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MSME- DEVELOPMENT INSTITUTE

CHENNAI

ANNUAL PROGRESS REPORT 2016-17

*****

MSME- DEVELOPMENT INSTITUTE

CHENNAI *****

ANNUAL PROGRESS REPORT 2016-17

*****

GOVERNMENT OF INDIA Ministry of Micro Small and Medium Enterprises

MSME DEVELOPMENT INSTITUTE 65/1, GST Road, Guindy, Chennai-600032

Tel: 044-22501011–12-13 Fax: 044-22501014

Website : www.dcmsme.gov.in

www.msmedi-chennai.gov.in Email : [email protected]

http://www.dcmsme.gov.in/

C O N T E N T

Sl. No. Particulars Page Nos.

1 INTRODUCTION 1 - 4

2 DC-MSME PROGRAMMES – AN OVERVIEW OF

ACHIEVEMENTS 5 - 6

3 SKILL DEVELOPMENT PROGRAMMES (SDP) 7 - 8

4 MICRO AND SMALL ENTERPRISE - CLUSTER

DEVELOPMENT PROGRAMME (MSE-CDP) 9 - 1

5 NMCP SCHEMES 16 - 18

6 CAPACITY ASSESSMENT for NSIC

REGISTRATION 18

7 PUBLIC PROCUREMENT POLICY (PPP) 18 - 21

8 ACTION PLAN TARGETS (APT) AND ITS

ACHIEVEMENTS 22 - 33

9 PUMP/MOTOR TESTING LAB.

(Br. MSME-DI, COIMBATORE & TUTICORIN) 34

1

1. INTRODUCTION 1.1 DEFINITION OF MSME

The classification of Micro, Small and Medium Enterprises is defined under the

MSMED Act 2006. The enterprises are classified in Manufacturing and Service

enterprises, based on the investment in plant and machinery/equipments (excluding

land and building) the classification of Micro, Small and Medium Enterprises along with

UAM Category is given below:-

ENTERPTISE CATEGORY

UAM Category

INVESTMENT LEVEL UAM Category

INVESTMENT LEVEL MANUFACTURING

ENTERPRISES SERVICE ENTERPRISES

MICRO A Upto Rs.25 Lakh D Upto Rs.10 Lakh

SMALL B Above Rs.25 Lakh and Upto Rs.5 Crore E Above Rs.10 Lakh and Upto

Rs.2 Crore

MEDIUM C Above Rs.5 Crore and Upto Rs.10 Crore F Above Rs.2 Crore and Upto

Rs.5 Crore 1.2 ROLE OF MSMES IN INDIAN ECONOMY

The role of Micro, Small and Medium enterprises (MSMEs) in the economic and social development of the country is well established. As per the Report of the Working Group on Micro, Small and Medium Enterprises (MSMEs) Growth for 12th Five Year Plan (2012-2017), the sector accounts for 45% of the manufacturing output and 40% of total exports of the country. As per the Fourth All India Census of MSME, 2006, there are over 36 million MSMEs in India contributing 42% to India’s manufacturing output, 40% to India’s exports, and approximately 8% to India’s GDP. Further, nearly 32% of the enterprises are engaged in manufacturing activities, while the remaining 68% are engaged in services. Over 6,000 products ranging from traditional to high-tech items are being manufactured by the MSMEs in the country. The labour to capital ratio in MSMEs and the overall growth in the sector is much higher than in the large industries. The geographic distribution of the MSMEs is also more even.

1.3 MSME SECTOR IN TAMIL NADU

There has been a phenomenal growth of MSMEs in Tamil Nadu. The sector produces a wide variety of products in almost all fields, the prominent among them are the Textile, electronic products, engineering products, auto ancillaries, leather products, chemicals, plastics, garments jewellery etc.

There are 12.94 Lakh registered number of units in the State, providing an employment opportunities to about 80.81 Lakh persons. Since 2007-08 around 7.22 Lakh Entrepreneurs have filed EM Acknowledgement Part-II, providing Employment opportunities to about 41.41 Lakh persons with total investments Rs.1,09,074.17 Crore.

2

Consequent to the introduction of UDYOG AADHAAR MEMORANDUM (UAM) by the Ministry of MSME, Tamil Nadu has started the UAM implementation w.e.f 21.1.2016. District-wise number of Units registered with UAM in Tamil Nadu and Puducherry separately for Micro, small and Medium category as on 25.5.2017 is given in the Table below :

Enterprises with Udyog Aadhaar Number in Tamil Nadu as on 25.5.2017 (3.30 PM)

Sl No. District Name Micro Small Medium TOTAL

1 ARIYALUR 409 60 1 470 2 CHENNAI 51511 7947 229 59687 3 COIMBATORE 33481 5369 115 38965 4 CUDDALORE 3198 363 8 3569 5 DHARMAPURI 3111 307 8 3426 6 DINDIGUL 4580 634 28 5242 7 ERODE 16048 1806 37 17891 8 KANCHIPURAM 22307 2908 80 25295 9 KANYAKUMARI 5529 1006 24 6559

10 KARUR 3296 590 5 3891 11 KRISHNAGIRI 5765 1320 42 7127 12 MADURAI 18216 1920 32 20168 13 NAGAPATTINAM 1375 295 3 1673 14 NAMAKKAL 7120 1585 22 8727 15 NILGIRISH 770 81 1 852 16 PERAMBALUR 515 110 0 625 17 PUDUKKOTTAI 2387 395 9 2791 18 RAMANATHAPURAM 1148 252 3 1403 19 SALEM 21853 1645 31 23529 20 SIVAGANGA 1676 263 8 1947 21 THANJAVUR 3099 493 8 3600 22 THENI 2870 279 2 3151 23 THIRUVALLUR 17220 2874 62 20156 24 THIRUVARUR 1082 210 6 1298 25 THOOTHUKUDI 4388 978 19 5385 26 TIRUCHIRAPALLI 5324 939 19 6282 27 TIRUNELVELI 6084 927 21 7032 28 TIRUPPUR 31463 3857 75 35395 29 TIRUVANNAMALAI 2926 345 8 3279 30 VELLORE 6826 1163 27 8016 31 VILLUPURAM 3335 534 30 3899 32 VIRUDHUNAGAR 7246 786 15 8047 Total : 296,158 42,241 978 339,377

3

Enterprises with Udyog Aadhaar Number in PUDUCHERRY

as on 25.5.2017 (3.30 PM) Sl.

No. District Name Micro Small Medium TOTAL

1 KARAIKAL 140 46 0 186

2 MEHE 5 0 0 5

3 PONDICHERRY 1590 416 25 2031

4 YANAM 3 2 0 5

Total : 1,738 464 25 2,227 1.4 ROLE OF MSME-DI, CHENNAI

MSME-DI, Chennai is one of the field outfit of Office of Development Commissioner, Ministry of Micro, Small and Medium Enterprises (DC-MSME) established in the year 1954, for the State of Tamil Nadu and UT of Puducherry, with the following mandate:

¾ For Aspiring entrepreneurs : Identify, motivate, train, handhold and

providementoring services.

¾ For Existing entrepreneurs :To provide techno-economic consultancy andfacilitation service.

¾ Skill Development: To impart need based skill training through SkillDevelopment Programmes (SDP)

In order to fulfill the mandate and to encourage entrepreneurship, employment and livelihood opportunities for aspiring and existing entrepreneurs across the State, this Institute is offering a wide spectrum of value added services as given below:

1) One day Industrial Motivation Campaign (IMC)

2) 2 weeks Entrepreneur Development programme (EDP)

3) 6 weeks Entrepreneur Skill Development Programme (ESDP)

4) Skill Development Programmes (SDP)

5) Vendor Development Programmes (National& State level)

6) Technical consultancy

7) Preparation of Project Reports

8) Marketing Assistanceand Technology Upgradation ( MATU) Scheme

9) Seminars/Workshop on various subjects

10) Cluster Development

11) Awareness programmes on Public Procurement Policy

12) Export Promotion/Guidance

4

13) Industrial Potential Survey Reports

14) ISO and ZED Certification consultancy and reimbursement

15) Free guidance for Udyog Aadhaar Memorandum (UAM)

1.5 JURISDICTION

This Institute covers all the 32 Districts of Tamil Nadu and 4 Districts of UT of Puducherry.For smooth implementation of the programmes, 3 more Branch MSME-DIs are functioning under the jurisdiction of this Institute, one each at Coimbatore, Tuticorin and Tirunelveli.

