Ministry of Micro, Small and Medium Enterprises

Government of India

Thanjavur District Industrial Profile

2020-21

Prepared by

MSME Development Institute - Chennai

Office of the Development Commissioner
Ministry of Micro Small and Medium Enterprises
Government of India
 INDEX

CHAPTER CONTENT PAGE NO.

1 DISTRICT AT A GLANCE 4
2 INTRODUCTION 10
3 AVAILABLITY OF RESOURCES 16
4 INFRASTRUCTURE FACILITY EXISTING IN 23
THANJAVUR

5 INDUSTRIAL SCENARIO AND MSMEs AT 25

THANJAVUR

6 MICRO SMALL ENTERPRISES- CLUSTER 33

DEVELOPMENT PROGRAMME

7 SWOT ANALYISIS FOR ENTERPRISES 36

DEVELOPMENT

8 INSTITUTIONAL SUPPORT FOR MSMEs 37

9 STEPS TO SET UP ENTERPRISES 44
10 IMPORTANT SCHEMES AND ITS PERFORMANCE 59
11 ADDITIONAL INFORMATION
ANNEXURE- ADDRESSESS OF CENTRAL AND STATE GOVT 67
I AUTHORITIES

ANNEXURE- IMPORTANT CONTACTS IN THANJAVUR 71

II

2
DISTRICT MAP - THANJAVUR DISTRICT

3
 CHAPTER-I

THANJAVUR DISTRICT AT A GLANCE

1. PHYSICAL & ADMINISTRATIVE FEATURES

Total Geographical Area (Sq.km) 3397

Division Taluks
Thanjavur 1 Thanjavur
2 Orathanadu
3 Thiruvaiyaru
4 Budalur
Kumbakonam 5 Kumbakonam
6 Papanasam
7
Thiruvidaimaruthur
Pattukottai 8 Pattukottai
9 Peravurani
Firkas 50
Revenue Villages 906

2. SOIL & CLIMATE

Agro-climatic Zone Humid Tropical climate, Zone XI

Climate Hot & Humid
Soil Type Mainly alluvial

3. LAND UTILISATION [Ha] - (DSH - 2013-14)

Total Area Reported 339657

Forest Land 3390
Area Not Available for Cultivation 83879
Permanent Pasture and Grazing Land 1218
Land under Miscellaneous Tree Crops 5337
Cultivable Wasteland 12097
Current Fallow 17943
Other Fallow 28458
Net Sown Area 187335
Total or Gross Cropped Area 267747
Area Cultivated More than Once 80412
Cropping Inensity [GCA/NSA] 143

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4. RAINFALL & GROUND WATER (DSH - 2013-14)
Rainfall [in Normal Actual 2011-12 2012-13 2013-14
mm] 1013 874 757 756
Variation from -13.7% -25.3% -25.4%
Normal
Availability Net Net Balance
of Ground annual annual
Water [Ham] recharge draft
73605 52788 20817

5. DISTRIBUTION OF LAND HOLDING (DSH - 2013-14)

Classification of Holding Area
Holding Nos. % to Ha. % to Total
Total
<= 1 Ha 233064 80 82680 39
>1 to <=2 Ha 39158 13 54965 26
>2 Ha 20434 7 72205 34
Total 292656 100 209850 100

6. WORKERS PROFILE [in '000]

Cultivators 145
Of the above, Small/Marginal Farmers 128
Agricultural Labourers 411
Workers engaged in Household Industries 38
Workers engaged in Allied Agro-activities 147
Other workers 303

7. DEMOGRAPHIC PROFILE [in '000]

Category Total Male Female Rural Urban

Population 2406 1182 1224 1555 851

Scheduled Caste 455 226 229 n.a n.a

Scheduled Tribe 4 2 2 n.a n.a

Literate 1791 944 847 1100 691

BPL 592 295 297 414 178

5
8. HOUSEHOLDS [in '000]

Total Households 605

Rural Households 391
BPL Households n.a.

