ANNUAL REPORT 2018-19

GOVERNMENT OF INDIA MINISTRY OF MSME MSME - DEVELOPMENT INSTITUTE www.msmedichennai.gov.in www.dcmsme.gov.in

ANNUAL REPORT

2018-19

GOVERNMENT OF INDIA MINISTRY OF MSME MSME - DEVELOPMENT INSTITUTE Chennai – 60 0032 www.msmedichennai.gov.in www.dcmsme.gov.in

TABLE OF CONTENT

Chapter. Content Page No No

Performance at a Glance i

Revenue Achievements ii

1 Introduction 1

2 Training Programs 7

3 Consultancy Services 9 Micro Small Enterprises – Cluster Development 4 17 programme

5 National Manufacturing Competiveness Programme 22

6 Public Procurement Policy 26

7 Udyam Samaagam 28

Photo Gallery 31

LIST OF TABLES

Table Title Page No No Geographical coverage of MSME-DI Chennai and Branch 1.1 Institutes 2

1.2 Infrastructural Facilities available at MSME DI Chennai 4

1.3 Registered MSMEs in and Puducherry 5

2.1 Industrial Motivation Campaigns 7

2.2 Entrepreneurship Skill Development Programme 8

3.1 District wise visitors attended 10

Category wise Entrepreneurs assisted by MSME DI 3.2 11 Chennai Details of Revenue Generation by Br. MSME DI 3.3 12 3.4 Details of Training Programmes 12

3.5 Potential Clusters in Aspirational Districts 15 Status of Projects under MSE-CDP Scheme in India and 4.1 17 Tamil Nadu Status of Projects under MSE-CDP Scheme (Common 4.2 18 Facility Centre) in Tamil Nadu List of CFCs Completed under MSE-CDP Scheme in 4.3 18 Tamil Nadu 4.4 MSE-CDP Projects under Implementation in Tamil Nadu 20 List of Projects Recommended under MSE-CDP in Tamil 4.5 21 Nadu 5.1 Details of the LMCS Clusters in Tamil Nadu 22

5.2 List of Units participated in International Trade Fairs 24 Details of Vendor Development Programmes attended by 6.1 27 MSME-DI Officials Details of Udyam Samagams organised in Tamil Nadu & 7.1 Puducherrly 30

PERFORMANCE AT A GLANCE FOR THE YEAR 2018-19

Persons Programmes trained/ S.No. Name of the program conducted Benefited (in (in No.) No.) 1 Udyam Samaagam 4 404 2 Industrial Motivational 7 613 Campaign 3 Sensitization program on IPR 2 154 4 Awareness on GST 1 50 5 No. of job undertaken in - 51 workshop 6 No. of Visitors facilitated - 4674 7 No. of Units supported for - 1524 UAM registration 8 No. of lean cluster in the - 47 state 9 No. of clusters indentified - 10 Under MSE-CDP 10 No. of units supported under - 12 MATU 11 Export Import documentation 4 634 and procedures

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REVENUE FOR THE FINANCIAL YEAR 2018-19

Total Sl. No Activity Revenue (in Rs.) 1. (a) Revenue from Workshop/ Training on CNC 408530 (CAD/CAM ) & Common Facility 2. (b) SDP Fees 0 3. (c) Chemical Lab 0 4. (d) EDP Fees 0 5. (e) MDP Fees 0 6. (f) Udyam Samaagam 254400 7. (g) SVDP Fees 20000 8. (h) ESDP fees 0 9. (i) Hosiery 0 10. (j) Sale of Trainee Products 0 11. (k) Seminar Fees – Bar code 0 12. (l) Capacity Assessment and Consultancy / SION 20000

13. (m) Project Appraisals 0 14. (n) Sick Unit Studies 0 15. (o) In-plant Studies 0 16. (p) Surveys 0 17. (q) Energy Audits 0 18. (r) NSIC Regn. / GSPP 427885 19. (s) Sale of Publications 14500 20. (t) PD Accounts 58750 21. (u) Others 113400 Total 1317465

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CHAPTER – I

INTRODUCTION

Micro, Small and Medium Enterprises – Development Organization, under the Ministry of MSME, Government of India, is an apex body at the Centre that formulates programmes and policies for Micro, Small and Medium Enterprises. The Organization was set up on 6th June 1954. During the last six decades the Organization has worked relentlessly towards converting the idle man power into resourceful entrepreneurs. The policies formulated by the organizations are aimed at creating new generation of entrepreneurs with modern technological innovations.

The Organisation has institutional set up with Head Office at New Delhi headed by Additional Secretary & Development Commissioner, Micro, Small and Medium Enterprises. The Micro, Small and Medium Enterprises – Development Institutes and Branch Institutes are set up at various States and District Head Quarters. At present there are 30 Micro, Small and Medium Enterprises Development Institutes, 28 Branch Institutes attached to main Institutes. To cater to the needs of the testing facilities for the micro, small and medium enterprises, 4 MSME Testing Centres were set up during the year 1975-76. Subsequently, a few MSME Testing Stations depending upon the needs of the places were set up. At present 7 MSME Testing Stations are functioning at different places in the country. Apart from the above, there are 6 Process-cum-Product Development Centres in the fields of Glass, Electronics, Electrical Measuring, Sports Goods, Fragrances & Flavours and Foundries. There are 2 Central Footwear Training Institutes, 10 Tool Rooms and 3 National Level Entrepreneurial Development Institutes.

MSME – Development Institute, Chennai has two branch Institutes at Coimbatore and Tuticorin. Tuticorin branch institute has an attached workshop at Tirunelveli.

The MSME – Development Institute, Chennai and Branch MSME – Development Institutes at Coimbatore and Tuticorin are providing a comprehensive range of facilities and services such as techno-managerial services, training needs, common facility workshop, laboratories, statistical and economic information for the State of Tamil Nadu & Puducherry (UT). MSME - Development Institute, Chennai maintains close liaisons with State

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Government Departments and other agencies involved in the promotional and development activities of the State.

