Everything you need to know about MSME - Micro Small and Medium Enterprise. Its Organisational structure, schemes, training programmes, or setting up an Enterprise.

1. MICRO, SMALL AND MEDIUM ENTERPRISE
PRESENTED BY
SAVI ARORA
PGDM 2013-2015

2. What is an Enterprise?
A business or company.
Entrepreneurial activity, especially when accompanied by
initiative and resourcefulness.

3. Definitions of Micro, Small & Medium Enterprises
MSME are classified in two Classes:
(a) Manufacturing Enterprises- The enterprises engaged in the
manufacture or production of goods or employing plant and
machinery in the process of value addition to the final product
having a distinct name or character or use.
(b) Service Enterprises: The enterprises engaged in providing or
rendering of services and are defined in terms of investment in
equipment.

4. Investment Limit
The limit for investment in plant and machinery / equipment
for manufacturing enterprises.:
Manufacturing Sector
Enterprises 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

5. Investment Limit
The limit for investment in plant and machinery / equipment
for service enterprises.:
Service Sector
Enterprises Investment in Plant & machinery
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 crore rupees

6. MSME – Organizational Structure

7. Abbreviations Used
S. No. Abbreviations Descriptions
1 DC(MSME)
Development Commissioner (Micro, Small & Medium
Enterprises).
2 MSME-DI
Micro, Small & Medium Enterprises Development Institute.
Institute.
3 Br. MSME DI
Branch Micro, Small & Medium Enterprises Development
Development Institute
4 MSMEPTI
Micro, Small & Medium Enterprise Promotional Testing
Institute.
5 SME-TR Micro, Small & Medium Enterprise Tool Room.
6 CDGI Centre for Development of Glass Industry.
7 HTDDTC Hand Tool Design Development & Training Centre.
8 MSME (TC) Micro, Small & Medium Enterprises Testing Centre.
9 MSME (TS) Micro, Small & Medium Enterprises Testing Station.
10 ESTC Electronic Service & Training Centre.
11 IDEMI Institute for Design, Electrical Measuring Instruments.
12 FFDC Fragrance & Flavour Development Centre.

8. MSME-DI or Branch MSME-DI
There are 30 MSME-DIs and 28 Branch MSME-DIs set up in state capitals and other
industrial cities all over the country.
The main activities of these institutions are as follows:-
 Assistance/Consultancy rendered to existing units
 Preparation of State Industrial Profiles
 Preparation/Updation of District Industrial Potential Surveys
 Project Profiles, Industrial Training, ISO Programmes, EDPs/MDPs/IMCs & other
Special Training Programmes etc.

9. DIVISIONS/ SECTIONS – MSME – DI, Ldh
 Chemical Division
 Glass and Ceramics Division
 Food Division
 Mechanical Division
 SENET ( Small Enterprise Network )
 Metallurgy Division
 Industrial Management and Training Division
 Economic Investigation Division
 Hosiery Division

10. Schemes

11. National Manufacturing Competitiveness Programme
(NMCP) Schemes Under XI Plan
The Government has announced formulation of National
Competitiveness Programme in 2005
with an objective to support the Small and Medium Enterprises (SMEs)
in their endeavor
to become competitive and adjust the competitive pressure
caused by
liberalization and moderation of tariff rates.

12. Micro & Small Enterprises Cluster Development Programme
(MSE-CDP)
DC(MSME) launched MSE-CDP for holistic development of selected MSEs
clusters through value chain and supply chain management on co-operative
basis.
 addressing common issues such as improvement of technology, skills and
quality, market access, access to capital, etc.
 formation of self help groups, consortia, upgradation of associations
 create/upgrade infrastructural facilities in the new/existing industrial
areas/ clusters of MSEs.
 set up common facility centres (for testing, training centre, raw material
depot, effluent treatment, complementing production processes, etc).

13. Credit Linked Capital Subsidy Scheme for Technology
Upgradation
The Scheme was launched in October, 2000 aimed at facilitating Technology
Upgradation of Micro and Small Enterprises by providing 15% capital subsidy
(limited to maximum Rs.15 lakhs) for purchase of Plant & Machinery.
Maximum limit of eligible loan for calculation of subsidy under the scheme is
Rs.100 lakhs.
Presently, more than 1500 well established/improved technologies under 51
sub-sectors have been approved under the Scheme.

14. Credit Guarantee Fund Scheme
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched
by the Government of India (GoI) to make available collateral-free credit to the micro
and small enterprise sector.
The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries
Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund
Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee
Fund Scheme.
The credit facilities are both term loans and/or working capital facility up to Rs.100 lakh
per borrowing unit, extended without any collateral security and/or third party
guarantee, to a new or existing micro and small enterprise

15. Quality Upgradation through incentive for ISO 9000/ISO
14001/HACCP Certifiation
The Scheme envisages reimbursement of charges of
acquiring ISO-9000/ISO-14001/HACCP certifications to the
extent of 75% of the expenditure subject to a maximum of
Rs. 75,000/- in each case.

16. MSME MDA
The scheme offers funding for:
1. Participation in International Trade Fairs/ Exhibitions under MSME
India stall.
2. Sector specific market studies by Industry Associations/ Export
Promotion Councils/ Federation of Indian Export Organisation.
3. Initiating/ contesting anti‐dumping cases by SSI Associations and
4. Reimbursement of 75% of one time registration fee and 75% of
annual fees.