9. HOUSEHOLD AMENITIES [Nos. in '000 Households]

Having brick/stone/concrete 199 Having electricity 555

houses supply
Having source of drinking 583 Having 283
water independent
toilets
Having access to banking 313 Having radio/tv 522
services sets

10. VILLAGE-LEVEL INFRASTRUCTURE [Nos]

Villages Electrified 904

Villages having Agriculture Power Supply 904
Villages having Post Offices 316
Villages having Banking Facilities n.a
Villages having Primary Schools 904
Villages having Primary Health Centres 58
Villages having Potable Water Supply n.a
Villages connected with Paved Approach Roads 904

11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos]

Anganwadis n.a Dispensaries 10

Primary Health Centres 60 Hospitals 16

Primary Health Sub-Centres 309 Hospital Beds 4878

12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE

Fertiliser/Seed/Pesticide 414 Agriculture 26802

Outlets [Nos] Pumpsets[Nos]
Total N/P/K Consumption 56247 Pumpsets 24127
[MT] Energised [Nos]
Certified Seeds Supplied [MT] 5035 Agro Service 68
Centres [Nos]

6
Pesticides Consumed [MT] 67 Soil Testing 84
Centres [Nos]
Agriculture Tractors [Nos] 1756 Plantation 42
nurseries [Nos]
Power Tillers [Nos] 699 Farmers' Clubs 120
[Nos]
Threshers/Cutters [Nos] 449 Krishi Vigyan 1
Kendras[Nos]

13. IRRIGATION COVERAGE [Ha] (DSH - 2013-14)

Total Area Available for Irrigation (NIA + Fallow) 224439

Irrigation Potential Created
Net Irrigated Area(Total area irrigated at least once) 165941
Area irrigated by Canals / Channels 132303
Area irrigated by Wells 33637
Area irrigated by Tanks 0
Area irrigated by Other Sources 0
Irrigation Potential Utilized (Gross Irrigated Area) 221722

14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING

Rural/Urban Mandi/Haat n.a Wholesale Market 13

[Nos] [Nos]
Length of Pucca Road [Km] 2160 Godown [Nos] 99
Length of Railway Line [Km] 97 Godown 289863
Capacity[MT]
Public Transport Vehicle [Nos] 380 Cold Storage [Nos] 3
Goods Transport Vehicle [Nos] 13220 Cold Store 30
Capacity[MT]

15. AGRO-PROCESSING UNITS

Type of Processing Activity No of Cap.[MT

units ]
Food (Rice/Flour/Dal/Oil/Tea/Coffee) 360 4200
Sugarcane (Gur/Khandsari/Sugar) 66 3000
Fruit (Pulp/Juice/Fruit drink) n.a n.a
Spices (Masala Powders/Pastes) n.a n.a
Dry-fruit (Cashew/Almond/Raisins) nil n.a
Cotton (Ginnining/Spinning/Weaving)- 1 50600
spindles
Milk (Chilling/Cooling/Processing) 6 36000
Meat (Chicken/Motton/Pork/Dryfish) nil n.a
Animal feed (Cattle/Poultry/Fishmeal) nil n.a

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16. AREA, PRODUCTION & YIELD OF MAJOR CROPS (DSH - 2013-14)

2012-13 2013-14 Avg.

Crop Yield
[Kg/Ha
]
Area (Ha) Prod. Area Prod. Yield(K
(MT) (Ha) (MT) g/Ha)
Paddy 146959 431121 175000 1093225 4590
Maize 979 3287 1500 4026 3021
Pulses 17156 9332 35110 26507 649
Groundnut 6984 21672 9000 46098 4113
Gingely 4161 2364 8000 3952 494
Sugarcane 11671 1288791 10000 1068500 108638
Cotton 1015 3275 1000 10000 10000
Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8
kg per bale in India)

