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Chapter An OveRview
1.1.1 Micro, small and medium enterprises (MSMEs), including khadi and village/ rural enterprises constitute an important segment of Indian economy in terms of their contribution to country’s industrial production, exports, employment and creation of an entrepreneurial base. The Government of India established the Ministry of Small Scale Industries and Agro & Rural Industries (SSI&ARI) in October, 1999 as the nodal Ministry for formulation of policies and Central sector programmes/schemes, their implementation and related coordination and for supplementing the efforts of the States/Union Territories for promotion and development of these industries in the country. The Ministry of SSI&ARI was bifurcated into two separate Ministries, namely, Ministry of Small Scale Industries and Ministry of Agro and Rural Industries in September, 2001. 1.1.2 Subsequent to enactment of “Micro, Small and Medium Enterprises Development Act (MSMED) 2006” by the Parliament, the Hon’ble President under Notification dated 9th May 2007 has amended the Government
of India (Allocation of Business) Rules, 1961. Pursuant to this amendment, Ministry of Agro and Rural Industries and Ministry of Small Scale Industries were merged into a single Ministry, namely, “Ministry of Micro, Small and Medium Enterprises.” The Second Schedule of the Government of India (Allocation of Business) Rules, 1961, indicates the business allocated to the Ministry of Micro, Small and Medium Enterprises (Annexure-1.1). 1.1.3 Although, the primary responsibility for promotion and development of MSMEs lies with the State Governments. However, the Government of India [in recognition of potential of these enterprises both in terms of creation of wealth and employment as well as the need for country-wide unified framework of policies and measures for their promotion and development] has always taken active interest in supplementing the efforts of State Governments through various policies and schemes. The role of the Ministry of Micro, Small and Medium Enterprises is mainly to assist the States in their efforts to promote growth and development of MSMEs, for enhancing their competitiveness in an increasingly market-led economy and for enabling them in generating
assistance for better access to domestic and export markets. support for product development.4 In addition. the Ministry also attempts to address common concerns of these enterprises and undertakes policy advocacy on behalf of the sector on issues critically affecting their sustenance and growth.MSMe additional employment opportunities.2 ORGAniSATiOnS OF THe MiniSTRY adequate flow of credit from financial institutions/banks. (NSIC). statutory bodies and autonomous organisations. the Coir Board and three national level entrepreneurship development institutes. viz. Micro. Small and Medium Enterprises (NBMSME). Guwahati. support for technology upgradation and modernisation.1 The formulation and implementation of policies and programmes/projects/ schemes is undertaken by the Ministry with the assistance of its attached office. While the REGP 2 . namely. in addition to all or some of the abovementioned supports. integrated infrastructural facilities. public sector enterprise.2. entrepreneurship development and skill upgradation through appropriate training facilities. design intervention and packaging.3 Pursuant to enactment of MSMED Act. and Indian Institute of Entrepreneurship (IIE).2. and cluster-based measures to promote capacity-building and empowerment of the units and their collectives. the Khadi and Village Industries Commission (KVIC). Hyderabad. modern testing facilities and quality certification.2. 1. l l l l l l l 1. Both these programmes are credit-linked capital subsidy schemes. Besides. The specific schemes / programmes undertaken by the Ministry and its organisations seek to facilitate / provide one or more of the following : l is implemented by the Khadi and Village Industries Commission (KVIC). Small and Medium Enterprises (NI-MSME). welfare of artisans and workers. the National Small Industries Corporation Ltd. NOIDA. the Ministry has been implementing two nation-wide employment generation programmes. National Institute for Micro. The Board examines the factors affecting promotion and l 1.1. 1. which are implemented through commercial banks. 1. the PMRY is implemented by the State Governments through the District Industries Centres (DICs). the Government has also established a National Board for Micro.2 Government has set up the National Commission For Enterprises in the Unorganised Sector (NCEUS) to suggest policies and programmes for addressing the wide range of issues affecting the productive potential of the large segment of unorganised micro and small productive units. Rural Employment Generation Programme (REGP) and Prime Minister’s Rozgar Yojana (PMRY). Small and Medium Enterprises-Development Organisation (MSME-DO). access to modern management practices. namely. 2006 and framing of Rules thereunder. National Institute for Entrepreneurship and Small Business Development (NIESBUD).
