Vibrant Gujarat Summit on Micro, Small and medium enterprise and their economic growth

Vibrant Gujarat
Micro, Small and Medium
Enterprises: Engine of
Modern Economic Growth

Table of Contents
1. MSME
1.1 MSME: Indian overview
1.2 MSME: Gujarat Scenario
1.3 MSME: District‐Wise Detail
1.4 Government Schemes for MSME

1. Micro, Small and Medium
Enterprises (MSMEs)

1.1. Micro, Small and Medium
Enterprises (MSMEs) :
Indian Overview

Micro, Small and Medium Enterprises (MSME) : Overview
The Government encourages and honors innovation and enterprise. The state and central government bodies
work in close coordination with the Entrepreneurs, Industry Associations, Banks and other stakeholders
through numerous field offices and technical institutions to help the ‘engines growth’ of India
Micro, Small and Medium Enterprises
( )
Classification of MSME(s)
Enterprises Manufacturing
Enterprises:
Service Enterprises:
Investment in
of growth MSME) contribute natioanally
• 8 percent of the country’s GDP
• 45 percent of the manufacturing output
Investment in Plant &
Machinery
Equipment
Micro Up to INR 2.5 Million Up to INR 1 Million
• 40 percent of the exports
• Largest share of employment after
agriculture
Small INR 2.5 Million – INR 50
Million
INR 1 Million – INR 20
Million
Medium INR 50 Million – INR 100 INR 20 Million – INR
Million 50 Million
Sources: msme.gov.in 5

Micro, Small and Medium Enterprises (MSME) : Overview
As per 4th All India Census of MSME 2006‐2007,
1. Enterprises have increased at an annual growth rate of 28.02%
2. Employment has increased at an annual growth rate of 26.42%
S. No. Factors Value
1 No. of enterprises
(Acknowledged)
1.56 Million
2 Employment generation 9.3 Million
3 Women‐led enterprises ~215,000 (~13.72 percent)
4 Rural enterprises ~707,000
About 45.20% of the enterprises were located in rural areas. There
are 6 000 ranging from traditional to high tech items
over 6,000 products high‐items,
which are being manufactured by the MSMEs in India.
Sources: msme.gov.in ; Annual Report 2012‐13 by Ministry of MSMEs, Government of India ; “Micro, Small and Medium Enterprise Finance in India‐2013” : 6
Report by International Finance Corporation (World Bank Group)

Distribution
• The figures brought out by the latest MSME Report by Ministry of MSME(s) revealed the
size of the registered MSMEs sector to be over 1.1 Million Enterprises
• Of the total registered working enterprises, the proportion of micro, small and medium
enterprises were 94 94% 4 89% and 0 17% respectively 94.94%, 4.89% 0.17% respectively. This comprises of 67.10%
manufacturing enterprises and 32.90% services enterprises.
Proportion of total registered working
enterprises
Sector‐Wise Distribution
0.17%
4.89%
16.1%
67.1%
16.8%
Manufacturing
Service
94.94%
Micro Small Medium
Repairing & Maintenenace
7 Sources: Gujarat Micro, Small & Medium Enterprises Report 2013

Growth of MSMEs in India
1,800,000
Number of MSME(s) in Registered Sector
1,564,000
1,600,000
1,400,000
818,550
1,101,045
1,200,000
1,000,000
800,000
367,396
581,290
600,000
400,000
174,319
200,000
0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
8
Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India

MSME Sector: Leading Industries (India)
Leading Industries: MSME Sector Manufacturing of Wearing Appearel; Dressing and Dying
8.75%
Manufacture of Food Products and Beverages
6.94%
3.21%
19.40%
Manufacture of Furniture; Manufacturing N.E.C
Manufacture of Fabricated Metal Products, Except Machinery
Equipment
2.33%
2.33%
3.64%
3.77%
6.20%
q p
Manufacture of Textile
Hotels and Restaurants
3.57%
Sale, Maintenance and Repair of Motor Vehicles and Motocyles; Retail
Sale of Automotive Fuel
Retail Trade, Except of Motor Vehicles and Motorcycles; Repair of
39.85%
Personal and Household Goods
Other Service Activities
Other Business Activities
9
Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India
Other

Micro, Small and Medium Enterprises (MSMEs)
The strength of Gujarat’s manufacturing sector lies in its strong base of micro, small and
medium scale enterprises (MSMEs)
 Ahmedabad Surat Rajkot Ahmedabad, Surat, Rajkot, Vadodara, Bharuch, Jamnagar, Bhavnagar and Valsad are the
major Multi‐Product MSME clusters in the state
 Total investment under MSME, between year 2010 ‐ 2014, stood at USD 7.7 billion
creating 1.39 million employment
Gujarat MSME Scenerio
0.55
Total MSMEs
in Gujarat (in
Millions)
Ahmedabad
Jamnagar
2.16 Employment
generation in
state (in
Rajkot
Vadodara
Bharuch
Surat and Tapi
Bhavnagar
11
Millions)
Valsad
Sources: MSME Division: Industries Comissioner Office, Gujarat

