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ANNUAL REPORT
2018-19
GOVERNMENT OF INDIA
MINISTRY OF MSME MSME - DEVELOPMENT INSTITUTE Chennai
www.msmedichennai.gov.in www.dcmsme.gov.in
ANNUAL REPORT 2018-19
GOVERNMENT OF INDIA
MINISTRY OF MSME MSME - DEVELOPMENT INSTITUTE
Chennai – 60 0032
www.msmedichennai.gov.in www.dcmsme.gov.in
TABLE OF CONTENT
Chapter.
No
Content Page No
Performance at a Glance i
Revenue Achievements ii
1 Introduction 1
2 Training Programs 7
3 Consultancy Services 9
4 Micro Small Enterprises – Cluster Development
programme 17
5 National Manufacturing Competiveness Programme 22
6 Public Procurement Policy 26
7 Udyam Samaagam 28
Photo Gallery 31
LIST OF TABLES
Table
No Title Page No
1.1
Geographical coverage of MSME-DI Chennai and Branch
Institutes
2
1.2 Infrastructural Facilities available at MSME DI Chennai 4
1.3 Registered MSMEs in Tamil Nadu and Puducherry 5
2.1 Industrial Motivation Campaigns 7
2.2 Entrepreneurship Skill Development Programme 8
3.1 District wise visitors attended 10
3.2 Category wise Entrepreneurs assisted by MSME DI
Chennai 11
3.3 Details of Revenue Generation by Br. MSME DI Coimbatore
12
3.4 Details of Training Programmes 12
3.5 Potential Clusters in Aspirational Districts 15
4.1 Status of Projects under MSE-CDP Scheme in India and
Tamil Nadu 17
4.2 Status of Projects under MSE-CDP Scheme (Common
Facility Centre) in Tamil Nadu 18
4.3 List of CFCs Completed under MSE-CDP Scheme in
Tamil Nadu 18
4.4 MSE-CDP Projects under Implementation in Tamil Nadu 20
4.5 List of Projects Recommended under MSE-CDP in Tamil Nadu
21
5.1 Details of the LMCS Clusters in Tamil Nadu 22
5.2 List of Units participated in International Trade Fairs 24
6.1 Details of Vendor Development Programmes attended by MSME-DI Officials
27
7.1
Details of Udyam Samagams organised in Tamil Nadu &
Puducherrly
30
i
PERFORMANCE AT A GLANCE FOR THE YEAR 2018-19
S.No. Name of the program
Programmes
conducted (in No.)
Persons
trained/ Benefited (in
No.)
1 Udyam Samaagam 4 404
2 Industrial Motivational
Campaign
7 613
3 Sensitization program on IPR 2 154
4 Awareness on GST 1 50
5 No. of job undertaken in
workshop
- 51
6 No. of Visitors facilitated - 4674
7 No. of Units supported for
UAM registration
- 1524
8 No. of lean cluster in the
state
- 47
9 No. of clusters indentified
Under MSE-CDP
- 10
10 No. of units supported under
MATU
- 12
11 Export Import documentation
and procedures
4 634
ii
REVENUE FOR THE FINANCIAL YEAR 2018-19
Sl. No Activity
Total
Revenue
(in Rs.)
1. (a) Revenue from Workshop/ Training on CNC
(CAD/CAM ) & Common Facility
408530
2. (b) SDP Fees 0
3. (c) Chemical Lab 0
4. (d) EDP Fees 0
5. (e) MDP Fees 0
6. (f) Udyam Samaagam 254400
7. (g) SVDP Fees 20000
8. (h) ESDP fees 0
9. (i) Hosiery 0
10. (j) Sale of Trainee Products 0
11. (k) Seminar Fees – Bar code 0
12. (l) Capacity Assessment and Consultancy / SION 20000
13. (m) Project Appraisals 0
14. (n) Sick Unit Studies 0
15. (o) In-plant Studies 0
16. (p) Surveys 0
17. (q) Energy Audits 0
18. (r) NSIC Regn. / GSPP 427885
19. (s) Sale of Publications 14500
20. (t) PD Accounts 58750
21. (u) Others 113400
Total 1317465
1
CHAPTER – I
INTRODUCTION
Micro, Small and Medium Enterprises – Development Organization, under
the Ministry of MSME, Government of India, is an apex body at the Centre
that formulates programmes and policies for Micro, Small and Medium
Enterprises. The Organization was set up on 6th June 1954. During the
last six decades the Organization has worked relentlessly towards converting
the idle man power into resourceful entrepreneurs. The policies formulated
by the organizations are aimed at creating new generation of entrepreneurs
with modern technological innovations.
The Organisation has institutional set up with Head Office at New Delhi
headed by Additional Secretary & Development Commissioner, Micro, Small
and Medium Enterprises. The Micro, Small and Medium Enterprises –
Development Institutes and Branch Institutes are set up at various States
and District Head Quarters. At present there are 30 Micro, Small and
Medium Enterprises Development Institutes, 28 Branch Institutes attached
to main Institutes. To cater to the needs of the testing facilities for the micro,
small and medium enterprises, 4 MSME Testing Centres were set up during
the year 1975-76. Subsequently, a few MSME Testing Stations depending
upon the needs of the places were set up. At present 7 MSME Testing
Stations are functioning at different places in the country. Apart from the
above, there are 6 Process-cum-Product Development Centres in the fields of
Glass, Electronics, Electrical Measuring, Sports Goods, Fragrances &
Flavours and Foundries. There are 2 Central Footwear Training Institutes,
10 Tool Rooms and 3 National Level Entrepreneurial Development
Institutes.
MSME – Development Institute, Chennai has two branch Institutes at
Coimbatore and Tuticorin. Tuticorin branch institute has an attached
workshop at Tirunelveli.
The MSME – Development Institute, Chennai and Branch MSME –
Development Institutes at Coimbatore and Tuticorin are providing a
comprehensive range of facilities and services such as techno-managerial
services, training needs, common facility workshop, laboratories, statistical
and economic information for the State of Tamil Nadu & Puducherry (UT).
MSME - Development Institute, Chennai maintains close liaisons with State
2
Government Departments and other agencies involved in the promotional
and development activities of the State.
1.1 Geographical coverage of MSME-DI Chennai and Branch Institutes
At present, MSME - Development Institute, Chennai is covering 24 Districts
in Tamil Nadu and the Union Territory of Puducherry. Branch Institutes are
located at Coimbatore and Tuticorin covering 9 districts of Tamil Nadu
State.
