Micro, Small and Medium

Enterprises Department



Policy Note
2013 - 2014




Demand No.44








P. Mohan
Minister for Rural Industries




Government of Tamil Nadu
2013
CONTENTS

S.No Description Page

1.

Preamble

1


2.

Commissionerate of
Industries and Commerce


14


3.

Tamil Nadu Small
Industries Development
Corporation (SIDCO)


66



4.

Tamil Nadu Small
Industries
Corporation(TANSI)


103



5.

Entrepreneurship
Development Institute
(EDI)


111


6

Conclusion

122


MICRO, SMALL AND MEDIUM ENTERPRISES
DEPARTMENT
Policy Note 2013-14

'coo OoComm c_ mcoo OoComm
Commoo OoComm _mmmmoo OoComm.........
mm OoComm _de mJoo OoComm
ceog Ogmgd _mg_m co__ OoComm
- kfhf ghuah
"Let us make umbrellas and ploughshares;
Let us make gunnies and nails of iron..............
Let us make paintings and needles
Let us willingly undertake all trades of world"
- Mahakavi Bharathiyar


1. Preamble
The Micro, Small and Medium Enterprises
(MSME) play a pivotal role in the economic and
social development of the country, often acting as a
nursery of entrepreneurship. The MSME sector
contributes significantly to the country's
manufacturing output, employment and exports.




2


1.1 The MSME sector in the Global Economy

Micro, Small and Medium Enterprises
(MSMEs) are a very heterogeneous group of
businesses usually operating in the manufacturing,
trade, agri-business, and service sectors. They
include a wide variety of firms such as village
handicraft makers, small machine shops, and
computer software firms that possess a wide range
of sophistication and skills. Some are dynamic,
innovative, and growth-oriented while others are
satisfied to remain small and perhaps family owned.
MSMEs usually operate in the formal sector of the
economy and employ mainly wage-earning workers.
MSMEs are often classified by the number of
employees or by the value of their assets. The size
classification varies within regions and across
countries relative to the size of the economy and its
endowments.
The major advantage of the sector is its
employment potential at low capital cost. The
labour intensity of the MSME sector is much higher

3

than that of large enterprises. MSMEs constitute
more than 90% of total enterprises in most of the
countries.
1.2 MSMEs in India
In India MSMEs play an essential role in the
overall industrial economy of the country. In recent
years, the MSME sector has consistently registered
higher growth rate compared with the overall
industrial sector. With its agility and dynamism, the
sector has shown admirable innovativeness and
adaptability to survive the recent economic
downturn and recession.
The MSME sector in India is highly
heterogeneous in terms of the size of the
enterprises, variety of products and services, and
levels of technology. The sector not only plays a
critical role in providing employment opportunities at
comparatively lower capital cost than large
industries but also helps in industrialization of rural
and backward areas, reducing regional imbalances
and assuring more equitable distribution of national

4

income and wealth. MSMEs complement large
industries as ancillary units and contribute
enormously to the socio-economic development of
the country.
MSME Sector plays a major role in ndia's
present export performance. As per available
statistics (4
th
Census of MSME Sector), this sector
employs an estimated 597 lakh persons spread
over 261 lakh enterprises. It is estimated that in
terms of value, MSME sector accounts for about
45% of the manufacturing output and around 40%
of the total export of the country. As a result,
MSMEs are today exposed to greater opportunities
for expansion and diversification across the sectors.
The Indian market is growing rapidly and
Indian industry is making remarkable progress in
various Industries like Manufacturing, Precision
Engineering, Food Processing, Pharmaceuticals,
Textile & Garments, Retail, Information Technology
(IT), Agro and Service sectors. MSMEs are finding
increasing opportunities to enhance their business
activities in core sectors.

5


1.3 MSMEs in Tamil Nadu

The MSME sector has a major contribution to
the economy of Tamil Nadu. Tamil Nadu has 8.44
Lakh registered MSMEs (as on 28.2.2013). This
sector contributes about `10% to the GSDP,
provides employment to about 58.83 Lakh persons
and accounts for a total investment of Rs. 48,189
Crores. MSMEs in Tamil Nadu produce over 8000
varieties of products including engineering products,
electrical, electronics, chemicals, plastics, steel,
cement, paper, matches, textiles, hosiery and
readymade garments.
As per the 4
th
All India Census of MSMEs
(2006-07) Tamil Nadu Accounts for 14.95% of the
total working enterprises in the country. 15.24% of
these enterprises are micro enterprises, which is
the highest in the country. 9.60 % of them are
small enterprises, which is the 3
rd
highest in the
country. Further 9.21% are medium enterprises,
which is the 2
nd
highest in the country. MSMEs in

6

Tamil Nadu provides the largest number of
employment in the country (15.32%).
Growth of the SSI (MSME) Sector over the
Five Year Plan periods in Tamil Nadu is furnished in
the following table:
Growth of the SSI (MSME) Sector over the Plan
periods in Tamil Nadu
Period
No. of
registered
SSI
(MSME)
Units
Investment
(Rs. in
Crores)
Production
(Rs. in
Crores)
Employ-
ment
(Nos.)
End of V Five Year Plan (1974-79)
7,544 325.74 1,391.24 22,164
End of VI Five Year Plan (1980-85)
45,891 829.84 3,949.53 448,163
End of VII Five Year Plan (1985-90)
99,290 2,198.92 7,322.69 928,464
End of VIII Five Year Plan (1992-97)
255,694 6,547.73 17,055.42 2,257,055
End of IX Five Year Plan (1997-02)
4,19,524 12,166.19 83,904.80 3,104,477
End of X Five Year Plan (2002-07)
5,30,552 16,819.82 1,05,979.51 3,703,408
End of XI Five Year Plan (2007-12)
7,60,269 39,438.13 1,66,951.19 52,99,875
The table given below indicates the growth of
Micro, Small and Medium Enterprises during the
last ten years and the level of investment,
production, employment, etc., in Tamil Nadu.
Growth of MSMEs in Tamil Nadu for the past 10 years
Year
Number
of units
Investment
(Rs. in
Crores)
Production
(Rs. in Crores)
Employment
(Numbers)
2003-04 25794 722.16 5158.80 322967
2004-05 16253 1105.81 4556.97 60280

7

2005-06 20399 1705.20 4414.87 67800
2006-07 19201 714.41 2067.87 110026
2007-08 27209 2547.14 8739.95 242855
2008-09 32049 3557.89 13354.86 294255
2009-10 41799 3214.22 10880.01 151743
2010-11 57902 5872.37 12500.86 405233
2011-12 70758 7429.59 15496.00 502381
2012-13
Upto Feb
2013
83348 8751.54 17503.08 583436

There has been a phenomenal growth in the
number of small scale industries in Tamil Nadu from
4,74,699 units in 2003 to 8,43,617 units as on
28.02.2013.

1.4 Vision and Strategy

The SME sector in developing economies is
confronted with a wide range of structural issues
and challenges. Tamil Nadu has in the recent past
seen significant growth in entrepreneurial spirit and
management skills. However, the increasing
usage of Information and Communication
Technology (ICT) and the outsourcing and
networking strategies adopted by large enterprises
and multinational corporations (MNCs) require

8

SMEs to undertake proactive measures to ensure
their business sustainability. Appropriate and
effective facilitation of SMEs in an economy can be
achieved through structured, organised and
targeted action plans and development
programmes for SMEs.
The Tamil Nadu vision 2023 has listed the
following as the major issues confronting the SME
sector:
Access to finance
Conducive regulatory and policy
environment
Access to technology
Market access
Infrastructure availability

The Vision document has also suggested a
strategy for effectively addressing the above issues
through a combination of policy measures, skill
development and infrastructure facilities. Measures
such as cluster development will be adopted in
implementing focused initiatives to make SMEs

9

competitive. The cluster development initiative will
include both ancillary clusters based on large
mother industries and stand alone clusters.
It has been planned to generate 15 lakh
additional employments during the XII Five Year
Plan period in the State.

1.5 Micro, Small and Medium Enterprises
Department

This Department has following four major
organisations under its ambit.
a. The Commissionerate of Industries
and Commerce
b. The Tamil Nadu Small Industries
Development Corporation Limited
(SIDCO)
c. The Tamil Nadu Small Industries
Corporation Limited (TANSI)
d. The Entrepreneurship Development
Institute (EDI).

The Commissionerate of Industries and
Commerce, the Tamil Nadu Small Industries
Development Corporation Limited (SIDCO) and the
Tamil Nadu Small Industries Corporation Limited

10

(TANSI) play a significant role in issuing industrial
clearances and granting subsidies, allotment of
industrial plots, providing and developing of
infrastructure facilities and supply of plant and
machineries required by the Micro, Small and
Medium Enterprises. The Entrepreneurship
Development Institute, popularly called EDI was
constituted by the Government in 2001 with the aim
of fulfilling the long felt need for creating a platform
for catering to the training needs of micro, small and
medium enterprises.

1.6 The Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006


Government of India enacted the Micro, Small
and Medium Enterprises Development (MSMED)
Act, 2006 to facilitate integrated development of
Micro, Small and Medium Enterprises. It provides
the first-ever legal framework for recognition of the
concept of enterprises which comprises both
manufacturing and service entities. It defines
Medium Enterprises for the first time and seeks to

11

integrate the three tiers of these enterprises,
namely, Micro, Small and Medium. The Act also
provides for a statutory consultative mechanism at
the National level with balanced representation of
all sections of stake-holders, particularly the three
classes of enterprises and with a wide range of
advisory functions. As per the MSMED Act 2006,
the enterprises are classified into manufacturing
and service enterprises based on their investment
in plant and machinery / equipment (excluding land
and buildings) as indicated below:-
Manufacturing Enterprises
Micro Manufacturing Enterprises Upto Rs. 25 Lakhs
Small Manufacturing Enterprises Above Rs.25 Lakhs
and upto Rs.5 Crores
Medium Manufacturing
Enterprises
Above Rs. 5 Crores
and upto Rs.10 Crores

Service Enterprises
Micro Service Enterprises

Upto Rs. 10 Lakhs
Small Service Enterprises Above Rs. 10 Lakhs
and upto Rs. 2 Crores
Medium Service Enterprises Above Rs. 2 Crores
and upto Rs. 5 Crores

12

1.7 The Micro, Small and Medium Industries
Policy 2008

Government of Tamil Nadu introduced
exclusive policy for the Micro, Small and Medium
Enterprises to provide holistic frame work for annual
growth rate of over 10 per cent for MSMEs on
sustainable basis and to generate direct and
indirect employment opportunities to the tune of 10
Lakhs during the XI Five Year Plan period.
The Policy provides for incentive schemes,
infrastructure development, technology up-
gradation, skill development, marketing support,
deregulation and simplification, administrative
reforms and rehabilitation of sick enterprises in the
State.
The objective of generating 10 Lakh
employment opportunities was achieved by
motivating entrepreneurs in the State to take up self
employment and industrial ventures through various
financial incentives and promotional schemes
announced in the MSME Policy of the State. The
details of employment generated through various

13

schemes implemented by the State during the XI
Plan period are given below:-
Employment generation in the MSME Sector
during the XI Plan period (as on 31.03.2012)
S.
No
Scheme
Nomenclature
Employment Generation
2007-
08
2008-
09
2009-
10
2010-
11
2011-
12
Total
1. PMRY / PMEGP
Scheme
52655 22712 20968 20080 8700 125115
2. NAMT / UYEGP
Scheme
1180 370 343 1054 12272 15219
3. MSME Registra
tion(EM Part II)
72972 63013 88036 221930 219620 665571
4. Cottage
Industries
Registration
13958 14280 21644 51322 48169 149373
5. Handicrafts
Industries
Registration
8134 8402 13905 33189 30282 93912
6. Industrial
Cooperatives
1700 1569 1133 2570 1122 8094
Total 150599 110346 146029 330145 320165 1057284
It has been planned to generate 15 lakh
additional employments during the XII Five Year
Plan period in the State. During the first year of XII
Five Year Plan (2012-13), employment
opportunities has been created for 3,12,263 (upto
28.02.2013) in the State.



14

2. The Commissionerate of Industries and
Commerce

The Commissionerate of Industries and
Commerce is the state level agency for the
development of industries in general and micro,
small and medium enterprises in particular. There
are District Industries Centres (DICs) functioning in
all the 32 Districts. In Chennai, the Regional Joint
Director heads the District Industries Centre. These
Centres provide a variety of services to the
entrepreneurs, like, identification of activities, the
preparation of project profiles, obtaining financial
assistance from various financial institutions,
statutory clearances from Government
Departments, sanction and disbursement of eligible
subsidies and facilitation in obtaining delayed
payments.
2.1 Filing of Entrepreneur Memoranda
Based on Government of India, MSMED Act
2006 registration of SSI was abolished. Under the
new provisions, MSMEs can file Entrepreneur
Memoranda with department.

