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Presented By:-

Soumya Makker

(Roll No. 0671663907)

MB! 3rd

Semester

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"N#R$%&'#"$N"N#R$%&'#"$N The President under Notification dated 9th May 2007 amendedThe President under Notification dated 9th May 2007 amended

the Government of India (Allocation of Business !ules" #9$#%the Government of India (Allocation of Business !ules" #9$#%Pursuant to this amendment" Ministry of A&ro and !uralPursuant to this amendment" Ministry of A&ro and !uralIndustries ('rishi vam Gramin )dyo& Mantralaya andIndustries ('rishi vam Gramin )dyo& Mantralaya andMinistry of *mall *cale Industries (+a&hu )dyo& MantralayaMinistry of *mall *cale Industries (+a&hu )dyo& Mantralayahave ,een mer&ed into a sin&le Ministry" namely" -MINI*T!.have ,een mer&ed into a sin&le Ministry" namely" -MINI*T!./ MI1!/" *MA++ AN MI)M NT!P!I** (*)'*3MA/ MI1!/" *MA++ AN MI)M NT!P!I** (*)'*3MA+AG3) A)! MA3.AM ).AM MANT!A+A.A4+AG3) A)! MA3.AM ).AM MANT!A+A.A4

The M*s constitute over 905 of total enter6rises in most ofThe M*s constitute over 905 of total enter6rises in most ofthe economies and are credited ith &eneratin& the hi&hestthe economies and are credited ith &eneratin& the hi&hestrates of em6loyment &roth and account for a ma8or share ofrates of em6loyment &roth and account for a ma8or share ofindustrial 6roduction and e6orts%industrial 6roduction and e6orts%

It is estimated that in terms of value" the sector accounts forIt is estimated that in terms of value" the sector accounts fora,out :95 of the manufacturin& out6ut and around ::5 ofa,out :95 of the manufacturin& out6ut and around ::5 of

the total e6ort of the country%the total e6ort of the country% urther" in recent years the M* sector has consistentlyurther" in recent years the M* sector has consistently

re&istered hi&her &roth rate com6ared to the overallre&istered hi&her &roth rate com6ared to the overallindustrial sector%industrial sector%

As 6er availa,le statistics" this sector em6loys an estimated :#As 6er availa,le statistics" this sector em6loys an estimated :#million 6ersons s6read over #2%; million enter6rises%million 6ersons s6read over #2%; million enter6rises%

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DefinitionDefinition

In accordance ith 6rovision of Micro" *mall

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Limits for investment in Manufacturing SectorLimits for investment in Manufacturing Sector

EnterprisesEnterprises Investment in plantInvestment in plant& machinery& machinery

Micro nter6risesMicro nter6rises oes not eceed tentyoes not eceed tentyfive la@h ru6eesfive la@h ru6ees

*mall nter6rises*mall nter6rises More than tenty fiveMore than tenty fivela@h ru6ees ,ut does notla@h ru6ees ,ut does not

eceed five crore ru6eeseceed five crore ru6ees

Medium nter6risesMedium nter6rises More than five croreMore than five croreru6ees ,ut does notru6ees ,ut does not

eceed ten crore ru6eeseceed ten crore ru6ees

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Limits for investment in Services SectorLimits for investment in Services Sector

EnterprisesEnterprises Investment inInvestment in

equipmentsequipments

Micro nter6risesMicro nter6rises oes not eceed ten la@hoes not eceed ten la@h

ru6eesru6ees

*mall nter6rises*mall nter6rises More than ten la@hMore than ten la@hru6ees ,ut does notru6ees ,ut does not

eceed to crore ru6eeseceed to crore ru6ees

Medium nter6risesMedium nter6rises More than to croreMore than to croreru6ees ,ut does notru6ees ,ut does not

eceed five crore ru6eeseceed five crore ru6ees

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$e*t+,es$e*t+,es

To Im6art &reater vitality and &rothTo Im6art &reater vitality and &roth

im6etus to the Micro" *mall and Mediumim6etus to the Micro" *mall and Medium

nter6rises (M*M in terms of out6ut"nter6rises (M*M in terms of out6ut"

em6loyment and e6ortsem6loyment and e6orts To instill a com6etitive culture ,ased onTo instill a com6etitive culture ,ased on

hei&htened technolo&y aareness%hei&htened technolo&y aareness%

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Office of DevelopmentOffice of Development

