Micro, Small and Medium Enterprises Department

Policy Note - 2012-13 1. Introduction

In 1973, the British Economist E.F.Schumacher authored his seminal work, Small is Beautiful. The Times Literary Supplement ranked it among the 100 most influential books published since the Second World War. small, believed better. to In It champions empower his the cause of that more, are in appropriate technologies people

Constituting enterprises in

as

high

as

90%

of

most

countries

worldwide,

Micro, Small and Medium Enterprises are the driving force behind a large number of innovations and contribute to the growth of national economies through employment Their creation, investment and exports. distribution economies of cannot wealth be in

contribution to poverty reduction and a wider developing It is under-rated.

estimated that there are around 15 Crores MSMEs in 130 Countries employing about 65% of the total labour force. 1.1 The Global perspective and the Indian scenario Worldwide, the MSMEs have been

contrast with phrases such as bigger is perceptive analysis, Schumacher conceptualized that Micro, Small and Medium Enterprises occupy an important and strategic place in the economic growth and equitable development in all countries.

accepted as the engines of economic growth for promoting equitable development and have emerged as the single most important sector generating employment, next only to
2

the agricultural sector. manufacturing, services,

They encompass a in the agritrade and

persons spread over 26.1 million enterprises. It is estimated that in terms of value, the MSME sector accounts for about 45% of the manufacturing output and around 40% of the total exports of the Country.

heterogeneous group of activities business sectors. The major

advantage of

this sector is its employment potential at low capital cost. The labour intensity of the MSME sector is much higher than that of the large enterprises. In India too, the MSMEs play a pivotal role in the economy of the Country. In recent years, this sector has consistently registered higher growth rates compared to the overall Industrial dynamism, Sector. the With sector its has agility shown and an

1.1.1 MSMEs in Tamil Nadu There are 7.60 lakhs registered MSMEs in this State, providing employment to 52.99 lakhs persons with a total investment of more than Rs. 39,438 Crores as on 31.03.2012. As per the 4th All India Census for MSMEs, Tamil Nadu accounts for the largest number of MSMEs in the Country (15.07%). Further, it has the second largest number of Medium Enterprises (12.51%) and the third largest number of Small Enterprises in the country (9.97%)

admirable innovativeness and adaptability to survive the recent economic downturn and recession. As per the available statistics,

(4th All India census of the MSME sector), this sector employs an estimated 59.7 million
3

Growth of the SSI (MSME) Sector over the Plan periods in Tamil Nadu

1.2

Significant Initiatives taken by the Department The Honble Chief Minister had taken up

Period

No. of registered SSI (MSME) Units 7,544

Invest ment (Rs. in Crores) 325.74

Production (Rs. in Crores) 1,391.24

Employ ment (Nos.) 22,164

a wide-ranging and comprehensive review of the MSME Department on 14.07.2011 and issued several specific directives that led to significant initiatives by the Department, as delineated henceforth: Orders were issued in G.O. (Ms).No. 22 MSME (A) Department, dated 02.08.2011, sanctioning a Support Price of Rs. 2/- Kg. for green leaf tea procured from about 14,000 Small Tea Grower Members of Industrial Cooperative Tea Factories in the Nilgiris District from May 2011 to December 2011. A sum of Rs.11.20 Crores was sanctioned by this measure. This was followed up by letter dated This initiative 05.03.2012 of the No.809/A/2012-1, March 2012.

End of V Five Year Plan (1974-79) End of VI Five Year Plan (1980-85) End of VII Five Year Plan (1985-90) End of VIII Five Year Plan (1992-97) End of IX Five Year Plan (1997-02) End of X Five Year Plan (2002-07) End of XI Five Year Plan (2007-12)

45,891

829.84

3949.53

4,48,163

99,290

2,198.92

7,322.69

9,28,464

255,694

6,547.73

17,055.42

22,57,055

4,19,524

12,166.19

83,904.80

31,04,477

5,30,552

16,819.82

1,05,979.51 37,03,408

7,60,269

39,438.13

1,66,951.19

52,99,875

permitting the utilization of this subsidy upto Government has been widely appreciated.

A special scheme has been sanctioned for the strengthening of testing facilities in the Central Electrical Testing Laboratory at Kakkalur at a cost of Rs. 63.00 Lakhs, in G.O. (D) No.100, MSME (G) Department, dated 25.10.2011. This institution under the control of the Commissionerate of Industries and Commerce was identified as one of the agencies for testing samples of Electric Fans, Mixies and Grinders. This would aid the process of quality control of Governments Flagship of in these Programme items for free was distribution sanctioned Programme dated which

the ceiling of subsidy for generators from Rs.1.5 Lakhs to Rs.5 Lakhs with effect from 11.11.2008. It has also enhanced the capacity of generator sets eligible for subsidy from 125 KVA to 320 KVA. The Government have also directed that the enterprises which would benefit by these measures, but who have not filed their application so far, would be given a time limit of three months from the date of issue of the Government Order, to file subsidy applications with their respective authorities as a special case. In keeping with its commitment to the creation of a new District Industries Centre for Ariyalur District, the Department issued orders in G.O.Ms.No.17, MSME (F) Department, dated 09.04.2012, sanctioning the same. It has authorized the creation of an entity, comprising a complement of eighteen officials of various categories,
8

G.O.Ms.No.2,

Special

Implementation 03.06.2011.

Department,

As an ameliorative measure to help Micro, Small and Medium Enterprises, this Department in G.O. (Ms).No. 12 MSME (D2) Department, dated 19.03.2012 has enhanced
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headed by an officer in the rank of General Manager (Grade II), with a sanctioned annual expenditure of Rs.77,24,132/-. It has therefore been ensured that every District in the State has now been sanctioned a District Industries Centre. It would be the Departments endeavour to operationalise the centre in the shortest possible time. 1.91 acres of land in the Guindy Institute

Entrepreneur-cum-Enterprise

Development

Scheme to be implemented from 2012-2013 onwards. This is specifically aimed at First Generation Entrepreneurs. Under this scheme, educated youth will be given entrepreneur training, assisted to prepare their business plans and helped to tie-up with financial institutions to set up new business ventures, besides linking them with major industrial clients. assisted in availing Nadu term Banks/Tamil Industrial They will be loans from Investment

Industrial Estate has been allotted to the Entrepreneurship G.O.Ms.No. 43, Development MSME (EDI) to construct a Training complex vide (D1) Department, dated 04.11.2011. A sum of Rs. 1 crore

Corporation (TIIC) with capital subsidy at 25% of the project cost, not exceeding Rs. 25 Lakhs and soft loans with 3% interest subvention. Around 1,000 entrepreneurs are expected to be trained each year under this scheme. At least 50% of the beneficiaries would be women. The EDI and TIIC will play a crucial role in this process.
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towards a recurring grant to EDI has also been sanctioned in G.O.Ms.No. 49, MSME (D1) Department, dated 15.12.2011. As new directed by the Honble Chief New

Minister, the Department has formulated a scheme called

9

(NEEDS)

TANSI has embarked on an aggressive marketing strategy and a new show room was inaugurated at Namakkal on 16.12.2011. Civil works are currently under progress for a show-room at Tiruchirappalli, which is expected to be inaugurated shortly. The feasibility of opening a show room at Madurai is also under examination. The Government of Tamil Nadu has adopted the Cluster Development approach as a key strategy of for enhancing and the Small productivity and competitiveness as well as capacity building Micro Enterprises (MSEs) in the State. SIDCO has been nominated as the implementing agency for this on-going scheme vide G.O.Ms. No.24, MSME Department, dated 09.08.2011. In 2012-2013, it is proposed to take up twenty Industrial Clusters for implementation.
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Fifty projects have been identified in Tamil Nadu for implementation. under implementation. grant of Rs. 39.89 Seven of these have been completed and eight are For these projects, Crores and the the Government of India has sanctioned a Government of Tamil Nadu has sanctioned

a matching grant of Rs. 4.97 Crores. The completed projects include the six Safety Matches Clusters at Gudiyatham, Sathur, The Virudhunagar, Srivilliputhur,

Kazhugumalai and Kovilpatti along with the Wet Grinder Cluster at Coimbatore. projects under implementation are the Coir Cluster at Singampunari, the Ceramic Cluster at Virudhachalam, the Brick Cluster at Tirunelveli, the Sago Cluster at Salem, the Engineering Clusters at Hosur and Ranipet, the Printing Cluster at Sivakasi and the Rice Mill Cluster at Keelapavoor. In 2012-2013,

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twenty cost of

such clusters will be taken up for Rs.136.07 Crores of which

fire accident at the Commissionerate Office complex in Chepauk on 15.01.2012. Commissionerate has been The temporarily

implementation at an estimated total project Government of Indias grant portion will be about Rs.97.30 Crores and the Government of Tamil Nadus grant will be about Rs.10.48 Crores. To implement this scheme expeditiously, SIDCO has been directed to strengthen the schemes wing by recruiting Engineering Graduates to deal with the projects and ten additional posts in the cadre of Assistant Development Officer have been sanctioned. The Department is especially thankful to the Honble Chief Minister for sanctioning a special grant 14 of Rs.1.5 (F) Crores in G.O.(Ms).No. MSME Department,

shifted to the TAICO Bank Head Office building at Raja Annamalaipuram and started functioning from the new premises on 18.01.2012. Commendable work has been done in restoring normalcy in the shortest span of time. Apart from this, in its G.O.(Rt).No. 48 MSME (E) Department, dated 09.03.2012, this Department has reduced the quantum of Nomination charges to be paid henceforth by TANSI to 10% from the 15% which was being remitted by the Public Sector Undertaking so far. This will enable the organization to utilize the monies saved for investment in plant and machinery, thereby facilitating its programme of modernization.

dated 21.03.2012, as immediate relief for re-locating the office of the Commissioner of Industries and Commerce, consequent to the
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14

For 2010-2011, TANSI has remitted an amount of Rs.14,39,42,000/- to Government as payment of dividend, nomenclature as Nomination Charges. Similarly, for the same period, SIDCO remitted a dividend of Rs. 87,00,000/- to Government. Apart from this, INDCOSERVE made a payment of Rs.15,36,000/- as dividend for the period in question. These amounts were remitted to Government on 02.12.2011. In made Fund. response appeal, a to the the Honble contribution Chief of

1.3 Micro, Small and Medium Enterprises Department This Department comprises of a. The Commissionerate and Commerce of Industries

b. The Tamil Nadu Small Industries Development Corporation Limited (TANSIDCO) c. The Tamil Nadu Small Industries Corporation Limited (TANSI) and d. The Entrepreneurship Institute (EDI). Development

The Commissionerate of Industries and Commerce, the Tamil Nadu Small Industries Development (TANSIDCO) and Corporation the Tamil Nadu Limited Small

Ministers

MSME Department

cumulative

Rs.55,88,108/- to the Thane Cyclone Relief The Cheque for the amount was handed over to the Honble Chief Minister on 21.02.2012, by the Honble Minister for Rural Industries and Nutritious Noon Meals.

