Dr.E.BHASKARAN. B.E, M.B.A, Ph.D.,

• Economic and Social Development of the
• Nursery for entrepreneurship, often driven by the
  individual creativity and innovation
• 8 per cent of the country’s GDP.
• 45 per cent of the manufactured output.
• 40 per cent of our exports.
• Labour and capital ratio is higher than in the
  larger industries

              MSME SECTOR
• As per 4th All-India Census of MSMEs, the number of
  enterprises is estimated to be about 26 million
• 1.5 million are in the registered segment while the
  remaining 24.5 million (94%) are in the unregistered
• Employment to an estimated 60 million persons
• 55% of these enterprises are in 6 States, namely, Uttar
  Pradesh, Maharashtra, Tamil Nadu, West Bengal,
  Andhra Pradesh and Karnataka
• 7% of MSMEs are owned by women
• 94% of the MSMEs are proprietorships or partnerships

              MSME SECTOR
•   Manufacture over 6,000 products
•   Food products (18.97%),
•   Textiles and readymade garments (14.05%)
•   Basic metal (8.81%),
•   Chemical and chemical products (7.55%),
•   Metal products (7.52%),
•   Machinery and equipments (6.35%),
•   Transport equipments (4.5%),
•   Rubber and plastic products (3.9%),
•   Furniture (2.62%),
•   Paper and paper products (2.03%) and
•   Leather and leather products (1.98%)

           MSME SECTOR
• Due to role in the economic and social
  development of the country, the
  Government has emphasized on its
  growth and development
• It has taken various measures/initiatives
  from time to time which have facilitated the
  sector’s ubiquitous growth.
• Micro, Small and Medium Enterprises
  Development Act, 2006.

           MSME SECTOR
• Amendments to the Khadi and Village Industries
  Commission Act.
• Announcement of a Package for Promotion of
  Micro and Small Enterprises (MSEs),
• Launching of new / innovative schemes under
  National Manufacturing Competitiveness
  Programme (NMCP),
• launching of Prime Minister’s Employment
  Generation Programme (PMEGP) to generate
  employment opportunities

  Manufacturing Enterprises
• Investment limit in Plant & Machinery
• Micro - Rs. 2.5 million / Rs. 25 lakh (US$
• Small - Rs.50 million / Rs. 5 crore (US$ 1
• Medium - Rs 100 million / Rs 10 crore
  (US$ 2 million)
• Rs 50 = 1 US$
       Service Enterprises
• Investment limit in equipment
• Micro - Rs. 1 million / Rs. 10 lakh (US$
• Small - Rs. 20 million / Rs 2 crore (US$
  0.4 million)
• Medium - Rs. 50 million / Rs 5 crore (US$
  1 million)
• Rs 50 = 1 US$
    MSEs in Tamil Nadu
                                               Delayed Payment
 as per IV All India Census
                                              Direct Catalytic Subsidy
              Competitiveness of
                                                 Credit Flow

Total Units                        2,33,997
Manufacturing                      1,20,349     Infrastructure

Services                           1,13,648
Employment                     14,63,015
                                                Tech. Up-gradation
Fixed Investment            Rs.54428.99 cr
Production                  Rs.70546.42 cr       Single Window

                                                Skill Development 9
         Organisational setup of
Micro, Small and Medium Enterprises Dept.
•   The objective is to promote industries in general and MSMEs in particular in the State. The
    Dept. consists of

(i) Commissionerate      of Industries & Commerce:
    District Industries Centres offer Escort Assistance to Entrepreneurs through Single window
     Committee and also impart training programmes. It sanctions subsidies and incentives, issues
     Entrepreneur Memorandum Part-I & Part-II besides conducting Facilitation Councils for early
     recovery of dues.

(ii) Small Industries Development Corporation(SIDCO):

    Formation and upgradation of Industrial Estates, distribution of Raw Materials and rendering
     Marketing Assistance.

(iii) Tamilnadu Small Industries Corporation Ltd.,(TANSI):

    Produces different kinds of industrial products like Steel, Wooden Furniture, Machine Tools,
     Deep Well Pumps, Galvanized Power Transmission Towers, etc.,

(iv) Entrepreneur Development Institute (EDI):

    Imparts training to new entrepreneurs and prepares new Project Profiles.

• The      primary   objective   of     the
  Commissionerate is to promote industries
  in general and MSMEs in particular in the
• The Commissionerate is the nodal agency
  for planning     and implementation of
  various schemes for the development of
  Micro, Small and Medium Enterprises in
  the State.

The Commissionerate facilitates Micro, Small
& Medium Enterprises in the following areas

      1.Pre-Project Implementation

      2.Post-Project Implementation

      3.Industrial Co-operatives

      4.Channel to Govt. UTGs

  1.Pre - Project Implementation
• Identification & Motivation of Entrepreneurs
• Training To Entrepreneurs
• Acknowledging Entrepreneur Memorandum
  - Part I
• Single Window Clearance
• Providing Escort Assistance

    Identification & Motivation of

•   Techno-Economic Survey
•   Awareness Creation
•   Motivation & Guidance
•   Project Profiles

         Techno-Economic Survey

• District Industries Centres are
  functioning in all the districts headed by
  General Managers, supported by
  Functional Managers and Technical
• DICs coordinate with MSME-DI,
  Chennai to conduct Techno-Economic
  Survey of each District.

