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VIBRANT GUJARAT

MICRO, SMALL AND MEDIUM ENTERPRISES: ENGINE OF MODERN ECONOMIC GROWTH

Table of Contents

1. MSME

1.1 MSME: Indian overview

1.2 MSME: Gujarat Scenario

1.3 MSME: District-Wise Detail

1.4 Government Schemes for MSME

1. Micro, Small and Medium

Enterprises (MSMEs)

1.1. Micro, Small and Medium

Enterprises (MSMEs) :

Indian Overview

5

Micro, Small and Medium Enterprises (MSME) : Overview

Sources: msme.gov.in

Micro, Small and Medium Enterprises

(MSME) contribute natioanally

• 8 percent of the country’s GDP

• 45 percent of the manufacturing output

• 40 percent of the exports

• Largest share of employment after

agriculture

Classification of MSME(s)

Enterprises Manufacturing Enterprises:

Investment in Plant & Machinery

Service Enterprises:Investment in

Equipment

Micro Up to INR 2.5 Million Up to INR 1 Million

Small INR 2.5 Million – INR 50 Million

INR 1 Million – INR 20 Million

Medium INR 50 Million – INR 100 Million

INR 20 Million – INR50 Million

The Government encourages and honors innovation and enterprise. The state and central government bodies

work in close coordination with the Entrepreneurs, Industry Associations, Banks and other stakeholders

through numerous field offices and technical institutions to help the ‘engines of growth’ of India

6Sources: msme.gov.in ; Annual Report 2012-13 by Ministry of MSMEs, Government of India ; “Micro, Small and Medium Enterprise Finance in India-2013” :

Report by International Finance Corporation (World Bank Group)

As per 4th All India Census of MSME 2006-2007,

1. Enterprises have increased at an annual growth rate of 28.02%

2. Employment has increased at an annual growth rate of 26.42%

S. No. Factors Value

1 No. of enterprises (Acknowledged)

1.56 Million

2 Employment generation 9.3 Million

3 Women-led enterprises ~215,000 (~13.72 percent)

4 Rural enterprises ~707,000

About 45.20% of the enterprises were located in rural areas. There are over 6,000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India.

Micro, Small and Medium Enterprises (MSME) : Overview

7

Distribution

• The figures brought out by the latest MSME Report by Ministry of MSME(s) revealed the size of the registered MSMEs sector to be over 1.1 Million Enterprises

• Of the total registered working enterprises, the proportion of micro, small and medium enterprises were 94.94%, 4.89% and 0.17% respectively. This comprises of 67.10% manufacturing enterprises and 32.90% services enterprises.

Sources: Gujarat Micro, Small & Medium Enterprises Report 2013

94.94%

4.89%

0.17%

Proportion of total registered working enterprises

Micro Small Medium

67.1%

16.8%

16.1%

Sector-Wise Distribution

Manufacturing

Service

Repairing & Maintenenace

8

Growth of MSMEs in India

Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India

174,319

367,396

581,290

818,550

1,101,045

1,564,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Number of MSME(s) in Registered Sector

9

MSME Sector: Leading Industries (India)

Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India

8.75%

6.94%

3.21%

2.33%

2.33%

3.64%

3.57%

39.85%

6.20%

3.77%

19.40%

Leading Industries: MSME Sector Manufacturing of Wearing Appearel; Dressing and Dying

Manufacture of Food Products and Beverages

Manufacture of Furniture; Manufacturing N.E.C

Manufacture of Fabricated Metal Products, Except MachineryEquipment

Manufacture of Textile

Hotels and Restaurants

Sale, Maintenance and Repair of Motor Vehicles and Motocyles; RetailSale of Automotive Fuel

Retail Trade, Except of Motor Vehicles and Motorcycles; Repair ofPersonal and Household Goods

Other Service Activities

Other Business Activities

Other

1.2. MSME : Gujarat Scenario

11

The strength of Gujarat’s manufacturing sector lies in its strong base of micro, small and medium

scale enterprises (MSMEs)

Ahmedabad, Surat, Rajkot, Vadodara, Bharuch, Jamnagar, Bhavnagar and Valsad are the major

Multi-Product MSME clusters in the state

Total investment under MSME, between year 2010 - 2014, stood at USD 7.7 billion creating 1.39

million employment

Micro, Small and Medium Enterprises (MSMEs)

0.55

2.16

Gujarat MSME Scenerio

Total MSMEsin Gujarat (inMillions)

Employmentgeneration instate (inMillions)

Rajkot

Valsad

Surat and Tapi

Vadodara

Ahmedabad

Bharuch

Bhavnagar

Jamnagar

Sources: MSME Division: Industries Comissioner Office, Gujarat

12

MSMEs in Gujarat

There are over 312,000 SSI(s) and over 261,000 MSME(s) in Gujarat as on March 2014


2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Number of MSME(s) Registered 4131 17317 35184 55177 83117 134898 203133 261760