Industries Corporation Limited (TANSI) play a catalytic role by rendering yeoman services in issuing industrial clearances and granting subsidies, allotment of industrial plots, providing and developing of infrastructure facilities and supply of plant and machineries

15

16

required

by

the

Micro,

Small

and

Medium. statutory

The

Act

also

provides

for at

Medium Enterprises. The Entrepreneurship Development Institute, popularly called EDI was constituted by the Government in 2001 with the aim of fulfilling the long felt need for creating an apparatus for catering to the training needs of small scale industries. 1.4 The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 The Micro, Small and Medium

consultative

mechanism

the

National level with balanced representation of all sections of stake-holders, particularly the three classes of enterprises; and with a wide range of advisory functions. As per the MSMED Act, the enterprises are classified into manufacturing and service enterprises based on their investment in plant and machinery / equipment (excluding land and buildings) as indicated below:Manufacturing Enterprises
Micro Manufacturing Enterprises Small Manufacturing Enterprises Medium Manufacturing Enterprises Upto Rs. 25 Lakhs

Enterprises Development (MSMED) Act, 2006 seeks to facilitate the development of these enterprises legal and also for enhance of their the It competitiveness. framework It provides the first-ever recognition

Above Rs.25 Lakhs and upto Rs.5 Crores - Above Rs. 5 Crores and upto Rs.10 Crores

concept of enterprises which comprises both manufacturing and service entities. defines Medium Enterprises for the first time and seeks to integrate the three tiers of these enterprises, namely, Micro, Small and
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Service Enterprises
Micro Service Enterprises Small Service Enterprises Medium Service Enterprises - Upto Rs. 10 Lakhs - Above Rs. 10 Lakhs and upto Rs. 2 Crores - Above Rs. 2 Crores and upto Rs. 5 Crores

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1.5

The Micro, Small and Industries Policy 2008

Medium

through various schemes implemented by the State during the XI Plan period are given below:Employment generation in the MSME Sector during the XI Plan period (as on 31.03.2012)
S. No Scheme Nomen clature PMRY / PMEGP Scheme NAMT / UYEGP MSME Registra tion (EM Part II) Cottage Industries Registra tion Handi crafts Industries Registra tion Industrial Co-opera tives Total Employment Generation 200708 52655 200809 22712 200910 20968 201011 20080 201112 8700 Total

Consequent to the introduction of the above Act, Government Policy to of Tamil Nadu the introduced the Micro, Small and Medium Industries enhance competitiveness of the Micro, Small and Medium Enterprises sector to sustain the annual growth rate of over 10 per cent for MSMEs and to generate direct and indirect employment opportunities to the tune of 10 Lakhs during the XI Five Year Plan period. The objective of generating 10 Lakhs employment opportunities is sought to be achieved by motivating entrepreneurs in the State to take and of up self employment and
5. 4. 3.

1.

125115

2.

1180

370

343

1054

12272

15219

72972

63013

88036

221930

219620

665571

13958

14280

21644

51322

48169

149373

8134

8402

13905

33189

30282

93912

industrial ventures through various financial incentives The details promotional employment schemes generated
6.

1700

1569

1133 146029

2570

1122

8094

announced in the MSME Policy of the State.

150599 110346

330145 320165 1057284

19

20

The Policy focuses on the development of MSMEs in the State through incentive schemes, marketing simplification, infrastructure support, development, and and technology up-gradation, skill development, deregulation reforms administrative

capacity building for potential and existing entrepreneurs and ordered the sanctioning of Rs.50 Crores in this regard, as a long lasting solution. With this objective, the Department has proposed to revamp them in all the 32 Districts in the State. the It would include and Further, Capacity human a with reconstruction renovation

rehabilitation of sick enterprises in the State. 1.6 Road Map for 2012-2013 After Department her on review of the the MSME Honble 18.03.2012,

modernization of all the existing buildings in the various District Head quarters. enabled communication facilities. building resources synchronize requirements component Industries and re-training of along with form the available, them would of this these will be provided with modern IT-

Chief Minister had indicated a series of decisive and categorical policy parameters, which would form the blue-print for the Departments Road Map for 2012-2013. Re-iterating the fact that the District Industries Centres form the bedrock of MSME promotion, she directed that they be urgently strengthened, revitalized and transformed to play a pro-active role in advocacy and
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restructuring of the staffing pattern so as to contemporary an important District in rental

process. functioning

Centres

buildings would also be suitably up-graded.

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Expressing her immense satisfaction at the Department having formulated the NEEDS scheme viz. New Entrepreneurcum-Enterprise Development Scheme for first generation entrepreneurs in accordance with her directive issued on 14.07.2011, the Honble Chief Minister ordered the provision of a sum of Rs.100 Crores as Capital subsidy and other assistance for this scheme in this Budget. She further directed that the scheme be implemented trained women, each with from year. 2012-2013 It was being her onwards, specific to ensuring that around 1,000 entrepreneurs be directive that 50% of the beneficiaries be priority accorded destitute women. The Honble Chief Minister was of the considered opinion
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Development Approach would evolve as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises in the State. In this context, she ordered the taking up of twenty Industrial Clusters for implementation in 2012-2013. Taking note of the urgent need for the modernization the Honble and Chief up-gradation Minister of the the Industrial Co-operative Tea Factories in Ooty, directed sanction of Rs.6 Crores towards improving the operational efficiency of these units. While complimenting TANSI for its

exemplary performance, she indicated that the organization would do well to go in for sustained investments in modernization of its plants and machinery, in conjunction with the adoption of an aggressive marketing strategy that would include the opening of
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that

the

Cluster

new

show

rooms

in

Tiruchirappalli

and

Madurai. The Honble Chief Minister directed

2.

The Commissionerate of Industries and Commerce

The Commissionerate of Industries and

SIDCO to take up infrastructure work in the newly formed Industrial Estates and upgradation works in the existing estates, in a phased manner. This Department proposes to strategize its action plan for 2012-2013, encompassing the various directives issued by the Honble Chief Minister, so as to ensure the appropriate and effective facilitation of Small and Medium Enterprises in the State.

Commerce is the nodal agency for the development of industries in general and micro, small and medium enterprises in particular, in the State. There are at present, District Industries Centres (DICs) functioning in 31 Districts excluding Chennai. In Chennai, the Regional Joint Director facilitates These prospective entrepreneurs in starting and sustaining Industrial Enterprises. Centres provide a variety of escort services to the entrepreneurs, like, identification of activities, the preparation of project profiles, obtaining financial assistance from various financial from sanction subsidies. institutions, and statutory clearances of eligible Government Departments and the disbursement

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26

2.1 Filing of Entrepreneur Memoranda The filing / of service an Entrepreneur and

acknowledgement instantly, without visiting the District Industries Centres. This scheme of online filing has evoked a good response from the entrepreneurs. 2,29,942 Entrepreneur Memoranda (Part-I) and 1,35,868 Entrepreneur Memoranda (Part-II) have been issued online as on

Memorandum is optional for micro and small manufacturing enterprises medium service enterprises, but compulsory for medium manufacturing enterprises as per the MSMED Act, 2006. may the now file this Any person who on a intends to start a micro or small enterprise memorandum, District voluntary basis, in the prescribed format with General Manager, Industries
Year

31.03.2012.
Increasing trend in the filing online Entrepreneur Memoranda
EM Part I % of EM Manual filed online 0.0 49.3 82.5 84.5 88.1 27209 22642 10673 16514 18867 9407 31126 41388 51891 EM Part II % of EM Online Total filed online 27209 32049 41799 57902 70758 0.0 29.4 74.5 71.5 73.3

Centre of the concerned District or to the Regional Joint Director of Industries and Commerce, in Chennai. The Department has introduced a user friendly system for the Online filing of the Entrepreneur Memoranda, Parts I and II, by which any MSME entrepreneur can log on to the website www.msmeonline.tn.gov.in and file his application online and obtain the EM
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Manual Online

Total

20072008 20082009 20092010 20102011 20112012

35072 22037 11711 12059 9999 21395 55177 65760 73935

35072 43432 66888 77819 83934

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As seen from the above data, the percentage of online filing of EM Part I & EM Part II has gone up significantly over the years. 2.2 Incentive Schemes The following incentive schemes are being extended to micro, small and medium enterprises in the State:2.2.1 Exclusive subsidy schemes for micro manufacturing enterprises established in the State

100% subsidy on the net value of Value Added Tax (VAT) paid by them for the first 6 years up to the value of investment made in plant and machinery, reimbursed on a quarterly basis. Stamp duty exemption on mortgaged and pledged documents.

15% capital subsidy on the value of eligible plant and machinery subject to a maximum of Rs.3.75 Lakhs.

2.2.2 Subsidy schemes for micro, small and medium manufacturing enterprises established in industrially backward blocks and agro based enterprises set up in all the blocks in the State. Micro, Small and Medium Manufacturing Enterprises coming up in 251 industrially backward promoted Government TANSIDCO, blocks, by etc., all the Agencies industrial Government like (excluding estates and SIPCOT, Industrial

20% low tension power tariff subsidy for 36 months from the date of commencement of commercial production or from the date of power connection, whichever is later.

Estates located within a radius of 50 Kms. from Chennai city centre) and agro based

29

30

enterprises set up in all the 385 Blocks in the State are eligible for the of incentives:i. 15% capital subsidy on the value of eligible plant and machinery subject to a maximum of Rs.30 Lakhs. 5% additional employment intensive subsidy on the value of eligible plant and machinery for providing employment to 25 workers for 3 years within the first 5 years from the date of commencement of commercial production, subject to a maximum of Rs.5 Lakhs. 5% additional capital subsidy on the value of eligible plant and machinery for enterprises set up by women, SC/ST, differently abled and transgender entrepreneurs subject to a maximum of Rs.2 Lakhs. 25% additional capital subsidy on the value of eligible plant and machinery installed to promote cleaner and
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following package

environment friendly technologies subject to a maximum of Rs.3 Lakhs and with certification by the Tamil Nadu Pollution Control Board. v. 20% low tension power tariff subsidy for 36 months from the date of commencement of commercial production or from the date of power connection whichever is later.

ii.

iii.

iv.

32

33

34

35

36

2.2.3 Special Capital Subsidy for Thrust Sector Enterprises set up in the State A Special Capital Subsidy of 15% on the eligible plant and machinery (subject to a maximum of Rs.30.00 Lakhs) is extended to the 13 thrust sector enterprises and setup Leather Energy anywhere in the State viz., Electrical and Electronic and Industry, Leather goods, Auto parts and components, Drugs Pharmaceuticals, Solar Equipment, Gold and Diamond Jewellery for exports, Pollution Control equipments, Sports Goods Food and Accessories, Plastic Cost and effective Rubber building materials, Processing, Industries. Readymade Garments,

2.2.4 Generator Subsidy Micro, Small and Medium manufacturing enterprises anywhere in the State, which purchase Generator sets up to 320 KVA capacity are eligible for a Generator Subsidy at 25% of the cost of the generator set, subject to a maximum of Rs.5 Lakhs. 2.2.5 Back-ended Interest Subsidy

Back-ended interest subsidy at the rate of 3%, subject to a maximum of provided to Micro, Small and Rs.10.00 Medium Lakhs for a period of 5 years is being Manufacturing Enterprises for term loans up to Rs.100 Lakhs for Technology up-gradation / modernization National Equity Fund (NEF) Scheme ISO certification

37

38

Research and development resulting in registration of patents and intellectual property rights Credit Guarantee Scheme (CGFTS). Fund Trust

Creation of a Technology Development Fund for evolving cleaner / energy efficient / IT enabled technologies. Assistance for creation of Centres of Excellence and Technology Business Incubators for introduction of new production techniques and design development to the tune of Rs.50 Lakhs per incubator / centre of excellence.

2.3 Schemes for Technology Development The following are the schemes available to MSMEs for technology development: 50% subsidy on the cost of filing a patent application subject to a maximum of Rs.2 Lakhs per application. 50% of the cost of the application for trade mark registration or Rs.25,000/- whichever is less. Establishment of industrial clusters and mini tool rooms under the Public Private Partnership mode by providing 25% of the total project cost subject to a maximum of Rs.1 Crore as assistance.
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2.4

Marketing support The Government provides the following

marketing

support

to

micro

and

small

manufacturing enterprises: 15% price preference for purchase of goods of domestic micro and small manufacturing enterprises as provided in the Tamil Nadu Transparency in Tenders Act, 1998.