MSMEs in Gujarat
There are over 312,000 SSI(s) and over 261,000 MSME(s) in Gujarat as on March 2014
2500000
2000000
300000
250000
Cumulative Growth of MSME(s) in Gujarat
1500000
200000
1000000
150000
100000
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐2014
500000
0
50000
0
Number of MSME(s) Registered 4131 17317 35184 55177 83117 134898 203133 261760
Investment (in hundred thousand USD) 5005.52 18177.52 31334.63 44397.37 59323.82 78950.93 100507.07 121463.0333
Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958
Number of MSME(s) Registered Investment (in hundred thousand USD) Employment
12
Total number of SSI(s) and MSME(s) registered in Gujarat > 525,000

MSMEs in Gujarat
2500000
300000
250000
2000000
1500000
200000
1000000
150000
100000
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐2014
500000
0
50000
0
Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958
13

MSMEs in Gujarat
2500000
300000
250000
2000000
1500000
200000
1000000
150000
100000
2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 2011‐2012 2012‐2013 2013‐2014
500000
0
50000
0
Employment 76197 275404 527408 774568 1039569 1402534 1783701 2166958
14

Sector wise distribution of MSMEs in Gujarat
T t l )
Total MSME(s) Acknowledged up to 31 March 2014 Industry
10271
Total MSME( s)
Registered from
2006‐2014
Textiles 69817
Machinery and parts except electrical 15443
47279 69817
ac e ya dpa ts e cept e ect ca Basic Metal Industries 13153
Chemical & chemical Products 5459
Rubber & Plastic Products 4916
Food Products 4548
Electrical Machinery and Apparatus 3832
Non‐metallic mineral Products 3764
Leather 3749
15443
24084
eather Products Paper Products & Printing 3613
Mining and Quarrying 2567
Wood Products 2175
13153
3832 4548
5459
3749
2175
2567
3613
1746
997
Transport equipment and parts 1746
Beverages, Tobacco & Tobacco Products 997
Service Activities 24084
Trading 47279
15
4916
3764
Activities Others 10271

Availability of Skilled Man‐power
Gujarat has a good educational infrastructure with premier institutes in management management, technology technology, fashion fashion, design design, infrastructure planning
120
1140
6610
Sectorwise total
number of
seats in
Degree Colleges,
and pharmaceuticals
• Gujarat’s literacy rate of 79% is above the National average of 74%
• > 100 % Increase in seat availability in technical institutions over
last 3 years
• In 2001, Gujarat had 11 Universities which has increased to 48 in
118
72
71844
10017
556
12345 Gujarat, 2013
2013
• 441 vocational training institutes (Industrial Training institutes
(ITI's)) offering 87981 seats every year for semi‐skilled manpower
• Over 7 lakh students graduate every year
Knowledge Consortium of 30
8
2
105
Educational
Infrastructure
Gujarat
• Established by the Department of Education, Government of Gujarat
it envisions to generate and provide ideas and paradigms for
achieving excellence in education, educational management and
policy framing for education in general and higher education in
particular so as to ensure that Gujarat carves a unique niche for
it lf i th l b lk ld i t i th 21 t t
76
18
69308
Sectorwise
itself in the global knowledge society in the 21st century
Policy of State to create Industry Responsive, readily employable, skilled
manpower
The State government has introduced various schemes for training of
industry responsive manpower Engineering Diploma Engg
Pharmacy Diploma Pharma
Arch. And Allied Hotel and tourism
MBA MCA
number of
Degree
Colleges,
Gujarat, 2013
manpower. Currently Gujarat has 738 ITI(s) with a
total seats of 149,545 Seats
Sources: Directorate of Technical Education, Gujarat
16
NID

MSME Clusters in Gujarat
• The Government has identified a total of 106 product clusters in
Gujarat in, traditional and modern, across the districts
• Gujarat stands 1st in terms of the asset base of the MSME sector,
according to the Fourth Census of MSMEs
• State ranks 1st in integrated overall performance of MSMEs at
National Level, as per ISED Small Enterprise Observatory
•• The State Government has taken initiatives to extend support for
strengthening clusters through interventions such as
1. technology up‐gradation
2. quality improvement
3. setting up of common facility centers
4. skill development facilities, etc.
5. active assistance of R&D institutions, as well as industry
• Out of the total number of working
enterprises, 56.13% are located in the clusters
with an employment Contribution of 48.92% of
associations
• Micro and Small Enterprises ‐Cluster Development Program (MSE‐CDP)
is being implemented for holistic and integrated
the total MSME employment.
• Out of the total gross output in the MSME
sector, the contribution of clusters is 45.84%.
17
) g p g
development of micro and small enterprises in clusters.
• Of the total market value of fixed assets, the
combined share of units in clusters is 55.20%.
Sources: MSME Division: Industries Comissioner Office, Gujarat ; Gujarat MSME Report 203

Product Clusters in Gujarat
Plastic Products
Paper Products
Chemical Industry
Engineering
Textile Industry
Food Products
Mineral Products
18
Others
Sources: Gujarat Micro, Small & Medium Enterprises Report 2013

1.3. MSME : District‐wise Detail
19

Ahmedabad
Dyes and Chemicals
Textile Machinery
Pharmaceutical Machinery
Moulded Plastic Products
Ahmedabad
Readymade Garments
Diamond Processing
Machine Tools
Did You Know?
Castings & Forging
Steel Utensils
Wood work and Furniture
Paper Products
Ahmedabad is
known as the MSME
Number of SSI(s) & MSME(s) 64836 (SSI)
266911 MSME(s)
Number of ‐GIDCs 13
Leather Footwear
Washing Powder & Soap
Marble Slabs
Capital of Gujarat
Industrial Estates Number of SEZ(s) 12
Number of Industrial Parks 10
Number of private industrial co‐op
estates
70 Special Transport
Facilities
Power driven Pumps
Auto Parts
Electronic goods
Number of Clusters 8
Number of ITI(s) 61
Major Ports Kandla, Mundra,
Vadinar
• BRTS Mass
Transport
• Expressway Fast
Transport
20
Airport: Sardar Vallabhbhai Patel International Airport, Ahmedabad; Lies in the influence area of DMIC