1.6 ORGANISATIONAL STRUCTURE

This Institute is headed by Shri G. Shanmuganathan, Additional Industrial Adviser, who is also a Member of Board of Director of various Task Force Committees viz., Tamil Nadu Small Industries Development Corporation (TANSIDCO) State Level Bankers Committee (SLBC), State Level Inter Institutional Committee (SLIIC) of RBI, State Level Advisory Board (SLAB), Unemployed Youth Employment Generation Programme (UYEGP), Prime Minister Employment Generation Programme (PMEGP), New Entrepreneur Entrepreneurship Development Scheme (NEEDS) etc.

The Additional Industrial Adviser is supported by 7 Deputy Directors, 4

Gr.I Assistant Directors, 13 Gr.II Assistant Directors, 3 Investigators all in various disciplines including Electrical, Electronics, Mechanical, Chemical, Food, Glass & Ceramics, Leather, Metallurgy, Hosiery, Statistics, Economics etc. along with nearly 40 Ministerial/Secretarial Staff members. Total Allocation of Fund for the year 2016-17 to this office for office expenses, salary etc. vis-à-vis Expenditure stands at Rs.8,30,73,422 and Rs.7,86,86,852 respectively.

1.7 INFRASTRUCTURE

This Institute is well equipped with the following infrastructure facilities to carrying out the mandate. ¾ Total Land Area : 4.11 acres ¾ Building Area : 2831 sq. mtrs. ¾ Conference Hall : 1 ¾ Auditoriums : 2 ¾ Training Halls : 8 ¾ Workshop sheds : 2 ¾ Canteen : 1 ¾ Library hall : 1 (with appox. 7000 books and 300

periodicals/journals)

5

2. DC-MSME PROGRAMMES – AN OVERVIEW OF ACHIEVEMENTS

This Institute has been instrumental in creating potential entrepreneurs every year, identified through various Entrepreneurship and Training (E&T) programmes with 100% achievement of target during the last few years. A gist of various training programmes and activities conducted by this Institute is given below: 2.1 INDUSTRIAL MOTIVATION CAMPAIGNS (IMC )

During the year 2016-17 this Institute has conducted 30 Industrial Motivation Campaigns as allotted by the Hqrs. which helps to motivate 2197 aspiring entrepreneurs as per break up details given below.

Category No. of prg.

allotted No. of prg. completed

No. of Participants Male Female Total

Genl. 13 13 737 451 1188 SC 10 10 332 320 652 ST 7 7 110 248 358

TOTAL 30 30 1179 1019 2198

CATEGORY SC ST OBC CHRISTIAN MUSLIM PH OHERS TOTAL

MALE 456 111 492 13 22 3 82 1179

FEMALE 379 196 320 11 55 0 58 1019

TOTAL 835 307 812 24 77 3 140 2198

2.2 ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES (EDP)

During the year 2016-17 this Institutewas allotted with 1 EDP training programme to nurture the talent of unemployed youth by enlightening them on various aspects of industrial activity required for setting up MSEs as per break up details given below.

Category No. of

Programme allotted

No. of Programme completed

No. of Participants

Male Female TOTAL

Non-Stipendiary

UEY (Genl.) 0 0 0 0 0 SC 1 1 3 17 20 ST 0 0 0 0 0

Stipendiary Women & PH 0 0 0 0 0 SC 0 0 0 0 0

TOTAL 1 1 3 17 20

6

CATEGORY SC ST OBC CHRISTIAN MUSLIM PH OHERS TOTAL MALE 2 - 1 0 0 0 0 3

FEMALE 8 - 9 0 0 0 0 17

TOTAL 10 - 10 0 0 0 0 20

2.3 ENTREPRENEURSHIP SKILL DEVELOPMENT PROGRAMMES (ESDP)

During the year 2016-17 this Institute was allotted with 22 ESDP training programme to impart intensive training to the unemployed youth by enlightening them on various fields of industrial activity required for setting up MSEs as per break up details given below.

Category

No. of Programme

allotted

No. of Programme completed

No. of Participants

Male Female TOTAL

Non-Stipendiary

UEY (Genl.) 7 7 51 130 181 SC 7 7 41 129 170 ST 4 4 17 76 93

Stipendiary Women & PH 2 2 5 44 49

SC 1 1 10 10 20 ST 1 1 0 25 25

TOTAL 22 22 124 414 538

SC ST OBC CHRISTIAN MUSLIM PH OTHERS TOTAL

Male 55 21 37 5 0 5 1 124 Female 169 89 70 11 4 3 68 414 TOTAL 224 110 107 16 4 8 69 538

7

3. SKILL DEVELOPMENT PROGRAMMES(SDP)

This Institute has conducted need based self financing skill development Programmes under Personal Deposit (PD) Account on various topics as Skill Development Programmes (SDP) to the targeted beneficiaries through experts in the relevant field of training. Nominal fees were charged from the candidates with 50% fee concession to SC/ST/PH candidates. The duration of the programme varies from one day to three months depending on the subject of the training programme.

During the year 2016-17, a total of 121 Skill Development programmes were conducted by this Institute benefiting 2,757 aspiring/existing entrepreneurs as compared to 404 programmes and 7923 beneficiaries in 2015-16. An amount of Rs.1.84 crores has been collected as training fee from the participants and out of this, an amount of Rs.0.46 crores has been deposited to Government Exchequer under Govt. remittance as per norms during 2016-17 as compared to the training fee of Rs.5.07 crores and Govt. remittance of Rs.1.21 crores during the corresponding period a year ago. A list of self financing skill development programmes conducted during the year 2016-17 is given below:-

Sl.

No. Name of the programme No. of Prg. conducted

No. of Beneficiaries

1. Export Import procedures & Documentations 10 361

2. Big Data Analytics 3 40

3. Digital Marketing 2 41

4. Could Computing 3 42

5. Solar Power Technology 4 109

6. Gold Appraiser 20 395

7. Android Mobile Applications 1 16

8. Cell Phone Repairing & Servicing 5 102

9. Computer hardware and networking 4 86

10. Motor Pump Testing 1 3

11. Export marketing and Documentation 1 37

12. LED light products manufacturing 1 26

13. Mushroom cultivation & Mushroom food products 1 22 14. Best practices for Civil Construction Supervisor 3 129 15. Land Survey using tool station 1 27

16. Building planning surveyor 1 27

17. Accounting & Taxation using TALLY ERP 3 54

18. Six Sigma Green Belt 4 63

19. Oil & Gas Safety Management 5 68

8

20. Master CAD in Civil Engg. 6 55

21. Master CAD in Mechanical Engg. 4 13

22. Financial Analyst 1 15

23. Modern Technology of Building Construction Repairing & Renovation

2 53

24. Spirulina processing & Value added products 1 54

25. Shipping & logistics 2 42

26. Ware house & Distribution management 1 29

27. Industrial fire safety management 2 94

28. TOCAF 9.1 1 12

29. Advertisement & Film making 1 30

30. Laptop chip level servicing 2 31

31. OHSAS 18001:2007 and 18002:2008 1 51

32. OHSAS 18001:2007 Internal Auditor 1 19

33. Entrepreneurship in setting up a mini BPO 1 53

34. Solar Electrical Gadget (Product Assembling) 2 37

35. Auto Electrician (CAR) 2 31

36. ISO 9001:2015 QMS internal Audit 3 101

36. Project Management 1 27

37. Laboratory Quality System Management ISO – IEC 17025:2005

3 46

38. ISO 14001:2015 Environmental Management System

2 41

39. Bakery & Allied products 1 21

40. Millet organic food products 1 26

41. Food & Allied products 2 67

42. CCTV Camera Installation 1 45

43. LED light products manufacturing Training 1 14

44. Cosmetics & Perfumery products 1 22

45. Solar Photo voltaic system Design installation, project Engg. & Management

1 40

46. Simple Chemical Products 1 40

Total 121 2,757

9

4. MICRO AND SMALL ENTERPRISE -CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP)

The Ministry of Micro, Small and Medium Enterprises has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Clustering of units also enables providers of various services to them, including banks and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.