1.1 Geographical coverage of MSME-DI Chennai and Branch Institutes

At present, MSME - Development Institute, Chennai is covering 24 Districts in Tamil Nadu and the Union Territory of Puducherry. Branch Institutes are located at Coimbatore and Tuticorin covering 9 districts of Tamil Nadu State.

Table 1.1 Geographical coverage of MSME-DI Chennai and Branch Institutes

MSME-DI Chennai 1. Ariyalur 13. Sivagangai 2. Tiruvanamalai 14. Tanjavur 3. Cuddalore 15. Tiruvallur 4. Chennai 16. Tiruvarur 5. Dharmapuri 17. Theni 6. Dindigul 18. Trichy 7. Kanchipuram 19. Vilupuram 8. Krishnagiri 20. Virudhunagar 9. 21. Vellore 10. Namakkal 22. Karur 11. Nagapattinam 23. Preambalur 12. Pudukkottai 24. Kallakurichi Branch Institutes Coimbatore Tuticorin 1. The Niligris 6. Tiruneveli 2. Coimbatore 7. Tuticorin 3. 8. Kanyakumari 4. Salem 9. Ramanathapuram 5.

1.2 Role of MSME-DI Chennai

MSME-DI, Chennai, a field level institution of Office of Development Commissioner, Ministry of Micro, Small and Medium Enterprises (DC- MSME), for the State of Tamil Nadu and UT of Puducherry, has been given the following mandate:

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➢ For Aspiring entrepreneurs: Identify, motivate, train, handhold and provide mentoring services.

➢ For Existing entrepreneurs: To provide techno-economic consultancy and facilitation service.

➢ Skill Development: To impart need based skill training through Skill Development Programmes (SDP)

In order to fulfil the mandate and to encourage entrepreneurship, employment and livelihood opportunities for aspiring and existing entrepreneurs across the State, this Institute is offering a wide spectrum of value added services.

S.No Role of MSME-DI Chennai

1. Promotion of Policies and schemes of Ministry of MSME

2. Preparation of District/State Industrial Profile Reports

3. Consultancy and hand holding services

4. Liaison with Reserve Bank of India for Monitoring Credit Flow to MSE Sector

5. Co-ordination with State Government for organizing State Level Advisory Board Meeting.

6. Vendors Development Programmes (State and National)

7. Economic Investigation

8. Revival & Rehabilitation of sick units

9. Industrial Motivational Campaign

10. Two Weeks Entrepreneur Awareness Programme (EAP)

11 Entrepreneurship Skill Development Programme (ESDP)

12. Management Development Programmes (MDP)

13. Other training/awareness programmes such as IPR, Export & Import procedure and documentation.

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1.3 INSTITUTIONAL STRUCTURE

This Institute is headed by The Director, who is also a Member of Board of Directors of various Task Force Committees viz., Tamil Nadu Small Industries Development Corporation (TANSIDCO), State Level Bankers Committee (SLBC), State Level Inter Institutional Committee (SLIIC) of RBI, State Level Advisory Board (SLAB), Unemployed Youth Employment Generation Programme (UYEGP), Prime Minister Employment Generation Programme (PMEGP), New Entrepreneur Entrepreneurship Development Scheme (NEEDS) etc.

The Director is supported by 5 Deputy Directors, 4 Assistant Directors (Grade-I), 14 Assistant Directors (Gr-II), 3 Investigators all in various disciplines such as Electrical, Electronics, Mechanical, Chemical, Food, Glass & Ceramics, Leather, Metallurgy, Hosiery, Statistics, Economics etc. along with nearly 40 Ministerial/Secretarial Staff members.

1.4 INFRASTRUCTURE

MSME-DI is well equipped with adequate infrastructure facilities for carrying out the training/awareness programmes and other vendor development programmes, etc.

Table 1.2 Infrastructural Facilities available at MSME DI Chennai

S.no Particulars Size/Numbers

1 Total Land Area 4.11 acres

2 Building Area 2831 sq. mtrs.

3 Conference Hall 1

4 Auditoriums 8

5 Training Halls 2

6 Workshop sheds 1

7 Canteen 1

8 Library 1 (with approx. 7000 books and 300 periodicals/journals)

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1.5 MSME SECTOR IN TAMIL NADU

Micro, Small and Medium Enterprises (MSMEs) sector plays a crucial role in Indian economy; the sector is highly dynamic and vibrant. The share of MSME Sector in the country’s Gross Value Added (GVA) is approximately 32 per cent. The State is a significant contributor to the Indian economy after Maharashtra. Tamil Nadu ranks third in total numbers of MSME units in India.

Tamil Nadu state has about 50 lakh MSMEs in non-registered unorganised sector. As per Udyog Aadhar registration, the State enrolled 7.7 lakh MSMEs. These MSMEs have a strong presence in engineering, automobile production, auto components manufacturing, agro based, food processing and information & bio technology sector.

The below table illustrates number of Micro Small and Medium Enterprises registered in various districts of Tamil Nadu.

Table 1.3 Registered MSMEs in Tamil Nadu and Puducherry

Sl No. District Name Udyog Aadhaar Micro Small Medium Regd. Tamil Nadu 1 ARIYALUR 1647 1426 217 4 2 CHENNAI 141273 123160 17532 581 3 COIMBATORE 84078 73179 10609 290 4 CUDDALORE 9516 8309 1176 31 5 DHARMAPURI 8881 8138 732 11 6 DINDIGUL 13276 11880 1347 49 7 ERODE 36740 33326 3334 80 8 KANCHIPURAM 55302 48635 6460 207 9 KANYAKUMARI 17125 15027 2061 37 10 KARUR 8707 7398 1286 23 11 KRISHNAGIRI 17254 14020 3136 98 12 MADURAI 43594 39730 3790 74 13 NAGAPATTINAM 4291 3656 627 8 14 NAMAKKAL 19752 16028 3655 69 15 NILGIRISH 1856 1629 221 6 16 PERAMBALUR 1677 1359 318 0 17 PUDUKKOTTAI 6486 5439 1029 18 18 RAMANATHAPURAM 3633 3105 520 8 19 SALEM 50031 46475 3484 72 20 SIVAGANGA 4903 4277 611 15 21 THANJAVUR 9680 8507 1155 18

