ROLE OF SUPPORTING AGENCIES IN ENTREPRENEURSHIP DEVELOPMENT

1. ROLE OF SUPPORTING AGENCIESINENTREPRENEURSHIP DEVELOPMENT by Dr.E.BHASKARAN. B.E, M.B.A, Ph.D., DEPUTY DIRECTOR (COMMERCE)., DEPARTMENT OF INDUSTRIES AND COMMERCE., GOVERNMENT OF TAMIL NADU.

2. MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) SECTOR • Economic and Social Development of the country • Nursery for entrepreneurship, often driven by the individual creativity and innovation • 8 per cent of the country’s GDP. • 45 per cent of the manufactured output. • 40 per cent of our exports. • Labour and capital ratio is higher than in the larger industries

3. MSME SECTOR • As per 4th All-India Census of MSMEs, the number of enterprises is estimated to be about 26 million • 1.5 million are in the registered segment while the remaining 24.5 million (94%) are in the unregistered segment • Employment to an estimated 60 million persons • 55% of these enterprises are in 6 States, namely, Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh and Karnataka • 7% of MSMEs are owned by women • 94% of the MSMEs are proprietorships or partnerships

4. MSME SECTOR • Manufacture over 6,000 products • Food products (18.97%), • Textiles and readymade garments (14.05%) • Basic metal (8.81%), • Chemical and chemical products (7.55%), • Metal products (7.52%), • Machinery and equipments (6.35%), • Transport equipments (4.5%), • Rubber and plastic products (3.9%), • Furniture (2.62%), • Paper and paper products (2.03%) and • Leather and leather products (1.98%)

5. MSME SECTOR • Due to role in the economic and social development of the country, the Government has emphasized on its growth and development • It has taken various measures/initiatives from time to time which have facilitated the sector’s ubiquitous growth. • Micro, Small and Medium Enterprises Development Act, 2006.

6. MSME SECTOR • Amendments to the Khadi and Village Industries Commission Act. • Announcement of a Package for Promotion of Micro and Small Enterprises (MSEs), • Launching of new / innovative schemes under National Manufacturing Competitiveness Programme (NMCP), • launching of Prime Minister’s Employment Generation Programme (PMEGP) to generate employment opportunities

7. Manufacturing Enterprises • Investment limit in Plant & Machinery • Micro - Rs. 2.5 million / Rs. 25 lakh (US$ 50,000) • Small - Rs.50 million / Rs. 5 crore (US$ 1 million) • Medium - Rs 100 million / Rs 10 crore (US$ 2 million) • Rs 50 = 1 US$

8. Service Enterprises • Investment limit in equipment • Micro - Rs. 1 million / Rs. 10 lakh (US$ 20000) • Small - Rs. 20 million / Rs 2 crore (US$ 0.4 million) • Medium - Rs. 50 million / Rs 5 crore (US$ 1 million) • Rs 50 = 1 US$

9. MSEs in Tamil Naduas per IV All India Census Enhancing Competitiveness of MSMEs Credit Flow Single Window Cluster Infrastructure • Marketing • Tech. Up-gradation Delayed Payment Skill Development Direct Catalytic Subsidy 9

10. Organisational setup of Micro, Small and Medium Enterprises Dept. The objective is to promote industries in general and MSMEs in particular in the State. The Dept. consists of (i) Commissionerate of Industries & Commerce: District Industries Centres offer Escort Assistance to Entrepreneurs through Single window Committee and also impart training programmes. It sanctions subsidies and incentives, issues Entrepreneur Memorandum Part-I & Part-II besides conducting Facilitation Councils for early recovery of dues. (ii) Small Industries Development Corporation(SIDCO): Formation and upgradation of Industrial Estates, distribution of Raw Materials and rendering Marketing Assistance. (iii) Tamilnadu Small Industries Corporation Ltd.,(TANSI): Produces different kinds of industrial products like Steel, Wooden Furniture, Machine Tools, Deep Well Pumps, Galvanized Power Transmission Towers, etc., (iv) Entrepreneur Development Institute (EDI): Imparts training to new entrepreneurs and prepares new Project Profiles. 10

11. ROLE OF COMMISSIONERATE OF INDUSTRIES & COMMERCE • The primary objective of the Commissionerate is to promote industries in general and MSMEs in particular in the State. • The Commissionerate is the nodal agency for planning and implementation of various schemes for the development of Micro, Small and Medium Enterprises in the State.