Tamil Nadu is one of the successful States in implementing the MSE-CDP scheme of Govt. of India for the benefit of MSE units under group initiatives. This Institute, with the active support of Government of Tamil Nadu was able to achieve success in implementation of 30 clusters in the State of Tamil Nadu under the MSE-CDP Scheme. Tamil Nadu Small Industries Development Corporation (TANSIDCO) is the implementing and fund routing agency for all the clusters under MSE-CDP in the State of Tamil Nadu. Common Facility Centre (CFC) for 11 Clusters have already been completed successfully with a total cost of Rs.32.53 cr. out of which GoI contribution is Rs.21.33 cr. Further 19 CFCs are in various stages of completion with a total cost of Rs.130.72 crores out of which GoI contribution is Rs.90.25 cr. The summary abstract of clusters are given below:-

(Rs.in Cr)

Sl. No. Status Nos.

Total Project

Cost

Grant share Grant released

GOI GOTN GOI GOTN

1 CFC proposals completed 11 32.53 21.33 2.61 20.16 2.45

2 CFC proposals – under various stages of progress 19 130.72 90.25 9.38 38.94 7.14

3 CFC proposals – pending for final approval from GOI 02 23.10 19.34 1.00 0.00 0.00

4 CFC proposals – pending for in principal approval from GOI

02 30.93 24.05 2.00 0.00 0.00

5 CFC proposals Not approved by Govt./Under revision

20 182.63 127.34 12.00 0.00 0.00

TOTAL 54 399.91 282.31 26.99 59.10 9.59

Out of the above completed 11 clusters, 6 identical clusters with a common CFC for Dipping Plant are fromSafety Match Clusters located one each at Virudhunagar, Sattur, Kovilpatti, Kalugumalai, Srivilliputtur, and Gudiyatham.

10

The Safety match manufacturing cluster is an artisan type cluster, providing employment to about 2.5 lakh people - both direct and indirect. These artisan type clusters were unable to withstand the threshold of competition emerged from the mechanized players. The CFC facility of Dipping Plant machinery imported from China for the safety match clusters is a boon to the members and breeder of employment opportunity. TANSIDCO was very supportive in providing timely and adequate raw material support of potassium chlorate required for the CFC. The dipping plant installed in the above 7 centres have started supporting members and non members of the handmade safety match enterprises housed within the vicinity of 10-15 kms . The production and income generation capacity at unit level has also increased substantially. Export possibilities are also being examined. The All India Federation of Cottage Matches Manufacturers’ Association, Virudhunagar has played a proactive role towards strengthening the above Clusters.

The other five clusters who have completed CFCs are i) Wet Grinder Cluster, Coimbatore for Copper wire drawing facility, ii) Sago cluster, Salem for testing facility, iii) Printing cluster, Krishnagiri for four colour offset printer facility iv) Ceramic Cluster, Vridhachalam for Tunnel Kiln facility and Rice Mill cluster, Keelapavur for Solvent Extraction Plant . All the five clusters are running successfully and the visible benefits are being collected by MSME-DI officers individually for compilation. MSME-DI officers are regularly visiting the CFCs during joint inspection with other stake holders. The following three clusters are under submission of CFC completion report and are likely to commence their CFC before 31/09/2017 as per time schedule given by Govt. of India.

1. Printing Cluster Sivakasi 2. Rice Mill Cluster, Alangulam 3. Engineering Cluster (Auto components), Hosur

Most of the clusters are unable to complete their CFC as per schedule and

tender norms due to delay in upfront contribution from Govt. of Tamil Nadu, which ultimately delayed the release of fund from Govt. of India. This resulted in delay in payment to the suppliers by the clusters. Recently TANSIDCO has come forward to release Govt. of Tamil Nadu share out of their fund in case of delay in release from Govt. of Tamil Nadu. The Secretary, MSME Govt. of India has also conveyed his kind approval for the initiative by TANSIDCO.

11

STATUS OF CLUSTERs UNDER MSE-CDP IN TAMIL NADU AND PUDUCHERRY AS ON 31.3.2017

(Rs. In lakhs)

I. CFC PROJECTS COMPLETED [ 11 NOS. ] Amount released

SL. No.

Cluster name/ Location Distt. Product/

CFC Date of

Approval Total Cost

GoI share

GoTN share SPV Bank Status GoI GoTN

1 Safety Matches, Gudiyatham Vellore Dipping

Plant

12.0

8.20

08

156.

00

85.5

4

10.7

3

25.0

0

34.7

3 Project completed 76

.95

9.65

2 Safety Matches, Virudhunagar

Virudhunagar

Dipping Plant

12.0

8.20

08

156.

00

85.5

4

10.7

3

25.0

0

34.7


.95

9.65

3 Safety Matches, Srivilliputhur.

Virudhunagar

Dipping Plant

12.0

8.20

08

156.

00

85.5

4

10.7

3

25.0

0

34.7


.95

9.65

4 Safety Matches, Sattur

Virudhunagar

Dipping Plant

12.0

8.20

08

156.

00

85.5

4

10.7

3

25.0

0

34.7


.95

9.65

5 Safety Matches, Kazhugumalai

Thoothukudi

Dipping Plant

12.0

8.20

08

156.

00

85.5

4

10.7

3

25.0

0

34.7


.95

9.65

6 Safety Matches, Kovilpatti

Thoothukudi

Dipping Plant

12.0

8.20

08

156.

00

85.5

4

10.7

3

25.0

0

34.7


.95

9.65

7 Sago & Starch, Salem (Phase-I)

Salem Testing Facility

12.0

8.20

08

92.0

6

73.3

1

0.00

18.7

5

0.00

Project completed 73

.31

0.00

8 Printing, Krishnagiri

Krishna giri

4 colour offset

printing machine

28.0

8.20

12

1172

.52

964.

14

100.

00

108.

38

0.00

Project completed.

936.

80

90.0

0 9 Wet Grinder,

Coimbatore Coimba tore

Copper wire

drawing & stamping

facility 28.0

1.20

05

288.

20

99.0

0

16.5

2

172.

68

0.00

Project completed 89

.10

16.5

2

10 Ceramic, Vridhachalam Cuddalore Tunnel Kiln

09.0

6.20

10

73.1

0

43.8

6

9.57

18.4

5

10.7


.00

9.57

11 Engg.(Auto Components) Hosur

Krishna giri

Decoiling, testing

cum calibration

13.0

4.20

11

690.

94

439.

89

70.7

5

105.

30

75.0

0 Project completed

433.

26

70.7

5

TOTAL - I

3252

.82

2133

.44

261.

22

573.

56

294.

17

2016

.17

244.

74

12

2. FINAL APPROVAL GIVEN/ ON-GOING CFC PROJECTS (21 Nos.) Amount released

SL. No.

Cluster name/

Location Distt. Product/

CFC Date of

Approval Total Cost

GoI share


1 Brick, Duraisamiya- puram

Tirunelveli

19.0

4.20

10

227.

28

122.

73

22.7

2

29.5

5

52.2

7

Trial run over. Production yet to start due to sand extraction approval. GoI dropped the proposal due to inordinate delay to complete the CFC by SPV. Sand approval not recd. 80

.00

14.0

7

2 Engineering, Ranipet

Vellore Heavy Engg. Fabrication

04.0

3.20

11

927.

08

616.

39

97.2

1

109.

35

104.

13 Under final stage of

.Extension of Time given upto 30/6/17.

431.

16

97.2

1

3 Printing, Sivakasi

Virudhu-nagar

5 colour offset printing Machine

03.0

2.20

11

(13/

3/20

14

revi

sed)

1314

.75

767.

81

90.6

6

180.

28

276.

00 Under final stage.

Only Lab equipments awaited. Extension of Time given upto 31/5/17. 70

7.00

90.6

6

4 Rice Mill, Keelapavoor

Tirunelveli

Solvent Extraction Plant Testing/training centre 04

.04.

2011

690.

58

466.

03

69.0

5

145.

5 10.0

0 Inauguration on 10/4/2017. Extension of Time given upto 31/5/17.

429.

00

69.0

5

5 Rice Mill, Alangulam

Tirunelveli Color sorter/Silo Storage

21.0

1.20

13

787.

00

550.

25

78.9

1

83.7

5 74.0

9 Under final stage. Poha machine under installation. Extension of Time given upto 31/7/17. 52

5.17

78.9

1

6 Steel Product Fabrication, Salem.

Salem

Heavy Stainless Steel fabrication 03

.05.

13

1632

.74

1277

.71

0.00

255.

03 0.

00 Under middle stage of machinery installation. GOI grant awaited. Extension of Time given upto 30/9/17.

511.

00

0.00

7 Rice Mill, Thanjavur

Thanjavur

Parboiling/Color Sorter/ Pre cleaning / testing facility

10.0

9.13

212.

06

100.