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Purchase preference for items notified from time to time by the State Government. Waiver of Earnest Money Deposit for participation in tenders. 50% grant on hall rent for participation in exhibitions within the State and also in other States by MSME Associations. Support for marketing under a common banner or brand name. Policy for Rehabilitation of Sick Micro, Small and Medium Enterprises

Institutional Committee (SLIIC) constituted by the Reserve Bank of India and its recommendation to the Empowered State Level Rehabilitation Committee (SLRC) for rendering rehabilitation assistance to sick Micro, Small and Medium Enterprises. The guidelines for the implementation of the rehabilitation package announced in the Policy will be issued by the Government shortly taking into account the recommendation of the Micro, Small and Medium Enterprises Task Force constituted by the Honble Prime Minister. 2.6 The Prime Ministers Employment Generation Programme (PMEGP) The Government of India, Ministry of MSME, have introduced a credit linked subsidy scheme called the Prime Minister's Employment Generation Programme

2.5

An appropriate rehabilitation package for the rehabilitation of sick Micro, Small and Medium Enterprises in the State was The announced in the MSME Policy 2008. a diagnostic study of of sick State

policy envisages assistance for conducting of enterprises, Level Inter scrutiny of the diagnostic study reports by a sub-committee the
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42

43

44

45

46

(PMEGP) by merging the earlier schemes of the Prime Minister's Rozgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP) in 2008. This scheme aims at empowering the first generation entrepreneurs to set up micro enterprises. This scheme provides loans up to Rs.10 Lakhs to set up service enterprises and up to Rs.25 Lakhs to set up manufacturing enterprises. At the national level, the Khadi and Village Industries Commission (KVIC), acts as the nodal agency. In the State, the scheme is implemented through the (KVIB) and District Industries Tamil Centres Nadu Khadi and Village Industries Board through the nationalized banks. The achievements under the years. PMEGP

pending. A sum of Rs.31.03 Crores has been released by the KVIC in 2011-12 to settle the pending claims with the various banks, and an amount of Rs.11.85 Crores is awaited, to settle the remaining claims. 2.7 Single Window Clearances To facilitate the entrepreneurs and to expedite the process of getting approval from various Pollution Generation Department District agencies Control and and like the Tamil Tamil Nadu Nadu Board, Distribution Local

Corporation a in Single each

Limited, Fire Services, the Public Health Bodies, (DIC) Window Agency has been constituted. The Industries Centre District serves as a Single Window Agency providing entry level essential services to the eligible Micro, Small and Medium Enterprises.

have exceeded the targets for the past three As on 31.8.2011, claims towards Rs.42.88 Crores were
47

margin money of

48

2.8

Micro and Small Facilitation Councils Government have and Micro Small at

Enterprises four

youth in socially and economically weaker sections of the society by way of selfemployment through the setting up of micro enterprises in the manufacturing, services and business sectors. Under this scheme, the maximum financial assistance available for manufacturing / Services / Business activities are Rs.5 Lakhs, Rs.3 Lakhs and Rs.1 Lakhs respectively, including 15% subsidy of the Government on the Project Cost. The promoter's contribution is 10% and 5% of the project cost in respect of the General category and the Special category respectively. Any individual above 18 years and with a minimum educational qualification of having passed the VIII standard is eligible to benefit under the scheme. The upper age limit for the General Category is 35 years and upper age limit is 45 years for

constituted

Regional Facilitation

Enterprises Chennai,

Councils

Tiruchirappalli, Madurai and Coimbatore to facilitate speedy settlement of the payments of dues with respect to the goods supplied to major industrial undertakings by the micro and small enterprises in accordance with the Micro, Small and Medium Enterprises Development Act 2006. In the financial year 2011-12, 15 MSEFC sittings were conducted and Rs.233.86 Lakhs have been realised by the micro and small enterprises. 2.9 The Unemployed Youth Employment Generation Programme The being Unemployed Youth Employment aims to

Generation Programme (UYEGP) which is implemented since 2011 mitigate the unemployment of the educated
49

50

51

52

53

54

the Special Category comprising SC / ST / BC / MBC / Minorities / Women / Exservicemen / Differently abled individuals / Transgenders. In 2011-12, the Scheme, an amount of Rs.15.00 were

Organizations, the Central Electrical Testing Laboratory, Kakkalur was established. This modern laboratory is accredited to the NABL (National Accreditation Board for Testing and Calibration Laboratories) and is recognized by the BIS (Bureau of Indian Standards). It offers testing facilities for more than 160 electrical products / equipments including electrical appliances, cables, lamps, energy meters etc., in accordance with the relevant Indian Control Standard / Marking Specifications Organizations, besides Private calibration facilities. BIS, DGS&D, Quality Manufacturers and various State and Central

Crores was allocated towards subsidy. Under 14,382 applications forwarded to the banks with a subsidy component to the tune of Rs.45.65 Crores. Sanctions of loans have been made by financial Institutions for 5,241 with a subsidy component Crores. 2.10 2.10.1 Testing Services, Training and Infrastructure Facilities Electrical Kakkalur Testing Centre at beneficiaries of Rs.14.76

Government Departments/ Undertakings are major samples beneficiaries. have been In 2011-12, 6,327 a tested, yielding

To cater to the needs of Micro, Small and Medium Electrical and

55

revenue of Rs.183.69 Lakhs to Government.

and

Electronics Marking
56

Enterprises

Quality

57

58

59

60

The Government in its G.O. (D) No. 100, MSME (G) Department, dated 25.10.2011, have sanctioned a special scheme at a cost of Rs.63.00 Lakhs to strengthen the laboratory for testing of samples of table fans, mixies and wet grinders which would aid the process of of quality for fans, control the mixies of free and Governments distribution grinders. 2.10.2 Chemical Testing Laboratories Testing Chennai, and modern Laboratories Madurai, and These are are scheme electric

with 20,000 I.S. Specifications, 6,100 Books and 14 Journals is available at the Chennai Laboratory, for the use by the entrepreneurs. In 2011-12, 52,694 samples have been tested, yielding a revenue of Rs.153.04 Lakhs to Government.

2.10.3

Data Bank and Information Centre for Electrical and Electronics Industries, Chennai

This Information Centre provides data on relevant wide enterprises, Directory for offers the project use of profiles on select projects and maintains a State entrepreneurs to identify buyers and sellers. A technical library with 1,400 books and 100 journals is also available here.

Chemical located equipped at Coimbatore

Salem,

Thoothukudi.

with

sophisticated

instruments required for conducting testing of raw material and finished goods to meet the needs of chemical, metallurgical and other industries. These facilities are provided at concessional rates.
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A technical library
62

63

64

65

66

2.10.4

Enforcement of Quality Control Orders For creating awareness among

Enforcement Centre, Chennai have for the implementation of these Orders.

been

designated as the Appropriate Authorities the provisions of

consumers in Tamil Nadu, in using quality electrical products, the Quality Control Order Enforcement Centre, Chennai , implements the Household Electrical Appliances (Quality Control) Wires, Order, 1981 Cable, and The Electrical and Protection Appliances,

2.10.5 1.

Training Institutes The Government Technical Training Centre, Guindy offers three year Diploma course in Tool and Die Applications, a three year Diploma course in "Refrigeration and Airconditioning" and a one year PostDiploma (Advanced) course in "Die and Tool Designs" with an annual intake of 30, 40 and 10 students respectively. The Institute of Tool Engineering, Dindigul offers a three year Diploma course on Tool and Die Applications with an intake of 30 students annually.

Devices and Accessories (Quality Control) Order, 2003. Order is Contravention of the first under the Essential punishable

Commodities Act, 1955. The second Order prohibits the manufacture or storage for sale or distribution of specified items without the Bureau of Indian Standard marking. 2. Contravention of this order attracts penal action under the Bureau of Indian Standards Act. The General Manager, District Industries Centre, of the concerned District and the Deputy Director (E&E), Quality Control Order
67

68

69

70

71

72

73

74

75

76

3.

The Institute of Ceramic Technology, Vridhachalam affiliated to the Department of Technical Education is run by this Department. It offers a 3 -year specialized course in Diploma in Ceramic Technology with an intake of 50 Students and 10 Students in the Second year as lateral entry. The Government Scientific Glass Training Centre, Guindy offers a 2 year specialized Certificate course on the Manufacture of Scientific Glass Apparatus. Government Industrial Estates Ceramic Industrial Vridhachalam Estate at

to the entrepreneurs at a nominal rent of Rs.1.75 per Sq.ft. per month. this estate manufacture The units in low tension

insulators, sanitary ware, art ware, refractory bricks and other refractory material.

2.11.2

Electrical and Electronics Industrial Estates Government has established eight

4.

Industrial

Estates

for

Electrical

and

Electronics Industries with 517 Developed Plots and 140 Sheds. located in Chennai Perungudi and Of these. two are at Thiruvanmiyur and

2.11 2.11.1

one each in Tiruvallur,

Madurai, Salem, Coimbatore, Krishnagiri, and

Tiruchirappalli Districts at Kakkalur, Kappalur,

An Industrial Estate exclusively for Ceramic products is located at Vridhachalam. It was established in 1964. In order to encourage Ceramic Industries in the State, the Industrial sheds in this estate are rented
77

Suramangalam, Coimbatore City, Hosur and Thuvakudi respectively.

78

2.12

Industrial Co-operative Societies The Industries Commissioner is the

2.12.1

The Tea Sector The Tea Industry plays a prominent

functional registrar for the operatives in the State.

Industrial Co-

role in uplifting the economic conditions of Small Tea Growers in the Nilgiris District. Of the 63,000 Small Tea Growers in the State, about 20,000 of them with a cumulative acreage of 32,397 acres have been enrolled as members in the Industrial Co-operative Tea Factories. This initiative has helped and has safeguard them from exploitation their produce.

These institutions

play a major role in developing small and cottage industries as well as in generating employment. The main objective of organizing these entities is to provide gainful employment to rural artisans, skilled and unskilled workers, and labourers. They also ensure the payment of remunerative prices to the small tea growers developed and tapioca and at cultivators. Besides, Industrial Co-operative estates provide Plots are Constructed Sheds along with Infrastructural facilities to entrepreneurs. present, 351 such There Societies functioning

provided them with remunerative prices for These were first established in 1961 and on their successful functioning many more were organized on similar lines. At present, there are fifteen such factories in Nilgiris District, with an annual installed capacity of 181 Lakhs Kgs. of made tea. The percentage share of these units to the total production of tea in the State stands at 17%. Apart from procuring green leaves, they also

under the control of this Department.

79

80

81

82

83

84

provide

input

services

like

supplying

last year to Rs. 57.71 per kg of tea during the current year. 2.12.3 Indcoserve

Fertilizers, Seedlings, Manure and Tea Leaf bags to their members. 2.12.2 Provision of Support Price for Small Tea Growers

The Tamil Nadu Small Tea Growers Industrial Federation Co-operative popularly Tea Factories as known

In order to protect the welfare of Small Tea Growers, MSME Government (A) released an amount of Rs. 11.20 Crores vide G.O. No. MS.22, Department dated 2.8.2011, as support price at the rate of Rs.2/- per Kg. of green leaves supplied during the eight months period from May to December 2011. In the said period a sum of Rs.9.56 Crores was disbursed to 14,000 Small Tea Grower Members. Government also accorded permission to utilize the remaining amount of Rs 1.64 Crores from January to March 2012. The net sale average has increased from Rs. 52.60 per kg of tea

INDCOSERVE was established in 1965 in order to co-ordinate the activities of all the Industrial Co-operative Tea Factories in the Nilgiris. This Apex organization facilitates the purchase of various items required by its constituent products, members thereby and markets them to their get enabling

competitive prices.

It, also markets branded

and un-branded teas, blended teas, straight teas and green teas. It provides warehousing facilities at Coonoor, Coimbatore and Cochin and sells Ooty tea through Fair price shops under the Public Distribution System.

