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Chapter No. 04:

Government Policies and Programmes

for Entrepreneurship and Industrial

Development.

§ Introduction.

§ Entrepreneurial Scenario in India.

§ Role of Government in Entrepreneurship

Development.

§ Ministry of Micro, Small and Medium Enterprises.

§ Entrepreneurship Development Institute of India

(EDI).

§ Centre for Entrepreneurship Development (CED).

§ Small Industrial Development Bank of India (SIDBI).

§ Scheme for Assistance for Strengthening of Training

Infrastructure of Existing and New Entrepreneurship

Development Institutes.

§ National Institute for Micro, Small and Medium

Enterprises (NI-MSME), Hyderabad.

§ Indian Institute of Entrepreneurship (IIE), Guwahati.

§ National Institute for Entrepreneurship and Small

Business Development (NIESBUD).

§ Maharashtra Industrial and Economic Development

Association (MIEDA).

§ MITCON Centre for CSR & Skill Development.

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§ The National Skill Certification and Monetary Reward

Scheme.

§ Micro, Small, and Medium Enterprises Development

Act 2006.

§ Maharashtra Industrial Development Corporation

(MIDC).

§ Achievements by Maharashtra Industrial

Development Corporations.

§ Contribution of MIDC in the Development of

Entrepreneurship in Maharashtra.

§ Maharashtra Centre for Entrepreneurship

Development (MCED).

§ EDP Training Centre in Maharashtra.

§ Government of Maharashtra Agro Industrial Policy

2010.

§ Maharashtra's Information Technology / Information

Technology Enabled Services Policy – 2015.

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Introduction:

Entrepreneurship development is one of the key elements for

the promotion of micro and small enterprises, particularly for the

first generation entrepreneurs. Entrepreneurship and resultant

creation of employment and wealth is a major means for inclusive

development. Hence, entrepreneurship development has been one

of the priorities of the Ministry of Micro, Small and Medium

Enterprises. With this end in view the ministry has been providing

financial assistance for setting up of EDIs and also for upgrading

and modernizing those that have already been founded hitherto.

The scheme is primarily to assist EDIs in developing and

modernizing infrastructure related to items like buildings,

equipment and training aids besides other support services.

The Government, in a way, is supplementing efforts of states

in developing entrepreneurship skills among unemployed persons

by arranging for conduct of suitable training programmes falling

under various trades to cater to requirements of different sets of

target groups in the areas of manufacturing, business and services

sectors. While the onus of responsibility for conducting courses

needed to transform the large section of unemployed persons

inhabiting countryside and urban centers into self-employed

/wage-employed lot, a lending hand coming from the Union of

India administration by way of meeting half the cost of needed

infrastructure for the EDIs to conduct training programmes

required deserves appreciation since it clearly shows intention of

central government to develop entrepreneurial efforts in the

country for tackling underemployment/unemployment and

poverty alleviation issues in right earnest.

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The Government had in 1954 set up the Small Industries

Development Organization (SIDO) besides starting the setting up

of its field organizations, Small Industries Service Institutes SISIs

which had come to be known as Micro, Small and Medium

Enterprises Development Institutes-MSME-DIs - effective from

2nd October, 2006 after the MSME Development Act,1996 came

into force -in the same year whose number had gone up to 58 by

end of the tenth five year plan spread in every state and union

territory for imparting skills needed to unemployed persons to

become self-employed or wage-employed through the conduct of

Awareness campaigns, Entrepreneurship Development

Programmes, Skill Development Programmes, Management

Development Programmes etc., covering different trades in the

manufacturing, business and services sectors.

SIDO had set up 18 autonomous Tool Rooms around the

country to serve interests of small entrepreneurs in the

manufacturing / services sectors. But, these MSME-DIs have been

found to have been obliged to handle only a minor section of the

unemployed persons in the country and hence a need was felt for

encouraging the establishment of entrepreneurship development

institutes at the state/UT level (under the Entrepreneurship

Development Institution Scheme of the Government of India of

1993) so that with active involvement of states/UTs more number

of unemployed persons could be encouraged to take up

entrepreneurial activities.1

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Entrepreneurial Scenario in India:

During post-independence era, entrepreneurship has begun

to grow faster. The Government of India has spelt through

industrial policy statements steps for rapid and balanced

industrialization of the country. The government recognizes the

vital role of the private sector in accelerating industrial

development especially after the economic liberalization in 1991.2

The government pursues the following objectives: ·

• To maintain a proper distribution of economic power

between public and private sectors.

• To disseminate the entrepreneurial acumen concentrated in

a few dominant communities to a large number of

industrially potential people of varied social strata.

• To encourage the spirit of industrialization by spreading

entrepreneurship from the existing centers to other cities,

towns and villages.

To achieve the above objectives the government has decided

to encourage the development of small scale units. It provides

various incentives and concessions to SSI in the form of capital,

technical knowhow, markets and land to establish industrial units

particularly in the backward areas of the country.

Role of Government in Entrepreneurship Development:

India is a country with over 1.2 billion people, 379 million

(31%) of which are between the ages of 18 and 35 (Census of India,

2011) and, many of these young people are in search of jobs,

despite being educated. For example, only one in every four urban

males under 29 years is employed even though they hold at least a

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certificate or diploma. The aim of the government has been to

create employment opportunities for youth while focusing on rapid

economic growth. Entrepreneurship development is one of the

mechanisms adopted by the Government of India towards the

creation of job opportunities. The government's assumption is that

support for innovation will enhance entrepreneurship

development, which will in turn accelerate economic growth.3

The roots of India's current economic systems extend back to

the time of colonial rule and its autocratic and fragmented

structure. The country was made to forcefully serve as a market to

its colonial bosses and their industrial products. Independence in

1947 brought many changes, but the country did not have to start

from scratch. The foundations of the today's legal, financial,

educational, bureaucratic governance systems were inherited from

the colonial period. Even the roots of publicly funded research

structures, which have grown large today, date back to the colonial

days. However, one key area of change following independence

involved the adoption of a closed economy that relied heavily on

central planning, restricted imports, and nationalization of

industries. Not until 1991 did India open its economy, which led to

real competitiveness and a need for innovation in all industries.

