MSME AR 2017 18 Eng

Annual Report
2017-18
Government of India
Ministry of Micro, Small and Medium Enterprises
Udyog Bhavan, New Delhi – 110011
website: www.msme.gov.in
Annual Report 2017-18 i

CONTENTS
Page No.
1. Introduction 1-21
1.1. Background 1
1.2. Mandate of the Ministry of MSME 2
1.3. Organisational structure 3
1.4. Recent Policy Initiatives 9
2. Overview and Performance of MSME Sector 22-38
2.1. Role of MSMEs in Indian Economy 22
2.2 Performance of the MSME Sector 23
2.3 Key Results of NSS 73rd Round Survey (2015-16) on Micro, Small and Medium 24
Enterprises
2.4 Comparative Analysis between Fourth All India MSME Census (2006-07) and 31
NSS 73rd Round (2015-16)
2.5 Registration of New MSMEs 33
3. Statutory bodies, and other bodies under the MSME Ministry 39-68
3.1. Khadi Village Industries Commission (KVIC) 39
3.2. Coir Board 51
3.3. National Small Industries Corporation Limited (NSIC) 58
3.4. Mahatma Gandhi Institute of Rural Industrialisation (MGIRI) 63
3.5. National Institute for Micro, Small and Medium Enterprises (NIMSME) 66
4. Major Schemes 69-80
Targeted activities for the North-Eastern region, women, disabled persons, and 81-90
5.
International cooperation
5.1 Activities for the North Eastern Region 81
5.2 Activities targeted at the welfare of women 84
5.3 Welfare for Persons with disabilities 88
5.4 International Cooperation Scheme 88
6 General statutory obligations 91-96
6.1 Official Language 91
6.2 Vigilance 93
6.3 Citizen Charter 94
6.4 Right to Information 95
6.5 Prevention of Sexual Harrasment 95
Annexures 97-104
1. Plan Allocation and Expenditureduring 2014-15 to 2017-18 97
2. List of Nodal CPIOs 98
3. Contact Addresses of the Offices of Ministry of MSME and its Statutory Bodies 100
4. State-wise List of MSME Dis and Branch MSME DIs 101
Annual Report 2017-18 iii

Chapter-I
Introduction
Minister of State for Micro, Small & Medium Enterprises (I/C), Shri Giriraj Singh lighting the lamp to inaugurate the
MSME pavilion, at the 37th India International Trade Fair (IITF), at Pragati Maidan, in New Delhi on November 14, 2017.
The Secretary, MSME, Shri Arun Kumar Panda and other dignitaries are also seen.
1.1 Background
1.1.1 The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and
dynamic sector of the Indian economy over the last five decades. It contributes significantly
in the economic and social development of the country by fostering entrepreneurship and
generating largest employment opportunities at comparatively lower capital cost, next only
to agriculture. MSMEs are complementary to large industries as ancillary units and this
sector contributes significantly in the inclusive industrial development of the country.The
MSMEs are widening their domain across sectors of the economy, producing diverse range of
products and services to meet demands of domestic as well as global markets.An overview
of the growth and performance of MSME Sector in the country is provided in Chapter 2.
1.1.2 Ministry of Micro, Small & Medium Enterprises (M/o MSME) envisions a progressive MSME
sector by promoting growth and development of the Sector, including Khadi, Village and
Coir Industries, in cooperation with concerned Ministries/Departments, State Governments
and other Stakeholders, through providing support to existing enterprises, adopting cutting
Annual Report 2017-18 1

edge technologies and encouraging creation of new enterprises. The organization chart of
the Ministry is givenin paragraph 1.3.9 while the details of the recent policy initiatives of the
Ministry are provided in Paragraph 1.4.
1.1.3 A number of statutory and non-statutory bodies work under the aegis of the Ministry of
MSME. These include the Khadi Village Industries Commission (KVIC) and the Coir Board
besides National Small Industries Corporation (NSIC), National Institute for Micro, Small and
Medium Enterprises (NIMSME) and Mahatma Gandhi Institute for Rural Industrialisation
(MGIRI). Details about the mandate and performance of these bodies are provided in Chapter
3.
1.1.4 The Ministry of MSME runs various schemes aimed at financial assistance, technology
assistance and upgradation, infrastructure development, skill development and training,
enhancing competitiveness and market assistanceof MSMEs. A detailed list of schemes is
provided in Chapter4.
1.1.5 The Ministry is committed towards an agenda of inclusive development, and has taken
various initiatives and measures to ensure that demographically as well as geographically
weaker sections benefit from its work. A summary information on such initiatives is given in
Chapter 5.
1.2 Mandate of the Ministry of MSME

1.2.1 On 9 May 2007, the erstwhile Ministry of Small Scale Industries and the Ministry of Agro and
Rural Industries were merged to form the Ministry of Micro, Small and Medium Enterprises
(M/o MSME). The Ministry designs policies, promotes/ facilitates programmes/ projects/
schemes and monitors their implementation, with a view to assisting MSMEs and helping
them to scale up.
1.2.2 The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006
to address different issues affecting MSMEs inter-alia the coverage and investment ceiling of
the sector. The MSMED Act seeks to facilitate the development of these enterprises as also
enhance their competitiveness. The MSMED Act has the following key provisions:
- Establishment of a National Board for Micro Small and Medium Enterprises headed
by the Minister for MSME. The role of the Board is to examine the factors affecting
the promotion and development of MSMEs, review the policies and programmes of
the Central Government and make recommendations in regard to facilitating the
promotion and development and enhancing their competitiveness.
- It provides the first-ever legal framework for recognition of the concept of “enterprise”
which comprises both manufacturing and service entities. It defines medium
enterprises for the first time and seeks to integrate the three tiers of these enterprises,
namely, micro, small and medium.
2 Annual Report 2017-18

- It empowers the Central Government to undertake programmes and issue guidelines
and instructions to develop and enhance the competitiveness of MSMEs.
1.2.3 Definitions of Micro, Small & Medium Enterprises :In accordance with the provision of
Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and
Medium Enterprises (MSME) are classified as below:
Manufacturing Sector
Enterprise Category Investment in plant & machinery
Micro Enterprises Does not exceed twenty five lakh rupees
Small Enterprises More than twenty five lakh rupees but does not exceed five
crore rupees
Medium Enterprises More than five crore rupees but does not exceed ten crore
rupees
Service Sector
Enterprise Category Investment in equipment
Micro Enterprises Does not exceed ten lakh rupees:
Small Enterprises More than ten lakh rupees but does not exceed two crore rupees
Medium Enterprises More than two crore rupees but does not exceed five core rupees
1.2.4 The primary responsibility of promotion and development of MSMEs is of the State
Governments. However, the Government of India, supplements efforts of the State Governments
through various initiatives. The role of the Ministry of MSME and its organisations is to
assist the States in their efforts to encourage entrepreneurship, employment and livelihood
opportunities and enhance the competitiveness of MSMEs in the changed economic scenario.
1.3 Organisational structure

1.3.1 The Ministry of MSME consists of Small & Medium Enterprises (SME) Division, Agro & Rural
Industry (ARI) Division, Integrated Finance (IF) Wing and Data Analytics and Technical Co-
ordination (DATC) Wing, besides the Office of the Development Commissioner (DCMSME) as
an attached office and other subordinate organisations.

The Hon’ble Vice President, Shri Venkaiah Naidu, the Minister of State for Micro, Small & Medium Enterprises (I/C), Shri
Giriraj Singh and other dignitaries at the National SC-ST Hub Confluence in New Delhi on September 20, 2017
1.3.2 SME Division - The SME Division is allocated the work, inter-alia, of administration, vigilance
and administrative supervision of the National Small Industries Corporation (NSIC) Ltd., a
central public sector enterprise and National Institute of Micro, Small & Medium Enterprises
(NIMSME) an autonomous national level entrepreneurship development/ training
organizations. The Division is also responsible for implementation of the schemes relating to
National SC-ST Hub, Performance and Credit Rating and Assistance to Training Institutions,
among others. Further, the Division has the responsibility to deal with applications received
under Public Grievances through CPGRAMS and under the Right to Information Act, 2005. The
SME Division also deals with the work relating to preparation of Ministry’s media campaign
for promotion of schemes and its implementation by issue of advertisement in electronics
and Print Media besides promotion of schemes of the Ministry through Social Media.
1.3.3 ARI Division - The ARI Division looks after the administration of two statutory bodies - the
Khadi and Village Industries Commission (KVIC) and Coir Board and also of the Mahatma
Gandhi Institute for Rural Industrialisation (MGIRI). It also supervises the implementation
of the Prime Minister’s Employment Generation Programme (PMEGP), the Scheme of Fund
for Regeneration of Traditional Industries (SFURTI) and A Scheme for Promoting Innovation,
Rural Industry and Entrepreneurship(ASPIRE).
1.3.4 IF Wing - IFW examines the various proposals received from the Programme Divisions of
Ministry and the O/o DC(MSME) for (i)concurrence of release of funds under various schemes;
(ii) furnishing comments on EFC/SFC for the Schemes to be continued beyond 12th Five
Year Plan and convene the EFC/ SFC meetings. The Wing also examines other miscellaneous
matters relating to signing of MoU/ other Agreements/ Contracts etc.
1.3.5 DATC Wing – This is a newly created wing to undertake analyses of data/ statistics related to

the MSME Sector and provide technical inputs for evidence based decision making pertaining
to MSME Sector.Technical coordination with all stakeholders towards development and
maintenance of MSME databases;Co-ordinating the complete compliance of the directives
for the Direct Benefit Transfer (DBT) schemes of the Ministry;Implementing promotion of
Digital Payment in the Ministry and managing the IT Cell of the Ministry are some of its other
important activities.
1.3.6 Office of the Development Commissioner
1.3.6.1Development Commissionerate implements the policies and various programmes/ schemes
for providing infrastructure and support services to MSMEs. The Office of the Development
Commissioner [O/o DC (MSME)] is an attached office of the Ministry, headed by the Additional
Secretary & Development Commissioner (AS & DC), MSME. It functions through a network of
MSME-Development Institutes (DI), Regional Testing Centres, Footwear Training Institutes,
Production Centres, Field Testing Stations and specialized institutes. It renders services such
as:
- Advising the Government in Policy formulation for the promotion and development of
MSMEs.
- Providing techno-economic and managerial consultancy, common facilities and
extension services to MSME units.
- Providing facilities for technology upgradation, modernization, quality improvement
and infrastructure.
- Developing Human Resources through training and skill upgradation.
- Providing economic information services.
1.3.6.2 Technology Centres (Earlier known as Tool Room & Technical Institutions)
To provide right stimulus to the growth of industry in the country – particularly to micro,
small and medium enterprises, Ministry has established Technology Centers across India,
many of them through bilateral collaboration of the Governments of Germany & Denmark and
the United Nations. These were earlier known as Tool Rooms and Technology Development
Centers. Following is the list of the existing MSME Technology Centres:
1. Central Tool Room & Training Centre (CTTC), Kolkata
2. Central Tool Room (CTR), Ludhiana
3. Indo German Tool Room (IGTR), Indore
4. Indo German Tool Room (IGTR), Ahmedabad
5. Indo German Tool Room (IGTR), Aurangabad
6. Indo Danish Tool Room (IDTR), Jamshedpur

7. Central Tool Room & Training Centre (CTTC), Bhubaneswar
8. Tool Room & Training Centre (TRTC), Guwahati
9. Central Institute of Hand Tools (CIHT), Jalandhar
10. Central Institute of Tool Design (CITD), Hyderabad
11. Electronics Service & Training Centre (ESTC), Ramnagar
12. Institute for Design of Electrical Measuring Instruments(IDEMI), Mumbai.
13. Fragrance &Flavour Development Centre (FFDC), Kannauj.
14. Centre for Development of Glass Industry (CDGI), Firozabad.
15. Process & Product Development Centre (PPDC), Agra.
16. Process cum Product Development Centre (PPDC), Meerut.
17. Central Footwear Training Institute (CFTI), Agra
18. Central Footwear Training Institute (CFTI), Chennai
Out of 18 Technology Centres (TCs), the first 10 TCs (earlier known as Tool Rooms) provide
technological support to industries through design & manufacture of tools, precision
components, moulds, dies, etc. These TCs also serve industry by providingskilled manpower
in the areas of tool engineering & manufacturing sector. Today, these TCs are highly proficient
in their respective fields.
MSME-TC, Aurangabad
JEEP-Developed 217 tools for 62 components

Ministry has supported these centers by keeping them relevant and abreast with latest
advancements in their respective fields and has periodically added new technologies such
as CAD/CAM, CNC machining, vacuum heat treatment, 3D Printing etc. These TCs are
concentrating on integrated development of the related segments of industries by providing
quality tools, trained personnel and consultancy in tooling and related areas.
The remaining Technology Centres, (earlier known as Technology Development Centres) are
product specific Centres to support MSMEs in the respective sectors by rendering technical
services to develop and upgrade technologies, processes and products apart from training
in the specific product groups such as Forging &Foundry, Electronics, Electrical Measuring
Instruments, Fragrance &Flavour, Glass, Footwear &Sport Goods.
The Technology Centres apart from extending design, development & manufacturing support
to MSMEs for complex tools, parts and components have also supported the strategic sectors
such as Defence, Aerospace etc. of the country towards their R&D requirements.
MSME-TC, Bhubaneswar
Developing components for Moon Mission
The Technology Centre’s philosophy of integrated solutions for growth of industries is

based on the provision of well structured, modular, hands on practically oriented training
programmes. All courses are regularly updated to keep abreast with global technological
advancements. The intake eligibility for the training programmes ranges from school dropout
to M-Tech level. Various levels of courses, viz., certificate, diploma, advanced diploma, post
diploma, post graduate diploma and post graduate courses offered by Technology Centres
are well accepted by the industries, which is evident from nearly 80% placement of its long
term trainees. A number of passed out trainees have also established their own enterprises
thereby contributing to the social and economic development of the country.

CNC Training Section: MSME TC Aurangabad
Apart from assisting State Governments for setting up of Technology Centres,

MSME- Technology Centres have also successfully executed international assignments
for setting up Technology Centres and Vocational Training Centres as well as training of
trainers for developing countries like Zimbabwe, Myanmar, Sri Lanka, Tajakistan etc.
All the Technology Centres adhere to the principles of Total Quality Management (TQM).
They are ISO 9001-2000 certified institutions and a few of them are ISO-14001,
OHSAS-18001, ISO-29990, ISO/IEC17025:2005 and ISO-50001 certified. Central Tool
Room & Training Centre, Bhubaneswar is also AS-9100 certified for Aero-space Component
Supply.
1.3.7 Other important implementing agencies are the National Small Industries Corporation
(NSIC), Khadi and Village Industries Commission (KVIC), the Coir Board, and one training
institute viz., National Institute for Micro, Small and Medium Enterprises (NI-MSME),
Hyderabad and Mahatma Gandhi Institute for Rural Industrialization (MGIRI), Wardha - a
society registered under Societies Registration Act, 1860.
1.3.8 The National Board for Micro, Small and Medium Enterprises (NBMSME) was established
by the Government under the Micro, Small and Medium Enterprises Development Act, 2006
and Rules made thereunder. It examines the factors affecting promotion and development
of MSMEs, reviews existing policies and programmes and makes recommendations to the
Government in formulating the policies and programmes for the growth of MSMEs.
1.3.9 The organisational structure of the Ministry is depicted in the following

organogram:

1.4 Recent Policy Initiatives.
1.4.1 Ease of Registration Process of MSMEs- Udyog Aadhaar Memorandum –
1.4.1.1 Based on the Hon’ble Prime Minister’s suggestion in his ‘Mann Ki Baat’ on 3.10.2014, to
simplify forms to enable ease of registration of MSME’s, Ministryof MSME has notified a
simple one-page registration form ‘Udyog Aadhaar Memorandum’ (UAM) on 18th September
2015. The simplified one-page registration form UAM was made after consultations with the
states and stakeholders, on the basis of recommendations made by the Kamath Committee
on Financial Architecture and observations/approvals by Department Related Parliamentary
Standing Committee, National Board for MSME and Advisory Committee for MSMEetc.
1.4.1.2 This is a path breaking step to promote ease-of-doing-business for MSMEs in India as the
UAM replaces the filing of Entrepreneurs’ Memorandum (EM part-I & II) with the respective
States/UTs. The entrepreneurs in the MSME sector just need to file online, a simple one-
page UAM on http://udyogaadhaar.gov.in to instantly get a unique Udyog Aadhaar Number
(UAN).The information sought is on self-certification basis and no supporting documents
are required at the time of online filing of UAM. Revised notifications were also issued on
10.01.2017 and 30.06.2017 for inclusion of new features including amendment provisions.

1.4.1.3 More than 38.95 lakhUAMs have been filed since September 2015upto December 2017. The
filing of the UAMs has also significantly increased the information available with the Ministry
of MSME regarding the trends in the sector and enhanced its capability to monitor trends
within sub-categories within the MSME sector, such as manufacturing, services, enterprises,
employment trends, and investment details.
1.4.2 Framework for Revival and Rehabilitation of MSMEs
In order to provide a simpler and faster mechanism to address the stress in the accounts of
MSMEs and to facilitate the promotion and development of MSMEs, the Ministry of Micro,
Small and Medium Enterprises, Government of India, vide its Gazette Notification dated May
29, 2015 notified a ‘Framework for Revival and Rehabilitation of Micro, Small and Medium
Enterprises’. Reserve Bank of India, after continuous follow up, has also issued guidelines to
the Banks on 17.3.2016. Under these guidelines Banks have created a structure for finalising
corrective action plan for revival & rehabilitation of MSMEs.
1.4.3 MSME Data Bank
For facilitating the promotion and development and enhancing the competitiveness of MSMEs,
the Ministry of MSME vide Gazette Notification No. 750(E) dated 29.07.2016 had notified the
MSME Development(Furnishing of information Rules, 2016) under which all MSMEs are to
furnish information relating to their enterprises online to the Central Government in the data
bank maintained by it at www.msmedatabank.in. This data bank will enable the Ministry
to streamline and monitor the schemes and pass on the benefits directly to MSMEs. It will
also provide the real-time information about the status of MSMEs under various parameters.
Data Bank is helpful to MSME units, who can now update their enterprise information as
and when required without visiting any government office and also update information
about their products/ services, which can be accessed by government departments to do
procurement under Public Procurement Policy of Government of India. More than 1.22 lakh
units have been registered (upto December 2017) under MSME Data Bank since issuance of
its notification.
1.4.4 MyMSME
To facilitate the enterprises to take benefit of various schemes by the Office of Development
Commissioner (MSME), his office has launched a web-based application module, namely,
MyMSME. This has also been converted into a mobile app. Entrepreneurs will be able to
make their applications and track it on their mobile itself.
1.4.5 Direct Benefit Transfer in the M/o MSME
All welfare and subsidy schemes of Governments of India have been brought under Direct
Benefit Transfer (DBT) with the aim of reforming Government delivery system by re-
engineering the existing process in welfare and subsidy schemes, for simpler and faster flow
of funds and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of

fraud. As the nodal point for the implementation of the DBT programmes,DBT cell have been
constituted in the Ministry. In 2017-18 all the 22 schemes of the Ministry of MSME were on-
boarded on DBT Bharat Portal out of which 1 scheme (i.e. TREAD scheme) has subsequently
been wound up.
1.4.5.1 The schemes have been categorized based on the benefit type to the beneficiary’s i.e., Cash,
Kind or Composite (i.e. Cash and Kind). Below is the table showing the DBT schemes of
the Ministry with the benefit type, number of beneficiaries and total funds transferred /
expenditure incurred.
Sl. Name of the Scheme Benefit Type Total no. of Total

No. beneficiaries Expenditure
(till Dec, 2017) (Rs. Lakhs)
(till Dec, ’17)
1 ATI Scheme (Training Component) In Kind 1671 296
2 Marketing Assistance Scheme Cash 334 81.36
3 Coir Udyami Yojana Cash 319 811
4 MPDA Grant To Khadi Institutions Cash 342981 6085
5 Coir Vikas Yojana Cash 1199 32.11
6 SFURTI- SI In Kind 50000 1203
7 PMEGP Prime Ministers Employment
Cash 26072 72073
Generation Programme
8 Credit Guarantee Scheme In Kind 2916910 8200
9 Interest Subsidy Eligibility Certificate
Cash 1305 1314
For Khadi And Polyvastra –ISEC
10 National Awards Cash 50 50
11 MDP-EDP-Skill Development Cash & In Kind 15236 223.53
12 Zero Effect Zero Defect ZED Cash & In Kind 58 1015.24
13 Technology And Quality Upgradation
Cash 1 0
Support Through MSMEs – TEQUP
14 MATU Scheme Excluding Vendor
Development Programme and
Cash 129 50.55
International/NationalWorkshop/
Seminar
15 Credit Linked Capital Subsidy
Cash 4081 283444.16
Scheme CLCSS
16 IPR Building Awareness On
Intellectual Property Rights For In Kind 417 0
MSMEs

Sl. Name of the Scheme Benefit Type Total no. of Total
No. beneficiaries Expenditure
(till Dec, 2017) (Rs. Lakhs)
(till Dec, ’17)
17 Lean Manufacturing Competitiveness
In Kind 1091 321.82
Scheme For MSMEs
18 Design Clinic Scheme For Design
Expertise To Micro, Small And Cash 112 50.53
Medium Enterprises
19 Incubation Centre Support For
Entrepreneurial And Managerial
In Kind 56 80.74
Development Of SMEs Through
Incubators
20 Performance And Credit Rating
Cash 11424 25836.7
Scheme
21 International Co-operation(IC)
Cash 567 2993.7
Schemes
22 Trade Related Entrepreneurship Wound up
Assistance And Development Scheme during 2017-
For Women 18
*The DBT applicable component for the scheme is very minimal and thus the fund transfer is NIL
1.4.5.2 The key performance indicators of DBT are:

 Beneficiary Digitization (including Aadhaar seeding and validation):8 schemes
have completed 100% beneficiary digitization. Rest of the schemes are in the process
of achieving the 100% completion.
 Funds transfer electronically: Funds are being transferred under all schemes
using PFMS and other electronic modes. Hence, 100% electronic transaction is being
achieved.
 Scheme specific MIS Integration with the DBT Bharat portal:The Scheme Specific
Management Information System (MIS) and its integration with DBT Bharat portal is
also in completion stage for all 21 on-boarded schemes.
 Notification of schemes under section 7 / 57 of the Aadhaar act: The issuance of
notification of schemes under section 7/57 of the Aadhaar Act, 2016 is under process.
1.4.6 GST Rollout and Ministry of MSME
Ministry of MSME had made elaborate arrangements for smooth roll out of GST. The following
were taken involving all the stakeholders:

All field organisations under the Ministry, namely, Office of Development commissioner
(Micro, Small and Medium Enterprises), Khadi and Village Industries Commission (KVIC),
National Small Industries Corporation (NSIC), Coir Board, National Institute for Micro, Small
and Medium Enterprises (Ni-MSME), Mahatma Gandhi Institute for Rural Industrialization
(MGIRI) opened GST Cells in their respective offices to provide requisite support to MSMEs
with respect to GST issues. More than 20000 persons have been trained in the various
nuances of GST through workshops by M/o MSME and all its field organizations.
The then Union Minister for Micro, Small and Medium Enterprises, Shri Kalraj Mishra at the National Workshop on GST
Readiness of the Ministry of MSME, in New Delhi on July 13, 2017. The Ministers of State for Micro, Small & Medium
Enterprises(I/C), Shri Giriraj Singh & the then MoS Shri Haribhai Parthibhai Chaudhary and other dignitaries are also
seen.
 A special issue of Laghu Udyog Samachar was brought out fully dedicated to GST
related issues. It is available online at http://dcmsme.gov.in/Laghu Udyog Samachar.
html.
 A GST specific window has already been opened within the Internet Grievance
Redressal System (IGMS) of the Ministry of Micro, Small and Medium Enterprises, an
entry for which is also available at the abovementioned GST-MSME Link http://igms.
msme.gov.in/Mymsme/grievance/COM.
 Ministry set up a 24x7 helpline in NSIC to attend to queries.
 Ministry also conducted a wider consultation workshop with all associations in which,
the sector expert pertaining to MSME of the GST Council made a presentation and
clarified the queries and concerns in FICCI Auditorium on 13.07.2017.