12. FUNCTIONS The Commissioneratefacilitates Micro, Small & Medium Enterprises in the following areas 1.Pre-Project Implementation 2.Post-Project Implementation 3.Industrial Co-operatives 4.Channel to Govt. UTGs

13. 1.Pre - Project Implementation • Identification & Motivation of Entrepreneurs • Training To Entrepreneurs • Acknowledging Entrepreneur Memorandum - Part I • Single Window Clearance • Providing Escort Assistance

14. Identification & Motivation of Entrepreneurs • Techno-Economic Survey • Awareness Creation • Motivation & Guidance • Project Profiles • www.pmegp.in • www.rgumy.in

15. Techno-Economic Survey • District Industries Centres are functioning in all the districts headed by General Managers, supported by Functional Managers and Technical Officers. • DICs coordinate with MSME-DI, Chennai to conduct Techno-Economic Survey of each District.

16. Awareness Creation DICs are creating awareness on the policies and programs of the State / Central Governments, through Awareness camps, Seminars and dissemination meets in association with MSE Associations, Financial Institutions, MSME-DI and other development agencies.

17. Motivation & Guidance DICs provide guidance to entrepreneurs through • Technical Information Centres. • Data Bank & Information Centre for Electrical & Electronic Industries. • Data Bank for Chemical Industries. • District Export Promotion Cell attached to the District Industries Centres.

18. Technical Information Centres Technical Information Centres with libraries have been set up at Guindy, Ambattur, Madurai, Coimbatore, Trichy, Salem and Tirunelveli.

19. Data Bank for Chemical Industries • This Data Bank is a part of Chemical Testing & Analytical Lab, Guindy. • This lab has an excellent library with more than 6000 books and 25 journals . • This Data Bank has prepared 173 project profiles on selected chemical & allied industries so for. • The project profiles are available for Rs.50/= each.

20. Data Bank & Information Centre for Electrical & Electronic Industries • This centre is functioning for the use of entrepreneurs This centre provides information & guidance to the needy entrepreneurs on electrical & electronic industries. • This centre prepares project profiles on selected projects. • A state wide directory of electronic units in the organised sector as well as electronic units in MSE sector have been prepared for the use of entrepreneurs. • This centre monitors the progress of electronic projects for speedy implementation of the scheme in the state. • A technical library with 1400 books and 100 journals are available with the Centre.

21. District Export Promotion Cell • To promote exports, by motivating entrepreneurs, the District Export Promotion Cell have been formed in all the DICs • The District Export Promotion Cell provide information on the existing export activities, their potential for further exports and to provide necessary assistance on procedural matters for export. • The District Export Promotion Cell at the District level under the Chairmanship of the District Collector is also constituted to suggest and initiate measures for development of exports in the District. • The State Export Promotion Cell at the State Level under the chairmanship of Industries Commissioner and Director of Industries have been constituted to initiate measures for development of export in the State. • Export Promotion by way of distribution of awards to 100% Export Units and assistance in registration of 100% EOUs.

22. Training To Entrepreneurs • PMEGP • UYEGP • RGUMY • SKILL DEVELOPMENT & TRAINING • Engineering, Tool & Die-Designing

23. PMEGP • The "Prime Minister Employment Generation Progamme” is to generate employment opportunities in rural as well as urban areas of the Country through setting up of new self-employment ventures / projects / micro enterprises. • The scheme covers educated unemployed persons in the age group of above 18 years (SC/ST/ OBC/ Minorities/ Women, ex-servicemen, physically handicapped,) with minimum VIII std. passed. • Institutions registered under Societies Registration Act, 1980, SHGs, Production Cooperative Societies and Charitable Trusts • Self employment loan upto Rs.25.00 lakh for manufacturing and Rs.10 lakhs for service sector was available per candidate. • Selected Candidates were given training EDP Training for 2-3 weeks. • Under General Category Beneficiary contribution is 10% of the project cost and the rate of subsidy given is 15% for Urban and 25% for Rural areas and for others 5% contribution with 25% and 35% subsidy is given.