Rajkot and Morbi
Diesel Engines and parts
Submersible Pumps
Gold Morbi
and Silver Jewelry
Salt Processing
Electronic
Did Y K ?
Rajkot
Watches and Clocks
Oil Mills
Textile Printing
You Know?
Rajkot is one of the
most competitive
d i i
Clay Floor Tiles
Electric Motors
Casting Number of SSI(s) & MSME(s) in Rajkot
and Morbi
20,832
Number of Industrial Estates 16
production centre in
India offering
engineering services
and is known as
“M f i H b and Forging
Machine Tools
Diamond Processing
Number of ITI(s) 25
Nearest Port Navlakhi
Manufacturing Hub
of Gujarat”
21
Paper Products
Airport: Rajkot Domestic Airport

Surat and Tapi
Paper Products
Diamond Cutting and Polishing
Textile
Powerlooms
Zari
Wood Products and Furniture
Surat Tapi
Rubber, Plastic and its Products
Engineering Did Y K ?
Number of SSI(s) & MSME(s) in Surat 221511
Number of Industrial Estates 11 Govt.
15 Private
You Know?
Surat accounts
f f
Indian Diamond Institute
Provides training,
consultancy and R&D
Number of SEZ(s) 5
for about 80 % of
total diamond
processing done in
India, thus giving it
h f
Services in diamonds,
coloured gemstones
and machine cast jewellery
Number of ITI(s) 48
Nearest Port Magdalla &
Hazira
the name of
‘The Diamond City’ Man Made Textile Research
Association (MANTRA)
Provides R & D, Testing,
Technical and 22
Airport: Surat Airport; Lies in Influence area of DMIC
Quality
Control Services

Vadodra and Chhota Udaipur
General Engineering
Pharmaceuticals (Bulk Drugs)
Chhota
Udaipur
Plastic Processing
Wood Work and Furniture
Textile
Did You Know?
Vadodara
Uda pu
Glass
Cotton
The city is on the
major rail and road
arteries joining
Mumbai with Delhi
Tobacco
Fertilizer
Number of SSI(s) & MSME(s) in Vadodara ~25,000
Number of SEZ(s) 3
and Mumbai with
Ahmedabad.
Because of this
Vadodara is known
Fisheries
Dairy
Number of ITI(s) 48
as a
‘Gateway to the
Golden Corridor’
23
Airport: Vadodara Domestic Airport; Lies in influence area of DMIC Paper Products

Bhavnagar
Ship Breaking
Steel Re-rolling
Bhavnagar
g
Machine Tools
Pl ti P i
Did You Know?
Plastic Processing
Diamond Processing
Number of SSI(s) & MSME(s) in
Vadodara
~15,000
Employment Generated >100,000
Alang & Sosiya Ship
Breaking Yard are
Asia's Biggest Ship
Number of Industrial Estates 10 GIDC Salt Processing
5 Private
Number of ITI(s) 28
P t( ) Bh
Breaking Yards. These
are now on a fast
paced growth towards
Wood Products
Paper Products
Port(s) Bhavnagar
Bhavnagar contributes to 90 per cent of Magnesium
Hydroxide production tin India
Chemical Industry
Engineering
Ship Making &
Recycling Textile Industry
24
Airport: Bhavnagar Domestic Airport; Lies in influence area of DMIC

Porbandar and Junagadh
Porbandar
SSI : 1725
MSME: 628
Total number of Industrial 2
Clusters
Number of ITI(s) 3
Junagadh
SSI : 7181
MSME: 1352
Junagadh
g Porbandar
Total number of Clusters 4
Number of ITI(s) 63
Ports Veraval Port
Did You Know? Machine Tools Chemicals
Junagadh is famous in the Seafood products
Glass and Ceramics
country for production of
Cement
Paper Products
mango, mango based
products which is being
Food Products
Engineering
25
p g
exports in various countries

Jamnagar and Devbhoomi Dwarka
Jamnagar and Dwarka Bhoomi
5640
Number of GIDC Industrial
Estates
11
Number of SEZ(s) 1
Number of ITI(s) 15
Ports Bedi Port, Okha
P t Sikk P t
Jamnagar
Devbhoomi Dwarka
Port, Sikka Port,
Pindara Port,
Salaya Port
Airport Jamnagar
Domestic Airport
Brass Articles Paper Products
Did You Know?
Brass metal parts cluster in
f Wood Products
&Furniture
Food Products
Textile
Mineral Products
Engineering
Jamnagar is famous
worldwide for its wide
variety and quality of
26
Chemical products

Bharuch and Valsad
Bharuch
SSI: 11,991
MSME: 5456
Number of GIDC Industrial
Estates
12
Number of SEZ(s) 8
Number of ITI(s) 9
Nearest Ports Dahej
Bharuch
Nearest Airport Vadodara
Dahej has been identified as a thrust area for large
scale industrial development by the Government of
Gujarat Valsad
Valsad
4634
j
Lies in the Influence Area of DMIC
Petrochemical Chemicals
Number of ITI(s) 5
Paper & Pulp Industry
Textile
Pharmaceutical
Textile
27
Lies in the Influence Area of DMIC
Light Engineering Wood Products