coordinating.5.3. Small and Medium Enterprises) [earlier known as the O/o the DC(SSI)]. 3 Technical Services Extension Centres. etc.1 The Office of the Development Commissioner (Micro. 1. 1.Annual Report 2007-2008 development of MSMEs and reviews policies and programmes relating to these enterprises with a view to make recommendations on these matters to the Government.MSME-DIs) (erstwhile SISI & Branch SISI). credit rating. product marketing. It is an apex body.. generally on commercial basis. 7 Field Testing Stations (FTs). 4 Regional Testing Centres (RTCs). marketing assistance. 1. NSIC implements its various programmes and projects throughout the country through its 9 Zonal Offices. 28 Branch MSME-DIs (Br. Small and Medium Enterprises-Development Organisation (MSME-DO). adoption of modern management practices.1 The National Small Industries Corporation (NSIC) Ltd. is a statutory organisation engaged in promotion and development of khadi and village industries for providing employment opportunities in the rural areas. 1956. implementing and monitoring policies and programmes for the promotion and development of MSMEs in the country. established under the Khadi and Village Industries Commission Act. aid and foster the growth of micro and small enterprises in the country. 35 Branch Offices.5 KHADi & viLLAGe inDUSTRieS COMMiSSiOn (KviC) 1. for assisting the Ministry in formulating. NSIC provides a variety of support services to micro and small enterprises to cater to their different needs in the areas of raw material procurement.1 The Khadi & Village Industries Commission (KVIC). 17 Sub Offices.4 nATiOnAL SMALL inDUSTRieS CORPORATiOn (nSiC) LTD. The main function of the Corporation is to promote. The Corporation is an ISO: 9001-2000 Company and has also executed a number of turnkey projects in many developing countries. 2 Small Entrepreneurs Promotion and Training Institutes (SEPTIs) and 1 Hand Tool Design Development and Training Centre. The MSME-DO also has a network of Tool Rooms. technology support services. SMALL AnD MeDiUM enTeRPRiSeS-DeveLOPMenT ORGAniSATiOn (MSMe-DO) 1. through its network of 30 Micro. acquisition of technologies. was established by the Government in 1955 as a Public Sector Company. In addition. etc.3 MiCRO. the MSME-DO provides a comprehensive range of common facilities. Process-cumProduct Development Centres (PPDCs) and technology and training support institutes which are run as autonomous bodies registered as societies under the Societies Registration Act. is also known as the Micro. 2 Software Technology Parks and 1 office outside India . headed by the Additional Secretary & Development Commissioner (MSME).4. The KVIC has been identified as one of the major organisations in the de-centralised 3 . Small and Medium EnterprisesDevelopment Institutes (MSME-DIs). 1. 5 Technical Services Centres. NSIC is headed by a Chairmancum-Managing Director and managed by a Board of Directors.
viz.MSMe sector for generating sustainable rural nonfarm employment opportunities at low per capita investment. developing new products and designs. undertaking publicity for promotion of exports and domestic sales.8 nATiOnAL COMMiSSiOn FOR enTeRPRiSeS in THe UnORGAniSeD SeCTOR (nCeUS) 1.the social objective of providing employment in rural areas.5. collecting statistics relating to exports and internal consumption of coir and coir products. 1. technological and economic research and development activities. promoting co-operative organisations among producers of husk. 1. These institutes are engaged in developing training modules. National Institute for Micro.6 COiR BOARD 1. undertaking research and training and providing consultancy services for entrepreneurship development and promotion of MSMEs.1 The Coir Board is a statutory body established under the Coir Industry Act. small and medium enterprises (MSMEs). marketing of coir and coir products in India and abroad. and the wider objective of creating self-reliance amongst the people and building up a strong rural community spirit. transfer of technology. in the process of generating employment/ self-employment opportunities in the rural areas.1 The National Commission for Enterprises in the Unorganised Sector 4 . coir fibre. 1953 for promoting the overall development of the coir industry and uplifting the living conditions of the workers engaged in this traditional industry.6. marketing. coir yarn and manufacturers of coir products. Small and Medium Enterprises (NI-MSME) at Hyderabad. assisting the establishment of units for the manufacture of products. National Institute for Entrepreneurship and Small Business Development (NIESBUD) at NOIDA and Indian Institute of Entrepreneurship (IIE) at Guwahati. The Coir Board consists of a full-time Chairman and 39 Members representing all stakeholders in the coir industry. ensuring remunerative returns to producers and manufacturers.2 The functions and activities of the Board inter-alia include undertaking scientific.7. 1. 1. particularly for creation of new enterprises by first generation entrepreneurs. It undertakes activities like skill improvement. etc. the Ministry has set up 3 national-level Entrepreneurship Development Institutes.2 The KVIC through its programmes and policies seeks to achieve .7 nATiOnAL enTRePReneURSHiP DeveLOPMenT inSTiTUTeS (eDis) 1.6. preventing unfair competition among producers and exporters. To undertake this task on regular basis. etc.. research & development.8. as autonomous societies. the economic objective of producing saleable articles.1 Entrepreneurship development and training is one of the key elements for the promotion of micro. 1.
44 other Members representing various stakeholders and Development Commissioner (MSME) as the Member . 2007 has established National Board for Micro. It consists of a Chairman.9 nATiOnAL BOARD FOR MiCRO. Member (VSE). SMALL AnD MeDiUM enTeRPRiSeS (nBMSMe) 1. two Part-time Members and an Advisory Board consisting of eminent experts from various fields relating to the unorganised sector. the Government under notification dated 15th May.9. The Commission has been given the mandate to examine the problems of enterprises in the unorganised sector and suggest measures to overcome them. Small and Medium Enterprises (NBMSME). The main functions of the Board are to examine factors affecting the promotion and development of micro. Planning Commission as the Deputy Chairperson. and to make recommendations on these matters or on any other matter referred to it which.Secretary. The term of the Commission has now been extended up to 30th September. 1. to assess impact thereof on such enterprises.1 In exercise of powers conferred under Section 3 of MSMED Act. 2006. in the opinion of the Government. three full time Members. is necessary or expedient for facilitating the promotion and development and enhancing the competitiveness of the MSMEs. small and medium enterprises. 5 . with the Minister (MSME) as its Chairman.Annual Report 2007-2008 (NCEUS) was set up in September. 2004. to review the policies and programmes of the Central Government in regard to facilitating the promotion and development and enhancing the competitiveness of such enterprises. 2008.
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