24. UYEGP • The “Unemployment Youth Employment Generation Progamme” is to generate employment opportunities in rural as well as urban areas of the Country through setting up of new self-employment ventures / projects / micro enterprises. • The scheme covers educated unemployed persons in the age group of above 18 years (SC/ST/ OBC/ Minorities/ Women, ex-servicemen, physically handicapped,) with minimum VIII std. passed. • Institutions registered under Societies Registration Act, 1980, SHGs, Production Cooperative Societies and Charitable Trusts • Self employment loan upto Rs.5.00 lakh for manufacturing sector, Rs.3 lakhs for service sector and Rs.1.00 lakh for Business Sector was available per candidate. • Selected Candidates were given training EDP Training for 7 days. • Under General Category Beneficiary contribution is 10% of the project cost and for others 5% contribution and the rate of subsidy given is 15%.

25. Skill Development and Training. • Objective is to bride the gap between the unemployed and skilled manpower requirements of the industries. • To identify target groups through MSME Associations and provide them with skill development training in various sunrise sectors with employment linkage. • Reimbursement up to 50% of the tuition fees of special short term courses run by the MSME associations for the benefit of the educated unemployed in collaboration with any reputed institution in the State.

26. Rajiv Gandhi Udyami Mitra Yojana • In order to obviate the difficulties faced by entrepreneurs to start their own ventures after EDP, SDP, ESDP/ VT, GOI, Created Udyami Mitras for establishment of First Generation New Enterprises in dealing with procedural and legal hurdles for setting up and running of MSMEs. • UM-GOI, GOTN, Associations. • For MSE- Service and Manufacturing.

27. Engineering, Tool & Die-designing • Govt. Technical Trg. Centre. Guindy • Institute of Tool Engineering, Dindugul • Institute of Ceramic Technology, Vridhachalam • Govt. Scientific Glass Trg. Centre, Guindy

28. Govt. Technical Trg. Centre. Guindy This centre was established during the second five year plan to provide necessary skill for the workers to be employed in the MSEs. This centre conducts the following coursed • Diploma in Tool Engineering - 3 Years (30 candidates) 2. Diploma in Refrigeration - 3 Years (40 candidates) & Air-conditioning 3. Post diploma in Die & - 1 Year (10 Candidates) Tool Design

29. Institute of Tool Engineering, Dindugul • This Institute was started in the year 1962. • This Institute conducts a 3 year diploma course in Tool Engineering. • Minimum qualification for admission is a pass in X std. • Diploma certificate is awarded by the State Board Of Technical Education and training • Annual intake is 30 • This Institute also undertakes job work in Tool Servicing and Tool Making

30. Institute of Ceramic Technology,Virudhachalam • This Institute imparts training for diploma in Ceramic Technology from 1964 onwards. • 50 students are admitted every year • Duration of the course is 3½ years • Qualification for admission is a pass in X Std. • This Institute is only one of its kind in TN. • It has a well equipped Special Pilot Plant Lab • It undertakes testing of ceramic raw materials and products recd. from ceramic units located in and around Virudhachalam

31. Govt. Scientific Glass Training Centre, Guindy • This centre imparts practical training to students in the manufacture of scientific glass apparatus • Duration of the training course is 2 years. • 25 students are trained every year. • Trainees are paid a monthly stipend of Rs.120 per month. • The students after completion of training get jobs easily in scientific glass manufacturing units. Some of them have started their own units also .

32. Acknowledging of Entrepreneurs Memorandum (Part I) • Any person who intends to establish a Micro or Small Enterprise or a Medium Enterprise engaged in providing or rendering of services may, at his discretion or a Medium Enterprise engaged in the manufacture or production of goods shall file the Memorandum of  Micro, Small or Medium Enterprise as the case may be, with the District Industries Centres or with the Office of the Regional Joint Director of Industries & Commerce in respect of Chennai. • The Entrepreneurs Memorandum (Part I) can also be filed on-line through internet by logging into the web-site http://www.msmeonline.tn. gov.in/

33. SINGLE WINDOW CLEARANCE • The entrepreneurs are assisted by DICs in getting clearances from local bodies, Town Planning, Pollution Control Board, Public Health, Inspector of Factories, TNEB, Fire Services and other Departments and getting timely power connection under the Single Window Clearance Scheme. • Government would enact an TN Business Facilitation Act,for giving Single Window Clearance Committees, at State and District level, formal authority and set time period for grant of approvals and deemed approvals.