          Awareness Creation

 DICs are creating awareness on the
policies and programs of the State /
Central Governments, through Awareness
camps, Seminars and dissemination meets
in association with MSE Associations,
Financial Institutions, MSME-DI and other
development agencies.

            Motivation & Guidance

DICs provide guidance to entrepreneurs through
• Technical Information Centres.
• Data Bank & Information Centre for
  Electrical & Electronic Industries.
• Data Bank for Chemical Industries.
• District Export Promotion Cell attached to
  the District Industries Centres.

     Technical Information Centres
Technical Information Centres with
libraries have been set up at Guindy,
Ambattur, Madurai, Coimbatore, Trichy,
Salem and Tirunelveli.

  Data Bank for Chemical Industries
• This Data Bank is a part of Chemical
  Testing & Analytical Lab, Guindy.
• This lab has an excellent library with
  more than 6000 books and 25 journals .
• This Data Bank has prepared 173
  project profiles on selected chemical &
  allied industries so for.
• The project profiles are available for
  Rs.50/= each.

Data Bank & Information Centre for Electrical &
             Electronic Industries
•   This centre is functioning for the use of entrepreneurs This
    centre provides information & guidance to the needy
    entrepreneurs on electrical & electronic industries.
•   This centre prepares project profiles on selected projects.
•   A state wide directory of electronic units in the organised
    sector as well as electronic units in MSE sector have been
    prepared for the use of entrepreneurs.
•   This centre monitors the progress of electronic projects for
    speedy implementation of the scheme in the state.
•   A technical library with 1400 books and 100 journals are
    available with the Centre.

               District Export Promotion Cell
•   To promote exports, by motivating entrepreneurs, the District Export
    Promotion Cell have been formed in all the DICs
•   The District Export Promotion Cell provide information on the existing
    export activities, their potential for further exports and to provide
    necessary assistance on procedural matters for export.
•    The District Export Promotion Cell at the District level under the
    Chairmanship of the District Collector is also constituted to suggest
    and initiate measures for development of exports in the District.
•   The State Export Promotion Cell at the State Level under the
    chairmanship of Industries Commissioner and Director of Industries
    have been constituted to initiate measures for development of export in
    the State.
•   Export Promotion by way of distribution of awards to 100% Export Units
    and assistance in registration of 100% EOUs.

          Training To Entrepreneurs

•   Engineering, Tool & Die-Designing

• The "Prime Minister Employment Generation Progamme” is to
  generate employment opportunities in rural as well as urban areas of
  the Country through setting up of new self-employment ventures /
  projects / micro enterprises.
• The scheme covers educated unemployed persons in the age group
  of above 18 years (SC/ST/ OBC/ Minorities/ Women, ex-servicemen,
  physically handicapped,) with minimum VIII std. passed.
• Institutions registered under Societies Registration Act, 1980, SHGs,
  Production Cooperative Societies and Charitable Trusts
• Self employment loan upto Rs.25.00 lakh for manufacturing and Rs.10
  lakhs for service sector was available per candidate.
• Selected Candidates were given training EDP Training for 2-3 weeks.
• Under General Category Beneficiary contribution is 10% of the project
  cost and the rate of subsidy given is 15% for Urban and 25% for Rural
  areas and for others 5% contribution with 25% and 35% subsidy is

• The “Unemployment Youth Employment Generation Progamme” is to
  generate employment opportunities in rural as well as urban areas of
  the Country through setting up of new self-employment ventures /
  projects / micro enterprises.
• The scheme covers educated unemployed persons in the age group
  of above 18 years (SC/ST/ OBC/ Minorities/ Women, ex-servicemen,
  physically handicapped,) with minimum VIII std. passed.
• Institutions registered under Societies Registration Act, 1980, SHGs,
  Production Cooperative Societies and Charitable Trusts
• Self employment loan upto Rs.5.00 lakh for manufacturing sector,
  Rs.3 lakhs for service sector and Rs.1.00 lakh for Business Sector
  was available per candidate.
• Selected Candidates were given training EDP Training for 7 days.
• Under General Category Beneficiary contribution is 10% of the project
  cost and for others 5% contribution and the rate of subsidy given is

      Skill Development and Training.

• Objective is to bride the gap between the unemployed
  and skilled manpower requirements of the industries.
• To identify target groups through MSME Associations
  and provide them with skill development training in
  various sunrise sectors with employment linkage.
• Reimbursement up to 50% of the tuition fees of special
  short term courses run by the MSME associations for
  the benefit of the educated unemployed in collaboration
  with any reputed institution in the State.

    Rajiv Gandhi Udyami Mitra Yojana

• In order to obviate the difficulties faced by
  entrepreneurs to start their own ventures
  after EDP, SDP, ESDP/ VT, GOI, Created
  Udyami Mitras for establishment of First
  Generation New Enterprises in dealing
  with procedural and legal hurdles for
  setting up and running of MSMEs.
• UM-GOI, GOTN, Associations.
• For MSE- Service and Manufacturing.