Commissioner (MSME) NetworkCommissioner (MSME) Network

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Organisational StructureOrganisational Structure

The Ministry of Micro" *mall and MediumThe Ministry of Micro" *mall and Medium

nter6rises (Mo M*M is the administrativenter6rises (Mo M*M is the administrative

Ministry in the Government of India for allMinistry in the Government of India for all

matters relatin& to Micro" *mall and Mediummatters relatin& to Micro" *mall and Medium

nter6rises%nter6rises% The /ffice of the evelo6ment 1ommissionerThe /ffice of the evelo6ment 1ommissioner

(M*M is an attached office of the Ministry of(M*M is an attached office of the Ministry of

M*M" and is the a6e ,ody to advise" coordinateM*M" and is the a6e ,ody to advise" coordinate

and formulate 6olicies and 6ro&rammes for theand formulate 6olicies and 6ro&rammes for thedevelo6ment and 6romotion of the M*M *ector%develo6ment and 6romotion of the M*M *ector%

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Institutional NetworkInstitutional Network The evelo6ment 1ommissioner (M*M have aThe evelo6ment 1ommissioner (M*M have a

netor@ of=>netor@ of=>

:0 M*M>evelo6ment Institutes (M*M>I:0 M*M>evelo6ment Institutes (M*M>I 2; Br% M*M>evelo6ment Institutes (Br% M*M>I2; Br% M*M>evelo6ment Institutes (Br% M*M>I

C M*M>Testin& 1enters (M*M>T1sC M*M>Testin& 1enters (M*M>T1s 7 M*M>Testin& *tations (M*M>T*s7 M*M>Testin& *tations (M*M>T*s

2# Autonomous ,odies hich include =>2# Autonomous ,odies hich include => #0 Tool !ooms (T!s and Tool esi&n Institutes (TI#0 Tool !ooms (T!s and Tool esi&n Institutes (TI C M*M>Technolo&y evelo6ment 1enter (M*M>T1C M*M>Technolo&y evelo6ment 1enter (M*M>T1

2 M*M>Technolo&y evelo6ment 1enter>ootear (M*M>T12 M*M>Technolo&y evelo6ment 1enter>ootear (M*M>T1 # lectronics *ervice < Trainin& 1entre (*T1# lectronics *ervice < Trainin& 1entre (*T1 # Institute for esi&n of lectrical Measurin& Instruments (IMI# Institute for esi&n of lectrical Measurin& Instruments (IMI : National +evel Trainin& Institutes: National +evel Trainin& Institutes

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Tool ooms!Tool DesignTool ooms!Tool Design

Institutes (Institutes (TsTs!TDI!TDI))

To assist M*Ms in technical u6&radation"To assist M*Ms in technical u6&radation"

6rovide &ood Duality toolin& ,y desi&nin& and6rovide &ood Duality toolin& ,y desi&nin& and

6roducin& tools" moulds" 8i&s < fitures"6roducin& tools" moulds" 8i&s < fitures"com6onents" etc%com6onents" etc%

Provide Trainin& and consultancy for tool andProvide Trainin& and consultancy for tool and

die mar@ers%die mar@ers%

http://www.laghu-udyog.com/sido/trtdi.htmhttp://www.laghu-udyog.com/sido/trtdi.htmhttp://www.laghu-udyog.com/sido/trtdi.htmhttp://www.laghu-udyog.com/sido/trtdi.htmhttp://www.laghu-udyog.com/sido/trtdi.htmhttp://www.laghu-udyog.com/sido/trtdi.htm

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MSME"Testing Center (MSME"Testing Center (MSME"TCMSME"TC))

Provides Testin& facilities for DualityProvides Testin& facilities for Duality

u6&radationu6&radation

Trainin&constancy in testin&" Duality control"Trainin&constancy in testin&" Duality control"

Duality mana&ementDuality mana&ement Process Duality control systems" etc%Process Duality control systems" etc%

Product s6ecific testin& facilities are 6rovidedProduct s6ecific testin& facilities are 6rovided