India today is a vast democratic country with a population of

over 1.2 billion people with diverse ethnicities, religions, and

languages. Nearly 70 per cent of Indians live in rural areas, and

over past 20 to 30 years there has been a continuous flow of people

from villages towards cities, mainly in search of work.4 The Indian

economy is mostly based on agriculture, which depends on the

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unpredictable South-West monsoon. Given the large population, it

is a considerable task for the government ensures adequate and

affordable supplies of food, drinking water, clothing, housing,

education, and healthcare.

The people of India, especially the young, crave employment.

There is a limitation to employment opportunities offered by the

various sectors of economy, but the government does provide

employment guarantee programs. However, these programs are

targeted at providing basic needs and tend to provide labour-

intensive jobs that have no link with innovation. There is a

realization that, to sustain rapid growth and alleviate poverty,

India needs to aggressively harness its innovative potential, relying

on innovation-led, rapid, and inclusive growth to achieve economic

and social transformation. The innovative potential of the young

Indian population, if supported through an effective innovation

ecosystem, holds potential for developing entrepreneurship and

providing the growth and job opportunities that India needs.

To develop and nurture the entrepreneurial sector, the

support of the government is crucial. Policies need to be adopted

that can give a fillip to this sector. The Indian government has

taken several steps to ensure the growth of this sector and

instituted several bodies to promote entrepreneurial development

in the country. SIDBI was set up in 1990 as the main financial

institution for financing the small scale sector, providing

development and support services for promoting small industries,

and engaging with other institutions engaged in similar activities.

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The National Science and Technology Entrepreneurship

Board promote entrepreneurship development through Science

and Technology. This initiative has encouraged researchers and

academicians in the field of Science and Technology to take

interest in socially relevant entrepreneurial roles. Under the

flagship of NSTEB, various institutes and training programmes

have been formulated such as Science and Technology

Entrepreneurs Park, Innovation and Entrepreneurship

Development Cell, Entrepreneurship Development Program and

many more. To boost the services and manufacturing sectors, the

Govt. of India chalked out a separate SMSE department so that

these industries could receive sufficient attention and support.

The MSMED Act was passed in 2006, which aims at providing

guidelines for skill development of employees, management and

entrepreneurs in addition to resolving many other issues.5

Ministry of Micro, Small and Medium Enterprises:

The Scheme envisages financial assistance for establishment

of new institutions (EDIs), strengthening the infrastructure of the

existing EDIs and for supporting entrepreneurship and skill

development activities. The main objectives of the scheme are

development of indigenous entrepreneurship from all walks of life

for developing new micro and small enterprises, enlarging the

entrepreneurial base and encouraging self-employment in rural as

well as urban areas, by providing training to first generation

entrepreneurs and assisting them in setting up of enterprises. The

assistance shall be provided to these training institutions in the

form of capital grant for creation/strengthening of infrastructure

and programme support for conducting entrepreneurship

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development and skill development programmes. Assistance is

provided under the Scheme to following Training Institutions, for

conducting Entrepreneurship Development Programmes (EDPs)

and Entrepreneurship cum Skill Development Programmes

(ESDPs) and Training of Trainers (ToTs) programmes in the areas

of Entrepreneurship and/or Skill Development.6

(a) National level EDIs,

(b) Training Institutions established by Partner Institutions

(PIs) of national level EDIs,

(c) Training/Incubation Centres of NSIC,

(d) Training cum Incubation Centres (TICs) set up by

Franchisees of NSIC and

(e) Other Training institutions with proven professional

competency, capacity and experience, approved under the

scheme.

Entrepreneurship Development Institute of India (EDI):

EDI is the premier institute of small to medium sized

enterprise management in India. It is an autonomous not for-profit

body founded in 1983 with corporate partners including the State

Bank of India and IBDI Bank Ltd, as well as significant

involvement with the Indian Industry Development Commission

and the United Nations Industry Development Organization. The

EDI has two main functions:7

1) Educating graduate-level students regarding advanced

entrepreneurial procedures and strategies as well as the social

impact of entrepreneurship.

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2) Consulting on behalf of India’s central government to

foster and develop specific industries with large employment

potential for India’s developing economy.

In 2007, the central government of India nominated EDI to

work as an implementing agent in executing a series of strategic

goals for the industry. As such, EDI has been assigned the job of

formalizing clusters, creating shareholding entities, and

maintaining employment within the handloom economy.

EDI's success led by its strong sense of commitment

culminated in recognition of its achievements by the Government

of India and various state governments. In the international arena,

efforts to develop entrepreneurship by way of sharing resources

and organising training programmes, have helped the EDI earn

accolades and support from the World Bank, Commonwealth

Secretariat, UNIDO, ILO, FNSt, British Council, Ford Foundation,

European Union and several other renowned agencies. The

Institute has also successfully carried out the prestigious task

assigned by the Ministry of External Affairs, Govt. of India, to set

up Entrepreneurship Development Centres in Cambodia, Lao PDR,

Myanmar and Vietnam. The Institute is presently working towards

creating ED Centres in Uzbekistan & Kazhakistan.8

Centre for Entrepreneurship Development (CED):

Recognizing that a quantitative increase in the number of

entrepreneurs and a qualitative improvement in entrepreneurship

could considerably accelerate the industrial and there by economic

development, the Industrial Development Corporations first

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thought of developing small entrepreneurs in a systemic manner

long back in 1969. In the year 1970 a small cell was created within

GIIC to impart the entrepreneurship training. The pioneering step-

it was the first attempt of its kind in the whole of country and this

experiment turned out to be a phenomenal success. Later on, over

a period of nine years, 80 Entrepreneurship Development

Programmes (EDPs) were conducted and over 50 per cent after

completing the training successfully set up their own industrial

ventures.9

In order to strike a deep and long lasting impact on the State

economy, CED has constantly been on an innovating spree,

consistently coming out with imaginative programs aimed at

specified target groups. The Myth ‘Entrepreneurs are born, not

made’ was believed by too many, for too long, This perpetrated a

perennial shortage of entrepreneurs and entrepreneurship, inputs

perhaps more vital to economic development than even the

physical infrastructures. Recognizing the myth for what it was and

upon realizing that a quantitative increase in the number of

entrepreneurs and a qualitative improvement in entrepreneurship

could considerably accelerate industrial development and growth.