23

40.4

3

21.4

0

50.0

0 Under middle stage of machinery installation..Extension of Time given upto 30/9/17.

40.0

0

40.4

3

8

Plastic(Woven Sack) Kancheepuram

Kanchee-puram

Extruder/ Lamination Plant

01.1

0.13

1485

.12

1026

.96

100.

00

258.

16 10

0.00

1st phase of machinery installation completed. 2nd phase machinery under installation.. GoI 1st inst. released to SIDCO. 31

1.82

71.0

0

9

Coir Singamuneri (Implemented by Coir Board Cochi)

Sivagangi

PV Tufted Mat and R & D centre

13.09.2010 (29/8/13

revised final approval for revsied cost)

658.

90

500.

00

65.8

9

93.0

0 0.00

Waiting for EB connection for Trial run.

400.

00

39.4

4

10 Engineering, Paramakudi

Ramanatha puram

Structural Fabrication Centre, R&D Cum Testing and Training Centre

24.0

3.14

498.

89

373.

80

23.3

4

53.7

5

48.0

0

Under final stage of machinery installation. Extension of Time given upto 3109/17.

149.

52

23.3

4

11 Gate & Grills, Thirumullaivoyal

Thiruvallur Steel Rolling Mill facility

14.0

3.20

14

284.

87

197.

93

29.6

9

57.2

5

0.00

Under middle stage of machinery installation. Extension of Time given upto 30/9/17.

79.1

7

29.6

9

13

12

Readymade Garment Cluster (Women), Dhalavaipuram

Virudhu-nagar

Computerized Embroidery and Stitching/ Training facility

31.3

.201

4

104.

24

74.2

8

9.36

20.6

0

0.00

Under initial stage of mahcinery installation. .Extension of Time given upto 30/9/17.

29.7

1

6.55

13 Gold Jewellery, Madurai

Madurai

Common melting facility, common pressing & die Casting facility. Gold check facility

13.3

.201

4

356.

46

255.

80

29.1

4

39.9

2

31.6

0

Under initial stage of machinery installation. No fund released. SPV arranging bridge loan. .Extension of Time given upto 30/9/17.

0.00

11.6

6

14 Power and AutoLoom, Salem

Salem

Warping, dyeing, looming facility, ETP

14.0

3.20

14

1333

.96

886.

45

98.7

8

162.

18

186.

55 Under initial stage of

machinery installation

0.00

49.5

8

15 Safety Match O.Mettupatty

Virudhu-nagar

Common Dipping Plant

28.3

.201

4

346.

89

204.

64

36.0

0

42.5

0

63.7

5

Under initial stage of machinery installation. GOI grant not received. Extension of Time given upto 31/2017. 0.

00

14.4

0

16

Stainless Steel, Kumbakonam

Thanjavur

Buffing/Hydraulic Deep Draw / Power Press facility 31

.3.2

014

126.

30

98.8

3

7.90

19.5

7

0.00

Under middle stage of machineryinstallation. Extension of Time given upto 30/9/17.

39.5

3

7.90

17 Coir, Erode Erode

Processing Centre for PVC/Latex coated Tufted Mat Bleaching & Stenciling Facility

23.1

2.20

14

600.

00

411.

93

48.6

5

60.0

0

79.4

2

Under initial stage of mahcinery installation. EOT sought by SIDCO upto 31/7/17.

161.

17

48.6

5

18 Engineering, Ambattur

Thiruvallur

Common Processing Centre. Testing Centre, Tool Room Training Centre

15.0

5.20

13

1124

.42

805.

33

54.4

4

114.

65

150.

00

Under initial stage of mahcinery installation. EOT sought by SIDCO upto 31/10/17.

0.00

21.7

8

19 Gold Jewellary Trichy

Trichy Common melting facility, common pressing & die Casting facility. Gold check facility

08.0

1.20

16

360.

30

288.

24

36.0

3

36.0

3

0.00

SPV to submit copy of registered lease deed which was sent to GoI by SIDCO..

0.00

0.00

TOTAL -2

1307

1.84

9025

.34

938.

20

1782

.47

1225

.81

3894

.25

714.

32

14

3. PENDING FOR HARD INTERVENTION FINAL APPROVAL (CFC) FROM GOI (2) Amount released

SL. No.

Cluster name/ Location

Distt. Product/ CFC

Date of Approval

Total Cost

GoI share

GoTN share SPV Bank Status GoI GoT

N

1 Sweater Cluster, Coonoor

The Nilgiris

Computer aided knitting embroidary

863.

96

777.

56

0.00

81.4

0

0.00

In principal approval given in 43rd SCM meeting held on 09/3/17. Administrative orders awaited.

2 Wooden Furniture Cluster

Salem

Raw material-Primary processing & seasoning facility

1446

.33

1156

.85

100.

00

189.

48

0.00

In principal approval given in 43rd SCM meeting held on 09/3/17. Administrative orders awaited.

TOTAL - 3

2310

.29

1934

.41

100.

00

270.

88

0.00

0.00

0.00

4. PENDING FOR HARD INTERVENTION IN PRINCIPAL APPROVAL (CFC) FROM GOI (2) Amount released

SL. No.

Cluster name/


CFC Date of

Approval Total Cost

GoI share


1 Apparal Cluster

Tirupur

Value-added apparel digital printing/

embroidery machineries, training

/testing facility

1556

.94

1155

.13

100.

00

301.

81

0.00

All clarification sent to GOI by SIDCO. GoI in-principal approval awaited. Online comments of MSME-DI yet to be given.

2

Textile Kniting cluster

Tirupur

Computerised circular knitting

machine and advanced auto

striper machine, Training and testing

facility

1535

.93

1250

.00

100.

00

185.

93

0.00

All clarification sent to GOI by SIDCO. GoI in-principal approval awaited. Online comments of MSME-DI yet to be given.

TOTAL -4

3092

.87

2405

.13

200.

00

487.

74

0.00

0.00

0.00

5. PROJECTS NOT APPROVED/ UNDER REVISION FOR HARD INTERVENTION (CFC) - (18 No.) Amount released

SL. No.

Cluster name/


CFC Date of Approv

al Total Cost

GoI share


1 Refractory, Virudhachalam

Cuddalore

Kiln, Processing section,

Tool Room Testing centre

and R & D 13.0

3.20

14

896.

46

571.

44

89.8

5

135.

17

100.

00

SPV not showing

progress/ interest. GOI dropped the

proposal.

0.00

0.00

2 Sago(Phase-II) Salem Conveyor/ Networking facility

15.0

5.20

13

247.

17

221.

64

0

25.5

3

0.00

SPV availed out of their own funds

without waiting for

GoI.

0.00

0.00

3 Lorry Body Building, Namakkal

Namakkal

Shearing, Pressing, Drawing and

rolling machine

1473

.61

1107

.29

98.5

3

232.

79

35.0

0

GoI advised SPV to submit revised DPR as per ARI

norms and utilise Design clinic scheme facility also.

15

5 Rice Mill, Kangayam Tiruppur

Silo storage,Testing centre, Weigh Bridge

750.

53

525.

37

75.0

5

95.1

1

55.0

0 Not approved by GOI

6 Lime, Tirunelveli

Tirunelveli Lime products

788.

45

630.

73

78.8

5

78.8

7

0.00

Not approved by GOI

7 Electronics , Coimbatore

Coimba tore Electronic Products

1482

.00

1037

.40

100.

00

197.

16

147.

44

Not approved by GOI

8 Corrugated Box, Thiruvallur

Tiruvallur

Manufacturing kraft paper out of waste

1884

.35

1050

.00

100.

00

534.

35

200.

00

Not approved by GOI

9 Rice Mill Tiruchendur Tuticorin

Parboiling/Color Sorter/ Pre cleaning / testing facility

1070

.00

711.

60

100.

00

123.

40

135.

00

Not approved by GOI

10 Safety Match Cluster Sattur (Ph.II)

Virudu nagar Dipping Plant

135.

76

105.

09

0.00

13.8

7

16.8


11 Safety Match Cluster Sivakasi

Virudu nagar Dipping Plant

293.

73

177.

80

29.3

8

36.5

9

50.0


12 Cement Pipes, Chinnadhara puram

Karur Cement products

722.

52

486.

46

55.8

5

85.7

5

94.4


13 Readymade Garment, Virudunagar

Virudu nagar

Computerized Embroidery and Stitching/ Training facility

1363

.70

991.

37

99.0

0

137.

91

135.