Table 1.1 Geographical coverage of MSME-DI Chennai and Branch
Institutes
MSME-DI Chennai
1. Ariyalur 13. Sivagangai
2. Tiruvanamalai 14. Tanjavur
3. Cuddalore 15. Tiruvallur
4. Chennai 16. Tiruvarur
5. Dharmapuri 17. Theni
6. Dindigul 18. Trichy
7. Kanchipuram 19. Vilupuram
8. Krishnagiri 20. Virudhunagar
9. Madurai 21. Vellore
10. Namakkal 22. Karur
11. Nagapattinam 23. Preambalur
12. Pudukkottai 24. Kallakurichi
Branch Institutes
Coimbatore Tuticorin
1. The Niligris 6. Tiruneveli
2. Coimbatore 7. Tuticorin
3. Erode 8. Kanyakumari
4. Salem 9. Ramanathapuram
5. Tiruppur
1.2 Role of MSME-DI Chennai
MSME-DI, Chennai, a field level institution of Office of Development
Commissioner, Ministry of Micro, Small and Medium Enterprises (DC-
MSME), for the State of Tamil Nadu and UT of Puducherry, has
been given the following mandate:
3
➢ For Aspiring entrepreneurs: Identify, motivate, train, handhold and
provide mentoring services.
➢ For Existing entrepreneurs: To provide techno-economic
consultancy and facilitation service.
➢ Skill Development: To impart need based skill training through Skill
Development Programmes (SDP)
In order to fulfil the mandate and to encourage entrepreneurship,
employment and livelihood opportunities for aspiring and
existing entrepreneurs across the State, this Institute is offering a wide
spectrum of value added services.
S.No Role of MSME-DI Chennai
1. Promotion of Policies and schemes of Ministry of MSME
2. Preparation of District/State Industrial Profile Reports
3. Consultancy and hand holding services
4. Liaison with Reserve Bank of India for Monitoring Credit Flow to MSE
Sector
5. Co-ordination with State Government for organizing State Level
Advisory Board Meeting.
6. Vendors Development Programmes (State and National)
7. Economic Investigation
8. Revival & Rehabilitation of sick units
9. Industrial Motivational Campaign
10. Two Weeks Entrepreneur Awareness Programme (EAP)
11 Entrepreneurship Skill Development Programme (ESDP)
12. Management Development Programmes (MDP)
13. Other training/awareness programmes such as IPR, Export & Import
procedure and documentation.
4
1.3 INSTITUTIONAL STRUCTURE
This Institute is headed by The Director, who is also a Member of Board
of Directors of various Task Force Committees viz., Tamil Nadu Small
Industries Development Corporation (TANSIDCO), State Level Bankers
Committee (SLBC), State Level Inter Institutional Committee (SLIIC)
of RBI, State Level Advisory Board (SLAB), Unemployed Youth
Employment Generation Programme (UYEGP), Prime Minister
Employment Generation Programme (PMEGP), New Entrepreneur
Entrepreneurship Development Scheme (NEEDS) etc.
The Director is supported by 5 Deputy Directors, 4 Assistant Directors
(Grade-I), 14 Assistant Directors (Gr-II), 3 Investigators all in various
disciplines such as Electrical, Electronics, Mechanical, Chemical, Food,
Glass & Ceramics, Leather, Metallurgy, Hosiery, Statistics, Economics
etc. along with nearly 40 Ministerial/Secretarial Staff members.
1.4 INFRASTRUCTURE
MSME-DI is well equipped with adequate infrastructure facilities for
carrying out the training/awareness programmes and other vendor
development programmes, etc.
Table 1.2 Infrastructural Facilities available at MSME DI Chennai
S.no Particulars Size/Numbers
1 Total Land Area 4.11 acres
2 Building Area 2831 sq. mtrs.
3 Conference Hall 1
4 Auditoriums 8
5 Training Halls 2
6 Workshop sheds 1
7 Canteen 1
8 Library 1 (with approx. 7000 books
and 300
periodicals/journals)
5
1.5 MSME SECTOR IN TAMIL NADU
Micro, Small and Medium Enterprises (MSMEs) sector plays a crucial role in
Indian economy; the sector is highly dynamic and vibrant. The share of
MSME Sector in the country’s Gross Value Added (GVA) is approximately 32
per cent. The State is a significant contributor to the Indian economy after
Maharashtra. Tamil Nadu ranks third in total numbers of MSME units in
India.
Tamil Nadu state has about 50 lakh MSMEs in non-registered unorganised
sector. As per Udyog Aadhar registration, the State enrolled 7.7 lakh
MSMEs. These MSMEs have a strong presence in engineering, automobile
production, auto components manufacturing, agro based, food processing
and information & bio technology sector.
The below table illustrates number of Micro Small and Medium Enterprises
registered in various districts of Tamil Nadu.
Table 1.3 Registered MSMEs in Tamil Nadu and Puducherry
Sl No. District Name Udyog Aadhaar
Regd.
Micro Small Medium
Tamil Nadu
1 ARIYALUR 1647 1426 217 4
2 CHENNAI 141273 123160 17532 581
3 COIMBATORE 84078 73179 10609 290
4 CUDDALORE 9516 8309 1176 31
5 DHARMAPURI 8881 8138 732 11
6 DINDIGUL 13276 11880 1347 49
7 ERODE 36740 33326 3334 80
8 KANCHIPURAM 55302 48635 6460 207
9 KANYAKUMARI 17125 15027 2061 37
10 KARUR 8707 7398 1286 23
11 KRISHNAGIRI 17254 14020 3136 98
12 MADURAI 43594 39730 3790 74
13 NAGAPATTINAM 4291 3656 627 8
14 NAMAKKAL 19752 16028 3655 69
15 NILGIRISH 1856 1629 221 6
16 PERAMBALUR 1677 1359 318 0
17 PUDUKKOTTAI 6486 5439 1029 18
18 RAMANATHAPURAM 3633 3105 520 8
19 SALEM 50031 46475 3484 72
20 SIVAGANGA 4903 4277 611 15
21 THANJAVUR 9680 8507 1155 18
6
22 THENI 6936 6308 619 9
23 THIRUVALLUR 44140 37989 6001 150
24 THIRUVARUR 3459 2917 515 10
25 THOOTHUKUDI 11782 9809 1926 47
26 TIRUCHIRAPALLI 17464 15209 2198 57
27 TIRUNELVELI 18515 16452 2021 42
28 TIRUPPUR 71363 63665 7502 196
29 TIRUVANNAMALAI 8273 7306 947 20
30 VELLORE 21304 18613 2627 64
31 VILLUPURAM 9626 8385 1194 47
32 VIRUDHUNAGAR 20194 18355 1777 62
Total 7,72,758 6,79,728 90,627 2,403
Puducherry
1 PUDUCHERRY( includes
PUDUCHERRY,KARAIKAL AND YANAM)
5679 1270 47 6996
Total 5679 1270 47 6996
7
CHAPTER-II
TRAINING PROGRAMMES
Training is one of the necessary inputs for the existing as well as prospective
entrepreneurs. Training programmes like Entrepreneurship Development,
Skill Development and Motivations campaigns are very much essential for
entrepreneurs for enhancing the skills in all respects. These programmes
are tailor-made for the benefit of entrepreneurs. During the programme,
candidates are made aware of various schemes available from Govt.
