Defining MSMEs

As per the latest notification issued in accordance with Micro,Small and Medium Enterprises Development Act, 2006 (27 of 2006) vide S.O. 1702(E) of the Ministry of MSME, Government of India, Dt.: 1.6.2020, the Central Government, notified that the enterprises engaged in the manufacturing of products or engaged in the rendering of services shall be classified based on the composite criteria as follows:

Type of enterprise Investment in Plant & Machinery not exceeding Turnover not exceeding (excludes export)
Micro Rs.1.00 crore Rs.5.00 crore
Small Rs.10.00 crore Rs.50.00 crore
Medium Rs.50.00 crore Rs.250.00 crore

Department of MSME

Industries, irrespective of classification, were, in the past, fostered and taken care of by the Industries Department. Then, realizing the necessity for targeted and specific approach for MSMEs, Small Industries Department was carved out of the Industries department in 1993. Consequent to the enactment of the Micro Small & Medium Enterprises Development Act 2006 by the Government of India, the department was renamed as Micro Small and Medium Enterprises Department (MSME Department) in consonance with the Government of India Policy from 22.02.2008.

The MSME Department deals with policy matters relating to the MSME sector and formulates schemes for the development of the sector. The Commissionerate of Industries & Commerce, the Entrepreneur Development and Innovation Institute (EDII) and the two State Public Sector undertakings viz., Tamilnadu Small Industries Corporation Limited (TANSI) and Tamilnadu Small Industries Development Corporation (TANSIDCO) function under the administrative control of the MSME Department.

Commissionerate of Industries and Commerce - One Stop Service Hub for MSMEs

The Commissionerate of Industries and Commerce has been in existence for over 100 years and is one among the oldest in the state.

The Commissionerate of Industries and Commerce, committed towards providing services required by MSMEs its activities through the General Manager District Industries Centres in the 36 districts and the Regional Joint Director, Guindy, Chennai 32 in case of Chennai District. From inculcating entrepreneurship in the minds of youth through EDP training to international marketing of products and services through Export Guidance, these Centres provide a variety of services to the entrepreneurs and MSMEs, some to mention are as follows:

  • Providing escort services to the entrepreneurs towards identification of viable activities and preparation of project profiles for assistance from financial institutions/banks.
  • Organising and conducting Entrepreneurship and Skilled Development Training Programmes.
  • Facilitating MSMEs in getting various statutory approvals, clearances, licenses and their renewals for starting and operating an enterprise from Government departments through Single Window Clearance Mechanism
  • Facilitating Entrepreneur in filling UAM (Udyog Aadhaar Memorandum).
  • Sanction and disbursement of incentives and subsidies to MSMEs, as per MSME Policy of GoTN.
  • Implementation of credit linked subsidy schemes such as NEEDS, UYEGP and PMEGP
  • To facilitate MSMEs in getting payment of dues from the large industries through the Micro and Small Enterprises Facilitation Councils.
  • Registration of the cottage and handicraft industries.
  • Export Promotion through the Export Promotion Cell in the District Industries Centres.
  • Processing rehabilitation proposals of sick Micro, Small and Medium Enterprises and implementation of the rehabilitation assistance schemes.
  • Implementation and monitoring of the various schemes of Government of India including SFURTI, REMOT under Coir Sector in the State.

Ease of Doing Business & Single Window Portal

Department for Promotion of Industry and Internal Trade (DPIIT) has spearheaded a dynamic national level exercise that to rank all the States/UTs in the country on the reforms undertaken by them on designated parameters. The aim of this exercise is to create conducive business environment by streamlining regulatory structures and creating an investor-friendly business climate by cutting down red tape.

In order to improve the ease of doing business in the State and to create an investor friendly climate for both domestic and global business communities the Government of Tamil Nadu has enacted Business Facilitation Act, 2018. It aims to fulfill the "State's aspiration of being one of the most preferred investment destinations in the country. The Act envisages adequate information availability to the investors thereby enabling them to take informed decisions and to ensure single point receipt of applications for securing clearances that are required to establish or expand an enterprise and for clearances required during normal course of business including renewals in a time-bound manner. Further, the act provides effective grievance redressal mechanism and imposes fine in case of failure of Competent Authorities to act within a time limit and for matters connected therewith or incidental thereto".

Single Window Portal

The portal has been set up as an IT intervention to deliver requisite services to the investors in a time-bound and transparent manner. Enterprises can obtain clearances/approvals from Departments such as Directorate of Town and Country Planning, Tamil Nadu Pollution Control Board, Fire and Rescue services, Directorate of Industrial Safety and Health, Department of Public Health and Preventive Medicine etc.,