Small Industrial Development Bank of India (SIDBI):

The aim of SIDBI’s EDP is to build and nurture a reservoir of

entrepreneurs. Such EDP is conducted through the specialized

agencies in Entrepreneurship Development Institute of India,

Institute of Entrepreneurship Development (IEDs), Centre for

Entrepreneurship Development (CEDs), Technical Consultancy

Organization (TCOs) and Non-Government Organizations (NGOs).

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Management deficiency and a low level of skills and technology

have been some of the major weaknesses of small industries. SIDBI

is constantly endeavoring to address these problems by bringing

reputed management and technical institutions close to the small

scale industries and arranging specially designed programmes viz.

Small Industries Management Assistants Programme (SIMAP) and

skill cum Technology Up-gradation Programme (STUP).10 The

objective of SIMAP is to develop a cadre of industrial managers

specifically trained to assist the SSI entrepreneurs in their multiple

responsibilities. STUP is structured to improve the performance of

the existing SSI units by developing/ strengthening managerial

skills and technical competence of the entrepreneurs and senior

executives of the small enterprises.

Scheme for Assistance for Strengthening of Training

Infrastructure of Existing and New Entrepreneurship

Development Institutes:

The scheme envisages providing financial assistance to State-

level existing / proposed institutions meant for supporting

entrepreneurship development and self-employment activities.

Under this scheme, grant is given for setting up of new

entrepreneurship development institutions (EDIs) and also for up-

gradation and modernization of existing EDIs in the country.

Under the scheme, a matching grant of 50 per cent, subject to a

ceiling of Rs.100 lakh, is provided for building, equipment, training

aids etc., the balance being contributed by the State/Union

Territory Governments and other agencies.11

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The financial assistance provided under this scheme is only

catalytic and supportive to the contribution and efforts of State /

Union Territory Governments and other agencies. Under no

circumstances grant funds provided under the scheme can be used

to meet the recurring expenditure of the institute. The institutions

seeking assistance under this scheme should be registered as not-

for-profit organization with entrepreneurship development as its

main objective, should possess a clear title of the land required for

setting up of the proposed/ existing institution, have a separate

bank account in a scheduled bank in which all receipts/funds

received by the institute should be credited and payments made on

the basis of authorization by the Governing Council of the institute.

All the proposals under this scheme are required to be

recommended by and routed through the concerned State

Government.

National Institute for Micro, Small and Medium

Enterprises (NI-MSME), Hyderabad:

NI-MSME, formerly known as National Institute of Small

Industry Extension Training (NISIET), was set up in 1960 at New

Delhi as a Department of Central Government under the Ministry

of Commerce and Industry and was initially known as Central

Industrial Extension Training Institute (CIETI). Subsequently, in

1962, it was shifted to Hyderabad and converted into an

autonomous society. In 1984, the Institute was renamed as

National Institute of Small Industry Extension Training (NISIET).

After enactment of the MSMED Act, 2006, the Institute has been

renamed as National Institute for Micro, Small and Medium

Enterprises (NI-MSME), w.e.f. 11th April 2007.12

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The Institute has benefited not only the Indian micro, small

and medium enterprises (MSMEs) but also those in other

developing countries through a plethora of activities and thus

helped in promoting self-employment and enterprise development.

The Institute is constantly evolving in accordance with the

changing times, modifying its focus with the emerging needs of

MSMEs and providing solutions in the form of consultancy,

training, research, and education. NI-MSME’s programmes are

designed to have universal relevance for successfully training the

entrepreneurs to face challenges and emerging competition in the

era of globalization. The academic activities of the Institute are

organized through centres of excellence focusing on specific needs

of the MSMEs. The Academic Council of the Institute is the central

coordinating body for benchmarking, formulation and evaluation

of academic activities and programmes.

Over the years, the Institute has gained immense experience

and expertise in the areas of entrepreneurship development,

technology, management and information services. NI-MSME’s

inherent capacity to innovate, together with its modern

infrastructure, has enabled the Institute to excel in its endeavour of

MSME promotion. NI-MSME has always been conceiving

specialized need-based programmes, workshops and seminars in

tune with the changing policy and economic scenario. The primary

aim of these activities has been to enable the enterprises and the

supporting systems to deal effectively with aspects that directly or

indirectly affect the success of enterprises. NI-MSME has

developed profitable interface with several international agencies

like CFTC (Commonwealth Fund for Technical Co-operation),

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UNESCO (United Nations Educational, Scientific and Cultural

Organization), UNDP (United Nations Development Programme),

Ford Foundation, GTZ of Germany, USAID (United States Agency

for International Development), and ILO (International Labour

Organization), to name a few.13

Indian Institute of Entrepreneurship (IIE), Guwahati:

The Indian Institute of Entrepreneurship (IIE) was set up at

Guwahati in 1993. It took over NI-MSME’s NER Centre w.e.f. 1st

April, 1994. The Institute is completing 22nd year of its operation

on 31st March 2015. During this period, the Institute has expanded

its activities to a great extent covering all facets of MSME activities.

Since its establishment, the Institute has organized 1167 training

programmes / workshops / seminars / meets with a cumulative

participation of 38,524 persons. The Institute has expanded its

canvas of activities not only in terms of geographical coverage but

also in terms of diversification into various related areas of the

activities pertaining to socio-economic development. The Institute

regularly organizes training programmes and undertakes research

and consultancy services in the field of promotion of MSMEs and

entrepreneurship.