Agencies, Financial and other Institutions. They are trained technically and
exposed to important functions of management.
2.1INDUSTRIAL MOTIVATION CAMPAIGNS
Industrial Motivation Campaigns (duration of 1 day or 2 days) are organized
to identify and motivate younger generation and educated unemployed
youth having potential for setting up MSEs. These Camps are organized at
various places in the State. Agencies like Financial Institutions, DICs,
KVIC, NSIC, Banks are invited to brief their activities. During the financial
year 2018-19, 8 Motivation Campaigns were conducted and a total number
of 613 persons participated and benefitted out of these programmes. The
details of IMCs conducted are listed below:
Table 2.1 Industrial Motivation Campaigns
S.No Place District No.
Participants / Beneficiaries
1 Guindy, Chennai 60
2 Tiruvannamalai town Tiruvannamalai 130
3 Tiruchirappalli Town Tiruchirappalli 94
4 Periyakulam Theni 57
5 Palayamkottai Tirunelveli 80
6 Maraimalai Nagar Kanchipuram 67
7 Pazhaverkadu Tiruvallur 60
8 Peelamedu Coimbatore 65
Total 613
8
2.2 ENTREPRENEURSHIP AWARENESS PROGRAMME
Entrepreneurship Awareness Programmes are organized for 2 weeks; these
programmes are organized regularly in all the districts of Tamil Nadu to
nurture the talent of youth by enlightening them on various aspects of
industrial activity required for setting up of enterprises. The main objective
behind organizing Entrepreneurship Development Programmes is to create
awareness and inculcate the benefits of self-employment ventures. During
the training programmes, the candidates will be taught about the selection
of product, preparation of project reports, conducting market surveys,
elementary book keeping etc. The EAPs cover both entrepreneurship and
other management topics.
2.3 ENTREPRENEURSHIP SKILL DEVELOPMENT PROGRAMME
Skill development training programmes are organized to upgrade skills of
prospective entrepreneurs, existing workforce and also develop skills of new
workers and technicians of MSMEs with the basic objective of providing
training for their skill up gradation and to equip them with better and
improved technological skills for production. During the financial year 2018-
19, 7 programmes were conducted and 177 candidates have been trained in
Krishnagiri and Perambalur districts.
Table 2.2 Entrepreneurship Skill Development Programme
S.no District No. of Programmes No. of Trained/
Benefited
1 Krishnagiri 3 75
2 Perambalur 4 102
Total 7 177
2.4 MANAGEMENT DEVELOPMENT PROGRAMME
The main objective behind organizing Management Development
Programmes is to make awareness the start-ups/ Entrepreneurs on
management skills. During the training programmes, the candidates will be
taught about the management practice system to improve the decision
making capabilities of existing & potential entrepreneurs. Inputs on varied
topics of managerial functions are provided to the participants.
9
CHAPTER – III
CONSULTANCY SERVICES
The primary objective of the Institute is to provide consultancy services to
the existing and prospective entrepreneurs. The existing entrepreneurs are
assisted by providing technical consultancy for updating their existing
technology. The prospective entrepreneurs are provided with basic
information such as Scope for industries, providing project reports, assisting
the entrepreneurs in the selection of products, imparting trainings such as
Skill Development Programmes, Entrepreneurial Development Programmes,
Management Development Programmes and motivating educated
unemployed youths through Campaigns.
3.1 INFORMATION FACILITATION COUNTER
The Information Facilitation Counter provides information to the prospective
as well as existing entrepreneurs on Project Report, Financial assistance,
Registration formalities, Domestic /International Trade Fair, Information on
training programmes, Information on NMCP and other MSME schemes.
During the financial year 2018-19, 4674 prospective/existing entrepreneurs
visited this office and collected information on enterprises development and
promotion. The below chart depicts the information of visitors attended by
MSME-DI Chennai during the financial year 2018-19.
10
Table 3.1 District wise visitors attended
Sl. No DISTRICT GENDER TOTAL
FEMALE MALE
1 CHENNAI 417 1193 1610
2 KANCHIPURAM 176 619 795
3 THIRUVALLUR 62 227 289
4 CUDDALORE 19 11 30
5 VELLORE 5 28 33
6 VILUPPURAM 5 27 32
7 OTHER DISTRICTS 625 1260 1885
TOTAL 1309 3365 4674
It is observed from the Table 3.1 that more than 4500 entrepreneurs have
been assisted by providing information on various stages of their enterprises
development. Among the total visitors/entrepreneurs, around 16 percent are
belonging to SC category.
11
Table 3.2 Category wise Entrepreneurs assisted by MSME DI Chennai
SL.NO GENDER CATEGORY OF ENTREPRENEUR TOTAL
NEW EXISTING OTHERS
1 Male 1302 910 40 2252
2 Female 419 272 16 707
TOTAL 1721 1182 56 2959
Table 3.2 shows that MSME DI Chennai main office assisted for about 3000
visitors and among the total visitors 1721 persons are reported to be new
entrepreneurs and 1182 persons are found be existing entrepreneurs visited
this office for guidance to expanding their units and marketing support.