    Engineering, Tool & Die-designing

• Govt. Technical Trg. Centre. Guindy
• Institute of Tool Engineering, Dindugul
• Institute of Ceramic Technology,
• Govt. Scientific Glass Trg. Centre, Guindy

     Govt. Technical Trg. Centre. Guindy

This centre was established during the second five year
plan to provide necessary skill for the workers to be
employed in the MSEs.
This centre conducts the following coursed

1.Diploma in Tool Engineering - 3 Years (30 candidates)

2. Diploma in Refrigeration   - 3 Years (40 candidates)
   & Air-conditioning

3. Post diploma in Die &      - 1 Year (10 Candidates)
    Tool Design

    Institute of Tool Engineering, Dindugul

•   This Institute was started in the year 1962.
•   This Institute conducts a 3 year diploma course in
    Tool Engineering.
•   Minimum qualification for admission is a pass in X
•   Diploma certificate is awarded by the State Board Of
    Technical Education and training
•   Annual intake is 30
•   This Institute also undertakes job work in Tool
    Servicing and Tool Making

      Institute of Ceramic Technology,

• This Institute imparts training for diploma in Ceramic
  Technology from 1964 onwards.
• 50 students are admitted every year
• Duration of the course is 3½ years
• Qualification for admission is a pass in X Std.
• This Institute is only one of its kind in TN.
• It has a well equipped Special Pilot Plant Lab
• It undertakes testing of ceramic raw materials and
  products recd. from ceramic units located in and
  around Virudhachalam

  Govt. Scientific Glass Training Centre,
• This centre imparts practical training to students in the
  manufacture of scientific glass apparatus
• Duration of the training course is 2 years.
• 25 students are trained every year.
• Trainees are paid a monthly stipend of Rs.120 per
• The students after completion of training get jobs easily
  in scientific glass manufacturing units. Some of them
  have started their own units also .

        Acknowledging of Entrepreneurs
             Memorandum (Part I)

• Any person who intends to establish a Micro or Small
  Enterprise or a Medium Enterprise engaged in providing
  or rendering of services may, at his discretion or a
  Medium Enterprise engaged in the manufacture or
  production of goods shall file the Memorandum of Micro,
  Small or Medium Enterprise as the case may be, with the
  District Industries Centres or with the Office of the
  Regional Joint Director of Industries & Commerce in
  respect of Chennai.
• The Entrepreneurs Memorandum (Part I) can also be
  filed on-line through internet by logging into the web-site

• The entrepreneurs are assisted by DICs in
  getting clearances from local bodies, Town
  Planning, Pollution Control Board, Public
  Health, Inspector of Factories, TNEB, Fire
  Services and other Departments and getting
  timely power connection under the Single
  Window Clearance Scheme.
• Government would enact an TN Business
  Facilitation Act, for giving Single Window
  Clearance Committees, at State and District
  level, formal authority and set time period for
  grant of approvals and deemed approvals.
            Industries Escort Service

• The Industrial Escort Service Wing of the Department
  has been established by the Government to assist the
  entrepreneurs at various stages of establishment of new
  Large Scale Industries in the State.
• This wing renders assistance relating to
1 Processing applications of the entrepreneurs for issue
  of industrial licenses for setting up major industrial
2. Permission to set up 100% export oriented units in the
  State by recommending to Government of India.

    2. Post Project Implementation
•    Acknowledging Entrepreneur Memorandum - Part II
     for MSMEs
•    Cottage Industries and Handicrafts Registrations
•    Quality Control
•    Incentive Schemes
•    Exports
•    Industries Escort Service
•    Sample Survey
•    MSE Facilitation Councils
•    Sick Units Rehabilitation Assistance

   Entrepreneurs Memorandum (Part II)
     Cottage Industries and Handicrafts
• DICs issue online acknowledgment to
  Entrepreneurs Memorandum (Part II) filed by
  Micro ,Small and Medium Manufacturing or
  Service Enterprises once they start production
  or start providing or rendering services

• Cottage Industries and Handicrafts Industries
  registration certificates are also issued by
  district Industries Centres

          Industrial Estates

1. Electrical & Electronics Industrial
2. Industrial Cooperative Estates
3.Ceramic Industrial Estate,

              Electrical & Electronics
                   Industrial Estates
The Department of Industries and Commerce
(Electrical and Electronics wing) has developed 8
functional industrial estates to provide developed
plots/sheds to the needy entrepreneurs exclusively for
Electrical and Electronics industries on hire purchase/rental
basis in the following places.

•   Thiruvanmiyur and Perungudi in Chennai
•   Kakkalur in Trivallur District
•   Hosur in Dharmapuri District,
•   Thuvakkudy in Tiruchirapalli District.
•   Kalappatti in Coimbatore District.
•   Kappalur in Madurai District
•   Sooramangalam in Salem District

         Industrial Cooperative Estates
•   Total number of Registered Cooperative Industrial Estates
    are 11.
•   Out of 11, the following 9 Estates are functioning.