Government Organizations for Assistance and Promotion of
MSME(s)
■ Promotes industrial development by bringing about industrial reforms
■ Monitors and Controls functions for planned industrial development
http://ic.gujarat.gov.in/
Industries
Commissionerate
(IC)
■ iNDEXTb was set as a ‘facilitating’ organization to ensure smooth and hassle‐free experience
for a prospective investor
■ iNDEXTb provides information to the public in general and entrepreneurs in particular,
regarding the opportunities available in the State of Gujarat for industry, commerce, trade,
business openings and participation therein
Industrial
Extension Bureau
(iNDEXTb)
http://www.indextb.com/
■ GIDC has been created for securing the orderly establishment and organization of industries in
industrial areas and industrial estates in the state
G j tI d t i l ■ To fulfill the above mandate, the Corporation has established 186 industrial estates, ranging
from mini to mega sizes, in 25 of the 25 districts of the state. It has also developed 6 Special
Economic Zones
■ GIDC is now establishing Special Investment Regions, PCPIR, Industrial areas and large /sector‐
Gujarat Industrial
Development
Corporation
(GIDC)
28
specific estates in tune with the changing economic and industrial scenario
http://www.gidc.gov.in/

Institutes for Assistance to MSME(s)
Micro, Medium
and Small
Industries
Development
Silvassa and one Field Testing Station, Ahmedabad, serves the small scale industries in these
 MSME‐DI (formerly Small Industries Service Institute), Ahmedabad covers the entire State of
Gujarat covering 33 districts and Union Territories of Dadra & Nagar Haveli, Daman and Diu.
 The Institute with its 2 Branch, Small Industries Service Institutes, one each at Rajkot and
areas
http://www.msmediahmedabad.gov.in/
Institute
Entrepreneurship
Development
Institute of India
financial ■ The program, 'SME Banking & Financial Services' has been designed to facilitate an in‐depth
understanding and develop skills in assessing financial needs of SMEs and designing
appropriate intermediation
http://www.ediindia.org/
■ To develop entrepreneurs in state at urban and rural areas so that they can start their
manufacturing or service venture for the economic growth and become self employed as well
as provide employment to others.
■ The Entrepreneurship Development Program (EDP) develops confidence in a person to
establish and successfully
Center for
Entrepreneurship
Development
(CED)
29
his own venture manage it http://www.ced.gujarat.gov.in/

Government Supported Institutes for Assistance to SME(s)
Gujarat Industrial and Technical Consultancy Organization Limited (GITCO)
GITCO – a premier Technical Consultancy Organization (TCO) ‐ provides consulting services to accelerate the growth of
industrial and services economy of Gujarat.
www.gitco.co.in
Indo German Tool Room
Indo German Tool Room Ahmedabad is a tool room and training Centre engaged in production of tools of
precision plastic & metal component and also engaged in area of Training in tool and die making, CAD/CAM & CNC
Technology.
www.igtrahd.com
Electronics and Quality Development Centre
EQDC provides Testing, Calibration and Quality services throughout the nation ranging from Government, semi
government, and private organizations to MSME are of twenty three states across the country and abroad to
Asiatic / Arabian countries.
www.eqdc.in
Central Glass and Ceramics Research Institute
CSIR‐CGCRI, Naroda Centre was established in the year 1977 to cater to the needs of the Ceramic
Industries in the small and medium scale sectors in Gujarat and adjoining areas
www.cgcri.res.in
Central Institute of Plastic Engineering and Technology
CIPET provides dedicated services to the students and industry through long‐term and Short‐term
courses, technical services in design and development of moulds for plastics products in the state‐of‐art
testing laboratory.
www.cipet.gov.in
Pharmaceutical Education and Research Development (PERD) Centre
B id Besides R Research, PERD hPERDC t Centre id provides some f of th the lit quality i services t to th the i d t industry i in th the areas f
of
Bioequivalence, Toxicity studies, Biotechnology, Pharmacology and Phytochemistry.
www.perdcentre.com
Sources: MSME Division: Industries Comissioner Office, Gujarat 30

MoU(s) Signed by MSME(s) in Vibrant Gujarat
MoU(s) Signed in Previous Versions of Vibrant Gujarat
15000 12886
1921
4494
1581
3060
8863
10000
5000
0
2009 2011 2013
Number ofProjects Signed
Number of Projects Comissioned or Under Implementation
Year Number of MoU(s)
d
Projects Commissioned Projects under
Signed Implementation
2009 1921 1558 23
2011 4494 2851 209
31
2013 12886 4848 4015

