vibrant gujarat summit on micro, small and medium enterprise and their economic growth

Vibrant Gujarat

Micro Small and MediumMicro, Small and Medium

Enterprises: Engine of

Modern Economic Growth

Table of ContentsTable 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

E t i (MSME )Enterprises (MSMEs)

1.1. Micro, Small and Medium

E t i (MSME )Enterprises (MSMEs) :

Indian Overview

Micro, Small and Medium Enterprises (MSME) : Overview

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

Micro, Small and Medium Enterprises

( )

Classification of MSME(s)

Enterprises Manufacturing Enterprises:

Service Enterprises:Investment in

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

(MSME) contribute natioanally

• 8 percent of the country’s GDP

• 45 percent of the manufacturing output

Enterprises:Investment in Plant &

Machinery

Investment in Equipment

Micro Up to INR 2.5 Million Up to INR 1 Million

• 40 percent of the exports

• Largest share of employment after

agriculture

Small INR 2.5 Million – INR 50 Million

INR 1 Million – INR 20 Million

Medium INR 50 Million – INR 100 INR 20 Million – INRagricultureMillion 50 Million

5Sources: msme.gov.in

Micro, Small and Medium Enterprises (MSME) : Overview

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%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 Millionp y g

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

4 Rural enterprises ~707,000p ,

About 45.20% of the enterprises were located in rural areas. There are over 6 000 products ranging from traditional to high tech items

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)

are over 6,000 products ranging from traditional to high‐tech items, which are being manufactured by the MSMEs in India.

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%enterprises were 94.94%, 4.89% and 0.17% respectively. This comprises of 67.10% manufacturing enterprises and 32.90% services enterprises.

Proportion of total registered working enterprises

Sector‐Wise Distribution

4.89%

0.17%enterprises

16.1%

67.1%

16.8%

Manufacturing

Service

7Sources: Gujarat Micro, Small & Medium Enterprises Report 2013

94.94%Micro Small Medium

Service

Repairing & Maintenenace

Growth of MSMEs in India

1,800,000

Number of MSME(s) in Registered Sector

1,564,000

1,400,000

1,600,000

818,550

1,101,045

800,000

1,000,000

1,200,000

367,396

581,290

400,000

600,000

800,000

174,319

0

200,000

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

8Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India

MSME Sector: Leading Industries (India)

8.75%

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

Manufacture of Food Products and Beverages

6.94%

3.21%

19.40%Manufacture of Furniture; Manufacturing N.E.C

Manufacture of Fabricated Metal Products, Except Machinery Equipment

2.33%

2.33%

3.64%6.20%

3.77%

q p

Manufacture of Textile

Hotels and Restaurants

3.57%

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

Retail Trade, Except of Motor Vehicles and Motorcycles; Repair of

39.85%

Personal and Household Goods

Other Service Activities

Other Business Activities

9Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India

Other Business Activities

Other

1.2. MSME : Gujarat Scenario

Micro, Small and Medium Enterprises (MSMEs)

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 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

Gujarat MSME Scenerio

0.55

Total MSMEs in Gujarat (in Millions)

Ahmedabad

Jamnagar

2.16 Employment generation in state (in

Rajkot

Surat and Tapi

Vadodara

Bharuch

Bhavnagar

11

Millions)Valsad

Sources: MSME Division: Industries Comissioner Office, Gujarat

MSMEs in Gujarat

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

2000000

2500000

250000

300000

Cumulative Growth of MSME(s) in Gujarat

1500000

2000000

200000

1000000

100000

150000

2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐20140

500000

0

50000

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

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

12Sources: MSME Division: Industries Comissioner Office, Gujarat

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

MSMEs in Gujarat


250000

300000


1500000

2000000

200000

250000

1000000

100000

150000

2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐20140

500000

0

50000



Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958




MSMEs in Gujarat


250000

300000


1500000

2000000

200000

1000000

100000

150000

2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐20140

500000

0

50000



Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958




Sector wise distribution of MSMEs in Gujarat

T t l MSME( )