15

The filing of an Entrepreneur Memorandum
is optional for micro and small manufacturing /
service enterprises and medium service
enterprises, but compulsory for medium
manufacturing enterprises as per the MSMED Act,
2006. Any person who intends to start a micro or
small enterprise may now file this memorandum, on
a voluntary basis, in the prescribed format with the
General Manager, District Industries Centre of the
concerned District and in case of Chennai with the
Regional Joint Director of Industries and
Commerce, Chennai.
The Department has introduced a user
friendly system for the Online filing of the
Entrepreneur Memoranda, Parts I and II, by which
any MSME entrepreneur can log on to the website
www.msmeonline.tn.gov.in and file his application
online and obtain the EM acknowledgement
instantly, without visiting the District Industries
Centres.
This scheme of online filing has evoked good
response and so far 3,07,377 Entrepreneur

16

Memoranda (Part-I) and 2,03,571 Entrepreneur
Memoranda (Part-II) have been issued online upto
28.02.2013.
Filing of online Entrepreneur Memoranda
Year
EM Part I EM Part II
Manual Online Total
Online
%
Manual Online Total
Online
%
2007- 08 35072 - 35072 0.0 27209 - 27209 0.0
2008- 09 22037 21395 43432 49.3 22642 9407 32049 29.4
2009- 10 11711 55177 66888 82.5 10673 31126 41799 74.5
2010- 11 12059 65760 77819 84.5 16514 41388 57902 71.5
2011- 12 9999 73935 83934 88.1 18867 51891 70758 73.3
2012- 13
(upto
28-02-2013)
9096 68187 77283 88.2 14696 58994 73690 80.05

As seen from the above data, the
percentage of online filing of EM Part I & EM
Part II has gone up significantly over the years.
2.2 Incentive Schemes
The following incentive schemes are
extended by Government to Micro, Small and
Medium enterprises in the State:-

17

2.2.1 Exclusive subsidy schemes for micro
manufacturing enterprises established in
the State

All micro manufacturing enterprises are
entitled to a capital subsidy at the rate of
15% on the value of plant and machinery
subject to maximum of Rs.3.75 Lakhs.

Low Tension Power Tariff Subsidy is
provided at a flat rate of 20% for the first
3 years from the date of commencement of
production or from the date of power
connection, whichever is later.

All micro manufacturing enterprises are
entitled to a 100% subsidy on the net Value
Added Tax paid by them for the first 6 years
from the date of commencement of
production, up to the value of the
investments made in the Plant and
Machinery. The above reimbursement of
Value Added Tax would be on quarterly basis

18

i.e. the tax paid during one quarter will be
reimbursed to the enterprise as subsidy
towards the payment of tax during the next
quarter
Micro manufacturing enterprises are
exempted from payment of stamp duty on
mortgaged and pledged documents.
2.2.2 Subsidy schemes for micro, small and
medium manufacturing enterprises
established in industrially backward blocks
and agro based enterprises set up in all the
blocks in the State

All Micro, Small and Medium Manufacturing
Enterprises established in 251 industrially backward
blocks, Industrial estates promoted by the
Government and Government Agencies like State
Industries Promotion Corporation of Tamil Nadu
(SIPCOT), Tamil Nadu Small Industries
Development Corporation Limited (SIDCO), etc.,
(excluding industrial estates located within a radius
of 50 Kms from Chennai city centre) and agro
based enterprises set up in all the 385 Blocks in the

19

State are eligible for the following package of
incentives:-
(i) Capital subsidy is extended to the micro,
small and medium manufacturing enterprises,
at the rate of 15% on the value of plant and
machinery subject to a maximum of Rs.30
Lakhs.
(ii) An employment intensive subsidy of an
additional 5%, on the value of plant and
machinery for providing employment to 25
workers for 3 years within the first 5 years
from the date of commencement of
commercial production, subject to a
maximum of Rs.5 Lakhs.
(iii) An additional capital subsidy of 5%, subject
to a maximum of Rs. 2 Lakhs is given to
enterprises set up by Women, SC / ST,
Differently abled persons and Transgender
entrepreneurs.

20

(iv) An additional capital subsidy of 25% is given
on the value of plant and machinery
installed to promote cleaner and environment
friendly technologies subject to a maximum of
Rs.3 Lakhs and certification by the Tamil
Nadu Pollution Control Board, that the
equipments installed serve such a purpose.
(v) Low tension power tariff subsidy at a flat rate
of 20% for the first 3 years from the
date of commencement of commercial
production or from the date of power
connection whichever is later.
2.2.3 Special Capital Subsidy for Thrust Sector
Enterprises set up in the State

The Government of Tamil Nadu provides a
Special Capital Subsidy of 15% on the eligible plant
and machinery (subject to a maximum of Rs.30.00
Lakhs) to the 13 thrust sector enterprises setup
anywhere in the state viz., Electrical and Electronic
Industry, Leather and Leather goods, Auto parts
and components, Drugs and Pharmaceuticals,

21

Solar Energy Equipment, Gold and Diamond
Jewellery for exports, Pollution Control equipments,
Sports Goods and Accessories, Cost effective
building materials, Readymade Garments, Food
Processing, Plastic and Rubber Industries.
The Government have sanctioned Rs.60.00
Crores towards all the Capital Subsidy schemes for
the year 2012-13.

2.2.4 Generator Subsidy
The Government extends Generator subsidy at
25% of the cost of the Generator set, subject to a
maximum of Rs.5 Lakhs to micro, small and
medium manufacturing enterprises towards the
purchase of new Generator sets upto 320 KVA
capacity. The Government have sanctioned
Rs.23.48 Crores for the year 2012-13, to meet the
growing demand from the micro, small and medium
enterprises.




22

2.2.5 Back-ended Interest Subsidy
The Government provides 3% Back-ended
interest subsidy, subject to a maximum of Rs.10.00
Lakhs for a period of 5 years to micro, small and
medium manufacturing enterprises for term loans
up to Rs.100 Lakhs for
Technology up-gradation / modernization
National Equity Fund (NEF) Scheme
ISO certification
Research and Development resulting in
registration of patents and intellectual
property rights.
Credit Guarantee Fund Trust Scheme
(CGFTS)

The Government have sanctioned Rs. 36.34
Lakhs for the year 2012-13 towards the
implementation of the scheme.

2.2.6 Value Added Tax Reimbursement Subsidy
All micro manufacturing enterprises are
entitled to a 100% subsidy on the net Value Added

23

Tax paid by them for the first 6 years from the date
of commencement of production, upto the value of
the investments made in eligible Plant and
Machinery. The Government have sanctioned
Rs.3.50 Crores for the year 2012-13 towards the
implementation of the scheme.

2.2.7 Low Tension Power Tariff subsidy
All Micro, Small and Medium Enterprises
units are eligible for sanction of 20% of total
electricity charges for the first 3 years from the date
of commencement of production or from the date of
power connection, whichever is later. The following
categories of enterprises are eligible for Low
Tension Power Tariff subsidy:
All new Micro Manufacturing Enterprises set
up anywhere in the State
All New Micro, Small, Medium, Agro based
and Food Processing Enterprises set up in
all 385 blocks in the State.
All New Small and Medium Manufacturing
Enterprises set up in backward areas and

24

industrial estates, excluding the industrial
estates located within the radius of 50 Kms
from Chennai city centre.
Existing Manufacturing Enterprises of the
above three categories which have taken up
substantial expansion / diversification of their
existing activities.
The Government have sanctioned Rs.6 Crores
for the year 2012-13 towards the implementation of
the scheme.

2.3 Schemes for Technology Development
Government provides assistance to MSME's
for technology development through following
schemes:-
50% subsidy on the cost of filing a patent
application subject to a maximum of
Rs.2 Lakhs per application.
50% of the cost of the application for
trade mark registration or Rs.25,000/-
whichever is less.
Establishment of industrial clusters and
mini tool rooms under the Public Private

25

Partnership mode by providing 25% of
the total project cost subject to a
maximum of Rs.1 Crore as assistance.
Creation of a Technology Development
Fund for evolving cleaner / energy
efficient / IT enabled technologies.
Assistance for creation of Centres of
Excellence and Technology Business
Incubators for introduction of new
production techniques and design
development to the tune of Rs.50 Lakhs
per incubator / centre of excellence.
2.4 Marketing support
The marketing support is extended by
Government to Micro and Small manufacturing
enterprises by allowing waiver of Earnest Money
Deposit for participation in tenders, granting 50% of
hall rent for participation in exhibitions within the
State and also in other States by MSME
Associations and also by extending support for
marketing under a common banner or brand name.


26

2.5 Prime Ministers' EmpIoyment Generation
Programme (PMEGP)
The Prime Ministers' Employment
Generation Programme (PMEGP) is a credit linked
subsidy Programme of the Government of India
launched on 15.08.2008 for generation of
employment opportunities through establishment of
micro enterprises in rural as well as urban areas.
The scheme was formulated by merging the two
schemes, namely the Prime Minister's Rojgar
Yojana (PMRY) and Rural Employment Generation
Programme (REGP). PMEGP scheme is
implemented by the Khadi and Village Industries
Commission (KVIC), Tamil Nadu Khadi and Village
Industries Board (KVIB) and the Directorate of
Industries and Commerce through District Industries
Centres. The maximum cost of the project
admissible under manufacturing sector is
Rs.25 Lakhs and that of service sector is
Rs.10 Lakhs. The beneficiary has to contribute
10% of the project cost under General Category
and 5% of the project cost under Special Category

27

(SC / ST / OBC / Minorities / Women, Ex-
servicemen, Differently abled persons, North-
Eastern Regions, Hill and Border areas). The
balance amount of total project cost will be provided
by Banks as term loan. Government of India
provide subsidy to the beneficiaries as shown
below:
Category Urban area Rural area
General 15% of the project
cost
25% of the project
cost
Special 25% of the project
cost
30% of the project
cost

During 2012-13, Government of India has
released Rs. 22.07 Crores to District Industries
Centres in this state. Entire funds have been utilised
for clearing the pending claims of the previous
years.

2.6 Unemployed Youth Employment
Generation Programme (UYEGP)

The Unemployed Youth Employment
Generation Programme (UYEGP) has been
formulated by the Government of Tamil Nadu

28

during the year 2010-11 vide G.O.(Ms) No. 80,
Micro, Small and Medium Enterprises (D2)
Department, dated 30.7.2010, to create
employment opportunities among socially and
economically weaker sections of the society, by
setting up Manufacturing / Service / Business
enterprises by availing loan upto maximum of Rs.5
Lakhs, Rs. 3 Lakhs and Rs. 1 lakh respectively,
with subsidy assistance from the State
Government upto 15 % of the project cost. The
beneficiaries under General category have to
contribute 10% of the project cost and those under
Special categories (SC / ST / BC / MBC, Minorities
/ Women, Ex-servicemen, Differently abled
persons and Transgender) have to contribute 5%
of the project cost. The balance amount of the total
project cost will be provided by Banks as term
loan. The Government have sanctioned
Rs.16.36 Crores during the year 2012-13, towards
the implementation of the scheme.


29

2.7 New Entrepreneur-Cum- Enterprise
Development Scheme (NEEDS)

A new scheme New Entrepreneur-cum-
Enterprise Development Scheme
(NEEDS) has been formulated to assist
educated youth to become first generation
entrepreneurs from 2012-13 onwards by
giving entrepreneurship training, to
prepare their business plans and helping
to tie up with financial institutions to set up
new business ventures, besides linking
them with major industrial clients.
Orders have been issued in
G.O.(Ms).No.49, Micro, Small & Medium
Enterprises (D2) Department, dated
29.10.2012. A sum of Rs.100 Crores was
sanctioned during the year 2012-13, out of
which a sum of Rs.51.80 Crores was
released for the implementation of the
scheme.

30

The selected beneficiaries will be assisted
to avail term loans from Banks / Tamil
Nadu Industrial Investment Corporation
Limited (TIIC) with a capital subsidy at the
rate of 25% of the project cost ( not
exceeding Rs.25 Lakhs), with 3% interest
subvention on Bank loan by the
Government. The minimum project cost
will be above Rs.5.00 Lakhs and the
maximum project cost will be Rs.1.00
crore. For projects costing more than
Rs.1.00 crore subsidy component will be
restricted to Rs.25 Lakhs.
The promoter's contribution under this
scheme will be 10% of the project cost for
general category and 5% for special
category (BC / MBC / DNC / SC / ST /
Women / Minorities / Ex-Servicemen /
Transgenders / Differently abled). Further,
priority will be given by reserving 18% for
Scheduled Caste (SC), 1% for Scheduled
Tribe (ST), 3% for Differently abled

31

beneficiaries. 50% would be earmarked
for women beneficiaries in this scheme.
Entrepreneurship Development training
will be imparted to the selected
beneficiaries for one month by the
Entrepreneurship Development Institute.
A total of 1000 entrepreneurs will be
trained every year from the year 2012-13,
onwards. Subject to availability, they will
also be provided with reservation upto
25% for allotment of plots / sheds in the
Industrial estates of Tamil Nadu Small
Industries Development Corporation
Limited.
Selection of beneficiaries for training will
be done at the District level by a Task
Force Committee consisting of the District
Collector as its Chairman, General
Managers, District Industries Centres /
Regional Joint Director of Industries and
Commerce, Chennai as Member
Convenor, Lead Bank Manager, Branch

32

Manager of Banks / Tamil Nadu Industrial
Investment Corporation Limited (TIIC),
Branch Manager, Tamil Nadu Small
Industries Development Corporation
Limited (SIDCO), District Manager, Tamil
Nadu Adi Dravidar Housing and
Development Corporation Limited
(TAHDCO), District Employment Officer,
Representatives of Entrepreneurship
Development Institute (EDI), Micro, Small
and Medium EnterprisesDevelopment
Institute (MSME-DI) and local Micro, Small
and Medium Enterprises (MSME)
Association as its members.
The Industries Commissioner and Director
of Industries and Commerce will
periodically review and monitor the
progress of this scheme at the State level.
The Hon'ble Chief Minister has launched
the scheme through video conferencing on
20.02.2013. A sum of Rs.100 Crores has

33

been allocated for this scheme in the
Budget Announcement 2013-14.