1.4.7 Digital Payments
1.4.7.1 Government of India is making efforts for promoting a less cash economy and to provide the
facility of seamless digital payment to all citizens of India in a convenient manner. Promotion
of digital payments has been accorded highest priority by the Government of India to bring
each and every segment of our country under the formal fold of digital payment services. The
Vision is to provide facility of seamless digital payment to all citizens of India in a convenient,
easy, affordable, quick and secured manner.
1.4.7.2 As a partner in the initiative, Ministry of MSME has taken numerous initiatives to digitally
enable the entire MSME ecosystem. In line with the recommendations of Committee of
Secretaries (CoS) and the guidelines of MeitY, committee on Digital Payments has been
constituted in the Ministry under the Chairmanship of Secretary (MSME) for making the
Ministry and its attached offices to oversee the successful implementation of Digidhan
Mission.
 All the offices of Ministry of Micro, Small and Medium Enterprises, including its
attached offices have been digitally enabled.
 For the MSME registered under UAM, efforts have been made to spread awareness on
the ease and benefits of different modes of payments such as BHIM, UPI and Bharat
QR code.
 For the Ministry and its attached offices (KVIC, Coir Board, NSIC, MGIRI, NIMSME)
89% of the bulk Digital Payment transactions during the current Financial Year were
digitalwhich accounted for more than 99% of total value of the transactions.
1.4.8 Grievance Monitoring
The Ministry attends to all the grievances on Centralized Public Grievance Redress and
Monitoring System (CPGRAMS) and the number of the pending grievance on CPGRAMS as
on 31.12.2017 was 61. The Ministry has started an MSME internet grievance monitoring
system (eSAMADHAN) to track and monitor other grievances and suggestions received in the
Ministry.
1.4.9 MSME SAMADHAAN: To Address Delayed Payment to MSEs
Section 15-24 of The Micro, Small and Medium Enterprises Development (MSMED) Act,
2006 deal with the issues relating to the Delayed Payments to Micro and Small Enterprises
(MSEs) by the buyers to the MSE supplier. In the case of delay in payment beyond 45 days,
MSEs suppliers may approach the Micro and Small Enterprises Facilitation Council (MSEFC)
constituted under the Act in all States/UTs. Under Section 16 of the MSMED Act, delayed
payment to supplier units, attracts compound interest with monthly rests at three times of
the bank rate notified by the Reserve Bank.
To further the objectives of MSMED Act, 2006 Ministry of MSME launched a portal (http://

samadhaan.msme.gov.in/) on 30thOctober, 2017. The portal gives information about
individual CPSEs/ Central Ministries, State Govts. etc. and other buyers regarding the
payments pending with them in respect of the MSEs. The Central Ministries/ State Govt. have
been provided with user-ID and password to login and monitor the delayed payment cases in
respect of organisations under their jurisdiction. The said portal also facilitates MSEs to file
their delayed payments related complaints online. After 15 days of online filing of the case, it
is automatically registered with the MSEFC concerned.
From the date of launch of MSME SAMADHAAN portal, i.e. 30th October 2017, MSEs have filed
2927 applications related to delayed payments. These cases involve an amount of Rs. 744.65
Crore. This portal has also helped in getting the delayed payments getting settled mutually
between seller and buyer. 105 mutual settlements have been done amounting to Rs. 8.87
Crore. Applications are getting converted to cases by MSE-Facilitation Councils in States. 264
applications have been converted to cases by 31.1.2018.This has empowered the MSEs to
file their delayed payments cases directly. This is being monitored by respective Ministries/
CPSEs and State governments.
1.4.10 MSME-SAMBANDH
The Ministry of Micro, Small and Medium Enterprises notified the Public Procurement Policy
for Micro and Small Enterprises which mandates 20% of annual procurement from MSEs
including 4% from enterprises owned by SC/ST entrepreneurs by the Central Ministries /
Departments and Central Public Sector Enterprises (CPSEs). For effective implementation
and monitoring of the policy, the Ministry launched the Public Procurement Portal titled
“MSME-SAMBANDH” on 08.12.2017.
Hon’ble MoS (I/C) Shri Giriraj Singh launching the procurement portal- MSME-SAMBANDH in New Delhi on December
8, 2017. The Secretary MSME, Dr. Arun Kumar Panda and Ms. Seema Bahuguna Secretary, Ministry of Public Enterprises,
AS & DC, MSME, Shri Ram Mohan Mishra are also seen.

The portal would help in monitoring the procurement by Central Government Ministries,
Departments and Central Public Sector Enterprises (CPSEs) and would enable them to share
the list of required products/services from MSEs. The portal features the following:
 Central Government Ministries, Departments and Central Public Sector Enterprises
(CPSEs) have been provided authenticated access in the portal.
 Annual Targets for procurements of the CPSEs will be uploaded on the portal and will
be available in public domain.
 Monthly Update of Procurement by CPSEs from MSEs
 Monthly Update of Procurement by CPSEs from MSEs owned by SC/ST
 Reports for monitoring by Heads of Ministries, Departments and CPSEs
 Items purchased by CPSEs - Hyperlinks to CPSEs web page from Sambandh Portal will
be available in public domain.
108 CPSEs have uploaded their annual procurement target as on 1st February, 2018. These
CPSEs have reported an annual procurement target of Rs 85,619 Crore. 88 CPSEs have
reported their actual procurement amounting to Rs. 62,695 Crore. The share of purchases
from all MSMEs amounts to Rs. 14,334 Crore. The amount of purchases from SC/ST owned
MSMEs is reported to be Rs. 267 Crore. It is also reported by CPSEs that 50,427 MSMEs have
contributed to these procurements. 1084 MSMEs are owned by SC/STs in these procurements.
1.4.11 Technology Centre Systems Programme (TCSP)
To expand and upgrade the network of Technology Centres (Tool Rooms and Technology
Development Centres) in the country, Ministry of MSME is implementing Technology Centre
Systems Programme (TCSP) at an estimated Projected Cost of Rs. 2200 Crores including
World Bank Loan assistance of USD 200Mn to establish 15 new Technology Centres (TCs)
and upgrade existing TCs across the country.
TCSP has been conceptualized to create an innovative eco-system with following components
which will engage with each other to create value:
1. Establishment of Physical Infrastructure: This includes establishment of 15 New

Technology Centers and up-gradation/modernization of existing Technology Centers.
2. Engaging the services of world class Technology Cluster Manager (TCM) to help
enhance the technical capabilities of sector specific TCs and thereby helping them in
linkages with the MSMEs and institutions.
3. To establish a Web Portal for creating a technology platform to meet various needs of
MSMEs in addition to implementation of ERP in Technology Centres.

Status of the Programme:
 The implementation of the programme commenced from 15th January 2015.
 Construction work started for 10 new Technology Centres (TCs), Rohtak, Bhiwadi, Baddi,
Bengaluru, Durg Puducherry, Vishakhapatnam, Sitarganj, Bhopal and Kanpur. Construction
work also started for upgradation of 3 exixting TCs, Bhubaneswar, Mumbai and Aurnagabad.
The estimated cost of construction of these TCs is Rs 600 corore.
 For Modernization of CTTC Bhubaneswar, IGTR, Aurangabad and IDEMI Mumbai, 44 high
endmachines and equipment have been procured. These machines are state of the art
machines providing world class services to the industry.
 For modernization of CTR Ludhiana, CIHT Jalandhar, IGTR Indore, CITD Hyderabad, CTTC
Kolkata and IDTR Jamshedpur, 122 world class machines are being procured.
The project is scheduled to end by 2020-21. It is expected that after completion of the project,
the training capacity of the network of the TCs will be enhanced from present 1.5 lakh to 2.5
lakh per annum. The new TCs will also provide consultancy, incubation, tolling support and
other production related services. The project will provide an eco system for the growth and
development of MSMEs all across the country. The setting up Fragrance and Flavour Centre
in Imphal will enhance the income of farmers by creating an eco system of values added
products from agriculture produce.
Fuel Line Replacement Units in Tejas aircraft by MSME Technology Centre, CTTC, Bhubaneswar

1.4.12 Partnership with Industry
In addition to MoU signed with Samsung Electronics India for skilling youth in repairing &
maintenance of electronic products, the DC(MSME) also signed MoU with SAP India for
skilling of youth in ERP SAP Business One Module. These skill development programmes are
conducted through MSME Technology Centres.
1.4.13 International MOUs
1.4.13.1 Ministry of MSME has not signed any MoU during 2017-18 at Government to Government
level with foreign countries for cooperation in MSME sector.
1.4.13.2 Shri Giriraj Singh, Hon’ble Minister of State (Independent Charge), Ministry of MSME,
Government of India and Dr. Mustapa Mohamed, Minister of International Trade & Industry,
Government of Malaysia, witnessed the MoU Signing Ceremony of National Small Industries
Corporation of India and SME Corp. Malaysia on 25-01-2018for Cooperation in MSME sector.
The MoU was signed by Shri RavindraNath, Chairman & Managing Director, NSIC and Dr.
HafsahHashim, CEO, SME Corp. Malaysia. Shri Arun Kumar Panda, Secretary (MSME), other
senior officials of Ministry of MSME, Govt. of India and officials of Ministry of International
Trade, Government of Malaysia were also present on the occasion.
Minister of State for Micro, Small & Medium Enterprises (I/C), Shri Giriraj Singh and the Minister of International
Trade & Industry (MITI), Malaysia, Dato’ Sri Mustapa Bin Mohamed witnessing the signing of an MoU, at the SME
Business Networking event, in New Delhi on January 25, 2018. The Secretary, MSME, Shri Arun Kumar Panda is also
seen.
1.4.14 MoU with NSIC for provision of services for MSMEs

The National Small Industries Corporation (NSIC) signed Memorandum of Understanding

(MoU) for the year 2017-18 with the Ministry of Micro, Small and medium Enterprises,
Government of India on 08.06.2017. The MoU envisages provision of enhanced services by
NSIC under its various schemes for MSMEs in the country with the growth in the operational
performance of the Corporation during the year 2017-18. NSIC has been graded as very good
for FY 2016-17.
1.4.15 SWACHHTA PAKHWADA by Ministry of MSME
1.4.15.1 Ministry of MSME celebrated the Swachhta Pakhwada from 1st to 15th December, 2017. Union
Minister of State (Independent Charge) Shri Giriraj Singh distributed Swachhta Awards in a
function held in Vigyan Bhawan at New Delhi on 15.12.2017. Industrial Clusters, Industry
Associations and MSME Offices were felicitated for their contribution to Swachh Bharat
Abhiyaan. Dr. Arun Kumar Panda, Secretary (MSME) and Shri ParmeswaranIyer, Secretary,
Ministry of Drinking Water and Sanitation (DWS) along with other dignitaries and senior
officials from the Ministry were also present.
Minister of State for Micro, Small & Medium Enterprises (I/C), Shri Giriraj Singh presenting the Swachhata
Awards 2017, at a function, in New Delhi on December 15, 2017. The Secretary, MSME, Shri Arun Kumar Panda
and the Secretary, Ministry of Drinking Water and Sanitation, Shri Parameswaran Iyer are also seen.
1.4.15.2 For the first time, Swachhta Pakhwada was organized by the Ministry with grandeur through
its field offices and organisations spreading across the country. Awareness campaigns and
seminars on new and Innovative technologies on cleanliness were organised. School children
were also associated in activities like tree plantation, painting competition, essay and slogan
writing competition, etc. Speaking on the occasion, Shri Giriraj Singh said that Swachh
Bharat Abhiyaan started by the Hon’ble Prime Minister in 2014 on the birth anniversary of
Mahatma Gandhi is changing the world’s perception about India. The Ministry of MSME and
its subordinate offices are regularly organising cleanliness drives not only in their respective

offices but also in the industrial clusters, industrial estates, to translate this great vision of
Hon’ble Prime Minister to reality. Awareness is being created amongst MSMEs about the
importance of setting up of effluent treatment plants and adopting waste management
techniques. This is one such initiative to create a healthy competition amongst industrial
clusters, industrial estates and offices for Swachhta.
1.4.16 National Scheduled Caste / Scheduled Tribe Hub:
1.4.16.1 This Ministry of MSME approved a scheme for setting up of National Schedule Caste and
Schedule Tribes (SC/ST) Hub on 25.07.2016. The said Hub was formally launched by the
Hon’ble Prime Minister on 18.10.2016 at Ludhiana, Punjab. The Hub is set up to provide
professional support to SC/ST entrepreneurs to fulfill the obligations under the Central
Government Public Procurement Policy for Micro and Small Enterprises Order 2012, adopt
applicable business practices and leverage the Standup India initiatives. The total project cost
of the National Schedule Caste and Schedule Tribes Hub is proposed to be Rs. 490 crores
for period from 2016-17 to 2019-20. The functions of Hub include collection, collation and
dissemination of information regarding SC/ST enterprises and entrepreneurs, capacity
building among existing and prospective SC/ST entrepreneurs through skill training and EDPs,
vendor development involving CPSEs, NSIC, MSME-DIs and industry associations including
Dalit Indian Chamber of Commerce & Industry (DICCI), promoting participation of SC/ST
entrepreneurs in exhibitions and organizing special exhibitions for this purpose, facilitating
SC/ST entrepreneurs participating in public procurement and monitoring the progress, etc.
1.4.16.2 Four Sub-schemes have been made under National SC/ST Hub. Highlights of these sub-
schemes are as under:
(a) Special Single Point Registration Scheme(SPRS)-SC/ST enterprises registered
under Special Single Point Registration Scheme can be eligible for upfront 100%
subsidy on the fee of NSIC for fresh registration/ renewal/ amendments/ competency
certificate and also the inspection fees of the empaneled Inspection Agencies/ NSIC
including Service Tax applicable. Registered SC/ST owned enterprises would also
be eligible for getting benefits of issue of tender sets free of cost, exemption from
payment of Earnest Money Deposit (EMD) etc. under Public Procurement Policy.
(b) Special Marketing Assistance Scheme (SMAS)- SC/ST entrepreneurs shall be
allowed reimbursement under SMAS for maximum of 2(two) international events and
4 (four) domestic events in a financial year.
(c) Subsidy for Performance & Credit Rating Scheme (SPCRS) – Under this scheme,
90% subsidy shall be provided on rating fee of all rating agencies for fresh rating
under the scheme of NSSH, subject to the specified ceilings. For renewal of ratings for
units having a rating of up to 5 will get a subsidy of 50% of the rating fee payable in
the first year.
(d) Special Credit Linked Capital Subsidy Scheme-Under this scheme, 25% capital
subsidy are given to SC/ST MSEs for technology up gradation (limited to maximum
Rs. 1 crore).

The Minister of State for Micro, Small & Medium Enterprises (I/C), Shri Giriraj Singh
addressing the National SC-ST Hub Confluence in New Delhi on September 20, 2017
1.4.16.3 The Ministry with NSIC had organized ‘NSSH Confluence’ on 20.09.2017 at PravasiBhartiya
Kendra, Chankyapuri, New Delhi to interact with Industry Associations and Incubators from
across the country to understand the gaps in realizing the mandate of Public Procurement
Policy. The programme also aimed to put forth innovative strategies for the holistic
development of MSME owned by SC/ST entrepreneurs. Hon’ble Vice-President of India, Shri
Venkaiah Naidu was the Chief Guest of the programme, Shri ThaawarchandGehlot, Hon’ble
Minister of Social Justice & Empowerment, Shri JualOram, Hon’ble Minister of Tribal Affairs,
Shri Giriraj Singh, Hon’ble MoS(I/C), MSME and Shri Shiv PratapShukla,MoS(Finance) also
graced the occasion as Guests of Honour. Around 350 representatives from more than 100
associations/incubators participated in the confluence.
1.4.16.4 During 2016-17, assistance provided for 58 domestic exhibitions and 14 foreign visit/
participation in exhibitions benefitting 671 SC/ST MSMEs and 96 SC/ST MSMEs respectively.
38 Special Vendor Development Programmes were also organized participating 1561 MSMEs.
In addition, 395 units were rated under Special Performance & Credit Rating Scheme and
80 units were registered/renewed under Single Point Registration Scheme.During 2017-18
(upto December 2017), assistance provided for 73 domestic exhibitions and 14 foreign visit/
participation in exhibitions benefitting 114 SC/ST MSMEs and 88 MSMEs respectively. 54
Special Vendor Development Programmes were also organized participating 1743 MSMEs.
In addition, 140 units were rated under Special Performance & Credit Rating Scheme and
294 units were registered/ renewed under Single Point Registration Scheme. Short-term
Training Programmes for capacity building of SC/ST entrepreneurs have also been conducted
at premier institutions, on pilot basis.
1.4.16.5 Twenty-four State Level conclaves of SC/ST Entrepreneurs are being organized in various
parts of the country during the year. 7 States conclaves have already been conducted at
Bengaluru, Lucknow, Coimbatore, Faridabad, Kolkata, Agra and Agartala by December 2017.
1.4.16.6 Eighteen State level Conclaves in the second phase under NSSH are also planned to be
organized in the rest of the country to take cognizance of various endeavours under taken by
Central and State Government to boost entrepreneurship and ensure higher participation of
SC/ST entrepreneurs in the supply chain of CPSCs requirement.

Chapter-II
Overview of Performance of
the MSME Sector
2.1 Role of MSMEs in Indian Economy

2.1.1 The Micro, Small & Medium Enterprises (MSMEs) have been contributing significantly to
the expansion of entrepreneurial endeavours through business innovations. The MSMEs are
widening their domain across sectors of the economy, producing diverse range of products
and services to meet demands of domestic as well as global markets. As per the data available
with Central Statistics Office (CSO), Ministry of Statistics & Programme Implementation, the
contribution of MSME Sector in country’s Gross Value Added (GVA)1 and Gross Domestic
Product (GDP)2, at current prices for the last five years is as below:
Table 2-1.: Contribution of MSMEs in Country’s Economy at Current Price3
(Figures in Rs. Crores adjusted for FISIM3 at current prices)

Year MSME GVA Growth (%) Total GVA Share of Total GDP Share of
MSME in MSME in
GVA (%) GDP (in %)
2011-12 2583263 - 8106946 31.86 8736329 29.57
2012-13 2977623 15.27 9202692 32.36 9944013 29.94
2013-14 3343009 12.27 10363153 32.26 11233522 29.76
2014-15 3658196 9.43 11481794 31.86 12445128 29.39
2015-16 3936788 7.62 12458642 31.60 13682035 28.77
Source: Central Statistics Office (CSO), Ministry of Statistics & Programme Implementation
2.1.2. The contribution of Manufacturing MSMEs in the country’s total Manufacturing GVO4 (Gross
Value of Output) at current prices has also remained consistent at about 33%, i.e. one-
thirdduring the last five years.
1 Gross Value Added (GVA): It may be noted that estimates of GVA had been prepared at factor cost in the earlier series (base year 2004-05), while
these are being prepared at basic prices in the new series (2011-12). GVA estimated by production approach: (GVA = Output – Material Inputs)
and GVA estimated by income approach: (GVA = Compensation of Employees + Operating Surplus + CFC)
2 Gross Domestic Product (GDP): GDP is derived by adding taxes on products, net of subsidies on products, to GVA at basic prices.
3 FISIM stands for Financial Intermediation Services Indirectly Measured. In the System of National Accounts it is an estimate of the value of the
services provided by financial intermediaries, such as banks, for which no explicit charges are made; instead these services are paid for as part of
the margin between rates applied to savers and borrowers. The supposition is that savers would receive a lower interest rate and borrowers pay
a higher interest rate if all financial services had explicit charges.
4 Gross Value Output(GVO): Manufacturing Output is defined to include the ex-factory value, (i.e., exclusive of taxes, duties, etc. on sale and inclusive
of subsidies etc., if any) of products and by-products manufactured during the accounting year, and the net value of the semi-finished goods, work-
in-process, and also the receipts for industrial and non-industrial services rendered to others, value of semi-finished goods of last year sold in the
current year, sale value of goods sold in the same condition as purchased and value of electricity generated and sold.

2.2 Performance of the MSME Sector
Performance of Micro, Small & Medium Enterprises (MSME) Sector in India can be assessed
mainly by the information from the following sources:
2.2.1 Analyzing the findings of the NSS (National Sample Survey), 73rd Round on Unincorporated
Non-Agricultural Enterprises in Manufacturing, Trade and Other Services Sectors (Excluding
Constructions). This also gives the latest and most comprehensive account of the performance
of the MSME Sector as of the estimated number of 633.92 lakh enterprises, only 4000
enterprises were large and thereby out of the MSME Sector. The Report on Key Indicators of
the Survey is available at www.mospi.gov.in.
2.2.2 Studying the report of the Economic Census conducted by the Central Statistics Office (Report
of 6th Economic Census, 2013)available at www.mospi.gov.in and also at www.msme.gov.
in.CSO started Economic Censuses for preparing frame of establishments, particularly the
‘area frame’ which could be used for various surveys for collection of detailed data, mainly on
non-agricultural sector of the economy. Six Economic Censuses have been conducted so far in
1977, 1980, 1990, 1998, 2005 and 2013-14. As per the Sixth Economic Census (2013), 58.5
million establishments were found to be in operation. 34.8 million establishments (59.48%)
were found in rural areas and nearly 23.7 million establishments (40.52%) were found to be
located in urban areas.
2.2.3 Studying the results of the periodic All India Census of the MSME Sector.Three All-India
Censuses of Small Scale Industries (SSI) were held in 1977, 1988 and 2001-02.The latest
census conducted by the Office of the Development Commissioner (MSME) on Micro, Small
and Medium Enterprises (MSME) is the Fourth All India Census of MSME held in 2006-07,with
base period 2006-07.The final reports of the Fourth All India Census of MSME covering both
Registered and Unregistered Sectors, are available on the website of Office of DC, MSME at
following link http://dcmsme.gov.in/data-stat.htm.
2.2.4 Collecting information on new registration of Enterprises, previously done through
Entrepreneur Memorandum Part-II (EM-II) filed at DICs till September, 2015. This has
subsequently been replaced by self-declared online filing system under Udyog Aadhaar
Memorandum at udyogaadhaar.gov.in. A summary of the results based on UAM registration
data till 31.12.17 has been given at para 2.5.4.
2.2.5 Analysing the information available in MSME Data Bank at http://www.msmedatabank.infor
which, detail data has been provided by the enterprises on receipt of benefit under various
schemes.The objective of the databank is to have one-stop source of information of MSMEs of
India, including their, requirement in terms of credit, technology,raw material and marketing,
etc. The MIS dashboard of the databank provides real time information on various types
of the MSMEs registered on the databank, whichis used for public procurement purposes
by PSUs for procuring from MSMEs. MSME Development (Furnishing of Information) Rules,
2016 have been notified making it compulsory for MSMEs to give the required information
while availing the benefit of grant or subsidy.