,y M*M>Testin& *tations (M*M>T*s,y M*M>Testin& *tations (M*M>T*s

http://www.laghu-udyog.com/sido/ktdrtfts.htmhttp://www.laghu-udyog.com/sido/ktdrtfts.htmhttp://www.laghu-udyog.com/sido/ktdrtfts.htm

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MSME"Tec#nolog$ DevelopmentMSME"Tec#nolog$ Development

Center (Center (MSME"TDCMSME"TDC))

These are 6roduct s6ecific 1enters to=These are 6roduct s6ecific 1enters to=

loo@ into their s6ecific 6ro,lems andloo@ into their s6ecific 6ro,lems and

render technical servicerender technical service

develo6 and u6&rade technolo&iesdevelo6 and u6&rade technolo&ies

man6oer develo6ment and trainin&man6oer develo6ment and trainin&

http://www.laghu-udyog.com/sido/ktdpp01x.htmhttp://www.laghu-udyog.com/sido/ktdpp01x.htmhttp://www.laghu-udyog.com/sido/ktdpp01x.htm

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MSME"Tec#nolog$ DevelopmentMSME"Tec#nolog$ Development

Center"%ootwear (Center"%ootwear (MSME"TDCMSME"TDC)) evelo6 footear desi&nin& toevelo6 footear desi&nin& to

6romote e6orts6romote e6orts

Trainin& for man6oer in ootearTrainin& for man6oer in ootear

Industry%Industry%

http://www.laghu-udyog.com/sido/ktdfw01x.htmhttp://www.laghu-udyog.com/sido/ktdfw01x.htmhttp://www.laghu-udyog.com/sido/ktdfw01x.htm

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Training InstitutesTraining Institutes

There are three National +evel Trainin&There are three National +evel Trainin&

Institutes%Institutes%

#%#% National Institute of Micro" *mall andNational Institute of Micro" *mall and

Medium Industry tension Trainin& (Medium Industry tension Trainin& (NIM*MITNIM*MIT" 3ydera,ad" 3ydera,ad

2%2% National Institute for ntre6reneurshi6National Institute for ntre6reneurshi6

and *mall Business evelo6ment (and *mall Business evelo6ment (NI*B)NI*B)" Ne elhi" Ne elhi

:%:% Indian Institute of ntre6reneurshi6Indian Institute of ntre6reneurshi6

(II" Guahati(II" Guahati

http://nisiet.gov.in/http://nisiet.gov.in/http://niesbud.nic.in/http://niesbud.nic.in/http://niesbud.nic.in/http://nisiet.gov.in/

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Ot#er &ssociate' &genciesOt#er &ssociate' &gencies

National *mall Industries 1or6orationNational *mall Industries 1or6oration

(N*I1(N*I1

*mall Industries evelo6ment Ban@*mall Industries evelo6ment Ban@

of India (*IBIof India (*IBI

'hadi and Eilla&e Industries'hadi and Eilla&e Industries

1ommission ('EI11ommission ('EI1

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Setting up a Micro Small an'Setting up a Micro Small an'

Me'ium Scale nitMe'ium Scale nitThe following processes are involved:-The following processes are involved:- Project SelectionProject Selection Technology and achineryTechnology and achinery !rranging "inance!rranging "inance #nit $evelopment#nit $evelopment "iling of Entrepreneurs emorandum"iling of Entrepreneurs emorandum

!pprovals!pprovals %learances%learances uality %ertificationuality %ertification

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*ro+ect Selection*ro+ect Selection

It all 'egins with an Idea and ideas need toIt all 'egins with an Idea and ideas need to

'e filtered'e filtered=>=>

>>oes the idea fire u6 your motivationFoes the idea fire u6 your motivationF

> Is it a via,le ,usiness 6ro6osition in your areaF> Is it a via,le ,usiness 6ro6osition in your areaF> 1hec@ it out ith ,asic mar@et research> 1hec@ it out ith ,asic mar@et research

> Test it out at mar@et 6lace> Test it out at mar@et 6lace

> 1onsult ith the e6erts> 1onsult ith the e6erts

> +oo@ out for com6etition in the field> +oo@ out for com6etition in the field

> Is it a sunrise industryF> Is it a sunrise industryF

> .our ,usiness o66ortunity> .our ,usiness o66ortunity

> Pro8ect conce6tualisation> Pro8ect conce6tualisation

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*ro+ect Selection (Continue')*ro+ect Selection (Continue')