85

86

2.12.4

Teaserve

2.12.5

Acceding to the representations made by the Small Tea Growers of Nilgiris District, Government, for the first time, approved the setting up of an electronic tea auction centre at Coonoor. This was nomenclatured TEASERVE and was registered on 28.8.2002. It commenced its operations on 1.10.2003. It has helped private to eliminate and exploitation by has facilitated brokers

Coir Industrial Societies

Co-operative

The Coir Industry in Tamil Nadu plays a vital role in generating and providing gainful employment to women workers. It ranks next to Kerala in the Coir Industry but stands first in the production of brown fibre in the country. by the The percentage of husk utilization coir industry in Tamil Nadu is

estimated at 48% as against the National average of 40%. Coir Industrial There are seventy three Co-operatives, currently

transparency by working towards a better price discovery mechanism for marketing teas. The INDCO Tea Factories, private bought leaf factories, private Estate Factories and the factories of TANTEA are members of this organization.

functioning through which around 10,000 members/workers are provided employment. The paid up share capital of these Societies is Rs.266.85 share is Lakhs Rs. of which Governments These are 222.22 Lakhs.

engaged in activities like, Coir mattress.

fibre extraction,

spinning of Coir and production of rubberized

87

88

2.12.6

Market Development Assistance (MDA) for Coir Co-operative Societies

Gudiyatham with the assistance of the Coir Board have been established at a total project cost of Rs.528.65 Lakhs under the Scheme of Fund for Regeneration of Traditional Industry (SFURTI). The above

To dispose off the coir products through discounts in order to enable the coir Cooperatives employment have to to provide their the continuous workers, of the Market

Coir Clusters are engaged in Automatic Yarn Spinning, production of Coir pith blocks and manufacturing Cluster under of the garden articles. scheme The at Government of India has sanctioned a Coir MSE-CDP Singampuneri in Sivagangai District at a total project cost of Rs.658.90 Lakhs, of which Rs.500 Lakhs is the grant from the Government of India and Rs.65.89 Lakhs the contribution from the State Government. The Government of Tamil Nadu has already released Rs.39.44 Lakhs to the Coir Board, which is the Implementing Agency.

Government of India through the Coir Board introduced scheme Development Assistance to the value of 10% on the average sales turnover of the preceding three years. This MDA assistance is equally shared between Government of India and State Government. For the year 2010-11, the State Government has released a sum of Rs. 53.22 Lakhs as its contribution to the 64 coir societies. 2.12.7 Sfurti Coir clusters in Cuddalore, Salem, Singampuneri, Periakulam, Pattukottai and

The Government has announced the starting of new coir based industries for
90

89

export promotion and value added products. Accordingly, it has been decided to take up these schemes under the MSE-CDP and SFURTI clusters. In the 12th Five Year Plan period the Coir Board has earmarked nine coir clusters under SFURTI for Tamil Nadu. Of these, proposals for setting up three clusters in Pollachi, Dindigul and Kanyakumari at a total cost of Rs. 281.00 Lakhs have already been forwarded to the Coir Board for approval. Locations have been identified at Tiruppur, Madurai, Tirunelveli, Ramanathapuram, clusters. 2.12.8 Sagoserve The Salem Starch & Sago Manufacturers was registered Industrial on Co-operative with the Dharmapuri and Krishnagiri Districts for the remaining six

objective of providing remunerative prices for the Sago and Starch products of its member units by facilitating auction proceedings. It provides warehousing facilities and financial assistance to its member units. There are 364 members on its rolls, with a share capital of Rs.746.81 Lakhs including the Government share of Rs.99.83 Lakhs. Sagoserve has achieved a sales turnover of Rs 340.05 Crores and earned a net profit of Rs. 2.28 Crores from April 2011 up to March 2012. With a view to up-grading the member production units, a modernization scheme with a subsidy at 50% of the cost of each project subject to a maximum of Rs 4.00 Lakhs to each member unit is being Of this, to a implemented by the Organisation. the cost of the subsidy subject
92

Society commonly known as SAGOSERVE 21.7.1981

91

the State Government reimburses 50% of

maximum of Rs.2.00 Lakhs per unit to Sagoserve. Government In has the current year, a sum the of sanctioned

MSE-CDP in Phase II at a total cost of Rs.255.33 Lakhs. 2.12.10 Taico Bank In order to cater to the credit needs of Industrial Co-operative Societies, the Tamil Nadu Industrial Co-operative Bank, commonly known as the TAICO Bank was

Rs.49,71,697/- towards its share. 2.12.9 Establishment of a Sago Cluster To establish a Sago and Starch

Industry Cluster under the Micro and Small Enterprises Cluster Development Programme (MSE-CDP), a detailed project report was sent to the Government of India. Rs.120.00 Lakhs was sanctioned by the Government of India for setting up of a Testing Laboratory as a Common Facility Centre and Rs. 10.00 Lakhs for soft intervention. The testing laboratory was set up on 01.02.2010. The Government of India has so far released Rs. 73.31 Lakhs as a grant under to Phase-I. implement Sagoserve CFC under has the proposed

established in 1961. It has 406 members on its rolls, with a paid up share capital of Rs.5.70 Crores including a Government share of Rs.2.68 Crores. This bank has been recognized by the Reserve Bank of India as an institution for providing credit facilities in the State under NABARD Refinance Scheme. It extends financial assistance to Micro and Small Enterprises and deposits from besides accepting the public, operates current

93

94

95

96

97

98

accounts and savings accounts for them. The Bank is one of the implementing agencies for State Schemes, sponsored by organizations like TAMCO, THADCO and TABCEDCO. operative Societies. 2.12.11 Other Co-operative Societies The Department has also established Industrial Co-operative Societies in various other trades like polythene bag making, brick manufacturing, societies continuous were auto services, to printing provide services, etc. The polythene bag making organized to employment unemployed are eleven Societies including Indco It Tea caters to the financial needs of Industrial CoFactories, Indcoserve, Sagoserve and coir

with an annual turnover of Rs.176.42 Lakhs. Similarly, the Brick with a view to providing were employment to Adi Dravida Skilled Workers, Manufacturing Societies organized. The Department has also established Industrial Estates to provide work to their member entrepreneurs. sheds / There are developed plots with infrastructure facilities 15 such estates in the State with 2204 Micro and Small entrepreneurs as members. 2.13 Revamping of the District Industries Centres (DICs) It is proposed to re-orient all the District Industries Centres (DICs) Industrial scenarios. to keep pace with the changing local and global It is also proposed to take up capacity building of officers and staff and to provide connectivity, networking and
100

women of the

Adi Dravida Community in

rural areas. At present, there

such societies functioning with 803 workers,

99

video the

conferencing

and

ICT

facilities

to

Entrepreneurs / staff to help them acquire necessary and knowledge and expertise. of these Renovation Centres reconstruction

3. Tansidco
The known as Tamil Nadu was Small Industries on

Development Corporation Limited commonly SIDCO, established 16.3.1970 by the Government of Tamil Nadu with the main objective of assisting and promoting the interests of Small Scale Industries in the State by providing the following services. i. Formation and Industrial Estates maintenance of

will be taken up at a cost of

Rs. 50.00 Crores.

ii. Assistance in Raw Material Distribution iii. Assistance to small industries in marketing their products through Marketing Assistance Scheme. Consequent to the enactment of the MSMED Act 2006 on 16.6.2006, SIDCO has been actively striving to achieve its goals, viz.
101 102

i.

To facilitate the promotion and development of the MSME Sector To enhance the competitiveness of the MSME Sector

Capital Markets 3.1.1 Major line of activity carried-out in the Industrial Estates Traditionally, SIDCO has by been the 59

ii.

3.1

Sidcos Vision To forge sustainable for partnerships their

performing the functions of maintenance of 35 Industrial Estates created Government of Tamil Nadu and the

with

the

MSMEs

enhancing

Competitiveness. This will be achieved through its mandated mission of i) ii) iii) Development of Industrial Estates and associated social infrastructure Promotion of Clusters and Common Facility Centres Enabling the access of MSMEs to Technology Inputs Best Management and Manufacturing practices
103

Industrial Estates established on its own, thus maintaining 94 Industrial Estates as on date. A total of 11,703 units are functioning in these industrial estates, of which 303 units are export oriented. The employment generated in these units is approximately 2,18,248 persons. The industries functioning in these estates are engaged in the following manufacturing activities.

104

1. 2. 3. 4. 5. 6. 7. 8.

Auto Components PVC / Rubber Products

12. Milk Products 13. Corrugated boxes

Forging / Casting 14. Spinning Mills units Readymade Garments Textile units IT & IT enabled services Leather Products Electrical and Electronics spare Parts General Engineering & Fabrication 15. Aluminium Caps 16. Paints 17. Transformers 18. Chemicals 19. Polythene Bags

9.

20. Furniture

10. Drugs and Pharmaceuticals 11. Fly Ash Bricks

21. Ceramics

105

3.1.2

Industrial Estates so far developed

Industrial Estate Guindy (G) (S) Year of format ion 1958 1979 1979 1979 1963 1988 2009 1988 1988 1996 1994 2001 Total Extent (in acres) 404.08 3.92 2.04 7.88 1167.00 199.00 84.01 160.85 25.24 8.15 59.16 225.88

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

(3) Kanchee puram

Kancheepuram(G) Maraimalainagar(S) Alathur (S) Thirumudivakkam(S)

1968 1981 1984 1993 1968 1968 2009 1972 1980 1987 2009 1968 1965 1995 1976 1999

37.95 39.50 150.00 201.11 19.48 11.09 40.65 113.44 86.19 16.44 10.49 15.56 41.86 41.28 95.15 18.80

Sl. No 1 2 3 4 5 6 7 8 9 10 11 12

District

(1) Chennai

(4) Vellore

Katpadi

(G)

Arumbakkam Villivakkam (S)

Arakonam (G) ArakonamPhase II (G) Ranipet (S)

Kodungaiyur (S) (2) Thiruvallur Ambattur (G) Kakkalur (G) KakkalurPhaseII (G) Thirumazhisai (S) Gummidipoondi(S) R.K.Pet (S) Vichoor (S) Thirumullaivoyal (WIP) (S)

Mukuntharaya puram (S) Vannivedu (S) Vinnamangalam (S) (5) Thiruvanna malai (6) Krishnagiri Thiruvannamalai (G) Krishnagiri Uthangarai (G) (S)

Hosur(SIPCOT) (S) HosurNew) (S)

106

107

29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 (11) Coimba tore (10)Erode (9) Namakkal (8) Salem (7) Dharma purai

Bargur

(S)

1995 2009 2009 1965 2009 1967 1967 2004 1993 1977 1980 1959 1995 1972 1994

13.05 18.59 60.96 20.28 7.02 19.55 184.38 51.70 9.79 10.09 9.18 25.13 13.05 88.43 36.14 44 45 46 47 48 49 50 51 52 53 54 55 56 57 (16) Peram balur (17) Thanjavur (13) Nilgiris (14) Cuddalore (12) Tiruppur Ganapathipalayam (S) Rasathavalasu (S) Tiruppur (S) Gudimangalam (S) Ooty (S) 1993 2011 1978 1992 1981 1971 1972 2009 2011 2009 (G) (G) (S) (S) 1968 1968 1974 1996 17.10 51.80 10.14 6.74 10.65 15.60 26.22 107.80 38.88 44.48 32.30 21.94 10.96 26.30

BargurPhase-II (S) Pollupalli (S) Dharmapuri (G) Kadagathur (S) Salem (G)

Mettur (G) Karuppur(WIP)(S) Veerapandi (S) Namakkal (S)

Cuddalore (G) Vadalur (G)

(15) Villupuram Asanur (S) Venmaniathur (S) Elambalur (S) Kumbakonam Thanjavur Pillayarpatti Nanjikottai

Thiruchengodu (S) Erode (G) Nanjaiuthukuli (S) Kurichi (G) Malumichampatti (S)

