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
5
Micro, Small and Medium Enterprises (MSME) : Overview
Sources: msme.gov.in
Micro, Small and Medium Enterprises
(MSME) contribute natioanally
• 8 percent of the country’s GDP
• 45 percent of the manufacturing output
• 40 percent of the exports
• Largest share of employment after
agriculture
Classification of MSME(s)
Enterprises Manufacturing Enterprises:
Investment in Plant & Machinery
Service Enterprises:Investment in
Equipment
Micro Up to INR 2.5 Million Up to INR 1 Million
Small INR 2.5 Million – INR 50 Million
INR 1 Million – INR 20 Million
Medium INR 50 Million – INR 100 Million
INR 20 Million – INR50 Million
The Government encourages and honors innovation and enterprise. The state and central government bodies
work in close coordination with the Entrepreneurs, Industry Associations, Banks and other stakeholders
through numerous field offices and technical institutions to help the ‘engines of growth’ of India
6Sources: msme.gov.in ; Annual Report 2012-13 by Ministry of MSMEs, Government of India ; “Micro, Small and Medium Enterprise Finance in India-2013” :
Report by International Finance Corporation (World Bank Group)
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 over 6,000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India.
Micro, Small and Medium Enterprises (MSME) : Overview
7
Distribution
• The figures brought out by the latest MSME Report by Ministry of MSME(s) revealed the size of the registered MSMEs sector to be over 1.1 Million Enterprises
• Of the total registered working enterprises, the proportion of micro, small and medium enterprises were 94.94%, 4.89% and 0.17% respectively. This comprises of 67.10% manufacturing enterprises and 32.90% services enterprises.
Sources: Gujarat Micro, Small & Medium Enterprises Report 2013
94.94%
4.89%
0.17%
Proportion of total registered working enterprises
Micro Small Medium
67.1%
16.8%
16.1%
Sector-Wise Distribution
Manufacturing
Service
Repairing & Maintenenace
8
Growth of MSMEs in India
Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India
174,319
367,396
581,290
818,550
1,101,045
1,564,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Number of MSME(s) in Registered Sector
9
MSME Sector: Leading Industries (India)
Source: Annual Report 2012-13 by Ministry of MSMEs, Government of India
8.75%
6.94%
3.21%
2.33%
2.33%
3.64%
3.57%
39.85%
6.20%
3.77%
19.40%
Leading Industries: MSME Sector Manufacturing of Wearing Appearel; Dressing and Dying
Manufacture of Food Products and Beverages
Manufacture of Furniture; Manufacturing N.E.C
Manufacture of Fabricated Metal Products, Except MachineryEquipment
Manufacture of Textile
Hotels and Restaurants
Sale, Maintenance and Repair of Motor Vehicles and Motocyles; RetailSale of Automotive Fuel
Retail Trade, Except of Motor Vehicles and Motorcycles; Repair ofPersonal and Household Goods
Other Service Activities
Other Business Activities
Other
1.2. MSME : Gujarat Scenario
11
The strength of Gujarat’s manufacturing sector lies in its strong base of micro, small and medium
scale enterprises (MSMEs)
Ahmedabad, Surat, Rajkot, Vadodara, Bharuch, Jamnagar, Bhavnagar and Valsad are the 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
Micro, Small and Medium Enterprises (MSMEs)
0.55
2.16
Gujarat MSME Scenerio
Total MSMEsin Gujarat (inMillions)
Employmentgeneration instate (inMillions)
Rajkot
Valsad
Surat and Tapi
Vadodara
Ahmedabad
Bharuch
Bhavnagar
Jamnagar
Sources: MSME Division: Industries Comissioner Office, Gujarat
12
MSMEs in Gujarat
There are over 312,000 SSI(s) and over 261,000 MSME(s) in Gujarat as on March 2014
Sources: MSME Division: Industries Comissioner Office, Gujarat
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
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
0
500000
1000000
1500000
2000000
2500000
0
50000
100000
150000
200000
250000
300000
Cumulative Growth of MSME(s) in Gujarat
Number of MSME(s) Registered Investment (in hundred thousand USD) Employment
Total number of SSI(s) and MSME(s) registered in Gujarat > 525,000
13
Sector wise distribution of MSMEs in Gujarat
Sources: MSME Division: Industries Comissioner Office, Gujarat
69817
15443
13153
5459
4916
4548
3832
3764
3749
3613
25672175
1746
997
24084
47279
10271