10271

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

2006‐2014Textiles 69817Machinery and parts except electrical 15443

6981747279

ac e y a d pa ts e cept e ect ca 15443Basic Metal Industries 13153Chemical & chemical Products 5459Rubber & Plastic Products 4916Food Products 4548Electrical Machinery and Apparatus 3832Non‐metallic mineral Products 3764Leather Products 3749

15443

24084

eather Products 3749Paper Products & Printing 3613Mining and Quarrying 2567Wood Products 2175

13153

5459454838323749

36132567

21751746

997

Transport equipment and parts 1746Beverages, Tobacco & Tobacco Products 997Service Activities 24084Trading Activities 47279


5459

4916

45483832

3764

3613 Trading Activities 47279Others 10271

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

Availability of Skilled Man‐power

1140

120

6610Sectorwise total number of seats in Degree Colleges,

• 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

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

118

72

71844

10017

55612345 Gujarat, 2013

In 2001, Gujarat had 11 Universities which has increased to 48 in2013

• 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

30

8

2105

71844Educational Infrastructure

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 forit lf i th l b l k l d i t i th 21 t t

76

8

18

69308

Sectorwise

itself 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

Engineering Diploma EnggPharmacy Diploma PharmaArch. And Allied Hotel and tourismMBA MCA

Sectorwise number of Degree Colleges, Gujarat, 2013

industry responsive manpower. Currently Gujarat has 738 ITI(s) with a total seats of 149,545 Seats

Sources: Directorate of Technical Education, Gujarat

16

NID

MSME Clusters in Gujarat

Th G t h id tifi d t t l f 106 d t l t i• The Government has identified a total of 106 product clusters in

Gujarat 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 MSMEsaccording to the Fourth Census of MSMEs

• State ranks 1st in integrated overall performance of MSMEs at

National Level, as per ISED Small Enterprise Observatory

• The State Government has taken initiatives to extend support for• The State Government has taken initiatives to extend support for

strengthening clusters through interventions such as

1. technology up‐gradation

2 quality improvement2. quality improvement

3. setting up of common facility centers

4. skill development facilities, etc.

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

• Out of the total number of working

enterprises, 56.13% are located in the clusters

with an employment Contribution of 48.92% of5. active assistance of R&D institutions, as well as industry

associations

• Micro and Small Enterprises ‐Cluster Development Program (MSE‐

CDP) is being implemented for holistic and integrated

the total MSME employment.

• Out of the total gross output in the MSME

sector, the contribution of clusters is 45.84%.

17

) g p g

development of micro and small enterprises in clusters.• 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

Product Clusters in Gujarat

Plastic Products

Paper Products

Chemical Industry

Engineering

Textile Industry

Food Products

Mineral Products

18

Others

Mineral Products

Sources: Gujarat Micro, Small & Medium Enterprises Report 2013

1.3. MSME : District‐wise Detail

19

Ahmedabad

Dyes and Chemicals

Textile Machinery

Pharmaceutical Machinery

Moulded Plastic Products

Ahmedabad

Moulded Plastic Products

Readymade Garments

Diamond Processing

Machine ToolsDid You Know?

Castings & Forging

Steel Utensils

Wood work and Furniture

Paper Products

Ahmedabad is

known as the MSME Number of SSI(s) &MSME(s) 64836 (SSI)

266911 MSME(s)

Number of Industrial Estates ‐GIDCs 13 Paper Products

Leather Footwear

Washing Powder & Soap

Marble Slabs

Capital of GujaratNumber of Industrial Estates GIDCs 13

Number of SEZ(s) 12

Number of Industrial Parks 10

Number of private industrial co‐opestates

70Special Transport Facilities

Power driven Pumps

Auto Parts

Electronic goods

estates

Number of Clusters 8

Number of ITI(s) 61

Major Ports Kandla, Mundra,Vadinar

Facilities• BRTS Mass

Transport• Expressway Fast

Transport

20

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

VadinarTransport


Rajkot and Morbi

Diesel Engines and parts

Submersible Pumps

Gold and Silver Jewelry

Morbi

Gold and Silver Jewelry

Salt Processing

Electronic

Did Y K ?