Investment (in hundred thousand USD) 5005.52 18177.52 31334.63 44397.37 59323.82 78950.93 100507.07 121463.0333

Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958

0

500000

1000000

1500000

2000000

2500000

0

50000

100000

150000

200000

250000

300000

Cumulative Growth of MSME(s) in Gujarat

Number of MSME(s) Registered Investment (in hundred thousand USD) Employment

Total number of SSI(s) and MSME(s) registered in Gujarat > 525,000

13

Sector wise distribution of MSMEs in Gujarat


69817

15443

13153

5459

4916

4548

3832

3764

3749

3613

25672175

1746

997

24084

47279

10271

Total MSME(s) Acknowledged up to 31 March 2014 IndustryTotal MSME(s)

Registered from 2006-2014

Textiles 69817Machinery and parts except electrical 15443Basic Metal Industries 13153Chemical & chemical Products 5459Rubber & Plastic Products 4916Food Products 4548Electrical Machinery and Apparatus 3832Non-metallic mineral Products 3764Leather Products 3749Paper Products & Printing 3613Mining and Quarrying 2567Wood Products 2175Transport equipment and parts 1746Beverages, Tobacco & Tobacco Products 997Service Activities 24084Trading Activities 47279Others 10271

14

118

30

76

8

18

2

105

72

71844

69308

10017

556

1140

120

12345

6610

Educational Infrastructure

Engineering Diploma Engg

Pharmacy Diploma Pharma

Arch. And Allied Hotel and tourism

MBA MCA

Sectorwise number of Degree Colleges, Gujarat, 2013

Sectorwise total number of seats in Degree Colleges, Gujarat, 2013

• Gujarat’s literacy rate of 79% is above the National average of 74%• > 100 % Increase in seat availability in technical institutions over

last 3 years• In 2001, Gujarat had 11 Universities which has increased to 48 in

2013• 441 vocational training institutes (Industrial Training institutes

(ITI's)) offering 87981 seats every year for semi-skilled manpower• Over 7 lakh students graduate every year

Knowledge Consortium of Gujarat • Established by the Department of Education, Government of Gujarat

it envisions to generate and provide ideas and paradigms forachieving excellence in education, educational management andpolicy framing for education in general and higher education inparticular so as to ensure that Gujarat carves a unique niche foritself in the global knowledge society in the 21st century

Policy of State to create Industry Responsive, readily employable, skilled manpower

The State government has introduced various schemes for training of industry responsive manpower. Currently Gujarat has 738 ITI(s) with a

total seats of 149,545 Seats

Gujarat has a good educational infrastructure with premier institutes in management, technology, fashion, design, infrastructure planning and pharmaceuticals

Availability of Skilled Man-power

Sources: Directorate of Technical Education, Gujarat

http://www.irma.ac.in/index.php

http://www.irma.ac.in/index.php

15

MSME Clusters in Gujarat

• The Government has identified a total of 106 product clusters inGujarat in, traditional and modern, across the districts

• Gujarat stands 1st in terms of the asset base of the MSME sector,according to the Fourth Census of MSMEs

• State ranks 1st in integrated overall performance of MSMEs atNational Level, as per ISED Small Enterprise Observatory

• The State Government has taken initiatives to extend support forstrengthening clusters through interventions such as

1. technology up-gradation

2. quality improvement

3. setting up of common facility centers

4. skill development facilities, etc.

5. active assistance of R&D institutions, as well as industryassociations

• Micro and Small Enterprises -Cluster Development Program (MSE-CDP) is being implemented for holistic and integrateddevelopment of micro and small enterprises in clusters.

• Out of the total number of working

enterprises, 56.13% are located in the clusters

with an employment Contribution of 48.92% of

the total MSME employment.

• Out of the total gross output in the MSME

sector, the contribution of clusters is 45.84%.

• Of the total market value of fixed assets, the

combined share of units in clusters is 55.20%.

Sources: MSME Division: Industries Comissioner Office, Gujarat ; Gujarat MSME Report 203

16

Others

Paper Products

Plastic Products

Textile Industry

Food Products

Chemical Industry

Engineering

Mineral Products

Product Clusters in Gujarat

Sources: Gujarat Micro, Small & Medium Enterprises Report 2013

17

1.3. MSME : District-wise Detail

18

Ahmedabad

Ahmedabad

Airport: Sardar Vallabhbhai Patel International Airport, Ahmedabad; Lies in the influence area of DMIC

Dyes and Chemicals

Textile Machinery

Pharmaceutical Machinery

Moulded Plastic Products

Readymade Garments

Diamond Processing

Machine Tools

Castings & Forging

Steel Utensils

Wood work and Furniture

Paper Products

Leather Footwear

Washing Powder & Soap

Marble Slabs

Power driven Pumps

Auto Parts

Electronic goods

Did You Know?