Total MSME(s) Acknowledged up to 31 March 2014 IndustryTotal MSME(s)
Registered from 2006-2014
Textiles 69817Machinery and parts except electrical 15443Basic Metal Industries 13153Chemical & chemical Products 5459Rubber & Plastic Products 4916Food Products 4548Electrical Machinery and Apparatus 3832Non-metallic mineral Products 3764Leather Products 3749Paper Products & Printing 3613Mining and Quarrying 2567Wood Products 2175Transport equipment and parts 1746Beverages, Tobacco & Tobacco Products 997Service Activities 24084Trading Activities 47279Others 10271
14
118
30
76
8
18
2
105
72
71844
69308
10017
556
1140
120
12345
6610
Educational Infrastructure
Engineering Diploma Engg
Pharmacy Diploma Pharma
Arch. And Allied Hotel and tourism
MBA MCA
Sectorwise number of Degree Colleges, Gujarat, 2013
Sectorwise total number of seats in Degree Colleges, Gujarat, 2013
• 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
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 Gujarat • Established by the Department of Education, Government of Gujarat
it envisions to generate and provide ideas and paradigms forachieving excellence in education, educational management andpolicy framing for education in general and higher education inparticular so as to ensure that Gujarat carves a unique niche foritself in the global knowledge society in the 21st century
Policy of State to create Industry Responsive, readily employable, skilled manpower
The State government has introduced various schemes for training of industry responsive manpower. Currently Gujarat has 738 ITI(s) with a
total seats of 149,545 Seats
Gujarat has a good educational infrastructure with premier institutes in management, technology, fashion, design, infrastructure planning and pharmaceuticals
Availability of Skilled Man-power
Sources: Directorate of Technical Education, Gujarat
15
MSME Clusters in Gujarat
• The Government has identified a total of 106 product clusters inGujarat 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 atNational Level, as per ISED Small Enterprise Observatory
• The State Government has taken initiatives to extend support forstrengthening 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 industryassociations
• Micro and Small Enterprises -Cluster Development Program (MSE-CDP) is being implemented for holistic and integrateddevelopment of micro and small enterprises in clusters.
• Out of the total number of working
enterprises, 56.13% are located in the clusters
with an employment Contribution of 48.92% of
the total MSME employment.
• Out of the total gross output in the MSME
sector, the contribution of clusters is 45.84%.
• 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
16
Others
Paper Products
Plastic Products
Textile Industry
Food Products
Chemical Industry
Engineering
Mineral Products
Product Clusters in Gujarat
Sources: Gujarat Micro, Small & Medium Enterprises Report 2013
17
1.3. MSME : District-wise Detail
18
Ahmedabad
Ahmedabad
Airport: Sardar Vallabhbhai Patel International Airport, Ahmedabad; Lies in the influence area of DMIC
Dyes and Chemicals
Textile Machinery
Pharmaceutical Machinery
Moulded Plastic Products
Readymade Garments
Diamond Processing
Machine Tools
Castings & Forging
Steel Utensils
Wood work and Furniture
Paper Products
Leather Footwear
Washing Powder & Soap
Marble Slabs
Power driven Pumps
Auto Parts
Electronic goods
Did You Know?
Ahmedabad is
known as the MSME
Capital of Gujarat
Number of SSI(s) & MSME(s) 64836 (SSI)266911 MSME(s)
Number of Industrial Estates -GIDCs 13
Number of SEZ(s) 12
Number of Industrial Parks 10
Number of private industrial co-opestates
70
Number of Clusters 8
Number of ITI(s) 61
Major Ports Kandla, Mundra,Vadinar
Special Transport Facilities
• BRTS Mass Transport
• Expressway Fast Transport
Sources: MSME Division: Industries Comissioner Office, Gujarat
19
Rajkot and Morbi
Diesel Engines and parts
Submersible Pumps
Gold and Silver Jewelry
Salt Processing
Electronic
Watches and Clocks
Oil Mills
Textile Printing
Clay Floor Tiles
Electric Motors
Casting and Forging
Machine Tools
Diamond Processing
Paper Products
Number of SSI(s) & MSME(s) in Rajkot
and Morbi
20,832
Number of Industrial Estates 16
Number of Clusters 6
Number of ITI(s) 25
Nearest Port Navlakhi
Did You Know?
