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Monday, February 17, 2014

Micro, Small & Medium Enterprises

Micro, Small & Medium Enterprises
Government of India under the Ministry of Micro, Small and Medium Enterprises have in October 2006 enacted Micro, Small and Medium Enterprises Development Act 2006. Under the Act, Micro, Small and Medium Enterprises are classified as under:
Enterprises Investment in Plant & Machinery (Manufacturing) Investment in Equipment (service)
Micro Up to Rs. 25 lakhs Up to Rs. 10 lakhs
Small Above Rs. 25 lakhs up to Rs. 5 crore Above Rs. 10 lakhs up to Rs. 2 crore
Medium Above Rs. 5 crore up to Rs. 10 crore Above Rs. 2 crore up to Rs. 5 crore

The small and medium enterprises as classified above, are required to file Entrepreneurs Memorandum (EM) Part-I to District Industries Centre for starting an industrial project. On completion of the project, the entrepreneur concerned is required to file Entrepreneurs Memorandum (EM) Part-II.
Earlier there was a system of granting registration to small scale industrial units by the District Industries Centre. These units are now required to file EM Part-II as Micro, Small or Medium Enterprises as classified above. On line submission & Processing of EM-I & EM-II has been made available in website w.e.f. 01/01/2013.
Over a period of time, Gujarat has registered a sizeable growth of SME sector. There were only 2169 small industries in 1961 at the time formation of the state. The number of SSIs increased continuously and has reached to over to 3,12,000 by September 2006. This may be observed from the following table:
Year No. of SSI Units
1960 2,169
1970 15,849
1980 43,742
1990 1,15,384
2000 2,51,088
2005 3,06,646
2006
(up to September) 3,12,782

District Industries Centres in all the districts of the state and the institutions such as Gujarat Industrial Development Corporation (GIDC) and Gujarat State Financial Corporation (GSFC) have been instrumental in accelerating the pace of development of SSIs.On the other hand, Small scale industries have also played an important role in dispersal of industries. Ahmedabad district leads the state with the highest number of SSI units followed by Surat, Rajkot and other districts. Following table presents the percentage share of number of SSI units in major districts.
Report As On 31-03-2013

Districts No. of SSI Units (% Share)
Ahmedabad 26.58
Surat 42.74
Rajkot 7.80
Vadodara 4.76
Valsad 1.94
Mehsana 0.89
Bharuch 2.13
Kheda 0.45
Jamnagar 1.98
Bhavnagar 1.77
Other Districts 8.97
Gujarat 100.00

Development of small scale sector is spread across different industrial sectors. However, the trend when compared with large industries presents a different picture. Textile including hosiery and garments accounts for the largest number of SSI units, followed by other sectors. This can be observed from the following table.SSI Registrations in Gujarat – Group-wise [As on 30/9/06]
S.No. Industry Group No. of SSI Units % Share
1 Textiles 66914 21.39
2 Machinery and parts except electrical 23792 7.61
3 Metal products 23421 7.49
4 Food Products 16467 5.26
5 Chemical & chemical products 15553 4.97
6 Wood products 13498 4.32
7 Rubber & plastic products 11780 3.77
8 Non-metallic mineral products 11345 3.63
9 Basic metal industries 8795 2.81
10 Paper products & printing 8244 2.64
11 Electrical machinery and apparatus 6451 2.06
12 Transport equipments and parts 2944 0.94
13 Leather products 2476 0.79
14 Beverages, tobacco & tobacco products 1455 0.47
15 Others 99647 31.86
Total 312782 100.00
Following the enactment of the MSME Development Act from 2nd October, 2006, registrations of all the MSMEs came within the purview of the Industries Commissionerate. Following table presents the details of the group-wise registrations of MSMEs in Gujarat from 2-10-2006 to 31-3-2013.
MSME Registrations in Gujarat
Sr. No. Group Registrations
from 2-10-2006 to 31-3-2013
Micro Small Medium Total
1. Textiles 49071 5388 184 54643
2. Macninery and parts except electrical 10673 895 14 11582
3. Mining and Quarrying 1250 332 10 1592
4. Food Products 2483 719 37 3239
5. Chemical & chemical Products 3302 782 46 4130
6. Wood Products 1458 141 9 1608
7. Rubber & Plastic Products 2952 685 32 3669
8. Non-metallic mineral Products 2309 700 98 3107
9. Basic Metal Industries 8906 1097 50 10053
10 Paper Product & Printing 2332 395 32 2759
11 Electrical Machinery and Apparatus 2538 267 11 2816
12 Transpoprt equipment and parts 1052 232 2 1286
13 Leather Products 2796 614 14 3424
14 Beverages, Tobacco & Tobacco Products 692 101 1 794
15 Service Activities 14483 548 32 15063
16 Trading Activities 32323 164 2 32489
17 Other 5701 758 73 6532
Total 144321 13818 647 158786

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