108

109

58 59 60 61 62 63 64 65 66 67 68 69 70 71

(18) Naga pattinam

Nagapattinam (G) Mayiladuthurai (S)

1966 20.97 2009 1974 478.38 1974 1974 2003 51.70 2008 87.18 2009 26.84 2009 1974 1993 1974 1988 51.45 1975 26.00 24.46 26.63 36.29 23.18 74.50 17.64 12.56

72 73

(22) Theni

Theni

(G)

1963 1994 1965 1965 1960 1966 2007 1976 1993 1993 1966 1966 1993

26.59 22.34 39.90 16.26 56.05 534.64 18.90 10.00 10.00 12.14 180.19 70.61 21.85

Andipatty (S) (23) Dindigul Dindigul (G)

(19) Tiruchi rappalli

Thuvakudi

(G)

74 75 76 77 78 79 80 81 82 83 84

Batlagundu (G) (24) Madurai MaduraiK.Pudur (G) Kappalur (G)

Thiruvarambur (G) Ariyamangalam (G) Valavanthankottai (WIP) (S) Valavanthankottai (P- II) (S) Valavanthankottai (P- III) (S) Kumbakudy (20) Karur Karur (G) (S)

Kappalur- WIP (S) (25) Ramana thapuram Paramakudi (S) Keezhanagachi (S) Urapuli (26)Sivagangai (S)

Karaikudi (G) Sivagangai (G) Kirungakottai (S)

Karur(Athur) ( S) (21) Pudukottai Pudukkottai Pudukkottai (SIPCOT) (S) Mathur (S) (G)

110

111

3.1.3
85 86 87 88 89 90 91 92 93 94 (30) Kanya kumari (29) Thoothu kudi (28) Tirunelveli (27) Virudhu nagar Virudhunagar (G) Rajapalayam Pettai (G) Kadayanallur Valliyur (S) ValliyurPhase-II (S) (S) (S) 1958 1995 1959 1992 2005 2010 1962 1988 1964 1964 45.65 41.13 50.55 10.00 16.75

Stake-holders involved Development of MSMEs

in

the

Considering the 15%

share of Tamil

Nadu, in the total number of MSMEs in India, SIDCO is undertaking an active engagement for the development of this sector with the other stake-holders like 1. Government of Tamil Nadu

23.16

Kovilpatti (G) Thoothukudi (S) Konam (G) Marthandam (G) TOTAL

2. Commissionerate Commerce

of

Industries

&

85.54 24.18 20.70 7.50 6,576.86

3. Micro, Small and Medium Enterprises Department 4. Government of India 5. Micro, Small and Medium Enterprises Development Institute 6. Small Industries Development Bank of India 7. Other Financial Institutions

(G) (S) (WIP)

- Denotes Government Industrial Estates - Denotes SIDCO Industrial Estates. - Denotes Women Industrial Estates

112

113

8.

Producers of key Raw Materials viz., Steel Authority of India Ltd., Rashtriya Isput Nigam Ltd, Chennai Petro Chemicals Ltd., Indian Oil Corporation, Tamil Nadu Papers Ltd., etc., National Productivity Council

6 7 8

Mathur Palayapatti Virudhunagar (Urban) Total

Pudukottai Thanjavur Virudhunagar

19.92 103.03 37.54 445.91

9.

10. Industries Association like TANSTIA, CODISSIA, MADISIA, etc., 3.1.4 It Formation of Industrial Estates was announced that during the last

Out

of

the

locations,

Industrial

Estates have been established in 2 places viz. Venmaniathur and Rasathavalasu. With regard to the remaining 6 locations, possession has been taken and development work will commence during the course of this year. In addition to these, it is proposed to establish new Industrial Estates at the following sites:

Budget session locations.

Sl. No. 1 2 3 4 5 Locations Rasathavalasu Venmaniathur Vaniyambadi Marikundu Pidaneri

New Industrial

Estates would be established at the following

Area (acres) 51.80 38.88 7.08 79.43 108.23

District Tiruppur Villupuram Vellore Theni Thuthukudi

114

115

Virudhunagar
Sl. No. 1 2 3 4 5 6 7 Name of Indl. Estate Kurukkalpatti Minnur Pattnam A.Sathanur Ponnukudi Chengarai Asanur(Phase-II) Total District Tirunelveli Vellore Villupuram Villupuram Tirunelveli Thiruvallur Villupuram Area (acres) 68.77 10.00 60.55 219.52 82.18 36.53 143.94 621.49 Sl. No 1

(Urban), and proposals

Mathur for

and be

Palayapatti

Pidaneri,

Marikundu and Kurukkalpatti will also

forwarded shortly . With a view to sustain the growth of SIDCO in the years to come, the creation of a credible taken to acquire Land Bank has been acres in 15 planned. Towards this end, action has been 1257.53 locations in the State as indicated:
Extent (in Acres ) 70.79 50.43 50.91 83.78 67.86

Village /Taluk Kalakurichi, Aravakurichi Vazhkai, Nannilam Sedapatti, Peraiyur Kattamaduvu, Chengam Sadayampalaya Dharapuram

District Karur Thiruvarur Madurai Thiruvanna malai Tiruppur

Apart from this, in Kurichi an extent of 1.51 acres will be utilized for a Common Facility Centre under the MSECDP Scheme. Proposals for sanction of grants under the MSE-CDP Scheme have been sent to Govt. of India for the at
116

2 3 4 5

development

of

Industrial

Estates

Vaniyambadi,
117

3.1.5
6 7 8 9 10 KandiyanKoil, Tiruppur Nanjaiuthukuli (Ph-2), Erode Thandarai, Chengelpattu, Vaipur, Tiruvarur Mulluvadi, Allalacheri and Nagaleri, Arcot Kaverirajapuram Uthukkottai Enambakkam, Uthukkottai Pappambadi & Murugapadi, Polur Kasthuripatti, Sangagiri Vadamugam Kangeyam palayam, Perundurai Total Tiruppur Erode Kancheepuram Thiruvarur Vellore 252.44 56.50 43.90 58.21 25.53

Allotment of Plots / Sheds Sites are developed into Industrial

Estates with industrial plots of various sizes ranging from 0.15 acre to 1.00 acre and above as per the requirements of the manufacturing units and the industrial plots are allotted to them either on Outright sale or Hire Purchase existing in the area. based on the demand

11 12 13 14 15

Thiruvallur Thiruvallur Thiruvanna malai Salem Erode

135.18 200.00 60.83 51.71 49.46

A transparent procedure is followed in allotting the sheds / plots by advertising the availability of sheds/ plots in newspapers. A Screening Committee constituted with the officials of Industries & SIDCO, Commissionerate of Commerce, TIIC and

representatives of TANSTIA as members, scrutinizes the applications and the eligible applicants are selected on merit. Plots are allotted by way of a lot system, in a transparent manner.

1257.53

118

119

As per G.O.(Ms) No.7, Micro, Small and Medium Enterprises Department, dated 31.01.2009, 30% of the saleable area of the industrial estates are earmarked for Micro Enterprises. To ensure participation of all sections of the society in the industrial development of the state, priority is given in allotment as follows: i) 30% for Women Entrepreneurs. ii) 10% for Ex-servicemen iii)10% for SC/ST and Transgenders. If sufficient numbers of the applicants are not available in these categories, these reserved plots/sheds will be taken up for allotment to other categories.

3.1.6 Creation / Up-gradation of Infrastructure facilities in new / existing Industrial Estates Government of India and Government of Tamil Nadu, are extending their support for creation and up-gradation of infrastructure facilities in new / existing Industrial Estates through various schemes like Micro, Small Enterprises-Cluster (MSE-CDP) Scheme, Up-gradation and by Development Infrastructure Industrial Programme Development Infrastructure

Scheme (IIUS), Assistance to States for Infrastructure Development of Export Allied Activities Scheme of Government of Tamil Nadu sanctioning of grants. 3.1.7 Micro and Small Enterprises Cluster Development Programme (MSECDP) Prior to October 2007, the Government of India, MSME was
121

(ASIDE) and the Part II

implementing

the

120

Integrated Infrastructure Development (IID) Scheme, under which a 40% grant subject to a ceiling of Rs.200 Lakhs (Project Cost Rs.500 Lakhs) was being sanctioned for the creation / Up-gradation of infrastructure in new / existing industrial estates. Similarly, a separate Cluster Development Scheme titled the Small Industries Cluster Development Programme (SICDP) was also in operation. In October 2007, this SICDP was renamed as the Micro and Small Enterprises Cluster Development Programme (MSECDP). The Integrated Infrastructure Development (IID) Scheme was also subsumed in the MSECDP for providing developed sites of for new enterprises and up-gradation existing

SIDCO has been availing assistance from the Government of India under these two schemes. 3.1.8 Infrastructure Development under the MSECDP Scheme Under this Scheme, the Government of India sanctions 60% of the project cost subject to a ceiling of Rs.6 Crores as grant (i.e. maximum of new and existing Rs.6 Crores) for the Industrial Estates creation and up-gradation of infrastructure in respectively. The 4074.12 Government Lakhs for of the India creation have of

approved projects up to 2011-12 worth Rs. infrastructure facilities in 12 new Industrial Estates. Of the sanctioned projects, eight have been completed, and and for three are one (Asanur, under at project Arakkonam Pollupalli),

industrial infrastructure. These two schemes are now being implemented in the name (i) MSECDP (Infrastructure Development) (ii) MSECDP (Common Facility Centre)

implementation
122

123

Karaikudi, work will be taken up, on order.

the

receipt of the Government of Indias sanction

Further, the Government of India has approved projects worth Rs. 2389.15 Lakhs for the up-gradation of Infrastructure facilities in 12 existing industrial estates. Of these, in 6 existing industrial estates upgradation works have been completed, and in 6 industrial estates (Alathur, Kakkalur, and Kovilpatti, in progress. In 2012-13, SIDCO has proposed to take up infrastructure works in seven new Industrial Estates and in upgrade two the infrastructure facilities existing Athur(Karur), Mettur

Ganapathipalayam, up-gradation works are

Industrial Estates as indicated.

124

125

126

127

Details of Creation of Infrastructure in Industrial Estates proposed in 2012-13

(Rs. in Lakhs)

Sl. No.

Name of the Industrial Estate Palayapatti Phase-I Thanjavur District

Funding Pattern Project cost Grant from GOI (60%) 462.00 Stage SIDCO (40%) 308.00 Sanction order awaited from Govt. of India Sanction order awaited from Govt. of India Sanction order awaited from Govt. of India

770.00

Vaniyambadi, Vellore District

58.00

34.80

23.20

Mathur (New), Pudukottai District

240.00

144.00

96.00

128

129

Details of Up-gradation of Industrial Estates proposed in 2012-13

4 Virudhunagar (Urban) Virudhunagar District Pidaneri, Thoothukudi District 330.00 198.00 132.00 Proposals sent to Govt. of India for sanction Proposals will be sent to Govt. of India Proposals will be sent to Govt. of India for sanction -do(Rs. in Lakhs)
Funding Pattern Grant from GOI 60% 120.00 Grant from GOTN 30% 60.00 Beneficiar ies Contribution 10% 20.00

805.00

483.00

322.00

Sl. No.