17. ANIMAL POPULATION AS PER CENSUS 2012

Category of animal Total Male Female

Cattle - Cross bred 326283 48733 277550
Cattle - Indigenous 419559 32551 387008
Buffaloes 14263 2574 11689
Sheep - Cross bred 7874 3944 3930
Sheep - Indigenous 32130 10451 21679
Goat 393915 112784 281131
Pig - Cross bred 1050 615 435
Pig - Indigenous 2081 845 1236
Horse/Donkey/Camel 140 85 55
Poultry - Cross bred 181624 n.a n.a
Poultry - Indigenous 602999 n.a n.a

18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES

Veterinary 170 Animal Markets n.a

Hospitals/Dispensaries [Nos] [Nos]
Disease Diagnostic Centres 1 Milk Collection n.a
[Nos] Centres [Nos]
Artificial Insemination 30 Fishermen Societies 34
Centers [Nos] [Nos]
Animal Breeding Farms 2 Fish seed farms 2
[Nos] [Nos]
Animal Husbandry Tng 1 Fish Markets [Nos] 8
Centres [Nos]
Dairy Cooperative Societies 176 Poultry hatcheries nil

8
[Nos] [Nos]
Improved Fodder Farms 1 Slaughter houses 4
[Nos] [Nos]

19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA

AVAILABILITY

Fish Production [MT] 16625 Per cap avail. 7

[gm/day]
Egg Production [Lakh 242 Per cap avail. 10
Nos] [nos/p.a.]
Milk Production ['000 258 Per cap avail. 203
MT] [gm/day]
Meat Production [MT] n.a Per cap avail. n.a
[gm/day]

9
 CHAPTER-II

INTRODUCTION

Thanajvur District is Rice Bowl of TamilNadu state. It is bounded on the

north by Ariyalur and Nagapattinam District, South by Pudukottai
District, East by Thiruvarur and west by Tiruchirapalli and Ariyalur
District. Thanjavur District consist of Three Revenue Divisions viz,
Thanjavur, Kumbakonam and Pattukottai, Nine Taluks viz, Thanjavur,
Budalur, Thiruvaiyaru, Papanasam, Kumbakonam, Thiruvidaimarudur,
Orathanadu, Pattukottai and Peravurani. Thanjavur District has 50 Firkas
and 906 Revenue villages.
The District has fourteen blocks viz, Ammapettai, Budalur. Kumbakonam,
Madukkur, Orathanadu, Papanasam, Pattukottai, Peravurani,
Sethubavachatram, Thanjavur, Thirupananthal, Thiruvaiyaru,
Thiruvidaimarudur and Thiruvonam. The District has 589 Panchayat
villages. The District has one Corporation, 2 Municipalities and 22 Town
panchayats and also has One Parlimentary constituencies and 8 Assembly
constituencies.
Location
Thanjavur District is Located in Eastern side of Central Tamil Nadu and
District lies between 90 50’ 00” N to 110 25’ 00” N and 700 23’ 00” E to
780 43’ 00” E. Thanjavur Railway station connected by southern railway
which connects Chennai, Madurai, Tuticorin and Thirunelveli,
Nagapattinam, Thiruvarur, Trichy, Salam, Erode, Coimbatore. Thanjavur
is also well connected by Roadways, which is also important road junction
on Thanjavur– Ariyalur, Thanjavur – Chidambaram, Thanjavur –
Nagapattinam, Thanajvur – Ramanathapuram, Thanjavur – Madurai,
Thanajvur – Trichy.
Important National Highways are
1. NH-36 – Vikravandi-Thanjavur-Manamadurai,
2. NH-83 – Coimbatore- Thanjavur – Nagapattinam.
Important State Highways are
1. SH-8 ---Vikravandi – Kumbakonam – Thanajvur.
2. SH-29 --Thanjavur – Kararikudi – Sayalkudi.
3. SH-63 -- Thanajvur – Thiruthuraipoondi – Kodiakkarai.