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22 THENI 6936 6308 619 9 23 THIRUVALLUR 44140 37989 6001 150 24 THIRUVARUR 3459 2917 515 10 25 THOOTHUKUDI 11782 9809 1926 47 26 TIRUCHIRAPALLI 17464 15209 2198 57 27 TIRUNELVELI 18515 16452 2021 42 28 TIRUPPUR 71363 63665 7502 196 29 TIRUVANNAMALAI 8273 7306 947 20 30 VELLORE 21304 18613 2627 64 31 VILLUPURAM 9626 8385 1194 47 32 VIRUDHUNAGAR 20194 18355 1777 62 Total 7,72,758 6,79,728 90,627 2,403 Puducherry 1 PUDUCHERRY( includes 5679 1270 47 6996 PUDUCHERRY,KARAIKAL AND YANAM) Total 5679 1270 47 6996

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CHAPTER-II

TRAINING PROGRAMMES

Training is one of the necessary inputs for the existing as well as prospective entrepreneurs. Training programmes like Entrepreneurship Development, Skill Development and Motivations campaigns are very much essential for entrepreneurs for enhancing the skills in all respects. These programmes are tailor-made for the benefit of entrepreneurs. During the programme, candidates are made aware of various schemes available from Govt. Agencies, Financial and other Institutions. They are trained technically and exposed to important functions of management.

2.1INDUSTRIAL MOTIVATION CAMPAIGNS

Industrial Motivation Campaigns (duration of 1 day or 2 days) are organized to identify and motivate younger generation and educated unemployed youth having potential for setting up MSEs. These Camps are organized at various places in the State. Agencies like Financial Institutions, DICs, KVIC, NSIC, Banks are invited to brief their activities. During the financial year 2018-19, 8 Motivation Campaigns were conducted and a total number of 613 persons participated and benefitted out of these programmes. The details of IMCs conducted are listed below:

Table 2.1 Industrial Motivation Campaigns

S.No Place District No. Participants / Beneficiaries 1 Guindy, Chennai 60 2 Tiruvannamalai town Tiruvannamalai 130 3 Town Tiruchirappalli 94 4 Periyakulam Theni 57 5 Palayamkottai Tirunelveli 80 6 Maraimalai Nagar Kanchipuram 67 7 Pazhaverkadu Tiruvallur 60 8 Peelamedu Coimbatore 65 Total 613

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2.2 ENTREPRENEURSHIP AWARENESS PROGRAMME

Entrepreneurship Awareness Programmes are organized for 2 weeks; these programmes are organized regularly in all the districts of Tamil Nadu to nurture the talent of youth by enlightening them on various aspects of industrial activity required for setting up of enterprises. The main objective behind organizing Entrepreneurship Development Programmes is to create awareness and inculcate the benefits of self-employment ventures. During the training programmes, the candidates will be taught about the selection of product, preparation of project reports, conducting market surveys, elementary book keeping etc. The EAPs cover both entrepreneurship and other management topics.

2.3 ENTREPRENEURSHIP SKILL DEVELOPMENT PROGRAMME Skill development training programmes are organized to upgrade skills of prospective entrepreneurs, existing workforce and also develop skills of new workers and technicians of MSMEs with the basic objective of providing training for their skill up gradation and to equip them with better and improved technological skills for production. During the financial year 2018- 19, 7 programmes were conducted and 177 candidates have been trained in Krishnagiri and Perambalur districts. Table 2.2 Entrepreneurship Skill Development Programme

S.no District No. of Programmes No. of Trained/ Benefited 1 Krishnagiri 3 75 2 Perambalur 4 102 Total 7 177

2.4 MANAGEMENT DEVELOPMENT PROGRAMME

The main objective behind organizing Management Development Programmes is to make awareness the start-ups/ Entrepreneurs on management skills. During the training programmes, the candidates will be taught about the management practice system to improve the decision making capabilities of existing & potential entrepreneurs. Inputs on varied topics of managerial functions are provided to the participants.

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CHAPTER – III

CONSULTANCY SERVICES

The primary objective of the Institute is to provide consultancy services to the existing and prospective entrepreneurs. The existing entrepreneurs are assisted by providing technical consultancy for updating their existing technology. The prospective entrepreneurs are provided with basic information such as Scope for industries, providing project reports, assisting the entrepreneurs in the selection of products, imparting trainings such as Skill Development Programmes, Entrepreneurial Development Programmes, Management Development Programmes and motivating educated unemployed youths through Campaigns.

3.1 INFORMATION FACILITATION COUNTER

The Information Facilitation Counter provides information to the prospective as well as existing entrepreneurs on Project Report, Financial assistance, Registration formalities, Domestic /International Trade Fair, Information on training programmes, Information on NMCP and other MSME schemes. During the financial year 2018-19, 4674 prospective/existing entrepreneurs visited this office and collected information on enterprises development and promotion. The below chart depicts the information of visitors attended by MSME-DI Chennai during the financial year 2018-19.

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Table 3.1 District wise visitors attended

Sl. No DISTRICT GENDER TOTAL FEMALE MALE 1 CHENNAI 417 1193 1610 2 KANCHIPURAM 176 619 795 3 THIRUVALLUR 62 227 289 4 CUDDALORE 19 11 30 5 VELLORE 5 28 33 6 VILUPPURAM 5 27 32 7 OTHER DISTRICTS 625 1260 1885 TOTAL 1309 3365 4674

It is observed from the Table 3.1 that more than 4500 entrepreneurs have been assisted by providing information on various stages of their enterprises development. Among the total visitors/entrepreneurs, around 16 percent are belonging to SC category.

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Table 3.2 Category wise Entrepreneurs assisted by MSME DI Chennai

SL.NO GENDER CATEGORY OF ENTREPRENEUR TOTAL

NEW EXISTING OTHERS

1 Male 1302 910 40 2252

2 Female 419 272 16 707

TOTAL 1721 1182 56 2959

Table 3.2 shows that MSME DI Chennai main office assisted for about 3000 visitors and among the total visitors 1721 persons are reported to be new entrepreneurs and 1182 persons are found be existing entrepreneurs visited this office for guidance to expanding their units and marketing support.