/nce the ideas are screened and a via,le ,usiness/nce the ideas are screened and a via,le ,usiness

o66ortunity emer&es the 6ro8ect has to ,eo66ortunity emer&es the 6ro8ect has to ,e

conce6tualied in all its dimensions%conce6tualied in all its dimensions%

The C Ps of Pro8ect 1once6tion are=The C Ps of Pro8ect 1once6tion are=

() P*+$#%T() P*+$#%T(*ha6e" *ie and Nature(*ha6e" *ie and Nature

,) P*+%ESS,) P*+%ESS (Technolo&y to 6roduce the 6roduct(Technolo&y to 6roduce the 6roduct

) P.!%E) P.!%E (+ocation of Plant(+ocation of Plant

/) P!*T0E*/) P!*T0E*(Technolo&ical or inancial 1olla,orator(Technolo&ical or inancial 1olla,orator

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Tec#nolog$ an' Mac#iner$Tec#nolog$ an' Mac#iner$Process SelectionProcess Selection

Hhile chec@in& out on a 6rocess technolo&y" theHhile chec@in& out on a 6rocess technolo&y" thefolloin& thin&s need to ,e considered ithfolloin& thin&s need to ,e considered ithutmost care=utmost care=

>Hhether 6rocess reDuires very hi&h level of s@illed>Hhether 6rocess reDuires very hi&h level of s@illed

or@ers or com6le machinesFor@ers or com6le machinesF>Hhether 6rocess reDuires lar&e Duantities of ater>Hhether 6rocess reDuires lar&e Duantities of ater

andor 6oerFandor 6oerF

>Hhether any 6rocess or 6roduct 6atent needs to>Hhether any 6rocess or 6roduct 6atent needs to,e honoured hile utilisin& the selected 6rocess,e honoured hile utilisin& the selected 6rocesstechnolo&y%technolo&y%

>Any s6ecial 6ollution or environmental re&ulations%>Any s6ecial 6ollution or environmental re&ulations%

>inally" the a66ro6riateness to the Indian>inally" the a66ro6riateness to the Indianenvironment and conditions%environment and conditions%

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NSIC proce'ures for #ire purc#ase of mac#iner$NSIC proce'ures for #ire purc#ase of mac#iner$ The hire 6urchase a66lication is to ,e made on the 6rescri,ed form%The hire 6urchase a66lication is to ,e made on the 6rescri,ed form%

The irector of Industries of the *tate forards the a66lication to theThe irector of Industries of the *tate forards the a66lication to the

head office of the N*I1 at elhi ith his recommendation andhead office of the N*I1 at elhi ith his recommendation and

comments%comments%

All a66lications for indi&enous or im6orted machines are considered ,yAll a66lications for indi&enous or im6orted machines are considered ,y

acce6tance committees com6risin& of the re6resentatives of the 1hiefacce6tance committees com6risin& of the re6resentatives of the 1hief

1ontroller of Im6orts" evelo6ment 1ommissioner" micro" small and1ontroller of Im6orts" evelo6ment 1ommissioner" micro" small and

medium enter6rises and other concerned de6artments%medium enter6rises and other concerned de6artments%

ecision of these committees is conveyed to the 6arties concerned ithecision of these committees is conveyed to the 6arties concerned ithco6ies to the re&ional offices of the N*I1 and the concerned irectorateco6ies to the re&ional offices of the N*I1 and the concerned irectorate

of Industries%of Industries%

/nce all these formalities are com6leted ,y the hirer" instructions are/nce all these formalities are com6leted ,y the hirer" instructions are

sent to the su66liers to dis6atch the consi&nment to the hirer and tosent to the su66liers to dis6atch the consi&nment to the hirer and to

send the !! or 1! as the case may ,e" to the re&ional office %send the !! or 1! as the case may ,e" to the re&ional office %

The N*I1 after ensurin& that all dues have ,een 6aid ,y the hirer"The N*I1 after ensurin& that all dues have ,een 6aid ,y the hirer"

releases the !! or 1! to him for ta@in& delivery of the machines%releases the !! or 1! to him for ta@in& delivery of the machines%