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 4. SH-66 -- Kumbakonam –Mannargudi – Adirampattinam.
5. SH-99 -- Thirukkattupalli – Sengipatti – Pattukottai.
6. SH-99A -- Thanjavur – Vallam.
7. SH-146 -- Mannargudi – Pattukottai – Sethubavachadram.
8. SH-147 -- Kumbakonam - karaikal.
History
Cholas, the Pandyas, the Nayakas, the Marathas, and also the British
have left a mark in the history of Thanjavur. Thanjavur was ruled by the
Cholas for nearly one thousand years and under their rule Thanjavur was
the centre of Tamil culture and the civilization. In addition to being able
rulers the Chola kings also built a large number of splendid temples,
which reveals the architectural skills of the Cholas. They also, encouraged
fine arts, constructed dams, ports and cities. The dam Kallanai, built by
the Chola King Karikalan has stood the wear and tear of nature for
hundreds of years and is one example of the Cholas architectural
strength. After the extinct of Cholas in the thirteenth century the Pandyas
ruled Thanjavur for a short period only and was overpowered by the
Muslim ruler Ala-Ud-Din Khilji, and Thanjavur district came under the
Muslim rulers.
Later the district was conquered by the Vijayanagar Kings and during this
period, the Nayak dynasty was established. Danish settlement was
established at Tranquebar in 1620, during the reign the of Nayak king
Ragunatha resulting in the decline of the Vijayanagar Empire. Ekogia
brother of Chattrapathi Shivaji, established the Thanjavur Maratha
kingdom in the latter half of the seventeenth century. The descendants of
Marathi administrators, soldiers, and noblemen who migrated to Tamil
Nadu during the rule of the Thanjavur Maratha kingdom still reside in
some parts of Thanjavur and so the district has a sizeable population of
Marathi speaking people. Meantime in 1798 a pact was signed between
the English and the Maratha and the ruler of the Thanjavur was allowed
to retain the fort of Thanjavur only with limited power of administration.

Area and Population

Thanjavur District, Totally covering an area of 3396.57 Sq kms. As per
2011 census, Thanjavur had population of 24,05,890, in which Male and
Female were 11,82,416 and 12,23,474 respectively . In 2001 census,

11
Thanjavur had population of 22,16,138, in which Male and Female were
10,96,638 and 11,19,500 respectively. There is an increase of 8.56
percent in the population compared to population as per 2001.

Administrative set - up
Thanjavur District consist of Three Revenue Divisions viz, Thanjavur,
Kumbakonam and Pattukottai, Nine Taluks viz, Thanjavur, Budalur,
Thiruvaiyaru, Papanasam, Kumbakonam, Thiruvidaimarudur,
Orathanadu, Pattukottai and Peravurani. Thanjavur District has 50
Firkas, 906 Revenue villages. The District has fourteen blocks viz,
Ammapettai, Budalur. Kumbakonam, Madukkur, Orathanadu,
Papanasam, Pattukottai, Peravurani, Sethubavachatram, Thanjavur,
Thirupananthal, Thiruvaiyaru, Thiruvidaimarudur and Thiruvonam. The
District has 589 Panchayat villages. The District has one Corporation, 2
Municipalities and 22 Town panchayats.

Agricultural Resources and Irrigation

Agriculture continues to be the most predominant sector of this district
economy and Thanjavur being the foremost district of the Cauvery delta
and occupies an important position in the agricultural map of Tamilnadu,
70% population is engaged in Agricultural and allied activities of their
livelihood. The District has a Geographical area of 3.39 Lakhs Ha with a
gross cropped area of around 2.69 Lakhs Ha. Since It’s formation , the
district is called as the “Rice bowl of Tamilnadu”. Thanjavur has all along
been one of the District with a creditable performance in Agricultural
production with the farmers relatively more responsive and receptive to
new technologies. They also innovative in adapting modern Technologies
and High yielding varieties.
Trade and Commerce
Thanjavur District is one of the 13 coasted District in Tamilnadu, which
produces 5% of the Total production of sea foods . The other things that
are famous in this district are ancient Handicrafts, Bronze coins, Art
plates, Bell metal castings, Bowls, Napkin, Powder boxes and Painting.
Apart from these, Ornamental fans, mats, Musical instruments out of jack
wood, and Handloom silks and also cotton sarees. Finally to conclude, no
one can deny the fact that the unique doll made in Thanjavur is
something special which nods its head in air. Market committees are

12
functioning in the district for the purchase and sale of cotton, groundnut,
chilly, corn and other edible oil products. The Co-operative Societies for
milk are functioning at all parts of the District.