Ahmedabad is

known as the MSME

Capital of Gujarat

Number of SSI(s) & MSME(s) 64836 (SSI)266911 MSME(s)

Number of Industrial Estates -GIDCs 13

Number of SEZ(s) 12

Number of Industrial Parks 10

Number of private industrial co-opestates

70

Number of Clusters 8

Number of ITI(s) 61

Major Ports Kandla, Mundra,Vadinar

Special Transport Facilities

• BRTS Mass Transport

• Expressway Fast Transport


19

Rajkot and Morbi

Diesel Engines and parts

Submersible Pumps

Gold and Silver Jewelry

Salt Processing

Electronic

Watches and Clocks

Oil Mills

Textile Printing

Clay Floor Tiles

Electric Motors

Casting and Forging

Machine Tools

Diamond Processing

Paper Products

Number of SSI(s) & MSME(s) in Rajkot

and Morbi

20,832

Number of Industrial Estates 16


Number of ITI(s) 25

Nearest Port Navlakhi

Did You Know?

Rajkot is one of the most competitive

production centre in India offering

engineering services and is known as

“Manufacturing Hub of Gujarat”

Airport: Rajkot Domestic Airport

Rajkot

Morbi


20

Surat and Tapi

Number of SSI(s) & MSME(s) in Surat 221511

Number of Industrial Estates 11 Govt.15 Private

Number of SEZ(s) 5



Number of ITI(s) 48

Nearest Port Magdalla & Hazira

Paper Products

Diamond Cutting and Polishing

Textile

Powerlooms

Zari

Wood Products and Furniture

Rubber, Plastic and its Products

EngineeringDid You Know?

Surat accounts for about 80 % of

total diamond processing done in India, thus giving it

the name of‘The Diamond City’

Airport: Surat Airport; Lies in Influence area of DMIC

Indian Diamond Institute

Provides training,

consultancy and R&D

Services in diamonds,

coloured gemstones

and machine cast jewellery

Man Made Textile ResearchAssociation (MANTRA)

Provides R & D, Testing,

Technical and Quality

Control Services

Surat Tapi


21

Vadodra and Chhota Udaipur

General Engineering

Pharmaceuticals (Bulk Drugs)

Plastic Processing

Wood Work and Furniture

Textile

Glass

Cotton

Tobacco

Fertilizer

Fisheries

Dairy

Paper Products

Number of SSI(s) & MSME(s) in Vadodara ~25,000


Number of SEZ(s) 3


Number of ITI(s) 48

Did You Know?

The city is on the major rail and road

arteries joining Mumbai with Delhi and Mumbai with

Ahmedabad. Because of this

Vadodara is known as a

‘Gateway to theGolden Corridor’

Airport: Vadodara Domestic Airport; Lies in influence area of DMIC

Vadodara


Chhota

Udaipur

22

Bhavnagar

Ship Breaking

Steel Re-rolling

Machine Tools

Plastic Processing

Diamond Processing

Salt Processing

Number of SSI(s) & MSME(s) in

Vadodara

~15,000

Employment Generated >100,000

Number of Industrial Estates 10 GIDC

5 Private

Number of ITI(s) 28

Port(s) Bhavnagar

Bhavnagar contributes to 90 per cent of Magnesium

Hydroxide production tin India

Did You Know?

Alang & Sosiya Ship

Breaking Yard are

Asia's Biggest Ship

Breaking Yards. These

are now on a fast

paced growth towards

Ship Making &

Recycling

Airport: Bhavnagar Domestic Airport; Lies in influence area of DMIC

Paper Products

Wood Products

Textile Industry

Chemical Industry

Engineering

Bhavnagar


23

Porbandar and Junagadh


Junagadh

SSI : 7181

MSME: 1352



Total number of Clusters 4

Number of ITI(s) 63

Ports Veraval Port


Porbandar

SSI : 1725

MSME: 628


Total number of Industrial

Clusters

2

Number of ITI(s) 3

Machine Tools

Seafood products

Cement

Food Products

Chemicals

Glass and Ceramics

Did You Know?

Junagadh is famous in thecountry for production ofmango, mango basedproducts which is beingexports in various countries

Paper Products

Engineering

Junagadh

Porbandar


24

Jamnagar and Devbhoomi Dwarka


Jamnagar and Dwarka Bhoomi

5640

Number of GIDC Industrial

Estates

11

Number of SEZ(s) 1


Number of ITI(s) 15

Ports Bedi Port, Okha

Port, Sikka Port,

Pindara Port,

Salaya Port

Airport Jamnagar

Domestic Airport

Brass Articles

Wood Products

&Furniture

Food Products

Chemical

Paper Products

Textile

Mineral Products

Engineering

Did You Know?