In case of im6orted machines" the 6rocedure is sli&htly different in asIn case of im6orted machines" the 6rocedure is sli&htly different in as

much as the shi66in& documents are sent to the clearin& a&ents formuch as the shi66in& documents are sent to the clearin& a&ents for

clearin& the consi&nment from the 1ustoms and dis6atchin& it to theclearin& the consi&nment from the 1ustoms and dis6atchin& it to the

hirer%hirer%

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rran+n +nan*erran+n +nan*e

inancial assistance in India for M*M units isinancial assistance in India for M*M units isavaila,le from a variety of institutions% Theavaila,le from a variety of institutions% Theim6ortant ones areim6ortant ones are

SI$1I:SI$1I:*mall Industries evelo6ment Ban@ of*mall Industries evelo6ment Ban@ ofIndia (refinance and direct lendin&India (refinance and direct lendin&

S"%s:S"%s:*tate level inancial 1or6oration e%&% elhi*tate level inancial 1or6oration e%&% elhiinancial 1or6oration%inancial 1or6oration%

0SI%:0SI%:National Micro" *mall and MediumNational Micro" *mall and Mediumnter6rises%nter6rises%

icro2 Small and edium Enterprisesicro2 Small and edium Enterprisesofofvarious states%various states%

%ommercial3%o-operative 1an4s%ommercial3%o-operative 1an4s%% $I%:$I%:istrict Industry 1entre%istrict Industry 1entre%

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nit Developmentnit Development

It involves=>It involves=>

#%#% 1onstruction of ,uildin&1onstruction of ,uildin&

2%2% Gettin& the )tility connectionsGettin& the )tility connections:%:% Gettin& :Ms ri&ht=>Gettin& :Ms ri&ht=>

aa MenMen

,, MachineryMachinerycc MaterialsMaterials

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%iling of Entrepreneurs Memoran'um%iling of Entrepreneurs Memoran'um

*ection ; of the*ection ; of the icro2 Small andicro2 Small and

edium Enterprises $evelopmentedium Enterprises $evelopment

5SE$6 !ct2 ,7785SE$6 !ct2 ,7786rovides for filin& of6rovides for filin& of

memorandum ,y a Micro" *mall ormemorandum ,y a Micro" *mall orMedium nter6rise%Medium nter6rise%

*u,>section (2 of section ; sti6ulates that*u,>section (2 of section ; sti6ulates that

the form of the Memorandum" thethe form of the Memorandum" the

6rocedure of its filin& and other matters6rocedure of its filin& and other mattersincidental thereto shall ,e such asincidental thereto shall ,e such as notifiednotified,y the 1entral Government%,y the 1entral Government%

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&pprovals&pprovals +icensin& in the Industries sector is &overned ,y+icensin& in the Industries sector is &overned ,y

the licensin& eem6tion notification issued ,ythe licensin& eem6tion notification issued ,yGovt% of India in uly 2? #99# under theGovt% of India in uly 2? #99# under theIndustries (evelo6ment and !e&ulation Act"Industries (evelo6ment and !e&ulation Act"#9?#%#9?#%

In **I" no industrial license is reDuired ece6t inIn **I" no industrial license is reDuired ece6t in

case of $ 6roduct &rou6s included in com6ulsorycase of $ 6roduct &rou6s included in com6ulsorylicensin&%licensin&%

But if a small>scale unit em6loys less than ?0#00But if a small>scale unit em6loys less than ?0#00or@ers ithithout 6oer then it ould notor@ers ithithout 6oer then it ould not

reDuire a license from the Govt% of India%reDuire a license from the Govt% of India% *u,8ect to this" an entre6reneur can set u6 a **I*u,8ect to this" an entre6reneur can set u6 a **Iunit anyhere in the country ithout anyunit anyhere in the country ithout anyrestrictionrestriction

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ClearancesClearances

An entre6reneur has to o,tain severalAn entre6reneur has to o,tain several

clearances or 6ermissions de6endin& u6on theclearances or 6ermissions de6endin& u6on the

nature of his unit and 6roducts manufactured%nature of his unit and 6roducts manufactured%