Agriculture
The census data shows that most of the native inhabitants of Thanjavur
reside in the villages of the district and are engaged in agricultural
activities. The western part of the district is rain-fed. The major crops
cultivated in Thanjavur district are paddy, pulses, gingelly, groundnut and
sugarcane. The minor crops like maize, soyabeans, redgram are in rice
fallows. In new delta area, the groundnut is the principal crop. Paddy is
the principal crop grown in three seasons viz. Kuruvai, Samba and
Thaladi. Pulses like black gram, green gram and cash crops like cotton
and gingelly are grown. Sugarcane is cultivated both in new delta and old
delta. Banana is primarily grown in Padugai lands. The cultivators of
Thanjavur are classified into three distinct categories small cultivators,
marginal cultivators, and agricultural laborers. The district plays a key
role in Tamil Nadu by producing about one-fourth of the total output of
rice in the state and is rightly called the ―Granary of South India.
Normally paddy is raised in different periods in the entire district such as
“Kuruvai” , “Thaladi”, and “Samba” crops. The services rendered by the
Agricultural Research Station at Aduthurai, Water use management
Research station at Kattuthottam, and Coconut Research station in
Pattukkottai are very important, especially for the improvement of paddy
cultivation in the district.
Agricultural Research Institutions in the District
1. Indian Institute of Crop Processing Technology, Thanjavur
2. SWMRI – TNAU Institution, Thanjavur
3. Coconut Research Station, Veppankulam (TNAU)
4. ARS – TNAU, Pattukkottai
5. TRRI – TNAU, Aduthurai
Economy and Industrial development

The economy of the district is mainly based on agriculture and its allied
activities. Tourism also plays an important role as the district is the home
place of temples, buildings and monuments of historical importance.

13
Fishing also contributes to the economy of the district though the district
economy is predominantly agrarian. Due to the vagaries of nature,
agricultural sector of the district is experiencing a high degree of risk and
today people have turned towards for a more stable and continuous
employment and additional income.

SIDCO estates exist in Thanjavur, Nanjikottai, Kumbakonam,

Pillayarpatti, Tirubhuvanam and Budhalur. Agro-processing industries,
especially rice milling and oil extraction mills, have significant potential for
further expansion in the district which is ideally placed in terms of agro-
climatic conditions, raw material availability, and skilled manpower
supply. Thanjavur is famous for its traditional handicrafts and industrial
clusters involved in the production of Thanjavur plates & Arts, Thanjavur
brass articles, coir products, silk weaving handloom, icon and art plate
works are located in Thanjavur, Nachairkoil, Ammapettai,Swamimalai,
Korkai, Kumbakonam, Pattukkottai, Tirubhuvanam, and Budhalur.

Two sugar mills, one in Co-operative Sector at Kurungulam in Thanjavur

taluk and another one in private sector viz. Thiru Arooran Sugar Mills at
Thirumandankudi near Kumbakonam were setup initially. More than 3
modern rice mills run by Tamil Nadu Civil Supplies Corporation and one
Food Corporation of India have also been setup. One spinning Mill is also
functioning in this District.