2.8 District Enterprises Development
Consultative Committee

Earlier Government have approved
constitution of District Level Single Window
Clearance Committee to expedite the process of
issue of licenses / clearances for setting up of new
industrial units. Government has also approved a
common application form to enable Small Scale
Industries to uniformly file applications for various
licences / clearances in all the districts with the
General Managers, District Industries Centres. The
General Managers, District Industries Centres, in
turn forward the applications to the connected
licence issuing Government Departments for issue
of licence / clearance. The delay in issue of licences
beyond the time limit by the concerned
Departments is taken up for discussion in the Single
Window Clearance Committee to expedite the
process of issue of licences / clearances. However,

34

a need was felt to empower the Committee in order
to strengthen its functions.
In order to further streamline the process and
to strengthen the existing Single Window Clearance
Committee, Government has recently constituted
District Enterprises Development Consultative
Committee vide G.O.(Ms) No.53, Micro, Small and
Medium Enterprises (D2) Department, dated
27.12.2012.
Under this provision, all the applications from
micro, small and medium enterprises for issue of
various clearances / licences for proposed industrial
units should be submitted to the General Manager,
District Industries Centre in the prescribed common
application form. For cases received directly by the
concerned Departments, the Committee should be
informed on a monthly basis about the orders
passed on such cases.
Under the new system, the General
Manager, District Industries Centre will forward the
applications to the concerned departments for issue
of various licences / clearance within the prescribed

35

time limit of 30 days but not exceeding 60 days. The
activities of Tamil Nadu Pollution Control Board has
also been brought under the purview of the District
Enterprises Development Consultative Committee.
If the licences / clearances are not issued to
the industrial units within the prescribed time limit by
the concerned departments, such cases will be
placed before the ensuing meeting of the District
Enterprises Development Consultative Committee.
During 2012-13, out of 359 applications received till
28.2.2013, 324 applications have been disposed.

2.9 Rehabilitation of Sick Micro, Small and
Medium Enterprises

The Rehabilitation of Sick Micro, Small and
Medium Enterprises envisages assistance for
conducting a diagnostic study of sick enterprises,
scrutiny of the above study report by a sub-
committee of the State Level Inter-Institutional
Committee (SLIIC) constituted by the Reserve Bank
of India and chaired by the Secretary, Micro, Small
and Medium Enterprises Department for rendering

36

rehabilitation assistance to sick micro, small and
medium enterprises, which meets on every quarter.
The Reserve Bank of India conducts the study on
viability of sick units and the Banks provide financial
assistance wherever feasible along with other hand-
holding steps like counselling the borrowers,
analyzing the problems faced by the units etc.

2.10 Credit Flow to Micro and Small
Enterprises Sector

The Commercial Banks provide credit to the
entrepreneurs establishing Micro and Small
Enterprises. For the period April 2012 to December
2012, an amount of Rs.9409.44 Crores and
Rs.8483.02 Crores have been sanctioned as credit
to micro and small enterprises respectively, in the
state. The share of advance to micro enterprises to
total micro and small enterprises upto the quarter
ended December 2012 ( April 2012 to December
2012 ) is 52.59% as against 39.56% during the
corresponding period of the previous year. This
shows the significant improvement in the credit flow

37

for the development of micro and small enterprises
sector.
The total outstanding advances given by the
Commercial Banks to Micro and Small Enterprises
(MSE) in the state during the year 2012 has
increased to Rs.62682.65 Crores (31.12.2012) from
Rs.55740.64 Crores (31.12.2011). This shows an
increase of Rs. 6942.02 Crores (12.45%) over the
previous year.
The total outstanding advances given by the
Cooperative Banks to Micro and Small Enterprises
(MSE) in the state during the year 2012 has
increased to Rs.2504.09 Crores (31.12.2012) from
Rs.1825.89 Crores (31.12.2011). This shows an
increase of Rs. 678.20 Crores (37.14%) over the
previous year.

2.11 Micro and Small Enterprises Facilitation
Councils

Government have constituted four Regional
Micro and Small Enterprises Facilitation Councils at
Chennai, Tiruchirappalli, Madurai and Coimbatore

38

to facilitate speedy settlement of the payments of
dues with respect to the goods supplied to major
industrial undertakings by the micro and small
enterprises in accordance with the Micro, Small and
Medium Enterprises Development Act 2006. In the
financial year 2012-13, 35 MSEFC sittings were
conducted in which 115 cases were disposed and
Rs.396.65 Lakhs were realised by Micro and Small
Enterprises.

2.12 Testing Services, Technical Training
Institutes

2.12.1 Electrical Testing Centre, Kakkalur,
Thiruvallur District

Central Electrical Testing Laboratory,
Kakkalur was established in the year 1973 to cater
to the needs of Micro, Small and Medium Electrical
and Electronics Enterprises and Quality
Organizations. This modern laboratory is
accredited to the NABL (National Accreditation
Board for Testing and Calibration Laboratories) and
is recognized by the BIS (Bureau of Indian

39

Standards). It offers testing facilities for more than
160 Electrical Products / Equipments including
Electrical Appliances, Cables, Lamps, Energy
Meters etc., in accordance with the relevant Indian
Standard Specifications besides calibration
facilities. Bureau of Indian Standard (BIS),
Directorate General Supply and Disposal (DGS&D),
Quality Control / Marking Organisations, Private
Manufacturers and various State and Central
Government Departments/ Undertakings are major
beneficiaries. During 2012-13 (upto February-2013)
5383 samples have been tested, yielding a revenue
of Rs.192.32 Lakhs to Government.
The Government have sanctioned Rs.32.37 Lakhs
during 2012-13 for the purchase of additional
Machinery and equipment, to strengthen the
infrastructure of this testing centre.

2.12.2 Data Bank and Information Centre for
Electrical and Electronics Industries,
Chennai.

Information Centre provides information on
relevant enterprises, offers project profiles on select

40

projects and maintains a State wide directory for the
use of entrepreneurs to identify buyers and sellers
in electrical and electronic field . A technical library
with 1400 books and 100 journals are also available
in this centre.

2.12.3 Enforcement of Quality Control Orders
The electrical and electronic wing of the
Department is engaged in creating awareness
among consumers in Tamil Nadu to use quality
electrical products. The electrical and electronic
wing implements the Household Electrical
Appliances (Quality Control) Order, 1981 and the
Electrical Wires, Cable, Appliances, and Protection
Devices and Accessories (Quality Control) Order,
2003. Contravention of the first order is punishable
under the Essential Commodities Act.1955. The
second order prohibits manufacture or storage for
sale or distribution of specified items without the
Bureau of Indian Standard marking. Contravention
of this order attracts penal action under Bureau of
Indian Standards Act. The General Manager,
District Industries Centre, of the concerned District

41

and the Deputy Director (E&E), Quality Control
Order Enforcement Centre, Chennai have been
designated as the Appropriate Authority for the
implementation of the provisions of these Orders.
During 2012-13, 1862 inspections have been
conducted and 52 seizures have been effected upto
February 2013.
To create better awareness among the
general public advertisement and press releases
are issued from the offices of Deputy Director
(Electrical & Electronic), Chennai and various other
regional offices.

2.12.4 Chemical Testing Laboratories

Five Chemical Testing Laboratories are
located at Chennai, Madurai, Salem, Coimbatore
and Thoothukudi. These are equipped with modern
and sophisticated instruments required for
conducting testing of raw material and finished
goods to meet the needs of chemical, metallurgical
and other industries. These facilities are provided
at concessional rates. A technical library with

42

20,000 I.S. Specifications, 6,100 Books and 20
Journals are available at the Chennai Laboratory,
for the use by the entrepreneurs. During 2012-13,
66,834 samples have been tested, yielding a
revenue of Rs.194.58 Lakhs to Government upto
February 2013. The following funds have been
provided to strengthen the infrastructure as
indicated below for the year 2012-2013.

Chemical Testing and Analytical
Laboratory, Chennai
Rs. 18 Lakhs
Regional Testing Laboratory,
Madurai
Rs. 5 Lakhs

Regional Testing Laboratory,
Coimbatore
Rs. 8 Lakhs



2.12.5 Steel and Steel Products (Quality
Control) Order, 2012

Ministry of Steel, Government of India have
notified Steel and Steel Products (Quality Control)
Order, 2012 and Steel and Steel Products (Quality
Control) second order, 2012 towards ensuring the
quality steel products reaches to the consumer.

43

These orders cover 16 Steel products which are
brought under mandatory Bureau of Indian
Standards Certification.
As per this order No person shall by himself
or through any person on his behalf manufacture or
store for sale, sell or distribute any steel and steel
Products specified in the schedule which do not
conform to the specified standards and do not bear
standard mark of the Bureau of Indian Standards on
obtaining Certification Marks Licence. In the said
order, the General Managers of District Industries
Centres have been designated as the 'Appropriate
Authority' for implementation of the provisions of
these orders.
In order to create awareness among the
manufacturers and consumers about the notification
issued by the Government of India for
implementation of Steel and Steel Products Quality
Control Order, the General Managers of District
Industries Centres have taken action by giving wide
publicity through Newspapers and also through
District Industries Associations.

44

2.12.6 Training Institutes

(1) Government Technical Training Centre,
Guindy

The Government Technical Training Centre,
Guindy offers three year Diploma course in Tool
and Die Applications, a three year Diploma course
in "Refrigeration and Air-conditioning" and a one
year Post-Diploma (Advanced) course in "Die and
Tool Designs" with an annual intake of 30, 40 and
10 students respectively.

(2) Institute of Tool Engineering, Dindigul
The Institute of Tool Engineering, Dindigul
offers a three year Diploma course on Tool and
Die Applications with an intake of 30 students
annually.
(3) Institute of Ceramic Technology,
Vridhachalam

The Institute of Ceramic Technology,
Vridhachalam affiliated to the Department of
Technical Education. It offers 3 year specialized
course in Diploma in Ceramic Technology with an

45

annual intake of 50 students and 10 students
admitted in the second year as lateral entry.

(4) Government Scientific Glass Training
Centre, Guindy

The Government Scientific Glass Training
Centre, Guindy offers 2 year specialized
Certificate course on the Manufacture of Scientific
Glass Apparatus.

In the G.O.(Ms) No.41, Micro, Small and
Medium Enterprises (E) Department, dated
23.7.2012, the Government have sanctioned
Rs.3 Crores to Government Technical Training
Centre, Guindy, Institute of Tool Engineering,
Dindigul and Institute of Ceramic Technology,
Vridhachalam, to strengthen and upgrade the
existing infrastructure in each of these technical
institutions as per All India Council of Technical
Education (AICTE) norms. Civil works such as
construction of new buildings, laboratories, seminar
hall, internal roads, pavements, strong water drains,
repairs to existing buildings are taken up in the

46

three technical institutions. Further, purchase of
machines, equipments, library books and expansion
of computer centres are also taken up for the
benefit of the students.
2.13 Government Industrial Estates
2.13.1 Ceramic Industrial Estate, Vridhachalam
An industrial estate exclusively for ceramic
products is located at Vridhachalam. It was
established in 1964. In order to encourage Ceramic
Industries in the State, the industrial sheds in this
estate are rented to the entrepreneurs at a nominal
rent of Rs. 1.75 per sq.ft. per month vide G.O.(2D)
No.7, Small Industries (SIE) Department, dated
20.2.2008. The units in this estate manufacture low
tension insulators, sanitary ware, art ware,
refractory bricks and other refractory material.

2.13.2 Electrical and Electronics Industrial
Estates
The Government have established eight
exclusive industrial estates for Electrical and
Electronic industries consisting of 517 Developed

47

Plots and 140 Sheds. These industrial estates are
located at Thiruvanmiyur (Chennai District),
Perungudi (Kancheepuram District), Kakkalur
(Tiruvallur District), Kappalur ( Madurai District),
Suramangalam (Salem District), Coimbatore City
(Coimbatore District), Hosur (Krishnagiri District)
and at Thuvakudi (Tiruchirappalli District).
In G.O. (Ms.) No.50 MSME (G) Department
dt.29.10.2012, the Government have sanctioned
Rs.1.00 crore to upgrade the infrastructure facilities
of Perungudi Industrial Estate in Kancheepuram
District and Kakkalur Industrial Estate in Thiruvallur
District. Works have been entrusted to SIDCO for
execution.

2.14 Revamping of District Industries Centres
As per the directions of the Hon'ble Chief
Minister, in G.O. (D) No.7, MSME (F) Department,
dated 17.1.2013, the Government have issued
orders for the revamping of District Industries
Centres in all 32 districts of the State at a cost of
Rs.50 Crores for the following activities:

48

2.14.1 Upgradation of Infrastructure Facilities
The Government have sanctioned funds to
construct the office buildings for the 11 District
Industries Centres i.e. Perambalur, Ariyalur,
Villupuram, Nagapattinam, Tiruvannamalai,
Namakkal, Karur, Theni, Thiruvarur, Tiruppur and
Chennai which are at present functioning in rented
buildings. The Government have also sanctioned
funds for construction of additional buildings in the
existing District Industries Centre Offices in 18
districts i.e. Krishnagiri, Tiruchirappalli, Salem,
Madurai, Virudhunagar, The Nilgiris,
Kancheepuram, Thoothukudi, Tirunelveli,
Kanyakumari, Sivaganga, Erode, Dindigul,
Cuddalore, Thiruvallur, Dharmapuri, Vellore and
Thanjavur.
The Government have also sanctioned funds
for renovation of existing buildings at Coimbatore,
Ramanathapuram and Pudukkottai.
The proposed new buildings will have all the
required facilities such as conference hall, video
conferencing, product display centre and computer

49

centre so as to meet the requirements of the office
staff and entrepreneurs visiting the District
Industries Centres.
The Hon'ble Chief Minister has laid
foundation stones for the new and additional
buildings for the District Industries Centres in
various Districts through video conference on
20.02.2013.