2.3. Key Results of NSS 73rd Round Survey (2015-16) on Micro, Small and Medium
Enterprises
2.3.1. Estimated Number of MSMEs in the Country:
2.3.1.1. As per the National Sample Survey (NSS) 73rd round, conducted by National Sample Survey
Office, Ministry of Statistics & Programme Implementation during the period 2015-16, there
were 633.88 lakh unincorporated non-agriculture MSMEs in the country engaged in different
economic activities (196.64 lakh in Manufacturing, 230.35 lakh in Trade and 206.84 lakh
in Other Services and 0.03 lakh in Non-captive Electricity Generation and Transmission,)
excluding the MSMEs registered under (a) Sections 2m(i) and 2m(ii) of the Factories Act,
1948, (b) Companies Act, 1956 and (c) Construction activities falling under Section F of
National Industrial Classification (NIC) 2008. Table 2-2 and Figure 2-1shows the distribution
of MSMEs activity category wise.
Table 2-2: Estimated Number of MSMEs (Activity Wise)
Activity Estimated Number of Enterprises (in lakh) Share (%)

Category Rural Urban Total
Manufacturing 114.14 82.50 196.65 31
Trade 108.71 121.64 230.35 36
Other Services 102.00 104.85 206.85 33
Electricity* 0.03 0.01 0.03 0
All 324.88 309.00 633.88 100
*Non-captive electricity generation and transmission and distribution by units not registered with the Central Electricity Authority (CEA)
* Non-captive electricity generation and transmission
Figure 2-1 Distribution of Estimated MSMEs (Nature of Activity Wise)

It is seen that 31% MSMEs were found to be engaged in Manufacturing activities, while 36%
were in Trade and 33% in Other Services. Again out of 633.88 estimated number of MSMEs,
324.88 lakh MSMEs (51.25%) were in rural area and 309 lakh MSMEs (48.75%) were in the
urban areas as is evident from Figure 2-2.
Figure 2-2: Percentage share of rural and urban MSMEs in the country
2.3.1.2. The Micro sector with 630.52 lakh estimated enterprises accounts for more than 99% of
total estimated number of MSMEs. Small sector with 3.31 lakh and Medium sector with 0.05
lakh estimated MSMEs accounts for 0.52% and 0.01% of total estimated MSMEs, respectively.
Table 2-3 depicts the distribution of different categories of enterprises in rural and urban
areas.State-wise estimated number of MSMEs is also enclosed as Annexure-1.
Table 2-3: Distribution of Enterprises Category Wise(Numbers in lakh)
Sector Micro Small Medium Total Share (%)
Rural 324.09 0.78 0.01 324.88 51
Urban 306.43 2.53 0.04 309.00 49
All 630.52 3.31 0.05 633.88 100
2.3.2. Type of Ownership of Enterprises

2.3.2.1. Male/ Female Ownership
Out of 633.88 lakh MSMEs, 608.41 lakh (95.98%) MSMEs were proprietary enterprises.
There has been overwhelming predominance of male owners in proprietary MSMEs. Thus,
for proprietary MSMEs as a whole, male owned 79.63% of enterprises as compared to 20.37%
owned by female. There was no significant deviation in this pattern in urban and rural areas,
although the dominance of male owned enterprises was slightly more pronounced in urban
areas as compared to rural areas (81.58% as compared to 77.76%).

Table 2-4: Percentage Distribution of Enterprises in rural and urban areas.
(Male/ Female ownership category wise)
Sector Male Female All
Rural 77.76 22.24 100
Urban 81.58 18.42 100
All 79.63 20.37 100
Further male dominance in ownership has been more pronounced for small and medium
enterprises with 95% or more enterprises being owned by them, as compared to micro
enterprises where 77.76% were owned by males.
Table 2-5: Percentage distribution of Enterprises by Male/Female Owners
Category Male Female All
Micro 79.56 20.44 100
Small 94.74 5.26 100
Medium 97.33 2.67 100
All 79.63 20.37 100
2.3.3. Ownership of Enterprises Social Category Wise

2.3.3.1. The socially backward groups owned almost 66.27% of MSMEs, though bulk of that can be
attributed to OBCs owning in 49.72%. The representation of SC and ST owners in MSME
sector was low at 12.45% and 4.10% respectively. In rural areas, almost 73.67% of MSMEs
were owned by socially backward groups, of which 51.59% belonged to the OBCs. In urban
areas, almost 58.68% belonged to the socially backward groups, of which 47.80% belonged
to the OBCs.
Table 2-6: Percentage Distribution of enterprises by social group of owners
Sector SC ST OBC Others Not known All
Rural 15.37 6.70 51.59 25.62 0.72 100.00
Urban 9.45 1.43 47.80 40.46 0.86 100.00
All 12.45 4.10 49.72 32.95 0.79 100.00

Figure 2-3: Percentage Distribution of Enterprises Social group-wise in Rural/ Urban Areas
2.3.3.2 The analysis of enterprises owned by socially backward groups in each of the three segments
of MSME sector reveals that the Micro sector had 66.42% of enterprises owned by socially
backward group, whereas Small and Medium sectors had 36.80% and 24.94% of enterprises
owned by socially backward groups respectively.
Table 2-7: Percentage Distribution of Enterprises Social Category Wise
Sector SC ST OBC Others Not known All

Micro 12.48 4.11 49.83 32.79 0.79 100
Small 5.50 1.65 29.64 62.82 0.39 100
Medium 0.00 1.09 23.85 70.80 4.27 100
All 12.45 4.10 49.72 32.95 0.79 100
Figure 2-4: Percentage Distribution of Enterprises by Social Group of the Owner and Category of Enterprise

2.3.4 Employment
2.3.4.1 As per the National Sample Survey (NSS) 73rd round conducted during the period 2015-16,
MSME sector has been creating 11.10 crore jobs (360.41 lakh in Manufacturing, 387.18 lakh
in Trade and 362.82 lakh in Other Services and 0.07 lakh in Non-captive Electricity Generation
and Transmission) in the rural and the urban areas across the country. Table 2-10 and Figure
2-9 shows the distribution of MSMEs activity wise.
Table 2-8: Estimated Employment in MSME Sector (Broad Activity Category Wise)
Broad Activity Employment (in lakh) Share (%)

Category Rural Urban Total
Manufacturing 186.56 173.86 360.41 32
Trade 160.64 226.54 387.18 35
Other Services 150.53 211.69 362.22 33
Electricity* 0.06 0.02 0.07 0
All 497.78 612.10 1109.89 100
*Non-captive electricity generation and transmission
*Non-captive electricity generation and transmission
Figure 2-5: Distribution of Employment in the MSME Sector Broad Activity Category wise
2.3.4.2 Micro sector with 630.52 lakh estimated enterprises provides employment to 1076.19 lakh
persons, which accounts for around 97% of total employment in the sector. Small sector
with 3.31 lakh and Medium sector with 0.05 lakh estimated MSMEs provides employment
to 31.95 lakh (2.88%) and 1.75 lakh (0.16%)persons of total employment in MSME sector,
respectively. Figure 2-6and Table 2-9 shows the sectoral distribution of employment in
MSMEs. State-wise distribution of employment is given in Annexure-II.

Figure 2-6: Percentage Share of Rural and Urban MSMEs in the Country
Table 2-9: Distribution of Employment in Rural and Urban Areas (Number in lakh)
Sector Micro Small Medium Total Share (%)
Rural 489.30 7.88 0.60 497.78 45
Urban 586.88 24.06 1.16 612.10 55
All 1076.19 31.95 1.75 1109.89 100
2.3.4.3 Out of 1109.89 lakh employees in MSME sector, 844.68 (76%) are male employees and
remaining 264.92 lakh (24%) are females. The Table 2-10 and Figure 2-7shows the gender-
wise distribution of workforce in MSME sector.
Table 2-10: Sectoral distribution of workers in Male and Female Category (in Lakh)
Sector Female Male Total Share (%)
Rural 137.50 360.15 497.78 45
Urban 127.42 484.54 612.10 55
Total 264.92 844.68 1109.89 100
Figure 2-7: Distribution of workers in Male and Female Category

2.3.5 State-wise Distribution of estimated MSMEs
State of Uttar Pradesh had the largest number of estimated MSMEs with a share of 14.20% of
MSMEs in the country. West Bengal comes as close second with a share of 14% again. The top
10 States together accounted for a share of 74.05% of the total estimated number of MSMEs
in the country. Figure 2-8 and Table 2-11 show the distribution of estimated enterprises in
top ten States.
Figure 2-8: Distribution of MSMEs in Top Ten States

Table 2-11: State-wise Distribution of enterprises
Sl. State/UT Estimate Number of MSMEs
No. Number (in lakh) Share (in %)
1 Uttar Pradesh 89.99 14
2 West Bengal 88.67 14
3 Tamil Nadu 49.48 8
4 Maharashtra 47.78 8
5 Karnataka 38.34 6
6 Bihar 34.46 5
7 Andhra Pradesh 33.87 5
8 Gujarat 33.16 5
9 Rajasthan 26.87 4
10 Madhya Pradesh 26.74 4
11 Total of above ten States 469.36 74
12 Other State/UTs 164.52 26
13 All 633.88 100
2.4 Comparative Analysis between Fourth All India MSMECensus (2006-07) and
NSS 73rd Round (2015-16)
Comprehensive information on the MSME Sector can be obtained from both Fourth all India
MSME Census was held in 2006-07 and the NSS 73rd Round (2015-16). Being held almost 10
years time gap, a comparison of the two sets of results can capture the growth of the basic
parameters of the MSME Sector over a decade.
Table 2-12: Growth of MSMEs (Figures in lakh)
Parameter NSS 73rd Round#, Fourth All India Census Annual Compound
2015-16 of MSMEs, 2006-07 Growth Rate (%)
No. of MSMEs (Total) 633.88 361.76 6.43
Manufacturing 196.65 115.00 6.14
Services 437.23 246.76 6.56
Employment (Total) 1109.89 805.24 3.63
Manufacturing 360.42 320.03 1.33
Services 749.47 485.21 4.95
* Service includes Trade, Electricity & Other Services.

2.4.1 Table 2-13 below shows the comparative distribution of MSMEs in the top 10 States.
Table 2-13: Comparative distribution of top ten states between NSS
Sl. State/UT NSS 73rd round Fourth All India Census of

No. (2015-16) MSME (2006-07)
Number Share (%) Number Share (%)

(in lakh) (in lakh)
1 Uttar Pradesh 89.99 14 44.03 12
2 West Bengal 88.67 14 34.64 10
3 Tamil Nadu 49.48 8 33.13 9
4 Maharashtra 47.78 8 30.63 8
5 Karnataka 38.34 6 20.19 6
6 Bihar 34.46 5 14.70 4
7 Andhra Pradesh** 33.87 5 25.96 7
8 Gujarat 33.16 5 21.78 6
9 Rajasthan 26.87 4 16.64 5
10 Madhya Pradesh 26.74 4 19.33 5
11 Total of top ten States 469.4 74 261.04 72
12 Other State/UTs 164.5 26 100.72 28
13 All 633.9 100 361.76 100

**Including Telangana in Fourth All India Census of MSME

***Including Telangana in Fourth All India Census of MSME
Figure 2-9: Comparative Distribution of MSMEs across States
2.5 Registration of New MSMEs

2.5.1 One of the critical indicators to assess the successful development of MSME Sector in an
economy is the data on opening of new MSMEs; it depicts the conducive environment
for opening and growth of such units in an economy as well as show the high morale of
entrepreneurs in the macroeconomics of the economy.

2.5.2 Before the MSMED Act, 2006, there was a system of registration by small scale industrial units
to the DICs. Subsequently, as per the provisions of the MSMED Act, 2006, MSMEs used to file
Entrepreneurs Memorandum (Part-I) at District Industries Centres (DICs) before starting
an enterprise. After commencement of production, the entrepreneur concerned used to file
EntrepreneursMemorandum(Part-II) /[EM-II]. A total of 21,96,902 EM-II filings had taken
place between 2007 and 2015. Analyses of information from EM-II filings is provided at:
http://www.dcmsme.gov.in/publications/EMII-2014-15.pdf.
2.5.3 Since September, 2015, in view of promoting ease of business, an online filing system under
Udyog Aadhar Memorandum (UAM) based on self-declared information has been put in place.
Till end of December, 2017, 38.99 lakh MSMEs have already registered on UAM, the detailed
information on which is available at: http://udyogaadhaar.gov.in/UA/UdyogAadhar-New.aspx.
2.5.4 An analysis of UAM filings also provides a break-up of manufacturing and services MSMEs.
It may be noted that the services MSMEs comprise a larger proportion of UAM filings than
those involved in manufacturing. The break-up is provided in Figure 2-10.
Figure 2-10: Share of UAM filings - Manufacturing and Services
2.5.5 Figure 2-11 shows the distribution of Micro, Small and Medium enterprises within the total
number of UAM filings. As can be seen, Micro enterprises constitute the vast majority of the
enterprises (90%) who have filed UAMs since 2015, while the remaining are mostly Small
Enterprises (10%) with Medium enterprises constituting less than 0.5% of the total UAMs
filed.

Figure 2-11: Distribution of Micro, Small and Medium Enterprises as per UAM filings
2.5.6 UAMs also collect information regarding the social category of owners of enterprises. Figure
2-12 shows the distribution of SCs, STs and OBCs who have filed UAMs since 2015.
Figure 2-12: UAMs as per social category - SC/ST/OBC
2.5.7 An analysis of the UAM filings shows the geographical spread of UAMs as uneven. Figure 2-13
shows the geographical distribution of UAMs across all Indian States and Union Territories.
Encouraging more equitable growth within the MSME sector also remains an important
challenge for the Ministry, and various steps are being taken to address the same.

Fig 2-13 : State-wise distribution of UAM filings

Annexure-I
Table 1: State-wise Distribution Estimated Number of MSME (NSS 73rd Round)
Sl. No. State/UT Estimated number of enterprises (Number in lakh)
Micro Small Medium MSME
1 Andhra Pradesh 33.74 0.13 0.00 33.87
2 Arunachal Pradesh 0.22 0.00 0.00 0.23
3 Assam 12.10 0.04 0.00 12.14
4 Bihar 34.41 0.04 0.00 34.46
5 Chhattisgarh 8.45 0.03 0.00 8.48
6 Delhi 9.25 0.11 0.00 9.36
7 Goa 0.70 0.00 0.00 0.70
8 Gujarat 32.67 0.50 0.00 33.16
9 Haryana 9.53 0.17 0.00 9.70
10 Himachal Pradesh 3.86 0.06 0.00 3.92
11 Jammu & Kashmir 7.06 0.03 0.00 7.09
12 Jharkhand 15.78 0.10 0.00 15.88
13 Karnataka 38.25 0.09 0.00 38.34
14 Kerala 23.58 0.21 0.00 23.79
15 Madhya Pradesh 26.42 0.31 0.01 26.74
16 Maharashtra 47.60 0.17 0.00 47.78
17 Manipur 1.80 0.00 0.00 1.80
18 Megahlaya 1.12 0.00 0.00 1.12
19 Mizoram 0.35 0.00 0.00 0.35
20 Nagaland 0.91 0.00 0.00 0.91
21 Odisha 19.80 0.04 0.00 19.84
22 Punjab 14.56 0.09 0.00 14.65
23 Rajasthan 26.66 0.20 0.01 26.87
24 Sikkim 0.26 0.00 0.00 0.26
25 Tamil Nadu 49.27 0.21 0.00 49.48
26 Telangana 25.94 0.10 0.01 26.05
27 Tripura 2.10 0.01 0.00 2.11
28 Uttar Pradesh 89.64 0.36 0.00 89.99
29 Uttarakhand 4.14 0.02 0.00 4.17
30 West Bengal 88.41 0.26 0.01 88.67
31 A & N Islands 0.19 0.00 0.00 0.19
32 Chandigarh 0.56 0.00 0.00 0.56
33 Dadra & Nagar Haveli 0.15 0.01 0.00 0.16
34 Daman & Diu 0.08 0.00 0.00 0.08
35 Lakshadweep 0.02 0.00 0.00 0.02
36 Puducherry 0.96 0.00 0.00 0.96
ALL 630.52 3.31 0.05 633.88

Annexure-II
Table 2: State-wise Estimated Number of Employees (NSS 73rd Round)
Sl. No. State/UT Employment (Number in lakh)
Female Male Total
1 Andhra Pradesh 21.01 34.98 55.99
2 Arunachal Pradesh 0.11 0.29 0.41
3 Assam 1.78 16.37 18.15
4 Bihar 4.79 48.26 53.07
5 Chhattisgarh 4.07 12.79 16.86
6 Delhi 2.41 20.59 23.00
7 Goa 0.41 1.20 1.60
8 Gujarat 13.71 47.44 61.16
9 Haryana 2.78 16.27 19.06
10 Himachal Pradesh 1.13 5.29 6.43
11 Jammu & Kashmir 1.50 9.37 10.88
12 Jharkhand 5.57 19.34 24.91
13 Karnataka 19.73 51.11 70.84
14 Kerala 13.77 30.86 44.64
15 Madhya Pradesh 10.13 38.61 48.80
16 Maharashtra 17.97 72.77 90.77
17 Manipur 1.40 1.52 2.92
18 Meghalaya 0.72 1.19 1.91
19 Mizoram 0.28 0.34 0.62
20 Nagaland 0.59 1.18 1.77
21 Odisha 8.37 24.87 33.26
22 Punjab 4.24 20.55 24.80
23 Rajasthan 8.01 38.31 46.33
24 Sikkim 0.14 0.31 0.45
25 Tamil Nadu 32.27 64.45 96.73
26 Telangana 15.24 24.91 40.16
27 Tripura 0.44 2.51 2.95
28 Uttar Pradesh 27.27 137.92 165.26
29 Uttarakhand 0.69 5.91 6.60
30 West Bengal 43.51 91.95 135.52
31 A & N Islands 0.10 0.29 0.39
32 Chandigarh 0.12 1.17 1.29
33 Dadra & Nagar Haveli 0.07 0.29 0.36
34 Daman & Diu 0.02 0.12 0.14
35 Lakshadweep 0.01 0.02 0.03
36 Puducherry 0.57 1.27 1.84
ALL 264.92 844.68 1109.89

Chapter-III
Statutory bodies, and other bodies

under the MSME Ministry
3.1. Khadi Village Industries Commission (KVIC)

Khadi & Village Industries Commission (KVIC) established under the Khadi and Village
Industries Commission Act, 1956 (61 of 1956), is a statutory organization under the aegis of
the Ministry of MSME.
3.1.1 Objectives: The main objectives of KVIC include:-
 The social objective of providing employment in rural areas;
 The economic objective of producing saleable articles; and
 The wider objective of creating self-reliance amongst people and building up a strong
rural community spirit.
3.1.2 Functions: The functions of KVIC as prescribed under the KVIC Act, 1956 (61 of 1956) and
Rules made there under, include:
i. to plan and organize training of persons employed or desirous of seeking employment
in khadi and village industries;
ii. to build up directly or through specified agencies reserves of raw materials and
implements and supply them or arrange supply of raw materials and implements to
persons engaged or likely to be engaged in production of handspun yarn or khadi or
village industries at such rates as the Commission may decide;
iii. to encourage and assist in the creation of common service facilities for the processing
of raw materials or semi-finished goods and otherwise facilitate production and
marketing of khadi or products of village industries;
iv. to promote the sale and marketing of khadi or products of village industries or
handicrafts and for this purpose forge links with established marketing agencies
wherever necessary and feasible;
v. to encourage and promote research in the technology used in khadi and village
industries, including the use of non-conventional energy and electric power with a
view to increasing productivity, eliminating drudgery and otherwise enhancing their
competitive capacity and to arrange for dissemination of salient results obtained from
such research;

vi. to undertake directly or through other agencies, studies of the problems of khadi or
village industries;
vii. to provide financial assistance directly or through specified agencies to institutions or
persons engaged in the development and operation of khadi or village industries and
guide them through supply of designs, prototypes and other technical information, for
the purpose of producing goods and services for which there is effective demand in
the opinion of the Commission;
viii. to undertake directly or through specified agencies, experiments or pilot projects
which in the opinion of the Commission, are necessary for the development of khadi
and village industries;
ix. to establish and maintain separate organizations for the purpose of carrying out any
or all of the above matters.
3.1.3 Organisation:
3.1.3.1 The Commission functions with its Head Office at Mumbai and six Zonal Offices located at
New Delhi; Bhopal; Bangalore; Kolkata; Mumbai and Guwahati and 46 Field Offices spread
all over the country.
3.1.3.2 The organization design of the KVIC is as given below:
Figure 3-1: Organisation Chart of KVIC

3.1.3.3 KVIC undertakes training activities through its 38 departmental and non-departmental
training centres. Marketing of KVI product produced by Khadi & Village Industries institutions
and units, Khadi Gramodyog Bhandar and Bhavans, run by KVI institutions done through
8058 sale outlets in different parts of the country. KVIC also operates 07 DSOs to market KVI
products of KVI institutions/ NGOs and entrepreneurs.
3.1.3.4 Khadi and Village Industries (KVI) programmes are implemented through 34 State/Union
Territories (UTs) Khadi and Village Industries Boards (KVIBs); 4601 registered institutions,
Banks/Financial institutions. The Khadi programme is implemented through institutions
registered either with KVIC or State/UT KVIBs.
3.1.4 Khadi Sector in India:
3.1.4.1 Khadi activity is considered as potential tool for creation of employment opportunities at the
doorstep of rural artisans at very low capital investment. Immediately after independence,
Khadi and Village productivity became the grand symbol of nationalism. As such, Khadi came
to be known not just as a piece of cloth, but as a symbol of freedom and self-reliance.
3.1.4.2 Production of Khadi and polyvastra is by far the largest rural productivity programme in
the world. It provides the rural communities a high value for their effort while providing
the consumers value for money. KVIC is a statutory organization tasked with the role of
promoting the production and sale of Khadi. Over 2375 institutions form the vast network
that is implementing the objective and programmes of KVIC in India. Over 4.56 lakh people
are engaged in their activities under KVIC, a majority of which (over 70 percent) are women.
3.1.4.3 Khadi is the unique programme of KVIC and a potent tool for creation of employment at the
artisans’ doorstep being implemented by 2375 Khadi Institutions. The assistance provided
through Market Development Assistance (MDA) and Interest Subsidy Eligibility Certificate
(ISEC) Scheme are enabling Khadi institutions to provide employment opportunities to 4.56
lakh traditional artisans living in the rural areas.

Figure 3-2: Production of Khadi 2013-17 (KVIC Annual Report)
3.1.4.4 Khadi production and sales have grown consistently over the past five years, from production
of Rs. 879.98 crore in 2014-15 to Rs 1401.84 crore in 2016-17. Similarly, sales of Khadi have
shown growth from Rs. 1170.38 crore in 2014-15 to Rs 2007.61 crore in 2016-17.
Figure 3-3: Trends in sales of different materials of Khadi (KVIC Annual Report)
Figure 3-4: Distribution of khadi institutes (KVIC)

3.1.4.5 There is a total of 2375 khadi institutions in the country that employ a total of 4,56,000
artisans (complete details are available online at: http://www.kviconline.gov.in/claims/
artisanData/index.jsp.). The majority of khadi institutes are situated in the Centralpart of the
country (Figure 3-4).
3.1.4.6 Village industries have shown consistent growth over the past few years. Production and sales
have grown consistently from total production worth Rs. 26689.39crores in 2014-15, the
number stood at Rs 41110.26 crore in 2016-17. Similarly, sales of goods produced by village
industries have shown growth from Rs. 31865.52 crores in 2014-15 to Rs. 49991.61crores in
2016-17. Village industries comprise seven different sectors. These are:
Sl.
Classification Industries
No.
1 Mineral Based Industry Pottery
Lime
2 Agro Based & Food Processing Pulses & Cereals Processing Industry
Industry (ABFPI)
Gur & Khandsari Industry
Palmgur Industry
Fruit & Vegetable Processing Industry
Village Oil Industry
3 Polymer & Chemical Based Industry Leather Industry
(PCBI)
Non Edible Oils & Soap Industry
Cottage Match Industry
Plastic Industry
4 Forest Based Industry (FBI) Medicinal Plants Industry
Bee Keeping Industry
Minor Forest Based Industries
5 Hand Made Paper & Fibre Industry Hand Made Paper Industry
(HMPFI)
Fibre Industry
6 Rural Engineering & Bio Technology Non-Conventional Energy
Industry (REBTI)
Carpentry &Blacksmithy
Electronics
7 SEP/Service Industry

Figure 3-5: Trends in production, sale and earnings in village industries (KVIC Annual Report)
Village industry Products marketed by KVIC
3.1.5 Recent strategic initiatives by KVIC to promote khadi:

Recent Strategic initiatives by KVIC have been taken to promote production and sale at units
stand all over India for Khadi & Village industries:
(A) New Initiatives:
 Liberal policy has been adopted to fix the target of production and sales of Khadi
Institutions.
 Under SAHYOG Yojana, KVIC has collected Rs. 1.00 crore to distribute Charkha among
poor artisans.