The promotion of new entrepreneurs has been the major

focus of training activities organized by the Institute. In order to

promote new entrepreneurs, the Institute organizes rural, general

and women EDPs and sector specific EDPs. The Institute has

organized 29 such programmes covering 838 participants during

the first 3 quarters of the current year. Besides, while continuing

with its Rural Industries Programme (RIP) in Meghalaya, Manipur

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and Assam, the Institute also started its RIP at Nongpoh in

Meghalaya with the help of SIDBI. The Institute also organized two

programmes on handloom sector under SFURTI, where 32

participants were benefitted.14

Creating awareness amongst college and university teachers

and students about entrepreneurship has been one of the focus

areas of the Institute. The Institute organized one faculty

development programme in entrepreneurship for school, college

and university teachers in which 18 teachers participated. During

the year, the Institute organized 10 awareness camps for the

students of colleges and 2 such programmes for polytechnic

students. The Institute has also been instrumental in setting up

Information and Career Guidance Cell (ICGC) in a number of

colleges through its Teachers’ Training Programmes. Till the year

2015, 80 colleges have opened such ICGCs in different parts of the

Region.

National Institute for Entrepreneurship and Small

Business Development (NIESBUD):

The National Institute for Entrepreneurship and Small

Business Development (NIESBUD), NOIDA was set up in 1983 as

an apex institution in the field of entrepreneurship development to

promote, support and sustains entrepreneurship and small

business through training, education, research and consultancy

services. The major activities of the Institute include evolving

model syllabi for training various target groups; providing effective

training strategies, methodology, manuals and tools; facilitating

and supporting Central / State Governments and other agencies in

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executing programs of entrepreneurship and small business

development; maximizing benefits and accelerating the process of

entrepreneurship development; and conducting programs for

motivators, trainers and entrepreneurs. The Institute helps other

Entrepreneurship Development Institutions in various ways, such

as developing syllabi in entrepreneurship for different target

groups, training of faculty, developing training aids etc.

The performance of the Institute during 2006-07 and actual

performance for the first three quarters of 2007-08 along with

projections for the last quarter are given in Table 7.5. 7.5.4 In order

to strengthen efforts for realizing the cherished goal of inclusive

growth with focus on bottom of pyramid, the Institute has made an

attempt to organize exclusive training programmes for the officials

engaged in implementation of the policies for tribal, backward

classes and other down-trodden sections of the society. These

programmes included - training programmes on Project

Management for Small Business Enterprises in Tribal Areas for

officials of Department of Tribal Development, Govt. of Madhya

Pradesh; programme on Performance Motivation for the officers of

the Department of Sericulture; Government of Madhya Pradesh

and Management Development Programmme (MDP) for the

officials of West Bengal Backward Classes Development & Finance

Corporation (WBCDFC).15

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Maharashtra Industrial and Economic Development

Association (MIEDA):

Maharashtra Industrial and Economic Development

Association (MIEDA) is a leading organisation, represents large

number of members from manufacturing and service sector

Industries, Infrastructure, finance, realty, power, IT, SMEs, co-

operative and other businesses. It also represents various

organisations, Associations and Chambers of the State to take up

the problems and issues with the State and Central Government.

MIEDA is founded with the objective to put efforts for achieving

inclusive and sustainable growth of the State.16 MIEDA assist and

support for the growth of business, exports, finance, and

technology up gradation and identify opportunities for investment,

international business, technology transfer, joint ventures,

contract manufacturing tie-ups, collaborations and other emerging

business opportunities. MIEDA is working for the development of

industry, improvement of infrastructure, business and export

promotion, industrialisation in rural areas, Technology Transfer

and Joint Ventures, SME and Entrepreneurship Development,

Environmental Conservation, Tourism Promotion and other

Sectors in Maharashtra. MIEDA also carries out research & studies

on various potential areas to improve the growth and industrial

development and remove the bottlenecks to encourage more

investment in various sectors.

MIEDA acts as a Think Tank and provides necessary inputs

to the State and Central Government, Corporate, Banks, Financial

Institutions and Government Agencies to improve the facilities

towards industrial and economic growth of the State and Nation.

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MIEDA focuses and reviews the growth plan and the needs for

developmental activities in various sectors. Though Maharashtra is

developing industries and achieving remarkable economic growth,

there are many areas that require careful attention viz. projects

delays, reviving of sick units, effective water management,

improved power supply, skill development amongst young

generation, entrepreneurial education, district level

industrialisation and reducing the political and bureaucratic

bottlenecks in industry and trade to enhance economic growth.

MIEDA regularly organises State, National and International

Level Conferences, Exhibitions, Seminars, Workshops and

Interactive Meetings with Ministers, Senior Government Officials,

Bankers, Industrialists and other eminent personalities to share

their viewpoint. MIEDA is actively involved with various State,

National and International level organisations and Chambers of

Commerce as well as Government Departments, Investment

Boards, SME organisations, Young Entrepreneurs Forums, Export

Promotion Councils and Importers. MIEDA arranges trade

promotion delegations to various countries to promote bi-lateral

trade, business opportunities and cooperation, B2B Meets, visits to

SEZs, Infrastructure and Power Projects, Food Processing Industry

and specific industrial zones as per requirement.

MITCON Centre for CSR & Skill Development:

MITCON Centre for CSR & Skill Development is a part of

MITCON Consultancy & Engineering Services Ltd., a trusted name

acting as a catalyst to industrial & entrepreneurship development

for more than 30 years. MITCON Centre for CSR & Skill

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Development has well recognized the importance of skilled youth

in rapidly changing environment in the industry. The youth should

not only be technically skilled in any particular domain but also

need to be capable enough to cope up with rapidly changing

economy & its global perspectives. Taking this agenda ahead,

MITCON Centre for CSR & Skill Development offers various kinds

of value added training programmes which are industry endorsed

and job oriented. MITCON Centre for CSR & Skill Development is

engaged in variety of innovative interventions to address the

capacity building, training & other requirements of students,

entrepreneurs and executives. As Globalization has propelled

India’s economic growth, infusion of capital, technology and know-

how in every major sector like , Capital Goods, Telecom,

Hospitality & Hotel Industry, Health Care , Travel & Tourism,

Banking & Finance, Automobiles, Media And Entertainment, have

created vibrant market place. MITCON Centre for CSR & Skill

Development offers varied range of programs in above mentioned

sectors, which makes an individual employable. Besides this, these

varied training programmes support the industries, by providing

resourceful and skilled manpower. MITCON Centre for CSR & Skill

Development always strive hard to offer the best knowledge and

recourses to the participant for the course they have opted with us,

along with state-of-art infrastructure and learning ambience

ensuring optimum results.17

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The National Skill Certification and Monetary Reward