2.14.2 Capacity Building

The Government have sanctioned funds for
capacity building of the staff and officials of the
department, by taking up technical / managerial
training for the office staff of all 32 District Industries
Centres. It has also been proposed to take up
exposure visits to the other States and Countries to
learn about their innovative projects and success
stories. Similarly, seminars / training programmes
are also proposed for Micro, Small and Medium
Enterprises and individual entrepreneurs on the
latest developments and trends in Indian and Global

50

arena with regard to district specific activities /
trades.
As a first step in this direction, a team of
officials under the leadership of the Hon'ble
Minister for Rural Industries visited the State of
Gujarat from 4.3.2013 to 6.3.2013 for studying their
innovative projects and schemes.

2.14.3 Upgradation and strengthening
Information and Communication
Technology, (ICT) facilities at District
Industries Centres

The Government have sanctioned a sum of
Rs.4.80 Crores for upgrading the existing
Information and Communication Technology (ICT)
infrastructure facilities in District Industries Centres.
It is proposed to provide additional computer
facilities, networking, software development
enabling the District Industries Centres to provide
required facility to office staff as well as
entrepreneurs. It is further proposed to update and
renew data base of all Micro, Small and Medium
Enterprises in each District to integrate

51

Commissionerate of Industries and Commerce with
District Industries Centres and introduce many more
services on-line for the benefit of stake holders.

2.15 Industrial Cooperative Societies
Industrial Cooperative Societies occupy a
key position in developing small and cottage
industries in the State. These societies play an
important role in generating employment to the rural
people. They have been organised with social and
economic objectives. The social objective is to
safeguard the interest of poorer sections against
exploitative trends and concentration of wealth,
whereas, the economic objective aims at creation of
employment opportunities thereby to improve the
economic conditions of poorer sections. These
societies now mainly provide gainful employment to
rural artisans, skilled and un-skilled workers, and
labourers. They also ensure to provide
remunerative prices to the growers like small tea
growers and tapioca cultivators. These societies
not only ensure getting orders to micro and small

52

units but also provide developed plots and
constructed sheds along with infrastructural facilities
to the entrepreneurs by way of organising
Cooperative Industrial Estates. The Industries
Commissioner and Director of Industries and
Commerce is the Functional Registrar for the
Industrial Cooperative Societies in the State. At
present, there are 351 Industrial Cooperative
Societies functioning under the control of this
Department.

2.15.1 Tea Sector
Tea is the mainstay of the Nilgiris District.
The livelihood of small tea growers mainly depends
on Tea Industry. Before the establishment of Tea
Factories under Cooperative Sector in the Nilgiris
district, the small tea growers faced numerous
problems in supplying their green tea leaves to the
private bought leaf factories. With a view to
safeguard them from exploitation and to ensure
remunerative prices for their produce, Industrial
Cooperative Tea Factories have been established.

53

The first of such factory was established during
1961 at Kundah and on its successful functioning,
many more factories were organised on similar
lines. The Golden Jubilee celebrations of the
Kundah Industrial Cooperative Tea Factory was
presided over by the Hon'ble Chief Minister on
04.01.2013.

2.15.2 Industrial Cooperative Tea Factories
At present, there are 15 Industrial
Cooperative Tea Factories in Nilgiris district, with an
annual installed capacity of 181.00 lakh kgs of
Made Tea. More than 21000 small tea growers with
a cumulative area of 32,407 acres have been
enrolled as members in these 15 tea factories. The
share of these units to the total production of tea in
the state stands at 17%. Besides providing
remunerative price to their member growers, they
also extend input services like supplying fertilizers,
seedlings, manure and tea leaf bags to them.



54


2.15.3 Provision of Support Price for Small tea
growers

The Government have initiated many
schemes to alleviate the sufferings of small tea
growers. The grower members of Industrial
Cooperative Tea Factories were not able to obtain
reasonable price for their green leaves on par with
market price. In order to protect their welfare, the
Government have introduced a scheme for
providing support price of green leaves to them. In
G.O. (D) No.110, MS&ME (A) Department, dated
27.07.2012, the Government have sanctioned a
sum of Rs.6.00 Crores as grant towards support
price for the green leaves procured from the small
tea grower members of the Indco Tea factories from
July 2012 to December 2012. The amount was
disbursed to 21,153 small tea grower members. In
view of this support, the member growers have got
average green leaf rate of Rs.14.78 per kg during
the current year (upto February 2013) which is

55

much higher than the Rs.8.74 per kg paid during the
corresponding period of last year.

2.15.4 Modernisation and Upgradation of
Industrial Cooperative Tea Factories

In order to improve their operational
efficiency of Industrial Cooperative Tea Factories by
way of increasing their productivity as well as
improving the quality of made tea, in G.O.(D)
No.109, MS&ME (A) Department, dated
27.07.2012, the Government have sanctioned a
sum of Rs.5.46 crore as grant for purchase of
machineries and equipments for the benefit of 12
factories. The civil works will be carried out with the
own funds of Indcoserve at a cost of Rs.54 Lakhs.

2.15.5 Setting up of a New Factory
With a view to fulfil the demand of the small
tea growers of Nanjanad area, the Hon'ble Chief
Minister has announced the formation of a new
Industrial Cooperative Tea Factory at Nanjanad,
Nilgiris District at a total project cost of

56

Rs.5.00 Crores during the Golden Jubilee
Celebrations of Kundah Industrial Cooperative Tea
Factory on 4.1.2013. This scheme will be
implemented by availing financial assistance from
the National Cooperative Development Corporation,
New Delhi. 3 acres of land has already been
identified in Nanjanad village.

2.15.6 Indcoserve
In order to co-ordinate the activities of
Industrial Cooperative Tea Factories, an apex
organisation called The Tamil Nadu Small Tea
Growers Industrial Cooperative Tea Factories
Federation popularly known as ndcoserve was
established in 1965. The main object of this
organisation is to market the products of its member
tea factories so as to enable them to get
competitive rate for their products. It also facilitates
the purchase of various items required by its
constituent members and provides warehousing
facilities at Coonoor, Coimbatore and Kochi.
Besides, the Indcoserve also markets its own

57

branded tea in the market. The Indcoserve is also
supplying Ooty Tea to the fair price shops in the
State under the Public Distribution System.
Towards expanding its market, the Hon'ble Chief
Minister has launched the sale of Ooty tea in new
250 gms pouch on 4.1.2013 during Golden Jubilee
Celebrations of Kundah Indco Tea Factory. To
create additional avenues, the sale of Ooty tea
through Aavin outlets was also launched by the
Hon'ble Chief Minister. The sale is being
monitored by a joint Committee with higher officials
from the Offices of the Registrar of Cooperatives,
Tamil Nadu Civil Supplies Corporation Industries
Commissioner & Director of Industries and
Commerce and Indcoserve.
2.15.7 Teaserve
Before establishment of e-auction centre,
the tea auction was conducted manually under
traditional method. As this system was found
disadvantageous to the producers on various
aspects, the small tea growers represented to the
Government to set up an auction centre in a more

58

transparent manner. Accordingly, the Government
launched the e-auction centre at Coonoor on
1.10.2003 in the name of Tamil Nadu Small Tea
Manufacturers Service Industrial Cooperative
Society called "Teaserve". The basic objective of
this e-auction centre is to provide fair, transparent
and better price discovery mechanism for the sale
of Tea at a reduced transaction time and cost. The
Industrial Cooperative Tea Factories, private bought
leaf factories, Private Estate Factories and the
factories of TANTEA are members of this
organisation. During 2012-13, 156.54 lakh kgs. of
made tea have been auctioned with a total sales
turnover of Rs.132.24 Crores upto February 2013

2.15.8 Sagoserve
The Salem Starch & Sago Manufacturers
Industrial Cooperative Society commonly known as
"Sagoserve was registered on 21.7.1981 with the
objective of facilitating the marketability of the Sago
and Starch products of its member units to ensure
remunerative prices for their products. Besides

59

marketing, it provides warehousing facilities and
financial assistance to its member units. At present,
there are 360 members on its roll with a share
capital of Rs.714.82 Lakhs including the
Government share of Rs.99.83 Lakhs.

With a view to improve its testing facility, the
Sagoserve has set up a testing laboratory as a
Common Facility Centre in the name of Sago and
Starch Industry Cluster under Micro and Small
Enterprises-Cluster Development Programme
(MSE-CDP) of Government of India. The testing
laboratory has commenced its operation on
01.02.2010. However, the Sagoserve has
proposed to implement another Common Facility
Centre under Phase II at a total project cost of
Rs.255.53 Lakhs, the proposal of which is under the
consideration of Government of India. During
2012-13, sago and starch bags worth of
Rs.310.97 Crores have been sold through
Sagoserve.



60

2.15.9 Tamil Nadu Industrial Cooperative Bank
(TAICO Bank)

The Tamil Nadu Industrial Cooperative Bank,
commonly known as the TAICO Bank was
established in 1961 with the Industrial Cooperative
Societies as its members. At present, it has 400
members on its roll with a paid up share capital of
Rs.5.53 Crores including Government share of
Rs.2.68 Crores. Having its head quarters at
Chennai, there are 44 branches functioning all over
the State. The object of the bank is to meet out the
financial requirements of Industrial Cooperative
Societies in the State. However, now the bank is
extending all types of loans to the individuals,
entrepreneurs under MSME Sector, Government
Employees and to the public thereby expanding
its banking operations. In addition to this, it also
accepts deposits from the public, operates current
accounts and savings accounts. The Bank is
implementing various State schemes like TAMCO,
THADCO and TABCEDCO by acting as one of the
Implementing Agencies of such schemes. Besides

61

extending financial assistance under UYEGP it also
acts as one of the financing banks for the Coir
Board scheme of Rejuvenation, Modernisation and
Technology Upgradation of the Coir Industry
(REMOT).

2.15.10 Coir Industrial Cooperative Societies
The Coir Industry is a traditional, labour
intensive, export oriented and agro based cottage
industry. Though the Coir industry originated in the
State of Kerala it has spread over to other Coconut
growing States over the years. Tamil Nadu ranks
next to Kerala in the Coir Industry but stands first in
the production of brown fibre in the country. The
percentage of husk utilisation by the coir industry in
Tamil Nadu is estimated at 48% as against the
National average of 40%. The Coir Industry in
Tamil Nadu provides gainful employment to the
people in rural areas and majority of them are
women. At present, there are 71 Coir Industrial
Cooperative societies functioning in the State
providing employment to more than 10000

62

members/workers. The paid up share capital of
these societies is Rs.264.85 Lakhs of which
Government's share is Rs.220.22 Lakhs. The Coir
Societies are mainly engaged in activities like fibre
extraction, spinning of coir, mat and matting and
production of rubberised coir mattresses. Tamil
Nadu State Coir Cooperative Marketing Federation
Limited (TANCOFED) is the apex body for all Coir
Industrial Cooperative Societies in the State. It is
functioning with its Head Quarters at Chennai. It
helps to market the products of its member
societies besides assisting in supplying required
raw materials to them.

2.15.11 Market Development Assistance (MDA)
for Coir Cooperative Societies

The Government of India through Coir
Board have introduced the scheme of Market
Development Assistance to the Coir Societies to the
value of 10% on their average sales turnover of the
preceding 3 years. The main object of the scheme
is to dispose of the coir products through discounts

63

in order to enable the Coir Cooperatives to provide
continuous employment to their workers. This MDA
assistance is equally shared between Government
of India and State Government. For the year
2011-12, the State Government have sanctioned
and released a sum of Rs.58.88 lakh as State's
share to the 64 coir societies vide G.O.(D) No.169,
MS&ME(A) Department, dated 3.12.2012. The
Government of ndia's share is awaited.

2.15.12 Scheme of Fund for Regeneration of
Traditional Industries (SFURTI)

The Government of India have approved
the Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) with a view to make traditional
industries including coir, more competitive. During
XI Plan period, 6 common facility centres for Coir
clusters in Cuddalore, Salem, Singampuneri,
Periyakulam, Pattukottai and Gudiyatham have
been established at a total project cost of Rs.528.65
lakh. The above Coir Clusters are engaged in

64

Automatic Yarn Spinning, production of Coir pith
blocks and manufacturing of garden articles.
During the XII Plan Period, the Coir Board
has allotted common facility centres for 9 coir
clusters under SFURTI Scheme to the State.
Accordingly, proposals for setting up of Common
Facility Centres under SFURTI in 9 districts namely
Coimbatore(Pollachi), Dindigul, Kanyakumari,
Dharmapuri, Krishnagiri, Tirupur(Kangeyam),
Pudukottai (Aranthangi), Madurai and Tirunelveli at
a total project cost of Rs.881.00 Lakhs have already
been forwarded to the Coir Board for approval. The
activities for facilitating manufacture of coir pith
block, needle felt mattresses, geo-textiles,
automatic yarn spinning will be taken up in these
centres.