 In Kaziranga, 100 displaced persons have been rehabilitated and provided with 25
Charkhas and 5 Looms.
 Under CSR, Rs. 5.30 crore has been provided by Rural Electrification Corporation
(REC) which has generated employment opportunity for 1000 artisans.
 500 new model eight-spindle charkhas were gifted to the women spinners of nine
State of the Country to enhance the productivity and their wages.
 In order to make Khadi easily available including designer products to its patrons,
KVIC has taken the initiative to open premier Khadi Showrooms known as ‘Khadi
Lounge’ such types of lounges have been opened at Jaipur, Mumbai and New Delhi.
 KVIC sold coupons to ONGC and organized special Exhibition, for sales of Khadi to
35,000 employees of ONGC across the country.
 The largest Charkha has been established at IGI Airport, New Delhi.
 Premium sales outlets have been opened at Lucknow, Delhi, Visakhapatnam, Airports
to augment sale of the premium Khadi products.
 Two sales outlets under “Franchisee Schemes” have been opened at Pune and Tirumala
to increase the Khadi and V.I. products produced by KVI units.
Secretary, MSME, Shri Arun Kumar Panda, the Chairman, KVIC, Shri V.K. Saxena and the J.S. & CEO, KVIC, Shri
B.H Anil Kumar in a meeting with the CEOs of retail chains and designer conference, in Mumbai on November
16, 2017.
(B) Other initiatives by KVIC

 An online application system has been made operational for disbursement of Market
Development Assistance (MDA) scheme to Khadi Institutions and artisans.

 KVIC has started Registration of new institutions online for undertaking Khadi
activities by the new entities.
 KVIC has entered an agreement with M/s Raymonds Ltd. and M/s Aditya Birla Fashion
&Retails Ltd. and given Khadi Mark Registration Certificate for Marketing of Khadi
Products.
 Institutions are being given full freedom to increase their level of production as well
as sales by optimum utilization of all their resources.
 The payment of MDA and Interest Subsidy under ISEC to Khadi Institutions and
incentives to Khadi Artisans are being paid online on DBT mode in their Bank Account.
 Research and Development -KVIC undertakesresearch and development activities to
continuously explore and implement in the area of technology by providing scientific
input to needy institutions with an objective to increase the productivity and quality
of the product through Mahatma Gandhi Institute of Rural Industrialization (MGIRI)
Wardha, IIT, Delhi & IIT, Chennai etc.
 Registration of New Khadi Institutions - KVIC has enlisted/ registered new
institutions with a view to enhancing production. 62 such new khadi institutions were
registered in 2016-17.
 Artisan Welfare Fund Trust (AWFT) - Artisan Welfare Trust is run by khadi
institutions in states. Membership in AWFT is mandatory for all Khadi institutions,
So far, 2086 Khadi institutions have taken membership of these Trusts.
3.1.6 Marketing activities
 Three new sales outlets/ Lounge “Khadi India” have been established in Jaipur,
Mumbai and New Delhi.
 Sales outlets established at Airport in Lucknow and Vishakhapatnam.
 KVIC also taken steps to develop its market by convergence with Corporate, PSUs,
Ministries.
 Khadi Denim Products continued to make Khadi fabrics and apparels appealing to the
youth as a symbol of ‘Swadeshi Khadi Fashion’.
 KVIC has taken the path breaking initiative to open up premier Khadi Showrooms to
make available premier Khadi designer products in sophisticated showrooms through
the KVIC Franchise Outlets in 15 selected cities to market the KVI products produced
by entrepreneurs/institutions.

23฀
3.1.7 Implementation of MSME schemes

KVIC is an implementing\ nodal agency for schemes initiated by the MSME Ministry. Given
below is a list of schemes being implemented by KVIC.
Table 3-1: Major Schemes being implemented by KVIC
S.No Scheme KVIC Activities
1. Workshed Scheme for Financial assistance for construction of work sheds is provided
Khadi Artisans to khadi artisans to BPL category through the Khadi institutions
with which the khadi artisans are associated. 39715 artisans
were assisted under the scheme from inception including 3272
beneficiaries during 2016-17.
2 Strengthening Infra- This scheme was formulated in order to facilitate the need-
structure of Existing based support towards the Khadi sector for nursing the sick/
Weak Khadi Institutions problematic institutions, and institutions whose production,
and Assistance for sales and employment have been declining while they have
Marketing Infrastructure potential to attain normalcy, and to support creation of
marketing infrastructure in other identified outlets. Under this
scheme, financial assistance has been provided to 35 weak
Khadi institutions for strengthening their infrastructure and for
renovation of selected 117 khadi sales outlets during the year
2016-17.

3. Khadi Reform and Department of Economic Affairs, Ministry of Finance has tied up
Develoment Programme financial aid from Asian Development Bank (ADB) amounting to
(KRDP) US$150 million over a period of three years w.e.f February, 2010
for implementing a comprehensive Khadi Reform Programme
worked out in consultation with ADB and KVIC.
 Gazette notification for Khadi Mark Regulation issued in
July, 2013
 The loan was restructured with an amount USD 105 and
timeline upto 31.12.2017.
 Direct Reform Assistance (DRA) under KRDP is provided
to 327 Khadi institutions and provided assistance to 100
Khadi institutions including both normal and special
category up to 31.03.2017.
 2163 KIs have obtained Khadi Mark Certificate.
 18324 NMC and 4561 improved Looms have been sanctioned
to 327 KIs, and procured 8628 NMC and 1532 improved
looms including Traditional by the 100 KIs under KRDP
and provided employment to the artisans i.e. spinners &
weavers under this programme.
 3508 persons inclusive of spinners/weavers and staff have
been trained under various disciplines.
 197 Sales outlets have been renovated by the KIs
4. Interest Subsidy Govt. of India launched the Interest Subsidy Eligibility Certificate
Eligibility Certificate (ISEC) Scheme in 1977-78 for Khadi Institutions to mobilize
(ISEC) Scheme additional requirements of fund from the Financial Institutions/
Banks. ISEC Scheme is the major source of funding for the Khadi
and Polyvastra Programme.
 The ISEC Scheme is applicable for all registered Khadi
institutions under KVIC/ KVIB implementing Khadi and
Polyvastra programme. Under the scheme, credit at the
concessional rate of Interest of 4% per annum is given
for working Capital (WC) as per the requirement of KVI
institutions. The difference between the actual lending
rate and 4% is paid by the Central Government through
the Khadi & Village Industries Commission (KVIC) to the
lending Banks and the funds for this purpose are provided
under the Khadi grant or V.I grant heads to KVIC. Details
are given in Chapter-4.

5. MPDA During 2016-17 Rs. 327.04 crore have been disbursed by KVIC
to Khadi Institutions and incentive to Khadi artisans towards
MDA (khadi) during 2016-17.Details are given in Chapter-4.
6. Aam Admi Bima Yojana Aam Admi Bima Yojana (erstwhile Khadi Karigar Jana Shree
Bima Yozana) is a group Insurance Scheme for the benefit of
Khadi artisans covering natural death, death and permanent/
partial disability due to accident. The Scheme also offers
educational scholarship for upto two children of Khadi artisan
who are studying in IXth Std. to XIIth Std. including ITI @ Rs.
300/-per quarter without any additional premium. Details are
given in Chapter-4.
3.1.8 Growth in the Khadi industry
Khadi and Village Industries activities are the key source of livelihood for rural and urban
people who largely include spinners, weavers and other artisans spread across the country.
The comparative performance of KVIs during 2014-15, 2015-16 and 2016-17 is given in the
table below, and shows robust growth.
Table 3-2: Comparative performance of Khadi and Village Industries
(Rs. In crore, Employment: In lakh persons)
S. Industry 2014-15 2015-16 2016-17 2017-18

No.
(upto 31.12.2017)
I. Production
A. Khadi 879.98 1065.60 1520.83* 1069.46*

B. Village 26689.39 33424.62 41110.26 44656.23
Total 27569.37 34490.22 42631.09 45725.69
II. Sales
A. Khadi 1170.38 1510.00 2146.60* 1326.33*

B. Village 31965.52 40384.56 49991.61 54424.07
Total 33135.90 41894.56 52138.21 55750.40
III. Employment
A. Khadi 11.06 11.07 4.56* 4.56*

B. Village 123.19 126.76 131.84 133.23
Total 134.25 137.83 136.40 137.79
*Polyvastra figures included in khadi during 2016-17 & 2017-18

KVIC started “Sweet Kranti” from Rashtrapati Bhavan in the august presence of Hon’ble President, Shri Ram NathKovindon
the occasion of “World Honey Bee Day” On 19.08.2017.
3.1.9 Challenges faced by Khadi Sector:

 The biggest challenge for Khadi is from the handloom, mill made, branded ethnic
segment on the one hand and from counterfeit, spurious, look-alike products being
sold as khadi all across the country.
 Khadi being a product known for its rich heritage and emotional value also throws
open the entire ethnic ware segment to be flooded with products and brands.
Developing market oriented, modern products equipped for fashion conscious youth
is a challenge to be met, as well as an opportunity to be cashed on.
 Steady sale and higher returns are essential to remunerate the artisans well on time
and also a steady increase in wages is a must to keep the artisans in the stream.
 Modernization of equipment and operations of the Khadi Institutions and renovation
of stores are the other big challenges.
3.1.10 Budgetary support to KVIC
3.1.10.1 The Ministry of (MSME) provides funds to KVIC for undertaking its various activities
under Plan. These funds are provided primarily by way of grants and KVIC in turn
re-allocates fund to its implementing agencies, namely the State KVIBs; institutions registered
under the Societies Registration Act, 1860 and cooperative societies registered under the
Cooperative Acts of the State Governments, District Industries Centres, etc. The Commission’s
administrative expenditure including pension payments is met out of Non-plan Government
budgetary support.

3.1.10.2 The details of funds provided from budgetary sources (both under Plan and Non-Plan head)
during the last three years and those earmarked in the Budget Estimate 2017-18 are given
in the following Table:
TABLE 3-3: Budgetary Support to KVIC (Rs.crore)
Allocation (R.E) Funds Released
Year
Plan Non- Plan Plan Non- Plan
2014-15 1452.00 229.09 1384.40 227.31
2015-16 1579.65 244.71 1520.49 244.18
2016-17 1647.40 258.74 1591.08 258.74
2017-18 (B.E) 1866.68 1522.55
NOTE: 2017-18 figures are upto 31st December 2017.
3.2 Coir Board

The Coir Board is a statutory body established under the Coir Industry Act, 1953 for promoting
the overall development of the coir industry and improvement of the living conditions of the
workers engaged in this traditional industry.
3.2.1 Objective
3.2.1.1 India is the largest coir producer in the world accounting for more than 80 per cent of the
total world production of coir fibre. The coir sector in India is very diverse and involves
households, co-operatives, NGOs, manufacturers and exporters. This is the best example of
producing beautiful artifacts, handicrafts and utility products from coconut husks which is
otherwise a waste. The coir industry employs more than 7.00 lakh persons of whom a majority
are from rural areas belonging to the economically weaker sections of society. Nearly 80%
of the coir workers in the fibre extraction and spinning sectors are women. The Coir Board is
tasked with promoting the overall development of the coir industry and improvement of the
living conditions of the workers engaged in this traditional industry.
3.2.2 Functions
The functions of the Coir Board for the development of coir industry, inter-alia, include:
 Promoting exports of coir yarn and coir products and carrying on propaganda for that
purpose.
 Regulating under the supervision of the Central Government the production of husks,
coir yarn and coir products by registering coir spindles and looms for manufacturing
coir products as also manufacturers of coir products.
 Undertaking, assisting or encouraging scientific, technological and economic
research and maintaining and assisting in the maintenance of one or more research
institutes;

 Collecting statistics from manufacturers of and dealers in coir products and from
other persons as may be prescribed, on any matter relating to the coir industry and
the publication of statistics so collected.
 Fixing grade standards are arranged when necessary for inspection of fibre, coir yarn
and coir products.
 Improving the marketing of coconut husk, coir fibre, coir yarn and coir products in
India and elsewhere and preventing unfair competitions;
 Setting up or assisting in the setup of factories for the producers of coir products with
the aid of power.
 Promoting co-operative organization among producers of husks, coir fibre and coir
yarn and manufactures of coir products.
 Ensuring remunerative return to producers of husks coir fibre and coir yarn and
manufacturers of coir products;
 Advising on all matters relating to the development of the coir industry.
3.2.3 Organisation
The Govt. of India vide Gazette Notification No. S.O 2677(E) dated 30.9.2015 reconstituted
the Board with 18 members for a period of 3 years. Vide Gazette Notification No. S.O. 3284 (E)
dated 24th October, 2016 amendment has been made to the above notification and appointed
one more Member to the Board under category (e) for a period up to 29th Sept. 2018. Further,
the Govt. of India vide Gazette Notificaion No.S.O.3351(E) dated 16.10.2017, amended the
Notification Number S.O.2677(E) dated 30th September, 2015, and 10 more members were
appointed to the Board under Category (b), (c),(d) and (g) for a period up to 29th September,
2018.
 Sri. C.P Radhakrishnan, Ex- Member of Parliament continues to be the Chairman of
Coir Board.
 Coir Board has currently 30 Members including Chairman, Coir Board.
 The Head Quarters of the Board is located at Coir House, M.G.Road, Kochi, Kerala.
 The Board is running 51 establishments including 30 Showrooms and Sales Depots
and 1 Sub Depot set up in various parts of India. There are a total number of 320
employees under the Board.
3.2.4 Coir Industry in India
3.2.4.1 Coir is a coarse fibre extracted from husk, the fibrous outer shell of coconut. Ropes and
cordage, made out of coconut fibre have been in use from ancient times. Indian navigators,
who sailed the seas to Malaya, Java, China and to the Gulf of Arabia centuries ago, had been
using coir as their ship’s cables. The coir manufacturing industry producing coir mats,

matting and other floor coverings, was started in India on a factory basis, over a hundred and
fifty years ago when the first factory was set up in Alleppey in 1859.
3.2.4.2 Coir industry is an agro-based traditional industry, which originated in the State of Kerala
and proliferated to the other coconut producing states like Tamil Nadu, Karnataka, Andhra
Pradesh, Orissa, West Bengal, Maharashtra, Assam, Tripura, etc. It is an export oriented
industry having potential to enhance exports by value addition through technological
interventions.
Minister of State for Micro, Small & Medium Enterprises (I/C), Shri Giriraj Singh visiting after inaugurating the Coir
Board pavilion, at the 37th India International Trade Fair (IITF), at Pragati Maidan, in New Delhi on November 14, 2017.
3.2.4.3 Total world coir fibre production is 10,64,000 tons (FAO Statistical Bulletin 2015). The coir
fibre industry is particularly important in some areas of the developing world. India, mainly
the coastal region of Kerala State, produces. 55% of the total world supply of white coir fibre.
Tamil Nadu is the leading brown fibre producer in India. India is a major exporter of coir in
the world.
Table 3-4: Export of Coir During Last 5 Years (Volume And Value)
Year Quantity(MTs) Value (Rs. In Lakh)
2013-14 537040.38 147603.84
2014-15 626666.00 163033.77
2015-16 752020.00 190142.52
2016-17 957045.00 228164.82
2017-18 (upto 254039.00 58129.85
31.12.2017)

3.2.4.4 The top 5 coir importing countries from India are indicated in Table below:
Table 3-5:Top 5 Coir Importers from India
Quantity Value (Rs. Percentage
Sl. No. Country Percentage (%)
(Tonnes) in Lakhs) (%)
1 China 439884.57 45.96 66655.52 29.21
2 USA 133536.72 13.95 53286.56 23.35
3 Netherlands 82487.53 8.62 18148.78 7.95
4 UK 17668.15 1.85 11076.22 4.85
5 South Korea 57545.12 6.01 9486.28 4.16
3.2.5 Major activities and achievements

3.2.5.1 The Ministry has been attaching importance to the development of coir sector in the country.
Production of coir fibre was 3,25,900 MT up to 31stDecember, 2017 cumulative employment
for 7.29 lakh persons against the fibre production of 5,56,900 MT during the last financial
year.
Year 2013-14 2014-15 2015-16 2016-17 2017-18*

Coir Fibre Production
5,39,815 5,42,000 5,49,300 5,56,900 3,25,900
(Metric Ton)
*Provisional figures upto31st December 2017.
Coir Geo textiles

For soil erosion control
3.2.5.2 The estimated production of coir and coir products during the last two years and the current
year are given below:

Table 3-6: Growth in production of coir products during 2015-18
Item 2015-16 2016-17 2017-18*

(Qty in MT) (Qty in MT) (Qty in MT)
Coir fibre 549300 556900 325900
Coir yarn 329600 334200 195600
Coir products 217500 220500 129050
Coir rope 65920 66850 39150
Curled coir 65850 66800 39100
Rubberized coir 87900 89100 52150
*Provisional up to 31st December, 2017

3.2.5.3 The estimated production of coir and coir products has increased modestly but consistently.
The number of persons employed in the coir industry has shown the same trend.
Figure 3-5: State-wise trends of employment in coir industry (Coir Board)

Innovative Coir Products - Coir Wood
3.2.6 Schemes implemented by the Coir Board

3.2.6.1Coir Udyami Yojana - This is a credit linked central sector scheme whose objectives are
modernisation of the Coir Industry and enhancement of utilization of coconut husk and to
provide more employment for women in rural areas. During 2017-18, Rs.6.32 crore (up to
December, 2017) has been spent as margin money in setting up of 319 units. During the
remaining period of this financial year 450 more units will be set up.
3.2.6.2 Coir Vikas Yojana – In this scheme various programmes like Entrepreneurship Development
Programme, Awareness Programme, Workshop, Seminar, Exposure Tour, etc. are organised
for attracting more entrepreneurs to coir sector. In order to create skilled man power required
for the coir industry the Board is organising various training programmes on manufacture
of value added products. The candidates undergoing these training programmes are given
a monthly stipend amounting to Rs. 1000/- per month. Coir Board has conducted 10
Workshops, 7 Entrepreneurship Development Programme, 19 Awareness Programme in
various States through Board’s Regional/ Sub Regional Offices during the year 2017-18 (up
to December 2017).
3.2.6.3 Mahila Coir Yojana - The Mahila Coir Yojana is a woman oriented self-employment Scheme
in the coir industry which provides self-employment opportunities to the rural women
artisans in the coconut producing regions. One artisan per household is eligible to receive
assistance under the Scheme. The training is given in spinning of coir yarn/ various coir
processing activities to rural women in regions producing coir fibre in the country. The
scheme envisages distribution of motorized ratts/ motorized traditional ratts and other
coir processing equipments which can be operated by women, at 75% subsidy subject to a
maximum of Rs. 7500/- after completion of the 2 months training programme.

3.2.7 Challenges to Coir Sector:
 Coir industry in India is traditionally an export oriented and labour intensive one.
Even though the Indian Coir continues to enjoy its supremacy in the world market, the
products of this industry are facing tough competition from other cheaper products.
 Being manufactured from an agricultural produce with a relatively high level of costs of inputs,
Coir goods are dearer than synthetics and other competing items. The method of production
and processing of Coir, in many parts of the country, continues to be obsolete.
 Modernization of the Coir Industry with state-of-art production techniques, machinery etc.
is the need of the hour. Even though there is stiff competition for coir in the area of floor
covering material, products like Coir Pith, Coir Geotextile, and Coir Wood offers a plethora of
opportunities in the developing world.
 Adequate market promotion in these countries through awareness creation on the environment
friendly aspects and new application area of coir products would lead to long term gains to
the Coir sector.Bringing coir products under the ‘Ecomark’ and environment friendly goods
category would be ideal step in this direction. Coir products being 100% ecofriendly and
biodegradable offers solution to the current day serious issues like deforestation, global
warming etc.
3.2.8 Research and Development (R&D) – Various Research and Development activities for
modernization of coir industry in the country are carried out by two research institutes of
Coir Board Viz. Central Coir Research Institute at Alleppey in Kerala and Central Institute of
Coir Technology at Bangalore in Karnataka. The R&D efforts of the Board have resulted in the
development of different machinery items with high productivity, eco-friendly production
processes, new end-use applications, product development etc.
3.2.9 Budgetary support by Ministry of MSME to Coir Board
3.2.9.1 The Government of India provides funds to Coir Board for undertaking its various activities
under Plan and Non-plan heads. The details of budgetary support provided to Coir Board
during the last five years are given below.
Table 3-7: Budgetary support to the Coir Board

Allocation (RE) (Rs. In crore) Funds Released (Rs. In crore)
Year
Plan Non- Plan Plan Non- Plan
2013-14 57.07 19.20 45.10 19.17
2014-15 41.90 26.75 38.58 26.60
2015-16 34.90 23.95 31.55 23.73
2016-17 42.30 30.75 35.04 35.70
2017-18* 63.00 49.73
*Releases upto 31.12.2017