42

Not approved by GOI

14 Power Loom, Rasipuram

Namakkal

Warping/Dyeing/ Szsizing facility

550.

54

371.

86

45.5

1

59.1

2

74.0


15 Cashew, Kanyakumari

Kanya kumari Cashew products

1486

.94

1277

.16

61.0

9

148.

69

0.00

Not approved by GOI

16 Safety Match Cluster Sivakasi

Virudunagar Dipping Plant

293.

77

177.

80

29.3

8

36.5

9

50.0


17 Engineering, Perungudi

Kanchee-puram Heavy Fabrication

77.0

0

59.6

0

7.45

5.50

4.45

Not approved by GOI

18 Enginering cluster Dindugul

Dindigul Heavy Fabrication

971.

29

651.

34

97.1

3

132.

82

90.0

0

In principle approval given. SPV not showing interest. Proposal dropped

19 Plastic Madurai Madurai Plastic Products

524.

42

342.

96

33.1

1

73.3

5

75.0


19 Leather, Ranipet Vellore Leather Products

2183

.17

1500

.00

0.00

683.

17

0.00

Under revision

20 Coir, Polachi

Coimbatore Coir products

1067

.89

736.

93

100.

00

110.

96

120.

00

Under revision

TOTAL -5

1826

3.30

1273

3.84

1200

.18

2946

.70

1382

.62

0.00

0.00

GRAND TOTAL 1-5

3999

1.12

2823

2.16

2699

.60

6061

.35

2902

.60

5910

.42

959.

06

16

5. NATIONAL MAUFACTURING COMPETITIVENESS (NMCP) SCHEME

5.1 LEAN MANUFACURING : The Lean Manufacturing Scheme is basically a business initiative to reduce

“waste” in manufacturing.The objective of the Scheme is to enhance the

manufacturing competitiveness of MSMEs through application of various Lean

Manufacturing Techniques (e.g. Total Productive Maintenance (TPM), 5S, Visual

control, Standard Operation Procedures, Just in Time, Kanban System, Cellular

Layout, Poka Yoke, TPM, etc.).National Productivity Council (NPC) and Quality

Council of India (QCI) have been selected as National Monitoring and

Implementing Units (NMIUs) for the up-scaled scheme.

Awareness programmes and workshops are being organized in order to

create awareness among the entrepreneurs and further they are motivated to

form mini cluster comprising of 6 to 10 units (ideally 10 units) for availing the

scheme. LM consultants are deployed in the Special Purpose Vehicle

(SPV)/Distinct Product Group (DPG) for LM Interventions for a period of 18

months. 80% of the cost of hiring the lean manufacturing consultant (LMC) is

reimbursed through NMIUs to SPVs/Units and 20% of the cost is borne by the

SPVs/units. During the year 2016-17, a total of 35 LMCS Cluster were formed

through QCI and NPC as per the details given below:

Sl. No. Name of the Agency No. of LMCS Cluster 1 No. of Clusters by QCI 25 2 No. of Clusters by NPC, Chennai 8 3 No. of Clusters by NPC, Bangalore 2

TOTAL 35

5.2 TECHNOLOGY BUSINESS INCUMABTOR SUPPORT

During the year, this Institute has motivated 15 Engineering Colleges/Research Institutes, across the State to become Host Institutes for technology business incubators and avail GoI grant under the scheme. Moreover, this Institute has organized 5 Special Awareness Programme on Business Incubation titled “Support for Entrepreneurial and Managerial Development of SMEs through Incubator” with 2 each in Kanchipuram and Sivagangai and 1 in Erode for the benefit of 293 persons during the period of report. An amount of Rs.88,639 was spent against the sanctioned amount of Rs.1,00,000 for these awareness programmes. The list of 15 Institutes applied for to become host institutes under the scheme during the period is given below:-

17

Sl. No District College / Institutions

1 Kanchipuram Agni College of Technology, Old Mahabalipuram Road, Thalambur, Chennai-600130

2 Kanchipuram KCG College of Technology,Rajiv Gandhi Salai (OMR), Karapakkam, Chennai, Tamil Nadu - 600097

3 Kanchipuram Valliammai Engineering College, SRM Nagar, Kattankulathur - 603203

4 Kanchipuram Sai Ram Engineering College, Sai Leo Nagar, West Tambaram, Chennai - 600044

5 Kanchipuram Jeppiaar SRR Engineering College,Old Mamallapuram Road, I.T High Way, Padur, Chennai, Tamil Nadu 603103

6 Salem Knowledge Institute of Technology, KIOT Campus, Kakapalayam Post, Salem - 637504

7 Salem Mahendra College of Engineering ,Mahendra Salem Campus, Attu Main Road, Minnampalli, Salem- 636106

8 Salem VSA Educational and Charitable Trust group of Institution, NH-47, Main Road, Uthamasolapuram Post, Salem Dist. -010

9 Namakkal Excel College of Engineering & Technology, NH-47, Salem Main Road, Pallakapalaym, Sankari West Post, Komarapalayam Tk., Namakkal Dist. -637303

10 Namakkal Paavai Engineering College, Paavai Nagar, Pachal, Salem - Namakkal - Trichy Rd, Namakkal dist. , Tamil Nadu 637018

11 Coimbatore Sri Eshwar College of Engineering,Kondampatti Post, Vadasithur (Via), Kinathukadavu, Coimbatore-641202

12 Tiruvallur R.M.D. Engineering College,R.S.M. Nagar, Kavaraipettai, Gummidipoondi TK., Thiruvallur Dt. , Tamil Nadu - 601206

13 Tiruvallur R.M.K. College of Engineering & Technology, R.S.M. Nagar, Puduvoyal, Gummidipoondi TK., Thiruvallur District , Tamil Nadu - 601206

14 Madurai Anna University, MaduraiRegional Campus Madurai, Keelakuyilkudi, Madurai - 625019

15 Erode Nanda Engineering College,Pitchandamapalayam Post, Vaikkalmedu, Erode-Perundurai road, Erode Dt. , Tamil Nadu

Awareness programme on Business Incubator at Kancheepuram – Sept. 2016

18

5.3 QMS/QTT

During the year 2016-17, an awareness Programme on QMS/QTT was conducted as per sanction at Dindigul. An amount of Rs.79,000 has been incurred as expenditure for conducting the awareness programme as per details given below:-

Name of the prg. Amount Sanctioned

Expenditure District No. of

Beneficiaries

Awareness Prg. On QMS/QTT 79,000 79,000 Dindigul 102

QMS/QTT programme at Dindigul – July 2016

6. CAPACITY ASSESSMENT for NSIC REGISTRATION

Officers from this Institute have carried out inspection for capacity assessment of 172 MSEs (which includes 138 manufacturing Units and 34 Service Units) towards single point registration under NSIC during the year 2016-17. An amount of Rs.3,68,825 has been collected towards fee for the above inspections during the period.

7. PUBLIC PROCUREMENT POLICY (PPP)

Government of India has introduced Public Procurement Policy forMicro

and Small Enterprises (MSEs) Order, 2012 which was notified underMSMED Act 2006, and effective from 1st April, 2012.Under the Policy, every Central Government Ministries, Departmentsand Public Sector Undertakings shall procure minimum of 20 per cent of theirtotal annual value of goods or services from Micro and Small Enterpriseswhich became mandatory from 1st April 2015.

19

As per the Public Procurement Policy for MSE Order, 2012, MSEshaving registration with District Industries Centre(DIC) or Khadi and VillageIndustries Commission(KVIC) or Khadi Village and Industries Board (KVIB) orCoir Board or National Small Industries Commission (NSIC) or Directorate ofHandicrafts and Handlooms or any other body specified by Ministry of MSMEare provided certain benefits under the said Policy.

For ease of registration of Micro, Small and Medium Enterprises(MSMEs),

Ministry of MSME has started Udyog Aadhar Memorandum whichis an online registration system (free of cost) w.e.f. 18th September, 2015 andall Micro & Small Enterprises (MSEs) who are having Udyog AadhaarMemorandum should also be provided all the benefits available for MSEsunder the Public Procurement Policy for Micro and Small Enterprises(MSEs),Order 2012.

In order to create awareness and also to have direct interaction with buyers

and sellers, Vendor Development Programmes are arranged at the National as well as State level by the Office of DC-MSME through its various field offices. MSME-DI, Chennai has conducted 4 National Level and 20 State Lever VDPs during the year 2016-17. Details are given below.