34. Industries Escort Service • The Industrial Escort Service Wing of the Department has been established by the Government to assist the entrepreneurs at various stages of establishment of new Large Scale Industries in the State. • This wing renders assistance relating to 1Processing applications of the entrepreneurs for issue of industrial licenses for setting up major industrial undertaking. 2.Permission to set up 100% export oriented units in the State by recommending to Government of India.

35. 2. Post Project Implementation • Acknowledging Entrepreneur Memorandum - Part II for MSMEs • Cottage Industries and Handicrafts Registrations • Quality Control • Incentive Schemes • Exports • Industries Escort Service • Sample Survey • MSE Facilitation Councils • Sick Units Rehabilitation Assistance

36. Entrepreneurs Memorandum (Part II) Cottage Industries and Handicrafts Registrations • DICs issue online acknowledgment to Entrepreneurs Memorandum (Part II) filed byMicro ,Small and Medium Manufacturing or ServiceEnterprises once they start production or start providing or rendering services, • Cottage Industries and Handicrafts Industries registration certificates are also issued by district Industries Centres.

37. Industrial Estates 1. Electrical & Electronics Industrial Estates 2. Industrial Cooperative Estates 3.Ceramic Industrial Estate, Vridhachalam

38. Electrical & Electronics Industrial Estates • Thiruvanmiyur and Perungudi in Chennai • Kakkalur in Trivallur District • Hosur in Dharmapuri District, • Thuvakkudy in Tiruchirapalli District. • Kalappatti in Coimbatore District. • Kappalur in Madurai District • Sooramangalam in Salem District The Department of Industries and Commerce (Electrical and Electronics wing) has developed 8 functional industrial estates to provide developed plots/sheds to the needy entrepreneurs exclusively for Electrical and Electronics industries on hire purchase/rental basis in the following places.

39. Industrial Cooperative Estates • Total number of Registered Cooperative Industrial Estates are 11. • Out of 11, the following 9 Estates are functioning. 1.Vyasarpadi Coop,indl.Estate, Chennai 2.Sakthi Coop,indl.Estate, Pollachi 3. Salem Coop,indl.Estate, Salem 4. Sivakasi Coop,indl.Estate, Sivakasi 5. Tuticorin Coop,indl.Estate, Korampallam 6. Kanyakumari Coop,indl.Estate, Aralvoymozhi 7. Madurai Automobile Coop,indl.Estate, Kappalur 8. Cheran Coop,indl.Estate, Coimbatore & 9. Salem Granite and General Coop,indl.Estate, Salem The following Coop. Indl. Estate where plots have not yet been allotted to the members. • Priadharsini Cooperative Industrial Estate, Tenkasi • Arignar Anna Industrial Park, Coimbatore

40. Ceramic Industrial Estate, Vridhachalam • This Estate is supervised by an Administrative Officer. • There are 62 units within the Estates on rental basis at the rate of Rs.1 per sq.ft.

41. Cluster Development MSECDP SFURTI IIUS CFC- 70% of Project Cost, subject to ceiling of Rs.15 crores per project including Rs.25 lakhs for Soft activities like capacity building in the Cluster where no fixed asset is acquired for formed. • Promoted by Dept. of Industrial Policy & Promotion, Ministry of Commerce and Industry, GOI. • The assistance for cluster per location is restricted to 75% of the project cost subject to a ceiling of Rs.60 crore. The remaining 25% is to be financed by the stakeholders. Scheme of Fund for Regeneration of Traditional Industries: 6 coir Industrial clusters in 6 places, viz. Cuddalore, Salem, Singampunari, Periyakulam, Pattukottai and Gudiyatham. 41

42. CLUSTER DEVELOPMENT APPROACH • Tirupur Textile Cluster, Tirupur. • Cerals, Pulses and Staples Milling Cluster, Madurai • Chennai Auto Ancillary Cluster, Chennai. • Leather Cluster, Ambur. • Pump, Motor and Foundry Cluster, Coimbatore. • COWMA, Coimbatore. • Sagoserve, Salem. • Gudiyatham, Kalugumalai, Virudhunagar, Sattur, Kovilpatti and Srivilliputhur- Match Cluster. • Ceramic Cluster, Vridhachalam. • Brick Cluster, Tirunelveli. • Engineering Cluster, Chennai. • Pharma Cluster, Alathur, • Plastic Cluster, Chennai.