Name of the Industrial Estate

Projec t cost

Marikundu, Theni District

720.00

432.00

288.00

Kurukkalpatti, Tirunelveli District Total

890.00

534.00

356.00

Malumicham patti, Coimbatore District Thiruverumbur, Tiruchira ppalli District TOTAL

200.00

368.00

220.80

110.40

36.80

568.00

340.80

170.40

56.80

3813.00

2287.80

1525.20

3.2

Common Facility Centres (CFCs) under the MSE CDP Scheme The Ministry has of Micro, Small the and

Medium Enterprises (MSME), Government of India (GOI) adopted cluster development approach as a key strategy for
130 131

enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Given the diverse nature of the MSEs in terms of both geographical location and sectoral composition, the Micro and Small enterprisesCluster Development Programme (MSECDP) Scheme aims at addressing the needs of the industries, through well defined clusters and geographical areas. This will enable achieving the

also

to

have

better

access

to

public

resources, linkages to credit and enhance their marketing competitiveness. A Cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same / similar products / services. The essential characteristics of

enterprises in a cluster are a) Similarity or complementarities in the methods of production, quality control and testing, level for energy of consumption, and

economies of scale in terms of deployment of resources as well as focusing on the specific needs of similar industries. The capacity building of associations, setting up of special purpose vehicles (SPVs), consortia, etc which are integral part of the scheme would enable the MSEs to leverage their resources and

pollution control etc. b) Similar c) Channels technology marketing strategies / practices communication among the members of the cluster d) Common challenges and opportunities.

132

133

3.2.1

Objectives of the Scheme

have been sanctioned by the Government of India with a maximum of 70% grant for a sum of Rs.36.89 Crores. The Government of Tamil Nadu has sanctioned a grant of (maximum 10%) Rs.4.97 Crores. Out of the above 15 projects, 7 projects have already been completed. The remaining 8 Common Facility Centres are under implementation. The expected total employment generation from the 50 clusters will be 10,000. In 2012-13, SIDCO has take up 20 CDPs. number ever to be proposed to up for

1. 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. 2. To build capacity of MSEs for common supportive action through formation of self help groups, consortia, Upgradation of associations etc. 3. To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc.) SIDCO has been Agency nominated for as the

This will be the highest taken

implementing

Establishing

Common Facility Centres in Tamil Nadu under MSE-CDP scheme vide G.O.Ms.No.24 (MSME) Dept. dated 09.08.11. In total, 50 Projects have been identified in Tamil Nadu for implementation. Out of these, 15 projects at a total project cost of Rs.57.39 Crores
134

implementation. The status of the Cluster programme is summarized as follows:-

135

Sl. No 1 2 3 4 5 6 7 8 9

Description Projects Implemented Projects under implementation Sanctioned and orders awaited Clarification sought from SIDBI by Govt. of India To be taken up by the Steering Committee Under process with Govt. of India Under process with Govt. of Tamil Nadu Projects ready for Steering Committee DPRs under preparation Total State

Nos. 7 8 1 1 8 6 4 10 5 50

136

137

138

139

140

141

142

143

Projects Implemented
Sl. No. 1 2 3 4 5 6 7

Cluster Sago & Starch Safety Matches Safety Matches Safety Matches Safety Matches Safety Matches Safety Matches

Location Salem Gudiyatham Virudhunagar Srivilliputhur Sathur Kazhugumalai Kovilpatti

Projects under implementation

Sl. No. 1 2 3 Cluster Wet Grinder Brick Ceramic Location Coimbatore Tirunelveli Virudhachalam

144

145

4 5 6 7 8

Coir Engineering Printing Rice Mill Auto Components

Sivaganga Ranipet, Vellore Sivakasi Keelapavoor Hosur Sl. No. 1 2 3 4

To be taken up by the Steering Committee

Cluster Rice Mill Engineering Refractory Stainless Steel Vessels Engineering Plastic Engineering Rice Mill Location Thanjavur Dindigul Virudhachalam Kumbakonam Ambattur Madurai Paramakudi Kangeyam

Sanctioned and orders awaited

Sl. No. 1 Printing

5 6

Cluster

Location Krishnagiri

7 8

Clarification sought from SIDBI by Govt. of India

Sl. No. 1 Rice Mill Cluster Location Alangulam Sl. No. 1

Being processed by the Govt. of India

Cluster Pharma Indian System of Medicine 147 Location Kavangarai

146

2 3 4 5 6

Plastic Lorry Body Building Engineering MICAL Pharma Sago & Starch (Phase II)

Kancheepuram Namakkal Perungudi Chennai Salem Sl. No. 1 2 3

Projects ready for scrutiny by the State Steering Committee

Cluster Auto and Power Loom Power Loom Cement Pipes Lime Gold Jewellery Rice Mill Garment Corrugated boxes Coir Garment exclusively for women

Location Salem Rasipuram Chinnadharapuram Tirunelveli Tiruchirappalli Tiruchendur Thalavaipuram Thiruvallur Pollachi Thalavaipuram

Being processed by the Govt. of Tamil Nadu

Sl. No. 1 2 3 4 Coir Gold Jewellery Gate & Grill products Electronic Products Cluster Location Erode Madurai Thirumullaivoyal Coimbatore

4 5 6 7 8 9 10

148

149

DPRs under Preparation

Sl. No. 1 2 3 4 5 Cashew Jewellery Pharma Readymade Rubber

4 5

Coir Engineering& Auto Printing Rice Mill Plastics Pharmaceuticals Jewellery Electronics Corrugated Boxes Garment / Textiles / Looms Rubber Total

3 10 2 5 2 3 3 1 1 5

Cluster

Location Kanyakumari Coimbatore Alathur Thoothukudi Madurai

6 7 8 9 10 11 12

Sector wise classification

13

Sl. No. 1 2 3

Cluster Safety Matches Agro Ceramic & Bricks (Building materials)

Location 6 3 5

14

1 50

150

151

3.2.2 Cluster Development Programme in Tamil Nadu - Road Map Projects implemented / sanctioned during 2006-2007 to 2011-2012 Projects to be Implemented in 2012- 2013 Projects to be taken up during 2013 2014 to 2015 2016 15 20 65
Sl. No 1 2 3 4 Year 2006-07 2007-08 2008-09 2011-12 No. of Industrial Estates benefitted 3 3 3 5 (Marthandam, Gummidipoondi, R.K.Pet, Urapuli Thiurmudi vakkam) Total

(Rupees in Lakhs)
Approved project cost 101.50 114.00 120.00 150.00 Govt. of Tamil Remarks Nadu Grant 25.00 Completed 25.00 Completed 20.00 Completed 30.00 Under implementation

-----Total 100 -----3.2.3 State Governments Schemes Part-II

485.50

100.00

SIDCO has been availing grants from the Government of Tamil Nadu under Part II Schemes towards the the strengthening

In 2012-13 it has been proposed to strengthen infrastructure facilities of four Industrial Estates at a total project cost of Rs.210.00 Lakhs.

of infrastructure in the existing industrial estates and has so far availed Rs.100.00 Lakhs as indicated:

152

153

(Rs.in Lakhs)
Project SIDCOs Year of Extent contriCost Establish in improve bution - ment acres ment 75% Govt. of Tamil Nadu Grant 25% 12.50

Sl. No

Location

3.2.4 Assistance to States for Infrastructure Development of Export and Allied Activities (ASIDE) The called Special Purpose Vehicle (SPV) Estate Company

1.

Thoothu kudi Phase I, Tuticorin Dist. Keela nagachi, Ramnad Dist. Gudi mangalam Tiruppur Dist. Vichoor, Thiruvallur Dist.

1988

9.72

50.00

37.50

the

Guindy

Industrial

Infrastructure

Up-gradation

(GIEIUC) which was formed for the purpose

1993 10.00 25.00 18.75 6.25

2.

of up-gradation of infrastructure facilities in Thiru-vi-ka Industrial Lakhs Estate, Guindy under is the implementing the project at a project cost of

3.

1992

6.74

35.00

26.25

8.75

Rs.2794.50

sanctioned

Govt. of Indias ASIDE scheme in 2005-06.

1994 59.16 100.00 75.00 25.00

4.

The project is nearing completion. 3.2.5 Industrial Infrastructure Up-gradation Scheme (IIUS) ongoing up-gradation works at and

Total

210.00

157.50

52.50

The Ambattur, Industrial

154

Thirumudivakkam Infrastructure
155

Thirumazhisai Industrial Estates under the Up-gradation

Scheme was sanctioned by the Government of India at a project cost of M/s. Chennai Auto Rs.49.00 Crores Industrial Company in 2004-05. A Special Purpose Vehicle called Ancillary Infrastructure Up-gradation

SIDCO distributes raw material from its depots situated at Ambattur, Coimbatore, Madurai, Tiruchirappalli, Sattur, Sivakasi and from its branch offices located at Erode, Salem, Thanjavur, and Vellore. The details of raw materials supplied are:1. 2. 3. 4. Iron & Steel Wax Potassium Chlorate and TNPL Paper

(CAAIIUC) has been created for the purpose of implementing the project which is nearing completion.Further, a sum of Rs.12.10 Crores has been sanctioned under the Govt. of India ASIDE scheme as gap funding for the project. 3.2.6 Raw Material Distribution to and decontrol, the open market economic

The details of target and achievements for the year 2011-12 and target for the year 2012-13 are as follows:Name Sl. of the No Material 1. 2. 3. Iron & Steel Wax TNPL (Direct Sales) TNPL (Agency Sales) Target for 2011-12 Qty. in MTs. Value Rs. in lakhs Achievement for 2011-12 Qty. in MTs. 4348.96 4344.92 212.91 Value Rs. in lakhs 1904.00 3741.36 121.48 Target for 2012-13 Qty. in MTs. 4981.07 5300.86 242.09 Value Rs. in lakhs 2169.71 4646.30 147.00

Due conditions

changed

scenario, the Raw Material Distribution and Marketing Assistance undertaken by SIDCO has considerably declined and efforts are being taken for a new strategy which would enable market. SIDCO to compete in the open

9800 3920.00 6000 5220.00 400 210.00

1119

548.20

487.65

266.21

494.44

269.60

156

157

4.

Pot. 50 34.00 4.00 2.80 5.00 3.34 Chlorate 5. Essar 87.13 37.84 200.00 70.00 Steel * Total 17369 9932.20 9485.57 6073.69 11223.46 7305.95 * Supply started during the month of November 2011

SIDCO Rs.164.36

has

executed

orders

worth

lakhs upto March, 2012. For

2012-13 target has been fixed as Rs.197.87 lakhs to make substantial progress.

3.2.7 Assistance rendered under Marketing Under this scheme, SIDCO approaches the Government Departments / Local Bodies on behalf of Micro and Small Entrepreneurs units which are registered with SIDCO. The orders received are distributed among Micro and Small Enterprises and the execution of these orders is monitored to effect quality and timely supply. Payments are received from the Departments / Undertakings / Local Bodies for the supplies effected and payment released to Micro and Small Enterprises after deducting 3% Consultancy fees.

3.2.8

e-Governance SIDCO has At initiated action to of

computerize its activities so as to enhance productivity. present downloading application forms for allotment has been made available on its website. A software is being developed with the assistance of the National Informatics Centre to enable entrepreneurs file their applications for

allotment of plots on-line.