Brass metal parts cluster in

Jamnagar is famous worldwide

for its wide variety and quality of

products

Jamnagar

Devbhoomi Dwarka


25

Bharuch and Valsad


Valsad

4634



Number of ITI(s) 5

Lies in the Influence Area of DMIC


Bharuch

SSI: 11,991

MSME: 5456

Number of GIDC Industrial

Estates

12

Number of SEZ(s) 8

Number of ITI(s) 9

Nearest Ports Dahej

Nearest Airport Vadodara

Dahej has been identified as a thrust area for large

scale industrial development by the Government of

Gujarat

Lies in the Influence Area of DMIC

Bharuch

Valsad

Chemicals

Paper & Pulp Industry

Textile

Wood Products

Petrochemical

Pharmaceutical

Textile

Light Engineering


26

■ Promotes industrial development by bringing about industrial reforms

■ Monitors and Controls functions for planned industrial developmenthttp://ic.gujarat.gov.in/

IndustriesCommissionerate

(IC)

■ iNDEXTb was set as a ‘facilitating’ organization to ensure smooth and hassle-free experience for a prospective investor

■ iNDEXTb provides information to the public in general and entrepreneurs in particular, regarding the opportunities available in the State of Gujarat for industry, commerce, trade, business openings and participation therein

http://www.indextb.com/

IndustrialExtension Bureau(iNDEXTb)

■ GIDC has been created for securing the orderly establishment and organization of industries in industrial areas and industrial estates in the state

■ To fulfill the above mandate, the Corporation has established 186 industrial estates, ranging from mini to mega sizes, in 25 of the 25 districts of the state. It has also developed 6 Special Economic Zones

■ GIDC is now establishing Special Investment Regions, PCPIR, Industrial areas and large /sector-specific estates in tune with the changing economic and industrial scenario

http://www.gidc.gov.in/

Gujarat Industrial

Development

Corporation

(GIDC)

Government Organizations for Assistance and Promotion of MSME(s)

http://ic.gujarat.gov.in/

http://www.indextb.com/


27

MSME-DI (formerly Small Industries Service Institute), Ahmedabad covers the entire State ofGujarat covering 33 districts and Union Territories of Dadra & Nagar Haveli, Daman and Diu.

The Institute with its 2 Branch, Small Industries Service Institutes, one each at Rajkot andSilvassa and one Field Testing Station, Ahmedabad, serves the small scale industries in theseareashttp://www.msmediahmedabad.gov.in/

Micro, Mediumand SmallIndustriesDevelopmentInstitute

■ The program, 'SME Banking & Financial Services' has been designed to facilitate an in-depth understanding and develop skills in assessing financial needs of SMEs and designing appropriate financial intermediation

http://www.ediindia.org/

EntrepreneurshipDevelopmentInstitute of India

■ To develop entrepreneurs in state at urban and rural areas so that they can start their manufacturing or service venture for the economic growth and become self employed as well as provide employment to others.

■ The Entrepreneurship Development Program (EDP) develops confidence in a person to establish his own venture and manage it successfully

http://www.ced.gujarat.gov.in/

Center for Entrepreneurship Development (CED)

Institutes for Assistance to MSME(s)


http://www.msmediahmedabad.gov.in/

http://www.ediindia.org/

http://www.ced.gujarat.gov.in/

28

Government Supported Institutes for Assistance to SME(s)

Gujarat Industrial and Technical Consultancy Organization Limited (GITCO)

GITCO – a premier Technical Consultancy Organization (TCO) - provides consulting services to accelerate the growth of industrial and services economy of Gujarat.

www.gitco.co.inIndo German Tool Room

Indo German Tool Room Ahmedabad is a tool room and training Centre engaged in production of tools of precision plastic & metal component and also engaged in area of Training in tool and die making, CAD/CAM &

CNC Technology.

www.igtrahd.comElectronics and Quality Development Centre

EQDC provides Testing, Calibration and Quality services throughout the nation ranging from Government, semi government, and private organizations to MSME are of twenty three states across the country and

abroad to Asiatic / Arabian countries.

www.eqdc.inCentral Glass and Ceramics Research Institute

CSIR-CGCRI, Naroda Centre was established in the year 1977 to cater to the needs of the Ceramic Industries in the small and medium scale sectors in Gujarat and adjoining areas

www.cgcri.res.in

Central Institute of Plastic Engineering and Technology

CIPET provides dedicated services to the students and industry through long-term and Short-term courses, technical services in design and development of moulds for plastics products in the state-

of-art testing laboratory.

www.cipet.gov.inPharmaceutical Education and Research Development (PERD) Centre

Besides Research, PERD Centre provides some of the quality services to the industry in the areas of Bioequivalence, Toxicity studies, Biotechnology, Pharmacology and Phytochemistry.

www.perdcentre.com

29

MoU(s) Signed by MSME(s) in Vibrant Gujarat

1921

4494

12886

15813060

8863

0

5000

10000

15000

2009 2011 2013

MoU(s) Signed in Previous Versions of Vibrant Gujarat

Number ofProjects Signed

Number of Projects Comissioned or Under Implementation


Year Number of MoU(s) Signed

Projects Commissioned Projects under Implementation

2009 1921 1558 23

2011 4494 2851 209

2013 12886 4848 4015

30

1.4. Government Schemes for

MSME(s)

31

Assistance to Micro Small and Medium Enterprises

Resolution No. MSM/102009/57928/IDate: 27/2/2009Extension GR: MSM-10-2013-2070-I (28/1/2014)

Sources: ic.Gujarat.gov.in

Interest Subsidy Venture capital Skill Enhancement

All MSMEs are eligible for setting up of new unit or expansion or diversification or modernization of existing unit.