       1.Vyasarpadi Coop,indl.Estate, Chennai
       2.Sakthi Coop,indl.Estate, Pollachi
       3. Salem Coop,indl.Estate, Salem
       4. Sivakasi Coop,indl.Estate, Sivakasi
       5. Tuticorin Coop,indl.Estate, Korampallam
       6. Kanyakumari Coop,indl.Estate, Aralvoymozhi
       7. Madurai Automobile Coop,indl.Estate, Kappalur
       8. Cheran Coop,indl.Estate, Coimbatore &
       9. Salem Granite and General Coop,indl.Estate, Salem
    The following Coop. Indl. Estate where plots have not yet been
       allotted to the members.
    1. Priadharsini Cooperative Industrial Estate, Tenkasi
    2. Arignar Anna Industrial Park, Coimbatore
Ceramic Industrial Estate, Vridhachalam

• This Estate is supervised by an
  Administrative Officer.
• There are 62 units within the Estates
  on rental basis at the rate of Rs.1 per

                Cluster Development

        IIUS                      MSECDP                     SFURTI

• Promoted by Dept. of      CFC- 70% of Project       Scheme of Fund for
Industrial Policy &         Cost,     subject    to   Regeneration of
Promotion, Ministry of      ceiling     of   Rs.15
Commerce and                crores per project        Traditional
Industry, GOI.                                        Industries: 6 coir
                            including        Rs.25
                            lakhs      for    Soft    Industrial clusters in
•The assistance for         activities         like
cluster per location is                               6 places, viz.
restricted to 75% of the    capacity building in      Cuddalore, Salem,
project cost subject to     the Cluster where no
a ceiling of Rs.60 crore.   fixed      asset     is   Singampunari,
The remaining 25% is        acquired for formed.      Periyakulam,
to be financed by the                                 Pattukottai and


•   Tirupur Textile Cluster, Tirupur.
•   Cerals, Pulses and Staples Milling Cluster, Madurai
•   Chennai Auto Ancillary Cluster, Chennai.
•   Leather Cluster, Ambur.
•   Pump, Motor and Foundry Cluster, Coimbatore.
•   COWMA, Coimbatore.
•   Sagoserve, Salem.
•   Gudiyatham, Kalugumalai, Virudhunagar, Sattur, Kovilpatti and
    Srivilliputhur- Match Cluster.
•   Ceramic Cluster, Vridhachalam.
•   Brick Cluster, Tirunelveli.
•   Engineering Cluster, Chennai.
•   Pharma Cluster, Alathur,
•   Plastic Cluster, Chennai.

                 Quality Control

1. Chemical Testing & Analytical Lab, Guindy.
2.Regional Testing Labs at Madurai,
  Coimbatore, Salem & Tuticorin.
3. Central Electrical Testing Lab, Kakkalur.
4.Common Facility Centre, Hosur.
5. Quality Control Order Enforcement Centre

Chemical Testing & Analytical Lab,Chennai

•   This Laboratory caters to the testing needs of industries by
    undertaking testing and analysis of all types of raw materials
    and finished products.
•   This laboratory is fully equipped with sophisticated analytical
    instruments such as Atomic Absorption Spectrophotometer,
    Leco Carbon Sulphur Analyser to undertake complete range
    of analysis and testing on payment of nominal charges.
•   In Mechanical and Metallurgical Laboratory, Physical testing
    for     tensile, compression, impact, hardness etc., are
•   Bonafide MSEs        registered with this     Department are
    extended 50% concession in testing fees.
•   This Laboratory has been recognised by Bureau of Indian
    Standards for certain products.

          Regional Testing Labs at Madurai,
           Coimbatore, Salem & Tuticorin
• RTL, Madurai caters to the testing needs of industries
  located in Madurai,, Theni, Dindigul, Sivagangai, Virudhunagar,
  Ramanathapuram, Pudukkottai, Tiruchirapalli, Karur, Perambalur,
  Ariyalur, Thanjavur, Thiruvarur, and Nagapattinam Districts. This
  laboratory has been equipped with the sophisticated instrument,
  HPLC (High Performance Liquid Chromotograph) for accurate
  testing of Drugs & Pesticides with the equal share of matching
  grant of Government of India and Government of Tamilnadu.
•    RTL, Coimbatore, caters to needs of industries located in
  Coimbatore, Erode and The Nilgiris Districts.
• RTL, Salem caters to the testing            needs of mainly Sago
  and Starch industries located in             Salem, Namakkal and
  Dharmapuri Districts. Facilities are also available for testing of
  samples of all types of minerals, cattle feed, water, coir pith in
  this laboratory. This laboratory is now in a position to cater to the
  mechanical testing needs of industries.
• RTL, Thoothukudi, caters to testing needs of industries
  in     Thoothukudi , Tirunelveli and Kanyakumari Districts.
            Central Electrical Testing Lab,
                  Kakkalur (CETL)
•   CETL offers testing facilities to the entrepreneurs for their electrical
    products.    With the present testing facilities 160 types of electrical
    products are being tested for confirming with Indian Standard
•   In addition to the above, additional testing facilities have been created
    for testing energy meters, watt-hour meters and electrical motors for
    BIS specifications, medical and equipments for electrical parameters
    and calibration facility for measuring instruments.
•    This laboratory has been recognised by Bureau of Indian
    Standards(BIS), Railways, Rail India Techno Economic Services(RITES),
    Director General of Supplies and Disposals(DGS&D) and has also been
    approved as a quality consultant for Government and Quasi -
    Government Organisations.
•     CETL is accredited by NABL (National Accreditation             Board for
    Testing     and      Calibration Laboratories), New Delhi. This is the only
    laboratory of its kind to be accredited for Electrical Appliances (items) in
    South India.