158

159

3.2.9 National Manufacturing Competiveness Programme(NMCP) The Ministry of Micro and Small and Medium Enterprises Govt. of India have launched the National programme Manufacturing (NMCP) to Competiveness Small and

Promotion of ICT (Information & Communication Technology) in MSME sector Technology and Quality Up-gradation Support to MSMEs (TEQUP) Marketing Assistance and Technology Up-gradation Scheme Marketing Support / Assistance to SMEs (Bar Code) Design Clinic Scheme for Expertise to MSME sector Setting up of Mini Tool Rooms National campaign for building awareness on Intellectual Property Rights (IPR) Support for Entrepreneurial and Managerial Development of SMEs through Incubators SIDCO will take proactive steps in partnership with the MSMEDI, the National productivity Council and the National Institute of Design etc. to implement NMCP among the MSMEs of Tamil Nadu. Design

improve the competiveness of all the Micro, Medium the Enterprises (MSME) upgrading well Under have as this been sectors. It was formulated, with a view to increase productivity, processes, products. as technology and conserving energy in the manufacturing of Indian expanding domestic and global market share MSME 10 programme components

conceptualized, viz., Lean Manufacturing Competiveness Schemes Enabling manufacturing sector to be competitive through Quality Management Standards / Quality Technology Tools (QMS/QTT)
160

161

3.2.10 Lean Manufacturing Competitiveness Scheme SIDCO will strive to consolidate the pre-eminence of Tamil Nadu in the manufacturing sector. As a part of this drive it will implement the Lean Manufacturing Competitiveness Scheme (LMCS) of MSEs under scheme the National Manufacturing reducing through processed the the proper flows, of competitiveness Programme (NMCP). This envisages costs, improved in manufacturing management, brings

adopting LMCS to remain competitive, but MSMEs have not been able to benefit from these programmes, as they are not fully aware of the benefits. Also, experienced and effective Lean Manufacturing Councellors or Consultants are not easily available and are expensive to engage, hence most MSMEs have been unable to afford LMCS. Lean Manufacturing Competitiveness

Scheme of NMCP will be implemented in 25 clusters this year at five clusters each in the five major manufacturing hubs of Chennai, Coimbatore, Hosur. The Madurai, Tiruchirappalli will be and in implementation

personnel management, scientific inventory reduced engineering time etc., LMCS also improvement quality products and lowers the production costs, which are essential for competing in domestic and international markets. The main objective is to increase productivity by 20%. The larger enterprises in India have been
162

partnership with the National Productivity Council and the MSME-DI, Chennai.

163

3.2.11 Economic Activity Atlas (EAA) SIDCO in partnership with TANSTIA FNF and IFMR, Chennai will develop a Geographical Information System (GIS)

c.

Value addition The technologies used in an industrial cluster, will be mapped and then based on intra cluster planned. synergies higher value adding options for the cluster be

based Economic Activity Atlas for the MSMEs in the State, on a cluster based approach in a phased manner. Creation of an Economic d. Activity Atlas will lay the foundation for understanding the various dynamic of the economic geography of a particular region and planning for future development. Some of the potential benefits of this EAA are a. b. Better economic governance Better emerging understanding of the and

Value from waste:

One of the

important aspects of this atlas will the availability of resource map. When the raw materials, finished goods and by products along with effluents are mapped, there will be scope to build value from waste models through resource optimization techniques.

infrastructure

planning requirements

164

165

3.3 SIDCO Corporate Office The Government in G.O.Ms.No.12

MSME (F) Department,

dated 20.2.2009

accorded its administrative approval for the construction of a Corporate Office building at Guindy. Accordingly, work on the building has been taken up at an estimated cost of Rs.44.40 Crores. The structure comprises of a basement, stilt and 9 floors. be completed by January, 2013. The work commenced in June 2010 and is expected to

166

167

168

169

4. Tansi

4.1

Formation The Tamil Nadu Small Industries was of

Corporation G.O.Ms.No.1895

Limited (Spl),

(TANSI) Department

incorporated in 1965 as a Company as per Industries Labour and Co-operation, dated 1.4.1965, by bringing together 64 industrial units under the control of the Director of Industries and Commerce. TANSI started its production from 1.12.1965 in the 64 units as per G.O.Ms.No.4704 Industries (Spl.) Department, dated 1.10.1965. Since some of the units had lost their relevance their with the TANSI growth slowly of private out entrepreneurs, activities phased

and closed down some of

170

171

the units.

It presently has 36

Production

7 8 9 10

TANSI Fabrication Works, Palani TANSI Furniture Works, Krishnagiri TANSI Furniture Works, Madurai TANSI Furniture Works, Pudukkottai TANSI Project , Omalur TANSI Furniture & Engineering Works, Pettai TANSI Project Cell, Tiruppur TANSI Fabrication Works, Vellore TANSI Project, Vellore TANSI Project, Ranipet TANSI Fabrication Works, Rajapalayam

Dindigul Krishnagiri Madurai Pudukkottai

Units and 2 Show Rooms at Chennai and Namakkal. The show room at Namakkal was inaugurated on 16.12.2011and it is proposed to open one more in Tiruchirappalli.

11

Salem Tirunelveli

4.1.1

Details of Units

12

Furniture Units
13 Sl. No 1 Nomenclature TANSI Furniture Works, Guindy, Chennai-32 TEK Project, Guindy, Chennai-32 TANSI Project (NABARD), Guindy, Chennai -32 TANSI Project, Wall Tax Road, Chennai TANSI Project Cell, Pollachi TANSI Furniture & Engineering Works, Cuddalore Coimbatore Cuddalore Chennai District 14 15 16 17

Tiruppur

Vellore

2 3

Virudhunagar

Engineering Units
Sl. No 1 Nomenclature TANSI Engineering Works, Guindy, Chennai-32 District Chennai

5 6

172

173

TANSI Project Cell, Guindy, Chennai-32 TANSI Project Cell, Erode TANSI Engineering Works, Karur TANSI Tool & Engineering works, Madurai TANSI Engineering Works, Mayiladuthurai TANSI Project Cell, Mayiladurthurai TANSI Project Cell, Namakkal TANSI Structural & Galvanizing Works, Metturdam TANSI Engineering works, Thanjavur TANSI Project Cell, Thoothukudi TANSI Foundry & Engineering Works, Pettai TANSI Project Cell, Ambattur

Chennai 14 Erode Karur Madurai 15 TANSI Engineering Works, Tiruvannamalai TANSI Structural Works, Tiruchirappalli TANSI Tool & Engineering Works, Virudhunagar Tiruvannamalai

3 4 5

Tiruchirappalli

16

Virudhunagar

Nagappattinam

7 8 9

Special Product Units

Namakkal Salem S.No 1 Thanjavur 2 Thoothukudi Tirunelveli 3 Nomenclature TANSI Polish Unit, Ambattur, Chennai-58 TANSI Pump Unit, Ambattur, Chennai-58 TANSI Tool & Engineering Works, Tiruchirappalli Tiruchirappalli District Thiruvallur

10

11 12

13

Thiruvallur

174

175

4.1.2

Show Rooms TANSI has 2 Show Rooms at present

for

marketing.

Another

show

room

at

Tiruchirappalli will be opened shortly.

S.No. 1 Place TANSI Show Room, Guindy Chennai-32 TANSI Show Room, Namakkal (Opened on 16.12.2011) District Chennai

Namakkal

4.1.3

Core Activities

TANSI undertakes the manufacture of wooden & steel furniture, other fabrication works and manufacture of hand pumps, spirit based surgical items and paints. It has carved a niche for itself with regard to the quality and workmanship of its products and has been supplying various types of
176 177

178

179

furniture items required under the Shiksha Abhiyan, hand pumps etc. In recognition of their

Sarva

hand pumps required for

drinking water supply and spares for the

exemplary

standards, the two Pump Units namely, TANSI Pump Unit, Ambattur and TANSI Tool & Engineering Works, Tiruchirappalli, three Fabrication Units viz. TANSI Fabrication Works, Palani, TANSI Fabrication Works,

Rajapalayam and TANSI Fabrication Works, Vellore and the Tamil Nadu Paints and Allied Products Limited (TAPAP) have obtained the ISO-9001:2008 Certification from BSI Management Systems India Pvt. Ltd, Chennai and are producing quality products. 4.1.4 Performance The performance of TANSI for the year 2011-12 (up to March 2012-Unaudited) and Target for 2012-13 is furnished hereunder :180 181

(Rs. in Crores)
Description Production Sales Operating Profit Nomination Fee to Govt. Provision for Tax Net profit (approx.) 2011-12 Target 100.00 100.00 17.39 10.00 2.45 4.94 Achievement 92.80 93.86 16.64 9.39 2.41 4.84 2012-13 Target 110.00 110.00 19.17 11.00 2.71 5.46

Furniture

Wooden furniture, furnishing and interior decoration, panelling etc., Steel furniture for domestic, office and hospital uses. Deep bore well Hand Pumps, Extra Deep bore well Hand Pumps, Pump spares, spirit based medicinal products, surgical spirit, De-Natured Spirit, Tincture Cetrimide and Povidone Iodine; Spirit based industrial products like Gasket Shellac, French Polish, Thinner, disinfectant solutions like Lysol, Phenyle.

Special Products

4.1.5 Category of units and their product lines Category

Structural & Engineering

4.1.6 Staff Strength TANSI 2004. But of introduction had sufficient voluntary the manpower retirement caused till and and by

Product Lines
Galvanization, Heavy structurals of various kinds such as factory sheds, bridges, bus stands etc., Doors and Windows, TANGEDCO Line materials, Pillar Boxes, R.T.S. Grills, Sheet Metal Fabrication.

after

restructuring vacancies

retrenchment, ban the

retirements could not be filled up due to a on new appointments. staff position and has are units
183

Consequently, become quite by managed

inadequate
182

making Some Steps

additional of the

charge

arrangements. employees to of

retrenched been

4.1.7 Nomination Fee paid to Government TANSI has been making profits

AGROFED are engaged on a contract basis. have initiated appoint candidates to fill up vacant posts to improve the performance of the units. Employees Strength: Staff strength fixed under restructuring Present strength Vacancies as per original strength 344 158 186

continuously for the last seven years and has been able to wipe out the accumulated losses, thanks In to view the of support the from Government. concession

granted by Government for placing orders directly with TANSI, the performance has improved and the Corporation has paid a total nomination fee of Rs.57.65 Crores in the last three years. It will pay a suitable fee for 2011-12 as well after assessing the operating profit for 2011-12 at the close of the financial year in March 2012.

In this connection, the number of employees has come down drastically from 4,567 in 1985 86 to a mere 158 in 2011-12 even though the turnover has increased manifold. Proposals are under consideration of the Government regarding granting of permission to fill-up vacancies as per original strength. The posts will be filled-up after issue of Government orders.
184

185

4.1.8

Major and important Orders executed (i) TANSI has been supplying desks

material required for restoration of power supply in the Thane Cyclone affected districts of Cuddalore, Villupuram etc. which have been completed satisfactorily. 4.2 Tamil Nadu Paints and Allied Products Limited (TAPAP) (A Subsidiary Unit of TANSI) This owned products unit was of part its started TANSI of as for per the

and last

benches to students and tables and 3 years through the Directorate of

chairs to various schools in Tamil Nadu in the School Education and the Project Director, Sarva Shiksha Abhiyan (SSA). Since TANSI had executed the orders satisfactorily within the stipulated time, it has received further orders for about Rs.33.00 Crores during the year 2011-12, which are under execution. (ii) It had also received orders for the supply of 2011-12. (iii) TANSI has also received orders from TANGEDCO including for the supply of line of line materials to the tune of Rs. 16.23 Crores emergency
186

G.O.Ms.No.277, dated 21.03.1985 as a fully subsidiary as a with The manufacture and supply of paints and allied diversification. on at the office of Accordingly, TAPAP came into existence 18.11.1985 Ambattur. of registered objective main

play items under the SSA

for

Rs.22 Crores which were completed during

Corporation is the manufacture and supply red oxide paints, rubberized paints for transport road marking and various enamel paints to Government Departments and undertakings of the Government of Tamil

supplies

187

Nadu. The share capital of the Corporation is Rs.10.00 Lakhs. TAPAP achieved a turnover of Rs. 3.25 Crores during the year 2011-12 and it is proposed to achieve a turnover of Rs. 3.50 Crores during 2012-13.