Rajkot is one of the most competitive
production centre in India offering
engineering services and is known as
“Manufacturing Hub of Gujarat”
Airport: Rajkot Domestic Airport
Rajkot
Morbi
Sources: MSME Division: Industries Comissioner Office, Gujarat
20
Surat and Tapi
Number of SSI(s) & MSME(s) in Surat 221511
Number of Industrial Estates 11 Govt.15 Private
Number of SEZ(s) 5
Number of Industrial Parks 8
Number of Clusters 3
Number of ITI(s) 48
Nearest Port Magdalla & Hazira
Paper Products
Diamond Cutting and Polishing
Textile
Powerlooms
Zari
Wood Products and Furniture
Rubber, Plastic and its Products
EngineeringDid You Know?
Surat accounts for about 80 % of
total diamond processing done in India, thus giving it
the name of‘The Diamond City’
Airport: Surat Airport; Lies in Influence area of DMIC
Indian Diamond Institute
Provides training,
consultancy and R&D
Services in diamonds,
coloured gemstones
and machine cast jewellery
Man Made Textile ResearchAssociation (MANTRA)
Provides R & D, Testing,
Technical and Quality
Control Services
Surat Tapi
Sources: MSME Division: Industries Comissioner Office, Gujarat
21
Vadodra and Chhota Udaipur
General Engineering
Pharmaceuticals (Bulk Drugs)
Plastic Processing
Wood Work and Furniture
Textile
Glass
Cotton
Tobacco
Fertilizer
Fisheries
Dairy
Paper Products
Number of SSI(s) & MSME(s) in Vadodara ~25,000
Number of Industrial Estates 11
Number of SEZ(s) 3
Number of Industrial Parks 4
Number of ITI(s) 48
Did You Know?
The city is on the major rail and road
arteries joining Mumbai with Delhi and Mumbai with
Ahmedabad. Because of this
Vadodara is known as a
‘Gateway to theGolden Corridor’
Airport: Vadodara Domestic Airport; Lies in influence area of DMIC
Vadodara
Sources: MSME Division: Industries Comissioner Office, Gujarat
Chhota
Udaipur
22
Bhavnagar
Ship Breaking
Steel Re-rolling
Machine Tools
Plastic Processing
Diamond Processing
Salt Processing
Number of SSI(s) & MSME(s) in
Vadodara
~15,000
Employment Generated >100,000
Number of Industrial Estates 10 GIDC
5 Private
Number of ITI(s) 28
Port(s) Bhavnagar
Bhavnagar contributes to 90 per cent of Magnesium
Hydroxide production tin India
Did You Know?
Alang & Sosiya Ship
Breaking Yard are
Asia's Biggest Ship
Breaking Yards. These
are now on a fast
paced growth towards
Ship Making &
Recycling
Airport: Bhavnagar Domestic Airport; Lies in influence area of DMIC
Paper Products
Wood Products
Textile Industry
Chemical Industry
Engineering
Bhavnagar
Sources: MSME Division: Industries Comissioner Office, Gujarat
23
Porbandar and Junagadh
Number of SSI(s) & MSME(s) in
Junagadh
SSI : 7181
MSME: 1352
Number of Industrial Estates 6
Number of Industrial Parks 1
Total number of Clusters 4
Number of ITI(s) 63
Ports Veraval Port
Number of SSI(s) & MSME(s) in
Porbandar
SSI : 1725
MSME: 628
Number of Industrial Estates 3
Total number of Industrial
Clusters
2
Number of ITI(s) 3
Machine Tools
Seafood products
Cement
Food Products
Chemicals
Glass and Ceramics
Did You Know?