Scheme:

The Finance Minister in his Budget Speech of 2013 proposed

a scheme to encourage skill development for youth by providing

monetary rewards for successful completion of approved training

programs. The objective of this Scheme is to encourage skill

development for youth by providing monetary rewards for

successful completion of approved training programs. Specifically,

the Scheme aims to:18

• Encourage standardization in the certification process and

initiate a process of creating a registry of skills; and

• Increase productivity of the existing workforce and align the

training and certification to the needs of the country.

• Provide Monetary Awards for Skill Certification to boost

employability and productivity of youth by incentivizing

them for skill trainings

• Reward candidates undergoing skill training by authorized

institutions at an average monetary reward of ₹ 10,000.

• Benefit 10 lakh youth at an approximate total cost of ₹ 1,000

Crores.

This Scheme shall be implemented through Public-Private

and Public-Public partnerships. NSDC will be the implementing

agency for this Scheme and NSDF shall monitor the

implementation of the Scheme, using mutually agreed criteria with

NSDC. The Scheme will provide monetary incentives for successful

completion of, market-driven skill training to approximately ten

lakh youth in a span of one year from the date of implementation

of the scheme. All trainings will be specifically oriented for

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developing skills in specific growth sectors. Assessment and

training bodies for all purposes of the Scheme will be separate and

no overlap of roles will be allowed to maintain transparency and

objectivity. The monetary reward will be wholly funded by the

Ministry of Finance, Government of India, and will be affected

through direct bank transfer to the beneficiaries’ accounts.

Appropriate consideration will be provided to the economically

backward sections.

Micro, Small, and Medium Enterprises Development Act

2006:

MSME is fast growing sector in the Indian Economy. Every

Bank has given highest importance to financing MSMEs in their

strategically growth plan. It has become necessary to bring policy

shift and create free market environment from regulations and

interventions in economic activity. Growth resulting from

globalization and liberalization is visible most profoundly in the

MSME segment. The relationship between the banker and the

customer has become most crucial and competitive. The

technology has entered the scene almost as a natural corollary of

liberalization. Liberalized policies provide ample opportunities to

Indian Market to compete with developed and developing

countries. The clearance of the Micro, Small & Medium Enterprises

Development (MSMED) Act, 2006 is a turning point for the

development of Indian industry, as it addresses and streamlines

entire frame work along with key governance & operational issues

being faced by the SMEs.19

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The Government of India has enacted the Micro, Small and

Medium Enterprises Development (MSMED) Act, 2006 on June

16, 2006. With the enactment of MSMED Act 2006, the paradigm

shift that has taken place is the inclusion of the services sector in

the definition of Micro, Small & Medium enterprises, apart from

extending the scope to medium enterprises. The MSMED Act,

2006 has modified the definition of micro, small and medium

enterprises engaged in manufacturing or production and providing

or rendering of services. SME would henceforth be meant to

include Micro Small and Medium Enterprises (MSMEs). As per the

MSMED Act 2006, the activities of these enterprises are classified

into Manufacturing and Service Categories. The definitions of

Micro, Small and Medium Enterprises would thus be in place of

the existing definitions of Small & Medium Industries and

SSSBEs/Tiny Enterprises. The MSME loan policy is designed with

the following objectives:20

1. To improve flow of credit to MSME Sector so as to double the

credit to the Sector by the year 2015.

2. To formulate liberal norms of lending to MSME sector, to

ensure availability of adequate and timely credit to the

sector.

3. To provide guidelines to the branches to dispense credit to

MSME Sector on liberalized terms.

4. To devise an organizational structure at all levels for

handling MSME credit portfolio in a more focused manner.

5. To comply with guidelines received from Reserve Bank of

India from time to time for Implementation.

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Maharashtra Industrial Development Corporation

(MIDC):

Maharashtra is a leader in twenty out of twenty six sectors in

the country and possess a colossal potential for development in

varied sectors due to the wide spread of vital resources across

different regions in the state. As a result the state houses several

investment regions. In addition to this Maharashtra is perhaps one

of the most premier states in the country to launch a SWC service

that permits both - online submission and approval system

through a dynamic interactive portal. These services include

sector-wise and industry, categories has been done distinctly under

different central and state departments for the benefit of its

existing customers and plot holders along with prospective

investors.

In order to achieve planned and systematic growth

throughout the state, MIDC is developing industrial areas with

essential infrastructure like internal roads, water, electricity and

other internal services to entrepreneurs. To achieve decentralized

as well as faster industrial development, the State Government is

implementing the following important programmes through

MIDC:

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Table No. 4.01:

MIDC Industrial Areas in the State of Maharashtra. Sr.

No. Region MIDC Industrial Areas Industrial Units No. of

Major Mini Growth Total No's Invest Employ Plot

Centre ments ment Allotted

(Rs.

Crore)

1 Mumbai 1 0 0 1 305 346 28670 332

2 Konkan 22 3 3 28 9570 6000 166201 14552

3 Nashik 10 9 11 30 5374 3363 98411 7682

4 Pune 28 18 17 63 7901 10779 151552 12972

5 Aurangabad 14 19 12 45 3895 1200 49272 8253

6 Amravati 7 32 8 47 1269 394 16564 3046

7 Nagpur 11 25 10 46 2019 6965 73881 4321

Total: 93 106 61 260 30333 29047 584551 51158

Source: Economic Survey of Maharashtra

The Maharashtra Industrial Development Corporation

popularly known as MIDC-is one of the most widely known

organizations across Maharashtra not only among those involved

with industry but among the public at large. After the formation of

Maharashtra State on the 1st day of May, 1960 under Government

of Maharashtra Constituted a Board of Industrial Development

(BID) in 1960 under the chairmanship of Shri S. G. Barve. The

Board of Industrial Development framed the legislation and it was

passed in the form of ‘Maharashtra Industrial Act’ which gave

birth to MIDC as a separate corporation on the 1st day of August,

1962 under the chairmanship of the former Chief Minister Shri

Yashwantrao B. Chavan.