     Common Facility Centre, Hosur

• This Centre provides testing facilities
  for development of electrical and
  electronic products and also to
  create awareness on quality of
  electronic products.

 Quality Control Order Enforcement Centre
• The State of Tamil Nadu has been divided into
  four regions and implementation of the Quality
  Control Order has been entrusted with the
  officers of the respective region in addition to
  their designated duties.
• This      Centre creates awareness on the
  need to have quality electrical products and
  the penalties imposed for manufacture /
  storage / sale of sub-standard products of
  electrical items covered under Quality Control
  Order 1981, 1988, 1989 and 1993, among
  public through publicity and seminars.

  Micro, Small and Medium Industries
            Policy – 2008

released by Hon’ble Chief Minister of Tamil Nadu
                 on 22.02.2008

       First ever exclusive policy for MSME sector announced by
         any State, since the introduction of MSMED Act 2006.


• Enhance the competitiveness and scalable
  capacity of the MSMEs in Tamil Nadu.
• Encourage agro based industries for increasing
  value addition and giving better income to the
• Target a sustained annual growth rate of over
• Promote 10 lakh direct and indirect employment
  opportunities during the XI Plan period.
'Our mission is to accelerate development in
 Tamil Nadu by maximizing investment,
 output, growth, employment and
 manufacturing competitiveness through
 infrastructure and human resources
 development in Micro, Small and Medium
 Enterprises sector' .

          Infrastructure Development

• Multi- storied flatted constructions for Micro
  Industries to be developed by SIDCO at affordable
• Liberal Floor Space Index for construction of
  industrial sheds and multi-storied industrial units.
• Reservation of 20% land in all SIPCOT estates for
  MSMEs and 30% land for Micro Industries in
  SIDCO estates.
• Infrastructure subsidy of 20 % subject to a ceiling
  of Rs.1.00 Crore per Estate for the development of
  Private Sector Industrial Estates.
• Reimbursement of 50% on stamp duty and
  registration charges to Micro and Small Enterprises
  set up in industrially backward areas.
             Incentive Schemes

 Exclusive package for Micro industries

• 15 % Capital Subsidy on Plant and Machinery.
• 20 % Power Tariff Subsidy for the first 3
• 100 % Subsidy on the assessed Value Added
  Tax (VAT) for the first 6 years.
• Stamp duty exemption on mortgaged and
  pledged documents.

       Subsidy schemes for MSMEs in backward
                     areas &
         Agro based Industries in all blocks
• 15 % Capital Subsidy on the value of Plant and
  Machinery , subject to a ceiling of Rs.30 lakhs.
• 5 % Additional Employment Intensive Subsidy for
  giving employment to 25 workers for 3 years, subject
  to a ceiling of Rs.5 lakhs.
• 5 % Additional Capital Subsidy for units set up by
  Women, SC/ST , Physically disabled and Transgender
  entrepreneurs. subject to a ceiling of Rs.2 lakhs.
•    25 % Additional Capital Subsidy on the value of plant
    and machinery installed to promote cleaner and
    environment friendly technologies, subject to a ceiling
    of Rs.3 lakhs.
• 20 % Power Tariff Subsidy for the first 3 years.            54
Special Capital Subsidy for Thrust Sector
15% Special Capital Subsidy on Plant and Machinery for
10 Thrust Sector Industries set up anywhere in the
State subject to maximum of Rs.30 lakhs.
  •   Electrical and Electronic Industry
  •   Leather and Leather goods
  •   Auto parts and components
  •   Drugs and Pharmaceuticals
  •    Solar Energy Equipment
  •    Gold and Diamond Jewellery for exports
  •    Pollution Control equipments
  •    Sports Goods and Accessories
  •   Cost effective building material and
  •   Readymade Garments.

            Technology Development

•    50% subsidy on the cost of filing a Patent
    Application(Rs.2 lakhs) and for Trade Mark
    Registration (Rs.25000).
•   Establishment of Industrial Clusters (under IIUS,
    MSE-CDP & ASIDE) and Mini Tool Rooms under Public
    Private Partnership mode(25% max. Rs.1 cr.).
•   Creation of Technology Development Fund for
    evolving cleaner / energy efficient / IT enabled
•   Assistance (50L) for creation of Centres of Excellence
    & Technology Business Incubators for introduction of
    new production techniques & design development.