The information facility centre also assists visitors/ start-up/ existing
entrepreneurs in registering Udyog Aadhaar Memorandum (MSMEs
Registration) at free of cost. For the financial year 2018-19, 1524 Udyog
Aadhaar Memorandums have been registered at MSME-DI Chennai. The
below diagrammatic representation describes 431 female and 1093 male
start-up/entrepreneurs were supported to register Udyog Aadhaar
Memorandum.
12
3.2 WORKSHOP & LABORATORY FACILITIES
MSME Development Institute, Coimbatore is equipped with a Common
Facility Workshop. The workshop provides facilities to the entrepreneurs in
Testing of pumps and motors. Revenue details for Br.MSME-DI Coimbatore,
is as follows:
Table 3.3 Details of Revenue Generation by Br. MSME DI Coimbatore
S.No Description
Units (in.Rs)
1 Revenue Generated 408530
2 No. of Units Benefited 16
3 No. of Job works taken 51
3.3 CONSULTANCY PROVIDED BY OTHER DIVISIONS
3.3.1 Industrial Management & Training (IMT)
The division of IMT Co-ordinates with all officers for allotments of training
programs such as Entrepreneurship Awareness Programmes, Motivation
Campaigns, Management Development Programmes and Entrepreneurship
Skill Development Programme for the benefit of prospective and existing
entrepreneurs across Tamil Nadu and Puducherry. The allotments and
achievements of this financial year (2018-19) are as follows:
Table 3.4 Details of Training Programmes
S.no Programs Allotted and
completed
No.
Participated/
beneficiaries
1 Industrial Motivation
Campaigns
8 613
2 Entrepreneurship Skill
Development Programmes
7 177
Total 15 790
13
3.3.2 Economic Investigation (EI)
a. State Level Advisory Board Meeting
The main objective of the meeting is a) to ensure co-ordination
between different agencies responsible for the development of the
Micro, Small and Medium Enterprises in the respective States and b)
to advise on all issues concerning the Micro, Small and Medium
sector, specially State related matters, including functioning of DICs,
MSME-DIs and various promotional and autonomous bodies under
the control of MSME-Development Organization, functioning of State
KVIC, implementation of various centre sponsored schemes such as
PMEGP, NPRI, Monitoring of credit flow etc. Spade work for SLAB
meeting is initiated to organize in the Union Territory of Pondicherry.
b. State Level Bankers Committee Meeting
State Level Banker’s Committee (SLBC) Meeting came into existence
under Lead Bank Scheme as per RBI guidelines & it’s an inter-
institutional forum at State level ensuring coordination between
Government & Banking sector on matters pertaining to overall
banking development. It facilitates effective implementation of
development programmes in the areas of poverty alleviation,
employment to un-employed, providing banking outlet in un-banked
areas, training, financial literacy etc. In Tamil Nadu Indian Overseas
Bank is the convenor of SLBC & the meeting is conducted on
Quarterly basis. An officer from EI division attended 4 SLBC meetings
& raised the dismal performance of “Stand Up India” Scheme to the
SLBC Convenor, besides difficulties faced by the existing
entrepreneurs & aspiring entrepreneurs for MSME loan both for
starting & expansion of the units. The role of SLBC is reinforced by
the High Level Committee constituted by RBI to review Lead Bank
Scheme.
c. Inter Media Publicity Coordination Committee Meeting
The objective of the meeting is to provide a platform to all the
stakeholders including media units, implementing and executing
agencies as well as State & Central Government departments to
underscore their activities. During the meeting the forth coming
events of this institute is conveyed to the IMPCC chairman to
14
propagate through Print & Visual media for wide coverage of the
event, besides various issues related to functioning of different
media units in the State including the Directorate of Information
were discussed. In the financial year this office attended 6
meetings.
d. Framework Meeting for Revival & Rehabilitation of MSMEs
The objective of the meeting is to facilitate MSMEs to seek respite
& dispensation to triumph over prior NPA financial difficulties &
to grant even handed access to MSMEs, which have availed credit
amenities from the bank & to formulate Corrective Action Plan(cap)
to bail out from the stress. The corrective action plan includes
capitalizing the overdue amount, converting the existing Term Loan
to Working Capital Term Loam with maximum EMI of 60 months
inclusive of 6 moratorium period. An officer from EI division
attended the aforesaid meeting as a representative from MSME-DI,
Chennai & the committee organized by Canara Bank, Chennai
Circle revived 44 MSMEs stressed accounts during the financial
year 2018-19
e. RTI Act:-
The information under RTI Act was co-ordinated by CPIO:
No. of applications received : 30 nos
No. of application for which reply given : 30 nos
No. of application yet to be addressed : Nil
f. Aspirational District Development:
As per the report submitted by NITI Aayog, two districts in Tamil Nadu
State namely Virudhunagar and Ramanathapuram have been
identified as aspirational districts. Ministry of Micro, Small and
Medium Enterprises is entrusted with the task of development of
MSMEs in the aspirational districts. Accordingly, the two districts viz.
Virudhunagar and Ramanathapuram were taken up by MSME DI
Chennai for preparation of Action Plan for development of MSMEs in
consultation with MSME TC, KVIC, NSIC and State Government
departments. Economic Investigation Division has conducted two
15
meetings at district level under the chairmanship the district collector
in the presence of Shri. Bandla Srinivas, Joint Secretary, the Nodal
officer from M/o MSME for aspirational districts in Tamil Nadu. The
reports for development of MSMEs and clusters in the two aspirational
districts were prepared in consultation with other stakeholders from
M/o MSME and State Governments and submitted to M/o MSME.
g. MSE-Cluster Development Programme
MSME-DI Chennai has prepared action plan for development of
aspirational districts in Tamil Nadu viz., Virudhunagar and
Ramanathapuram. MSME –DI has also identified Clusters in the
aspirational districts for development under MSE-CDP.
Table 3.5 Potential Clusters in Aspirational Districts
S.No District Cluster
1 Ramamathapuram
Handloom Cluster, Paramakudi
2 Ramamathapuram
Jewellery Cluster, Paramakudi
3 Ramamathapuram
Palm and Palm Products, Mandapam
4 Ramamathapuram
Sea Shells Cluster, Rameswaram
5 Virudhunagar Lime Based Clusters in Rajapalayam
(Lime Powder)
6 Virudhunagar Readymade Garment in Thalavipuram (Peticoat & Braziers)
7 Virudhunagar Brick Cluster in Wathrap (Country Bricks)
8 Virudhunagar Surgical Cotton Guaze and Bandage Cloth Clusters in Chathrappatti
9 Virudhunagar Honey Processing and Herbal Extraction
Cluster in Suduragiri Hills
10 Virudhunagar Lock Making Clusters in Rajapalayam
Among the 10 identified clusters in aspirational districts, Palm
Sugar/gur cluster has been taken up by MSME-DI Chennai and
prepared a Diagnostic Study Report (DSR) and submitted to M/o
16
MSME. Palm Sugar cluster will be supported under MSE-Cluster
Development Programme.
