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