           Technology Development
•   3% back ended Interest Subsidy subject to a ceiling
    of Rs.10 lakhs per enterprise over a period of five
    years for MSME upto term loan of Rs.100 lakhs
    obtained for
•   Tech. Upgradation / Modernisation
•   National Equity Fund (NEF) Scheme
•   ISO Certification
•   R & D resulting in registrtion of patents and
    intellectual property rights.
•   Generator subsidy at 25% of the cost of generator
    upto 125 KVA Capacity, subject to max. of Rs.1.5
    lakhs for MSME in the State.
     Human Resource Development

Reimbursement of 50% of the tuition fees for
Skill Development Training for the benefit of
educated unemployed youth and upgradation
of the skills of the existing employees of MSME
by the MSME Associations.

            Marketing support

• 15 % Price preference for purchase of
  goods of domestic micro and small
  Industries .
• Purchase preference for items notified by
  the State Government.
• Waiver of Earnest Money Deposit for
  participation in tenders.
• 50 % grant on hall rent for participation in
  exhibitions by Industrial Associations
      Deregulation and Simplification

• Introduction of Common Application form for
   submission to statutory authorities in
• Self certification in respect of their compliance
   with statutory requirements.
• Proposed enactment of Industrial Single
   Window Clearance Act.

           Administrative Reforms
• The State Government constituted MSME Board
  for participative review of Associations and for
  making recommendations on the policies and
  programmes for the development of MSMEs in
  the State.
• An Empowered Committee was set up under the
  Chairmanship of Hon'ble Minister for Rural
• Administrative machinery of Department of
  Industries and Commerce is suitably
  strengthened and resources provided in order to
  enable it to cope up with the emerging trends
  and play a facilitating role.

Rehabilitation Package for sick MSMEs

•   Conversion of the outstanding sales tax / VAT
    with interest due into a soft loan for 4 years
•   4 % interest subsidy on rehabilitation / bridge
    loans.- SLIIC(RBI) and SLRC.
•   Implementation of the Exit Policy to be
    announced by the Central Government under
    MSMED Act 2006.
•   Implementation of One Time Settlement (OTS)
•   Remission of the outstanding interest on sale tax /
    VAT for enterprises unviable for rehabilitation.
•   Reduction of power load if it is a part of the
    rehabilitation package.
     New Initiatives of the Department

• The filing of application and issue of
  acknowledgement for Entrepreneur
  Memorandum ( Part I-76,752) and ( Part II-
  40,533) has been made online.
• Filing of Capital Subsidy application to the
  DICs has also been made online.
• Entrepreneurs can check the eligibility of
  subsidy to their proposed Enterprises online,
  based on their activity /location

           MSE Facilitation Councils

• To facilitate the early recovery of dues to seller MSE
  from the buyer units, MSE Facilitation Councils
  headed by the Director of Industries & Commerce
  have been constituted at Coimbatore, Trichy,
  Madurai and Chennai.
• Delays in payments to seller-MSE are adjudicated by
  this council in accordance with the provisions of
  MSMED Act,2006.
• 2009-10 , 215 cases involving Rs.433.04 lakhs were
  adjudicated by the department.

3.Industrial cooperatives

1.TAICO Bank
3.Tea factories
6. Coir

                   TAICO BANK

• To cater to the needs of the Industrial Co-operative
  Societies and SSI units, the Tamil Nadu Industrial
  Cooperative Bank Limited was established during
  September 1961, with the industrial cooperative
  societies as its members and share capital from the
  State Government. This Bank has been recognised by
  the Reserve Bank of India for providing credit
  facilities to Industrial Cooperative Societies under the
  NABARD Refinance Scheme. Besides                  credit
  servicing to the industrial cooperative societies, this
  bank is extending jewel loans, housing/house
  mortgage loans to the general public, and personal
  loans to the salaried employees of all sectors.
              TAICO BANK -CONTD.

Salient accomplishments of TAICO bank
•     Introduction of new schemes like Loans to Small Road
    Transport Operators, House Building Loans,House Mortgage
    Loans etc
•   There are 43 branches functioning all over the State, of which
    33 branches have been fully computerised.
•   Core Banking solutions for providing internet connectivity in
    all the branches with the bank’s H.O. and with ATM facilities
    are being proposed for implementation.
•   The Bank has mobilized deposits to the tune of Rs477.00
    crore, and issued loans and advances to the extent of
    Rs.394.00 crore FOR 2009-10.
•   221 members societies availed credit facilities for Rs.25.95
    crore, including loans worth Rs.2.02 crore under TAMCO loan
•   The bank has been operating on net profit from 2003-04, with
    the current year tentative net profit being Rs.2.90 crore.

              SAGO SERVE, SALEM

•    The Sagoserve is one of the most successful
    examples of Industrial Cooperatives in the State. It
    is the biggest cooperative society in Asia marketing
    sago and starch, with a turnover of Rs.307.45
    Crore during 2009-10.

•    Sagoserve has earned an audited        net profit of
    Rs.206.00 Lakh.

• Government have ordered a concessional TAN-
  VAT rate of 2% for the sale of sago and starch
  routed through SagoServe as against 4% for
• Government have invested Rs. 99.83 Lakh as
  share participation.
• The Sagoserve is availing cash credit
  accommodation of Rs. 10 Crore with NABARD
  authorization from TAICO Bank and other
  cooperative Banks and Nationalized banks under
  a consortium arrangement with the Salem Dist.
  Central Cooperative Bank.