Graded interest subsidy, @7% for micro enterprises and @ 5% for Small & Medium enterprises.

1% additional interest subsidy to youth having less than 35 years of age in case of first project. Woman entrepreneurs accorded priority.

Maximum amount INR 2.5 million per annum, for five years period

Venture capital assistance through Banks/FIs for projects adopting innovative technology such as Technical textile, Nanotechnology, Information Technology, Bio-Technology etc..

Funds to be provided to Banks/FIs up to Max INR 100 Million during the operative period of the scheme

Reimbursement @50% of fees, subject to maximum of INR 5000 per person for a minimum one week training for skill upgradation conducted by institutions suggested by Anchor Institute or specialized institutions in a specific sector for a minimum batch size of 25 trainees

Technology Acquisition Fund

Assistance for technology acquisition in any form for group of at least 10 MSMEs for specific product/process, by way of 50% grant, subject to max. INR 10 Million/ technology including royalty payments for first 2 years

Quality Certification

Assistance for maximum 3 quality certifications @ 50% of expenditure subject to overall ceiling of INR 600,000 in five years

Expenditure includes fees charged by certification agencies, cost of testing equipment, calibration charges, consulting fees and training charges

Support to R&D Institutions

Assistance to R&D institutions set up with state government support for testing facilities, incubation center as well as setting up of new R&D Centre, up to 60% of the project cost excluding land and building cost.

Assistance for Contract/ Sponsored research work from Industrial units/Industry Association through recognized R&D institutions / AICTE approved technical colleges, @50% of project cost with a ceiling of INR 5 Million.

Patent Assistance

Assistance @ 50%. subject to max. INR 1 Million towards necessary expenditure for obtaining domestic patents and INR 2.5 Million for obtaining international patents subject to maximum 5 patents per unit over a period of 5 years

Energy and water conservation

Reimbursement @ 50% of cost of energy/ water audit with a max. of INR 25,000/- unit

In addition, assistance of 20% of cost of equipment subject to max. INR 1 Million in a project

Priority for group of units/clusters

32

Market Development Support

Assistance to MSME for packaging design from recognized institutions, @ 50% of the cost, subject to maximum INR 200,000 once in a period of five years.

Assistance to MSME for participation in International Trade Fair outside India @ 50%cost of rent, literature & display material subject to maximum INR 200,000

Assistance to Industries Associations (min. 5 units) for participation in international trade fairs as Gujarat Pavilion outside India @ 50% of total rent subject to max INR 1 Million

Viability Gap Support to industry associations for organizing national seminars/ exhibition in Gujarat (max. INR 400,000) and int. seminars/ exhibitions in Gujarat (max. INR 800,000)

Assistance to industry associations for setting up Convention/ Trade center @ 50% of project cost excluding land, max INR 50 Million once in a period of five years




Support for Ancillary/ Vendor Development

Support to Vendor development on PPP model wherein Parent unit to contribute min. 5% for prototype/ new product development besides technical support and commitment for procurement guarantee for 3 yrs.

Vendor unit will be eligible for interest subsidy as per scheme

Assistance @ 20% of infrastructure cost excluding land cost, max INR 10 Million to parent unit for development of industrial park

New or existing Medium/large unit as Parent unit to support min. 10 vendor units for a new product/ prototype development

Support to Auxiliary industries for value addition

Large units producing raw materials and promoting auxiliary MSME units to be encouraged to develop industrial park for accommodating min. 20 units.

Assistance @ 20% of infrastructure cost excluding land cost subject to max. INR 10 Million

Cluster Development

Anchor units, nodal institutions and/ or industry associations to take up the cluster program in PPP mode. Comprehensive support to strengthen cluster units in a program covering product design, technology upgradation,

quality improvement, energy and water conservation, common branding and marketing facilities, hiring of an expert/ cluster development agent, setting up of demonstration plants, common facilities, Incubation center, ITI extension center and other need based facilities

Assistance @ 80% (including assistance from Government of India) of proposed cost of program with a ceiling of INR 100 Million/ cluster in a period of 3 - 5 years

Assistance to nodal institutions/ hiring of experts will not exceed 3% of project cost A Cluster Advisory Institution (CAI) to be constituted Cluster to be eligible for partial financial assistance, available under critical infrastructure scheme. Nodal institution to prepare a five year comprehensive development plan of the cluster.

33


Awards to best MSMEs

Separate awards to Micro, Small and

Medium category

Three awards in each category

o Growth in production and profit

o Quality and Environment

improvement measures

o Innovation in technology for new

product or process development

Award in the form of INR 100,000 cash and

appreciation letter

Awardees are to be given priority in

participation in International Seminars

Independent Credit Rating agency to be

appointed to select the best performing

MSMEs in the above categories

Nominations to be encouraged from

Industries Associations

Rehabilitation of Sick Units

50% subsidy on cost of diagnostic study by Technical institution initiated through FI/ Bank/ Government-maximum INR 100,000.