3.3. National Small Industries Corporation (NSIC)
National Small Industries Corporation (NSIC) is an ISO 9001-2008 certified Government of
India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME). NSIC has
been working to promote aid and foster the growth of micro, small and medium enterprises
in the country. NSIC is a profitmaking, dividend paying company.
3.3.1 Objective
3.3.1.1 The mission of NSIC is “To promote and support Micro, Small and Medium Enterprises by
providing integrated support services encompassing, Marketing, Finance, Technology and other
Services.”.
3.3.1.2 The vision of NSIC is “To be premier organization fostering the growth of Micro, Small and
Medium Enterprises in the country.”
3.3.2 Functions
3.3.2.1 NSIC performs three distinct categories of activities in order to fulfill its mission.
It runs a number of schemes, and is also an implementing partner for a number of schemes
of the Ministry of MSME. These schemes/ activities include:
 Marketing Assistance
 Bank Credit Facilitation
 Performance & Credit Ratings
 Raw Material Assistance
 Single Point Registration
 Infomediary Services
 NSIC Consortia and Tender Marketing Scheme
 Marketing Intelligence
 Bill Discounting
 Infrastructure
 National Schedule Caste and Schedule Tribe Hub
3.3.2.2 NSIC provides technical support to MSMEs through ‘NSIC Technical Services Centres’ (NTSCs)
and a number of TICs & LBIs spread across the country. The range of technical services
provided through these centres includes skill development in Hi-Tech as well as conventional
trades, material and product testing.
3.3.2.3 One of the programmes being implemented by NSIC is to create self-employment opportunities
by imparting training in entrepreneurship building to the unemployed people who want to

set up new small business enterprises in any of the manufacturing/ services sectors or seek
employment opportunities. For this purpose, NSIC has started a new initiative by entering
into franchisee arrangements with private partners interested for setting up of Training-
cum-Incubation Centres (NSIC-TIC) at various locations across the country under Public-
Private Partnership (PPP) mode.
3.3.3 Organisation
3.3.3.1 The policy guidelines to the Corporation are provided by the Board of Directors consisting
of a full time Chairman-cum-Managing Director; two Functional Directors; two Government
nominee Directors and three non-official part-time Directors.
3.3.3.2 NSIC operates through countrywide network of 165 offices and 7 Technical Centres in
the Country. To manage operations in African countries, NSIC operates from its office in
Johannesburg, South Africa. In addition, NSIC has set up Training-cum-Incubation Centre
with a large professional manpower and provides a package of services formeeting the needs
of MSME sector.
3.3.4.1 Marketing support
Marketing has been identified as one of the most important tool for business development.
NSIC acts a as a facilitator and has devised a number of schemes to support enterprises in
their marketing efforts, both in domestic and foreign markets. The NSIC does this primarily
through:
a. Raw Material Distribution - Raw Material Assistance Scheme aims at helping MSMEs
by way of financing the purchase of Raw Material (both indigenous & imported). This
gives an opportunity to MSMEs to focus better on manufacturing quality products.
NSIC through its distribution network leverages with bulk manufacturers to provide
raw materials to MSMEs as per their requirements at concessional rates all over
the country. During FY 2016-17, NSIC serviced the raw material requirements of
Micro, Small & Medium Enterprises (MSMEs) through supply of iron & steel specially
allocated through Ministry of Steel, Govt. of India, Aluminum from M/s. NALCO,
Paraffin Wax from M/s. CPCL, Coal from M/s. Coal India Ltd., Polymer Products i.e. PP,
HDPE & LLDPE from M/s. IOCL and Copper from M/s. SesaSterlite. The Corporation
has added another main producer i.e. Numaligarh Refinery Limited (NRL) for handling
their Paraffin Wax material by opening a godown (Agency) at Guwahati. With this,
the Corporation is having total 37 distributing centers. During FY 2016-17, the total
raw material distribution by NSIC was 11,35,788 MTs and in FY 2017-18 (upto 31st
December, 2017), the total raw material distribution was 8,45,031 MTs.
b. Consortia and Tender Marketing – Micro & Small Enterprises (MSEs) in their
individual capacity face problems to procure and execute large orders, which
deny them a level-playing field vis-à-vis large enterprises. NSIC, accordingly forms

consortia of small units manufacturing the same products, thereby pooling in their
capacity which provides comfort level to MSEs as suppliers and also to buyers. The
Corporation applies for tenders on behalf of consortia of MSEs and secures orders for
bulk quantities. These orders are then distributed amongst MSEs in tune with their
production capacity. Under the Tender Marketing Scheme, NSIC facilitates the MSE(s)
in every stage of tender activity right from the participation in tenders till execution
of tenders. During FY 2016-17, 900 tenders were executed valued at Rs. 189.64 crore
and total seven numbers of consortia were formed. During the year 2017-18 (upto
31st December, 2017), the Corporation formed 4 new consortia. The Corporation has
participated in 511 tenders valued at Rs. 191.67 crore, has been awarded tender for
Rs. 124.72 crore and tenders worth Rs. 164.03 crore has been executed.
c. Exhibitions - To showcase the competencies of Indian MSMEs, NSIC facilitates
MSMEs’ participations in National & International Exhibitions, Fairs, Buyer- Seller
meets, Intensive campaigns and marketing promotion events etc. on concessional
terms under the Marketing Assistance Scheme of the Ministry of MSME. Participation
in these exposes MSMEs to international practices and enhances their business
prowess. Through participation in these events, MSMEs are also facilitated to capture
new markets making them globally competitive.
During FY 2016-17 NSIC participated/ organised/ cosponsored 202 exhibitions in
India and participated in 20 international exhibitions wherein 3014 units participated.
In FY 2017-18 (upto 31stDecember, 2017), NSIC participated/ organised/ cosponsored
83 exhibitions in India and participated in 13 international exhibitions, wherein 904
units participated.
d. Buyer – Seller Meets – NSIC, during FY 2016-17 conducted 70 Buyer- seller meets/
VDPs and in FY 2017-18 (upto December 2017), 19 buyer-seller meet/VDPs for the
purpose of facilitating MSEs to become vendor of large buyers.
3.3.4.2 Credit support –
A. NSIC meets credit needs of MSMEs through tie-up arrangements with Banks. NSIC has
entered into tie-up arrangements with various Banks for providing Credit Facilitation
to the MSME sector. NSIC finances Procurement of Raw Materials & Marketing. It does
so by making arrangements with bulk manufacturers for procuring the materials and
supplying the same to MSMEs. NSIC provides financial assistance for raw material
procurement by making the payment to suppliers. Credit facilitation of Rs. 6,425
crore was made during FY 2016-17. In FY 2017-18 (upto 31 December, 2017) credit
facilitation was made of Rs. 4139 crore.
B. In addition, NSIC has initiated Online Finance Facilitation Centreunder which
credit to MSMEs will be facilitated through web linkages between NSIC portal and
Bank’s portal. The MSME Unit can either directly log in at www.nsicffconline.in or can
also contact to its nearest NSIC Finance Facilitation Centre with the loan proposal.

The official at the Finance Facilitation Centre will provide hand holding support by
assisting the unit in documentation for online submission of the loan proposal to any
three preferred banks as opted by MSME unit which are under MOU agreement with
NSIC. At present, eight Finance Facilitation Centres have been established at Jalandhar,
Peenya, Ludhiana, Guwahati, Hyderabad, Jaipur, Chennai and Kanpur.
3.3.4.3 Other support services
3.3.4.3.1 NSIC operates single point registration for Government purchase to build the capacities
of MSEs for participation in Government tenders and contribute in Government Public
Procurement processes. MSMEs are also empowered to participate in tenders of Government
departments / institutions through consortia and tender marketing scheme. During FY
2016-17, 4,964 fresh units were added and 5763 units were renewed. 21,109 live units
were registered under Single Point Registration Scheme as on 31st March, 2017. In FY 2017-
18 (upto 31December 2017), 2952 fresh units were added and 4271 units were renewed.
21,922 cumulative number of units registered under SPRS upto 31 December, 2017.
3.3.4.3.2 NSIC also facilitates E-Marketing Service through MSME Global Mart Web Portal (www.
msmemart.com). NSIC’s marketing portal provides e-marketing platform to MSMEs across
the country to enhance their business. The portal hosts vast database of registered members
who are looking for business opportunities, in terms of sustainable partnership, sub-
contracting and participation in Public Procurements. During FY 2016-17, 6160 units were
registered under B2B portal and in FY 2017-18 (upto 31 December, 2017), 5930 units were
registered under B2B portal.
3.3.4.3.3 NSIC facilitates skill development by imparting training according to requirements of
industries by linking with them so as to strengthen on-going training programmes through
updated knowledge from the industries through its seven Technical Services Centres (NTSCs)
located at Okhla (New Delhi), Hyderabad (Telangana), Howrah (West Bengal), Rajkot (Gujarat),
Chennai (Tamil Nadu), Rajpura (Punjab) & Aligarh (Uttar Pradesh). The industry oriented
training is offered in fields like Mechanical, Design, Electrical & Electronics, Information
Technology & Mechatronics, wherein the training programme inter-alia include Robotics, PLC
& SCADA, Embedded Technology, Solar Energy, Turner, Fitter, Machinist, Welder, Electrician,
Draughtsman (Mech.), Refrigeration & Air Conditioning, HVAC, Tool Design & Manufacturing,
Revit MEP, CAD / CAM-Creo, Unigraphics, CATIA, Solid Works, CNC Programming & Operation,
Revit Architecture, Interior Design, O Level Advance Software, Web Technology, Graphics,
Multimedia, Computer Hardware & Networking. These technical centres also conduct
testing through NABL Accredited laboratories in the areas like Electrical Cable & Conductor
Testing, Engine Testing, Pump Testing, Building materials, Plastics, Electrical appliances,
Calibration etc.
3.3.4.3.4 NSIC, through rapid incubation centres, provides support to the prospective entrepreneurs
and start-up companies to start product manufacturing. These Incubation Centers provide
facilities of hands-on training on working projects and also covering the theoretical aspects

of business such as Marketing, Business Development, Project report preparation etc. NSIC
has set up six Livelihood Business Incubators at Deoria (UP), Rajkot (Gujarat), Kashipur
(Uttrakhand), Naini (UP), Nawada (Bihar) and Chennai (Tamilnadu) under “A Scheme for
Promotion of Innovation, Entrepreneurship & Agro Industry (ASPIRE)” of this Ministry. NSIC
associated with Haryana State Government for setting up Technology cum incubation Center
at Neemka, Faridabad.
3.3.4.4 Entrepreneurship Orientation Programme - Purpose of EOP is to create awareness among
the students for setting up of new Enterprise after completion of their studies instead of
searching for jobs only. This program makes participants familiar about role and importance
of MSMEs in Indian Economy, process of setting up of Enterprise, preparing Project Reports,
identifying marketing possibilities as well as with the issues regarding various statutory
requirements such as Income Tax, VAT etc. Details are available at: http://www.nsic.co.in/
eop1014.asp.
3.3.4.5 International cooperation - The focus of activities at the enterprise level is on the
entrepreneurs and the objective is to initiate long term and sustainable enterprise to
enterprise cooperation between Indian small enterprises and enterprises in target countries.
This is achieved by exchanging business delegations and organizing one-on-one business
meetings among the enterprises of both the countries. Main features of International
Cooperation include, exchange of business/ technology missions with various countries;
facilitating enterprise to enterprise cooperation, technology transfers & other forms of
sustainable collaboration; explore new markets & areas of co-operation; identification of
new export markets by participating in exhibitions abroad; sharing of Indian experiences
with other developing countries.
3.3.5 Business Performance of NSIC
3.3.5.1 The total business has been more than Rs. 20,000 crore in both years 2015-16 and 2016-
17, and the profit before tax continuously increased, standing at Rs.165.07 crore during
2016-17.
3.3.5.2 The gross profit margin and net profit before & after tax earned by the Company
during 2014-15, 2015-16, 2016-17 and 2017-18 (upto December 2017) is depicted in the
Table 3-8 below:
Table 3-8: Financial performance of NSIC 2013-2017 (Rs. in Lakh)
Particulars 2014-15 2015-16 2016-17 2017-18
(Up to Dec. 17)
Gross Profit Margin 33,577 37,710 36,744 23497.42
Net Profit before 13,256 15,695 16,507 11723.05
Tax
Less : Provision for 4,399 5,549 5,867 4057.11
Tax
Net Profit after tax 8,860 10,146 10,640 7665.94

3.3.5.3 Government Purchase - The revenue generated from the Schemes of Government Purchase
during the year 2016-17 was Rs.14.07 crore and Rs. 8.41 crore under these schemes during
the current financial year up to December 2017.
3.3.5.4 In 2016-17, NSIC paid a dividend of Rs. 31.26 crore i.e. 30% of the PAT for the year 2016-17
to the Government of India.
3.4 MAHATMA GANDHI INSTITUTE FOR RURAL INDUSTRIALISATION (MGIRI)

3.4.1 The existing Jamnalal Bajaj Central Research Institute (JBCRI), Wardha was revamped with
the help of IIT, Delhi as a national level institute under the Ministry of MSME in October 2008
called Mahatma Gandhi Institute for Rural Industrialization (MGIRI).
3.4.2 Objectives - The main objectives of the institute as enunciated in its Memorandum of
Association include:
 To accelerate rural industrialization for sustainable village economy so that KVI sector
co-exists with the main stream.
 Attract professionals and experts to Gram Swaraj
 Empower traditional artisans
 Innovation through pilot study/field trials.
 R&D for alternative technology using local resources
3.4.3 Functions - The activities of MGIRI are being carried out by its six Divisions each headed by
a Senior Scientists/ Technologist.
i Chemical Industries Division: The main focus of this Division is to promote quality
consciousness and consistency in the area of food processing, organic foods and
other products of rural chemical industries. It also provides a comprehensive quality
testing support and is working towards developing field worthy kits, techniques and
technologies to facilitate the cottage and small scale units in this area.
ii. Khadi and Textiles Division: The activities mainly carried out by this Division are to
improve the productivity, value addition and quality of products manufactured in
khadi institutions by introducing new technologies and by providing quality assurance
support.
iii. Bio-processing and Herbal Division: This Division prepares technology packages and
simple quality assurance methods to facilitate production and utilization of organic
manures, bio-fertilizers and bio-pesticides to promote rural entrepreneurs.
iv Rural Energy and Infrastructure Division: This Division has been mandated to
develop user-friendly and cost-effective technologies utilizing commonly available
renewable resources of energy to facilitate rural industries and also to carry out audit
of traditional rural industries so as to make them energy efficient.

v. Rural Crafts and Engineering Division: This Division is to help upgrade the skills,
creativity and productivity of rural artisans and encourage value-addition and improve
the quality of their products.
vi. Management & Systems Division: This Division provides information and
communication technology based solutions for rural industries with a view to enhance
their global competitiveness.
3.4.4 Organisation - MGIRI has a General Council (GC) which has a maximum of 35 members
and the President of the GC is Hon’ble Minister of State for MSME (I/C), Ministry of MSME,
Govt. of India and an Executive Council(EC), comprising not more than 15 members with
Secretary, Ministry of MSME, Govt. of India as the Chairman. The Director of the Institute is
the Member Secretary of both GC and EC.
3.4.5 Major activities and achievements in 2016-17
3.4.5.1 Employees of the institute participated in 23 national/ international seminars, conferences
and workshops for the presentation of research work and knowledge sharing among the
scientific community.
3.4.5.2 MGIRI participated in 7 National and regional level exhibitions, expos and IITF 2016 for the
creation of awareness about the MGIRI technologies, products and services.
3.4.5.3 Two (2) research papers have been published in national and international journals till
December 2017.
3.4.5.4 During the period 2015- 2017 MGIRI came up with a number of technologies, 11 of which
can be listed as follows:
 Health Drink in granules form based on herbs (Arjun and palash).
 Low cost media for preparation of Spirulina for generation of oxygen and absorption
of Carbon dioxide.
 Plant Growth promoter (Amino acids) based on Cow urine and waste human hair.
 Pro biotic honey based on Lactobacillus Coagulance.
 Solar Blunger.
 Solar potter’s wheel suitable for small terracotta articles.
 Heavy duty energy efficient potter’s wheel
 Gang Turn-wood Lathe machine.
 Cyclone dryer for Moringa leaves
 Solar dryer for Essence stick and Mahua Flower drying.
 Solar driven Waste Collection Vehicles

3.4.5.5 Work on 16 improved machines/ products/ processes/ services for Rural Industries sector
has been completed including Fruit sorting machine, Cook stove moulds for charcoal
briquetting machine, Conversion of PVK model Dal mill into solar power operation, Low
cost pugmill, Solar blower for black smithy, Slicer cum stick making machine, Dabba packing
machine, Roving winding machine, Energy efficient Buffing machine for Dokra craft, Solar
power operated Granulator, Anti wrinkle cream, Moringa, Honey and Spirulina based
products, Rajgira popup machine etc. Apart from the above, 30 each of garment & woven
designs created for Khadi sector and uploaded on www.greenkhadidesigns.com for access to
khadi sector artisans and entrepreneurs.
3.4.5.6 MGIRI imparted training to 451 trainees in 69 sessions to various aspirant and existing
entrepreneurs, representatives of NGOs, field agencies, artisans, students, farmers, SHGs etc.
from all over the country for dissemination of technologies, products, processes, designs etc.
for enterprise development and skill up gradation.
3.4.5.7 MGIRI has provided quality testing and guidance services to 21 various agencies such as
KVI institutions, entrepreneurs, students, farmers etc. for 69 different product samples to
improve and maintain the quality of the products as per Indian standards.
3.4.5.8 Community Radio (90.4 FM) popularly known as Radio MGIRI has been conducting several
programmes to sensitise people such as YuvaVishwa (for various competitive exams),
MajhGaonMajhShivar (based on village problems and Government Schemes/ projects for
rural sector) , Hello Doctor (health related information), KrushiJagar (Agriculture related
information) etc.
3.4.6 Budgetary support to MGIRI
3.4.6.1 The Union Government through Ministry of MSME provides funds to MGIRI for undertaking
its various activities. The details of funds provided during the last four years to MGIRI are as
under:
Table 7: Budgetary support to MGIRI
Year Budget allocation (RE) Funds released

(Rs. In crore) (Rs. In crore)
2014-15 11.50 7.23
2015-16 6.87 6.02
2016-17 10.15 9.42
2017-18 10.00 4.93*

3.5 National Institute for MSMEs (NIMSME)
NIMSME was originally set up as Central Industrial Extension Training Institute (CIETI) in
New Delhi in 1960 under the then Ministry of Industry and Commerce, Government of India.
The Institute was shifted to Hyderabad in 1962 as a registered society in the name of Small
Industry Extension Training Institute (SIET). After the enactment of MSMED Act, 2006, the
Institute expanded focus of its objectives and re-designed its organization structure. In line
with the new Act, the Institute was rechristened as National Institute for Micro, Small and
Medium Enterprises (NIMSME). It is currently an organization under the aegis of the Ministry
of Micro, Small and Medium Enterprises (formerly Ministry of SSI & ARI), Government of
India.
3.5.1 Objectives:
3.5.1.1 The primary objective of NIMSME was to be the trainer of trainers. Today, with the technological
development and ever-changing market scenario, the organisation’s involvement has
undergone changes too. From being merely trainers,NIMSME has widened its scope of
activities to consultancy, research, extension and information services.
3.5.1.2 In line with the national objective of economic development through industrialization,
and based on the expertise that is available, the Institute has identified thrust areas that
need emphasis and exploration. These are: Entrepreneurship Development, Technology
Up-gradation & Transfer, Policy Issues, NGO Networking, Environment Concerns, Cluster
Development, Management Consultancy, Quality Management Services, Financial Services,
and Information Services.
3.5.1.3 NIMSME’s long-term mission is to excel at the following:
 Turning new corners in Information Technology.
 Spotlighting of topical issues through conferences, seminars, etc.
 Greater attention to need based programmes.
 Shift towards client driven approach and innovative interventions.
 Programme evaluation.
 Emphasis on research publications.
3.5.2 Functions
Enterprise promotion and entrepreneurship development being the central focus of
NIMSME’s functions, the Institute’s competencies converge on the following aspects:-
 Enabling enterprise creation;
 Capacity building for enterprise growth and sustainability;
 Creation, development and dissemination of enterprise knowledge;

 Diagnostic and development studies for policy formulation; and
 Empowering the under-privileged through enterprise creation.
3.5.3 Organisation
3.5.3.1 The apex body of the Institute is the Governing Council, headed by the Hon’ble Minister of
State for MSME (I/C).
3.5.3.2 Activities of the Institute are organized through its four Schools of Excellence (Enterprise
Development; Enterprise Management; Entrepreneurship and Extension; and Enterprise
Information and Communication), with each School consisting of theme-focused centre’s and
cells. The Academic Council is the nucleus coordinating body which formulates academic
activities and programmes with quantitative and qualitative benchmarks by providing a
framework for assessment and evaluation addressing contextual variations.The organization
chart of NIMSME is provided below.

3.5.4.1 The performance of the Institute in FY 2016-17 and 2017-18 (as at the end of December,
2017) is given in the Table below:
2016-17 2017-18
Programmes From April to December, 2017
Programmes Trainees Programmes Trainees
Entrepreneurship Development Programmes
Programmes under Assistance to Training Institutions sponsored by M/o MSME
Ni-msme as Apex Institution
Completed 135 4,050 26 780
Other Programmes:
National 896 32,809 603 19,508
International 14 370 8 206
Seminars and Workshops 62 3,063 32 1,662
Consultancy and Research 29 0 51 --
Total 1,136 40,292 720 22,156
3.5.4.2 Ni-MSME has also provided services on 12 continuing consultancy projects from previous
year; and 8 consultancy projects taken up during the year 2017-18.
3.5.4.3 Ni-MSME has also brought out 7 publications on various topics. Details of publications are as
under: -
Sl. No. Name of the Publication Date of Publication Language

1. MSME SCHEMES May 2017 Hindi & English
2. Achievements 2014-17 May 2017 Hindi & English
3. MSME SCHEMES July 2017 Hindi & English
4. SEDME Journal June & September, 2017 English

Chapter-IV
Major Schemes
4.1 The Ministry of MSME runs numerous schemes targeted at a) providing credit and financial
assistances b) skill development training, c) infrastructure development, d) marketing
assistance, e) technological and quality upgradation and f) Other Servicesforthe MSMEs
across the country. A snapshot of all the schemes is provided below:
List of the Schemes of the Ministry of MSME
A. Credit and Financial Assistances to MSMEs
I. Prime Minister’s Employment Generation Programme (PMEGP)
Description The scheme aims to generate employment opportunities in rural as well as urban areas of
the country through setting up of new self-employment ventures/ projects/ micro enter-
prises. Another objective is to provide continuous and sustainable employment to a large
segment of traditional and prospective artisans and rural / urban unemployed youth in
the country, so as to help arrest migration of rural youth to urban areas. A third objec-
tive is to increase the wage earning capacity of artisans and contribute to increase in the
growth rate of rural and urban employment.
The Scheme is implemented by Khadi and Village Industries Commission (KVIC), as the
nodal agency at the National level. At the State level, the Scheme is implemented through
State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District
Industries Centres (DICs) and banks.
The maximum cost of the project/ unit admissible under manufacturing sector is Rs.25
lakh and under business/service sector is Rs.10 lakh.
Intended ben- Any individual, above 18 years of age is eligible to seek assistance. If the project size is
eficiaries above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / ser-
vice sector, the applicant must be at least Class VIII Pass.
Only new projects are considered for sanction under PMEGP. Self Help Groups (includ-
ing those belonging to BPL provided that they have not availed benefits under any other
Scheme), Institutions registered under Societies Registration Act,1860; Production Co-
operative Societies, and Charitable Trusts are also eligible.
Funds Allocat- Rs. 1004.49 crore (BE)
ed (2017-18)
Instant Chapathi and Poori Making unit in Kothapeta village, Guntur District, Andhra Pradesh

II. Credit Linked Capital Subsidy Scheme (CLCSS)
Description The objective of the Scheme namely “Credit Linked Capital Subsidy Scheme (CLCSS)” for
Technology Upgradation of Micro and Small Enterprises is to facilitate technology up-gra-
dation in Micro and Small Enterprises (MSEs) by providing capital subsidy of 15 % (limited
to maximum of Rs.15.00 lakhs) on institutional finance availed by them for induction of
well-established and improved technology. Maximum limit of eligible loan for calculation of
subsidy under the Scheme is investment in approved plant & machinery upto Rs.1.00 crore
for induction of well-established and improved technologies.
MSEs are particularly disadvantaged due to insufficient investment and lack of awareness of
both the quality standards and access to modern technologies. A large percentage of MSEs
are running with outdated technology and plant and machinery. The CLCSS is envisaged to
address this issue. Presently, 51 Sectors / sub-sectors with approved Machinery/Technolo-
gies are covered under the scheme. The scheme is applicable to new and existing Micro &
Small Enterprises (MSEs) engaged in manufacturing.
Office of the Development Commissioner (MSME) is implementing the scheme through 12
Nodal Banks / Agencies. The eligible MSEs are required to apply online through Primary
Lending Institutions (PLIs), from where the MSEs availed term loan for up-gradation of
technology. The completed application is uploaded by PLI through Online Application and
Tracking System to the attached Nodal Agency, which, in turn, recommends the application
online to Office of DC (MSME) for release of subsidy. After processing of application and
subject to availability of funds, due approval is accorded from competent authority and
concurrence of Internal Finance Wing, after which funds are released to Nodal Agencies.
Funds are then transferred by the Nodal Agencies to the PLIs where the account of the MSE
is operated.
The scheme has been immensely successful in enabling MSEs in technology upgradation.
This in turn has resulted in productivity improvement, increase in turnover and productiv-
ity. A substantial improvement in product quality has also been reported.
The scheme has also led to energy reduction in terms of electricity consumption and fuel
consumption besides having a positive impact air, water and noise pollution.
Since, inception of the scheme 48618 MSEs have availed subsidy which is Rs. 2907.68 crore
till 31-12-2017.
Machine acquired by beneficiaries under CLCSS
Intended The scheme is applicable to new and existing MSEs.

beneficiaries
Funds Allocated BE - Rs. 441.30 crore,
(2017-18)