7.1 Vendor Development Programmes (VDPs):

During the year 2016-17, this Institute has achieved 100% target by conducting 20 State Level Vendor Development Programmes (SLVDPs) benefiting 1121 MSMEs and 4National LevelVendor Development Programmes (NLVDP) benefiting 356 MSMEs. Overall, about 49400 visitors attended in all the four NLVDPs, conducted. A list of District wise SLVDP andNLVDP programmes conducted by this Institute is given below:

NATIONAL LEVEL VENDOR DEVELOPMENT PROGRAMME

(Rs. In lakhs)

Sl. No.

Venue / District Date

Fund Sanctio

ned

Fund Utilized

Revenue Earned

Sellers No. of Visitors

Attended Micro Small Medium Total

1 Chennai 07-08 Oct. 2016 8.00 7.99997 4.80 49 25 1 75 3200

2 Coimbatore 14-16, Dec. 2016 6.00 6.00000 3.00 30 21 6 57 1000

3 Chennai 03-04 Feb. 2017 6.00 7.91393 6.05 28 25 3 56 2711

4 Hosur, Krishnagiri

17-20 Feb. 2017 6.00 4.45048 3.00 126 41 1 168 42500

TOTAL 26.00 26.36438 16.85 233 112 11 356 49411

20

NVDP Rail Export at Chennai – Feb. 2017

NVDP Programme at Hosur, Krishnagiri Dt. – Feb.2017

NVDP –Inaugural Session at Coimbatore – Dec. 2016

STATE LEVEL VENDOR DEVELOPMENT PROGRAMME (Rs. In lakhs)

Sl. No

Venue / District Date Fund

Sanctioned Fund

Utilized No. of MSMEs Participated

1 Chennai 25.10.16 0.30000 0.24875 57

2 Salem 11.11.16 0.30000 0.29839 43

3 Madurai 14.11.16 0.30000 0.30000 46

21

4 Palladam 22.11.16 0.30000 0. 29060 54

5 Dharmapuri 27.12.16 0.30000 0.29997 31

6 Perambalur 22.12.16 0.30000 0.29993 40

7 Aravankadu, Nilgiris

04.01.17 0.30000 0.29942 47

8 Cuddalore 23.01.17 0.30000 0.30000 35

9 Karur 23.01.17 0.30000 0.30000 48

10 Ranipet 25.01.17 0.30000 0.29012 72

11 Erode 08.02.17 0.30000 0.29752 65

12 Tuticorin 08.02.17 0.30000 0.28152 34

13 Ambattur 09.02.17 0.30000 0.26668 33

14 Avadi 24.02.17 0.30000 0.30000 198

15 Puducherry 17.02.17 0.30000 0.29789 31

16 NLC Ltd., Neyveli

17.03.17 0.30000 0.30000 98

17 Port -Chennai 23.03.17 0.30000 0.29926 53

18 AAI, Chennai 27.03.17 0.30000 0.23790 50

19 SAIL, Salem 03.03.17 0.30000 0.30000 58

20 Port Trust, Tuticorin

27.03.17 0.30000 0.26635 28

TOTAL 6.00000 5.19358 1121

SLVDP Inaugural Session at Tuticorin – Feb. 2017

SLVDP Inaugural Session at Karur– Jan. 2017

22

8. ACTION PLAN TARGETS (APT) AND ITS ACHIEVEMENTS

8.1 DESIGN CLINIC SCHEME This Institute has been allotted with 2 Design Awareness Programme (Seminar on Design Clinic Scheme) by O/o DC MSME. The objective of Design Clinic scheme is to enhance industry understanding and application of design and innovation, and to promote design as a value adding activity and integrate it into mainstream business and industrial processes of MSMEs. The goal is to help MSME manufacturing industries move up the value chain by switching the production mode from original equipment manufacturing to original design manufacturing and hence original brand manufacturing. In other words, the purpose of organizing the Seminar is to sensitize MSMEs about the usage of design/innovation in various facets of their industry. The seminar coved the design related topics in a broad way, the importance of design, its usefulness and its role in delivering business value. Details of the programme is given below :

Sl. No.

Venue of the Programme Date Sanctioned

Amount Expenditure No. of MSMES participated

1 Thirumudivakkam, Kancheepuram

28.01.2017 Rs.60,000/- Rs.48,432/- 54

2 Tiruppur 20.10.2016 Rs.60,000/- Rs.34,075/- 60

DSC programme at Thirumudivakkam, KANCHIPURAM – Jan. 2017

8.2 INTELLECTUAL PROPERTY RIGHTS (IPR)

During the year 2016-17, two Awareness/Sensitization programmes and one Interactive Seminar/Workshop on IPR have been conducted for the benefit of 138 persons as per details given below:

Sl.

No. Name of the

Scheme Amount Sanctioned (Rs. Lakh)

Expendi-ture (Rs.)

Target (Nos.)

Achieve-ment (Nos.)

Districts Covered

No. of beneficiaries

1 Awareness Programme

2.00 1,79,476

/- 2 2

Chennai & Tirupur

93

2 Workshop / Seminars on IPR

2.00 1,35,901

/- 1 2 Chennai 45

23

In addition to the above, the following application for setting up of IP

Facilitation Centre under IPR - NMCP Scheme has been forwarded to Head Quarters during 2016-17.

1. The Centre for Intellectual Property Rights (CIPR), Anna University, Chennai - 600025, and

2. M/s ASSOCHAM Tamil Nadu, 61-63, International Law Centre, Dr. Radhakrishnan Salai, Mylapore, Chennai- 600004

IPR Programme at Chennai – Sept. 2016

8.3 PRODUCT CERTIFICATION PROGRAMME UNDER TEQUP

During the year 2016-17, this Institute has reimbursed an amount of Rs.49,61,317 to 54 MSE Units for acquiring Product Certification/License from National/International bodies. Further 3 Awareness programme on Product Certification and 2 Awareness Programme on Energy Efficient Technology benefiting145 MSE entrepreneurs each were conducted in various districts during the period of report as per the details given below:

TEQUP Particulars Achievement Amount of subsidy reimbursed Rs.49,61,317 No. of Units benefitted 54 No. of Awareness programme on Product Certification conducted

3

No. of beneficiaries 145 District-wise detail of Product Certification conducted Coimbatore, Chennai

and Kumbakonam No. of Awareness programme on Energy Efficient Technology conducted

2

No. of beneficiaries 145 District-wise detail of Awareness programme on Energy Efficient Technology conducted

Tiruppur and Coimbatore

24

8.4 BAR CODE - MARKETING ASSISTANCE/SUPPORT TO MSES

During the year 2016-17, this Institute has reimbursed an amount of Rs.7,27,526 to24 MSEs towards subsidy for adopting Bar Code number, as per the details given below :

Sl.No. Name of the District No. of MSE benefitted 1 Chennai 08 2 Tiruppur 02 3 Coimbatore 05 4 Theni 01 5 Tuticorin 02 6 Sivagangai 01 7 Kanchipuram 01 8 Kanyankumari 01 9 Dindigul 02

10 Nagapattinam 01 TOTAL 24

8.5 EXPORT PROMOTION

During the year 2016-17, various training programmes on Export/Import Procedures, Documentation and Marketing have been conducted for the awareness and benefit of prospective as well as existing exports to start their export/import business and also to update their knowledge for the existing exporters. During the period, 11 programmes were conducted which benefitted 398 participants.Based on the recommendation of this office under the MATU Scheme, 10 Micro and Small Units have received permission to participate in various International Trade Fairs to showcase their products to the international community as well as to improve their export business prospects. Under the MATU Scheme, each of these units have become eligible for the subsidy of the maximum amount of upto Rs.2.25/- lakhs per event.

8.6 ISO 9001/14001/HACCP CERTIFICATION REIMBURSEMENT:

During the year 2016-17 this Institute has reimbursed an amount of Rs. 21,14,035 to 58 eligible MSMEs towards acquiring ISO 9001/14001/HACCP certification from National/International bodies, as per the details are given below:

Amount sanctioned

(in Rs.)

No. of beneficiaries/ MSMEs District

Expenditure/ Amount reimbursed

(in Rs.)