2.15.13 Other Cooperative Societies
Besides the above Industrial Cooperative
Societies, the department has also established
societies in other important trades like polythene
bag making, brick manufacturing, auto services,

65

printing services, labour contract, handicrafts,
tailoring, engineering, etc. The Labour Contract
Societies have been organised both in organised
and unorganised sector, so as to provide
employment to the contract labourers and skilled
and semi-skilled workers. Similarly, the polythene
bag making societies were organised to provide
continuous employment to unemployed women of
the Adi Dravida Community in rural areas. Further,
with a view to providing employment to women
members of Police families, tailoring societies were
organised in the State. The Handicrafts societies
facilitate to market the products of artisans thereby
help to improve their economic conditions. Above
all, Industrial Estates under Cooperative sector
have been established to provide work
sheds/developed plots with infrastructure facilities.






66

3. The Tamil Nadu Small Industries
Development Corporation Limited (SIDCO)

The Tamil Nadu Small Industries
Development Corporation Limited (SIDCO) was
established on 16.3.1970 by the Government of
Tamil Nadu with the main objective of assisting and
promoting the interests of Micro, Small and Medium
Enterprises in the State.
Since its inception, SIDCO is actively striving
to achieve its goal and commitment towards its
vision:
"To forge sustainable partnerships with the
MSMEs for enhancing their
competitiveness".

SIDCO strives towards the development of
Industrial Estates and associated social
infrastructure, promotion of Clusters and Common
Facility Centres, enabling the access of MSMEs
towards Technology, Inputs, Best Management and
Manufacturing Practices, Capital and Markets.


67

Currently, SIDCO is maintaining 35 Industrial
Estates created by Government of Tamil Nadu and
59 Industrial Estates established on its own.
(Annexure A)
3.1 Procedures involved in identification of
land for formation of new Industrial
Estates

SIDCO conducts the demand survey for the
establishment of Industrial Estate in a given District
through Branch Offices. On receipt of report from
Branch Offices, a team of senior officials will inspect
the site selected, along with the local revenue
officials to see the suitability of the land for the
formation of new Industrial Estate. On satisfaction,
the Land Plan and Schedule will be sent to the
respective District Collector for alienating / acquiring
the lands in favour of SIDCO.
The respective District Collector will send
proposals for alienating the Government poramboke
lands to the Government through the Commissioner
of Land Administration. If the land chosen is a patta
land, proposals for getting administrative sanction

68

for acquiring the land either through private
negotiation or under the provisions of Tamil Nadu
Industrial Purposes Act, 1997 proposal will be sent
to Government.
The Government will issue orders under the
provisions of RSO 24 alienating the Government
poramboke lands and SIDCO will pay land value
and take possession of the land.
In the case of patta land, as soon as the
administrative sanction is accorded by the
Government, the committee under the chairmanship
of District Collector will negotiate the cost of land to
be purchased with the landowners. If the land
owners do not accept the land value fixed by the
negotiation committee, then the District Collector
may recommend acquisition of the land under the
provisions of Tamil Nadu Industrial Purposes Act,
1997. As soon as the acquisition process is over
and the payment of land cost is made, possession
will be taken by SIDCO.


69

3.2 Procedures involved in development of
land taken possession for formation of
New Industrial Estates

New Industrial Estates are being formed in
various locations after the lands have been taken
possession by SIDCO. The development works
will be carried out by utilizing SDCO's own fund or
with the funds received from Government of India
under MSE-CDP scheme.
The development works include providing
infrastructural facilities like formation of new roads,
construction of storm water drains, culverts,
providing water supply, sewage system, street
lighting, tree planting, other amenities etc. In
addition to that, the construction wing of SIDCO will
prepare the Layout plan as per DTCP/CMDA norms
and send to DTCP/CMDA for approval. SIDCO will
also take up the up gradation, renovation,
strengthening of infrastructure facilities in existing
Industrial Estates.


70


3.3 Procedures involved in allotment of
Plots/Sheds
A transparent procedure is followed in
allotting the sheds / plots by advertising the
availability of shed/ plots in newspapers. A
Screening Committee constituted with the officials
of SIDCO, Directorate of Industries & Commerce,
TIIC and representatives of TANSTIA as members,
interview the applicants and the eligible applicants
are selected on merit. Plots are allotted by way of
lot system.
SIDCO develops industrial plots of various
sizes ranging from 5 cents to 100 cents (1 acre) and
above as per the requirements of the
manufacturing units in the Industrial Estates and
the industrial plots are allotted to them either on
Outright sale or Hire Purchase basis depending
upon the demand existing in the area.
As per G.O.(Ms) No.7, Micro, Small and
Medium Enterprises Department , dated
31.01.2009, 30% of the saleable area of the

71

Industrial Estates are earmarked for Micro
Enterprises.
Priority is given in allotment of developed plots /
sheds to the following categories:
1) 30% for Women Entrepreneurs.
2) 10% for Ex-servicemen
3) 10% for SC/ST and Transgenders.
If sufficient numbers of the applicants are not
available in these categories, these reserved
plots/sheds will be taken up for allotment to other
categories.
As per G.O. (Ms.) No.49 Micro, Small and
Medium Enterprises Department dated 29.10.2012,
priority in allotment will be given to the first
generation entrepreneurs who have successfully
completed Entrepreneurship Development
Programme (EDP) training under NEEDS Scheme,
on application, subject to availability.



72

3.4 Formation of Industrial Estates
Among the 15 new Industrial Estates
announced to be established during 2011-12 and
2012-13, two Industrial Estates have been
established in Rasathavalasu (Tiruppur District) and
Venmaniathur (Villupuram District). For the
remaining 13 Industrial Estates action has been
taken and are in various stages as detailed below.
Sl.
No.
Name of
location
District
Area
(acres)
Stage
1 Kurukkalpatti Tirunelveli 68.77
Land taken
possession and
preliminary works
are in progress
2 Vaniyambadi Vellore 7.08
Land taken
possession and
preliminary works
are in progress
3 Pidaneri Thoothukudi 108.23
Land taken
possession and
preliminary works
are in progress
4 Mathur Pudukottai 19.92
Land taken
possession and
preliminary works
are in progress
5 Palayapatti Thanjavur 103.03
Land taken
possession and
preliminary works
are in progress
6
Virudhunagar
(Urban)
Virudhunagar 37.54
Land taken
possession and
preliminary works
are in progress
7 Marikundu Theni 79.43
Land taken
possession and
preliminary works
are in progress

73

8 Minnur Vellore 10.00
Land taken
possession and
preliminary works
are in progress
9
Pattanam and
Venmaniathur
Villupuram 60.55
Land taken
possession and
preliminary works
are in progress
10 A.Sathanur Villupuram 219.52
Land Alienation in
progress

11

Ponnakudi Tirunelveli 82.18
Land Alienation in
progress
12 Sengarai Thiruvallur 36.53
Land Alienation in
progress
13 Asanur
(Phase-II)
Villupuram 105.50 Land Alienation in
progress
Total 938.28
Apart from the above, lands have been
identified in 22 locations for the formation of new
Industrial Estates in a total extent of 1611 acres in
future .
3.5 Women Industrial Estates
To encourage Women entrepreneurs, it was
decided to develop 5 new Industrial Estates
exclusively for women in 2001 as one of the
strategies announced by Hon'ble Chief Minister for
Women empowerment, which is the first of its kind
in the country. Accordingly, 5 new Women
Industrial Estates were developed as detailed
below:

74


S.
No
Name of the Industrial
Estate
Year of
formation
Area (in
Acres)
No. of Plots
Developed
1
Thirumullaivoyal,
(Thiruvallur District)
2001 225.80 785
2
Valavanthankottai,
(Trichy District)
2003 51.70 110
3
Karuppur,
(Salem District)
2004 51.74 154
4
Kappalur,
(Madurai District)
2008 18.45 70
5
Thirumudivakkam,
(Kancheepuram
District)
2002 10.75 76
Total 358.44 1195

3.6 Industrial sheds for Tiny Sector
In the year 1980, SIDCO through SIDCO-
TIIC consortium scheme and by its own has
constructed around 1919 tiny sheds in 105 locations
for the benefit of micro entrepreneurs. Out of the
above, 25 are located inside the regular
Government Industrial Estates and the remaining
80 are functioning in various locations outside the
industrial estates both in private and Government
lands obtained by SIDCO.

75

3.7 Creation and up-gradation of
Infrastructure facilities in New/Existing
Industrial Estates

Availability of industrial infrastructure and
utilities is a critical requirement of SMEs. SMEs
need certain common infrastructure such as
effluent/sewage treatment, testing and laboratory
facilities etc. which can be set up on a cluster basis
apart from the regular infrastructure facilities such
as water supply, street lights, roads, storm water
drains etc.
Vision Tamil Nadu 2023 envisages that
SIDCO shall ensure that the common facilities and
utilities are adequately provided in the Industrial
Estates developed for SMEs as a strategic initiative
to make SMEs more vibrant.

Government of India and Government of
Tamil Nadu are extending their support for creation
and up-gradation of infrastructure facilities in new/
existing Industrial Estates through various schemes
like Micro, Small Enterprises-Cluster Development

76

Programme (MSE-CDP) - Infrastructure
Development Scheme, Industrial Infrastructure Up-
gradation Scheme (IIUS), Assistance to States for
Infrastructure Development of Export and Allied
Activities (ASIDE) and the Part II Scheme of
Government of Tamil Nadu by sanctioning of
grants.
3.7.1 Micro and Small Enterprises - Cluster
Development programme (MSE-CDP)
Under this Scheme, the grant is availed from
the Government of India for the following:
MSE CDP (Infrastructure
Development)

MSE CDP (Common Facility Centre)

(1) Infrastructure Development under the
MSE - CDP Scheme

Under this Scheme, the Government of India
sanctions 60% of the project cost (maximum project
cost of Rs. 10 Crores) subject to a ceiling of Rs.6
Crores as grant for the creation and up-gradation of
infrastructure in new and existing Industrial Estates
respectively. The Government of India have

77

approved projects upto 2011-12 with a project cost
of Rs.4074.12 Lakhs for the creation of
infrastructure facilities in 12 new Industrial Estates.
Of the sanctioned projects, 10 projects have been
completed in the following places.
(Rupees in Lakhs)
S.
No
Name of the Industrial
Estate
Project
Cost

GOI Grant

1
Uranaganpatti,
Madurai District
444.00 151.63
2
Thirumudivakkam,
Kancheepuram District
560.00 200.00
3
Thirumullaivoyal,
Thiruvallur District
475.00 159.99
4
Vichoor,
Thiruvallur District
200.00 70.36
5
Valavanthankottai,
Tiruchirappalli District
615.00 118.70
6
Karuppur,
Salem District
213.00 63.59
7
Elambalur,
Perambalur District
146.00 87.60
8
Kadagathur,
Dharmapuri District
40.00 24.00
9
Asanur,
Villupuram District
395.00 237.00
10
Arakkonam,
Vellore District
220.00 132.00

Total 3308.00 1244.87


78

The remaining two projects are under
implementation as follows.
(Rupees in Lakhs)
S.
No
Name of the Industrial
Estate
Project
Cost
GOI
Grant
1
Pollupalli,
Krishnagiri District
411.00 246.60
2
Karaikudi,
Sivaganga District
355.12 213.00
Total 766.12 459.60

Further, Government of India have approved
projects for the up-gradation of infrastructure
facilities 12 existing Industrial Estates with a total
project cost of Rs.2389.15 Lakhs. Of these,
up-gradation works have been completed in the
following 7 industrial estate.
(Rupees in Lakhs)
S.
No
Name of the
Industrial Estate
Project
Cost
GOI
Grant
GoTN
Grant
1
Hosur,
Krishnagiri District
59.86 23.94 23.94
2 Kurichi,
Coimbatore District
152.14 34.96 60.85
3 Kappalur,
Madurai District
187.5 44.1 75.00

79

4 Virudhunagar,
Virudhunagar
District
34.95 13.52 13.98
5
Mukundarayapuram,
Vellore District
133.45 52.65 53.38
6
Ooty,
The Niligiris District
14.00 5.58 5.60
7 Ganapathipalayam,
Tiruppur District
45.82 27.49 13.75
Total 627.72 202.24 246.50

In the remaining 5 Industrial Estates, up gradation
works are in progress as follows:
(Rupees in Lakhs)
S.
No
Name of the
Industrial Estate
Project
Cost
GOI
Grant
GoTN
Grant
1 Alathur,
Kancheepuram
District
444.96 266.98 133.49
2 Kakkalur,
Tiruvallur District
423.33 254.00 127.00
3 Kovilpatti
Thoothukudi
District
202.00 121.20 60.60
4 Athur,
Karur District
397.38 238.43 119.21
5 Mettur,
Salem District
293.76 176.25 88.13
Total 1761.43 1056.86 528.43

80


In 2012-13, SIDCO has taken up creation of
infrastructure facilities in four new Industrial Estates
and up gradation of infrastructure facilities in one
existing Industrial Estate as detailed below.