III. Credit Guarantee Trust Fund For MSEs (CGTMSE) - Provision of collateral free credit
for MSMEs
Description Guarantees are provided for extending collateral free lending to Micro and Small
Enterprises through banks and financial institutions (including NBFCs).
The Scheme covers collateral free credit facility (term loan and/ or working capital)
extended by eligible lending institutions to new and existing micro and small enterprises
up to Rs. 200 lakh per borrowing unit. The guarantee cover provided is up to 75% of
the credit facility upto Rs. 50 lakh (85% for loans up to Rs. 5 lakh provided to micro
enterprises, 80% for MSEs owned / operated by women and all loans to NER) with
a uniform guarantee at 50% of the credit exposure above Rs. 50 lakh and up to Rs.
200 lakh. A composite all in Annual Guarantee Fee of 1.0% p.a. of the credit facility
sanctioned (0.75% for credit facility upto Rs. 5 lakh and 0.85% for above Rs. 5 lakh
and upto 200 lakh for women, Micro Enterprises and units in NER including Sikkim) is
charged.
This Scheme has been tremendously successful if we consider the fact that the scheme
has facilitated loans which were 20 times the corpus and has thus been able to promote
entrepreneurial activities in the country. It is the only of its kind guarantee scheme
which has covered more than 29 lakh beneficiaries in last 10 years. The beneficiaries
experienced a boost in their turnover as well as employment generation in the years
following approval of CGTMSE funding. CGTMSE funding has had a positive impact on
six major areas in the MSE sector - technology upgradation, skill upgradation, market
development, sustainability of scheme, economic impact, and social Impact.
The scheme has been successful in spanning itself geographically across the country
with a special focus in the North East. The benefits of the scheme have also reached
more than 100 industrial sectors in which MSEs are operating. The beneficiaries are
spread over even tier 3 towns and not limited to major industrial hubs. CGTMSE has
been highly effective in settling the claims wherein the first instalment was settled
within 3 weeks in majority of the cases.
From the financial prudence perspective too, it may be mentioned that the risk coverage
is adequately calculated and measures have been taken to ensure that banks conduct
due-diligence before submitting the application under CGTMSE scheme. Among the
stringent criteria for availing loans are registration of an enterprise as an LLP, private
Limited or Proprietorship Company, the necessary tax registrations and approval to
do business. New businesses, especially, need to submit a detailed plan with financial
projections, business model, and promoter profiles and existing businesses have to
submit their financial performance report and financial statements.
Details of the scheme along with latest circulars are available in the website of CGTMSE
at www.cgtmse.in.
Status: As on 31stDecember, 2017, cumulatively 2968859 proposals have been approved
for guarantee cover for a total sanctioned loan amount of Rs. 1,41.878.14 crore.
Intended The Scheme is applicable to new and existing MSEs.

beneficiaries
Funds Allocated Rs. 3002.00 crore (BE)

(2017-18)

B. Skill Development and Training
I. A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE)
Description The scheme has the following objectives:
(i) Create new jobs and reduce unemployment,
(ii) Promote entrepreneurship culture in India,
(iii) Grassroots economic development
(iv) Facilitate innovative business solution for unmet social needs, and
(v) Promote innovation to strengthen the competitiveness of MSME sector.
The scheme components are
(i) Create a database of technologies available with various Government/ private
agencies and set up a Network of Technology Centres for sharing of best practices and
experiences;
(ii) Develop the required skilled Human Resources necessary for mentoring and
handholding the incubates;
(iii) Set up Livelihood Business Incubators (LBI) under National Small Industries
Corporation (NSIC), KVIC or Coir Board or any other Institution/agency of GOI/State
Govt.
(iv) Incubation and Commercialisation of Business Ideas Programme through
technical/ research institutes Ministries of GOI and Private incubators.
(v) Business Accelerator programme for scaling up.
(vi) Create a framework for Start-up Promotion through Small Industries Development
Bank of India (SIDBI) by using innovative means of finance to enable ideas/innovation &
to convert these into commercial enterprises.
The Objective of LBIs is
(a) To set up business incubators so that eligible youth can be adequately incubated in
various skills and be provided the opportunity to set up their own business enterprises;
(b) To impart entrepreneurship, and skill development training to youth;
(c) To provide mentoring and hand holding with facilitation for funding with a view to
empower them to set up own business enterprises.
(d) To promote new low-end-technology/livelihood based enterprises.
The following activities are covered under the scheme:
A- Livelihood Business Incubators by NSIC, KVIC, Coir Board or any other Institution
or any other Institution or Agency of Govt. of India/State - Setting up LBI’s
(100lakh for NSIC & others. And INR 50 lakh for eligible agencies under ppp) for
plant & machinery only.

B- Technology Business Incubators -
1-Incubation center
• Support for Existing Incubators (INR 30 lakh for incubator capex)
• Setting up of New Incubator (INR 100 lakh for incubator capex)
2-Incubation of Ideas (INR 3 lakh per idea)
3- Creation of Enterprise out of innovative idea (Seed Capital fund@ INR 1.00
cr. per incubator for enterprise creation@ 50% of project cost or 20 lakh per
successful idea whichever is less)
4-Accelerator workshop
NSIC, KVIC and the Coir Board are nodal agencies tasked to replicate the “Rapid
Incubation Model”. In addition, Private partner institutions and entities can also set up
livelihood incubation centres under PPP mode with NSIC, KVIC or Coir Board, or any
other Institution/agency of GOI/State Govt.
Status: The scheme was introduced in 2015-16. As on 31.12.2017, 62 Livelihood Business
Incubators (LBIs) and 8 Technology Business Incubator (TBIs) proposals have been given
approval out of which 33 LBIs have been operationalized. Total support to be provided to
these 70 Incubators is Rs. 106.20 crore.
Intended (a) Existing incubation centres currently operating under different Ministries and
beneficiaries Departments of the Government of India or Institutions including National/Regional
level institutions of GOI/State Governments.
(b) To set up new incubation centres, eligible private institutions including Industry
Associations, along with the Academic Institutions, R&D laboratories, Universities,
Government entities and Technology Parks, Technical institutions with a proven track
record in promotion of innovative/technology based entrepreneurship in the agro-rural
landscape.
Funds Rs. 50.00 crore (BE)
Allocated
(2017-18)

C. Infrastructure
I. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Description The objectives of the scheme is to organize traditional industries and artisans into
clusters to make them competitive and provide support for their long term sustainability,
sustained employment, to enhance marketability of products of such clusters, to equip
traditional artisans of the associated clusters with the improved skills, to make provision
for common facilities and improved tools and equipment for artisans, to strengthen the
cluster governance systems with the active participation of the stakeholders, and to build
up innovative products, improved technologies, advanced processes, market intelligence
and new models of public-private partnerships.
The scheme covers three types of interventions:
i. Soft interventions – Activities to build general awareness, counselling, skill
development and capacity building, exposure visits, market development
initiatives, design and product development, etc.
ii. Hard interventions – Creation of common facility centres, raw material banks,
upgradation of production infrastructure, warehousing facility, tools and
technological upgradation, etc.
iii. Thematic interventions – Interventions on a cross-cutting basis for brand
building, new media marketing, e-commerce initiatives, research and
development, etc.
The financial assistance provided for any specific project shall be subject to a maximum of
Rs 8 (eight) crore to support Soft, Hard and Thematic interventions.
Type of clusters Per Cluster Budget Limit

Heritage Clusters (1000-2500 artisans) Rs 8 crore
Major Clusters (500-1000 artisans) Rs 3 crore
Mini-Clusters (Upton 500 artisans) Rs 1.5 crore
MSME Ministry has constituted a Scheme Steering Committee as the apex coordination
and monitoring body. The KVIC, Coir Board, NiMSME (Hyderabad), IED (Odisha), IIE
(Guwahati), IMED, J&K KVIB are the Nodal Agencies for scheme implementation in their
respective areas. In addition, other Nodal Agencies are being identified for implementation.
Status: The scheme was revamped during 2014 with an outlay of Rs.149.44 crore for
developing 71 clusters. 78 clusters have been given in-principle approval by Scheme
Steering Committee (SSC) and 72 DPRs have been given final approval. A total of 32 clusters
are ready for inauguration, where the entire CFC activities have been completed. Rest 37
clusters to be completed for operation within 4 months latest by March 2018. A total of
59900 artisans are likely to be benefited under 72 clusters and total financial support for
these 72 clusters will be Rs.139.58 crore.
Intended Non-Government organizations (NGOs), institutions of the Central and State Governments
beneficiaries and semi-Government institutions, field functionaries of State and Central Govt., Panchayati
Raj institutions (PRIs), Private sector by forming cluster specific SPVs, Corporates
and corporate Responsibility (CSR) foundations with expertise to undertake cluster
development.

Funds Rs. 75.00 crore
Allocated
(2017-18)
Kangayam Coir Geotextiles & Matting Cluster, Tamil Nadu
II. Scheme for Micro & Small Enterprises Cluster Development Programme (MSE-CDP)
Descriptions The Ministry has adopted the cluster development approach as a key strategy for
enhancing the productivity and competitiveness as well as capacity building of Micro
and Small Enterprises (MSEs) and their collectives in the country.
Objectives of the Scheme -
(i) To support the sustainability and growth of MSEs by addressing common issues
such as improvement of technology, skills and quality, market access, access to capital
etc.
(ii) To build capacity of MSEs for common supportive action through formation of
self-help groups, consortia, upgradation of association etc.
(iii) To create / upgrade infrastructural facilities in the new / existing industrial
areas / clusters of MSEs.
(iv) To set up Common Facility Centres (for testing, training centre, raw material
depot, effluent treatment, complementing production processes etc.)
Major activities:
i. Funding support for setting up of ‘Common Facility Centres (CFC)’.
ii. Funding support for setting up of ‘Common Display Centres (CDC) for Women
Entrepreneurs’.
iii. Funding support for ‘Infrastructure Development Projects (new / upgradation)’.
Status: During the financial year 2017-18 (upto 31st December 2017), 9 Common
Facility Centres and 11 Infrastructure Development Projects have been completed.

Intended i. Funding support for setting up of Common Facility Centres (CFCs)- Implementing
beneficiaries agencies such as organisations of State Governments, National and International
Institutions engaged in development of MSME sector or any other institution /
agency approved by the Ministry of MSME.
ii. Funding support for setting up of Common Display Centres (CDC) for Women
Entrepreneurs - Association of Women Entrepreneurs.
Funding support for Infrastructure Development Projects (new /upgradation)

-Implementing agencies such as organisations of State Governments.
Turmeric Clusters, Sangli, Maharashtra
Funds Allocated BE - Rs. 184.00 crore, RE – 184.00 crore (proposed).

(2017-18)
D. Marketing Assistance
I. Scheme for providing financial assistance to Khadi institutions under MPDA
Description Government has introduced w.e.f 01.04.2010, a flexible, growth stimulating and artisan
oriented Market Development Assistance (MDA) Scheme, in place of the erstwhile
system of Rebate. Under MDA, financial assistance is provided to institutions @ 20% of
the value of production of khadi and polyvastra, to be shared among artisans, producing
institutions and selling institutions in the ratio 40:40:20. MDA provides institutions
flexibility to use the assistance for improving the outlets, products and production
processes, besides giving incentive to customers, etc. The scheme has been modified
as MPDA by amalgamating existing Market Development Assistance on production
(Khadi & Poly) Scheme and additional components of Publicity, Marketing and Market
promotion (including Export Promotion) & Infrastructure (inclusive of new component
of Marketing Complexes/Khadi Plaza) out of VI Grant.Under the Modified MDA (MMDA),
Pricing would be fully de-linked from the cost chart and products can be sold at market-
linked prices at all stages of production. Incentives would be extended to Artisans and
Karyakartas.

Further, production & marketing support for products, which are self-sustainable, will
be phased out. Modified MDA shall be calculated at 30% of the Prime Cost, {cost of
raw material plus conversion charges up to grey cloth plus processing charges without
margins [establishment expenditure (25%) and trading, insurance & bank interest
(8%)]}. The Modified MDA shall be distributed amongst producing institutions (40%),
selling institutions (20%) and artisans (40%).
KVIC is the implementing agency.

Status: An amount of Rs. 171.53 crore has been disbursed by KVIC towards MDA (Khadi)
in 2014-15. In 2015-16, Rs. 167.74 crore have been disbursed by KVIC towards MDA
(Khadi), in 2016-17, Rs.33.53 crore have been disbursed by KVIC towards MDA (Khadi).
And during 2017-18 (upto 31st, December, 2017) Rs. 328.31 crore have been disbursed
by KVIC towards MDA (Khadi)
Intended The Khadi institutions, having valid Khadi certificate and categorized as A+, A, B and C,
beneficiaries are only eligible to avail MDA grant from KVIC.
Funds Allocated Rs 340.00 crore
(2017-18)
E. Technology Upgradation and Competiveness

I. Financial Support to MSMEs in ZED certification
Description The Ministry of Micro, Small & Medium Enterprises (MSME), Government of India has
launched on 18.10.2016 a new scheme ‘Financial Support to MSMEs in ZED Certification
Scheme’, for the benefit of Micro, Small & Medium Enterprises (MSMEs). The scheme will
be implemented in 22,222 MSMEs with the total Project Cost of Rs. 491.00 crore.
The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing
amongst MSMEs and ZED Assessment for their certification with the objectives like,
developing an Ecosystem for Zero Defect manufacturing in MSMEs, promoting adaption
of Quality tools / systems and Energy Efficient manufacturing, enabling MSMEs for
manufacture of quality products and to encourage MSMEs to upgrade their quality
standards in products and processes with adoption of Zero Defect production processes
and without impacting the environment, etc.
The scheme is an extensive drive to create proper awareness in MSMEs about ZED
manufacturing and motivate them for assessment of their enterprise for ZED (Bronze-
Silver-Gold-Diamond-Platinum) and support them. After ZED assessment, MSMEs can
reduce wastages substantially, increase productivity, expand their market as IOPs, become
vendors to CPSUs, have more IPRs, develop new products and processes etc.
The Quality Council of India (QCI) is the National Monitoring & Implementing Unit (NMIU)
to implement ZED scheme among MSMEs across the country.

10963 MSMEs are registered under ZED certification till 1st February, 2018. 5129 MSMEs
started Online Self-Assessment, out of which 1424 have completed so far. 242 MSMEs have
paid Fees for Desk Top Assessment and 60 MSMEs have paid Fees for Site Assessment. Out
of 38 cases presented before Rating Committee 08 MSME got Gold, 14 MSMEs got Silver,
09 MSMEs got Bronze and 07 MSMEs have No rating.
Intended MSMEs
Beneficiaries
Implemen Quality Council of India
tation
Funds Rs 17.6 crore (BE)

Allocated
(2017-18)
F. Other Services
I. National Scheduled Caste and Scheduled Tribe Hub

Description The Hub provides professional support to SC/ST entrepreneurs to fulfill the obligations
under the Central Government Public Procurement Policy for Micro and Small
Enterprises Order 2012, adopt applicable business practices and leverage the Stand
up India initiatives. The Scheme is implemented through National Small Industries
Corporation Ltd. (NSIC). The National SC/ST Hub carries out the following functions:
i. Collection, Collation and Dissemination of information regarding SC/ST enterprises
and entrepreneurs. ii. Capacity building among existing and prospective SC/ST
entrepreneurs through skill training and EDPs. iii. Vendor Development involving
CPSEs, NSIC, MSME-DIs and industry associations including DICCI. iv. Promoting
participation of SC/ST entrepreneurs in exhibitions and organizing special exhibitions
for this purpose. v. Mentoring and hand holding support to SC/ST entrepreneurs. vi.
Working with States as well as other organisations for SC/ST entrepreneurs so that
these enterprises can benefit from all of them. vii. Facilitating SC/ST entrepreneurs
participating in public procurement, eplatform of DGS&D and monitoring the progress.
viii. Facilitating credit linkages for SC/ST entrepreneurs. The Guideline of National SC/
ST Hub Scheme is available on the Ministry’s Website i.e. www.msme.gov.in.
The “National Scheduled Caste & Scheduled Tribe Hub” has been set up in the National
Small Industries Corporation Limited (NSIC), a public sector undertaking which is the
implementing agency
Status: During 2016-17, assistance provided for 58 domestic exhibitions and 14
foreign visit/participation in exhibitions benefitting 671 SC/ST MSMEs and 96 SC/ST
MSMEs respectively. 38 Special Vendor Development Programmes were also organized
participating 1561 MSMEs. In addition, 395 units were rated under Special Performance
& Credit Rating Scheme and 80 units were registered/renewed under Single Point
Registration Scheme.

Nature of Financial assistance is currently being provided under NSSH for the following sub-
Assistance schemes:
 Single Point Registration Scheme (SPRS)
 Special Marketing Assistance Scheme(SMAS)
 Subsidy for Performance and Credit Rating Scheme(SPCRS)
 Special Credit Linked Capital Subsidy Scheme (SCLCSS)

Application Who can apply: SC/ST owned Micro & Small Enterprises (MSEs), who are having
Process valid Udyog Aadhaar Memorandum No. (UAM No.) and enrolled on MSME Databank, are
eligible to apply.
How to apply: SC/ST Micro & Small Enterprises shall have to apply either online
on NSIC website www.nsicspronline.com or on the prescribed application form in
Duplicate and to be submitted to the concerned Zonal/Branch Office of NSIC located
nearest to the unit.
Whom to contact: General Manager (SPRS), NSIC Ltd., New Delhi Ph: 011-26926275
Email: [email protected]
Intended SC/ST MSEs and SC/ST Entrepreneurs
Beneficiaries
Funds allocated Rs. 60 crore
(2017-18)
II. Scheme for Promotion of MSMEs in N.E. Region and Sikkim

Description Setting up new and modernize existing Mini Technology Centres- The Scheme
envisage financial assistance to State Governments for setting up new and modernize
existing Mini Technology Centres. The quantum of financial assistance is equal to
90% of the cost of machinery/ equipment/buildings, not exceeding Rs. 10.00 crore.
Government of India funding would not be admissible towards cost of land.
Development of new and existing Industrial Estates-Financial assistance for
development of new and existing Industrial Estates. 80% of the cost of infrastructure
facilities not exceeding Rs. 8.00 crore will be sanctioned for development of new and
existing Industrial Estates. The infrastructure facilities will include power distribution
system, water, telecommunication, drainage & pollution control facilities, roads, banks,
storage and marketing outlets etc.
Capacity Building of Officers-Capacity Building of officers engaged in promotion
and development of MSMEs, by deputing them for various Techno-managerial training
programmes in MSME Institutions such as NI-MSME, Hyderabad & MSME Technology
Centres The expenditure towards training fee and the boarding/lodging expenses of
officers would be borne by Government of India under the scheme and would be paid
directly to the Training Institutions.

Other Activities-The Scheme funds can also be used for undertaking various activities
such as Research Studies, Strengthening of Institutes etc. These can be specially designed
Projects formulated by State Governments or other organizations for development
and promotion of enterprises in the areas of honey, bamboo, organic products etc. IT
modules for ease of doing business for micro and small enterprises working in NER and
Sikkim can also be developed. Each such intervention can be upto Rs. 1.00 crore.
Status: Till 31st, December 2017, under the scheme, Rs.2.50 crore have been
sanctioned and released to Government of Tripura, Rs. 1.45 crore have been sanctioned
to Government of Assam (to be released after the releasing of Govt. of Assam’s share)
for technology centre at Tinsukia and released on 2nd instalment of Rs. 2.00 crore is in
process to the NTTC Dimapur, Nagaland.
Intended All MSMEs

beneficiaries
Fund Allocation Rs. 5.00 crore (BE)
(2017-18)

Targeted activities for the North-Eastern
Region, Women, Disabled Persons, and
International Cooperation
5.1 Activities for the North-East Region

5.1.1 Budgetary outlay reserved for the North-East Region
5.1.1.1 Pursuant to the Government’s Policy of earmarking 10% of the total funds for NER, under
the Schemes/Programmes of M/o MSME, an outlay of Rs.648.20 crore in BE 2017-18 had
been earmarked exclusively for the Region which comprises he states of Assam, Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
5.1.1.2 Details of funds earmarked to ARI Division and funds released by the Ministry for the NER
during the last three years and 2017-18 are given in the Table below.
Table 5-1: Funds released ARI Division for NER during 2014-15 to 2017-18
Year Budget Allocation (RE) 10% Budget Expenditure NER
for ARI Division Allocation to NER
2014-15 1500.00 151.00 101.40

2015-16 1754.18 175.40 163.47
2016-17 1717.55 171.76 143.25
2017-18 2065.48 (BE) 206.55 175.36*
5.1.2 KVIC in the North-East

5.1.2.1 In order to ensure effective implementation and monitoring of Khadi and Village Industries
(KVI) programmes in the NER, Khadi and Village Industries Commission (KVIC) have a
Zonal Office at Guwahati and other field offices in NE States. KVI programmes are being
implemented in the region through State KVI Boards, registered institutions, cooperative
societies and entrepreneurs.
5.1.2.2 Village industries which are being set up in these hilly and backward areas include forest
based industries, pottery, beekeeping, processing of cereals and pulses, fibre, fruit & vegetable
processing industries, soap, activities like carpentry and blacksmithy and also khadi and
polyvastra.

5.1.2.3 KVIC is implementing the following schemes in the North East:
 PMEGP - Special efforts have been made by KVIC to provide employment in NERunder
PMEGP. In 2016-17 a total number of 11690 projects were assisted by utilizing margin
money subsidy of Rs. 141.91 crore. In the current year, 2017-18(up to 31.12.2017)
a total number of 3499 projects were disbursed by banks involving margin money
subsidy of Rs. 57.13 crore.
 AABY - A total of 5065 artisans have been covered under the Aam Admi Bima Yojana
of KVIC so far to provide insurance to the khadi artisans/weavers.
 Exhibitions: Transport subsidy is provided by KVIC to the participant institutions in
these exhibitions. KVIC also continued reservations of 10 per cent of space in Khadi
Gramodyog Bhawan, New Delhi for the products produced by the units located in NER.
5.1.2.4 PMEGP Performance in North-Eastern States
No. of Persons Benefitted under PMEGP

States 2013-14 2014-15 2015-16 2016-17 2017-18 (upto
31, Dec, 2017)
Assam 29332 15535 9026 6028 1529
Meghalaya 1386 3680 4824 329 46
Manipur 5277 829 2715 1265 319
Tripura 9074 6333 5355 2297 489
Nagaland 4373 2407 4998 1018 825
Mizoram 5050 6736 9072 425 133
Sikkim 255 54 397 27 16
Arunachal Pr. 6570 2871 104 301 140
5.1.3 Growth & Production of KVIC in North East

5.1.3.1 KVI production in the North Eastern region has increased consistently over the past five years.
Figure 5-2 shows that the production of Khadi has increased in every single state within the
region during this period.
5.1.3.2 The absolute number of persons employed by KVIs has also increased consistently since
2012. Figure 5-3 shows a consistent increase in the number of persons employed in every
single state within this period. In addition, there are a total of 46 Khadi artisan institutions in
the North East region employing 10.47 lakh artisans. The complete information is available
at: http://www.kviconline.gov.in/claims/artisanData/index.jsp

Figure 5-2: KVI Productions in NER 2012-17
Figure 5-3: KVI Employment in NER 2012-17
5.1.4. DC-MSME
5.1.4.1. The Office of DC (MSME) has MSME-DIs at Gangtok (Sikkim); Guwahati (Assam); Imphal
(Manipur); Agartala (Tripura) and also branch MSME-DIs at Aizwal (Mizoram); Dimapur
(Nagaland); Itanagar (Arunachal Pradesh); Diphu (Assam); Silchar (Assam); Tezpur (Assam);
Shillong (Meghalaya) and Tura (Meghalaya).
5.1.4.2 To strengthen the MSME initiatives in the NER, the Development Commissioner (MSME),
Govt. Of India implemented the following activities during 2016-17 in all north-eastern
states of India through Ministry of Development of North Eastern Region, GOI. A number of
training activities are being conducted by NIMSME, details are available at: http://msme.gov.
in/WriteReadData/eBook/EDP_Calendar_Training_Programme_Final_Inner__2nd_Draft.pdf):
 Sensitizing all State government officials in NER on various latest schemes (PMEGY,
ASPIRE, MSE-EDP etc.).