Junagadh is famous in thecountry for production ofmango, mango basedproducts which is beingexports in various countries
Paper Products
Engineering
Junagadh
Porbandar
Sources: MSME Division: Industries Comissioner Office, Gujarat
24
Jamnagar and Devbhoomi Dwarka
Number of SSI(s) & MSME(s) in
Jamnagar and Dwarka Bhoomi
5640
Number of GIDC Industrial
Estates
11
Number of SEZ(s) 1
Number of Clusters 1
Number of ITI(s) 15
Ports Bedi Port, Okha
Port, Sikka Port,
Pindara Port,
Salaya Port
Airport Jamnagar
Domestic Airport
Brass Articles
Wood Products
&Furniture
Food Products
Chemical
Paper Products
Textile
Mineral Products
Engineering
Did You Know?
Brass metal parts cluster in
Jamnagar is famous worldwide
for its wide variety and quality of
products
Jamnagar
Devbhoomi Dwarka
Sources: MSME Division: Industries Comissioner Office, Gujarat
25
Bharuch and Valsad
Number of SSI(s) & MSME(s) in
Valsad
4634
Number of Industrial Estates 5
Number of Industrial Parks 2
Number of ITI(s) 5
Lies in the Influence Area of DMIC
Number of SSI(s) & MSME(s) in
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
Nearest Airport Vadodara
Dahej has been identified as a thrust area for large
scale industrial development by the Government of
Gujarat
Lies in the Influence Area of DMIC
Bharuch
Valsad
Chemicals
Paper & Pulp Industry
Textile
Wood Products
Petrochemical
Pharmaceutical
Textile
Light Engineering
Sources: MSME Division: Industries Comissioner Office, Gujarat
26
■ Promotes industrial development by bringing about industrial reforms
■ Monitors and Controls functions for planned industrial developmenthttp://ic.gujarat.gov.in/
IndustriesCommissionerate
(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
http://www.indextb.com/
IndustrialExtension Bureau(iNDEXTb)
■ GIDC has been created for securing the orderly establishment and organization of industries in industrial areas and industrial estates in the state
■ 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-specific estates in tune with the changing economic and industrial scenario
http://www.gidc.gov.in/
Gujarat Industrial
Development
Corporation
(GIDC)
Government Organizations for Assistance and Promotion of MSME(s)
27
MSME-DI (formerly Small Industries Service Institute), Ahmedabad covers the entire State ofGujarat covering 33 districts and Union Territories of Dadra & Nagar Haveli, Daman and Diu.
The Institute with its 2 Branch, Small Industries Service Institutes, one each at Rajkot andSilvassa and one Field Testing Station, Ahmedabad, serves the small scale industries in theseareashttp://www.msmediahmedabad.gov.in/
Micro, Mediumand SmallIndustriesDevelopmentInstitute
■ The program, 'SME Banking & Financial Services' has been designed to facilitate an in-depth understanding and develop skills in assessing financial needs of SMEs and designing appropriate financial intermediation
http://www.ediindia.org/
EntrepreneurshipDevelopmentInstitute of India
■ To develop entrepreneurs in state at urban and rural areas so that they can start their manufacturing or service venture for the economic growth and become self employed as well as provide employment to others.
■ The Entrepreneurship Development Program (EDP) develops confidence in a person to establish his own venture and manage it successfully
http://www.ced.gujarat.gov.in/
Center for Entrepreneurship Development (CED)
Institutes for Assistance to MSME(s)
Sources: MSME Division: Industries Comissioner Office, Gujarat
28
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.inIndo German Tool Room
Indo German Tool Room Ahmedabad is a tool room and training Centre engaged in production of tools of precision plastic & metal component and also engaged in area of Training in tool and die making, CAD/CAM &
CNC Technology.
www.igtrahd.comElectronics and Quality Development Centre
EQDC provides Testing, Calibration and Quality services throughout the nation ranging from Government, semi government, and private organizations to MSME are of twenty three states across the country and
abroad to Asiatic / Arabian countries.
www.eqdc.inCentral 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.inPharmaceutical Education and Research Development (PERD) Centre
Besides Research, PERD Centre provides some of the quality services to the industry in the areas of Bioequivalence, Toxicity studies, Biotechnology, Pharmacology and Phytochemistry.