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Shri Y. B. Chavan, presented the house of Industrial

Development Corporation Bill for discussion on 27th November,

1962. The Industrial Development Corporation was vested with

tremendous powers so as to accomplish industrial development.

The corporation would be empowered to raise loans to meet its

requirements and would be responsible for the industrial

development of the state. Prosperity to all through

industrialization is the corporate philosophy of MIDC units. This

key historical policy decision taken by MIDC certainly changed the

socio-economic scenario of the Maharashtra State as its activities

spread in the interior parts of Maharashtra. Along with the

production of various goods and services, MIDC provides basic and

essential infrastructures like water supply, roads, street

constructions, tree plantation, electricity supply etc. It was the

most intelligent step taken by MIDC unit’s right in the beginning.

Till now 229 industrial estates have been developed all over

Maharashtra on approximately 53,120 hectors of land with an

elaborate network of industrial and domestic water supply. MIDC

has planned the culture of industrialization firstly in India and

then in other states followed by the same. MIDC does not fly from

social responsibility but keeps pace with it. The planned and

systematic industrial development in the state of Maharashtra has

continuously placed Maharashtra at number one position in India

for highest productivity, economic performance and business

efficiency of overall competitiveness.

MIDC units play a vital role in the national economy by

setting up the industrial area all over the state of Maharashtra. It

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can be stated that MIDC has played a pivotal role not only in

Industrial development but also importantly in the socio-economic

development of the state and its people. Maharashtra Industrial

Development Corporation (MIDC) areas are spread all over the

state of Maharashtra. The MIDC started in 1st August, 1962. Thane

as its first industrial area and as the premier industrial

infrastructure development agency of Government of Maharashtra;

conceiving basic objectives of MIDC units are explained as under:

1. To set up Industrial Areas for planned and systematic

industrial development.

2. To function as a special planning authority in development of

industrial areas.

3. Prosperity to all though Industrialization is the corporate

Philosophy of MIDC.

In view of globalization, the local industries, specifically

MSMEs, need support from the Governments, both at Centre and

State. The State Government is taking steps towards ease of

administration and enforcement, to minimize compliance burdens,

to address competitive concerns, financial and technical support,

etc. through the state level agencies like MSFC, MIDC, MSSIDC,

etc. and central level financing agencies such as SIDBI, IFCI ect.

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Achievements by Maharashtra Industrial Development

Corporations:

There are some prominent achievement’s has made by

Maharashtra Industrial Development Corporations in India. MIDC

has built 233 industrial complexes with 58,889.65 hectares of land.

It has developed specialized parks for different industrial sectors,

including IT, BT, Special Economic Zones, Wine (Grape

Processing) parks, Silver Zone Gems and Jewellery, Textiles,

Leather, Chemical Industry, Electronics, Food Processing and so

on. There are tremendous development and changes made by

Maharashtra Industrial Development Corporation in the State of

Maharashtra. They have been as follows:21

1. Industrial Development: There is prominent industrial

development has taken place due to establishment of

Maharashtra Industrial Development Corporation in State of

Maharashtra. It always helped in providing the basic

requirements for the development of business industries,

hence as compared to other states; Maharashtra state is able

to make sufficient development in industrial sector.

2. Employment Opportunity: Due to formation of

Maharashtra Industrial Development Corporation in

Maharashtra State, there are a number of industrial sectors

that came in to existence. As a result, the qualified

unemployed as well as less qualified people were able to get

employment opportunities in various industries. It helps to

improve their standard of living, in this way MIDC units

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helped in providing employment opportunities to large

number of people in India.

3. Economic Development: Maharashtra Industrial

Development Corporation helps in economic development of

our country by providing employment opportunities and at

the same time helps in increase the market size in terms of

production and income, it makes possible for Government of

Maharashtra to increase the national income by imposing tax

on production of various kinds of goods and services. In this

way MIDC units also help to make economic development of

the nation.

4. Standard of living: Before existence of Maharashtra

Industrial Development Corporation, the life style of people

in Maharashtra district was very simple and financially weak.

After formation of MIDC units in state of Maharashtra, it

helped to increase standard of living of the people by

providing various job facilities and supply of various quality

of goods towards ultimate consumer, it also help to create

awareness among them relate to their health etc. In this way

MIDC units in Thane district enable people to improve their

day to day life.

5. Education development: MIDC Units provides

maximum number of employment opportunities, it induce to

get highly qualified employees in order to handle new

advance machineries, adapt new techniques in production

etc. hence indirectly there are number of ITI colleges,

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Engineering Colleges, Bio-technology colleges etc came into

existence to fulfill the requirement of various industries

existing into the market. Ultimately there is development

taken place in education field and its credit goes to MIDC

only.

6. Social development: There are maximum numbers of

changes that have taken place in the society due to existence

of MIDC units in Maharashtra state. Every person in the

society gets goods services and employment. It helps them to

become self-sufficient. MIDC units also help to upgrade the

standard of living of people by providing good facilities, good

education, quality goods etc. In this way there is overall

social development taken place due to MIDC units existing in

state of Maharashtra.

Contribution of MIDC in the Development of

Entrepreneurship in Maharashtra:

• Acquisition & Disposal of Land: The land for industrial

areas is acquired by the Government of Maharashtra and

handed over to the Corporation for further disposal. Likewise,

wherever available, the Government land is also handed over

to the Corporation as an industrial area. The Government pays

for the compensation for the private land from its own fund.