Registered Experts in the field of technology, marketing and finance to advise sick units.50% fees (max. INR 100,000/unit) to be reimbursed on implementing suggestions.

Interest subsidy @5% p.a. limited to INR 10 Lakh per year for 3 years on additional finance for rehabilitation disbursed by bank/FI.

OTS for clearing dues of GoG Dept./ Corp./ Boards on a graded scale, for which a separate GR to be introduced

Other unit taking over a sick unit for rehabilitation to be eligible for assistance as above



Promotion of Specific Sector

Specific sector identified in a district shall be supported with integrated program of interest subsidy, technology upgradation and quality certification

Eligibility for Quantum Assistance

All eligible MSME can avail incentives

under different categories separately or

in combination. Assistance will be given

only once under each category in five

years period unless otherwise specified in

specific category of incentive.

34

Assistance to Textiles and Apparels

Maximum interest subsidy will be at the rate of 5% per annum (7% for spinning unit and garment/made-ups unit.)

Spinning Units which have acquired second hand imported machinery (acquisition value shall be at least less than 50% of the value of new imported machinery) or The weaving enterprises which have acquired second hand imported Shuttle less loom having 10 years vintage and with a residual life of minimum 10 years duly certified by CE/CA etc.

Power Tariff subsidy at the rate of INR 1 per unit in the billed amount of utility for 5 years to cotton spinning and weaving units.

This will only be applicable for establishing new enterprises or for expansion/ diversification of existing enterprises as well as the units with second hand eligible imported machineries.

The units who purchase electricity only from the state electricity / power distribution licensee will eligible for this relief

Refund of VAT paid by unit on purchase of intermediate product/raw material except for certain goods and certain transactions which are not eligible for tax credit under The Gujarat VAT Act, 2003 and reimbursement of tax collected on end product/intermediate product within entire value chain from cotton to Garment and made ups to the extent of 100% the eligible fixed capital investments in plant and machinery made within one year (two years in case of investment more than 500 crores ) from the date of production or during the operative period of the scheme whichever is earlier.

The concession will be available within 8 years from the date of the production.

Scheme 1

Resolution No. TEX/102012/65117/T Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in

35


Support to Technical Textiles

■ Credit linked Interest Subsidy @ of 6% per annum for investment in New and modern Plant and Machinery as specified under TUF scheme of GoI or covered under definitions of capital goods in VAT Act would be eligible .

■ The scheme will be applicable to new as well as to existing enterprise for expansion / up gradation in above sectors.

■ The enterprise which have acquired second hand machineries having 10 years vintage & with residual life of minimum 10 years duly certified by the competent authority will be considered eligible for support to the extent of 60 % of the acquisitionvalue of imported machineries.

■ The acquisition value of the second hand machinery shall be considered up to 50% of the value of new imported machinery or actual whichever is less.

Scheme-2

Assistance for Energy & Water Conservation and Environmental Compliance to existing Unit

■ Assistance up to 50%, max INR 50,000 for Energy Audit/Water Audit/ Environmental Compliance. Assistance of to 20% cost of equipment limited to INR 2 Million .

■ The Enterprises will be eligible for the above benefit once in 2 years of operating period of the scheme

Scheme 3

Assistance for Technology acquisition and up gradation

■ The enterprise acquiring the technology for the first time in India will be considered eligible under the scheme.

■ Assistance up to 50%, with max of INR 2.5 Million per process/product

Scheme 4


36

Textile & Apparel Park

Scheme-7 Support for Establishing Textile and

Apparel park

The park will be provided financial Assistance up to 50 per cent with maximum limit of INR 100 Million (INR 300 Million of spinning park) of total project cost for common infrastructure excluding land cost

The park must have provision for the location of minimum 20 nos. of manufacturing/service enterprises.(Max 25% nos. of service enterprises).

For Spinning Park- must have provision for the location of min. 10 nos. of spinning units with min. 150 acres of land.

Up to 35 % of land may be utilized for weaving activities to support spinning activities.

Stamp duty exemption certificate will by issued after approval of the project by SLAC.

Training Support

Scheme-5 Assistance for Apparel training Institutions and Trainees

Autonomous institutions promoted by government/public/private sector undertaking with strong background in this field

Assistance up to 85%, maximum INR 30 Million excluding land cost for training Institutes

Assistance up to 50% maximum INR 2 Million for training Centers

Reimbursement of tuition fees to trainees up to 50% maximum INR 7,000 per course for ten years from date of commencement

Scheme-6 Training Support to power-loom Sector

Stipend of INR 2,500 per trainee to trainees of power-loom training center's operated by ATIRA and Mantra

Transport cost & incidental expenses will be provided to : (a) Weavers @ INR 200/- per day for duration of two days. (b) Jobbers @ INR 300/- per day for duration of six days.