                   TEA FACTORIES

•  Nilgiris District has about 60,000 small tea growers
  with a land holding of about 30,000 Hectares.
• 15 Industrial Cooperative Tea factories are
  functioning in the district with a paid up share capital
  of Rs.1072.68 lakhs and with a total membership of
  19,298 small tea growers.
• The average annual production capacity of these
  factories is 161 Lakhs kgs. of made tea.
• The Industrial cooperative tea factories account for
  about 14% of the total production of tea in the Nilgiris

        TEA FACTORIES contd.
 Performance of the Industrial cooperative tea factories
                                           ( Lakhs)
 Details                                        2009-10

  No.of Societies                                    15
 No.of Members                                     20648
Paid up share capita                             1072.46
 Average (acres)                                   29924
           Quantity of green leaves purchased
 (Kgs. in Lakhs)                                  658.23
Quantity of made tea produced (Kgs. in Lakhs)      174.27
Average rate paid for green tea leaves (Rs.per Kg ) 12.31
Tea sales (Lakkhs)                              11467.01

                     INDCO SERVE
•     This Apex Society helps the primary societies
    (ICFTS) in marketing their made-tea for enabling
    them to pay better price for green leaves to their
    farmer members, improving the productivity of tea
    through necessary inputs and imparting training in
    modern methods of cultivation and production of tea.
    To overcome the tea crisis, the INDCOSERVE has
    been underaking the selling of made tea in the name
    of "Ooty Tea " through PDS outlets. The sale of
    "Ooty Tea" through PDS, was inaugurated on
    15.8.2001 and    about     250 M.T.s of "Ooty Tea"
    worth Rs.2.12 Crores is sold every month.

                      TEA SERVE
•     This Electronic Tea Auction Centre was established
    at Coonoor under co-operative fold to conduct tea
    auction in a transparent manner.
•   The New Electronic Tea Auction Centre by name TEA
    SERVE was registered on 28.2.2002 and inaugurated
    on 13.9.2003.
•   It commenced its regular Tea Auction at Coonoor from
•   During 2009-10, 11702.53 lakh kgs of Tea sold
    through centre.
•   The auction centre ensures transparency in auction
    and lessen the selling expenses to the seller factories.

• There are 75 Coir Industrial Cooperative Societies in
  the state with 10557 members and a paid up share
  capital of Rs.2.66 Crores.
• The Coir Industrial Cooperative societies have
  achieved a turnover of Rs.12.24 Crores during 2009-
• To modernise the activities of these coir societies, an
  Integrated Coir Development Project (ICDP) is being
  implemented in 21 Coir Industrial Cooperative
• The Government sanctioned a sum of Rs.43.43 lakhs
  towards State share of Market Development
  Assistance to the Coir Industrial Cooperative
  Societies for the year 2009-10.
                        Other ICS

•   Match Service            •   Engineering
•   Leather Finishing        •   Polythene
•   Leather Workers          •   Auto and Taxi
•   Coal and Coke            •   Tailoring
•   Brick                    •   Printing
•   Metal                    •   Labour Contract
•   Special                  •   Handicrafts

            ICS Statistics (2009-10)

•   Total- 362 ICS - 243 profit.
•   Sales Turnover - Rs.58853 lakhs.
•   Employment- 98169 persons.
•   Wages – Rs.2448.19 lakhs.

4.Channel to Govt. Undertakings

• This Directorate also acts as the Budgeting and
  drawing authority for Government undertakings
  viz., Tamil Nadu Small Industries Corporation Ltd.
  (TANSI), Tamil Nadu Small Industries Development
  Corporation Ltd. (SIDCO), State Industries
  Promotion Corporation of Tamil Nadu Ltd.
  (SIPCOT), Tamil Nadu Industrial Investment
  Corporation Ltd.(TIIC),Tamil Nadu Industrial
  Development Corporation Ltd. (TIDCO),
  Entrepreneurship Development Institute etc., which
  implement the schemes sanctioned by the

• For      the    convenience    of  the
  entrepreneurs,      the details of the
  various schemes and activities of this
  Department have been made available
  at the following address:

SIDCO is an undertaking            of the Government of
Tamilnadu, incorporated in         1970 with the specific
objective of playing a catalytic   role in the promotion and
development of Micro Small         and Medium Enterprises
throughout Tamilnadu.

 Objective of SIDCO is to aid, assist, finance, protect
and promote the interests of Micro Small and Medium
Enterprises in the State by implementing the policies of
Government of Tamilnau.
             Objectives of SIDCO

1) Development of Industrial Estates with
   infrastructure facilities and provision of
   Work-sheds and Developed Plots.

2) Distribution of Raw Materials.

3) Marketing Assistance scheme.

4) Export Assistance scheme.

5) Guidance to Entrepreneurs.             80
•Development of Industrial Estates :

Government of TamilNadu initially developed 35
Industrial Estates in the State.

SIDCO further developed 57 Industrial Estates.