The information facility centre also assists visitors/ start-up/ existing entrepreneurs in registering Udyog Aadhaar Memorandum (MSMEs Registration) at free of cost. For the financial year 2018-19, 1524 Udyog Aadhaar Memorandums have been registered at MSME-DI Chennai. The below diagrammatic representation describes 431 female and 1093 male start-up/entrepreneurs were supported to register Udyog Aadhaar Memorandum.

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3.2 WORKSHOP & LABORATORY FACILITIES MSME Development Institute, Coimbatore is equipped with a Common Facility Workshop. The workshop provides facilities to the entrepreneurs in Testing of pumps and motors. Revenue details for Br.MSME-DI Coimbatore, is as follows:

Table 3.3 Details of Revenue Generation by Br. MSME DI Coimbatore

S.No Description Units (in.Rs) 1 Revenue Generated 408530

2 No. of Units Benefited 16

3 No. of Job works taken 51

3.3 CONSULTANCY PROVIDED BY OTHER DIVISIONS

3.3.1 Industrial Management & Training (IMT)

The division of IMT Co-ordinates with all officers for allotments of training programs such as Entrepreneurship Awareness Programmes, Motivation Campaigns, Management Development Programmes and Entrepreneurship Skill Development Programme for the benefit of prospective and existing entrepreneurs across Tamil Nadu and Puducherry. The allotments and achievements of this financial year (2018-19) are as follows:

Table 3.4 Details of Training Programmes

S.no Programs Allotted and No. completed Participated/ beneficiaries 1 Industrial Motivation 8 613 Campaigns 2 Entrepreneurship Skill 7 177 Development Programmes Total 15 790

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3.3.2 Economic Investigation (EI)

a. State Level Advisory Board Meeting The main objective of the meeting is a) to ensure co-ordination between different agencies responsible for the development of the Micro, Small and Medium Enterprises in the respective States and b) to advise on all issues concerning the Micro, Small and Medium sector, specially State related matters, including functioning of DICs, MSME-DIs and various promotional and autonomous bodies under the control of MSME-Development Organization, functioning of State KVIC, implementation of various centre sponsored schemes such as PMEGP, NPRI, Monitoring of credit flow etc. Spade work for SLAB meeting is initiated to organize in the Union Territory of Pondicherry.

b. State Level Bankers Committee Meeting State Level Banker’s Committee (SLBC) Meeting came into existence under Lead Bank Scheme as per RBI guidelines & it’s an inter- institutional forum at State level ensuring coordination between Government & Banking sector on matters pertaining to overall banking development. It facilitates effective implementation of development programmes in the areas of poverty alleviation, employment to un-employed, providing banking outlet in un-banked areas, training, financial literacy etc. In Tamil Nadu Indian Overseas Bank is the convenor of SLBC & the meeting is conducted on Quarterly basis. An officer from EI division attended 4 SLBC meetings & raised the dismal performance of “Stand Up India” Scheme to the SLBC Convenor, besides difficulties faced by the existing entrepreneurs & aspiring entrepreneurs for MSME loan both for starting & expansion of the units. The role of SLBC is reinforced by the High Level Committee constituted by RBI to review Lead Bank Scheme.

c. Inter Media Publicity Coordination Committee Meeting The objective of the meeting is to provide a platform to all the stakeholders including media units, implementing and executing agencies as well as State & Central Government departments to underscore their activities. During the meeting the forth coming events of this institute is conveyed to the IMPCC chairman to

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propagate through Print & Visual media for wide coverage of the event, besides various issues related to functioning of different media units in the State including the Directorate of Information were discussed. In the financial year this office attended 6 meetings.

d. Framework Meeting for Revival & Rehabilitation of MSMEs

The objective of the meeting is to facilitate MSMEs to seek respite & dispensation to triumph over prior NPA financial difficulties & to grant even handed access to MSMEs, which have availed credit amenities from the bank & to formulate Corrective Action Plan(cap) to bail out from the stress. The corrective action plan includes capitalizing the overdue amount, converting the existing Term Loan to Working Capital Term Loam with maximum EMI of 60 months inclusive of 6 moratorium period. An officer from EI division attended the aforesaid meeting as a representative from MSME-DI, Chennai & the committee organized by Canara Bank, Chennai Circle revived 44 MSMEs stressed accounts during the financial year 2018-19

e. RTI Act:-

The information under RTI Act was co-ordinated by CPIO:

No. of applications received : 30 nos

No. of application for which reply given : 30 nos

No. of application yet to be addressed : Nil f. Aspirational District Development:

As per the report submitted by NITI Aayog, two districts in Tamil Nadu State namely Virudhunagar and Ramanathapuram have been identified as aspirational districts. Ministry of Micro, Small and Medium Enterprises is entrusted with the task of development of MSMEs in the aspirational districts. Accordingly, the two districts viz. Virudhunagar and Ramanathapuram were taken up by MSME DI Chennai for preparation of Action Plan for development of MSMEs in consultation with MSME TC, KVIC, NSIC and State Government departments. Economic Investigation Division has conducted two

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meetings at district level under the chairmanship the district collector in the presence of Shri. Bandla Srinivas, Joint Secretary, the Nodal officer from M/o MSME for aspirational districts in Tamil Nadu. The reports for development of MSMEs and clusters in the two aspirational districts were prepared in consultation with other stakeholders from M/o MSME and State Governments and submitted to M/o MSME. g. MSE-Cluster Development Programme

MSME-DI Chennai has prepared action plan for development of aspirational districts in Tamil Nadu viz., Virudhunagar and Ramanathapuram. MSME –DI has also identified Clusters in the aspirational districts for development under MSE-CDP.