The Corporation in turn plans the area and disposes the land

in suitable plots by leasing out for 95 years. For this purpose

the Corporation recovers the premium lease money at

different rates for different industrial areas. Also the

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Corporation constructs built-up accommodations like Sheds

and Flatted units and sale them out to the prospective

industrialists together with the land there under on lease

basis.

• Provision of Infrastructure Facilities: In terms of the

provision of the MID Act, 1961 and the relationship prescribed

by the government in that regard, the corporation is required

to provide infrastructure facilities like roads, streetlight,

drainage, water supply schemes and buildings for common

facilities like post and telegraphs, canteen, bank, and

telephone etc. The corporation meets the expenditure on such

facilities generally from the premium lease money received by

it from the allottees. The relationship further prescribes that

the industrial area, after it is fully developed, should be

returned back to the Government / handed over to such

agency or authority as the State Government may directs, after

striking out the account of the industrial area concerned. The

surplus/deficit generated out of such operations is to be made

good to or recovered from the state government as the case

may be. As the development of an industrial area is a long

process and instant objective, the government has prescribed

certain scale of interim annual payments which are termed as

on account advance payment to government. In this

connection it may state that the powers to fix the rates of

premium for land for different industrial areas rest with the

corporation. Since it is the aim of the government and the

corporation to achieve a balanced development of the entire

State with special emphasis on the development of backward

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regions of the state, the Corporation follows a policy of cross

subsidization rate structure on A B C D zones pattern, in that

the rates of land premium in developed and semi developed

parts of the State are higher compared to the rates in

developing and backward regions.

• Providing of Services: The Corporation provides the

following services to the units in its industrial areas:22

o Assured Water Supply: From among the various services

provided by the Corporation, an assured pure water supply

can be regarded as a unique specialty of the MIDC. The

investment on the water supply scheme made by MIDC as

on 31st March, 2002 is over Rs.5 crores with installed

capacity of water supply of 25 MLD. For the purpose of

regulating the water supply operations of the Corporation

the Government of Maharashtra has prescribed a legal and

financial relationship between the Government and the

Corporation.23

o Maintenance of Industrial Areas This is a municipal

function requiring the Corporation to maintain the Roads,

Street lights, Fire stations during the transitory period up to

handing over of the industrial area either to Government or

other agency as the Government may decide. The MIDC

Act, vide Section 56, provides for the exits policy after the

purpose of industrial development as contemplated in the

Act is fulfilled. However, this has seldom become possible

in the absence of a substitute agency to take over the

responsibility where the Corporation could hand over only

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the roads and street lights to local Municipal Corporations.

In other areas, the Corporation carries on this function as a

committed obligation. For this purpose the Corporation

recovers service charges to defray the expenditure on such

services.

o Other Services: These include providing and maintaining

Common Facility Centers like P&T, Banks etc. Though the

Corporation does not levy any specific cess for the purpose,

the C. F. C. building is subject to rentals. Such rental

together with other miscellaneous income from the area

covers the maintenance cost of such CFCs. The policy

decisions taken by TTC MIDC certainly changed the social

economic scenario of the city as its activities spread in the

interior. The important policy decision of setting up

independent filtered /potable water supply system of

adequate capacity as essential infrastructure for industrial

development was the most intelligent step taken by TTC

MIDC right in the beginning. It stabilized the population

base near the industrial areas. The strategically wise

decision taken simultaneously to provide water supply to

nearby domestic population from the capabilities created by

TTC MIDC of their own water supply system resulted in a

phenomenal urban growth in the nearby small towns and

villages.

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Maharashtra Centre for Entrepreneurship Development

(MCED):

Maharashtra Centre for Entrepreneurship Development

(MCED) is a Nodal Agency promoted by Government of

Maharashtra as a joint venture of its State Level Industrial

Development Corporations to conduct training activities related to

Entrepreneurship Development. MCED conducts a variety of

training programs aimed at promoting entrepreneurship across the

state, catering to the training related needs of society. To mention a

few, Entrepreneurship Development Programme, Skill

Development Programme, Performance Improvement Programme,

Faculty Development Programme etc. constitute its core activities,

which are popular and have been very useful to the entrepreneurs.

Apart from this, MCED is instrumental in imparting training to

beneficiaries identified under various Self-Employment Schemes

of States as well as Central Government. To promote

entrepreneurship on mass level, MCED conducts Awareness

Programmes for students in educational institutions. MCED has its

own pool of 45 Trainers, accredited by National Level Institutions

to impart training for Entrepreneurship Development. Moreover, a

dedicated team of around 150 coordinators supported by more

than 5000 resource persons covering cross section of entire

disciplines drawn from state as well as national level is associated

with MCED to help and facilitate the cause of Entrepreneurship

Development. To help facilitate the support work, MCED has a

Project Officer in each district with office. Additionally the

Technical Support Team is a cohesive group of professionals

supporting, strengthening and nurturing the network.

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EDP Training Centre in Maharashtra:24

1. Asian Academy of Education & Research, Pune.

2. Kasturba Mahila Khadi Gramodyog Vidyalaya Agakhan

Palace, Pune, Kora Institutes of Village Industries, Shimpoli

Road, Borivali (West), Mumbai

3. Dr. B. R. Ambedkar Institute of Rural Technology &

Management, KVIC, Nashik

4. Gajanan Naik Multi-Disciplinary Training Centre, Agar

Road, Dahanu, Dist. Thane.

5. Central Institute of Plastics Engineering & Technology

(CIPET), Aurangabad.

6. Rahi Shikshan Mandal, Shivaji Nagar, Varangaon Road, Tal.

Bhusawal, Dist. Jalgaon.

7. Maharashtra Centre for Entrepreneurship Development

(MCED), Aurangabad.

8. MITCON Consultancy Services Ltd., Pune

Government of Maharashtra Agro Industrial Policy 2010:

Maharashtra has diverse agro climatic conditions suitable for

the cultivation of a wide range of crops, and a progressive farming

community. The State has a large urban population with high

purchasing power. It is one of the major horticulture States in

India, with more than 13 lakh ha under different fruit crops.