24,86,989

23 CHENNAI 7,67,389 26 COIMBATORE 10,20,299 2 KARUR 64,808 1 KRISHNAGIRI 30,614 1 PUDUKKOTAI 42,825 2 THIRUVALLUR 72,825 3 TRICHY 1,15,275

TOTAL 58 21,14,035

25

8.7 ZED AWARENESS PROGRAMME/MATURITY MODEL

This Institute has been allotted with 7 "Awareness programme on ZED certification Scheme" by O/o DC MSME vide Sanction Order No: 17/2016/NMCP/ ZED/ Sanction/MSME-DIs Dated 01/09/2016 and 21.10.2016. The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement and supporting the Make in India initiative. The Scheme is an extensive drive of the Government of India to enhance global competitiveness of MSMEs by providing them financial support in assessment, rating and handholding of its manufacturing processes on Quality and Environment aspects.

All the 7 programmes were successfully organized in various districts of Tamil nadu in association with respective Industry Associations in Chennai, Hosur in Krishnagiri, Coimbatore, Tiruppur, Trichy, Madurai and Tuticorin as per the details given below:

ZED Awareness programme Sl.

No. Amount

sanctioned Amount of

expenditure Date of the programme

Venue and District

No. of MSMEs participated

Total no. of participants

1 70,000 66,447 08.11.2016 Coimbatore 49 53

2 70,000 39,388 08.11.2016 Chennai 34 57

3 70,000 65,000 20.12.2016 Hosur, Krishnagiri 40 40

4 70,000 64,472 27.12.2016 Tiruppur 53 60

5 70,000 62,509 24.01.2017 Trichy 52 89

6 70,000 70,000 06.01.2017 Tuticorin 75 82

7 70,000 35,207 08.02.2017 Madurai 33 60

ZED Awareness Programme at Chennai ZED Awareness Programme at Hosur, Krishnagiri

26

ZED Awareness Programme at Coimbatore ZED Awareness Programme at Tuticorin

8.8 NATIONAL AWARD – 2015

During the year 2016-17 also, this Institute has given wide publicity to motivate MSME entrepreneurs to apply for the National Award for the year 2015 to be given away by the Ministry of MSME for 6 various categories. Out of the 61 applications received, only 14 were found to be above the benchmark level competent to get the Award. All these 14 applications were thoroughly scrutinized and recommended for consideration of the National Level Selection Committee as per the details given below:

Name of the award/

Category No. of Applications

recommended District concerned

Product/ Process Innovation

Micro 0 Small 0 Medium 1 Thiruvallur

TOTAL 1

Outstanding Entrepreneurship (Manufacturing)

Micro 0

Small 5 Salem, Coimbatore Thanjavur, Chennai & Puducherry

Medium 0 TOTAL 5

Outstanding Entrepreneurship (Service)

Micro 0 Small 1 Chennai Medium 0

TOTAL 1

Lean Manufacturing Techniques

Micro 0

Small 4 Salem, Kanchipuram, Coimbatore & Kanchipuram

Medium 0 TOTAL 4

27

Quality Products in Micro & Small Enterprises

Micro

Small 3 Thiruvallur, Puducherry & Salem

Medium TOTAL 3

Export Awards

Micro 0 Small 0 Medium 0

TOTAL 0 GRAND TOTAL 14

8.9 Generation of employment opportunities in MSME

MSME Sector is a labour oriented industry and employment opportunities are created through various schemes of the Govt. in association with the State Govt. Major schemes are :

8.10 Unemployed Youth Employment Generation Programme ( UYEGP)

With a view to create employment opportunities to the marginalized sections of society, the State Government has implemented the Unemployed Youth Employment Generation Programme (UYEGP). This scheme is applicable to Manufacturing / Service / Business enterprises upto the maximum of Rs. 5 lakh / Rs. 3 lakh / Rs. 1 lakh respectively. Subsidy assistance from the State Government upto 25% of the project cost is provided under this scheme.

Eligibility Minimum age limit 18 years completed

Upper age limit 35 years for General category, 45 years for Special Category comprising SC / ST / BC / MBC / Minority / Women / Ex-servicemen / Differently abled /Transgender

Educational qlfn. Pass in VIII Standard UYEGP subsidy was given to 23,301 beneficiaries from 2011-12 to 2015-16 for Rs. 9,388.50 Lakh. During 2015-16, Rs.3,285.13 Lakh have been disbursed to 5616 beneficiaries as subsidy.

8.11 NEW ENTREPRENEUR-CUM-ENTERPRISE DEVELOPMENT SCHEME (NEEDS)

“New Entrepreneur-cum-Enterprise Development Scheme (NEEDS)” is launched on 20th February 2013 with a view to assist educated youth to become first generation entrepreneurs. The Scheme envisages entrepreneurship development training to educated young entrepreneurs, preparation of business plans and helping them to tie up with financial institutions to set up new business ventures, besides linking them with major industrial clients.

To set up manufacturing and service projects, a capital subsidy at the rate of 25% of the project cost (not exceeding Rs.25 Lakhs), is given along with 3% interest subvention on term loan by the Government. The minimum project cost has to be above Rs.5.00 Lakh. Promoter’s contribution should be 10% of the project cost for general category and 5% for special category.

28

The eligibility norms are given as below.

Minimum age limit

21 to 35 years for General Category and 21 to 45 years for Special Category

Educational qualification

Should possess either Degree / Diploma / ITI / Vocational Training from recognized Institutions.

Eligibility The Beneficiary must be a First Generation Entrepreneur

NEEDS subsidy was given to 1,431 beneficiaries from 2012-13 to 2015-16 for Rs.11,995.22 Lakh. The achievement during 2015-16 is Rs.4,280.52 Lakh for 585 beneficiaries

8.12 PRIMEMINISTERS’ EMPLOYMENT GENERATION PROGRAMME (PMEGP)

Prime Minister's Employment Generation Programme (PMEGP) is a Government of India’s Scheme with effect from 2008-09. The maximum cost of the project admissible under manufacturing sector is Rs.25 Lakh and under service sector is Rs.10 Lakh. The beneficiary has to contribute 10% of the project cost under General Category and 5% of the project cost under Special Category (SC / ST / OBC / Minorities / Women, Ex-servicemen, Differently abled persons, North- Eastern Regions, Hill and Border areas, etc). The balance amount of total project cost will be provided by Banks as term loan. Government of India provides subsidy to the beneficiaries as shown below:

Categories of beneficiaries under PMEGP Rate of Subsidy Urban Rural

General Category 15% 25%

Special (including SC/ST/OBC/Minorities/Women, Ex-Servicemen, Differently abled North-Eastern Regions, Hill and Border areas etc)

25% 35%

PMEGP Margin Money subsidy was given to 6,258 beneficiaries from 2011-

12 to 2015-16 for Rs.12,614.69 Lakh. During 2015-16, Rs.2,252.66 Lakh have been disbursed to 1,090 beneficiaries through District Industries Centres as Margin Money Subsidy

8.13. MICRO AND SMALL ENTERPRISESFACILITATION COUNCILS (MSEFC)

One of the objective of the MSMED Act 2006, is to facilitate speedy settlement of the delayed payments to MSEs on goods supplied to major organizations. Accordingly, the Government have constituted four Regional Micro and Small Enterprises Facilitation Councils at Chennai, Tiruchirappalli, Madurai and Coimbatore.

In the financial year 2015-16 (up to 31.03.2016), 9 MSEFC sittings were conducted and an amount of Rs.78.57 Lakh has been realised by 12 Micro and Small Enterprises.

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8.14 MUDRA SCHEME

MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution set up by Government of India for development and refinancing micro units enterprises. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs. MUDRA provides refinance support to Banks / MFIs for lending to micro units having loan requirement upto 10 lakh. MUDRA provides refinance to micro business under the Scheme of Pradhan Mantri MUDRA Yojana.

Under the aegis of Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created products / schemes. The interventions have been named 'Shishu', 'Kishor' and 'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth to look forward to: ¾ Shishu : covering loans upto 50,000/- ¾ Kishor : covering loans above 50,000/- and upto 5 lakh ¾ Tarun : covering loans above 5 lakh and upto 10 lakh

Mudra loan is extended for a variety of purposes which provide income generation and employment creation. The loans are extended mainly for : (i) Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities.

(ii) Working capital loan through MUDRA Cards. (iii) Equipment Finance for Micro Units. (iv) Transport Vehicle loans

The progress of MUDRA Scheme during 2016-17 in the State of Tamil nadu is given in the Table below:

Pradhan Mantri MUDRA Yojana (2016-2017) - Tamil Nadu [Amount Rs. in Crore]

Shishu (Loans up to Rs. 50,000)

Kishor (Loans from Rs. 50,001 to Rs.

5.00 Lakh)

Tarun (Loans from Rs. 5.00 to Rs.