Rajkot

Watches and Clocks

Oil Mills

Textile Printing

Did You Know?

Rajkot is one of the most competitive d i i

Clay Floor Tiles

Electric Motors

Casting and Forging

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

20,832

Number of Industrial Estates 16


production centre in India offering

engineering services and is known as

“M f i H bCasting and Forging

Machine Tools

Diamond Processing

Number of ITI(s) 25

Nearest Port Navlakhi

“Manufacturing Hub of Gujarat”

21

Paper ProductsAirport: Rajkot Domestic Airport


Surat and Tapi

Paper ProductsPaper Products

Diamond Cutting and Polishing

Textile

Powerlooms

Zari

Wood Products and Furniture

Rubber, Plastic and its Products

EngineeringDid Y K ?

Surat Tapi

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

Number of Industrial Estates 11 Govt.15 Private

EngineeringDid You Know?

Surat accounts f f

Indian Diamond Institute

Provides training,

consultancy and R&D15 Private

Number of SEZ(s) 5



for about 80 % of total diamond

processing done in India, thus giving it

h f

consultancy and R&D

Services in diamonds,

coloured gemstones

and machine cast jewellery

Number of ITI(s) 48

Nearest Port Magdalla & Hazira

the name of‘The Diamond City’ Man Made Textile Research

Association (MANTRA)

Provides R & D, Testing,

Technical and Quality

22

Airport: Surat Airport; Lies in Influence area of DMICTechnical and Quality

Control Services


Vadodra and Chhota Udaipur

General Engineering

Pharmaceuticals (Bulk Drugs)ChhotaUdaipur

Plastic Processing

Wood Work and Furniture

Textile

Did You Know?

VadodaraUda pu

Textile

Glass

Cotton

The city is on the major rail and road arteries joining

Mumbai with Delhi

Tobacco

Fertilizer

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


Number of SEZ(s) 3

and Mumbai with Ahmedabad. Because of this

Vadodara is known

Fisheries

Dairy


Number of ITI(s) 48

as a ‘Gateway to theGolden Corridor’

23

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


Bhavnagar

Ship Breaking

Steel Re-rolling

Bhavnagar

g

Machine Tools

Pl ti P i

Did You Know?

Plastic Processing

Diamond Processing

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

~15,000

Employment Generated >100,000

Alang & Sosiya Ship

Breaking Yard are

Asia's Biggest Ship

Salt Processing Number of Industrial Estates 10 GIDC5 Private

Number of ITI(s) 28

P t( ) Bh

Breaking Yards. These

are now on a fast

paced growth towardsPaper Products

Wood Products

Port(s) Bhavnagar

Bhavnagar contributes to 90 per cent of Magnesium Hydroxide production tin India

paced growth towards

Ship Making &

Recycling Textile Industry

Chemical Industry

Engineering

24

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


Porbandar and Junagadh

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

SSI : 1725MSME: 628


Total number of Industrial 2

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

SSI : 7181MSME: 1352

Clusters

Number of ITI(s) 3Junagadh

Porbandarg



Total number of Clusters 4

N b f ITI( ) 63Number of ITI(s) 63

Ports Veraval Port

Machine Tools ChemicalsDid You Know?

Seafood products

Cement

Food Products

Glass and CeramicsJunagadh is famous in thecountry for production ofmango, mango basedproducts which is being

Paper Products

Engineering

25

p gexports in various countries


Jamnagar and Devbhoomi Dwarka

Number of SSI(s) & MSME(s) in Jamnagar and Dwarka Bhoomi

5640

Number of GIDC Industrial Estates

11

Number of SEZ(s) 1Number of SEZ(s) 1


Number of ITI(s) 15

Ports Bedi Port, OkhaP t Sikk P t

Jamnagar

Devbhoomi Dwarka

Port, Sikka Port, Pindara Port, Salaya Port

Airport Jamnagar Domestic Airport

Brass Articles Paper Products

Did You Know?