www.perdcentre.com
29
MoU(s) Signed by MSME(s) in Vibrant Gujarat
1921
4494
12886
15813060
8863
0
5000
10000
15000
2009 2011 2013
MoU(s) Signed in Previous Versions of Vibrant Gujarat
Number ofProjects Signed
Number of Projects Comissioned or Under Implementation
Sources: MSME Division: Industries Comissioner Office, Gujarat
Year Number of MoU(s) Signed
Projects Commissioned Projects under Implementation
2009 1921 1558 23
2011 4494 2851 209
2013 12886 4848 4015
30
1.4. Government Schemes for
MSME(s)
31
Assistance to Micro Small and Medium Enterprises
Resolution No. MSM/102009/57928/IDate: 27/2/2009Extension GR: MSM-10-2013-2070-I (28/1/2014)
Sources: ic.Gujarat.gov.in
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.
Graded interest subsidy, @7% for micro enterprises and @ 5% for Small & Medium enterprises.
1% additional interest subsidy to youth having less than 35 years of age in case of first project. Woman entrepreneurs accorded priority.
Maximum amount INR 2.5 million per annum, for five years period
Venture capital assistance through Banks/FIs for projects adopting innovative technology such as Technical textile, Nanotechnology, Information Technology, Bio-Technology etc..
Funds to be provided to Banks/FIs up to Max INR 100 Million during the operative period of the scheme
Reimbursement @50% of fees, subject to maximum of INR 5000 per person for a minimum one week training for skill upgradation conducted by institutions suggested by Anchor Institute or specialized institutions in a specific sector for a minimum batch size of 25 trainees
Technology Acquisition Fund
Assistance for technology acquisition in any form for group of at least 10 MSMEs for specific product/process, by way of 50% grant, subject to max. INR 10 Million/ technology including royalty payments for first 2 years
Quality Certification
Assistance for maximum 3 quality certifications @ 50% of expenditure subject to overall ceiling of INR 600,000 in five years
Expenditure includes fees charged by certification agencies, cost of testing equipment, calibration charges, consulting fees and training charges
Support to R&D Institutions
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 and building cost.
Assistance for Contract/ Sponsored research work from Industrial units/Industry Association through recognized R&D institutions / AICTE approved technical colleges, @50% of project cost with a ceiling of INR 5 Million.
Patent Assistance
Assistance @ 50%. subject to max. INR 1 Million towards necessary expenditure for obtaining domestic patents and INR 2.5 Million for obtaining international patents subject to maximum 5 patents per unit over a period of 5 years
Energy and water conservation
Reimbursement @ 50% of cost of energy/ water audit with a max. of INR 25,000/- unit
In addition, assistance of 20% of cost of equipment subject to max. INR 1 Million in a project
Priority for group of units/clusters
32
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%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/ exhibition in Gujarat (max. INR 400,000) and int. seminars/ exhibitions in Gujarat (max. INR 800,000)
Assistance to industry associations for setting up Convention/ Trade center @ 50% of project cost excluding land, max INR 50 Million once in a period of five years
Assistance to Micro Small and Medium Enterprises
Resolution No. MSM/102009/57928/IDate: 27/2/2009Extension GR: MSM-10-2013-2070-I (28/1/2014)
Sources: ic.Gujarat.gov.in
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 commitment for procurement guarantee for 3 yrs.
Vendor unit will be eligible for interest subsidy as per scheme
Assistance @ 20% of infrastructure cost excluding land cost, max INR 10 Million to parent unit for development of 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 to develop industrial park for accommodating min. 20 units.
Assistance @ 20% of infrastructure cost excluding land cost subject to max. INR 10 Million
Cluster Development
Anchor units, nodal institutions and/ or industry associations to take up the cluster program in PPP mode. Comprehensive support to strengthen cluster units in a program covering product design, technology upgradation,
quality improvement, energy and water conservation, common branding and marketing facilities, hiring of an expert/ cluster development agent, setting up of demonstration plants, common facilities, Incubation center, ITI extension center and other need based facilities
Assistance @ 80% (including assistance from Government of India) of proposed cost of program with a ceiling of INR 100 Million/ cluster in a period of 3 - 5 years
Assistance to nodal institutions/ hiring of experts will not exceed 3% of project cost A Cluster Advisory Institution (CAI) to be constituted 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.