To achieve the target of 100 Industrial Estates
by 2010-11, 8 new Industrial estates are under

Infrastructure in the Industrial Estates :

Industrial     Estates    are    developed     with
infrastructure to suit the need of entrepreneurs for
setting up their industrial units with adequate

Roads are layed to connect all parts of Industrial
Estates with smooth flow of industrial traffic

Water supply system is provided to cater water
requirements of all industrial units

Storm water drains are provided for free flow of
rain water.
Sewage system with treatment plant is provided.

Street lights are provided to illuminate industrial estate.

Electric power supply sub stations are established
inside industrial estate to fulfill the requirements of

Developed plots are earmarked with provision of
common amenities:
  oFire station
  oPolice station
  oPost office
  oTechnical Training Institute
  oAssociation for manufacturers
  oBus stand
  oParking facilities for trucks
  oTechnical library
  oFirst Aid Post
Facilities offered to Entrepreneurs

Work sheds of size ranging from 600 Sq.ft to 4000
Sq.ft. are allotted to entrepreneurs to commence their
industrial activity at once.

Developed Plots of size ranging from 10 cent to
1.00 acre and above are allotted to entrepreneurs to
design the worksheds according to their project

Multistoried RCC work-sheds of sizes 500 Sq.ft,
1000 Sq.ft and 1500 Sq.ft are allotted for Electronics
and Readymade Garment industrial units.
 Entrepreneurs are assisted for getting;

   o power connection to their industrial units.

   o financial assistance from Banks for their projects

   oapproval for building plans for their projects

   opollution clearance

Online facilities to submit applications, download
scheme forms, ascertain information on schemes of
SIDCO through website
   Implementation of Government schemes
        for infrastructure upgradation

SIDCO implements various schemes of          of
Central     and     State    Government       for
creation/upgradation of infrastructure facilities
in Industrial Estates.

             Raw Materials Supply Scheme

 Raw Materials are distributed to MSEs with assured
  quality at competitive price:

        Iron & Steel,
        Paraffin Wax,
        Potassium Chlorate

 SIDCO passes on the main producers’ rebate           to
  entrepreneurs in distribution of Iron & Steel.

 Paraffin wax and Pottassium Chlorate are supplied in
  small quantities to many cottage industries through its
  wide network of Raw Material Depots

               Marketing Assistance Scheme

 SIDCO renders assistance to SSI units to market their products
  to Govt. Departments / Undertakings

 SIDCO participates in tenders on behalf of MSEs, gets orders and
  distributes to them and ensures proper supply to Government
  departments / Undertakings.

 SIDCO provides platform to MSEs to participate in industrial
  trade fairs and arranges Buyer Seller meets, to generate more
  marketing opportunities to MSEs.

                  Guidance to Entrepreneurs

 SIDCO guides aspiring entrepreneurs with information such
    where and how to get project profiles,
    incentives available for the industry,
    packages of financial assistance available with various
    facilities provided by other Central and State Government
      agencies, etc.

 SIDCO organises Entrepreneurship Development Programmes
  in association with other organisations / Associations to
  promote entrepreneurship and industrialisation.
          XI Five Year Plan
• XI Five Year Plan has got an outlay of
  Rs.206 Crores, for the period 2007-2012.

• The major allocations are going in for
  technology        upgradation     and
  modernisation of MSMEs.

• New MSMEs are to get assistance by way
  of Capital Subsidy & VAT Subsidy.

            Slow Down of the Economy
• The Worldwide Industrial recession and slow down of the economy
  in our Country has affected the MSME Sector very badly. It has
  resulted in demand contraction, delay in receiving payments, loss
  of jobs etc.

• It has affected the Automobile Sector, Textiles and Leather
  Industry in Tamil Nadu.

• Govt. of India has countered the economic slow down by effecting
  4% cut in CENVAT, reducing 2% in Excise Duty and Service Tax,
  earmarking Rs.49,000 Crores for infrastructure & industry.

• Prime Minister has announced a stimulus package of Rs.30,000
  Crores targeting Power, Housing, Auto, Small and Medium

• Reserve Bank of India has announced re-structuring of loans to
 National Manufacturing Competitiveness Programme (NMCP)

   The Government of India has announced formulation of a National
Manufacturing Competitiveness Programme (NMCP), to support the
SMEs to increase their firm level competitiveness against global
challenges and it will be implemented in the PPP mode. Assistance to
MSMEs under the following areas are proposed under the scheme:

1.  National Programme on Application of Lean Manufacturing
2.  Promotion of ICT in Indian Manufacturing Sector
3.  Mini-Tool Rooms
4.  Technology And Quality Upgradation Support for SMEs
5.  Support for Entrepreneurial and Managerial Development of SMEs
6.  Design Clinic scheme to bring design expertise to the Manufacturing
7. Enabling manufacturing sector to be competitive Through Quality
    Management Standards and Quality Technology Tools
8. National campaign for investment in Intellectual Property
9. Market assistance/SMEs and technology upgradation activities
10. Marketing Support/Assistance to SMEs.

•   Ministry of MSME
•   NSIC
•   DGS & D
•   Ministry of Textiles
•   TIIC
•   ESIC
•   EPFO
•   FIEO
•   KVIC

                          THANK YOU

Visit us at www.   e-mail :

Thank You


To top