3.4 SENET Activities
The official website of MSME DI Chennai – http://www.msmedi-chennai.gov.in
is maintained by SENET Division. This is hosted on NIC server for better
security and accountability with Govt. of India, Min. of Science &
Technology, which is mandatory of all Govt. of India websites. Presently, it is
being revamped for better transparency. The content of the website is
constantly modified and updated suitably at regular intervals. It also
provides hyper linked access to many other important websites like O/o
DC(MSME), CGFT-MSE Mumbai, Reputed associations etc. The main
activity of the SENET are maintenance of IT infrastructure in the office,
Maintaining Website, Dissemination of information to prospective
entrepreneurs and existing enterprises.
17
Chapter- IV
MICRO AND SMALL ENETERISES CLUSTER DEVELOPMENT
PROGRAMMME (MSE-CDP)
The Ministry of Micro, Small and Medium Enterprises (MSME) has adopted
the cluster development approach as a key strategy for enhancing the
productivity and competitiveness as well as capacity building of Micro and
Small Enterprises (MSEs) and their collectives in the country. The objectives
and scope of the Micro and Small Enterprises – Cluster Development
Programme (MSE-CDP) are
(i) To support the sustainability and growth of MSEs by addressing
common issues such as improvement of technology, skills and quality,
market access, access to capital, etc.
(ii) To build capacity of MSEs for common supportive action through
formation of self help groups, consortia, upgradation of associations,
etc.
(iii) To create/upgrade infrastructural facilities in the new/existing
industrial areas/ clusters of MSEs with GoI grant restricted to 60% of
the cost of project of Rs 10.00 crore. GoI grant will be 80% for projects
in NE & Hill States, industrial areas/ estates with more than 50%
(a)micro (b) women owned (c) SC/ST units.
(iv) To set up common facility centres (for testing, training centre, raw
material depot, effluent treatment, complementing production
processes, etc) with GoI grant restricted to 70% of the cost of project of
maximum Rs 15.00 crore. GoI grant will be 90% for CFCs in NE & Hill
States, Clusters with more than 50% (a) micro/ village (b) women
owned (c) SC/ST units.
Table 4.1 Status of Projects under MSE-CDP Scheme in India and Tamil Nadu
as on 31st March 2019
Approved by GOI Under
Implementation
Completed Total
India 115 47 68 115
Tamil Nadu 30 08 22 30
Tamil Nadu is one of the successful States in implementing the
MSE- CDP scheme for the benefit of MSE units under group initiatives.
This Institute, with the active support of Government of Tamil Nadu was
able to achieve success in implementation of 30 clusters in the State of
Tamil Nadu under the MSE-CDP Scheme.
18
Tamil Nadu Small Industries Development Corporation (TANSIDCO) is the
implementing and fund routing agency for all the clusters under MSE-CDP
in the State of Tamil Nadu. Common Facility Centre (CFC) for 22
Clusters has already been completed successfully with a total cost of Rs.
121.27 cr. out of which GoI contribution is Rs.83.32 cr. Another 8 CFCs are
in various stages of completion with a total cost of Rs.41.99 cr out of which
GoI contribution is Rs. 28.19 cr.
Table 4.2 Status of Projects under MSE-CDP Scheme (Common Facility
Centre) in Tamil Nadu
As on 31st March 2019
(Rupees in Lakhs)
Sl. No.
Status Nos. Project Cost Govt. of India Contribution
Govt. of Tamil Nadu Contribution
1 GOI sanctioned and completed
22 12127.55 8331.65 922.44
2 GOI sanctioned and under implementation/ ongoing
8 4199.19 2819.64 376.98
3 Projects identified and recommended by GOTN to Govt. of India
10 14595.13 10444.66 1017.53
TOTAL 40 30921.87 21595.95 2316.95
Table 4.3 List of CFCs Completed under MSE-CDP Scheme in Tamil Nadu
As on 31st March, 2019
(Rupees in Lakhs)
SL. No.
Cluster name
District
Project cost of
CFC
SPV share
Bank term
loan
Grant Received from
GOI GOTN
1 Sago & Starch,
Salem
Salem 92.06 18.75 0.00 73.31 0.00
2 Safety
Matches,
Gudiyatham
Vellore 156.00 25.00 34.73 76.99 9.65
3 Safety
Matches,
Virudhunagar
Virudhunagar 156.00 25.00 34.73 76.99 9.65
4 Safety
Matches,
Srivilliputhur.
Virudhunagar 156.00 25.00 34.73 76.99 9.65
5 Safety Matches,
Sattur
Virudhunagar 156.00 25.00 34.73 76.99 9.65
19
6 Safety
Matches,
Kazhugumalai
Thoothukudi 156.00 25.00 34.73 76.99 9.65
7 Safety
Matches,
Kovilpatti
Thoothukudi 156.00 25.00 34.73 76.99 9.65
8 Printing,
Krishnagiri
Krishnagiri 1172.52 108.38 0.00 936.80 90.00
9 Auto
Components, Hosur
Krishnagiri 690.94 105.3 75.00 433.26 70.75
10 Wet Grinder
Coimbatore
Coimbatore 288.20 172.68 0.00 89.10 16.52
11 Ceramic
Virudhachalam
Cuddalore 82.67 18.45 10.79 22.00 9.57
12 Rice Mill,
Keelapavoor
Thirunelveli 690.58 145.5 10.00 466.03 69.05
13 Coir,
Singampunari,
Sivaganga
Sivaganga 658.9 93.00 0 400.00 65.89
14 Rice Mill,
Alangulam
Tirunelveli 787.00 83.75 74.09 550.25 78.91
15 Plastic Cluster Kancheepuram 1485.12 258.16 100.00 1026.96 100.00
16 Engineering
Cluster,
Paramakudi
Sivaganga 498.89 53.75 48.00 368.89 23.34
17 Printing
Cluster,
Sivakasi
Virudhunagar 1314.75 180.28 276.00 767.80 90.66
18 Garment
Cluster
(Women),
Dhalavaipuram
Virudhunagar 104.24 20.60 0.00 62.48 9.36
19 Steel Product
Fabrication
Cluster, Salem.