33
Assistance to Micro Small and Medium Enterprises
Awards to best MSMEs
Separate awards to Micro, Small and
Medium category
Three awards in each category
o Growth in production and profit
o Quality and Environment
improvement measures
o Innovation in technology for new
product or process development
Award in the form of INR 100,000 cash and
appreciation letter
Awardees are to be given priority in
participation in International Seminars
Independent Credit Rating agency to be
appointed to select the best performing
MSMEs in the above categories
Nominations to be encouraged from
Industries Associations
Rehabilitation of Sick Units
50% subsidy on cost of diagnostic study by Technical institution initiated through FI/ Bank/ Government-maximum INR 100,000.
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 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
Other unit taking over a sick unit for rehabilitation to be eligible for assistance as above
Resolution No. MSM/102009/57928/IDate: 27/2/2009Extension GR: MSM-10-2013-2070-I (28/1/2014)
Sources: ic.Gujarat.gov.in
Promotion of Specific Sector
Specific sector identified in a district shall be supported with integrated program of interest subsidy, technology upgradation and quality certification
Eligibility for Quantum Assistance
All eligible MSME can avail incentives
under different categories separately or
in combination. Assistance will be given
only once under each category in five
years period unless otherwise specified in
specific category of incentive.
34
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.
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/ diversification of existing enterprises as well as the units with second hand eligible imported machineries.
The units who purchase electricity only from the state electricity / power distribution licensee will eligible for this relief
Refund of VAT paid by unit on purchase of intermediate product/raw material except for certain goods and certain transactions which are not eligible for tax credit under The Gujarat VAT Act, 2003 and reimbursement of tax collected on end product/intermediate product within entire value chain from cotton to Garment and made ups to the extent of 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.
The concession will be available within 8 years from the date of the production.
Scheme 1
Resolution No. TEX/102012/65117/T Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in
35
Assistance to Textiles and Apparels
Support to Technical Textiles
■ Credit linked Interest Subsidy @ of 6% per annum for investment in New and modern Plant and Machinery as specified under TUF scheme of GoI or covered under definitions of capital goods in VAT Act would be eligible .
■ The scheme will be applicable to new as well as to existing enterprise for expansion / up gradation in above sectors.
■ The enterprise which have acquired second hand machineries having 10 years vintage & with residual life of minimum 10 years duly certified by the competent authority will be considered eligible for support to the extent of 60 % of the acquisitionvalue of imported machineries.
■ The acquisition value of the second hand machinery shall be considered up to 50% of the value of new imported machinery or actual whichever is less.
Scheme-2
Assistance for Energy & Water Conservation and Environmental Compliance to existing Unit
■ Assistance up to 50%, max INR 50,000 for Energy Audit/Water Audit/ Environmental Compliance. Assistance of to 20% cost of equipment limited to INR 2 Million .
■ The Enterprises will be eligible for the above benefit once in 2 years of operating period of the scheme
Scheme 3
Assistance for Technology acquisition and up gradation
■ The enterprise acquiring the technology for the first time in India will be considered eligible under the scheme.
■ Assistance up to 50%, with max of INR 2.5 Million per process/product
Scheme 4
Resolution No. TEX/102012/65117/T Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in
36
Textile & Apparel Park
Scheme-7 Support for Establishing Textile and
Apparel park
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 land cost
The park must have provision for the location of minimum 20 nos. of manufacturing/service enterprises.(Max 25% nos. of service enterprises).
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 activities to support spinning activities.
Stamp duty exemption certificate will by issued after approval of the project by SLAC.
Training Support
Scheme-5 Assistance for Apparel training Institutions and Trainees
Autonomous institutions promoted by government/public/private sector undertaking with strong background in this field
Assistance up to 85%, maximum INR 30 Million excluding land cost for training Institutes
Assistance up to 50% maximum INR 2 Million for training Centers
Reimbursement of tuition fees to trainees up to 50% maximum INR 7,000 per course for ten years from date of commencement
Scheme-6 Training Support to power-loom Sector
Stipend of INR 2,500 per trainee to trainees of 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 of six days.