1.4. Government Schemes for
MSME(s)
32

Assistance to Micro Small and Medium Enterprises
Interest Subsidy Venture capital Skill Enhancement
 All MSMEs are eligible for setting up of new unit
or expansion or diversification or modernization
of existing unit.
d d b d f
 Venture capital assistance
through Banks/FIs for projects
adopting innovative technology
such Technical textile
 Reimbursement @50% of
fees, subject to maximum
of INR 5000 per person for
a minimum one week
Quality Certification
 Assistance for maximum 3
quality certifications @ 50%
of expenditure subject to
 Graded interest subsidy, @7% for micro
as textile,
overall ceiling INR
enterprises and @ 5% for Small & Medium
Nanotechnology, Information
enterprises.
Technology, Bio‐Technology etc..
 1% additional interest subsidy to youth having
 Funds to be provided to
less than 35 years of age in case of first project.
Banks/FIs up to Max INR 100
Woman entrepreneurs priority
Million during the operative
training for skill
upgradation conducted by
institutions suggested by
Anchor Institute or
specialized institutions in a
specific of 600,000 in five years
 Expenditure includes fees
charged by certification
agencies, cost of testing
accorded priority. equipment, calibration
 Maximum amount INR 2.5 million per annum,
for five years period
period of the scheme sector for a
minimum batch size of 25
trainees
Technology Acquisition Fund
charges, consulting fees and
training charges
Support to R&D Institutions Patent Assistance Energy and water conservation
 Assistance for technology
acquisition in any form for
group of at least 10 MSMEs
for specific
product/process, by way of
 Assistance to R&D institutions set up
with state government support for
testing facilities, incubation center as
well as setting up of new R&D Centre, up
to 60% of the project cost excluding land
d b ildi
 Assistance @ 50%. subject to
max. INR 1 Million towards
necessary expenditure for
obtaining domestic patents
and INR 2.5 Million for
gy
 Reimbursement @ 50% of cost
of energy/ water audit with a
max. of INR 25,000/‐ unit
 In addition, assistance of 20% of
50% grant, subject to max. cost of eq ipment s bject INR 10 Million/ technology
including royalty payments
for first 2 years
and building cost.
 Assistance for Contract/ Sponsored
research work from Industrial
units/Industry Association through
recognized R&D institutions / AICTE
approved colleges obtaining international
patents subject to maximum
5 patents per unit over a
period of 5 years
equipment subject to
max. INR 1 Million in a project
 Priority for group of
units/clusters
Resolution No. MSM/102009/57928/I 33
Date: 27/2/2009
Sources: ic.Gujarat.gov.in
Extension GR: MSM‐10‐2013‐2070‐I (28/1/2014)
technical colleges, @50% of
project cost with a ceiling of INR 5
Million.

Market Development Support
 Assistance to MSME for packaging design from recognized institutions, @ 50% of the
cost, subject to maximum INR 200,000 once in a period of five years.
 Assistance to MSME for participation in International Trade Fair outside India @ 50%
Support for Ancillary/ Vendor Development
 Support to Vendor development on PPP model wherein
Parent unit to contribute min. 5% for prototype/ new
product development besides technical support and
i f f 3
p p
cost of rent, literature & display material subject to maximum INR 200,000
 Assistance to Industries Associations (min. 5 units) for participation in international
trade fairs as Gujarat Pavilion outside India @ 50% of total rent subject to max INR 1
Million
 Viability Gap Support to industry associations for organizing national seminars/
commitment for procurement guarantee for yrs.
 Vendor unit will be eligible for interest subsidy as per
scheme
 Assistance @ 20% of infrastructure cost excluding land cost,
max INR 10 Million to parent unit for development of
exhibition in Gujarat (max. INR 400,000) and int. seminars/ exhibitions in Gujarat i d t i l k
(max. INR 800,000)
 Assistance to industry associations for setting up Convention/ Trade center @ 50% of
project cost excluding land, max INR 50 Million once in a period of five years
industrial park
 New or existing Medium/large unit as Parent unit to support
min. 10 vendor units for a new product/ prototype
development
Support to Auxiliary industries
for value addition
 Large units producing raw
materials and promoting
auxiliary MSME units to be
encouraged Cluster Development
 Anchor units, nodal institutions and/ or industry associations to take up the cluster program in PPP mode.
 Comprehensive support to strengthen cluster units in a program covering product design, technology upgradation,
quality improvement, energy and water conservation, common branding and marketing facilities, hiring of an expert/
to develop
cluster agent setting up of plants facilities center ITI extension
industrial park for
accommodating min. 20 units.
 Assistance @ 20% of
infrastructure cost excluding
land cost subject to max. INR
development agent, demonstration plants, common facilities, Incubation center, center and other need based facilities
 Assistance @ 80% (including assistance from Government of India) of proposed cost of program with a ceiling of INR
100 Million/ cluster in a period of 3 ‐ 5 years
 Assistance to nodal institutions/ hiring of experts will not exceed 3% of project cost
 A Cluster Advisory Institution (CAI) to be constituted
Cl t t b li ibl f ti l fi i l i t il bl d iti l i f t t h
10 Million  Cluster to be eligible for partial financial assistance, available under critical infrastructure scheme.
 Nodal institution to prepare a five year comprehensive development plan of the cluster.
Resolution No. MSM/102009/57928/I 34
Date: 27/2/2009