Table 3.5 Potential Clusters in Aspirational Districts

S.No District Cluster 1 Ramamathapuram Handloom Cluster, Paramakudi

2 Ramamathapuram Jewellery Cluster, Paramakudi

3 Ramamathapuram Palm and Palm Products, Mandapam

4 Ramamathapuram Sea Shells Cluster, Rameswaram

5 Virudhunagar Lime Based Clusters in Rajapalayam (Lime Powder) 6 Virudhunagar Readymade Garment in Thalavipuram (Peticoat & Braziers) 7 Virudhunagar Brick Cluster in Wathrap (Country Bricks) 8 Virudhunagar Surgical Cotton Guaze and Bandage Cloth Clusters in Chathrappatti

9 Virudhunagar Honey Processing and Herbal Extraction Cluster in Suduragiri Hills

10 Virudhunagar Lock Making Clusters in Rajapalayam

Among the 10 identified clusters in aspirational districts, Palm Sugar/gur cluster has been taken up by MSME-DI Chennai and prepared a Diagnostic Study Report (DSR) and submitted to M/o

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MSME. Palm Sugar cluster will be supported under MSE-Cluster Development Programme.

3.4 SENET Activities

The official website of MSME DI Chennai – http://www.msmedi-chennai.gov.in is maintained by SENET Division. This is hosted on NIC server for better security and accountability with Govt. of India, Min. of Science & Technology, which is mandatory of all Govt. of India websites. Presently, it is being revamped for better transparency. The content of the website is constantly modified and updated suitably at regular intervals. It also provides hyper linked access to many other important websites like O/o DC(MSME), CGFT-MSE Mumbai, Reputed associations etc. The main activity of the SENET are maintenance of IT infrastructure in the office, Maintaining Website, Dissemination of information to prospective entrepreneurs and existing enterprises.

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Chapter- IV

MICRO AND SMALL ENETERISES CLUSTER DEVELOPMENT PROGRAMMME (MSE-CDP)

The Ministry of Micro, Small and Medium Enterprises (MSME) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. The objectives and scope of the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) are

(i) To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.

(ii) To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc.

(iii) To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs with GoI grant restricted to 60% of the cost of project of Rs 10.00 crore. GoI grant will be 80% for projects in NE & Hill States, industrial areas/ estates with more than 50% (a)micro (b) women owned (c) SC/ST units.

(iv) To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc) with GoI grant restricted to 70% of the cost of project of maximum Rs 15.00 crore. GoI grant will be 90% for CFCs in NE & Hill States, Clusters with more than 50% (a) micro/ village (b) women owned (c) SC/ST units.

Table 4.1 Status of Projects under MSE-CDP Scheme in India and Tamil Nadu as on 31st March 2019

Approved by GOI Under Completed Total Implementation India 115 47 68 115 Tamil Nadu 30 08 22 30

Tamil Nadu is one of the successful States in implementing the MSE- CDP scheme for the benefit of MSE units under group initiatives. This Institute, with the active support of Government of Tamil Nadu was able to achieve success in implementation of 30 clusters in the State of Tamil Nadu under the MSE-CDP Scheme. 17

Tamil Nadu Small Industries Development Corporation (TANSIDCO) is the implementing and fund routing agency for all the clusters under MSE-CDP in the State of Tamil Nadu. Common Facility Centre (CFC) for 22 Clusters has already been completed successfully with a total cost of Rs. 121.27 cr. out of which GoI contribution is Rs.83.32 cr. Another 8 CFCs are in various stages of completion with a total cost of Rs.41.99 cr out of which GoI contribution is Rs. 28.19 cr.

Table 4.2 Status of Projects under MSE-CDP Scheme (Common Facility Centre) in Tamil Nadu As on 31st March 2019 (Rupees in Lakhs) Sl. Status Nos. Project Cost Govt. of India Govt. of No. Contribution Tamil Nadu Contribution 1 GOI sanctioned and 22 12127.55 8331.65 922.44 completed 2 GOI sanctioned and 8 4199.19 2819.64 376.98 under implementation/ ongoing 3 Projects identified 10 14595.13 10444.66 1017.53 and recommended by GOTN to Govt. of India TOTAL 40 30921.87 21595.95 2316.95

Table 4.3 List of CFCs Completed under MSE-CDP Scheme in Tamil Nadu As on 31st March, 2019 (Rupees in Lakhs)

SL. Cluster name District Project SPV Bank Grant Received No. cost of share term from CFC loan

GOI GOTN 1 Sago & Starch, Salem 92.06 18.75 0.00 73.31 0.00 Salem 2 Safety Vellore 156.00 25.00 34.73 76.99 9.65 Matches, Gudiyatham 3 Safety Virudhunagar 156.00 25.00 34.73 76.99 9.65 Matches, Virudhunagar 4 Safety Virudhunagar 156.00 25.00 34.73 76.99 9.65 Matches, Srivilliputhur. 5 Safety Virudhunagar 156.00 25.00 34.73 76.99 9.65 Matches, Sattur

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6 Safety Thoothukudi 156.00 25.00 34.73 76.99 9.65 Matches, Kazhugumalai 7 Safety Thoothukudi 156.00 25.00 34.73 76.99 9.65 Matches, Kovilpatti 8 Printing, Krishnagiri 1172.52 108.38 0.00 936.80 90.00 Krishnagiri 9 Auto Krishnagiri 690.94 105.3 75.00 433.26 70.75 Components, Hosur 10 Wet Grinder Coimbatore 288.20 172.68 0.00 89.10 16.52 Coimbatore 11 Ceramic Cuddalore 82.67 18.45 10.79 22.00 9.57 Virudhachalam 12 Rice Mill, Thirunelveli 690.58 145.5 10.00 466.03 69.05 Keelapavoor 13 Coir, Sivaganga 658.9 93.00 0 400.00 65.89 Singampunari, Sivaganga 14 Rice Mill, Tirunelveli 787.00 83.75 74.09 550.25 78.91 Alangulam 15 Plastic Cluster Kancheepuram 1485.12 258.16 100.00 1026.96 100.00 16 Engineering Sivaganga 498.89 53.75 48.00 368.89 23.34 Cluster, Paramakudi 17 Printing Virudhunagar 1314.75 180.28 276.00 767.80 90.66 Cluster, Sivakasi 18 Garment Virudhunagar 104.24 20.60 0.00 62.48 9.36 Cluster (Women),