17. Export Promotion

18. Export Promotion
The Micro, Small and Medium Enterprises(MSME) Sector
contribute significantly to the manufacturing output,
employment and exports of the country.
It is estimated that in terms of value, the sector counts for
about 40 per cent of the total exports of the country.

19. Export Promotion
Export Promotion Strategy which includes:
 simplification of procedures,
 incentives for higher production of exports,
 preferential treatment to MSMEs in market development
fund,
 simplification of duty drawback rules, etc

20. Export Promotion
Training Programmes on Packaging for Exports are organized in
various parts of the country by all MSME-DI in association with
Indian Institute of Packaging (IIP), Mumbai.
All matters relating to Export-Import Policy, export related
problems, representations from Trade & Industry relating to
Export-Import issues etc., are also being looked after, in the EP
Division

21. Support for Entrepreneurial and Managerial
Development of SMEs through Incubators
The main objective of the scheme is to promote emerging
technological and knowledge based innovative ventures that
seek the nurturing of ideas from professionals beyond the
traditional activities of Micro, Small & Medium Enterprises
(MSMEs).
100 “Business Incubators” (BIs) are to be set up under
Technology (Host) Institutions

22. Building Awareness on Intellectual Property Rights (IPR)
The objective is to enhance awareness of MSME about
Intellectual Property Rights (IPRs) to take measures for the
protecting their ideas and business strategies.
Effective utilization of IPR tools by MSMEs would also assist
them in technology upgradation and enhancing
competitiveness.

23. TRAINING PROGRAMMES

24. TRAINING PROGRAMMES
Conduct Product & Process Oriented EDPs/SDPs for different target
groups such as educated unemployed youths. General & Technical
Graduates, women, ex-servicemen etc.
 Industrial Motivational Campaign:-
 Entrepreneurship Development Programme:-
 Entrepreneurial and Skill Development Programmes:-
 Management Development Programme:-
 Skill Development Programme:

25. Setting up a Micro, Small and Medium Enterprise
(a) Project Selection
(b) Technology and Machinery
(c) Arranging Finance
(d) Unit Development
(e) Filing of Entrepreneurs’ Memorandum & Addresses of DICs
(f) Approvals
(g) Clearances
(h) Quality Certification

26. Project Selection
It all begins with an Idea
Once the ideas are screened and a viable business opportunity emerges the project has
to be conceptualised in all its dimensions. The 4 Ps of Project Conception is:
- PRODUCT (Shape, Size and Nature)
- PROCESS (Technology to produce the product)
- PLACE (Location of Plant)
- PARTNER (Technological of Financial Collaborator)

27. Technology and Machinery
Process Selection
Choices of process technology emerge once the product is
finalised.
Technology intensive or labor intensive?
The main objective of National micro, small and medium
enterprises (NMSME) is to provide machinery and equipment to
small industrial units offering them long repayment period with
moderate rate of interest.

28. Arranging Finance
Financial assistance in India for MSME units is available from a
variety of institutions
I. Commercial/Regional Rural/Co-operative Banks.
II. SIDBI: Small Industries Development Bank of India (refinance
and direct lending)
III. SFCs/SIDCs: State Financial Corporations (e.g. Delhi Financial
Corporation)/State Industrial Development Corporations.

29. Unit Development
After deciding the issues of product and process, the next important
question is where to set the unit up?
 Construction of Building
 Getting the Utility Connections: Power Connection – LT, HT
 Getting 3M's Right
 Men
 Machinery
 Materials

30. Filing of Entrepreneurs Memorandum
The following form basis of evaluation:
 The unit has obtained all necessary clearances whether statutory or
administrative. e.g. drug license under drug control order, NOC from
Pollution Control Board, if required etc.
 Unit does not violate any locational restrictions in force, at the time of
evaluation.
 Value of plant and machinery is within prescribed limits.
 Unit is not owned, controlled or subsidiary of any other industrial
undertaking as per notification.
District Industries
Centre
Industrial Estate,
Ludhiana
0161-2532052
Fax: 0161-2534558
gmludhiana@punjabm
ail.gov.in

31. Approvals
 Every SSI unit has to comply with various regulations in force.
These include regulatory, taxation, environmental and certain
product specific clearances.
Exemption from Compulsory Licence
No industrial license is required except in case of 6 product
groups included in compulsory licensing
An entrepreneur can set up a SSI unit anywhere in the country
without any restriction

32. Clearences
 An entrepreneur has to obtain several clearances or
permissions depending upon the nature of his unit and
products manufactured.
Regulatory or Taxation Clearances : reg. under sales tax, central
excise act, ITO, partnership deed, power connection etc.
Environment & Pollution Related Clearances: For 17 sectors
which includes- Sugar, cement, thermal power, oil refinery etc.
Product Specific Clearances: For eg.: printing press, cold storage,
drug & pharmaceuticals etc.

33. Quality Certification
 To avail the certification of ISO-9000, a unit has to undertake
significant costs.
A scheme has been launched to give financial incentive to those
SSI units who acquire ISO-9000 certification, by reimbursing
75% of their costs of obtaining certification, subject to a
maximum of Rs. 0.75 lacs per unit.
The SSI units are also encouraged to participate in quality
awareness and learning programmes organised specially for
their benefit.

34. Congratulations!!
 Great! Now You have set up your own MSME Unit!
 Enjoy Being an Entrepreneur!
 Cheers!!

35.  THANK YOU!