 Provide various trainings to officers of District Industry Centers & other line
departments & NGOs/MFIs on EDP in various sectors including Agriculture and allied
sectors, Tourism etc.
 Provide Enterprise development trainings to existing MSMEs.
 Other flagship schemes of GOI like Startup India, Stand up India & MUDRA etc.
5.1.4.3 Initiatives of the Office of DC-MSME
 Participation in International Trade Fairs/ Exhibitions - For Women/SC/ST

entrepreneurs & entrepreneurs from North Eastern Regions, Govt. of India reimburses
100% space rent and economy class air fare.
 MSE-CDP: GoI grant is 90% for CFCs in NE & Hill States, Clusters with more than 50%
(a) micro/ village (b) women owned (c) SC/ST units.
 Infrastructure Development: The MSME Ministry provides grants for infrastructure
development under the CDP scheme. The GoI grant is restricted to 60% of the cost of
project of Rs 10.00 crore. However, GoI grant is 80% for projects in NE & Hill States,
industrial areas/ estates with more than 50% (a) micro (b) women owned (c) SC/ST
units.
 Under the Entrepreneurship Development Programme, 20% of the targeted EDP and
ESDP of the duration of 2 weeks and 6 weeks respectively, are conducted exclusively
for the weaker sections of the Society (SC /ST/Women/Physically Handicapped), for
which no fee is charged. In addition, a stipend is provided for such attendees.
5.1.5 NSIC in North Eastern region
5.1.5.1 NSIC has a network of offices in NER. This includes Branch Office at Guwahati and Sub-Offices
at Tinsukia (Assam), Imphal (Manipur); Dimapur (Nagaland); Itanagar (Arunachal Pradesh);
Shillong (Meghalaya) and Agartala (Tripura). NSIC Incubation Centre, Guwahati provides
training in various trades like Fashion Designing, Food Processing / Bakery; Fancy Bag &
School Bag manufacturing; Decorative Candle Making Course and Computer Hardware and
Networking programme.
5.1.5.2 NSIC – During the year 2016-17 (up to December, 2016), NSIC has provided training to 21313
women under various training programmes. Data and updated information to be provided
on number of women trained in each year for the past five years.
5.2 Activities targeted at welfare of women

5.2.1 As Per the NSS 73rd Round of NSSO, there are a total of estimated approximately1,23,90,523
Women owned proprietary MSMEs in the country. Figure 5-4 shows the percentage
distribution of male owned proprietary MSMEs in the country. More than 20% proprietary
MSMEs are owned by women.

5.2.2 The main focus of the schemes/programmes undertaken by the Organisations of the
Ministry is thus to provide/facilitate a wide range of services required for accelerating
the development of MSMEs. Nevertheless, there are a few schemes/programmes which
are individual beneficiary oriented. While, there are several schemes, wherein women are
provided extra benefits/concessions/assistance. The details of concessions for women may
be seen in the respective scheme guidelines as available on the Ministry’s website www.
msme.gov.in.

State-wise Distribution of Proprietary MSMEs by Gender of Owners [NSS 73rd Round]
Sl. State/UTs Male Female All Share of Stateamong Share of Stateamong
No. All MSMEs with All MSMEs with
Male Owners (%) Female Owners (%)
1 West Bengal 5583138 2901324 8484462 11.52 23.42
2 Tamil Nadu 3441489 1285263 4726752 7.10 10.37
3 Telangana 1459622 972424 2432046 3.01 7.85
4 Karnataka 2684469 936905 3621374 5.54 7.56
5 Uttar Pradesh 8010932 862796 8873728 16.53 6.96
6 Andhra Pradesh 2160318 838033 2998351 4.46 6.76
7 Gujarat 2375858 826640 3202499 4.90 6.67
8 Maharashtra 3798339 801197 4599536 7.84 6.47
9 Kerala 1647853 495962 2143816 3.40 4.00
10 Rajasthan 2261127 380007 2641134 4.67 3.07
11 Madhya Pradesh 2275251 370427 2645678 4.70 2.99
12 Jharkhand 1250953 310388 1561341 2.58 2.51
13 Odisha 1567395 295460 1862856 3.24 2.38
14 Punjab 1183871 224185 1408056 2.44 1.81
15 Bihar 3239698 168347 3408044 6.69 1.36
16 Haryana 831645 98309 929953 1.72 0.79
17 Delhi 827234 86742 913977 1.71 0.70
18 Manipur 86383 86604 172987 0.18 0.70
19 Jammu & Kashmir 624056 74785 698841 1.29 0.60
20 Chhattisgarh 727203 71201 798403 1.50 0.57
21 Assam 1128411 66665 1195076 2.33 0.54
22 Himachal Pradesh 329595 50368 379963 0.68 0.41
23 Meghalaya 72191 39462 111653 0.15 0.32
24 Tripura 179169 28042 207212 0.37 0.23
25 Puducherry 65350 27072 92422 0.13 0.22
26 Uttarakhand 380000 20964 400964 0.78 0.17
27 Nagaland 65778 20865 86643 0.14 0.17
28 Mizoram 20439 13698 34137 0.04 0.11
29 Goa 57133 10815 67948 0.12 0.09
30 Arunachal Pradesh 16153 6274 22427 0.03 0.05
31 Chandigarh 44321 5560 49881 0.09 0.04
32 Sikkim 20880 5036 25916 0.04 0.04
33 A & N Islands 14302 4026 18328 0.03 0.03
34 Dadra & Nagar Haveli 12900 2629 15529 0.03 0.02
35 Daman & Diu 5880 1560 7441 0.01 0.01
36 Lakshadweep 1384 488 1872 0.00 0.00
37 ALL 48450722 12390523 60841245 100.00 100.00

Figure 5-4: Percentage share of states in MSMEs with women owners

5.2.3 PMEGP– Under PMEGP higher subsidy is provided to women beneficiaries. Since inception
(i.e. 2008-09 to 31.12.2017), 116447 projects have been assisted to women entrepreneurs
under PMEGP. Data on number of women beneficiaries for each over the past five years is as
follow:
Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18(As on

31.12.2017)
Women Beneficia- 13612 13448 13394 11356 14768 8464*
ries under PMEGP
*Provisional
Figure 5-5: Women beneficiaries under PMEGP 2011-2017
5.3 Welfare for Persons with disabilities

5.3.1 This Ministry is maintaining ‘reservation roster’ as per the instructions on the subject. The
vacancies arising out of 100-point roster for the disabled persons for the Ministry and
its attached O/o DC (MSME), are regularly intimated to the Department of Personnel and
Training for filling up of such posts. Besides, other facilities (like conveyance allowance), as
per the Government of India’s instructions, also provided to the disabled persons working in
various offices of the Ministry.
5.3.2 The NSIC and NIMSME are providing necessary reservation/preference for the training in
different fields of entrepreneurship development and related training modules.
5.4 International Cooperation

5.4.1 Worldwide, the MSMEs have been accepted as the engine of economic growth for promoting
equitable development. It is estimated that in terms of value, MSME sector accounts for
about 45% of the manufacturing output and around 40% of the total exports of the country.
MSMEs play an important role in export promotion of the country. To maintain its niche in the
international and global markets, MSMEs are required to remain globally competitive. They
have to continuously update themselves to meet the challenges emerging out of changes in
technology, changes in demands, emergence of new markets, etc.

5.4.2 With agility and dynamism, the sector has shown admirable innovation and adaptability to the
recent economic downturn and recession. However, MSMEs have been facing great challenge
in the era of globalization and liberalization. With its consistent growth performance and
abundant high skilled manpower, India provides enormous opportunities for investment,
both domestic and foreign. To exploit this potential, M/o MSME and its organisations, through
its various Schemes and Programmes, are providing support to the Indian MSME sector by
giving them exposure of the international market; foreign technology; sharing of experiences
and best management practices in the international arena. In continuation of this endeavour,
M/o MSME has entered into long term agreements, Memorandum of Understanding/Joint
Action Plan with 19 countries viz., Tunisia, Romania, Rwanda, Mexico, Uzbekistan, Lesotho,
Sri Lanka, Algeria, Sudan, Cote d’Ivoire, Egypt, Republic of South Korea, Mozambique,
Botswana, Indonesia, Vietnam, Mauritius, Sweden and UAE.
5.4.3 Significant Meetings with Foreign Dignitaries and Delegations
Ministry of Micro, Small and Medium Enterprises and its Organisations like O/o DC (MSME)
and NSIC hold discussions with foreign delegations for enhancement of bilateral cooperation
for the mutual benefits of MSMEs of the two countries. The details of such meetings/
discussions with respect to M/o MSME are given below:
 A delegation led by Mr. Cristian DIMA, Romanian Secretary of State for Business
Environment met Secretary (MSME) on 10 April, 2017 in New Delhi and discussed
matters relating to cooperation between the two countries in the field of MSMEs.
 A delegation led by Hon’ble Minister for MSME visited Mauritius from 12-14 May,
2017 to participate in the 2nd India-Mauritius Joint Committee Meeting (JCM) and to
participate in the International SME Innovation & Technology Fair 2017. A number of
proposals were made by Mauritius side seeking technical assistance, visit of experts
from India and grant for setting up institution in Mauritius. The Indian side proposed
setting up of a virtual technology exchange centre with active participation of NSIC
and SMEDA counterpart organization of NSIC. The delegation under the leadership of
Hon’ble Minister for MSME also met the President, the Prime Minister and the Minister
Mentor and Minister for Defence of Mauritius and discussed bilateral matters relating
to MSME sector, economic development etc.
 A delegation led by H.E. Ms. Ann Linde, Hon’ble Minister of EU Affairs and Trade of
Sweden met Hon’ble Minister for MSME on 18 May, 2017 in New Delhi. The two sides
discussed about enhancing cooperation in MSME sector.
 A delegation led by H.E. Eng. YarubQudah, Minister of Ministry of Industry and Trade
Supply, Government of Kingdom of Jordan had a meeting with Hon’ble Minister
(MSME) on 5th July, 2017 in New Delhi discussed bilateral issues relating to MSME
sector.

 A delegation led by Mr. Iljoon Lee, Deputy Director of International Affairs Division,
Small and Medium Business Administration (SMBA) of Republic of Korea met Smt.
AlkaNangiaArora, Joint Secretary (SME), M/o MSME on 20th July, 2017 in New Delhi
and held discussion regarding setting up of a technology centre in NSIC, New Delhi.
 A six-member delegation from Asian and Pacific Center for Transfer of Technology
(APCTT), National Focal Point of the Islamic Republic of Iran led by Dr. BehzadSoltani,
President and Chairman of the Board Innovation and Prosperity Fund (IPF) along
with other officials met Dr. Arun Kumar Panda, Secretary (MSME), M/o MSME on 12th
September, 2017 in New Delhi and discussed bilateral issues relating to MSME sector.
 A delegation led by Shri Giriraj Singh, Hon’ble Minister of State (Independent
Charge) for MSME visited Mauritius from 1-3 November, 2017 to participate in
the commemorative events to mark Aapravasi Divas 2017 and also had meetings
with Government functionaries to discuss various issues promoting international
cooperation.
 A two-member delegation led by Mr. Hung Yang, Executive Director of Economic
Division, Taiwan met Smt. AlkaNangiaArora, Joint Secretary (SME), M/o of MSME on
13th November, 2017 in New Delhi to discuss issues relating to MSME sector.
 A delegation led by H.E. Mr. Siarjuddin Hamid Yousif, Ambassador of the Republic of
Sudan met Dr. Arun Kumar Panda, Secretary, M/o MSME on 27th November, 2017 and
discussed issues relating to MSME sector.

General Statutory Obligations
6.1 Official language

6.1.1 The Union of India is constitutionally obligated to use the Hindi in Devenagari script as its
official language. Government policy aims at progressively increasing the use of Hindi in
official work. Effective steps were taken during the year in the Ministry of MSME to ensure
the compliance of Official Language Policy, implementation of the annual programme and
compliance with the various orders of the Government of India on the recommendations of
the Committee of Parliament on Official Language.
6.1.2 Progress has been made in the progressive use of Hindi in official business. The Ministry has
a fully functional Hindi language website at: http://msme.gov.in/mobhin/Home.aspx.
The Office of the DC also has a fully functional Hindi website at: http://laghu-udyog.gov.in/.
6.1.3 All documents such as general orders, notifications, press communiqué, contract,
agreement, tender forms and notices, resolution, rules, memorandum/ office memorandum,
administrative reports and official papers laid before a House or both the Houses of Parliament
under the Section 3(3) of the Official Languages Act, 1963 are issued bilingually, i.e. both in
Hindi and English. General orders meant for departmental use were issued in Hindi only.All
letters received in Hindi were replied to in Hindi.
6.1.4 The meeting of Hindi Advisory Committee of M/o Micro, Small and Medium Enterprises
was held on 10th Nov, 2017 under the chairmanship of the Hon’ble Minister of State of
MSME (I/C) wherein important decisions were taken. The Departmental Official Language
Implementation Committee under the Chairmanship of the Joint Secretary (In-Charge of
Hindi) in the Ministry of MSME has already been constituted. Quarterly meetings of the
Committee were organized regularly and important decisions for use of Hindi in official work
were taken. Effective steps for ensuring compliance of the decisions have also been taken.
6.1.5 Correspondence in Hindi: Letters to State Governments, Union Territory and Central
Government offices located in regions ‘A’ and ‘B’ were issued in Hindi, to the extent possible.
Similarly, letters were sent in Hindi to Central Government offices located in region ‘C’ as per
the targets laid down in the Annual Programme. About 88% correspondence was made in
Hindi in region ‘A’, 88% in region ‘B’ and 80% in region ‘C’ up to the quarter ending September,
2017.
6.1.6 Section specified for working in Hindi: -There is a full-fledged Hindi Section in the Office of
the DC (MSME) to ensure compliance with the Official Language Policy of the Government
and to implement the directives of the Government of India. 18 sections specified for doing
their cent-percent work in Hindi

6.1.7 Monitoring and Inspections: In order to ensure compliance with the Official Language Policy,
monitoring is done through reviewing the quarterly progress reports. During the year,
sections of the Ministry and attached organizations i.e. Coir Board, Kochi and Central Coir
Research Institute, Alpuzha under the control of Ministry of MSME were inspected to ensure
the use of Hindi in official work and compliance with the Official Language policy.
6.1.8 The Third Sub-Committee of the Committee of Parliament on Official Language inspected the
office of the Khadi and Village Industries Commission, Bikaner and important suggestions
were given by the committee which were circulated for compliance to all the concerned
offices under the control of Ministry of Micro, Small and Medium Enterprises.
6.1.9 Hindi Month:Hindi month was celebrated from 14th September, 2017 to 13th October, 2017
in the Ministry of Micro, Small and Medium Enterprises. To encourage and motivate the
employees for doing official work in Hindi, various competitions like Hindi Typing, Hindi
Essay Writing, Noting and Drafting in Hindi, General Hindi, Speech in Hindi, Hindi Kavita,
Dictation and Hindi work in the sections etc. were organised. Hindi Workshops were also
organized during the period. A large number of officers and employees participated in these
events with enthusiasm. The messages of the Hon’ble Home Minister, the Cabinet Secretary
and Hon’ble Minister of State (IC), M/o MSME on the occasion of Hindi Day, 2017, were
circulated in the Ministry of MSME as well as in its attached and subordinate offices for
information and compliance.
6.1.10 Use of Hindi in statutory bodies:

6.1.10.1 KVIC: Khadi and Village Industries Commission (HQ), Mumbai has a full -ledged Hindi
Department which is responsible to implement the official language policy and guidelines
issued from time to time by the Department of Official Language, Ministry of Home Affairs.
Hindi Fortnight was celebrated from 14th – 28th September, 2017 in which various Hindi
competitions were held and during the period winner participants of five competitions held
were rewarded. The meetings of Official Language Implementation Committee and Hindi

Committee and workshops were organized regularly in the Commission.The website of the
commission is bilingual. The full compliance of the section 3(3) of Official Languages Act,
1963 is ensured in the commission.
6.1.10.2 Coir Board: Coir Board, being a part of the Govt. of India, under the administrative
control of Ministry of MSME, is continuing its efforts to promote the use of official language
of the Union in all its establishments. Quarterly Hindi workshops were conducted during
the reporting year in Head Office with a view to make the staff aware of Official Language
programmes and also to motivate them to use Hindi in their official work. Official Language
inspections were conducted in Coir Bhavans/Sub Offices of the Board along with internal
audit inspections. Eight workshops were organized upto December, 2017 wherein 70 and
21 officials were trained.
6.1.10.3 NSIC:NSIC continuously strives to promote the use of Hindi in official work. A full-fledged
Hindi Section with adequate staff is functioning at the corporate office of Delhi. The meetings
of Official Language Implementation Committee and Hindi Workshops were regularly
organized in NSIC. During the year, Hindi Fortnight was celebrated from 1st September, 2017
to 15th September, 2017 in which various Hindi competitions were organized.
6.1.10.4 Mahatma Gandhi Institute for Rural Industrialization (MGIRI): Hindi fortnight was
celebrated from 14 to 27 September, 2017 in the institute. During this occasion various events
were organized on topics like “present status of hindi and challenges”, “various aspects of
official hindi”, “Hindi in social media”, and “promotion of hindi in South Indian states –Tamil
Nadu. All officers and staffs were actively participated and presented their views.
For the promotion and implementation of official language in the institute, quarterly
meetings of official language implementation committee were organised.
6.2 Vigilance
6.2.1 The Vigilance Division of the Ministry is headed by a part-time Chief Vigilance Officer (CVO)
of the rank of Joint Secretary who functions as the nodal point for all vigilance matters, in
consultation with the Central Vigilance Commission and Investigating Agencies.
6.2.2 The Ministry is implementing the guidelines/instructions issued by the Department of
Personnel & Training and the Central Vigilance Commission on creating greater awareness
of vigilance among the users of its services. During the period under report, the references/
vigilance complaints received from various sources in the Ministry/Attached Office/
Organizations under the Ministry were replied/disposed off.
6.2.3 Vigilance Awareness Week was observed from 30th October, 2017 to 4th November, 2017.
6.2.4 The Vigilance Division also deals with the appeals preferred by employees of the organizations
functioning under the Ministry on the penalties imposed on them as also complaints, etc.
received against the functionaries of these organizations. The following functions are also
performed by the Division:-

i. Maintenance of Annual Performance Appraisal Reports (APARs) of Officers and Staff
including online system of SPARROW https://sparrow.eoffice.gov.in
ii. All cases falling under CCS (Conduct) Rules, 1964 including Annual Property Return
Statement of the employees and information under Lokpal.
iii. Safe custody of mortgage bonds/deeds.
iv. Vigilance clearance for administrative purposes.
6.2.5. During the period under report, almost 90% complaints were closed in consultation with
Central Vigilance Commission, wherever applicable. Many complaints are at an advanced
stage of investigation.
6.3 Citizen’s Charter

6.3.1 Citizens’/ Clients’ Charter for M/o MSME have been prepared and the same can be viewed
at Ministry’s website. This Charter consists of a Declaration of the Ministry, incorporating its
mission and commitment to the Micro, Small and Medium Enterprises and for the people of
India, in general.
6.3.2 The Information and Facilitation Counter of the Ministry, located on the ground floor
(between Gate No. 4 and 5), Nirman Bhavan, New Delhi, provides information on the services
and activities of the Ministry and its organisations. It also receives RTI applications as well as
fees, if any, by RTI applicant.
6.3.3 Annual Reports and Handbook on Self Employment have been published and are available
for the information of potential entrepreneurs, policy makers and others. The website of
the Ministry, i.e., www.msme.gov.in provides all the relevant information and link to its
organisations.
6.3.4 The detailed Citizens’/ Clients’ Charter of the Ministry is available on the website of the
Ministry.
6.3.5 Complaints: TheDepartment of Administrative Reforms and Public Grievances (DAPRG)
have created a portal for public grievances - http://pgportal.gov.in. Any person can lodge
his grievance on this portal. All grievances received by DAPRG, Prime Minister’s Office and
President Secretariat are forwarded to the concerned Ministries through this portal/software.
Grievance pertaining to other Ministries/Subordinate organisations can be transferred
online. M/o MSME, O/o DC (MSME), NSIC and all the 24 Responsibility Centres have been
provided link to http://pgportal.gov.in. The MSME Ministry and its organisations are
promptly attending to the grievances. The Ministry has also started MSME internet grievance
monitoring system to track and monitor other grievances and suggestions received in the
Ministry.The address, phone and fax numbers of the Information and Facilitation Counter
and the Grievance Cell are as follows:

Particulars Website Address Organisation
1. Grievance Cell www.msme.gov.in M/o MSME
Additional Development Commissioner, Office of the www.dcmsme.gov.in O/o DC (MSME)
Development Commissioner (MSME), Room No.716,
Nirman Bhawan, New Delhi – 110108. Tel: 23061277, www.nsic.co.in NSIC, New Delhi
Fax: 23061804
www.nimsme.org NI-MSME, Hyderabad
www.kvic.org.in KVIC, Mumbai
2. Information and Facilitation Counter, Gate No. 4, Ground
Floor, Nirman Bhavan, New Delhi – 110108. Tel. No. www.coir-india.com Coir Board, Kochi
23062219 www.mgiri.org MGIRI, Wardha
6.4 Right to Information

6.4.1 For information under the RTI Act, 2005, citizens may approach the Public Information
Officer (RTI) located between Gate No. 4 & 5, Nirman Bhavan, (O/o DC (MSME)), New Delhi
on any working day. Information regarding RTI requests and appeals is provided below.
Table 15: Details of RTI applications received and their status
Requests Rejected Information Transferred Returned Pending
received provided to other Pub- Requests
lic Authority
April 2017 – 255 0 125 121 9 0
December- 2017
2016-17 518 0 224 267 27 0
Table 16: Details of appeals under RTI Act, 2005

Opening Appeals Initial action Information Returned to Pending
balance Received to be taken provided applicant appeals
April 2017 – 0 1 0 1 0 0
December, 2017
2016-17 0 15 0 15 0 0
6.4.2 The complete information in respect of the Ministry and the other Public Authorities of the
Organisations under this Ministry is regularly uploaded on the website of the Ministry. The
details of the CPIOs’/Appellate Authority are also available at respective Office website. The
latest list of Nodal CPIOs of the Ministry and its organisations is at Annexure 4.
6.5. Prevention of Sexual Harassment

 In accordance with the provisions contained in the Sexual Harassment of Women at
Work Place (Prevention and Redressal) Act, 2013, an Internal Complaints Committee
has been constituted in the Ministry.
 During the year 2017-18 (i.e. upto December 2017) no case was reported to the
Internal Complaints Committee and no case is pending with the ICC.

 The online complaint management system — ‘SHe-box’ (sexual harassment
electronic box) — introduced by the Ministry of Women and Child Development
to enable women employees of the Central Government to file complaints directly
has been given wide publicity by the Ministry among its employees and attached/
subordinate organisations.

