

No. Address of the
Autonomous
Body
16. Director www.cftichennai.in cfti_chennai@vsnl. 044- 044-

MSME-
net 22501529 22500876
cfti@vsnl.net
Technology
Development
Centre
(Central
Footwear
Training
Institute )
65/1, G.S.T.
Road, Guindy Annual Report
Chennai- 2010-11
600032
17. Principal www.ffdcindia.org ffdcknj@sancharnet.in 05694- 05694-

Director 234465 235242
MSME-
Technology -234791
Development
Centre
(Fragrance
& Flavour
Development
Centre),
Industrial
Estate
GT Road, P.O.
Makrand Nagar
Kannauj
-209726 (U.P.)
MSME 345
Annexure-IX Contd.

No. Address of the
Autonomous
Body
18. Principal www.cdgiindia.com cdgifzbd@gmail.com 05612- 05612-

Director 232293 232447
contact@cdgiindia.
MSME-
com
Technology
Development
Centre
(Centre for the
Development
of Glass
Industry),
A-1/1,
Annual Report
Industrial Area,
2010-11
Jalesar
Road, P.O.
Muiddinpur
Firozabad-
283203 (U.P.)
346 MSME
Annexure-X
ANNEXURE-X
Definition of Micro, Small and Medium Enterprises in India
Micro, small and medium enterprises as per MSMED Act, 2006 are defined
based on their investment in plant and machinery (for manufacturing
enterprise) and on equipment for enterprises providing or rendering services.
The defined limit on investment for enterprises to be classified as micro,
small and medium enterprises is as follows:
Classification Manufacturing Enterprises* Service Enterprises**
Micro Rs. 2.5 million / Rs. 25 lakh Rs. 1 million / Rs. 10 lakh
Small Rs.50 million / Rs. 5 crore Rs. 20 million / Rs 2 crore
Medium Rs 100 million / Rs 10 crore Rs. 50 million / Rs 5 crore
* Investment limit in Plant & Machinery ** Investment limit in equipment

Annual Report
The term “village industries” has been redefined in amended KVIC, Act, 1956 2010-11
as “any industry located in a rural area which produces any goods 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”.
MSME 347
Annual Report
2010-11
348 MSME
C
k
ANNUAL REPORT
2010-11


GOVERNMENT OF INDIA
y
M
C
k
ANNUAL REPORT
2010-11

GOVERNMENT OF INDIA
M
y
Designed and Printed at :
CHANDU PRESS
A Complete House of Designing and Printing
Office : D-97 Shakarpur, Delhi-110 092
Factory : 63, Patparganj Industrial Estate, Delhi-110 092
Telefax : 22424396, 22526936
Mobile : 9810519841, 9313372130
E-mail : chandupress@gmail.com

Report English

Uploaded by

Copyright:

Available Formats

You might also like

Report English

Uploaded by

Document Information

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

Report English

Uploaded by

Copyright:

Available Formats

C

Annual Report 2010-11

MICRO, SMALL & MEDIUM ENTERPRISES

Annual Report 2010-11

Printed at Chandu Press Ph: 22526936

2. (a) Growth and Performance of Micro, Small & Medium Enterprises 11

4. Role and Functions of Office of the Development Commissioner 65

5. Khadi and Village Industries Commission (KVIC) 109

6. Mahatma Gandhi Institute for Rural Industrialisation (MGIRI) 131

7. Coir Board 137

9. Training, Entrepreneurship Development and Other Schemes of 171

10. Prime Minister’s Employment Generation Programme (PMEGP) 199

11. International Co-operation 209

12. Activities in the North Eastern Region 229

13. Activities and Programmes for Women 247

14. Use of Official Language 253

15. Vigilance Activities 263

16. Citizen Charter, Right to Information (RTI) Act, Performance 269

I Statement showing BE, RE, Expenditure and Achievements 277

II Statement showing Plan Allocation and Expenditure during 310

III State-wise performance under Prime Minister’s Employment 311

IV Data on Census 313

V List of items reserved for SSI 325

VII Most Recent and Important Audit Observations (C&AG) 328

IX Contact Addresses 335

X Definition of Micro, Small and Medium Enterprises in India 347

ARI Agro-Rural Industries

CCEA Cabinet Committee on Economic Affairs

CCRI Central Coir Research Institute

CFTI Central Footwear Training Institute

CICT Central Institute of Coir Technology

CGTMSE Credit Guarantee Trust for Micro and Small Enterprises

CLCSS Credit Linked Capital Subsidy Scheme

CPIO Central Public Information Officer

DIs Development Institutes

EDP Entrepreneurship Development Programme

ESDP Entrepreneurship-cum-Skill Development Programme

FFDC Fragrance and Flavour Development Centre

FTS Field Testing Station

GoI Government of India

ICT Information and Communication Technology

IIE Indian Institute of Entrepreneurship

IPFC Intellectual Property Facilitation Centre

IPR Intellectual Property Rights

KVIC Khadi and Village Industries Commission

MGIRI Mahatma Gandhi Institute for Rural Industrialisation

M/o MSME Ministry of Micro, Small and Medium Enterprises

MSE Micro and Small Enterprises

MSE-CDP Micro and Small Enterprises – Cluster Development Programme

MSME Micro, Small and Medium Enterprises

MSMED Act Micro, Small and Medium Enterprises Development Act

MSME-DI Micro, Small and Medium Enterprises Development Institute

MSME-TC Micro, Small and Medium Enterprises Testing Centres

MSME-TS Micro, Small and Medium Enterprises Testing Stations

MSME-TR Micro, Small and Medium Enterprises Tool Room

MSME-TI Micro, Small and Medium Enterprises Training Institute

NB MSME National Board for Micro, Small and Medium Enterprises

NER North-Eastern Region

NIESBUD National Institute for Entrepreneurship and Small Business