Salem 1632.74 255.03 0.00 1277.71 100
20 Engineering
Cluster,
Ambattur
Thiruvallur 1124.42 114.65 150.00 724.800 54.44
21 Gold Jewellery
Cluster,
Madurai
Madurai 356.46 39.92 31.60 255.80 29.14
22 Rice Mill
Cluster, Thanjavur
Thanjavur 212.06 21.40 50.00 90.115 40.43
Total 12127.55 1839.60 1033.86 8331.65 922.44
20
Table 4.4 MSE-CDP Projects under Implementation in Tamil Nadu
As on 31st March, 2019
(Rupees in Lakhs)
SL.
No.
Cluster name Project
cost of CFC
GOI
Contbn
State
Govt. Contbn
.
SPV
contbn.
Bank
term loan
Grant Released
till now
Rs. In Lakhs GOI GOTN
1 Power and Auto
Loom Cluster,
Salem.
1333.9
6
886.45 98.78 162.18 186.5
5
797.80
5
98.78
2 Safety Match
Cluster, O.Mettupatty
346.89 204.64 36.00 42.50 63.75 81.856 36.00
3 Stainless Steel
Utensils Cluster,
Kumbakonam
126.30 98.83 7.90 19.57 0 88.947 7.9
4 Coir Cluster, Erode
592.51 404.44 48.65 60.00 79.42 283.10 48.65
5 Gate & Grills
Cluster,
Thirumullaivoyal
284.87 197.93 29.69 57.25 0.00 178.13 29.69
6 Gold Jewellery
Cluster, Trichy
360.30 288.24 36.03 36.03 0.00 201.76
8
36.03
0
7 Engineering
Cluster, Ranipet, Vellore.
927.08 616.39 97.21 109.35 104.1
3
554.75 97.21
8 Brick
Tirunelveli
227.28 122.72 22.72 29.55 52.28 80.00 14.07
Total 4199.19 2819.6 376.98 516.43 486.13 2266.36 368.33
21
Table 4.5 List of Projects Recommended under MSE-CDP in Tamil Nadu
As on 31st March, 2019
Sl.No. Name Total
Project
Cost
GOI
Contribution
State Govt.
Contribution
SPV
Share
Bank
Loan
Final approval from GOI (Rupees in Lakhs)
1 Textile Knitting
cluster, Tiruppur,
Tiruppur Dt.
1535.93 835.93 300.00 400.00 0.00
Total 1535.93 835.93 300.00 400.00 0.00
In-Principle approval from GOI (Rupees in Lakhs)
1 Design Cluster,
Tiruppur, Tiruppur
Dt.
1479.64 1035.74 100.00 343.90 0.00
2 Lorry Body
Building,
Namakkal,
Namakkal Dt.
1661.99 1377.73 98.53 185.73 0.00
3 Home Furnishing
Cluster,Karur,Karur Dt.
1507.20 1229.69 100.00 177.51 0.00
4 Furniture cluster, Salem, Salem Dt.
1446.33 1156.85 100.00 189.48 0.00
5 Printing Cluster,
Salem, Salem Dt.
1350.23 1124.60 90.60 135.03 0.00
6 Power Loom Cluster
Palladam,
Thiruppur Dt,
1762.23 1250.00 100.00 412.23 0.00
7 Auto Loom and
Power Loom
Cluster, Rasipuram,
Namakkal Dt.
2010.66 1350.00 100.00 560.66 0.00
8 Apparel cluster, Tiruppur,Tiruppur
Dt.
1556.94 856.94 300.00 400.00 0.00
9 Sweater cluster
(Women), Coonor,
Nilgiris Dt.
283.98 227.18 28.40 5.00 23.40
Total 13059.20 9608.73 1017.53 2409.54 23.40
22
Chapter - V
NATIONAL MANUFACTURING COMPETIVENESS PROGRAMME
SCHEMES
5.1 Lean Manufacturing Competiveness Scheme
The Lean Manufacturing Scheme is basically a business initiative to
reduce “waste” in manufacturing process. The objective of the
Scheme is to enhance the manufacturing competitiveness of MSMEs
through application of various Lean Manufacturing Techniques (e.g.
Total Productive Maintenance (TPM), 5S, Visual control, Standard
Operation Procedures, Just in Time, Kanban System, Cellular Layout,
Poka Yoke, TPM, etc.). National Productivity Council (NPC) and Quality
Council of India (QCI) have been selected as National
Monitoring and Implementing Units (NMIUs) for the up-scaled scheme.
Awareness programmes and workshops are being organized in order
to create awareness among the entrepreneurs and further they are
motivated to form mini cluster comprising of 6 to 10 units (ideally 10
units) for availing the scheme. Lean Manufacturing (LM) consultants
are deployed to help the Special Purpose Vehicle (SPV)/Distinct
Product Group (DPG) for LM Interventions for a period of 18 months.
80% of the cost of hiring the lean manufacturing consultant (LMC) is
reimbursed through NMIUs to SPVs/Units and 20% of the cost is
borne by the SPVs/units. Around 47 LMCS Cluster was formed through
QCI and NPC and as of now in Tamil Nadu. Out which 10 are completed
and 37 clusters are in progress/implemented and the details of the LMCS
clusters are given below:
Table 5.1 Details of the LMCS Clusters in Tamil Nadu
Districts Total Lean Clusters
Under Progress Completed
Chennai 6 4 2
Coimbatore 10 8 2
Erode 1 1 0
Hosur 9 8 1
Karur 2 2 0
Namakkal 2 2 0
Tiruppur 16 12 4
Trichy 1 0 1
Total 47 37 10
23
5.2 Bar Coding Scheme
The aim of the scheme is to promote MSEs marketing at international level
through bar coding application. The scheme provides for reimbursement of
up to 75% of cost during the application (one time) and 75 % of the
recurring fee for first 3 years. During the financial year 2018-19, 2 units are
supported and Rs. 62,446 disbursed to the units under this scheme.
5.3 TEQUP SCHEME: Efforts were made to mobilize the applications for
product certifications and 90 applications received and awaited for
funds.