No allowances will be given to Power loom Owner
Assistance to Textiles and Apparels
Resolution No. TEX/102012/65117/T Dt. 5.9.2012, (Rev. Dt.25.6.2013) Sources: ic.Gujarat.gov.in
37
Assistance to Manufacturing Sector
Assistance for Core Infrastructure
■ This assistance will be for enabling basic infrastructure facilities.
■ The expenditure incurred for the core infrastructure 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 registration charge on purchase of land
■ Certificate for exemption in Stamp Duty and Registration charges shall be issued after the approval of the project by SLAC.
Interest Subsidy
■ Graded interest subsidy for five years @ 7 % for MSMEs & 2% for large Industries having an actual investment up to INR 1 Billion.
■ Maximum amount of interest subsidy per annum shall be INR 2.5 Million for MSMEs & INR 5 Million for large units
Assistance for Setting up of Common Facilities
■ Group of industries, Industrial Associations/ SPV of Industrial Associations or private company registered under the Societies Act, Partnership Act or the Companies Act shall be eligible to avail assistance.
■ One time assistance up to 80 % of the total expenditure limited to 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.
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.
■ 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
Assistance for Centre of Excellence
■ Center of Excellence in PPP mode with State/ State institution/ industrial units/ professional institutes shall be eligible for assistance under this scheme.
■ Quantum of one time assistance shall be 70 % of the total expenditure, including recurring 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 expenditure for the three years, limited to INR 300 Million in the case of international level COE promoting value addition in the six sub sectors and in the area of innovation and entrepreneurship
Govt. of Gujarat Introduced following schemes for 5 Manufacturing Sectors namely Auto & Auto Components, Solar & Wind Equipmentmanufacturing, Specialty & fine chemicals, Electronic System design & manufacturing and Food & Agro Business.
Resolution No. BJT-102012-92765-I Dt. 26.2.2013 Sources: ic.Gujarat.gov.in
38
Improving Industrial Infrastructure
Improving
Industrial
Infrastructure
Assistance to be considered for Upgrading infrastructure facilities
as may be required in an industrialestate / clusters/industrial area.
Additional infrastructure facilities. Upgradation of infrastructure
facilities in GIDC estates and Undertaking specific studies.
Industries Associations, Large Industry,Govt. Dept./agency, to be eligible.
Assistance will be @60% of the project costwith a ceiling of INR 100 Million in case ofIndustrial area / Park having less than 100hectares and INR 200 Million for area morethan 100 hectares
The promoter is to contribute 20% ofequity in the project.
Last mile connectivity project to theindustrial park / area having more than 25hectares to be considered.
Assistance to Industries Associations /Industrial houses or Institutions for setting upindustrial park in PPP mode.
Industrial park must have basic infrastructurefacilities to be classified into C, B & Acategories depending upon the minimuminfrastructure facilities.
Assistance will be in the form of Viability GapFunding upto 20% of the cost through GIDB.
Additional Assistance upto 20% may beprovided by the Central Government
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 asmay be required.
The Industrial Park/Estate will be provided an assistance of INR 100 Million for link infrastructure. 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 therate of 50% of the duty
Scheme for assistance to Industrial Park/Estate set up by Private Institution
Sources: ic.Gujarat.gov.inResolution No. BGT/1008/626/GDt. 27/02/2009
Scheme for Assistance to Set Industrial Park/.Estate set up by Private Institution added in:Addendum No: BJT/1008/626/Part-1/GDt. 20/10/2011
39
Assistance for encouraging green practices and Environmental Audit
to MSMEs
Assistance Environment Management to MSMEs
Assistance for Environment
Protection Measures- MSME
Units
• Substitution & Optimization of raw material including catalysts up to 25% of cost of plant & machinery , ceiling of INR 1 Million per project
• Rainwater harvesting up to 50% of cost of fixed capital investment ceiling of INR 500,00 per project
• 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 clean technology measures etc. 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 of audit services or maximum INR 25, 000/unit
• Encouraging Environment Management System-setting up of Environment Management Cell up to 25% of cost of equipment , or maximum INR 500,000/plant once in a lifetime
Purchase of new equipment/systems relatedto safety, occupational health for a cluster ofindustries Assistance to industrial association orSPV of Industrial units up to 25% of cost ofequipment or maximum INR 2.5 Million percluster.