No allowances will be given to Power loom Owner



37

Assistance to Manufacturing Sector

Assistance for Core Infrastructure

■ This assistance will be for enabling basic infrastructure facilities.

■ The expenditure incurred for the core infrastructure development, excluding the land cost, shall be considered.

■ The new industrial park will be provided incentives of 50 % of total expenditure limited to INR 200 Million

■ Developer of park and first purchaser of individual unit eligible for exemption on payment of stamp duty and registration charge on purchase of land

■ Certificate for exemption in Stamp Duty and Registration charges shall be issued after the approval of the project by SLAC.

Interest Subsidy

■ Graded interest subsidy for five years @ 7 % for MSMEs & 2% for large Industries having an actual investment up to INR 1 Billion.

■ Maximum amount of interest subsidy per annum shall be INR 2.5 Million for MSMEs & INR 5 Million for large units

Assistance for Setting up of Common Facilities

■ Group of industries, Industrial Associations/ SPV of Industrial Associations or private company registered under the Societies Act, Partnership Act or the Companies Act shall be eligible to avail assistance.

■ One time assistance up to 80 % of the total expenditure limited to INR 100 Million for the cost of P & M test equipment, electrification, installation shall be considered to a self sustained project as approved by SLAC.

Assistance for Common Effluent Treatment Plant

■ An Industrial Park promoted on self sustained basis by Industrial Association / SPV of Association / Private Company would be eligible for assistance for setting up of project of CETP, incinerators and disposal of effluent.

■ Including the assistance of GoI, assistance up to 75% of total project cost will be given. If GoI assistance is not available then 40 % assistance will be given

Assistance for Centre of Excellence

■ Center of Excellence in PPP mode with State/ State institution/ industrial units/ professional institutes shall be eligible for assistance under this scheme.

■ Quantum of one time assistance shall be 70 % of the total expenditure, including recurring expenditure for the three years, limited to INR 200 Million in the case of national level and COE promoting value addition in the sub sectors of this GR.

■ Quantum of one time assistance shall be 70 % of the total expenditure, including recurring expenditure for the three years, limited to INR 300 Million in the case of international level COE promoting value addition in the six sub sectors and in the area of innovation and entrepreneurship

Govt. of Gujarat Introduced following schemes for 5 Manufacturing Sectors namely Auto & Auto Components, Solar & Wind Equipmentmanufacturing, Specialty & fine chemicals, Electronic System design & manufacturing and Food & Agro Business.

Resolution No. BJT-102012-92765-I Dt. 26.2.2013 Sources: ic.Gujarat.gov.in

38

Improving Industrial Infrastructure

Improving

Industrial

Infrastructure

Assistance to be considered for Upgrading infrastructure facilities

as may be required in an industrialestate / clusters/industrial area.

Additional infrastructure facilities. Upgradation of infrastructure

facilities in GIDC estates and Undertaking specific studies.

Industries Associations, Large Industry,Govt. Dept./agency, to be eligible.

Assistance will be @60% of the project costwith a ceiling of INR 100 Million in case ofIndustrial area / Park having less than 100hectares and INR 200 Million for area morethan 100 hectares

The promoter is to contribute 20% ofequity in the project.

Last mile connectivity project to theindustrial park / area having more than 25hectares to be considered.

Assistance to Industries Associations /Industrial houses or Institutions for setting upindustrial park in PPP mode.

Industrial park must have basic infrastructurefacilities to be classified into C, B & Acategories depending upon the minimuminfrastructure facilities.

Assistance will be in the form of Viability GapFunding upto 20% of the cost through GIDB.

Additional Assistance upto 20% may beprovided by the Central Government

Assistance to Industries Industrial Parks/Estates set up by Private Institutions. Any Industry Association/Industrial House or Institution registered under Societies Act or

Companies Act shall be eligible to avail assistance under this scheme. Industrial Parks/Estates shall have minimum of 30 industrial units in at least an area of 100 acres. Industrial Parks/Estates must have basic infrastructure facilities required like developed plot,

internal roads, water distribution , communication facilities and such other facilities/services asmay be required.

The Industrial Park/Estate will be provided an assistance of INR 100 Million for link infrastructure. The developer of the industrial park will be eligible for exemption on payment of stamp dusty on

purchase of land required for the project. Industrial units are required to pay stamp duty at therate of 50% of the duty

Scheme for assistance to Industrial Park/Estate set up by Private Institution

Sources: ic.Gujarat.gov.inResolution No. BGT/1008/626/GDt. 27/02/2009

Scheme for Assistance to Set Industrial Park/.Estate set up by Private Institution added in:Addendum No: BJT/1008/626/Part-1/GDt. 20/10/2011

39

Assistance for encouraging green practices and Environmental Audit

to MSMEs

Assistance Environment Management to MSMEs

Assistance for Environment

Protection Measures- MSME

Units

• Substitution & Optimization of raw material including catalysts up to 25% of cost of plant & machinery , ceiling of INR 1 Million per project