Brass metal parts cluster in

f Wood Products

&Furniture

Food Products

Textile

Mineral Products

Engineering

Jamnagar is famous

worldwide for its wide

variety and quality of

26

Chemicalproducts


Bharuch and Valsad

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

SSI: 11,991MSME: 5456

Number of GIDC Industrial Estates

12Estates

Number of SEZ(s) 8

Number of ITI(s) 9

Nearest Ports Dahej

Bharuch

Nearest Airport Vadodara

Dahej has been identified as a thrust area for largescale industrial development by the Government ofGujarat Valsad

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

4634

j

Lies in the Influence Area of DMIC

ChemicalsPetrochemicalValsad



Number of ITI(s) 5

Paper & Pulp Industry

Textile

Pharmaceutical

Textile

27

Lies in the Influence Area of DMICWood ProductsLight Engineering


Government Organizations for Assistance and Promotion of MSME(s)

■ Promotes industrial development by bringing about industrial reforms

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

IndustriesCommissionerate

(IC)http://ic.gujarat.gov.in/

■ 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

IndustrialExtension Bureau(iNDEXTb)

http://www.indextb.com/

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

G j t I d t i l ■ 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‐

Gujarat Industrial Development Corporation(GIDC)

28

specific estates in tune with the changing economic and industrial scenario

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

Institutes for Assistance to MSME(s)

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 and

Micro, Mediumand SmallIndustriesDevelopment Silvassa and one Field Testing Station, Ahmedabad, serves the small scale industries in these

areashttp://www.msmediahmedabad.gov.in/

DevelopmentInstitute

■ 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

EntrepreneurshipDevelopmentInstitute of India appropriate financial intermediation

http://www.ediindia.org/

Institute of India

T d l t i t t t b d l th t th t t th i■ 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

Center for Entrepreneurship Development (CED)

29

establish his own venture and manage it successfully

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


Government Supported Institutes for Assistance to SME(s)

Gujarat Industrial and Technical Consultancy Organization Limited (GITCO)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.in

Indo 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.in

Central 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 termCIPET 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

B id R h PERD C t id f th lit i t th i d t i th f


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

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

1288615000

MoU(s) Signed in Previous Versions of Vibrant Gujarat

1921

4494

15813060

8863

5000

10000

0

2009 2011 2013

N b fP j t Si dNumber ofProjects Signed

Number of Projects Comissioned or Under Implementation

Year Number of MoU(s) d

Projects Commissioned Projects under lSigned Implementation

2009 1921 1558 23

2011 4494 2851 209


2013 12886 4848 4015

1.4. Government Schemes for

MSME( )MSME(s)

32

Assistance to Micro Small and Medium Enterprises

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.

d d b d f

Venture capital assistance through Banks/FIs for projects adopting innovative technology such as Technical textile

Reimbursement @50% of fees, subject to maximum of INR 5000 per person for a minimum one week

Quality Certification

Assistance for maximum 3 quality certifications @ 50% of expenditure subject to overall ceiling of INR

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

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

a minimum one week training for skill upgradation conducted by institutions suggested by Anchor Institute or specialized institutions in a specific sector for a

overall ceiling of INR 600,000 in five years

Expenditure includes fees charged by certification agencies, cost of testing equipment, calibration Woman entrepreneurs accorded priority.

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

period of the scheme specific sector for a minimum batch size of 25 trainees

Technology Acquisition Fund

charges, consulting fees and training charges

Support to R&D Institutions Patent Assistance Energy and water conservation

Assistance for technology acquisition in any form for group of at least 10 MSMEs for specific product/process, by way of

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 d b ildi

Assistance @ 50%. subject to max. INR 1 Million towards necessary expenditure for obtaining domestic patents and INR 2.5 Million for

gy

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

In addition, assistance of 20% of cost of eq ipment s bject to50% grant, subject to max.