5. Entrepreneur Development Institute (EDI)

The EDI was set up in the year 2001 with the objective of identifying and selecting potential entrepreneurs and develop them for setting up industries by providing them with training, to conduct and sponsor research in the field of entrepreneur development, to provide consultancy services on various aspects of entrepreneurial development etc. Since its inception, the EDI has conducted training programmes for more than 49,347 candidates, primarily under programmes like the PMRY, PMEGP, the UYEGP and other assisted programmes of the Government of India, Ministry of MSME. The details of programmes conducted so far as below:

188

189

Sl. No 1

Programme Nomenclature Prime Minister Rozgar Yojana (Sponsored by the Department of Industries and Commerce) Women Entrepreneurship Development Programme (Sponsored by TIIC) General Entrepreneurship Development Programme (Sponsored by Dept. of Science & Technology) Product Process Entrepreneurship Development Programme (Sponsored by SIDBI) Three Month Skill Development Programme (Sponsored by Dept. of Science & Technology) New Anna Marumalarchi Thittam (Namt) (Sponsored by IC & DIC Indian Bank & State Bank of India Entrepreneurship Awareness Camp (EAC) Six weeks Techno Based Leather Processing and Leather goods Training (Sponsored by Dept. of Science & Technology), Govt. of India 190

Number of Beneficiaries 34,291

Tribal Entrepreneurship Development Programme on Ericulture (Sponsored by Dept. of Science & Technology), Govt. of India Two Day Seminar on the Scope For Export of Fresh Fruits and Vegetables, at Erode (Sponsored by Dept. of Science & Technology,GOI.) Sample Survey on the implementation of PMRY Scheme and the present status of PMRY beneficiaries (from each district 100 candidates) - Sponsored by Dept. of Industries &Commerce Trainers of Training Programme Two day Free Entrepreneurship Awareness Programme for SC/ Scheduled Tribe Two weeks Entrepreneurship Development Programme Prime Ministers Employment Generation Programme (PMEGP) One month Residential EDP Training Programme (TAHDCO) Finishing school (Four Day Residential EDP) Programme at Vet College Students

41

10

44

783 11

224

600

143 12 139 13

17 200

81

14 15

201 2,488 48 424

7 8

4,275 16 31 17

191

holding and mentoring.

18 Skill Development Training Programme (Six month) (BC & MBC) Personal Effectiveness Workshop to the Employees (2 days) One month Residential EDP Training Programme Unemployed Youth Employment Generation Programme (UYEGP) Total 800

The EDI

plays

significant role in three important areas, viz: i. Entrepreneurship Orientation Awareness programmes and

19 20 21

1,460 740 3,706 50,736

ii. New Enterprises Creation Programmes (NEC) iii. Existing Entrepreneurs Programmes for Small Business Survival and Growth/ Financial management/Micro Financing The Honble Chief Minister of Tamil Nadu reviewed the working of the EDI and directed that the Entrepreneurship Development Institute should be thoroughly revamped to make it a dynamic institution that will motivate and train your entrepreneurs, particularly first generation entrepreneurs. apart The Honble Chief Minister directed that a sum of Rs.4.00 Crores be set for the construction of a modern The training complex to house the EDI.

Generally, a very narrow view is taken of entrepreneurship development, which has been taken to mean only new enterprises growth, more and newer creation or start-ups. In the context of high industrial technology options and export led growth, entrepreneurship development has to go beyond the paradigm of new enterprise creation alone and address the needs of existing entrepreneurs who may have started initially as necessity based enterprises, and who would require up-gradation, hand192

Government also directed that new courses

193

should be introduced by EDI with the help of industries partners. The Government further directed that EDI should also create a corpus fund by pooling resources from financial institutions, Government, the State and a Central venture besides creating

active consideration.

The Government has

also issued orders sanctioning a sum of Rs. 1 crores towards administration and staff cost of the EDI in As Academic, part G.O. Ms.No. 49, MSME (D1) of restructuring and of EDI, other training from Department, dated 15.12.2011. strengthening of staff by the induction of Administrative faculty now supporting staff has been completed. Core academic handle Apart programmes directly.

capital fund with the support of private industries and foreign investors. The Government has allotted 1.91 acres of land in Alandur Village in T.s. No. 20/2, 21/2 and 22/2 in Block No. 2, Guindy Industrial Estate to the EDI on lease for 30 years on a nominal lease rent of Rs. 1,000/per annum vide G.O. Ms. No. 43, MSME (D1) Department, dated 04.11.2011 to construct a training complex. The land has been handed over to the EDI. Designs and estimates have been finalized and proposals for the sanction to construct a Training Complex have been forwarded to Government and is under

conventional EDP programmes, the EDI is planning to conduct specialized programmes on Export Import Management, Taxation for MSME
5.1

sector,
Training

IT

applications

for

small

business etc.

PMEGP UYEGP -

The Number of beneficiaries trained under this programme is 2,488 The Number of beneficiaries trained under this programme is 2,317

194

195

5.2

Enterprise Development in Coastal Districts Under the International (IFAD) Sustainable Fund for

5.3 One day Training Programme on Occupational Health & Safety for Effluent Plant operators In order to prevent the loss of lives during cleaning of Effluent Treatment Plants (ETP) and Common Effluent Treatment Plants (CETPs), training programmes are proposed to be conducted by the Tamil Nadu Pollution Control Board. This programme covers occupational health and safety, management in small scale units in the textile, tannery and other sectors and will be implemented jointly by the EDI and TNPCB to cover 5,000 operators and supervisors of ETPs and CETPs during the coming months. 5.4 Management Development Programmes and Skill Up-gradation Programmes During the coming financial year various programmes on Management and Skill up-gradation are being planned by the

Agricultural Post ship

Development

Assisted

Tsunami

Livelihoods were

Programme (PTSLP), three day entrepreneurdevelopment programmes conducted to enhance the capacity of the staff of the Cluster Resource Centers (CRCs) and District Implementation Offices (DIOs) on the promotion and development of Micro Enterprises. A total of 90 participants were benefited A during similar December of 2011 one and day January 2012. programme duration on motivation and financial aspects will be executed to cover 1,100 beneficiaries of sub-sector based micro enterprise initiatives in 28 coastal panchayats shortly.

196

197

EDI

on

chargeable

basis

like and

Marketing Import compliance

6.

Conclusion
A robust, Micro, Small and Medium

Management, Management, management,

Export Excise financial

Enterprises (MSME) Sector is the pillar of broad-based economic growth in any country, and this is particularly true of India. The potential of this sector to garner revenue and create employment opportunities while playing a key role in Indias competitiveness in the global markets, is considerable. The MSME sector has maintained a higher rate of growth vis--vis the overall Industrial sector. It contributes 8% of Indias Gross Domestic Product (GDP), besides accounting for 45% of the countrys manufacturing output and 40% of the total exports. It is also estimated to provide employment to about 60 million people spread over 26 million units across the country, which is second only to the agricultural sector.

management,

communication skills, industry specific skill up-gradation for unemployed youth. 5.5 Entrepreneur Awareness Programmes Entrepreneur Awareness Programmes of 1 to 3 days duration specifically for students of Engineering colleges/Schools of Management to sensitise and prepare them for an entrepreneurial career are proposed to be conducted in collaboration with the Entrepreneurial Development Cells of the institutions, Financial Institutions like TIIC.

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199

Sectorally, 67.10% of MSME units are manufacturing enterprises with 32.90% being services enterprises. The reason why

calibrated strategy to deal with these issues. A conscious decision has been taken to revamp, Industries contemporary. These are now visualized as becoming centres of MSME empowerment. For instance, they would disseminate information on the proposed, dedicated, SME focused Stock Exchanges, which would provide these enterprises with an alternative fund raising platform. The Securities and Exchange Board of India (SEBI) has already specified the Model Listing Agreement for SMEs to to ensure that the disappear. Industries responsible The and for get listed in these exchanges. It shall be the departments endeavour the SMEs would would soon of be
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upgrade and make the District Centres relevant and

the MSME Sector is so critical to sustain the economic growth momentum in the country is because about 45.23% of the total number of units are located in rural areas. Consequent to the integration of the workforce with technological enhancements, there has been a considerable improvement in productivity for most MSMEs. The sector has also fuelled the growth in employment in the economy. In spite of these significant indicators, it faces innumerable challenges and impediments, the most critical being access to finance, among several others. Recognizing the myriad challenges

Information Asymmetry that now handicaps Commissionerate Commerce

facing the MSME sector, this department has evolved a measured, comprehensive and

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facilitating this process of transition. In her review of the Department on 18.03.2012, the Honble Chief Minister has issued an explicit and unequivocal directive to take up the comprehensive improvement of facilities and infrastructure Rs. 50 Crores. While wider economic and liberalization better and in each of the District Industries Centres in 32 Districts at a cost of

and challenges. Being homogenous units, SME clusters can provide the following collective benefits: a. A spontaneous inflow of suppliers of raw material, components and machinery. b. Availability of specific skills workers with sector-

globalization have given MSMEs access to markets managerial abilities, they have also exposed them to intense competition. To deal with this, the Department intends to take advantage of the concept of Cluster Development. Industrial Clusters have been visualized as geographical concentrations of enterprises organized sectorally, that is, those with some basic commonalities in terms of opportunities

c. A process of networking, which can lead to competitive advantages. It can also create an environment which is conducive to the development of inter-firm co-operation (by working collaboratively, they can take advantage of market opportunities which otherwise may not have been possible) d. The Co-operation facilitated among Public and Private institutions will promote local production, innovation and collective learning. e. Encouraging of practices and responsible business

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f.

Help in adapting international tools and standards to local contexts. As a result of such collective

operationalising these clusters. take up the implementation

The Honble of twenty

Chief Minister has directed the Department to Industrial Clusters in 2012-2013 and action is being pursued expeditiously in the matter. In TANSI synergy with these on an measures, aggressive

advantages, MSMEs in clusters do not view social and environmental challenges as risks to their survival. Rather, challenges catalyze collective action, dialogue, trust and capacity building. Clusters often turn challenges into market opportunities by working towards improving globally. This promoting Cluster Department Micro, Small believes and that Medium will This their Industrys reputation

has

embarked

marketing of its products and is in the process of modernization and up-gradation of Plant and Machinery. With Governments unstinting support, it would generate profits and symbolize a model undertaking. State Public Sector its The EDI will showcase

Enterprises by developing clusters under the Development Programme catalyze growth and is in the process of relentlessly implementing the same. would turn out to be a powerful driving force for the overall growth of the State. SIDCO is the agency entrusted
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agenda of imparting skills across a wide spectrum of entrepreneurs and would soon emerge as an institution of repute. On 22.03.2012, released the the Honble Chief Nadu Minister 2023 Vision Tamil

document, which envisages a Strategic Plan for the development of Infrastructure in the
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with the task of

State.

It succinctly conceptualizes that the - access to and

Innovation and Entrepreneurship shall be our watchwords and we would strive to make Tamil Nadu an international destination of choice, by a harmonious confluence of our collective synergies.

pillars of SME development are environment; access to

finance; a conducive regulatory and policy technology market access and infrastructure availability. It further adds that these issues will be addressed through a combination of policy measures, skill development and creation of infrastructure facilities. In such a milieu, it is the Honble Chief Ministers Vision that Government shall assume the role of a facilitator to SMEs, providing them with the drive, spirit and capabilities to be the engines of growth in the State. Under the inspiring leadership of our Honble Chief Minister, we shall endeavour to create ideal conditions for the development of a vibrant and dynamic MSME sector.

M.C.SAMPATH Minister for Rural Industries and Nutritious Noon Meal

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MICRO, SMALL AND MEDIUM ENTERPRISES DEPARTMENT

BUDGET ESTIMATE DEMAND NO. 44 (Rupees in Thousands) Budget Estimate 2011-12 1172417 71992 25941 2 Revised Estimate 2011-12 1356793 61057 22055 Budget Estimate 2012-13 2304724 64567 23931 -

Major Heads

2851 Village and Small Industries 2852 Industries 3451 Secretariat Economic Services 4425 Capital Outlay on Co-operation 4851 Capital Outlay on Village and Small Industries 7610Loans to Government Servants etc., 2425 Cooperation TOTAL

7201

8789

1 1277554

1 1448695

1 1000 2394224

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