Maharashtra is a pioneer and leader in the use of water saving

technology like drip and sprinkler irrigation, and accounts for 60

percent of the total area under drip irrigation in the country.

Almost all the area under grapes and more than 60 percent of the

area under banana in the state has access to drip irrigation. The

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State is the largest exporter of Thompson seedless grapes,

Alphonso mangoes, onions and long stem cut flowers.

In the food processing sector, Maharashtra has as many as

16,512 small and medium and 322 large scale food processing

units. 13 mega projects have also been approved under the Package

Scheme of Incentives since 2005 with an investment of nearly Rs.

2600 crores. At the grassroots level, there are more than 45,000

agro processing cooperatives. In fact, food products and beverages

is one of the major industries in Maharashtra, and contributed 9.7

per cent in terms of total value of output in 2007-08. The food

processing sector in the State has attracted Rs. 1039 crores worth

of Foreign Direct Investment through 173 projects since 1991.

Thus, Maharashtra is one of the country’s leaders in agro-industry

in general, and in food processing in particular. However, the

current level of processing in the State, as in the rest of India, is

very low by international standards. There is tremendous potential

for much higher value addition through processing. The

Maharashtra Industrial, Infrastructure and Investment Policy,

2006, which is also applicable to agro-processing and other agro-

industrial units, stated that the Government of Maharashtra would

formulate a separate policy for agro-industry with a focus on food

processing and preservation. This would create more off farm jobs

and also bring greater value addition and incomes for the rural

population. Given the peculiar problems associated with this sector

such as high levels of fragmentation, perishability, complex supply

chains, large wastages etc, there is a need for a separate Policy to

address them, with a focus on food processing.

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The Agro-Industrial Policy aims at value addition from

agricultural produce by induction of modern technology into food

processing, encouraging research and development, minimization

of wastage across the food processing chain by development of

infrastructure for storage, transportation and processing of agro-

food produce to fill in the gaps of supply chain from farm to

consumer, and promotion of investment in all these fields. The

objective is also to increase participation of entrepreneurs and

farmers in food processing and related sectors, creating new

employment opportunities, and increasing incomes, particularly of

the rural population.

Maharashtra's Information Technology / Information

Technology Enabled Services Policy – 2015:

Maharashtra - a globally competitive Information

Technology / Information Technology Enabled Services

destination that promotes inclusive growth and to establish

Maharashtra as an intellectual and knowledge capital of India. To

place Maharashtra amongst the most preferred investment

destinations for global investors through promotional strategies

combined with developing a competitive and sustainable

investment environment, thereby making Maharashtra as one of

the most favoured economic magnet and centre of attraction. The

Government of Maharashtra announced its IT Policy in 1998. It

was followed by the Information Technology and Information

Technology Enabled Services (IT/ITES) Policy-2003 and IT/ITES

Policy-2009 to generate employment, increase efficiency and to

improve the quality of life. The IT/ITES Policy-2009 came into

159

force from 29 August 2009. Due to the policy initiative, IT sector in

the State has grown by leaps and bounds during the last decade.25

References:

1. Report On The Evaluation Of Entrepreneurship

Development Institution Scheme (2008) - The Ministry of

MSME, Government of India New Delhi.

2. Khanka S. S. (1994) - Industrial Development of Backward

Areas - Himalaya Publishing House, New Delhi, p.86.

3. Ravindra Abhyankar (2014) - The Government of India's

Role in Promoting Innovation through Policy Initiatives for

Entrepreneurship Development – Technology Innovation

Management Research.

4. Ahmed, S. F. (2011) - Problems and Prospects of Cottage

Industry in India - Anmol Publications, New Delhi.

5. Dhar, P. K. (1991) - Economy of Assam, Kalyani Publishers,

New Delhi.

6. http://msmetraining.gov.in

7. Laghu Udyog Samachar - Development Commissioner,

Ministry of SSI, Government of India, New Delhi.

8. Kulkarni, P. R. (2001) - Financial Structure for Backward

Area Development - SEDME Journal, New Delhi.

9. Sarang Jewlikar and O.P. Haldar (2005) - Effectiveness of

EDP Conducted by Maharashtra Center for

Entrepreneurship Development (MECD) in Creating

Entrepreneurs - International Journal of Engineering and

Management Research.

10. Satish Taneja & S. L. Gupta – Entrepreneur Development –

Galgotitiya Publishing Company, New Delhi.

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11. Training and Entrepreneurship Development -

http://msme.gov.in

12. Das, Malika (2001) - Women Entrepreneurs from India:

Problems, Motivations and Success Factors - Journal of

Small Business & Entrepreneurship, Vol. 15, No.4.

13. Rani (2005) - Potential Women Entrepreneurs - A study -

SEDME National Institute of Micro, Small and Medium

Enterprises.

14. Awasthi, D. and J. Sebastian (2014) - Evaluation of

Entrepreneurship Development Programmes - Sage

Publications, New Delhi.

15. Gaikwad, V.R. and U. Pareek - Entrepreneurship

Development Programmes: An Evaluation - Indian Institute

of Management, Ahmedabad.

16. Directorate of Evaluation (1988) - The Centre for

Entrepreneurship Development- An Evaluation, CED,

Ahmedabad.

17. http://mitcontraining.com

18. http://nscsindia.org

19. http://www.bankofmaharashtra.in

20. Saini, J.S. and B.S. Bhatia (2009) - Impact of

Entrepreneurship Development Programmes - The Journal

of Entrepreneurship, Vol.5, No.1.

21. Anil P. Sarode and Prashant H. Bhagat (2009) - Role of

MIDC in the Development of the Engineering Enterprises in

Navi Mumbai - Twelfth AIMS International Conference on

Management.

22. Amuthalakshmi P. and Kamalanabhan T.J., (2006) - A

Study on Education and Entrepreneurship development -

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Small Enterprises Development, Management and

Extension Journal, Vol. 33 No.1.

23. MIDC Annual Reports since 2000.

24. http://www.kvic.org.in

25. https://www.maharashtra.gov.in