Awards to best MSMEs
 Separate awards to Micro, Small and
Medium category
Rehabilitation of Sick Units
 50% subsidy on cost of diagnostic study by Technical
institution initiated through FI/ Bank/ Government‐maximum
INR 100,000.
 Three awards in each category
o Growth in production and profit
o Quality and Environment
 Registered Experts in the field of technology,
marketing and finance to advise sick units.50% fees
(max. INR 100,000/unit) to be reimbursed on
implementing suggestions.
 Interest subsidy @5% p.a. limited to INR 10 Lakh per
f dd l f f
Promotion of
Specific Sector
improvement measures
o Innovation in technology for new
product or process development
 Award 100 000 cash year for 3 years on additional finance for
rehabilitation disbursed by bank/FI.
 OTS for clearing dues of GoG Dept./ Corp./ Boards
on a graded scale, for which a separate GR to be
introduced
O h i ki i k i f h bili i
 Specific sector identified in a district
shall be supported with integrated
program of interest subsidy, technology
upgradation and quality certification
in the form of INR 100,000 and
appreciation letter
 Awardees are to be given priority in
participation in International Seminars
 Other unit taking over a sick unit for rehabilitation to
be eligible for assistance as above
Eligibility for Quantum Assistance
 All incentives
 Independent Credit Rating agency to be
appointed to select the best performing
MSMEs in the above categories
 Nominations to be encouraged from
eligible MSME can avail under different categories separately or
in combination. Assistance will be given
only once under each category in five
years period unless otherwise specified in
35
Industries Associations
Resolution No. MSM/102009/57928/I
Date: 27/2/2009
y p p
specific category of incentive.

Assistance to Textiles and Apparels
 Maximum interest subsidy will be at the rate of 5% per annum
(7% for spinning unit and garment/made‐ups unit.)
 Spinning Units which have acquired second hand imported
machinery (acquisition value shall be at least less than 50% of
the value of new imported machinery) or The weaving
enterprises which have acquired second hand imported
Shuttle less loom having 10 years vintage and with a residual
life of minimum 10 years duly certified by CE/CA etc.
 Refund of VAT paid by unit on purchase of
intermediate product/raw material except for
certain goods and certain transactions  Power Tariff subsidy at the rate of INR 1 per
unit in the billed amount of utility for 5
years to cotton spinning and weaving units.
 This will only be applicable for establishing
new enterprises or for expansion/
which
are not eligible for tax credit under The Gujarat
VAT Act, 2003 and reimbursement of tax
collected on end product/intermediate
product within entire value chain from cotton
to Garment and made ups to the extent of
Scheme 1
diversification of existing enterprises as
well as the units with second hand eligible
imported machineries.
 The units who purchase electricity only
from state electricity / power
100% the eligible fixed capital investments in
plant and machinery made within one year
(two years in case of investment more than
500 crores ) from the date of production or
during the operative period of the scheme
whichever is earlier
36
the distribution licensee will eligible for this
relief
earlier.
 The concession will be available within 8 years
from the date of the production.
Resolution No. TEX/102012/65117/T
Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in

Support to Technical Textiles
■ Credit linked Interest Subsidy @ of 6% per annum for investment in New and modern Plant and Machinery as specified under
TUF scheme of GoI or covered under definitions of capital goods in VAT Act would be eligible .
■ Scheme-2
The scheme will be applicable to new as well as to existing enterprise for expansion / up gradation in above sectors.
■ The enterprise which have acquired second hand machineries having 10 years vintage & with residual life of minimum 10
years duly certified by the competent authority will be considered eligible for support to the extent of 60 % of the acquisition
value of imported machineries.
■ The acquisition value of the second hand machinery shall be considered up to 50% of the value of new imported machinery or
actual whichever is less.
Scheme Assistance for Energy & Water Conservation and Environmental Compliance to existing Unit
Scheme ■ Assistance up to 50%, max INR 50,000 for Energy Audit/Water Audit/ Environmental Compliance. Assistance of to 20% cost of
equipment limited to INR 2 Million .
■ The Enterprises will be eligible for the above benefit once in 2 years of operating period of the scheme
3
Assistance for Technology acquisition and up gradation
■ The enterprise acquiring the technology for the first time in India will be considered eligible under the scheme.
■ Assistance up 50% with 2 5 per process/product
Scheme 4
37
to 50%, max of INR 2.5 Million Resolution No. TEX/102012/65117/T

Textile & Apparel Park
Scheme‐7 Support for Establishing Textile and
Apparel park
Training Support
Scheme‐5 Assistance for Apparel training Institutions
and Trainees
 Autonomous institutions promoted by
 The park will be provided financial Assistance up
to 50 per cent with maximum limit of INR 100
Million (INR 300 Million of spinning park) of total
project cost for common infrastructure excluding
government/public/private sector undertaking with
strong background in this field
 Assistance up to 85%, maximum INR 30 Million
excluding for Institutes
land cost
 The park must have provision for the location of
minimum 20 nos. of manufacturing/service
enterprises.(Max 25% nos. of service enterprises).
land cost training  Assistance up to 50% maximum INR 2 Million for
training Centers
 Reimbursement of tuition fees to trainees up to 50%
maximum INR 7 000 per course for years  For Spinning Park‐ must have provision for the
location of min. 10 nos. of spinning units with min.
150 acres of land.
 Up to 35 % of land may be utilized for weaving
7,000 ten from date
of commencement
Scheme‐6 Training Support to power‐loom Sector
 Stipend of INR 2 500 per trainee to trainees of power‐activities
to support spinning activities.
 Stamp duty exemption certificate will by issued
after approval of the project by SLAC.
2,500 power
loom training center's operated by ATIRA and Mantra
 Transport cost & incidental expenses will be provided
to : (a) Weavers @ INR 200/‐ per day for duration of
two days. (b) Jobbers @ INR 300/‐ per day for duration
f d
38
of six days.
 No allowances will be given to Power loom Owner
Resolution No. TEX/102012/65117/T