Installation of Solar system leading to atleast 5% energy saving Up to 25 % of thecost of system, INR 250,000 per plant
Assistance for Environment Protection Measures
Resolution No. BGT/1008/499(1)-G and BGT/1008/499(2)-GDt. 11/06/2009 Sources: ic.Gujarat.gov.in
40
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,
75% in industrial cluster and
50% in industrial Parks/ SEZs
with a ceiling of INR 10 Million for each
Extension Centre towards cost of Machinery and
equipment
Assistance to State Level Anchor Institutes in the selectedfocus sectors towards expenditure on equipment,internal refurnishing of premises and contingency. Additional financial support towards operating expenses
to Anchor and Nodal Institutes. Anchor Institute to actively involve industries and
provide technical support to the technical educationalinstitutions for shop floor workers, supervisory andmanagerial level training. The total financial assistance under both capital
and expenses will not exceed INR 100 Million ineach sector in the operative period of the scheme.
Assistance to Institutes / Universities/
Industries / Industries Associations for setting up
specialized training Centre in the areas of marine
engineering, mining, specialized pipe laying, logistic and
services etc. and other advanced technology and management
courses to the extent of 50% of the project cost covering
building, equipment and machinery excluding land cost with a
ceiling of INR 20 Million
Industry Partner could run the courses fromexisting courses with addition of certain subjects.Alternatively new course can be started as per thespecific requirements by industry in existingITI/Polytechnic/ Engineering Colleges.
Assistance @ 75% cost of machinery and equipment upto INR 10 Million contributed jointly by DTE/DET/IC. Industry partner/industries Association / institutes to
contribute rest of the amount and provide infrastructurefacilities in the form of land and building. Institutional Management Committee (IMC) to monitor
and run the course
Enhancement of Technical Competence and Man Power
Resolution No. CED-112007/ 2081(1)/IDt. 27/02/2009
41
Mission Mangalam (Under Gujarat Livelihood Promotion Company Ltd.)
Integrated poverty alleviation approach in a demand driven convergence mode
Single platform for stakeholders like Banks, Industry Partners, Micro Finance Institutes and Skill Imparting Institutions, etc.
Financial Literacy Universalization of SHG(s) Setting up MIS and innovative monitoring
Systems
Around 24 lakh women are currently active under 2 lakh Sakhi Mandals / Self Help Groups (SHGs) in the state, managing aroung INR 10 Billion through bank linkage.
CurrentStrength ofSelf Help Groups
Single Platform for Stakeholders
Approach
Further GrowthStrategy
Missio
n M
an
galam
Gujarat’s most precious resource is 'people' and
their potential to work towards collective
betterment of the state and eventually the nation.
Poverty becomes an hindrance for optimum
utilization of this resource and its potential.
Poverty has numerous manifestations including
low and unreliable income, poor health, low levels
of education and literacy, insecurity and uncertain
access to justice, disempowerment and isolation
from mainstream socio-economic development.
Mission Mangalam, through its multi-dimensional
policies and interventions aims to provide
permanent solutions. It strives to provide options
of income generating opportunities, ready to
access means of production, affordable basic
services and protection of law. Thus, 'Mission
Mangalam' is a complete package with all these
elements incorporated in it.
Sources: http://www.glpc.co.in/
42
FOR ADDITIONAL INFORMATION CONNECT US @
Block No. 1, 2nd Floor, Udyog Bhavan,
Gandhinagar, Gujarat, India - 382 010
http://ic.gujarat.gov.in/
Phone: 079-23252683
E-mail: [email protected]
Block No. 4, 2nd floor, Udyog Bhavan,
Gandhinagar, Gujarat, India – 382 010
http://www.gidc.gov.in/
Phone: 079-23250583
E-mail: [email protected]
Gujarat Industrial Development Corporation
Industries Commissionerate
43
Knowledge Partner National PartnerOrganized By
Visit us at www.vibrantgujarat.com