Creation of Infrastructure in Industrial Estates in
2012-13
(Rupees in Lakhs)
Sl.
No

Location

Project
Cost
GOI
Grant

SIDCO
Contri-
bution
Stage

1 Palayapatti,
Thanjavur
District
499.00 299.40 199.60 Project approved
by GOI and
sanction order is
awaited.
2 Vaniyambadi,
Vellore
District
56.64 33.98 22.66 Sanction order
received from
GOI and the
project is under
implementation
3 Mathur
(New),
Pudukottai
District.
235.00 141.00 94.00 Sanction order
received from
GOI and the
project is under
implementation.
4 Virudhunagar
(Urban),
Virudhunagar
District
319.00 191.00 128.00 Sanction order
received from
GOI and the
project is under
implementation.
TOTAL 1109.64 665.38 444.26

81


Up-gradation of Industrial Estate in 2012-13
(Rupees in Lakhs)

No

Name of the
Industrial
Estate
Project
cost
GOI
Grant
GoTN
Grant
Benefi
ciaries
Contri
bution

Stage
1 Malumicham
patti
Coimbatore
District
200.00 113.25 60.00 26.75 Approved
by GOI
and order
is awaited.

In 2013-14, SIDCO has proposed to create
infrastructure facilities in 4 new Industrial Estates
and to upgrade infrastructure facilities in 2 existing
Industrial Estates as follows.
Creation of New Industrial Estates (Rupees in Lakhs)
S
No
Location
Project
Cost
GOI
Grant
SIDCO
contri-
bution
Remarks
1 Pidaneri,
Thoothukudi
District
447.95 268.77 179.18 Proposal
sent to GOI
and sanction
order
awaited.
2 Marikundu,
Theni District
720.00 432.00 288.00 Land taken
possession
and layout
under
preparation.
3 Kurukkalpatti
Tirunelveli
District
890.00 534.00 356.00 Land taken
possession
and layout
under
preparation.

82

4 Pattanam,
Villupuram
District
610.00 366.00 244.00 Land taken
possession
and layout
under
preparation.
Total 2667.95 1600.77 1067.18

Upgradation of Existing Industrial Estates
(Rupees in Lakhs)
Sl
.No
Name of the
Industrial
Estate
Project
cost
GOI
Grant
GoTN
Grant
Benefici
aries
contribut
ion
Remarks
1 Thiruverumbur,
Trichy District
432.00 259.20 129.60 43.20 Proposal
sent to
GOI.Orde
rs
awaited.
2 Dindigul,
Dindigul District
200.00 120.00 60.00 20.00 Project
report
under
preparatio
n
Total 632.00 379.20 189.60 63.20



83

(2) Common Facility Centres (CFCs) under
the MSE - CDP Scheme

Micro and Small enterprises Cluster
Development Programme (MSE CDP) aims at
addressing the needs of the industries, through
formation of well-defined clusters and geographical
areas to enable the Micro and Small enterprises to
have better access to resources, linkages to credit
and to enhance their marketing competitiveness.
A cluster is a group of similar and related
enterprises in a defined geographic area that share
common markets, technologies, worker skill needs
and are producing same/similar products.
Salient features of a cluster are as follows:
a) The methods of production, quality control
and testing, energy consumption, pollution
control etc. are similar in nature.
b) Technology and marketing strategies are
similar.
c) Easy communication among the members of
the cluster
d) Opportunities and Challenges are common.


84

Government of India has adopted the cluster
development approach as an important tool for
enhancing the competitiveness and productivity of
the Micro, Small and Medium enterprises.
Clustering of units also enables providers of various
services to them, including banks and credit
agencies, to provide their services more
economically, thus reducing costs and improving
the availability of services for these enterprises.
This scheme is being implemented to
support the sustainability and growth of Micro and
Small Enterprises by addressing common issues, to
build capacity of them for common supportive action
through formation of self-help groups, consortia etc.
and to set up common facility centres (for testing,
training centre, raw material depot, effluent
treatment, complementing production processes,
etc.)
SIDCO has been nominated as the
implementing Agency for Establishing Common
Facility Centres in Tamil Nadu under MSE-CDP
scheme vide G.O.(Ms.) No.24, MSME Dept. dated

85

9.8.2011. In total, 53 Projects have been identified
in Tamil Nadu for implementation. Out of these, 18
projects at a total project cost of Rs.77.98 Crores
have been sanctioned by the Government of India
with a grant for a sum of Rs.53.89 Crores.The
Government of Tamil Nadu has sanctioned a grant
of Rs.5.76 Crores. Out of the above 18 projects, 7
projects have already been completed. The
remaining 11 Common Facility Centres are under
implementation. The expected total employment
generation from these clusters will be around
15,000 persons.
The funding pattern of MSE-CDP(CFC)
scheme is as follows:
Grant from GOI 70% (maximum project cost of
Rs.15 Crores)
Grant from GoTN 10% (maximum of Rs.1Crore)
SPV Contribution /
Bank Loan
20%.


The Hon'ble Chief Minister of Tamil Nadu
has announced during the Golden Jubilee
Celebrations of the Kuntha Industrial Cooperative

86

Tea Factory that a Tea cluster with a Common
Facility Centre will be established at Mettupalayam
in Coimbatore District at an estimated project cost
of Rs.15.00 Crores to boost the development of Tea
industry in Nilgiris District. The Common Facility
Centre will have the facilities for Tea Mixing, Tea
Packeting, Warehousing, Testing Laboratory and
Marketing Centre. This project will be implemented
during this year.
The status on implementation of MSE-CDP
(CFC) scheme in the state has been categorised as
given below:
A. Projects for which final approval - 18 Nos
obtained from Government of India
(Annexure-B)

B. Projects for which in-principle approval - 12 Nos
given by Government of India
(Annexure-C)

C. Projects which have been recommended - 23 Nos
to Government of India and at
(Annexure-D) preparatory stage.





87

3.7.2 State Government's Part II Scheme

SIDCO has been availing grants from the
Government of Tamil Nadu under the Part II
Scheme towards the strengthening of infrastructure
in the existing industrial estates and has so far
availed Rs.127.50 Lakhs as indicated:
(Rupees in Lakhs)




S.
No
Year No. of
Industrial
Estates
benefitted
Appro
ved
project
cost
Govt. of
Tamil
Nadu
Grant
Remarks
1 2006-07 3 101.50 25.00 Works
Completed
2 2007-08 3 114.00 25.00 Works
Completed
3 2008-09 3 120.00 20.00 Works
Completed
4 2011-12 5 150.00 30.00 Works
Completed in 4
locations except
R.K. Pet which is
under
implementation.
5 2012-13 3
(Thoothukudi,
Keelanagachi,
Gudiman-
galam)
110.00 27.50

Under implement
tation.
Total 595.50 127.50

88

3.8 Raw Material Distribution
The raw materials such as Iron & Steel, Wax,
Potassium Chlorate and TNPL paper are
distributed through various depots situated in
Ambattur, Coimbatore, Madurai, Trichy, Sattur,
Sivakasi and from its Branch Offices located at
Erode, Salem, Thanjavur, and Vellore. The details
of target and achievements for the year 2012-13
and Target for the year 2013-14 are as follows:-
Sl.
No
Name of
the
Material
Target for
2012-13
Achievement in
2012-13
(upto March 2013)
Target for
2013-14
Qty. in
Metric
Tonnes
Rs in
Lakhs
Qty. in
Metric
Tonnes
Rs in
Lakhs
Qty. in
Metric
Tonnes
Rs
in Lakhs
1 Iron &
steel
5181.07 2239.71 3122.43 1472.70 4700.00 2238.00
2 Wax 5300.86 4646.30 3679.30 3631.13 5400.00 5443.00
3 TNPL
Paper
(Direct
Sales)
242.09 147.00 177.02 106.95 300.00 180.00
4 TNPL
paper
(Agency
Sales)
494.44 269.60 874.62 499.37 1000.00 600.00
5 Potassium
Chlorate
5.00 3.34 4.00 3.73 5.00 4.80
Total 11223.46 7305.95 7857.37 5713.88 11405.00 8465.80



89

3.9 Marketing Assistance Scheme
SIDCO assists the Micro and Small
Entrepreneurs through Marketing Assistance
Scheme. SIDCO approaches the Government
Departments / Local Bodies on behalf of these
Micro and Small units which are registered with
SIDCO under this scheme. The orders so received
are distributed among Micro and Small Enterprises
and SIDCO ensures the execution of these orders
to effect good quality and timely supply. Payments
received from the Government Departments /
Undertakings / Local Bodies for the supplies
effected are released to the units after deducting
3% as consultancy fees.
SIDCO has executed orders worth Rs.125.91
Lakhs upto March 2013. For 2013-14, target has
been fixed as Rs.180.00 Lakhs to make a
substantial progress.




90

3.10 e-Governance
Computerization of activities of SIDCO with
an objective to revamp the organisation has been
taken up to simplify the office procedures and
formalities and to accelerate the performance of the
Corporation. This will in turn enhance the
productivity and efficiency. As a first step, SIDCO
has introduced downloading of application forms for
allotment through website. With the assistance of
ELCOT, software is being developed to bring all the
activities of SIDCO online.
Further, action is being taken for mapping of
all Industrial Estates located in all over Tamil Nadu
for envisaging better economic governance,
understanding of the emerging infrastructure and
planning requirements, value addition and value
from waste. Apart from mapping, the various details
with respect to an Industrial Estate such as name of
the unit, line of activity, environmental parameters,
details of production and turnover, export,
employment generated and other such parameters
will be made online.

91

Annexure A
Existing Industrial Estate in the State
District

S
No
Location
Year of
formation
Total
Extent
(in
acres)
1. Chennai 1 Guindy (G) 1958 404.08
2 Arumbakkam (S) 1979 3.92
3 Villivakkam (S) 1979 2.04
4 Kodungaiyur (S) 1979 7.88
(2) Thiruvallur 5 Ambattur (G) 1963 1167.00
6 Kakkalur (G) 1988 199.00
7
Kakkalur-Phase II(G)
2009 84.01
8 Thirumazhisai (S) 1988 160.85
9 Gummidipoondi
(S)
1988 25.24
10 R.K.Pet (S) 1996 8.15
11 Vichoor (S) 1994 59.16
12
Thirumullaivoyal (WIP)
(S)
2001 225.80
(3) Kancheepuram 13 Kancheepuram (G) 1968 37.95
14
Maraimalainagar (S)
1981 39.50
15 Alathur (S) 1984 150.00
16 Thirumudivakkam (S)
(including WIP)
1993 201.11


92

(4) Vellore 17 Katpadi (G) 1968 19.48
18 Arakonam (G) 1968 11.09
19
Arakonam- Phase-II(G)
2009 40.65
20 Ranipet (S) 1972 113.44
21
Mukuntharayapuram (S)
1980 86.19
22 Vannivedu (S) 1987 16.44
23 Vinnamangalam (S) 2009 10.49
(5) Thiruvannamalai
24
Thiruvannamalai (G)
1968 15.56
(6) Krishnagiri 25 Krishnagiri (G) 1965 41.86
26 Uthangarai (S) 1995 41.28
27 Hosur(SIPCOT) (S) 1976 95.15

28 Hosur (New) (S) 1999 18.80
29 Bargur (S) 1995 13.05
30 Bargur Phase II (S) 2009 18.59
31 Pollupalli (S) 2009 60.96
(7) Dharmapuri 32 Dharmapuri (G) 1965 20.28
33 Kadagathur (S) 2009 7.02
(8) Salem 34 Salem (G) 1967 19.55
35 Mettur (G) 1967 184.38
36 Karuppur (WIP) (S) 2004 51.74
37 Veerapandi (S) 1993 9.79
(9) Namakkal 38 Namakkal (S) 1977 10.09
39 Thiruchengodu (S) 1980 9.18
(10)Erode 40 Erode (G) 1959 25.13
41 Nanjaiuthukuli (S) 1995 13.05
(11) Coimbatore
42 Kurichi (G) 1972 88.43
43 Malumichampatti(S) 1994 36.14

93

(12) Tiruppur 44
Ganapathipalayam (S)
1993 17.10
45 Rasathavalasu (S) 2011 51.80
46 Tiruppur (S) 1978 10.14
47 Gudimangalam (S) 1992 6.74
(13) Nilgiris 48 Ooty (S) 1981 10.65
(14) Cuddalore 49 Cuddalore (G) 1971 15.60
50 Vadalur (G) 1972 26.22
(15) Villupuram 51 Asanur (S) 2009
107.80
52 Venmaniathur (S) 2011
38.88
(16) Perambalur 53 Elambalur (S) 2009 44.48
(17) Thanjavur 54 Kumbakonam (G) 1968 32.30
55 Thanjavur (G) 1968 21.94
56 Pillayarpatti (S) 1974 10.96
57 Nanjikottai (S) 1996 26.30
(18)Nagapattinam

58 Nagapatinam (G) 1966 20.97
59 Mayiladuthurai (S) 2009
12.56
(19) Tiruchirapalli 60 Thuvakudi (G) 1974 478.38
61 Thiruvarambur(G) 1974 74.50

62
Ariyamangalam (G)
1974 17.64
63
Valavanthankottai(WIP)
(S)
2003
51.70
64
Valavanthankottai
(P- II) (S)
2008
87.18
65
Valavanthankottai
(P- III) (S)
2009
26.84
66 Kumbakudy (S) 2009 24.46