The various @inds of clearances are=>The various @inds of clearances are=>()() *egulatory or Ta9ation %learances*egulatory or Ta9ation %learances

,),) Environment & Pollution *elatedEnvironment & Pollution *elated

%learances%learances

)) Product Specific %learancesProduct Specific %learances

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,ualit$ Certification,ualit$ Certification

To avail the certification of I*/>9000" a unit has toTo avail the certification of I*/>9000" a unit has to

underta@e si&nificant costsunderta@e si&nificant costs 3oever" it has ,een decided to 6ush the Duality3oever" it has ,een decided to 6ush the Duality

u6&radation 6ro&ramme in the **I *ector in a ,i&u6&radation 6ro&ramme in the **I *ector in a ,i&

ay%ay%

In order to 6romote moderniation and technolo&yIn order to 6romote moderniation and technolo&y

u6&radation in **I" the units are assisted inu6&radation in **I" the units are assisted in

im6rovin& the Duality of their 6roducts%im6rovin& the Duality of their 6roducts%

A ne scheme has ,een launched to assist **I unitsA ne scheme has ,een launched to assist **I units

in o,tainin& I*/>9000 or an eDuivalent internationalin o,tainin& I*/>9000 or an eDuivalent internationalDuality standard%Duality standard%

*u,8ect to an u66er ceilin& of !s 0%7? lacs" each unit*u,8ect to an u66er ceilin& of !s 0%7? lacs" each unit

is &iven financial assistance eDual to 7?5 of theis &iven financial assistance eDual to 7?5 of the

costs incurred in acDuirin& the Duality standard%costs incurred in acDuirin& the Duality standard%

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Per/orman*e o/ Small S*ale "ndustr+esPer/orman*e o/ Small S*ale "ndustr+es

The economic indicators are=>The economic indicators are=>

#%#% ProductionProduction

2%2% m6loymentm6loyment:%:% 6ort6ort

C%C% /66ortunity/66ortunity

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SSIs IN INDI&SSIs IN INDI&stimated No% of )nitsstimated No% of )nits :%?7 Million:%?7 Million

m6loymentm6loyment #9%9$ Million#9%9$ Million

*hare in Industrial Ealue*hare in Industrial Ealue

AddedAdded:95:95

*hare in Total 6orts*hare in Total 6orts

#% irect#% irect

2% /verall2% /verallC?5C?5

:C5:C5

Total Num,er of ItemsTotal Num,er of Items

ProducedProduced/ver ;000/ver ;000

Num,er of !eservedNum,er of !eserved

ItemsItems$7?$7?

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TENDS IN -O.T/ SSI 0TENDS IN -O.T/ SSI 0

INDSTI&L SECTO (in 1)INDSTI&L SECTO (in 1) earear SSI SectorSSI Sector Industrial SectorIndustrial Sector

#99#>92#99#>92 :%#:%# 0%$0%$

#992>9:#992>9: ?%$?%$ 2%:2%:

#99:>9C#99:>9C 7%#7%# $%0$%0

#99C>9?#99C>9? #0%##0%# 9%C9%C

#99?>9$#99?>9$ ##%C##%C #2%##2%#

#99$>97#99$>97 ##%:##%: 7%#7%##997>9;#997>9; ;%C:;%C: ?%;?%;

#99;>99#99;>99 7%77%7 C%0C%0

#999>2000#999>2000 ;%#$;%#$ $%?$%?

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TENDS IN -O.T/ O% EM*LO2MENTTENDS IN -O.T/ O% EM*LO2MENT

IN SSI 0 INDSTI&L SECTO (in 1)IN SSI 0 INDSTI&L SECTO (in 1)

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As 6er the estimates com6iled forAs 6er the estimates com6iled for

the year 200?>0$" the em6loymentthe year 200?>0$" the em6loymentas 29C%9# la@h 6ersons in **Ias 29C%9# la@h 6ersons in **I

sector%sector%

The share of **Is in the totalThe share of **Is in the totalem6loyment amon& units en&a&ed inem6loyment amon& units en&a&ed in

manufacturin& and services is aroundmanufacturin& and services is around

:C%9:5%:C%9:5%

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#N 2$N 2$&