Annexure
1. PLAN ALLOCATION AND EXPENDITURE DURING
2014-15, 2015-16, 2016-17 AND 2017-18
(Rs. in crore)
Items 2014-15 2015-16 2016-17 2017-18

A. SME DIVISION
BE 227.00 129.28 310.99 121.00
RE 200.00 143.82 160.73 ------
EXPENDITURE 192.42 131.11 121.50 71.01 *
B. ARI DIVISION
BE 2042.00 1651.22 1825.00 2065.48
RE 1500.00 1744.18 1717.54 ----
EXPENDITURE 1427.08 1655.03) 1686.39 1781.94 *
C. O/o. DC (MSME)
BE 1058.00 832.01 864.00 4295.48
RE 800.00 732.00 3107.93 ----
EXPENDITURE 771.69 661.42 1365.12 3531.91 *
TOTAL BE 3327.00 2612.51 2999.99 6481.96
TOTAL RE 2500.00 2620.00 4986.20 -
TOTAL 2391.19 2447.56 3173.01 5384.86*
EXPENDITURE
*(upto 31.12.2017)

2. List of Nodal CPIOs
Sl. Name, Designation and Name, Designation and Subject Matter
No. Telephone of CPIO (S/Shri) Telephone of Appellate
Authority (S/Shri)
1. Magan Lal L.Haokip, Distribution of all the RTI applica-
Under Secretary, Director tions related to M/o MSME among
the concerned CPIOs. The subject-
M/o MSME, 23061431
wise list of CPIOs are available on
Udyog Bhavan, New Delhi. website www.msme.gov.in
23063293
2. R C Tully Santanu Mitra, Distribution of all the RTI applica-
Director, Addl. Development tions related to Office of the De-
Commissioner, velopment Commissioner (MSME)
Office of the DC (MSME),
among the concerned CPIOs. The
Nirman Bhavan, New Delhi. Office of the DC(MSME),
subject-wise list of CPIOs are avail-
011-23062992 Nirman Bhavan, able on website www.dcmsme.gov.
New Delhi. in
011-23062477
3. Manoj Lal A.K. Mittal Distribution of all the RTI applica-
Chief General Manager, Director Finance tions related to the National Small
Industries Corporation Limited
NSIC Limited, NSIC Limited,
among the concerned CPIOs. The
NSIC Bhavan, NSIC Bhavan, subject-wise list of CPIOs are avail-
Okhla Industrial Estate, Okhla Industrial Estate, able on website www.nsic.co.in
New Delhi-110020 New Delhi-110020
011-26926275, 011-26310549, dfin@
[email protected] nsic.co.in
4. N. Muralia Kishore, Asstt. Reg- Dr. G P. Vallabh Reddy, All the matters related to NIMSME.
istrar, Chief Administrative The details of CPIOs are available on
National Institute for Micro, Officer website www.nimsme.org
Small and Medium Enterprises National Institute for Mi-
(NI-MSME), YousufGauda, Hy- cro, Small and Medium
derabad – 500 045 Enterprises (NI-MSME),
040-23633260, [email protected] YousufGauda, Hyderabad
– 500 045
040-23633203, cao@
nimsme.org
5. Amit Pura Chobin, Asst. Direc- Shri Om Prakash, Distribution of all the RTI applica-
tor, Director, tions related to Khadi and Village
KVIC, KVIC, 3 Irla Road, Industries Commission among the
concerned CPIOs. The subject-wise
3 Irla Road, Ville Parle (West),
list of CPIOs is available on website
Ville Parle (West), Mumbai www.kvic.org.in
Mumbai 022-26713538
022-26711037

6. Smt. Anita Jacob, Deputy Direc- K Anand Babu, Joint All the matters related to Coir Board.
tor, Director (Plg.) The details of CPIOs are available on
Coir Board, Coir Board, website www.coirboard.gov.in
Coir House, Coir House,
M.G. Road, M.G. Road,
Kochi-682016 Kochi-682016
0484-2351807 0484-2351807
7. Dr. M. Patnaik Dr. P.B. Kale, All the matters related to MGIRI.
Deputy Director Director, The details of CPIOs are available on
website www.mgiri.org
Mahatama Gandhi Institute for Mahatama Gandhi Insti-
Rural Industrialisation, tute for Rural Industriali-
Maganwadi, sation,
Wardha-442001 Maganwadi,
07152-253512 Wardha-442001
07152-253512, 13
director.mgiri@gmail.
com

3. Contact Addresses of the Offices of M/o MSME
and its Statutory Bodies
Sl. Name and Website E-mail Telephone Fax
No. Address of the
organisation
1 Ministry of Micro, Small www.msme.gov.in [email protected] 011- 011-
and Medium Enterprises, 23063800 23062315
Udyog Bhavan, New Delhi 23063802-06 23061726
– 110 107 23061068
2 Office of Development www.dcmsme.gov.in; [email protected] 011- 011-
Commissioner (MSME), www.laghu-udyog.com; 23063800 23062315
7th Floor, A-Wing, Nirman www.smallindustry. 23063802-06 23061726
Bhavan, New Delhi – 110 com 23061068
108
3 Khadi and Village Indus- www.kvic.org.in [email protected]. 022-26714320- 022-
tries Commission, (KVIC), in, [email protected]. 25/ 26716323/ 26711003
“Gramodaya” net.in, [email protected] 26712324/
3, Irla Road, Vile Parle 26713527-9/
(West), Mumbai - 400056, 26711073/
Maharashtra 26713675
4 Coir Board, “Coir House”, www.coirboard.nic.in, [email protected], 0484- 0484-
M.G. Road, Ernakulam, www.coirboard.gov.in [email protected] 2351807, 2370034
Kochi-682016, Kerala 2351788,
2351954,
2354397
5 National Small Industries www.nsic.co.in [email protected], 011- 011-
Corporation Limited 26926275 26932075
(NSIC), NSIC Bhawan, 26910910 26311109
Okhla Industrial Estate, 26926370
New Delhi – 110 020 Toll Free
1-800-111955
6 National Institute for www.nimsme.org [email protected] 040- 040-
Micro, Small and Medium 23608544-46 23608547
Enterprises (NI-MSME), 23608316-19 23608956
YousufGauda, Hyderabad 23541260
– 500 045
7 Mahatama Gandhi Insti- www.mgiri.org director.mgiri@gmail. 0752-253512 0752-
tute for Rural Industriali- com 240328
sation, Maganwadi,
Wardha-442001

4. State-Wise List Of MSME DIs And Branch MSME DI
Sl. State Name of the Location Address Land Line No. Fax No. E-mail ID
No. Institute
1 Andaman & Br. MSME-DI Port Blair DollygungIndustrail 03192-252308 brdcdi-pprt@
Nicobar (UT) Estate, P.O. Jungle Ghat, dcmsme.gov.in
Port Blair-744103 jangammouli@
yahoo.com
2 Andhra Br. MSME-DI Visakhapat- F-19-22, Block D IDA, 0891-2517942 0891- brdcdi-vish@
Pradesh nam Autonagar, Visakhapat- 2517942 dcmsme.gov.in
nam- 530012 /2701061
3 Telangana MSME-DI Hyderabad Narsapur Cross Roads, 040-23078857 040- dcdi-hyd@dcmsme.

Bala Nagar, Hyder- 23078857 gov.in
abad-500 037
4 Arunachal Br. MSME-DI Itanagar APIDFC Building, ‘C’ 0360-2291176 0360- brmsme.itan@
Pradesh Sector, 2291176 gmail.com
Itanagar-791111
5 Assam MSME-DI Guwahati Industrial Estate, M.R.D 0361-2550052, 0361- dcdi-guwahati@
Road , P.O. Bamuni- 2550298 2550298 dcmsme.gov.in
maidam, Guwaha-
ti-781021
Br. MSME-DI Silchar Link Road Point, N.S Av- 03842-247649 03842- brdcdi-silc@dc-
enue, Silchar-788006 241649 msme.gov.in
Br. MSME-DI Diphu (Kar- Amalipati, KarbiAn- 03761-272549 03671- brmsmediphu@
biAnglong) glong , Diphu-782460 272549 gmail.com
Br. MSME-DI Tezpur Darrang 03712-221084 03712- brdcdi-tezp@

College Road, 221084 dcmsme.gov.in
Tezpur-784001
6 Bihar MSME-DI Muzaffarpur Institute, 0621-2282486 0621- dcdi-mzfpur@
Goshala Road, P.O /2284425 2282486 dcmsme.gov.in
Ramna, Muzaffar-
pur-842002.
MSME-DI Patna Patliputra Industrial 0612-2262568 0612- dcdi-patna@dc-
Est.,Patna-800013 2262719 msme.gov.in
7 Chattisgarh MSME-DI Raipur Near Urkura Railway 0771-2427719 0771- dcdi-raipur@
Station, Bhanpuri In- 2422312 dcmsme.gov.in
dustrial Area, Raipur
(C.G)-492001
8 Dadra & Nagar Br. MSME-DI Silvasa Masat Industrial Estate, 0260-2640933 0260- brdcdi-silv@dc-
Haveli (UT) Silvassa-396230 2640933 msme.gov.in
9 Delhi (NCT) MSME-Ext. New Delhi Bal Sahayog Kendra, Connaught Place, dcdi-ndelhi@
Centre New Delhi. dcmsme.gov.in
MSME-DI New Delhi Shaheed Capt. Gaur 011-26847223, 011- dcdi-ndelhi@
Marg, Opp. Okhla 26838369, 26838016 dcmsme.gov.in
Industrial Estate, New
Delhi-110 020.
10 Goa MSME-DI Margoa Opp. Konkan Railway 0832-2705092 0832- dcdi-goa@dcmsme.
Station (Quepem Road), 2710525 gov.in
Margao-403 601.

No. Institute
11 Gujarat MSME-DI Ahmedabad Harsiddhh Camber, 4th 079-27543147, 079- dcdi-ahmbad@
Floor, Ashram Road 27544248 27540619 dcmsme.gov.in
(Gujarat), Ahmed-
abad-380014
Br. MSME-DI Rajkot 3rd Floor, Annexe 0281-2471045 0281- brdcdi-rajk@
Building, Amruta 2471045 dcmsme.gov.in
(Jasani) Building
Premises, Nr.Girnar
Cinema, M G Road,
Rajkot-360001
12 Haryana MSME-DI Karnal 11-A, Industrial Devel- 0184- 0184- dcdi-karnal@
opment Colony, Near 2208100/ 2208114 dcmsme.gov.in
ITI, Kunjpura Road, 2208113
Karnal-132 001.
Br. MSME-DI Bhiwani Iti Campus, Hansi Road, 01664-243200 01664- brdcdi-bhiw@
Bhiwani-125021. 243200 dcmsme.gov.in
13 Himachal MSME-DI Solan Electronic Complex, 01792-230265 01792- dcdi-solan@dc-
Pradesh Chambaghat, 230766 msme.gov.in
Solan-173213.
14 Jammu & Br. MSME-DI Jammu Tawi Industrial Estate 0191-2431077 0191- dcdi-jammu@
Kashmir Digiane, 2431077 dcmsme.gov.in
Jammu Tawi-180010
MSME-DI Jammu 36, B/C, Gandhi Nagar, 0191-2431077 0191- dcdi-jammu@
Jammu-180004. 2450035 dcmsme.gov.in
15 Jharkhand Br. MSME-DI Dhanbad Katras Road, Matkuria, 0326- 0326- brdcdi-dhan@
Dhanbad-826001. 23063380 23063380 dcmsme.gov.in
MSME-DI Ranchi Industrial Estate., 0651-2546133 0651- dcdi-ranchi@

Kokar, Ranchi-834001 2546235 dcmsme.gov.in
16 Karnataka MSME-DI Hubli Industrial Estate, Gokul 0836-2330389, 0836- dcdi-hubli@dc-

Road, Hubli-580 030 0836-2332334 2330389 msme.gov.in
MSME-DI Begaluru Rajaji Nagar, 080-23151540, 080- dcdi-bang@dc-
Industrial Estate, 080-23151581, 23144506 msme.gov.in
Bangalore-560 010. 080-23151582
Br. MSME-DI Mangalore L-11. Industrial Estate, 0824-2217936 brdcdi-mang@
Yeyyadi, dcmsme.gov.in
Mangalore-575005
Br. MSME-DI Gulbarga C-122, Industrial 08472-420944 bsjawalgi@yahoo.
Estate, M.S.K. Mill Road, co.in
Gulbarga-585102.
17 Kerala MSME-DI Thrissur Kanjany Road, 0487- 0487- dcdi-thrissur@
Ayyanthole, 2360686/638/ 2360536/ dcmsme.gov.in
Thrissur-680003 216
MSME-TI Thiruvalla Manjadi PO., 0469-2701336 0469- msmeti@dcmsme.
Thiruvalla, Pathana- 2701336 gov.in
mthitta-689105
MSME-TI/TS Ettumanur P.B..No. 7, Ettumanur, 0481-2535563 0481- msmeti-ettu@
Kottayam-686631, 2535523 dcmsme.gov.in
Kerala State
18 Lakshadweep MSME-Nucleus Lakshad- Amini, UT of 04891-273345 brdcdi-laks@

(UT) Cell weep Lakshadweep-682552 dcmsme.gov.in

No. Institute
19 Madhya Br. MSME-DI Gwalior 7, Industrial Estate, 0751-2422590 brdcdi-gwal@
Pradesh Tansen Road, dcmsme.gov.in
Gwalior-474004
Br. MSME-DI Rewa Udyog Vihar, Chorhatta, 0766-2222448 brdcdi-reva@
Rewa-486001. dcmsme.gov.in
MSME-DI Indore 10, Industrial Estate, 0731- 0731- dcdi-indore@

Polo Ground, 2421659/ 0731 2420723 dcmsme.gov.in
Indore-452015 2421037
20 Maharashtra Br. MSME-DI Aurangabad 32-33, Midc, Industrial 0240-2485430 0240- brdcdi-aura@
Area, Chikal Thana, 2484204 dcmsme.gov.in
Aurangabad-431210.
MSME-DI Mumbai KuriaAndheri Road, 91-22- 91-22- dcdi-mumbai@
Sakinaka, 28576090 28578092 dcmsme.gov.in
Mumbai-400072
MSME-DI Nagpur Block-C, C.G.O 0712-2510352 0712- dcdi-nagpur@
Complex, Seminary Hill, 2511985 dcmsme.gov.in
Nagpur-440006
21 Manipur MSME-DI Imphal C-17/18, Takyelpat, 0385-2416220 dcdi-imphal@
Industrial Estate, dcmsme.gov.in
Imphal-795 001.
22 Meghalaya Br. MSME-DI Tura Dakopgre, Near T. V 03651-222569 03651- brdcdi-tura@
Tower, Tura- 794101 222569 dcmsme.gov.in
Br. MSME-DI Shillong Opposite B. K . 0364-2223349 0364- brdcdi-shil@

Bajoria School, Shil- 2223349 dcmsme.gov.in
long-793001
23 Mizoram Br. MSME-DI Aizwal Br. MSME-DI, 0389-2323448 brdcdi-aizw@
College Veng. House No. dcmsme.gov.in
V-37 Near TAXI Stand.
Aizawl-796001
24 Nagaland Br. MSME-DI Dimapur Industrial Estate, 03862-248552 03862- brdcdi-dima@
Dimapur-795001. 248552 dcmsme.gov.in
25 Odisha MSME-DI Cuttack Vikas Sadan, College 0671-2548077 0671- dcdi-cuttack@

Square, 2548006 dcmsme.gov.in
Cuttack-753 003.
Br. MSME-DI Rayagada R.K.Nagar, 06852-222268 06856- brdcdi-raya@
Rayagada-765004 235968 dcmsme.gov.in
Br. MSME-DI Rourkela C-9, Industrial Estate, 0661-2507492 0661- brdcdi-rour@

Rourkela-769004. 2402492 dcmsme.gov.in
26 Punjab MSME-DI Ludhiana Near Pratap Chock, 0161-2531733, 0161- dcdi-ludhiana@
OppSangeet Cinema, 734 2533225 dcmsme.gov.in
Industrial Area- B,
Ludhiana - 141003
27 Rajasthan MSME-DI Jaipur 22 Godam Industrial 0141-2210553, 0141- dcdi-jaipur@
Estate, Jaipur-302006. 2212098 2210553 dcmsme.gov.in
28 Sikkim MSME-DI Gangtok Tadong Bazar, NH-10, 03592-231880 03592- dcdi-gangtok@

K K Singh Building, PO 231262 dcmsme.gov.in
Tadong,
Gangtok-737102.

No. Institute
29 Tamil Nadu MSME-DI Chennai 65/1, G.S.T Road, 044- 044- dcdi-chennai@
Guindy, P.B. 3746, 22501011/12 22341014 dcmsme.gov.in
Chennai-600 032 /13
Br. MSME-DI Coimbatore 386, Patel Road, Ram 0422-2230426 0422- brdcdi-coim@
Nagar, Coimbatore 2233956 dcmsme.gov.in
Br. MSME-DI Tuticorin No. 6 Jayaraj Road, 0461-2375345 dcdi-chennai@

Tuticorin 628003. dcmsme.gov.in
Br. MSME-DI Tirunelveli Shed No. 7& 8 Indus- 0462-2342137 Brmsmedi-tin@

trial Estate, Pettai, gmail.com
Tirunelveli 627010.
30 Tripura MSME-DI Agartala MSME-DI. Indranagar 0381-2326570 dcdi-agartala@
(Near I.T.I. Play dcmsme.gov.in
Ground) P.O. :- Kunja-
ban, Agartala- 7999006
31 Uttar Pradesh MSME-DI Agra 34, Industrial Estate, 0562- 0562- dcdi-agra@dc-
Nunhai, Agra-282 006 2280879/ 2523247 msme.gov.in
2280882
MSME-DI Allahabad E-17/18, Udyog Nagar, 0532-2697468 0532- dcdi-allbad@
Naini, 2696809 dcmsme.gov.in
Allahabad-211 009
MSME-DI Kanpur 107, Industrial 0512-2295070 0512- dcdi-kanpur@

Estate, Kalpi Road, 2295071, 2240143 dcmsme.gov.in
Kanpur-208 012. 2295073.
Br. MSME-DI Varanasi Chandpur I 0542-2370621 0542- brdcdi-vara@
ndustrial Estate, 2371320 dcmsme.gov.in
Varanasi-221106.
32 Uttaranchal MSME-DI Haldwani Kham BungalaCampis, 05946-221053, 05946- dcdi-haldwani@
Kaladungi Road, Hald- 220853 228353 dcmsme.gov.in
wani- 263 139.
33 West Bengal MSME-DI Kolkata 111&112, B.T Road, 033-25775531 033- [email protected]
Kolkata-700 108 25100524 m dcdi-kolkata@
dcmsme.gov.in
Br. MSME-DI Suri R. N. Tagore Road, Near 03462-255402 03462- brdcdi-birb@
(Birbhum) Police Lines, PO-Suri, 255402 dcmsme.gov.in
Distt. Birbhum, West snandy.msme@
Bengal, Pin-731101 gmail.com
Br. MSME-DI Durgapur RA-39 (Ground Floor), 0343-2547129 brdcdi-durg@
Urvashi (Ph.2), Bengal dcmsme.gov.in
Ambuja, Tarashankar- dipakchanda900@
Sarani, City Centre, hotmail.com
durgapur-713 216.
Br. MSME-DI Siliguri Industrial Estate, 0353-2542487 brdcdi-sili@
Sevoke Road, 2nd mile, dcmsme.gov.in
Siliguri- 734 001. monojit342@gmail.
com

Abbreviations
MSME Micro, Small and Medium Enterprises
AABY Aam Admi Bima Yojana
ARI Agro & Rural Industry
ASPIRE A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship
BI Business Incubators
BPL Below Poverty Line
CCA Carbon Credit Aggregation Centres
CDC Common Display Centres
CSO Central Statistics Office
CUY Coir Udyami Yojana
DBT Direct Benefit Transfer
DC (MSME) Development Commissioner (MSME)
DICs District Industries Centres
DPR Detailed Project Report
EC Economic Census
EET Energy Efficient Technologies
EM-II Entrepreneur Memorandum Part-II
ESDP Entrepreneurship Skill Development Programmes
GDP Gross Domestic Product
ICT Information and Communication Technology
IIT Indian Institute of Technology
IPFC Intellectual Property Rights Facilitation Centre
ISEC Interest Subsidy Eligibility Certificate

KVIC Khadi Village Industries Commission
LIC Life Insurance Corporation of India
MMDA Modified Market Development Assistance
MFI Micro Finance Institution
MGIRI Mahatma Gandhi Institute for Rural Industrialisation
MoSPI Ministry of Statistics and Programme Implementation
MoU Memorandum of Understanding
MSE-CDP Scheme for Micro & Small Enterprises Cluster Development Programme
MSMED Act Micro, Small and Medium Enterprises Development Act
NBMSME National Board for Micro, Small and Medium Enterprises
NER North-East Region
NGOs Non-Government organizations
NID National Institute of Design
NIMSME National Institute for Micro, Small and Medium Enterprises
NIT National Institute of Technology
NSIC National Small Industries Corporation
OBCs Other Backward Classes
PMAC Project Monitoring & Advisory Committee
PMEGP Prime Minister’s Employment Generation Programme
PPP Public Private Partnership
PRI Panchayati Raj institutions
QCI Quality Council of India
RBI Reserve Bank of India
REBTI Rural Engineering & Bio Technology Industry

SC Scheduled Caste
SEBI Securities and Exchange Board of India
SFURTI Scheme of Fund for Regeneration of Traditional Industries
SMAS Special Marketing Scheme
SME Small & Medium Enterprises
SPV Special Purpose Vehicle
SSPRS Subsidy of Single Point Registration Scheme
ST Scheduled Tribe
TEQUP Technology and Quality Upgradation
TREAD Trade Related Entrepreneurship Assistance and Development
UAM Udyog Aadhaar Memorandum

MSME AR 2017 18 Eng

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Annual Report

Annual Report 2017-18 i

Annual Report 2017-18 iii

Annual Report 2017-18 1

1.2 Mandate of the Ministry of MSME

2 Annual Report 2017-18

Enterprise Category Investment in plant & machinery

Micro Enterprises Does not exceed twenty five lakh rupees

Enterprise Category Investment in equipment

Micro Enterprises Does not exceed ten lakh rupees:

1.3 Organisational structure

Annual Report 2017-18 3

4 Annual Report 2017-18

Annual Report 2017-18 5

6 Annual Report 2017-18

The Technology Centre’s philosophy of integrated solutions for growth of industries is

Annual Report 2017-18 7

Apart from assisting State Governments for setting up of Technology Centres,

1.3.9 The organisational structure of the Ministry is depicted in the following

8 Annual Report 2017-18

Annual Report 2017-18 9

10 Annual Report 2017-18

Sl. Name of the Scheme Benefit Type Total no. of Total

Annual Report 2017-18 11

1.4.5.2 The key performance indicators of DBT are:

12 Annual Report 2017-18

Annual Report 2017-18 13

14 Annual Report 2017-18

Annual Report 2017-18 15

1. Establishment of Physical Infrastructure: This includes establishment of 15 New

16 Annual Report 2017-18

Annual Report 2017-18 17

1.4.14 MoU with NSIC for provision of services for MSMEs

18 Annual Report 2017-18

Annual Report 2017-18 19

20 Annual Report 2017-18

Annual Report 2017-18 21

2.1 Role of MSMEs in Indian Economy

(Figures in Rs. Crores adjusted for FISIM3 at current prices)

22 Annual Report 2017-18

Annual Report 2017-18 23

Activity Estimated Number of Enterprises (in lakh) Share (%)

* Non-captive electricity generation and transmission

Figure 2-1 Distribution of Estimated MSMEs (Nature of Activity Wise)

24 Annual Report 2017-18

Sector Micro Small Medium Total Share (%)

Rural 324.09 0.78 0.01 324.88 51

Urban 306.43 2.53 0.04 309.00 49

All 630.52 3.31 0.05 633.88 100

2.3.2. Type of Ownership of Enterprises

Annual Report 2017-18 25

Sector Male Female All

Rural 77.76 22.24 100

Urban 81.58 18.42 100

All 79.63 20.37 100

Category Male Female All

Micro 79.56 20.44 100

Small 94.74 5.26 100