94

(20) Karur 67 Karur (G) 1974 26.63
68 Karur (Athur) (S) 1993 36.29
(21) Pudukottai 69 Pudukkottai (G) 1974 23.18
70 Pudukkottai
(SIPCOT) (S)
1988
51.45
71 Mathur (S) 1975 26.00
(22) Theni 72 Theni (G) 1963 26.59
73 Andipatty (S) 1994 22.34
(23) Dindigul 74 Dinidigul (G) 1965 39.90
75 Batlagundu (G) 1965 16.26
(24) Madurai 76 Madurai K.Pudur
(G)
1960
56.05
77 Kappalur (G) 1966 534.64
78
Kappalur- WIP (S)
2007 18.45
(25) Ramnad 79 Paramakudi (S) 1976 10.00
80 Keezhanagachi (S) 1993 10.00
81 Urapuli (S) 1993 12.14
(26)Sivagangai 82 Karaikudi (G) 1966
180.19
83 Sivagangai (G) 1966 70.61
84 Kirungakottai (S) 1993 21.85
(27) Virudhunagar
85 Virudhunagar (G) 1958 45.65
86 Rajapalayam (S) 1995 41.13


95

(28) Tirunelveli 87 Pettai (G) 1959 50.55
88 Kadayanallur (S) 1992 10.00
89 Valliyur (S) 2005 16.75
90 Valliyur- Phase-II (S) 2010 23.16
(29)Thoothukudi
91 Kovilpatti(G) 1962 85.54
92 Thoothukudi (S) 1988 24.18
(30)Kanyakumari
93 Konam (G) 1964 20.70
94 Marthandam (G) 1964 7.50
TOTAL
6576.37
S - SIDCO developed Estates
G - Govt. Estates
WIP - Women Industrial Park

96

Annexure-B
MSE-CDP (Common Facility Centre) Scheme
Projects for which final approval obtained from Govt. of India
(Rupees in Lakhs)
S.
No.
Cluster name
Project
cost of
CFC
GOI
grant
GoTN
grant
SPV
Contri
-bution
Bank
Loan
Remarks
1 Sago & Starch, Salem 92.06 73.31 0.00 18.75 0.00 Project
completed
2 Safety Matches,
Gudiyatham
156.00 85.54 10.73 25.00 34.73 Project
completed
3 Safety Matches,
Virudhunagar
156.00 85.54 10.73 25.00 34.73 Project
completed
4 Safety Matches,
Srivilliputhur.
156.00 85.54 10.73 25.00 34.73 Project
completed
5 Safety Matches, Sattur 156.00 85.54 10.73 25.00 34.73 Project
completed
6 Safety Matches,
Kazhugumalai
156.00 85.54 10.73 25.00 34.73 Project
completed
7 Safety Matches,
Kovilpatti
156.00 85.54 10.73 25.00 34.73 Project
completed
8 Wet Grinder,
Coimbatore
288.20 99.00 16.52 172.68 0.0 Project under
implementation.
9 Brick, Tirunelveli 227.27 122.73 22.72 29.55 52.27 Project under
implementation.
10 Ceramic,
Vridhachalam
73.10 43.86 GoTN
has given
sheds
18.45 10.79 Project under
implementation.
11 Coir, Sivaganga 658.90 500.01 65.89 93.00 0.0 Project under
implementation.
12 Engineering Ranipet,
Vellore.
927.08 616.39 97.21 109.35 104.13 Project under
implementation.
13 Printing, Sivakasi 1096.9 767.81 90.66 120.92 117.48 Project under
implementation.

97

14 Rice Mill, Keelapavoor 690.58 466.03 69.05 145.50 10.00 Project under
implementation.
15 Auto Components,
Hosur
690.94 439.89 70.75 105.30 75.00 Project under
implementation.
16 Printing, Krishnagiri 1072.52 964.14 0.00 108.38 0.00 Project under
implementation.
17 Rice Mill, Alangulam 787.00 550.25 78.91 83.75 74.09 Sanctioned by
GOI.
18 Sago & Starch Phase
II, Salem
255.35 229.82 0.00 25.53 0.00 Sanctioned by
GOI.
Total
7795.90 5386.48 576.09 1181.16 652.14


98

ANNEXURE - C
MSE-CDP (Common Facility Centre) Scheme
Projects for which In- principle approval given by Govt. of India
(Rupees in Lakhs)
S
No
Cluster
name
Projec
t cost
of
CFC
GOI
grant
GoTN
grant
SPV
Contri
bution
Bank
loan
Remarks
1 Rice Mill,
Thanjavur
244.66 132.83 40.43 21.40 50.00 Final
sanction to
be
obtained
from GOI
2 Engineering,
Dindugul
971.29 651.34 97.13 132.82 90.00 Final
sanction to
be
obtained
from GOI
3 Refractory,
Vriudha-
chalam
898.53 573.51 89.85 135.17 100.00 Final
sanction to
be
obtained
from GOI
4 Stainless
Steel,
Kumbakona
m
126.52 99.05 7.90 19.57 0.00 Final
sanction to
be
obtained
from GOI
5 Rice Mill,
Kangayam
750.53 525.37 75.05 95.11 55.00 Final
sanction to
be
obtained
from GOI
6 Engineering,
Paramakudi
233.39 133.47 23.34 37.58 39.00 Final
sanction to
be
obtained
from GOI
7 Steel Product
Fabrication
Cluster,
Salem.
1532.74 1277.71
0.00 255.03 0.00 Final
sanction to
be
obtained
from GOI
8 Engineering,
Ambattur
1124.42
805.33 54.44 114.65 150.00 Final
sanction to
be
obtained
from GOI

99

9 Gold
Jwellery,
Madurai
361.48 260.82 29.1
4
39.92 31.6
0
Final
sanction to
be
obtained
from GOI
10 Gate &
Grills,
Thirumullai-
voyal
296.92 209.98 29.6
9
57.25 0.00 Final
sanction to
be
obtained
from GOI
11 Power and
Auto
Loom,Salem
.
1497.0
0
1032.00 110.
50
167.70 186.
80
Final
sanction to
be
obtained
from GOI
12 Garment
Cluster
(Women),
Thalavai-
puram
93.57 74.28 9.36 9.93 0.00 Final
sanction to
be
obtained
from GOI
Total 8131.0
5
5775.69 566.
83
1086.1
3
702.
40





100

ANNEXURE D
MSE CDP (Common Facility Centre) Scheme
Projects which have been recommended to
Government of India and at preparatory stage
S.
No
Cluster name
Project
cost of
CFC
GOI
grant
GoTN
grant
SPV
Contri
bution
Bank
loan Remarks
(Rs. in Lakhs)
1 Cement
Pipes,
Chinnadhara-
puram
1010.00 643.00 337.00 30.00 0.00 Project
recommen
ded to GOI
and
sanction
awaited
2 Garment,
Dhalavai-
puram
1363.70 991.37 99.00 137.91 135.42 Project
recommen
ded to GOI
and
sanction
awaited
3 Coir,
Pollachi
1067.89 736.93 100.00 110.96 120.00 Project
recommen
ded to GOI
and
sanction
awaited
4 Corrugated
Box,
Thiruvallur
1884.35 1050.00 100.00 534.35 200.00 Project
recommen
ded to GOI
and
sanction
awaited
5 Safety Match
Cluster,
Sattur (Phase
- II)
135.76 105.09 0.00 13.87 16.80 Project
recommen
ded to GOI
and
sanction
awaited
6 Safety Match
Cluster,
O.Mettupatty
360.50 218.25 36.00 42.50 63.75 Project
recommen
ded to GOI
and
sanction
awaited

101

7 Rice Mill,
Trichendur
1070.00 711.60 100.00 135.00 123.40 Project
recommen
ded to GOI
and
sanction
awaited
8 Gold
Jewellery,
Trichy
365.80 292.84 36.58 0.00 36.58 Project
recommen
ded to GOI
and
sanction
awaited
9 Printing
Cluster,
Salem
1450.00 1250.00 0.00 0.00 200.00 Project
recommen
ded to GOI
and
sanction
awaited
10 Power Loom,
Rasipuram
550.54 371.86 45.51 59.12 74.05 Proposal
under
preparation
11 Cashew,
Kanyakumari
1486.95 1277.16 61.09 148.69 0.00 Proposal
under
preparation
12 Pharma
Indian System
of Medicine,
Kavangarai
47.40 35.80 4.54 7.06 0.00 Proposal
under
preparation
13 Coir,
Erode
600.00 411.93 48.65 79.42 60.00 Proposal
under
preparation
14 Engineering,
Perungudi
77.00 59.60 7.45 4.45 5.50 Project
report
under
revision
15 Plastic,
Madurai
524.42 342.96 33.11 75.00 73.35 Project
report
under
revision
16 Plastic,
Kanchee
puram
1485.12 1026.96 100.00 100.00 258.16 Project
report
under
revision
17 Lorry Body
Building,
Namakkal
1473.61 1107.29 98.53 232.79 35.00 Project
report
under
revision
18 MicalPharma,
Chennai
342.63 266.11 34.26 42.26 0.00 Project
report
under
revision

102

*Detailed Project Report (DPR) under preparation. The exact project
cost will be known after receipt of DPR.






19 Electronics,
Coimbatore
1482.00 1037.40 100.00 197.16 147.44 Project
report
under
revision
20 Pharma,
Alathur
*
Proposal
under
preparation
(Initial
Stage)
21 Readymade,
Thoothukudi
*
Proposal
under
preparation
(Initial
Stage)
22 Rubber,
Madurai
*
Proposal
under
preparation
(Initial
Stage)
23 Tea,
Mettupalayam
1500.00
*
1100.00 100.00 300.00 0.00 Proposal
under
preparation
(Initial
Stage)

103

4. Tamil Nadu Small Industries Corporation Ltd.
( TANSI )
4.1 Formation
The Tamil Nadu Small Industries Corporation
Limited (TANSI) was incorporated in 1965 as a
Company by bringing together 64 industrial units
under the control of the Director of Industries and
Commerce. TANSI started its production in these
units from 1.12.1965.
Since some of the units had lost their
relevance with the growth of private entrepreneurs,
TANSI slowly phased out its activities and closed
down some of the units. At present TANSI has 29
Production Units all over Tamil Nadu. The details of
various units are as follows:
4.1.1 Furniture Units
SNo. Name of the Unit District
1 Tansi Furniture Works, Guindy,
Chennai


Chennai 2
TEK Project, Guindy, Chennai
3 Tansi Project (NABARD), Guindy,
Chennai
4 Tansi Project, Wall Tax Road,
Chennai
5 Tansi Project Cell, Pollachi Coimbatore
6 Tansi Furniture & Engineering
Works, Cuddalore
Cuddalore

104

7 Tansi Fabrication Works, Palani Dindigul
8 Tansi Furniture Works, Krishnagiri Krishnagiri
9 Tansi Furniture Works, Madurai Madurai
10 Tansi Furniture Works, Pudukkottai Pudukkottai
11 Tansi Project Cell, Omalur Salem
12 Tansi Furniture & Engineering
Works, Pathamadai
Tirunelveli
13 Tansi Project Cell, Tiruppur Tiruppur
14 Tansi Fabrication Works, Vellore Vellore
15 Tansi Fabrication Works,
Rajapalayam
Virudhunagar

4.1.2 Engineering Units
Sl.
No.
Name of the Unit District
1 Tansi Engineering Works, Guindy,
Chennai
Chennai
2
Tansi Engineering Works, Karur Karur
3 Tansi Tool & Engineering works,
Madurai
Madurai
4 Tansi Engineering Works,
Mayiladuthurai
Nagappattinam
5 Tansi Structural & Galvanizing
Works, Metturdam
Salem
6
Tansi Engineering works, Thanjavur Thanjavur
7
Tansi Project Cell, Thoothukudi Thoothukudi
8 Tansi Foundry & Engineering
Works, Pettai
Tirunelveli
9 Tansi Engineering Works,
Tiruvannamalai
Tiruvannamalai
10 Tansi Structural Works,
Tiruchirappalli
Tiruchirappalli
11 Tansi Tool & Engineering Works,
Virudhunagar
Virudhunagar

105


4.1.3 Special Product Units


Show Rooms

TANSI has 3 Show Rooms at Chennai,
Namakkal and Trichy. Another show room at
Madurai will be opened shortly. The show room at
Nammakal was opened on 16.12.2011 and the
show room at Trichy was opened on 20.07.2012. It
is proposed to open one more showroom at
Madurai.

4.2 Main Activities

TANSI undertakes manufacture of wooden
and steel furniture, fabrication works and
manufacture of hand pumps, spirit based surgical
items, paints etc. It has earned a name for itself in
the manufacture of quality wooden and steel
Sl.
No.
Name of the Unit District
1 Tansi Polish Unit, Ambattur, Chennai
Thiruvallur
2 Tansi Pump Unit, Ambattur, Chennai
3
Tansi Tool & Engineering Works,
Tiruchirappalli
Tiruchirappalli

106

furniture, deep bore well hand pumps, spirit based
surgical products, paints etc. and has been
supplying various types of furniture items required
for schools under the 'Sarva Shiksha Abhiyan',
steel cots required for Government hostels, and
hand pumps required for drinking water schemes.

It is a matter of pride that the 2 Pump Units
namely, Tansi Pump Unit, Ambattur and Tansi Tool
& Engineering Works, Trichy; 3 Fabrication Units
viz. Tansi Fabrication Works, Palani, Tansi
Fabrication Works, Rajapalayam and Tansi
Fabrication Works, Vellore; and the Tamil Nadu
Paints and Allied Products Limited (TAPAP) have
obtained ISO-9001:2008 Certification through
British Standard Institution (BSI) Management
Systems India Pvt.Ltd, New Delhi and are
producing quality products.