Heritage sites
Big temple
The Brihadeeswarar temple, called the Big Temple, is dedicated to Lord
Siva. It was built by the great Chola King, Raja Raja I (985-1012 A.D). It is
an outstanding exmple of Chola architecture. Recognizing its unique
architectural excellence, UNESCO has declared it a World Heritage
Monument. The 64.8 m tall vimanam (tower ove the sanctum sanctorum)
is testimony to the engineering skill of the Cholas. In keeping with the size
of the temple, it has gigantic “Mahalingam” in the shrine, measuring 4m
in height. A monolithic Nandhi chiseled out of a single rock, measures
5.94 m in length,
2.51 m in breadth and 3.66 m in height. It is the second largest Nandhi in
India. The Nandhi or bull is the vehicle of Lord Siva.
Palace

14
Just 1 km away from the Brihadeeswarar Temple is a magnificent palace,
surrounded by huge fort walls. Dating back to the 14th century A.D., it
was built partly by the Nayaks and partly by the Marathas. The Maratha
royal family resided in this palace. It is a fascinating building with huge
corridors, spacious halls, decorated rooms, tall observation towers,
beautiful stucco works, wonderful fresco painted walls and ceilings, an
underground tunnel and intricate carvings. The royal family’s sacred
“Chandramaulessshwarar Temple” is located within the palace walls.
Art gallery
The art gallery has a fabulous collection of bronze icons, stone sculptures
and pieces of art. The Collection is unique for its representation of Hindu
gods and goddesses, myths and legends. The exhibits are priceless for
their historical value.
Saraswathi Mahal library
The Thanjavur Maharaja Serfoji’s Saraswathi Mahal Library is one among
the few libraries in the world with texts of the medieval period. It is a
treasure house of knowledge carefully fostered and nurtured by successive
dynasties of Nayaks and the Marathas of Thanjavur.

References:

1. https://www.nagapattinam.nic.in/

2. State Planning Commission, Government of Tamil Nadu

3. ENVIS Centre: Tamil Nadu State of Environment and Related

Issues, Tamil Nadu State Council for Science, Technology and
Environment.

15
 CHAPTER-III

AVAILABILITY OF RESOURCES

I. NATURAL RESOURCES

i) Agriculture and Horticulture

Thanjavur district stands unique from time immemorial for its agricultural
activities and is rightly acclaimed as the granary of South India lying in
the deltaic region of the famous river Cauvery and criss-crossed by lengthy
network of irrigation canals. Therefore this coastal district abounds in
green paddy fields, tall coconut groves, vast gardens of mango and
plantain trees and other verdant vegetation. Thanjavur district is
essentially a deltaic plain comprising of old and new delta. The old delta
has a net work of canals and channels of the river Cauvery and Vennar.
Upper portion of this new delta area is irrigated by Grand Anaicut canal.
Tapping of ground water is done considerably in this area to advance the
first cropping season Cauvery to avoid damage due to North East monsoon
and to accommodate two crops namely Kuruvai and Thaladi. The soils of
new deltaic area are amenable to a wide variety of crops such as coconut,
mango, guava, pulses, cotton, gingelly, groundnut, banana etc. Cultivation
of oilpalm and soyabean is also carried out in this district wherever
assured water supply and drainage facilities are available. The major
crops cultivated in Thanjavur district are paddy, pulses, gingelly,
groundnut and sugarcane. The minor crops like Maize, soyabeans,
redgram are in rice fallows. In new delta area, the groundnut is the
principal crop. Paddy is the principal crop grown in three seasons viz.
Kuruvai, Samba and Thaladi. Pulses like black gram, green gram and
cash crops like cotton and gingelly are grown. Sugarcane is cultivated
both in new delta and old delta. Banana is primarily grown in Padugai
lands.

A. Total Cultivated area ( ha ) 2,41,292

B.Net area sown (ha) 1,92,030
C. Area sown more than once (ha) 49,262
D. Area & Production of Area in ha Production in Tonnes
Principal crops
i. Rice 155 703
ii. Millets & other cereals Nil Nil
iii. Pulses 16 6
iv. Sugarcane ( In terms of 15 1502
cane )
v. Groundnut 7 23

16
 vi. Gingelly 6 2
vii. Cotton ( bales 170 kg. Lint 1 1
each )
E. Agricultural Land Holdings (2000-01)

i. Holdings 291264
ii. Area & average size of holdings ( 227674 & 0.78
ha)
F. Important food crops Paddy, Sugarcane, Green Gram,
Black Gram & Banana
b) Important non-food crops Groundnut, Coconut & Gingelly.