Assistance to Manufacturing Sector
Go t. Govt. o of Guja Gujarat at t Introduced oduced o o following g sc e es schemes o for 5 a u actu Manufacturing g Secto Sectors s a ey namely uto Auto & uto Auto Co po e Components, ts, So a Solar & d Wind qu p e Equipment
t
manufacturing, Specialty & fine chemicals, Electronic System design & manufacturing and Food & Agro Business.
Interest Subsidy
■ Graded interest subsidy for five years @ 7 % for
MSMEs & 2% for large Industries having an actual
investment up to INR 1 Billion.
Assistance Centre of Excellence
Assistance for Core Infrastructure
■ This assistance will be for enabling basic infrastructure
facilities.
■ The expenditure incurred for the core infrastructure
■ Maximum amount of interest subsidy per annum
shall be INR 2.5 Million for MSMEs & INR 5 Million
for large units
for ■ Center of Excellence in PPP mode with State/
State institution/ industrial units/ professional
institutes shall be eligible for assistance under
this scheme.
■ Quantum of one time assistance shall be 70 % of
the development, excluding the land cost, shall be
considered.
■ The new industrial park will be provided incentives of 50
% of total expenditure limited to INR 200 Million
■ Developer of park and first purchaser of individual unit
eligible for exemption on payment of stamp duty and
total expenditure, including recurring
expenditure for the three years, limited to INR
200 Million in the case of national level and COE
promoting value addition in the sub sectors of
this GR.
■ Quantum of one time assistance shall be 70 % of
the total expenditure, including recurring
registration charge on purchase of land dit f th th li it d t INR
■ Certificate for exemption in Stamp Duty and
Registration charges shall be issued after the approval of
the project by SLAC.
expenditure for the three years, limited to 300 Million in the case of international level COE
promoting value addition in the six sub sectors
and in the area of innovation and
entrepreneurship
Assistance for Setting up of Common Facilities
■ Group of industries, Industrial Associations/ SPV of Industrial
Associations or private company registered under the Societies Act,
Partnership Act or the Companies Act shall be eligible to avail
assistance.
■ One % of the total expenditure limited to
Assistance for Common Effluent Treatment Plant
■ An Industrial Park promoted on self sustained basis by
Industrial Association / SPV of Association / Private Company
would be eligible for assistance for setting up of project of
CETP, incinerators and disposal of effluent.
39
time assistance up to 80 INR 100 Million for the cost of P & M test equipment,
electrification, installation shall be considered to a self sustained
project as approved by SLAC.
■ Including the assistance of GoI, assistance up to 75% of total
project cost will be given. If GoI assistance is not available then
40 % assistance will be given
Resolution No. BJT‐102012‐92765‐I
Dt. 26.2.2013 Sources: ic.Gujarat.gov.in

Improving Industrial Infrastructure
 Assistance to be considered for
 Upgrading infrastructure facilities as
may be required in an industrial estate
/ clusters/industrial area.
 Additional infrastructure facilities.
 Upgradation of infrastructure facilities
 Assistance to Industries Associations / Industrial
houses or Institutions for setting up industrial park
in PPP mode.
 Industrial park must have basic infrastructure
I i
in GIDC estates and
 Undertaking specific studies.
 Industries Associations, Large Industry, Govt.
Dept./agency, to be eligible.
 Assistance will be @60% of the project cost
with a ceiling of INR 100 Million in case of
Industrial area / Park having less than 100
h t d INR 200 Milli f
p
facilities to be classified into C, B & A categories
depending upon the minimum infrastructure
facilities.
 Assistance will be in the form of Viability Gap
Funding upto 20% of the cost through GIDB.
 Additional Assistance upto 20% may be provided
by the Central Government
Improving
Industrial
Infrastructure
hectares and Million for area more
than 100 hectares
 The promoter is to contribute 20% of equity in
the project.
 Last mile connectivity project to the industrial
park / area having more than 25 hectares to be
considered.
Scheme for assistance to Industrial Park/Estate set up by Private Institution
 Assistance to Industries Industrial Parks/Estates set up by Private Institutions.
 Any Industry Association/Industrial House or Institution registered under Societies Act or
Companies Act shall be eligible to avail assistance under this scheme.
 Industrial Parks/Estates shall have minimum of 30 industrial units in at least an area of 100
acres.
 Industrial Parks/Estates must have basic infrastructure facilities required like developed plot,
internal roads, water distribution , communication facilities and such other facilities/services
as may be required.
 The Industrial Park/Estate will be provided an assistance of INR 100 Million for link
infrastructure.
 Th d l f h i d i l k ill b li ibl f i f
40
The developer of the industrial park will be eligible for exemption on payment of stamp
dusty on purchase of land required for the project. Industrial units are required to pay stamp
duty at the rate of 50% of the duty
Resolution No. BGT/1008/626/G
Dt. 27/02/2009
Scheme for Assistance to Set Industrial Park/.Estate set up by Private Institution added in:
Addendum No: BJT/1008/626/Part‐1/G
Dt. 20/10/2011