• Rainwater harvesting up to 50% of cost of fixed capital investment ceiling of INR 500,00 per project

• Any Other pre-identified environment management project up to 25% of cost of plant & machinery , ceiling of INR 1 Million per project

• Implementation of cleaner production and clean technology measures etc. up to 25% of cost of plant & machinery , ceiling of INR 1 Million per project

• Use of Clean, efficient and Innovative Pollution

Control Equipment in industries: up to 25% of cost

of equipment, ceiling of INR 250,000 per unit

• Periodic Environmental Audits up to 50% of fees of audit services or maximum INR 25, 000/unit

• Encouraging Environment Management System-setting up of Environment Management Cell up to 25% of cost of equipment , or maximum INR 500,000/plant once in a lifetime

Purchase of new equipment/systems relatedto safety, occupational health for a cluster ofindustries Assistance to industrial association orSPV of Industrial units up to 25% of cost ofequipment or maximum INR 2.5 Million percluster.

Installation of Solar system leading to atleast 5% energy saving Up to 25 % of thecost of system, INR 250,000 per plant

Assistance for Environment Protection Measures

Resolution No. BGT/1008/499(1)-G and BGT/1008/499(2)-GDt. 11/06/2009 Sources: ic.Gujarat.gov.in

40

Financial assistance for setting up extension center of ITI/

Polytechnic/ Engineering colleges in GIDC estates / industrial

clusters / SEZs/ Industrial Parks to run specific courses @,

100% in case of GIDC,

75% in industrial cluster and

50% in industrial Parks/ SEZs

with a ceiling of INR 10 Million for each

Extension Centre towards cost of Machinery and

equipment

Assistance to State Level Anchor Institutes in the selectedfocus sectors towards expenditure on equipment,internal refurnishing of premises and contingency. Additional financial support towards operating expenses

to Anchor and Nodal Institutes. Anchor Institute to actively involve industries and

provide technical support to the technical educationalinstitutions for shop floor workers, supervisory andmanagerial level training. The total financial assistance under both capital

and expenses will not exceed INR 100 Million ineach sector in the operative period of the scheme.

Assistance to Institutes / Universities/

Industries / Industries Associations for setting up

specialized training Centre in the areas of marine

engineering, mining, specialized pipe laying, logistic and

services etc. and other advanced technology and management

courses to the extent of 50% of the project cost covering

building, equipment and machinery excluding land cost with a

ceiling of INR 20 Million

Industry Partner could run the courses fromexisting courses with addition of certain subjects.Alternatively new course can be started as per thespecific requirements by industry in existingITI/Polytechnic/ Engineering Colleges.

Assistance @ 75% cost of machinery and equipment upto INR 10 Million contributed jointly by DTE/DET/IC. Industry partner/industries Association / institutes to

contribute rest of the amount and provide infrastructurefacilities in the form of land and building. Institutional Management Committee (IMC) to monitor

and run the course

Enhancement of Technical Competence and Man Power

Resolution No. CED-112007/ 2081(1)/IDt. 27/02/2009

41

Mission Mangalam (Under Gujarat Livelihood Promotion Company Ltd.)

Integrated poverty alleviation approach in a demand driven convergence mode

Single platform for stakeholders like Banks, Industry Partners, Micro Finance Institutes and Skill Imparting Institutions, etc.

Financial Literacy Universalization of SHG(s) Setting up MIS and innovative monitoring

Systems

Around 24 lakh women are currently active under 2 lakh Sakhi Mandals / Self Help Groups (SHGs) in the state, managing aroung INR 10 Billion through bank linkage.

CurrentStrength ofSelf Help Groups

Single Platform for Stakeholders

Approach

Further GrowthStrategy

Missio

n M

an

galam

Gujarat’s most precious resource is 'people' and

their potential to work towards collective

betterment of the state and eventually the nation.

Poverty becomes an hindrance for optimum

utilization of this resource and its potential.

Poverty has numerous manifestations including

low and unreliable income, poor health, low levels

of education and literacy, insecurity and uncertain

access to justice, disempowerment and isolation

from mainstream socio-economic development.

Mission Mangalam, through its multi-dimensional

policies and interventions aims to provide

permanent solutions. It strives to provide options

of income generating opportunities, ready to

access means of production, affordable basic

services and protection of law. Thus, 'Mission

Mangalam' is a complete package with all these

elements incorporated in it.

Sources: http://www.glpc.co.in/

42

FOR ADDITIONAL INFORMATION CONNECT US @

Block No. 1, 2nd Floor, Udyog Bhavan,

Gandhinagar, Gujarat, India - 382 010


Phone: 079-23252683

E-mail: [email protected]

Block No. 4, 2nd floor, Udyog Bhavan,

Gandhinagar, Gujarat, India – 382 010


Phone: 079-23250583

E-mail: [email protected]

Gujarat Industrial Development Corporation

Industries Commissionerate


mailto:[email protected]


mailto:[email protected]

43

Knowledge Partner National PartnerOrganized By

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