43. Quality Control 1. Chemical Testing & Analytical Lab, Guindy. 2.Regional Testing Labs at Madurai, Coimbatore, Salem & Tuticorin. 3. Central Electrical Testing Lab, Kakkalur. 4.Common Facility Centre, Hosur. 5. Quality Control Order Enforcement Centre

44. Chemical Testing & Analytical Lab,Chennai • This Laboratory caters to the testing needs of industries by undertaking testing and analysis of all types of raw materials and finished products. • This laboratory is fully equipped with sophisticated analytical instruments such as Atomic Absorption Spectrophotometer, Leco Carbon Sulphur Analyser to undertake complete range of analysis and testing on payment of nominal charges. • In Mechanical and Metallurgical Laboratory, Physical testing for tensile, compression, impact, hardness etc., are conducted. • Bonafide MSEs registered with this Department are extended 50% concession in testing fees. • This Laboratory has been recognised by Bureau of Indian Standards for certain products.

45. Regional Testing Labs at Madurai, Coimbatore, Salem & Tuticorin • RTL, Madurai caters to the testing needs of industries located in Madurai,, Theni, Dindigul, Sivagangai, Virudhunagar, Ramanathapuram, Pudukkottai, Tiruchirapalli, Karur, Perambalur, Ariyalur, Thanjavur, Thiruvarur, and Nagapattinam Districts. This laboratory has been equipped with the sophisticated instrument, HPLC (High Performance Liquid Chromotograph) for accurate testing of Drugs & Pesticides with the equal share of matching grant of Government of India and Government of Tamilnadu. • RTL, Coimbatore, caters to needs of industries located in Coimbatore, Erode and The Nilgiris Districts. • RTL, Salem caters to the testing needs of mainly Sago and Starch industries located in Salem, Namakkal and Dharmapuri Districts. Facilities are also available for testing of samples of all types of minerals, cattle feed, water, coir pith in this laboratory. This laboratory is now in a position to cater to the mechanical testing needs of industries. • RTL, Thoothukudi, caters to testing needs of industries in Thoothukudi , Tirunelveli and Kanyakumari Districts.

46. Central Electrical Testing Lab, Kakkalur (CETL) • CETL offers testing facilities to the entrepreneurs for their electrical products. With the present testing facilities 160 types of electrical products are being tested for confirming with Indian Standard specifications. • In addition to the above, additional testing facilities have been created for testing energy meters, watt-hour meters and electrical motors for BIS specifications, medical and equipments for electrical parameters and calibration facility for measuring instruments. • This laboratory has been recognised by Bureau of Indian Standards(BIS), Railways, Rail India Techno Economic Services(RITES), Director General of Supplies and Disposals(DGS&D) and has also been approved as a quality consultant for Government and Quasi - Government Organisations. • CETL is accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories), New Delhi. This is the only laboratory of its kind to be accredited for Electrical Appliances (items) in South India.

47. Common Facility Centre, Hosur • This Centre provides testing facilities for development of electrical and electronic products and also to create awareness on quality of electronic products.

48. Quality Control Order Enforcement Centre • The State of Tamil Nadu has been divided into four regions and implementation of the Quality Control Order has been entrusted with the officers of the respective region in addition to their designated duties. • This Centre creates awareness on the need to have quality electrical products and the penalties imposed for manufacture / storage / sale of sub-standard products of electrical items covered under Quality Control Order 1981, 1988, 1989 and 1993, among public through publicity and seminars.

49. Micro, Small and Medium Industries Policy – 2008 released by Hon’ble Chief Minister of Tamil Nadu on 22.02.2008 First ever exclusive policy for MSME sector announced by any State, since the introduction of MSMED Act 2006.

50. Vision • Enhance the competitiveness and scalable capacity of the MSMEs in Tamil Nadu. • Encourage agro based industries for increasing value addition and giving better income to the farmers. • Target a sustained annual growth rate of over 10%. • Promote 10 lakh direct and indirect employment opportunities during the XI Plan period.