Dhalavaipuram 19 Steel Product Salem 1632.74 255.03 0.00 1277.71 100 Fabrication Cluster, Salem. 20 Engineering Thiruvallur 1124.42 114.65 150.00 724.800 54.44 Cluster, Ambattur 21 Gold Jewellery Madurai 356.46 39.92 31.60 255.80 29.14 Cluster, Madurai 22 Rice Mill Thanjavur 212.06 21.40 50.00 90.115 40.43 Cluster, Thanjavur Total 12127.55 1839.60 1033.86 8331.65 922.44

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Table 4.4 MSE-CDP Projects under Implementation in Tamil Nadu As on 31st March, 2019 (Rupees in Lakhs) SL. Cluster name Project GOI State SPV Bank Grant Released No cost of Contb Govt. contbn term till now . CFC n Contbn . loan . Rs. In Lakhs GOI GOTN 1 Power and Auto 1333.9 886.45 98.78 162.18 186.5 797.80 98.78 Loom Cluster, 6 5 5 Salem. 2 Safety Match 346.89 204.64 36.00 42.50 63.75 81.856 36.00 Cluster, O.Mettupatty

3 Stainless Steel 126.30 98.83 7.90 19.57 0 88.947 7.9 Utensils Cluster, Kumbakonam

4 Coir Cluster, 592.51 404.44 48.65 60.00 79.42 283.10 48.65 Erode

5 Gate & Grills 284.87 197.93 29.69 57.25 0.00 178.13 29.69 Cluster, Thirumullaivoya l 6 Gold Jewellery 360.30 288.24 36.03 36.03 0.00 201.76 36.03 Cluster, Trichy 8 0 7 Engineering 927.08 616.39 97.21 109.35 104.1 554.75 97.21 Cluster, 3 Ranipet, Vellore.

8 Brick 227.28 122.72 22.72 29.55 52.28 80.00 14.07 Tirunelveli

Total 4199.19 2819.6 376.98 516.43 486.13 2266.36 368.33

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Table 4.5 List of Projects Recommended under MSE-CDP in Tamil Nadu As on 31st March, 2019 Sl.No. Name Total GOI State Govt. SPV Bank Project Contribution Contribution Share Loan Cost

Final approval from GOI (Rupees in Lakhs)

1 Textile Knitting 1535.93 835.93 300.00 400.00 0.00 cluster, Tiruppur, Tiruppur Dt.

Total 1535.93 835.93 300.00 400.00 0.00

In-Principle approval from GOI (Rupees in Lakhs)

1 Design Cluster, 1479.64 1035.74 100.00 343.90 0.00 Tiruppur, Tiruppur Dt.

2 Lorry Body 1661.99 1377.73 98.53 185.73 0.00 Building, Namakkal, Namakkal Dt. 3 Home Furnishing 1507.20 1229.69 100.00 177.51 0.00 Cluster,Karur,Karur Dt. 4 Furniture cluster, 1446.33 1156.85 100.00 189.48 0.00 Salem, Salem Dt. 5 Printing Cluster, 1350.23 1124.60 90.60 135.03 0.00 Salem, Salem Dt. 6 Power Loom Cluster 1762.23 1250.00 100.00 412.23 0.00 Palladam, Thiruppur Dt, 7 Auto Loom and 2010.66 1350.00 100.00 560.66 0.00 Power Loom Cluster, Rasipuram, Namakkal Dt. 8 Apparel cluster, 1556.94 856.94 300.00 400.00 0.00 Tiruppur,Tiruppur Dt. 9 Sweater cluster 283.98 227.18 28.40 5.00 23.40 (Women), Coonor, Nilgiris Dt.

Total 13059.20 9608.73 1017.53 2409.54 23.40

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Chapter - V

NATIONAL MANUFACTURING COMPETIVENESS PROGRAMME SCHEMES

5.1 Lean Manufacturing Competiveness Scheme

The Lean Manufacturing Scheme is basically a business initiative to reduce “waste” in manufacturing process. The objective of the Scheme is to enhance the manufacturing competitiveness of MSMEs through application of various Lean Manufacturing Techniques (e.g. Total Productive Maintenance (TPM), 5S, Visual control, Standard Operation Procedures, Just in Time, Kanban System, Cellular Layout, Poka Yoke, TPM, etc.). National Productivity Council (NPC) and Quality Council of India (QCI) have been selected as National Monitoring and Implementing Units (NMIUs) for the up-scaled scheme. Awareness programmes and workshops are being organized in order to create awareness among the entrepreneurs and further they are motivated to form mini cluster comprising of 6 to 10 units (ideally 10 units) for availing the scheme. Lean Manufacturing (LM) consultants are deployed to help the Special Purpose Vehicle (SPV)/Distinct Product Group (DPG) for LM Interventions for a period of 18 months. 80% of the cost of hiring the lean manufacturing consultant (LMC) is reimbursed through NMIUs to SPVs/Units and 20% of the cost is borne by the SPVs/units. Around 47 LMCS Cluster was formed through QCI and NPC and as of now in Tamil Nadu. Out which 10 are completed and 37 clusters are in progress/implemented and the details of the LMCS clusters are given below:

Table 5.1 Details of the LMCS Clusters in Tamil Nadu

Districts Total Lean Under Progress Completed Clusters Chennai 6 4 2 Coimbatore 10 8 2 Erode 1 1 0 Hosur 9 8 1 Karur 2 2 0 Namakkal 2 2 0 Tiruppur 16 12 4 Trichy 1 0 1 Total 47 37 10

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5.2 Bar Coding Scheme

The aim of the scheme is to promote MSEs marketing at international level through bar coding application. The scheme provides for reimbursement of up to 75% of cost during the application (one time) and 75 % of the recurring fee for first 3 years. During the financial year 2018-19, 2 units are supported and Rs. 62,446 disbursed to the units under this scheme.