107


4.3 Performance
The performance of TANSI for the year
2012-13 (upto January, 2013) is furnished here
under:-
(Rs. in Crores)
Description 2012-13
2013-14

Revised
Target
2012-13
Achievement
(upto
Jan, 2013)
Target
2013-14
Production 95.00 57.27 100.00
Sales 95.00 61.11 100.00
Operating
Profit
15.66 7.42 17.39
Nomination
Fee to Govt.
9.50 6.11 10.00
Provision for
Tax
2.05 0.44 2.45
Net profit
(approx.)
4.11 0.87 4.94



108

4.4 Categories and product lines

TANSI has different categories of product
lines as follows:


Category Product Lines
(i) Structural
& Engineering
Galvanization, Heavy structurals of various kinds
such as factory sheds, bridges, bus stands etc.,
Doors and Windows, TANGEDCO Line
materials, Pillar Boxes, R.T.S. Grills, Sheet
Metal Fabrication.

(ii) Furniture Wooden furniture, furnishing and interior
decoration, panelling etc., Steel furniture for
domestic, office and hospital uses.

(iii) Special
Products



Deep bore well Hand Pumps, Extra Deep bore
well Hand Pumps, Pump spares, spirit based
medicinal products, surgical spirit, De-Natured
Spirit, Tincture Cetrimide and Povidone Iodine;
Spirit based industrial products like Gasket
Shellac, French Polish, Thinner, disinfectant
solutions like Lysol, Phenyle.

4.5 Nomination Fee paid to Government
TANSI has been making profits continuously
for the past seven years and has been able to wipe
out the accumulated losses, thanks to the support
from Government and various Government
Departments / agencies especially School
Education Department, ICDS, TNEB etc. In view of

109

the concession granted by Government for placing
orders directly with TANSI, the performance of
TANSI improved and the Corporation has paid a
total nomination fee of Rs. 66.69 Crores in the last
four years out of which Rs.9.03 Crores was paid for
2011-12.

4.6 Major and important Orders executed by
TANSI

(i) TANSI has completed the supply of Self
Learning Kit for Anganwadi children under
Integrated Child Development Services
(ICDS) for a value of Rs.5.00 Crores and
play items to various schools at a value of
Rs.3.00 Crores during 2012-2013.
(ii) TANSI has secured indent for the supply of
furniture items to various Courts in Tamil
Nadu for a value of Rs.9.00 Crores, Animal
Husbandry Department for a value of
Rs.3.00 Crores, Nation Cadet Corps for a
value of Rs.2.30 Crores, 2-tier steel cots for
the Hostels of Backward Classes and Most
Backward Classes Department for a value of

110

Rs.3.54 Crores and the Hostels of the
Adi Dravidar Welfare Department for a value
of Rs.5.34 Crores during 2012-13.
(iii) TANSI has secured indent for the supply of
Dual Desk order for Rs.6.10 Crores under
Sarva Shiksha Abhiyan Scheme during
2012-13 which is under progress.
4.7 Tamil Nadu Paints and Allied Products
Limited (TAPAP)

This unit was started as a fully owned
subsidiary of TANSI for the manufacture and supply
of paints and allied products as a part of
diversification and came into existence on
18.11.1985 with registered office at Ambattur. The
main objective of the corporation is manufacture
and supply of red oxide paints, rubberized paints
for road marking and various enamel paints to
various Government departments, Transport
undertakings of Government etc., The share
capital of the Corporation is Rs.10.00 Lakhs.
TAPAP achieved a turnover of Rs. 1.87 Crores
during 2012-13 (Upto January 2013).

111

5. Entrepreneurship Development Institute
(EDI)

Generally, Entrepreneurship development is
defined from a narrow viewpoint and is often taken
to mean new enterprise creation alone as a viable
and lucrative career option to salaried employment.
However, entrepreneurship development is not new
enterprise creation alone. Entrepreneurship has to
be viewed as a continuum that starts with the
creation of awareness about entrepreneurship
amongst children and youth, so that it can create
the necessary environment and trigger the thought
process that promotes lateral thinking, innovation,
creativity and the capacity to take risks. Beyond
this, the continuum of entrepreneurship must carry
on to cater to the requirements of existing
entrepreneurs, also such entrepreneurs may not
have had the benefit of any formal training or
management orientation while setting up their
enterprises. They would, therefore, also have to be
supported by way of mid-term interventions like
management development programmes in order to

112

equip them to deal with the challenges of a hostile
market environment, where the threats may come
both in the form of the pressure of domestic large
scale industrial production or from the global market
in the form of cheaper import competition.
Entrepreneurship Development in the
present context has to be taken to mean not only
training for new enterprise creation, but also mid-
term management intervention, mentoring and
handholding that may be required at different
phases in the growth of the entrepreneur. This can,
in a sense, be termed as the life cycle approach to
Entrepreneurship Development Programmes and
forms the rationale for the various types of
programmes conducted by the EDI.
The EDI was set up in the year 2001 with the
objective of identifying and selecting potential
entrepreneurs and develop them for setting up
industries by providing them with training, to
conduct and sponsor research in the field of
entrepreneur development, to provide consultancy
services on various aspects of entrepreneurial

113

development etc. Since its inception, the EDI has
conducted training programmes for more than
62,400 candidates, like PMRY, PMEGP, UYEGP
and other assisted programmes of the State
Government and the Government of India. The EDI
has conducted training for 5808 beneficiaries in the
year 2011-12 and 11701 beneficiaries were trained
during the year 2012-13. In total 17509 persons
were benefitted by the training.
The EDI has to play a significant role in three
important areas of training namely:
(i) Entrepreneurship Orientation and
Awareness programmes
(ii) New Enterprises Creation
Programmes (NEC)
(iii) Existing Entrepreneurs' Programmes
for Small Business Survival and
Growth / Financial Management /
Micro Financing.

The Hon'ble Chief Minister of Tamil Nadu
has reviewed the working of the Entrepreneurship
Development Institute on 14.07.2011 and directed
that the Entrepreneurship Development Institute

114

should be thoroughly revamped to make it a
dynamic institution that will motivate and train young
entrepreneurs, particularly first generation
entrepreneurs.
The Government have allotted 1.91 acres of
land in Guindy Industrial Estate to the EDI on lease
for 30 years on a nominal lease rent of Rs. 1,000/-
per annum vide G.O (Ms) No. 43 MSME (D1)
Department, dated 04.11.2011 and sanctioned a
sum of Rs.4.88 Crores for construction of modern
training complex vide G.O.(Ms) No.40, MSME(D1)
Department dated 13.07.2012. The foundation
stone for the building was laid by the Hon'ble Chief
Minister on 20.02.2013. Building construction is in
progress.
The EDI has been restructured and
strengthened by the induction of Academic,
Administrative and other supporting staff. Core
academic faculty now handle the training
programmes directly. Apart from conventional EDP
programmes, the EDI is also conducting specialized

115

programmes on Management, Taxation for MSME
sector and other skill based programmes.

5.1 Unemployed Youth Employment
Generation Programme (UYEGP)
The total number of beneficiaries trained
under the UYEGP programme in 2011 to 2013 so
far is 10,140. During the year 2012-2013 alone,
5,944 persons have been trained.

5.2 Skill Development Programmes
Tamil Nadu Vision 2023 envisages training
and developing skills around 20 million persons
over the next 11 years. EDI, therefore focuses on
providing skill development programmes that are
industrially relevant.

The following Skill Development Programme
have been conducted by the EDI during 2012-2013:
Gold Jewellery Appraisal 284 participants
Paper cup and bag making 15 participants and
Fish marketing -- 25 participants


116

5.3 New Entrepreneur - cum - Enterprise
Development Scheme (NEEDS)

EDI has been entrusted with the task of
training the beneficiaries of NEEDS. The first batch
of training for beneficiaries has commenced on 27
th

February, 2013 at Chennai EDI training centre.
Further, batches at Krishnagiri, Trichy, Tirunelveli
and Coimbatore are being conducted covering 182
beneficiaries.
The beneficiaries under the NEEDS
programme will be imparted training on Market
Survey, Project Plan Preparation, Business
Accounts, Marketing etc., for a period of one month.

Similarly the following training
programmes have also been conducted.
(i) Training Programme on Waste to Wealth
A one day training cum awareness
programme to identify entrepreneurial opportunities
from waste to wealth was conducted by the EDI.
100 participants attended the programme.


117

(ii) Enterprise Development in Tsunami
affected Coastal Districts

Under the International Fund for Agricultural
Development (IFAD) Assisted Post, Tsunami
Sustainable Livelihoods Programme (PTSLP), in 28
coastal panchayats 715 beneficiaries were trained
in Micro Enterprise Development.
(iii) Awareness programme with AAVIN
In order to encourage students to get
experience in marketing of AAVIN products through
kiosks in their college during free hours, an
Awareness Programme was conducted on
9.2.2013. Around 300 participants from over 40
Engineering, Arts & Science Colleges participated.

(iv) One day Training Programme on
Occupational Health & Safety for Effluent
Plant Operators

In order to prevent the loss of lives during
cleaning of Effluent Treatment Plants (ETP) and
Common Effluent Treatment Plants(CETPs),
training programmes have been conducted by the
EDI jointly with the Tamil Nadu Pollution Control

118

Board. This training programme covered
occupational health and safety, management in
small scale units in the textile, tannery and other
sectors 2,200 operators and supervisors of ETPs
and CETPs participated in these programmes.

(iv) Finishing School Workshop for Final year
student of Veterinary College

A three days Finishing School Workshop for
Final Year B.VSc students to train them to take up
Entrepreneurship as a career was conducted in July
2012. About 120 students of the Madras Veterinary
College participated in the programme.

(vi) Faculty Development Programme for
Teachers of Higher Education

Faculty Development Programmes of two
weeks duration for faculty members of Science and
Engineering colleges, Polytechnics in
entrepreneurship development are conducted by
the EDI. This programme is sponsored by the

119

Department of Science & Technology, Government
of India. These programmes have been held at
Tiruchirappalli & Salem. Altogether 50 Teachers of
Science & Technology have undergone this
programme successfully.

(vii) Faculty Development Programme for
Govt. ITI Teachers / Instructors

The EDI, in partnership with the Tamil Nadu
Skill Development Mission (TNSDM), has organized
Faculty Development Programmes for Teachers in
various centres. Around 300 instructors have
successfully attended the training programme.


120


(viii) Technology Based Entrepreneurship
Development Programme

Technology Based Entrepreneurship
Training Programmes focus on the training and
development needs of Science & Technology.
Entrepreneurs are given focused training in a
specific technology area in TEDPs conducted by
the EDI. 50 persons are benefitted by this
programme in the current year. These programmes
are funded by the Department of Science &
Technology, Government of India.
(ix) Entrepreneurship Awareness Camps
In order to spread awareness about
entrepreneurship amongst students as well as the
Faculty of academic institutions offering degree /
diploma courses in Science & Technology,
Entrepreneurship Awareness Camps (EACs) have
been conducted in 12 Engineering colleges and
Government Arts & Science colleges in Tamil Nadu
covering 951 students.


121

(x) Entrepreneurship Development
Programme

In order to motivate the youth to take up
Entrepreneurship as a career, two week
Entrepreneurship Development Programmes
sponsored by the Ministry of MSME, Government of
India have been conducted by the EDI in different
districts of Tamil Nadu. Totally, 772 participants
have been benefitted under this programme.

5.4 State Level Entrepreneurship Conference
A State Level Entrepreneurship Conference
for the Correspondents, Principals &
Entrepreneurship Cell Coordinators of Engineering,
Arts & Science Colleges from all over Tamil Nadu
was organised by the EDI on 21.12.2012 at the
Chennai Trade Centre. About 500 delegates
participated in the Conference. The objective of the
Conference was to facilitate the establishment of
Entrepreneurship Cells in Higher Educational
Institutions in the State so as to expand
entrepreneurial activities among students.

122

Conclusion
Against the background of the rapid changes
in the global economy, to which India and Tamil
Nadu are getting increasingly integrated, the
challenges to SME competitiveness have gone up.
However, a prerequisite for enhanced
competitiveness, is an environment of competition
itself.
Under the dynamic leadership of our Hon'ble
Chief Minister, we shall endeavour to create ideal
ecosystem for development of vibrant MSME Sector
as envisioned in the Tamil Nadu Vision 2023
document and to make Tamil Nadu as Model State
for MSME Sector.

P. Mohan
Minister for Rural Industries





123

MICRO, SMALL AND MEDIUM ENTERPRISES
DEPARTMENT
BUDGET ESTIMATE
DEMAND NO. 44
(Rupees in Thousands)
Major Heads
Budget
Estimate
2012-13
Revised
Estimate
2012-13
Budget
Estimate
2013-14
2851 Village and
Small Industries
2304724 2694106 2621861
2852 Industries 64567 64591 75014
3451 Secretariat
Economic Services
23931 23986 27346
4425 Capital Outlay
on Co-operation
- 1 1
4851 Capital Outlay
on Village and Small
Industries
1 16200 665401
7610Loans to
Government Servants
etc.,
1 1 1
2425 Cooperation 1000 1000 1
TOTAL 2394224 2799885 3389625