Micro-level agricultural planning at the village level to step up agricultural

production was first introduced in composite Thanjavur district in the
early 60s. This paved the way for concerted village level planning and
contributed in a great measure to step up agricultural production
manifolds. The setting up of Thiru Arooran Sugar Mills in the late fifties
induced a section of the traditionally rice growing farmers to switch over to
sugarcane. The setting up two more sugar factories has diverted part of
the rice growing areas to sugarcane.

The important fruit crops are: Banana, Mango, Guava and Citrus. Of
these, banana is the major fruit crop cultivated over about 4,000 ha while
all the other fruits put together are raised in about 1,100 ha In the
lateritic soils of Vallam, Pattukottai and Peravoorani, cashew (Anacardium
occidentale) is raised in about 4,000 ha under rainfed conditions.The
major vegetable crops raised are Brinjal, Ladies finger, Onion and
Elephant yam.

ii) Forest resources

According to the latest figures of the Forest Department, the extent of
forests is as follows:
A. Forest area (ha)

1. Reserved 3836.03

2. Unclassified Nil
3. Reserved Lands 68.545

B. Out turn of forest products

Timber (cu.m) 2,678.685

17
Lop & top ends (tonnes) 774.305
Cashew nuts (tonnes) 4.176

iii) Mineral resources

The major portion of Thanjavur district is covered by Cauvery alluvium
and reported to have potential for mineral wealth. Vallam stones,
laterite, sandstone, kankar and yellow ochre have been reported from the
district. Quartz crystals rolled into pebbles occur in the tertiary
formation. Iron ore is found to exist in the neighbourhood of Vallam.
Vallam area in Thanjavur taluk yield laterite of fine quality. Pebbles of
transparent quartz occur in conglomeratic sandstones near Vallam.
These are of the amethystine citrine and smoky varieties.
Kanker and tuffaceous limestones occur under redsoil laterite ranging in
thickness from 0.3 to 1.0 m Kankar layers are also noticed in stream
sections. The important occurrences are seen in the Grand Anicut canal
cutting between Kuruvadipatti and Pudur and also in the neighbourhood
of Thirumalaisamudram. The thickness of Kankar in
Thirumalaisamudram area ranges from 2.0 to 2.5 m and the total
reserves have been estimated to be about 0.5 mt. The Kankar is of good
quality, coal ranging from 48.42 % to 52.72 % and low in Magnesia.

iv) Water resources

The river Cauvery and its tributaries are the most remarkable feature of
Thanjavur district. Cauvery is considered to be the best of the rivers that
drain the Southern Pennisula of India. The river flows from Karnataka
State and passes through Dharmapuri, Salem, Erode, Thiruchirappalli
Thanjavur, Thiruvarur and Nagapattinam districts covering a distance of
about 770 km draining an area about 72.800 sq.km in all. Springing
from a spot lying on Brahmagiri mountains on western-ghats at a height
of 1,320 m above sea level, Cauvery meanders its way across Karnataka
and Tamil Nadu and showering not only economic prosperity on millions
of people but also carving a niche for itself in their lives in historical,
culture and religious realms. Emerging as a small rivulet from the Coorg
mountains the river Cauvery expands rapidly increasing in volume, as
hundreds of streams and rivulet merge with it which are mostly fed by
the heavy rainfall of the South- West monsoon. After Sivasamudram
Falls in Mysore, the Cauvery again forms beautiful waterfalls at
Hoganekal in Dharmapuri district.