5.3 TEQUP SCHEME: Efforts were made to mobilize the applications for product certifications and 90 applications received and awaited for funds.

5.4 Intellectual Property Rights (IPR):

Intellectual Property is something produced using human intellect which has commercial value. Protecting the value of the product or service is most important in these competitive markets. Especially in the world of Micro Small entrepreneurs, they are the one man army looking after, right from purchase of raw material, production, marketing, working towards receiving the payment. MSEs are so busy on their daily routine looking after production, debtors and receivables, to expand their market these SMEs must be creative; otherwise these units will slowly shutdown. To provoke and make them aware about creativity and protecting them, MSME-DI Chennai organized two awareness programmes in Chennai and Tiruppur.

A total of 154 participants attended and the programme informed about the procedures on applying Patents, Copy Rights, Design, Geographical Indications, Prior art search, schemes of IPR etc.

5.5 International Trade Fairs

To give encouragement to micro, small and medium enterprises in marketing their products in the International Markets, O/o DC-MSME participates in about 10 or more no of trade fairs every year. The MSME Development Institutes invite applications from suitable micro, small units under this scheme. The scheme supports a reimbursement of 100% air travel on an economy class for 1 person per unit and limited to the expenses of a total 1.25 lakhs. During this financial year 2018-19, 12 units got benefited, the following below are the details of units participated in various exhibition.

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Table 5.2 List of Units participated in International Trade Fairs S.No Name of the unit Name of Date of Amount the fair the Fair Disbursed 1. Metro Clothing Company India March 20- 1,49,822 2/499-B MPS Muthu Nagar Sourcing 22, 2018 1st Street,Manal kadu, fair, St. Veerapandi PO, Tirupur – Petersburg 641604 (Russia) 2. Carloo Textiles India March 20- 1,77,880 S F No. 325/2B1 Sourcing 22, 2018 Vigneshwara fair, St. Nagar,Nochipalayam, Petersburg Tirupur – 641605 (Russia) 3. Kumar Creation India March 20- 1,77,880 S F No. 321/2 Sri Sourcing 22, 2018 Muthusamy Goundar fair, St. Industrial complex, Pariyur Petersburg amman Nagar, (Russia) Nochipalayam, Tirupur 641605 4. Fashion Encyclopedia India March 20- 1,77,880 Imperial Bhavan, No.7 Sourcing 22, 2018 vinayagapuram 3rd st. fair, St. Rayapuram extn. Tirupur – Petersburg 641601 (Russia) 5. Naveena Apparels India March 20- 1,77,880 343 Sathiya Nagar, Opp. Sourcing 22, 2018 Lakshmi Theatre, fair, St. Samundipuram, Petersburg Gandhinagar PO, Tirupur (Russia) 641603 6. S V Knits India March 20- 1,77,880 10/630 City Tower Building, Sourcing 22, 2018 Kunnankul palayam piruvu, fair, St. Palladam Road, Tirupur Petersburg 641605 (Russia) 7. Inter Knit Fashion India March 20- 1,74,250 SF 238 K Chettipalayam Sourcing 22, 2018 Dharapuram Road fair, St. Tiruppur - 641608 Petersburg (Russia) 8. Majestic Exports India March 20- 1,77,880 9 & 10 Malligai Nagar, Sourcing 22, 2018 College Road,Tiruppur – 2 fair, St. Petersburg (Russia) 09. Five Elements International India March 20- 1,77,880 13 Padmavathipuram, Sourcing 22, 2018

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Gandhi Nagar Po, Tiruppur - fair, St. 641603 Petersburg (Russia) 10. Sri Ramkarthic Polymers India March 20- 1,31,912 (Pvt). Ltd., Sourcing 22, 2018 D.No. 2/1-1 & 2, SF No: fair, St. 237/1B & 2A, Petersburg Kottaipalayam, Pachayat, (Russia) Coimbatore – 641 110 11. Best Forgings India Pvt. Ltd. India March 20- 1,75,581 15A Private Industrial Sourcing 22, 2018 Estate, Sidco post, fair, St. Coimbatore 641021 Petersburg (Russia) 12. M/s Brothers, 22nd February 1,28,450 21/29, Alagumenaal Chinese 05-11, Complex, College Road, New Year 2018 Karaikudi, Sivagangai- Shopping 630002 Festival in Chengudu City, China Total 20,05,175

5.6 Business Incubators

The Aim of the scheme is to promote emerging technological and knowledge based innovative ventures that seek the nurturing of ideas from professionals, to promote and support untapped creativity of individual innovators and also to assist Individual innovators to become technology based entrepreneurs and to promote networking and forging of linkages with other constituents of the innovation chain for commercialization of their developments. The Scheme support each incubates on an average of 6.25 lakhs for a new business. For this financial year 2018-19, 33 incubation applications (33 colleges) were applied for the state of Tamil Nadu.

5.7 ZED Scheme The scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc.

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Chapter VI

PUBLIC PROCUREMENT POLICY

Government of India has introduced Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 which was notified under MSMED Act 2006, and effective from 1st April, 2012.Under the Policy, every Central Government Ministries, Departments and Public Sector Undertakings shall procure minimum of 20 per cent of their total annual value of goods or services from Micro and Small Enterprises which became mandatory from 1st April 2015.

As per the Public Procurement Policy for MSE Order, 2012, MSEs having registration with District Industries Centre(DIC) or Khadi and Village Industries Commission(KVIC) or Khadi Village and Industries Board (KVIB) or Coir Board or National Small Industries Commission (NSIC) or Directorate of Handicrafts and Handlooms or any other body specified by Ministry of MSME are provided certain benefits under the said Policy.

For ease of registration of Micro, Small and Medium Enterprises (MSMEs), Ministry of MSME has started Udyog Aadhar Memorandum which is an online registration system (free of cost) w.e.f. 18th September, 2015 and all Micro & Small Enterprises (MSEs) who are having Udyog Aadhaar Memorandum should also be provided all the benefits available for MSEs under the Public Procurement Policy for Micro and Small Enterprises(MSEs),Order 2012.