5.4 Intellectual Property Rights (IPR):
Intellectual Property is something produced using human intellect which
has commercial value. Protecting the value of the product or service is most
important in these competitive markets. Especially in the world of Micro
Small entrepreneurs, they are the one man army looking after, right from
purchase of raw material, production, marketing, working towards receiving
the payment. MSEs are so busy on their daily routine looking after
production, debtors and receivables, to expand their market these SMEs
must be creative; otherwise these units will slowly shutdown. To provoke
and make them aware about creativity and protecting them, MSME-DI
Chennai organized two awareness programmes in Chennai and Tiruppur.
A total of 154 participants attended and the programme informed about the
procedures on applying Patents, Copy Rights, Design, Geographical
Indications, Prior art search, schemes of IPR etc.
5.5 International Trade Fairs
To give encouragement to micro, small and medium enterprises in
marketing their products in the International Markets, O/o DC-MSME
participates in about 10 or more no of trade fairs every year. The MSME
Development Institutes invite applications from suitable micro, small units
under this scheme. The scheme supports a reimbursement of 100% air
travel on an economy class for 1 person per unit and limited to the expenses
of a total 1.25 lakhs. During this financial year 2018-19, 12 units got
benefited, the following below are the details of units participated in various
exhibition.
24
Table 5.2 List of Units participated in International Trade Fairs
S.No Name of the unit Name of
the fair
Date of
the Fair
Amount
Disbursed
1. Metro Clothing Company 2/499-B MPS Muthu Nagar
1st Street,Manal kadu, Veerapandi PO, Tirupur – 641604
India Sourcing
fair, St. Petersburg (Russia)
March 20-22, 2018
1,49,822
2. Carloo Textiles
S F No. 325/2B1 Vigneshwara Nagar,Nochipalayam,
Tirupur – 641605
India
Sourcing fair, St. Petersburg
(Russia)
March 20-
22, 2018
1,77,880
3. Kumar Creation
S F No. 321/2 Sri Muthusamy Goundar
Industrial complex, Pariyur amman Nagar, Nochipalayam, Tirupur
641605
India
Sourcing fair, St.
Petersburg (Russia)
March 20-
22, 2018
1,77,880
4. Fashion Encyclopedia
Imperial Bhavan, No.7 vinayagapuram 3rd st.
Rayapuram extn. Tirupur – 641601
India
Sourcing fair, St.
Petersburg (Russia)
March 20-
22, 2018
1,77,880
5. Naveena Apparels 343 Sathiya Nagar, Opp. Lakshmi Theatre,
Samundipuram, Gandhinagar PO, Tirupur
641603
India Sourcing fair, St.
Petersburg (Russia)
March 20-22, 2018
1,77,880
6. S V Knits
10/630 City Tower Building, Kunnankul palayam piruvu, Palladam Road, Tirupur
641605
India
Sourcing fair, St. Petersburg
(Russia)
March 20-
22, 2018
1,77,880
7. Inter Knit Fashion SF 238 K Chettipalayam Dharapuram Road
Tiruppur - 641608
India Sourcing fair, St.
Petersburg (Russia)
March 20-22, 2018
1,74,250
8. Majestic Exports 9 & 10 Malligai Nagar,
College Road,Tiruppur – 2
India Sourcing
fair, St. Petersburg (Russia)
March 20-22, 2018
1,77,880
09. Five Elements International 13 Padmavathipuram,
India Sourcing
March 20-22, 2018
1,77,880
25
Gandhi Nagar Po, Tiruppur -
641603
fair, St.
Petersburg (Russia)
10. Sri Ramkarthic Polymers (Pvt). Ltd.,
D.No. 2/1-1 & 2, SF No: 237/1B & 2A, Kottaipalayam, Pachayat,
Coimbatore – 641 110
India Sourcing
fair, St. Petersburg (Russia)
March 20-22, 2018
1,31,912
11. Best Forgings India Pvt. Ltd.
15A Private Industrial Estate, Sidco post,
Coimbatore 641021
India
Sourcing fair, St.
Petersburg (Russia)
March 20-
22, 2018
1,75,581
12. M/s Brothers, 21/29, Alagumenaal Complex, College Road,
Karaikudi, Sivagangai-630002
22nd Chinese New Year
Shopping Festival in
Chengudu City, China
February 05-11, 2018
1,28,450
Total 20,05,175
5.6 Business Incubators
The Aim of the scheme is to promote emerging technological and knowledge
based innovative ventures that seek the nurturing of ideas from
professionals, to promote and support untapped creativity of individual
innovators and also to assist Individual innovators to become technology
based entrepreneurs and to promote networking and forging of linkages with
other constituents of the innovation chain for commercialization of their
developments. The Scheme support each incubates on an average of 6.25
lakhs for a new business. For this financial year 2018-19, 33 incubation
applications (33 colleges) were applied for the state of Tamil Nadu.
5.7 ZED Scheme
The scheme is an extensive drive to create proper awareness in MSMEs
about ZED manufacturing and motivate them for assessment of their
enterprise for ZED and support them. After ZED assessment, MSMEs can
reduce wastages substantially, increase productivity, expand their market
as IOPs, become vendors to CPSUs, have more IPRs, develop new products
and processes etc.
26
Chapter VI
PUBLIC PROCUREMENT POLICY
Government of India has introduced Public Procurement Policy for
Micro and Small Enterprises (MSEs) Order, 2012 which was notified
under MSMED Act 2006, and effective from 1st April, 2012.Under
the Policy, every Central Government Ministries, Departments and
Public Sector Undertakings shall procure minimum of 20 per cent of their
total annual value of goods or services from Micro and Small Enterprises
which became mandatory from 1st April 2015.
As per the Public Procurement Policy for MSE Order, 2012, MSEs
having registration with District Industries Centre(DIC) or Khadi and
Village Industries Commission(KVIC) or Khadi Village and Industries
Board (KVIB) or Coir Board or National Small Industries Commission
(NSIC) or Directorate of Handicrafts and Handlooms or any other body
specified by Ministry of MSME are provided certain benefits under the said
Policy.
For ease of registration of Micro, Small and Medium Enterprises
(MSMEs), Ministry of MSME has started Udyog Aadhar Memorandum
which is an online registration system (free of cost) w.e.f. 18th
September, 2015 and all Micro & Small Enterprises (MSEs) who are
having Udyog Aadhaar Memorandum should also be provided all the
benefits available for MSEs under the Public Procurement Policy for Micro
and Small Enterprises(MSEs),Order 2012.