INR 10 Million/ technology including royalty payments for first 2 years

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

obtaining international patents subject to maximum 5 patents per unit over a period of 5 years

cost of equipment subject to max. INR 1 Million in a project

Priority for group of units/clusters

33Resolution No. MSM/102009/57928/IDate: 27/2/2009Extension GR: MSM‐10‐2013‐2070‐I (28/1/2014)

Sources: ic.Gujarat.gov.in

approved technical colleges, @50% of project cost with a ceiling of INR 5 Million.


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%

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

i f f 3p p

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/

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 i d t i l kexhibition 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

industrial park

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

S t t A ili i d t iSupport to Auxiliary industries for value addition

Large units producing raw materials and promoting auxiliary MSME units to be encouraged to develop

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 extensionencouraged to develop

industrial park for accommodating min. 20 units.

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

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 constitutedCl t t b li ibl f ti l fi i l i t il bl d iti l i f t t h

34Resolution No. MSM/102009/57928/IDate: 27/2/2009Extension GR: MSM‐10‐2013‐2070‐I (28/1/2014)


10 Million 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.


Awards to best MSMEs

Separate awards to Micro, Small and

Medium category

Rehabilitation of Sick Units

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

Three awards in each category

o Growth in production and profit

o Quality and Environment

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 f dd l f f

Promotion of Specific Sector

improvement measures

o Innovation in technology for new

product or process development

Award in the form of INR 100 000 cash and

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

O h i ki i k i f h bili i

Specific Sector

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

Award in the form of INR 100,000 cash and

appreciation letter

Awardees are to be given priority in

participation in International Seminars

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

Eligibility for Quantum Assistance

All eligible MSME can avail incentives Independent Credit Rating agency to be

appointed to select the best performing

MSMEs in the above categories

Nominations to be encouraged from

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

35

Nominations to be encouraged from

Industries Associations

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


y p p

specific category of incentive.

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 weavingthe 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.

Refund of VAT paid by unit on purchase of intermediate product/raw material except for certain goods and certain transactions which

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/

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

Scheme 1

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

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

36

from the state electricity / power distribution licensee will eligible for this relief

whichever is earlier.

The concession will be available within 8 years from the date of the production.Resolution No. TEX/102012/65117/T Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in


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.Scheme-2 ■ 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 ofScheme 3 ■ 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

37

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

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


Textile & Apparel Park

Scheme‐7 Support for Establishing Textile and

Apparel park

Training Support

Scheme‐5 Assistance for Apparel training Institutions and Trainees

Autonomous institutions promoted by 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

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

land cost

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

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

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

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‐activities to support spinning activities.

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

Stipend of INR 2,500 per trainee to trainees of powerloom 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 f d

38

of six days. No allowances will be given to Power loom Owner

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

Assistance to Manufacturing Sector

Govt. of Gujarat Introduced following schemes for 5 Manufacturing Sectors namely Auto & Auto Components, Solar & Wind Equipment

Interest Subsidy

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

Assistance for Centre of Excellence

Go t. o Guja at t oduced o o g sc e es o 5 a u actu g Secto s a e y uto & uto Co po e ts, So a & d qu p e tmanufacturing, Specialty & fine chemicals, Electronic System design & manufacturing and Food & Agro Business.

Assistance for Core Infrastructure

■ This assistance will be for enabling basic infrastructure facilities.

■ The expenditure incurred for the core infrastructure

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

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

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

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

dit f th th li it d t INRregistration 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.

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

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

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.

39

■ 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.

■ 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

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

Improving Industrial Infrastructure

Assistance to be considered for Upgrading infrastructure facilities as

may be required in an industrial estate/ clusters/industrial area.

Additional infrastructure facilities. Upgradation of infrastructure facilities

Assistance to Industries Associations / Industrialhouses or Institutions for setting up industrial parkin PPP mode.

Industrial park must have basic infrastructure

I i

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 100h t d INR 200 Milli f

pfacilities to be classified into C, B & A categoriesdepending upon the minimum infrastructurefacilities.