In order to create awareness and also to have direct interaction with buyers and sellers, Vendor Development Programmes are arranged at the National as well as State level by the Office of DC-MSME through its various field offices.

For the Financial year 2018-19, MSME-DI, Chennai has disseminated Public procurement policy Guidelines at numerous occasions such as Udhyam Samaagams.

Officials from MSME-DI attended in about 10 vendor development programmes organized by PSUs across the State of Tamil Nadu. The details are given below.

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Table 6.1 Details of Vendor Development Programmes attended by MSME-DI Officials

S.no Name of the Name of the Place No. of Unit Meeting PSUs / GOI participated organized 1 Vendors meets Indian Oil Chennai 90 corporation ltd 2 Awareness on PPP Balmer Lawrie Chennai 3 3 Special vendors Indian Oil Chennai 110 meets corporation ltd 4 Awareness on PPP Indian Oil Chennai 15 corporation ltd 6 Special vendors Integral Coach Chennai 94 Development Factory Programme 7 Special vendor NSIC Coimbatore 150 Development programme 8 Special vendor NSIC (SC/ST Kanchipuram 61 Development hub) programme 9 Special vendor NSIC (SC/ST Chennai 61 Development Hub) programme 10 Vendor Development Rail wheel Trichy 50 Meet Golden rock 11 Udhyam Samaagam MSME-DI Chennai 210 Chennai 12 Udhyam Samaagam Br.MSME-DI Coimbatore 150 Coimbatore 13 Udhyam Samaagam MSME-DI Puducherry 110 Chennai 14 Udhyam Samaagam MSME-DI Madurai 130 Chennai

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Chapter- VII

UDYAM SAMAAGAM

Udyam Samaagam is a two days conclave for entrepreneurs focussed on disseminating up to date information on technical knowhow, enhance their marketing avenues, export, import, B2B platform with public sector units, financial support awareness through different financial supporting agencies, awareness about state and Central Government Schemes/ polices and so on for the overall development of SMEs to become competitive in the market. In the state of Tamil Nadu, MSME- Development institute Chennai, organized four Udyam Samaagam. These Udyam Samaagams were focussed on industries such as Textiles, Agriculture and Food Processing, General Engineering, Plastic & Services industries. The two days event covered the following themes to encourage SMEs for the possible new/ existing avenues for the development:-

A. Challenges, Opportunities & Way forward for MSME enterprises in General Engineering & Auto Components Manufacturing Sector

B. Textile & General Engineering Industry- Present Scenario, challenges & opportunities

C. Agri-Entrepreneurship- Challenges, Opportunities & Way forward for Agro & Village Enterprises.

D. Challenges, Opportunities & Way forward for MSME enterprises in Plastic, General Engineering & Services Sector.

Under these four themes following were organized:

• Public Procurement Policy & Vendor Registration Procedures of PSUs. • Role of Technology & Innovation with focus on Artificial Intelligence & IoT • Textile Industry in Tamil Nadu- Present scenario, Challenges & Opportunities • Product Innovation & Supply chain management • Challenges and Opportunities in Agro-based & Food Processing Industries • Agri-Entrepreneurship Development and New Technologies from Lab to Land • Agri Business- Key to development of Aspirational Districts

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• MSE- Cluster Development Program: Way to Agri & Rural Enterprises Development • Tourism & Hospitality Industry- Present Scenario & untapped potential. • Challenges & Opportunities in Polymer, Plastic Industries • General Engineering Industries: Present issues & opportunities • Automobile Sector Quality Control & Product Certification • Automobile Design, Technology Transfer & Energy Saving • EXIM Policy Seminar

Further in all the four Udyam Samaagam, exhibition was organized on the sidelines of the 2 days Udyam Sangam Conclave to display of raw materials & final goods produced by them and ensure interaction between various players in the Industry to enable marketing support to MSMEs. The Exhibition includes, exhibiting of products and services by MSMEs, showcase of commercially viable technologies by International & National Institutions, exhibiting of Innovative machineries, information dissemination counters by offices of Ministry of MSME (NSIC, KVIC, Testing Centres) & Govt. of Tamil Nadu, display of Success stories by MSMEs and stalls by SLBC and Banks for information dissemination on GoI schemes like MUDRA, Stand Up India & Bank specific loan packages for MSMEs.

The programme covered Public sector units such as Southern Railways, Ordnance Clothing Factory, Integral Coach Factory, Indira Gandhi Centre for Atomic Research, Bureau of Indian Standards, Bharat Heavy Electricals Limited, Bharatiya Nabhikiya Vidyut Nigam Ltd, The Steel Authority of India Ltd, National Small Industries Corporation Limited, PCRA, Central Institute of Tool Design, Neyveli Lignite Corporation Limited, Bharath Petroleum Corporation Ltd and Madras Atomic Power Station etc participated and interacted with SMEs and start-ups on how to register as vendor with them and also presented their requirement to entrepreneurs.

In total 404 units exhibited their products and almost 8000 visitors attended the 2 days event. The following table shows the Udyam Samaagans organized in various district.

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Table 7.1 Details of Udyam Samagams organised in Tamil Nadu & Puducherrly Udyam Samaagam organized in Tamil Nadu 2018-19

S.no District No . of units No. Of visitors exhibited (approx)

1 Chennai 120 3000

2 Madurai 120 2000

3 Coimbatore 84 2000

4 Puducherry 80 1000

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PHOTO GALLERY

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UDYAM SAMAAGAM AT CHENNAI 4th and 5th March 2019

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UDYAM SAMAAGAM AT COIMBATORE 6th and 7th March 2019

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UDYAM SAMAAGAM AT PUDHUCHERRY 13th and 14th March 2019

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UDYAM SAMAAGAM AT MADURAI 6th and 7th March 2019

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OTHER SIGNIFICANT PROGRAMMES ORGANIZED BY MSME-DI CHENNAI IN 2018-19

Awareness Programme on Intellectual Industrial Motivational Campaign

property Rights

Swachh Bharat Rastriya Ekatha Divas

Industrial Motivational Campaign Swachh Bharat Campaign at Chennai

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