10.00 Lakh) Total

No of Sanctions

Sanctioned Amt

Disbursement Amt

No of Sanctions

Sanctioned Amt

Disbursement Amt

No of Sanctions

Sanctioned Amt

Disbursement Amt

No of Sanctions

Sanction ed Amt

Disburse ment Amt

5000285 10931.84 10897.54 275564 4430.15 4258.53 34008 2690.68 2600.32 5309857 18052.68 17756.39

8.15 STAND-UP INDIA SCHEME

The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur. For drawal of Working capital upto 10 lakh, the same may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of

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the borrower. Working capital limit above 10 lakh to be sanctioned by way of Cash Credit limit.

8.16 CGTMSE

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000. The corpus of CGTMSE is being contributed by the GoI and SIDBI in the ratio of 4:1 respectively and has contributed Rs. 2295.30 crore to the corpus of the Trust up to August 31, 2014. As announced in the Package for MSEs, the corpus has been raised to Rs.2500 crore by the end of 11th Plan. The coverage of the eligible credit limit per borrower under the CGS has recently been raised from Rs.100 lakh to Rs.200 lakh extended by Scheduled Commercial Banks and select Financial Institutions to the units in Micro and Small Enterprises (MSEs).

As on May 31, 2016, cumulatively 24,31,490 proposals from micro and small enterprises have been approved for guarantee cover for aggregate credit of Rs.1,13,500.61 crore, extended by 119 active Money Lending Institutions (MLIs). A year-wise guarantee approved growth position for the last 4 years is indicated in the table below:

Period No. of Active MLIs

No. of Credit Facilities

Approved

Amount of Guarantees Approved

(Rs. Crore)

Cumulative Guarantees

Approved (Rs. Crore)

FY 2013-14 117 348475 18188.12 70026.28

FY 2014-15 119 403422 21274.82 90445.90

FY 2015-16 119 513978 19949.38 108990.85

FY 2016-17 *

119 106634 4037.07 113500.61

*As up to 31 May 2016

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8.17 SURVEY REPORTS Reports on State Industrial Survey as well as District-wise Industrial survey

are regularly updated and uploaded in the official website of DC-MSME. Selected Industrial profile reports are also available in the Library.

8.18 LIBRARY This Institute has an excellent library with approximately 7000 books and

300 periodicals/journals in its control. During the year 2016-17, nearly 1240 visitors have visited the library and an amount of Rs.37,800/- have been collected as revenue towards sale of project reports, booklet on district-wise industrial opportunities etc. Various project reports, Industrial Profiles and business opportunities available in various districts are available in the library.

8.19 VIP VISITS Details of VIP Visits to this Institute during 2016-17 is given below, which

includes Secretary(MSME), AS & DC(MSME), Secretary (MSME, Govt. of TN) and former Secretary(MSME).

Sl.No. Date Name of the dignitary Purpose

1. 18.07.2016

Shri Dinesh Rai, IAS-Retired, Former Secretary to Govt. of India,Ministry of MSME, New Delhi.

Interaction with officers regarding MSME Schemes.

2. 10.01.2017

Shri Mangat Ram Sharma, IAS Principal Secretary, Department of MSME, Government of Tamilnadu.

For an interaction with AIA and officers regarding the Schemes and new areas of working together.

3. 04.03.2017 Shri S.N.Tripathi, IAS AS & DC, MSME , New Delhi.

Meeting to review Action Plan Activities of DI and TC, Chennai.

4. 23.03.2017 Shri K.K.Jalan, IAS Secretary, MSME, New Delhi.

Meeting to review Action Plan Activities of DI and TC, Chennai.

8.20 IMPLEMENTATION OF OFFICIAL LANGUAGE (HINDI)

This Institute has been giving Special attention for Implementation of Official Language Hindi. Four Quarterly Official Language Implementation Committee meetings were conducted under Chairmanship of AIA to review the progress of use of Hindi in the day today office work. The target fixed by OL Department for implementation of Hindi was achieved. Four Hindi Workshops were conducted jointly under the Chairmanship of Additional Industrial Adviser MSME-DI , Chennai for MSME –DI and MSME-TC, Chennai at MSME –DI Conference Room. Member Secretary TOLIC Chennai was invited for Hindi

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Workshop. Hindi Day and Hindi fortnight were also organized jointly for MSME-DI, and MSME-TC Chennai . During Hindi Fortnight, various Hindi Competitions were conducted and Cash Awards were distributed to the winners. All reports were sent to Headquarters OL Department Cochin and TOLIC Chennai for record and information. Two Officers were nominated for Hindi Teaching Scheme Training and they passed the Exams. This Institute has participated in TOLIC Programme and Meetings as far as possible. Photos below shows Shri G Shanmuganathan, AIA, MSME-DI Chennai addressing Officers and Staff Members during the Hindi workshop.

View of Hindi Workshop held at MSME-DI, Chennai

8.21 REGISTRATION & OTHER ISSUES

Considering the Govt. of India proposal to implement uniform system of taxation viz., GST, during the coming financial year and the initiative taken by the Additional Industrial Advisor of MSME-DI, Chennai and Commissioner of Service Tax, Chennai, Govt of India, in association Chennai District Small Scale Industries Association (CDISSIA), this Institute has organized an awareness programme on “GST Migration, Registration & related issues” on 27th Feb.2017 in the Conference Hall. Over 70 participants representing various enterprises engaged in manufacturing, service and trading activities attended the Programme. The main objective of the programme was to enlighten the entrepreneurs in the Procedural and Registration formalities to migrate from the present Tax system namely VAT/Service tax/Central Excise/CST to GST Regime.

Ms. Manasha , Deputy Commissioner of Service Tax briefed the concept of GST and also the benefits to the entrepreneurs under the Goods Services Tax system. Sh. Sankara Narayanan, Service tax department official explained the process of GST Registration and document requirements. Ms. Kavitha, Deputy Commissioner explained the procedures for migrating to GST Registration. This was followed by the interaction session by the participants with the Service Tax Officials to clear all the doubts on GST system.

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Special Session on GST awareness held at MSME-DI, Chennai on 27.2.2017

8.22 AWARENSSS PROGRAMME ON DIGITAL PAYMENT SYSTEM

Consequent upon the decision of the Govt. on demonetize high value currencies on Nov.8th, 2016, and to encourage cash-less transactions, Office of DC-MSME issued a letter on 14.12.2016 instructing all field offices to organize One Day Awareness Programme On Digital Payment Systemfor information and guidance to the MSME entrepreneurs for 2 weeks. Accordingly, from 15.12.2016 to 30.12.2016, MSME-DI has organized 13 such one day programmes in various parts of the Tamil Nadu as per the details given below in association with leading Nationalized Banks and Industry Associations, as digital payment system is one of the means for reliable and time saving financial transactions towards cash less economy.

Sl. No. Date Place Target group

1 15.12.2016 Chennai MSME-DI, Chennai premises, Officers & staff from PAO(MSME) also participated.

2 16-12-2016 Chennai At CFTI premises 3 17-12-2016. Chennai Members of Laghu Udyog Bharati 4 20-12-2016 Hosur HOSTIA Members 5 21-12-2016 Chennai TANSTIA members 6 22-12-2016 Chennai CDISSIA Members 7 23-12-2016 Pondicherry MSME Association, Pondicherry 8 24-12-2016 Tirunelveli MSME Association, Tirunelveli 9 26-12-2016 Kanchipuram Dist. MSME Association Kanchipuram

10 27-12-2016 Coimbatore CODISSIA, Coimbatore

11 28-12-2016 Pallavaram, Chennai

MSME Leather Cluster Entrepreneurs

12 29-12-2016 Ambattur, Chennai AIEMA, Ambattur 13 30-12-2016 Tuticorin THUDISSIA

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9. PUMP/MOTOR TESTING LAB AT Br. MSME-DI, COIMBATORE &

TUTICORIN

During the year 2016-17, an amount of Rs.24,38,2018 have earned as revenue through the workshop at Branch offices of Coimbatore and Tuticorin as per the details given below. (The workshop in MSME-DI, Chennai was totally damaged during the floods in Dec. 2015. Efforts are on to re-build the same).

Sl.No Workshop Details Achievement

1 No. of unit benefitted through service of Workshop 386

2 No. of jobs undertaken 402

3 No. of Trainees Trained in workshop programmes 35

4 No. of jobs Completed 390

5 Total revenue from workshop Rs.24,38,208

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