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

Additional Assistance upto 20% may be providedby the Central Government

Improving Industrial

Infrastructure

hectares and INR 200 Million for area morethan 100 hectares

The promoter is to contribute 20% of equity inthe project.

Last mile connectivity project to the industrialpark / area having more than 25 hectares to beconsidered.

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.

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

Industrial Parks/Estates shall have minimum of 30 industrial units in at least an area of 100acres.

Industrial Parks/Estates must have basic infrastructure facilities required like developed plot,internal roads, water distribution , communication facilities and such other facilities/servicesas may be required.

The Industrial Park/Estate will be provided an assistance of INR 100 Million for linkinfrastructure.

Th d l f h i d i l k ill b li ibl f i f

40

The developer of the industrial park will be eligible for exemption on payment of stampdusty on purchase of land required for the project. Industrial units are required to pay stampduty at the rate of 50% of the duty

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

Assistance for Environment Protection Measures

Assistance for encouraging green practices and Environmental Audit

to MSMEs

Assistance Environment Management to MSMEs

• Substitution & Optimization of raw material including catalysts 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 f di i i INR 25 000/ i

Assistance for Environment Protection

Measures‐MSME

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

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 lifetimeMeasures‐MSME

Units• 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

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 per• Implementation of cleaner production and

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

equipment 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

41Resolution No. BGT/1008/499(1)‐G and BGT/1008/499(2)‐GDt. 11/06/2009 Sources: ic.Gujarat.gov.in

Enhancement of Technical Competence and Man Power

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,

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 expensesto Anchor and Nodal Institutes.

75% in industrial cluster and

50% in industrial Parks/ SEZs

with a ceiling of INR 10 Million for each

E t i C t t d t f M hi d

Anchor Institute to actively involve industries andprovide technical support to the technical educationalinstitutions for shop floor workers, supervisory andmanagerial level training. The total financial assistance under both capital

d ill t d INR 100 Milli iExtension Centre towards cost of Machinery and

equipment

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

Assistance to Institutes / Universities/ Industry Partner could run the courses fromAssistance to Institutes / Universities/

Industries / Industries Associations for setting up

specialized training Centre in the areas of marine

engineering, mining, specialized pipe laying, logistic and

existing 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/ICservices 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

to INR 10 Million contributed jointly by DTE/DET/IC. Industry partner/industries Association / institutes tocontribute rest of the amount and provide infrastructurefacilities in the form of land and building. Institutional Management Committee (IMC) to monitorand run the course

42Resolution No. CED‐112007/ 2081(1)/IDt. 27/02/2009

Mission Mangalam (Under Gujarat Livelihood Promotion Company Ltd.)

Integrated poverty alleviation approach in a demand driven convergence mode Approach

Gujarat’s most precious resource is 'people' and

their potential to work towards collective

betterment of the state and eventually the nation.

Single platform for stakeholders like Banks, Industry Partners, Micro Finance Institutes and

Single Platform for

Mission M

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 Skill Imparting Institutions, etc. Platform for Stakeholders

angalam

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. 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

p

Mission Mangalam, through its multi‐dimensional

policies and interventions aims to provide

permanent solutions. It strives to provide options

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

Systems

Further GrowthStrategy

of income generating opportunities, ready to

access means of production, affordable basic

services and protection of law. Thus, 'Mission

M l ' i l k i h ll h

43

Mangalam' is a complete package with all these

elements incorporated in it.

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

FOR ADDITIONAL INFORMATION CONNECT US @

Industries Commissionerate

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

Gandhinagar, Gujarat, India ‐ 382 010

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

Phone: 079 23252683Phone: 079‐23252683

E‐mail: [email protected]

Gujarat Industrial Development Corporation

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

Gandhinagar, Gujarat, India – 382 010

h // id i /http://www.gidc.gov.in/

Phone: 079‐23250583

E‐mail: [email protected]

44

Knowledge Partner National PartnerOrganized By

Visit us at www.vibrantgujarat.com

45

vibrant gujarat summit on micro, small and medium enterprise and their economic growth

Economy & Finance