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About MSME

Micro, Small and Medium Enterprises (MSME) sector has been recognised as engine of growth all over the world.  Many countries of the world have established a SME Development Agency as the nodal agency to coordinate and oversee all Government interventions in respect of the development of this sector.  In the case of India, also Medium establishment has for the first time been defined in terms of separate Act, governing promotion and development of Micro, Small and Medium Enterprises (MSME) i.e. Micro, Small and Medium Enterprises (MSME) Development Act, 2006 (which has come into force from 02nd Oct, 2006). The Office of Development Commissioner (Micro, Small and Medium Enterprises) functions as the nodal Development Agency under the Ministry of Micro, Small and Medium Enterprises(MSME).

Office of Development Commissioner (SSI) was established in 1954 on the basis of the recommendations of the Ford Foundation.  Over the years, it has seen its role evolve into an agency for advocacy, hand holding and facilitation for the small industries sector.  It has over 70 offices and 21 autonomous bodies under its management.  These autonomous bodies include Tool Rooms, Training Institutions and Project-cum-Process Development Centers.  Office of the Development Commissioner (MSME) provides a wide spectrum of services to the Micro, Small and Medium Industrial sector.  Office of the Development Commissioner (MSME) provides economic information services and advises Government in policy formulation for the promotion and development of MSMEs. The field offices also work as effective links between the Central and the State Governments.

The organization have vast network of 30 MSME-Development Institutes (MSME-DIs), 28 Br. MSME-Development Institutes (Br. MSME-DIs), 4 MSME-Testing Centers (MSME-TCs), 7 MSME-Testing Stations (MSME-TSs), 21 Autonomous bodies which include 10 Tool Rooms (TRs) and Tool Design Institutes (TDI), 4 MSME-Technology Development Center(MSME-TDC), 2 MSME-Technology Development Center-Footwear(MSME-TDC), 1 Electronics Service & Training Centre (ESTC), 1 Institute for Design of Electrical Measuring Instruments (IDEMI) 2 National Level Training Institutes, and 1 Departmental Training Institute and one Production Center.

Micro Small Medium & Enterprises Development Institute, Ahmedabad along with its Branch institutes at Rajkot & Silvassa, providing Techno-Managerial Assistance to MSMEs of Gujarat and Union Territory of  Diu, Daman and Dadra Nagar Haveli. It works equally for the development of entrepreneurship in the state of Gujarat, cluster development, market development for MSMEs, competence building of MSMEs, policy implementation, assisting state government for the development of MSMEs in the state and also assisting associations & chambers of the MSMEs for development of MSMEs.

Micro, Small & Medium Enterprise Development Act 2010

Micro, Small and Medium Enterprises (MSME) Development Act, 2006 (which has come into force from 02nd Oct, 2006) In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.

(b) Service Enterprises:  The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
            The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

Manufacturing Sector
Enterprises  Investment in plant & machinery
Micro Enterprises  Does not exceed twenty five lakh rupees.
Small Enterprises  More than twenty five lakh rupees but does not exceed five crore rupees
Medium Enterprises  More than five crore rupees but does not exceed ten  crore rupees.
Service Sector
Enterprises  Investment in equipments
Micro Enterprises  Does not exceed ten lakh rupees.
Small Enterprises  More than  ten lakh rupees but does not exceed two crore rupees.
Medium Enterprises  More than two crore rupees but does not exceed five core rupees.

As per the  4th Census (2006-07) of MSMEs, the scenario of MSMEs in the country is as under:

Number of MSMEs  26.1 million
Number of Manufacturing Enterprises 7.3 million
Number of Service Enterprises  18.8 million
Number of Women Enterprises 2.1 million (8%)
Number of Rural Enterprises 14.2 million (54.4%)
Employment 59.7 million
Per unit employment 6.24
Per unit fixed investment 33.78 lakh
Per unit original value of Plant & Machinery 9.66 lakh
Per unit gross output 46.13 lakh
Employment per one lakh fixed investment 0.19