In order to create awareness and also to have direct interaction with buyers
and sellers, Vendor Development Programmes are arranged at the
National as well as State level by the Office of DC-MSME through its
various field offices.
For the Financial year 2018-19, MSME-DI, Chennai has disseminated
Public procurement policy Guidelines at numerous occasions such as
Udhyam Samaagams.
Officials from MSME-DI attended in about 10 vendor development
programmes organized by PSUs across the State of Tamil Nadu. The details
are given below.
27
Table 6.1 Details of Vendor Development Programmes attended by
MSME-DI Officials
S.no Name of the Meeting
Name of the PSUs / GOI organized
Place No. of Unit participated
1 Vendors meets Indian Oil corporation ltd
Chennai 90
2 Awareness on PPP Balmer Lawrie Chennai 3
3 Special vendors meets
Indian Oil corporation ltd
Chennai 110
4
Awareness on PPP Indian Oil corporation ltd
Chennai 15
6 Special vendors Development
Programme
Integral Coach Factory
Chennai 94
7 Special vendor
Development programme
NSIC Coimbatore 150
8 Special vendor Development
programme
NSIC (SC/ST hub)
Kanchipuram 61
9 Special vendor
Development programme
NSIC (SC/ST
Hub)
Chennai 61
10 Vendor Development Meet
Rail wheel Golden rock
Trichy 50
11 Udhyam Samaagam MSME-DI Chennai
Chennai 210
12 Udhyam Samaagam Br.MSME-DI Coimbatore
Coimbatore 150
13 Udhyam Samaagam MSME-DI Chennai
Puducherry 110
14 Udhyam Samaagam MSME-DI
Chennai
Madurai 130
28
Chapter- VII
UDYAM SAMAAGAM
Udyam Samaagam is a two days conclave for entrepreneurs focussed on
disseminating up to date information on technical knowhow, enhance their
marketing avenues, export, import, B2B platform with public sector units,
financial support awareness through different financial supporting agencies,
awareness about state and Central Government Schemes/ polices and so on
for the overall development of SMEs to become competitive in the market.
In the state of Tamil Nadu, MSME- Development institute Chennai,
organized four Udyam Samaagam. These Udyam Samaagams were focussed
on industries such as Textiles, Agriculture and Food Processing, General
Engineering, Plastic & Services industries. The two days event covered the
following themes to encourage SMEs for the possible new/ existing avenues
for the development:-
A. Challenges, Opportunities & Way forward for MSME enterprises in
General Engineering & Auto Components Manufacturing Sector
B. Textile & General Engineering Industry- Present Scenario, challenges
& opportunities
C. Agri-Entrepreneurship- Challenges, Opportunities & Way forward for
Agro & Village Enterprises.
D. Challenges, Opportunities & Way forward for MSME enterprises in
Plastic, General Engineering & Services Sector.
Under these four themes following were organized:
• Public Procurement Policy & Vendor Registration Procedures of PSUs.
• Role of Technology & Innovation with focus on Artificial Intelligence &
IoT
• Textile Industry in Tamil Nadu- Present scenario, Challenges &
Opportunities
• Product Innovation & Supply chain management
• Challenges and Opportunities in Agro-based & Food Processing
Industries
• Agri-Entrepreneurship Development and New Technologies from Lab
to Land
• Agri Business- Key to development of Aspirational Districts
29
• MSE- Cluster Development Program: Way to Agri & Rural Enterprises
Development
• Tourism & Hospitality Industry- Present Scenario & untapped
potential.
• Challenges & Opportunities in Polymer, Plastic Industries
• General Engineering Industries: Present issues & opportunities
• Automobile Sector Quality Control & Product Certification
• Automobile Design, Technology Transfer & Energy Saving
• EXIM Policy Seminar
Further in all the four Udyam Samaagam, exhibition was organized on the
sidelines of the 2 days Udyam Sangam Conclave to display of raw materials
& final goods produced by them and ensure interaction between various
players in the Industry to enable marketing support to MSMEs. The
Exhibition includes, exhibiting of products and services by MSMEs,
showcase of commercially viable technologies by International & National
Institutions, exhibiting of Innovative machineries, information dissemination
counters by offices of Ministry of MSME (NSIC, KVIC, Testing Centres) &
Govt. of Tamil Nadu, display of Success stories by MSMEs and stalls by
SLBC and Banks for information dissemination on GoI schemes like
MUDRA, Stand Up India & Bank specific loan packages for MSMEs.
The programme covered Public sector units such as Southern Railways,
Ordnance Clothing Factory, Integral Coach Factory, Indira Gandhi Centre
for Atomic Research, Bureau of Indian Standards, Bharat Heavy Electricals
Limited, Bharatiya Nabhikiya Vidyut Nigam Ltd, The Steel Authority of India
Ltd, National Small Industries Corporation Limited, PCRA, Central Institute
of Tool Design, Neyveli Lignite Corporation Limited, Bharath Petroleum
Corporation Ltd and Madras Atomic Power Station etc participated and
interacted with SMEs and start-ups on how to register as vendor with them
and also presented their requirement to entrepreneurs.
In total 404 units exhibited their products and almost 8000 visitors
attended the 2 days event. The following table shows the Udyam Samaagans
organized in various district.
30
Table 7.1 Details of Udyam Samagams organised in Tamil Nadu &
Puducherrly
Udyam Samaagam organized in Tamil Nadu 2018-19
S.no District No . of units
exhibited
No. Of visitors
(approx)
1 Chennai 120 3000
2 Madurai 120 2000
3 Coimbatore 84 2000
4 Puducherry 80 1000
31
PHOTO GALLERY
32
UDYAM SAMAAGAM AT CHENNAI 4th and 5th March 2019
33
UDYAM SAMAAGAM AT COIMBATORE 6th and 7th March 2019
34
UDYAM SAMAAGAM AT PUDHUCHERRY 13th and 14th March 2019
35
UDYAM SAMAAGAM AT MADURAI 6th and 7th March 2019
36
OTHER SIGNIFICANT PROGRAMMES ORGANIZED BY MSME-DI
CHENNAI IN 2018-19
Awareness Programme on Intellectual
property Rights
Industrial Motivational Campaign
Industrial Motivational Campaign
Swachh Bharat Campaign at Chennai
Rastriya Ekatha Divas Swachh Bharat