Assistance for Environment Protection Measures
Assistance for encouraging green
practices and Environmental Audit
to MSMEs
Assistance Environment
Management to MSMEs
• Substitution & Optimization of raw
material including catalysts up to 25% of
cost of plant & machinery , ceiling of
INR 1 Million per project
•Use of Clean, efficient and Innovative Pollution
Control Equipment in industries: up to 25% of cost
of equipment, ceiling of INR 250,000 per unit
• Periodic Environmental Audits up to 50% of fees
f di i i INR 25 000/ i
Assistance for
Environment
Protection
Measures‐ MSME
• Rainwater harvesting up to 50% of cost of
fixed capital investment ceiling of INR 500,00
per project
of audit services or maximum 25, unit
• Encouraging Environment Management System‐setting
up of Environment Management Cell up to
25% of cost of equipment , or maximum INR
500,000/plant once in a lifetime
Units
• Any Other pre‐identified environment
management project up to 25% of cost of plant
& machinery , ceiling of INR 1 Million per
project
• Implementation of cleaner production and
 Purchase of new equipment/systems related
to safety, occupational health for a cluster of
industries Assistance to industrial association or
SPV of Industrial units up to 25% of cost of
equipment or maximum INR 2 5 Million per
clean technology measures etc. up to 25% of
cost of plant & machinery , ceiling of INR 1
Million per project
2.5 cluster.
 Installation of Solar system leading to at
least 5% energy saving Up to 25 % of the
cost of system, INR 250,000 per plant
Resolution No. BGT/1008/499(1)‐G and BGT/1008/499(2)‐G 41
Dt. 11/06/2009 Sources: ic.Gujarat.gov.in

Enhancement of Technical Competence and Man Power
 Financial assistance for setting up extension center of ITI/
Polytechnic/ Engineering colleges in GIDC estates / industrial
clusters / SEZs/ Industrial Parks to run specific courses @,
 100% in case of GIDC,
 Assistance to State Level Anchor Institutes in the selected
focus sectors towards expenditure on equipment,
internal refurnishing of premises and contingency.
 Additional financial support towards operating expenses
to Anchor and Nodal Institutes.
 75% in industrial cluster and
 50% in industrial Parks/ SEZs
with a ceiling of INR 10 Million for each
E t i C t t d t fM hi d
 Anchor Institute to actively involve industries and
provide technical support to the technical educational
institutions for shop floor workers, supervisory and
managerial level training.
 The total financial assistance under both capital
Extension Centre towards cost of Machinery and d ill t d INR 100 Milli i
equipment
and expenses will not exceed Million in
each sector in the operative period of the scheme.
 Assistance to Institutes / Universities/ Industry Partner could run the courses from
Industries / Industries Associations for setting up
specialized training Centre in the areas of marine
engineering, mining, specialized pipe laying, logistic and
existing courses with addition of certain subjects.
Alternatively new course can be started as per the
specific requirements by industry in existing
ITI/Polytechnic/ Engineering Colleges.
 Assistance @ 75% cost of machinery and equipment up
services etc. and other advanced technology and management to INR 10 Million contributed jointly by DTE/DET/IC
courses to the extent of 50% of the project cost covering
building, equipment and machinery excluding land cost with a
ceiling of INR 20 Million
IC.
 Industry partner/industries Association / institutes to
contribute rest of the amount and provide infrastructure
facilities in the form of land and building.
 Institutional Management Committee (IMC) to monitor
and run the course
Resolution No. CED‐112007/ 2081(1)/I 42
Dt. 27/02/2009

Mission Mangalam (Under Gujarat Livelihood Promotion Company Ltd.)
Integrated poverty alleviation approach in a
demand driven convergence mode Approach
 Gujarat’s most precious resource is 'people' and
their potential to work towards collective
betterment of the state and eventually the nation.
Single platform for stakeholders like Banks,
Industry Partners, Micro Finance Institutes and
Single
Platform for
Mission M
 Poverty becomes an hindrance for optimum
utilization of this resource and its potential.
Poverty has numerous manifestations including
low income poor health low levels
Skill Imparting Institutions, etc. Stakeholders
angalam
and unreliable income, health, of education and literacy, insecurity and uncertain
access to justice, disempowerment and isolation
from mainstream socio‐economic development.
Around 24 lakh women are currently active
under 2 lakh Sakhi Mandals / Self Help Groups
(SHGs) in the state, managing aroung INR 10
Billion through bank linkage.
Current
Strength of
Self Help
Groups
p
 Mission Mangalam, through its multi‐dimensional
policies and interventions aims to provide
permanent solutions. It strives to provide options
 Financial Literacy
 Universalization of SHG(s)
 Setting up MIS and innovative monitoring
Systems
Further
Growth
Strategy
of income generating opportunities, ready to
access means of production, affordable basic
services and protection of law. Thus, 'Mission
M l ' i l k i h ll h
43
Mangalam' is a complete package with all these
elements incorporated in it.
Sources: http://www.glpc.co.in/

FOR ADDITIONAL INFORMATION CONNECT US @
Industries Commissionerate
Block No. 1, 2nd Floor, Udyog Bhavan,
Gandhinagar, Gujarat, India ‐ 382 010
http://ic.gujarat.gov.in/
Phone: 079‐23252683
E‐mail: iccord@gujarat.gov.in
Gujarat Industrial Development Corporation
Block No. 4, 2nd floor, Udyog Bhavan,
Gandhinagar, Gujarat, India – 382 010
http://www.gidc.gov.in/
Phone: 079‐23250583
E‐mail: vcmd@gidcgujarat.org
44

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