18
The three minor tributaries, Palar, Chennar and Thoppar enter into the
Cauvery on her course, above Mettur, where the famous dam has been
constructed. The Mettur dam joins the Sita and Pala mountains beyond
that valley through which the Cauvery flow, upto the Grand Anicut. The
dam in Mettur, impounds water not only for the improvement of
irrigation but also to ensure regular and sufficient water to the important
Hydro-Electric generating station at Mettur. The river further runs
through Erode district where river Bhavani merges with it. While passing
through Erode, two more tributatries namely Noyyal and Amaravathi join
it before it reaches Thiruchirappalli district. Here the river becomes wide,
with a sandy bed and flows in an entirely different direction till it gets
split into two at upper anicut, 14 km West of Thiruchirappalli. The
Northern branch of river is called the Coleroon while the Southern
branch retains the same name Cauvery and then goes directly eastwards
into Thanjavur District. These two rivers join again and form the
Srirangam island near Thiruchirappalli.
The Chola king, “Karikalan” has been immortalised as he has
constructed the bank for the Cauvery all the way from Puhar
(Kaveripoompattinam) to Srirangam. It was built as far back as 1,600
years ago or even more. On both sides of the river are found walls
spreading to a distance of 1,080 ft. The dam Kallanai on the border
between Tiruchirappalli and Thanjavur constructed by him is a superb
work of engineering, which was constructed with earth and stone and
has stood the vagaries of nature for hundreds of years. In 19th century,
it was renovated in a bigger scale. The name of the historical dam has
since been changed to “Grand anaicut” and stands as the head of great
irrigation system in the Thanjavur district. From this point, the Coleroon
runs north-east and discharges herself into the sea at Devakottai, a little
south of Parangipettai. From river Coleroon, Manniar and Uppanai
branch of at lower Anicut and irrigate a portion of Mayiladuthurai taluk
and Sirkazhi taluk. After Grand Anicut, the Cauvery divides into
numerous branches and covers the whole delta with a vast network of
irrigation channels. The mighty Cauvery river here is reduced to an
insignificant channel and falls into the Bay of Bengal at the historical
place of Poompuhar (Kaveripoompatinam) about 13 km north
of Tharangampadi.
The river Cauvery flows through the entire district in different names,
through its tributaries and branches viz., Grand Anaicut canal, Vennar,
Pannaiyar, Koraiyar, Vettar, Kodamuritiyar, Thirumalairajanar, Arasalar,
Veerasozhanar, Mudikondan, Noolar, Vanjiar, Vikaraman, Nattar,
Kirtimanar, Nandalar, Majalar, Mahimalayar, Palavar, Cholasudamani,
Puthar, Valappar, Vadavar, Pamaniar, Mulliyar, Ayyanar, Adappar,

19
Harichandranathi, Vellaiyar, Pandavaiyar, Odambogiyar, Kattar,
Kaduvaiyar and all these branch off into a number of small streams.

Among the various names by which the holy Cauvery is known during its
course, the most popular in Tamil Nadu is “Mother Cauvery” due to the
high sancity attached to it. It is worshipped by the people irrespective of
caste, creed or religion during Mahamagam festival celebrated at
Kumbakonam once in 12 years. The Pilgrims after a bath in
Mahamagam tank proceed for a holy dip in Cauvery which is belived to
purge of all sins. In the Tamil month of Adi (July – August) on the 18th
day, (Adi- Perukku), the people throng the bank of the river for the holy
bath and pray to the mother Cauvery for their prosperity. In the Tamil
month of Aypasi (October- November) thousands of devotees participate
in a festival called “Kuda Muzhukku” celebrated on the banks of the river
Cauvery at Mayiladuthurai. Many famous temples on the banks of river
Cauvery and its tributaries have also earned fame as either sacred
religious centers or beautiful scenic spots, providing the much needed
respite and mental solace to urbanites.
v) Fisheries production
Thanjavur is one of the 13 maritime district of Tamil Nadu engaged in
marine fishing and its fish production is about 5% of the total catch of
the State. The State has a total coast line of to 1,076 km embedded with
442 fishermen villages of which Thanjavur district occupies 45.1km
stretch in Palk strait. It has 27 fishing villages in the district from
Thambikkottai in Pattukkottai taluk in the north and Sembagamadevi
Pattinam in Peravurani taluk in the south. The total inland fish
production is 11,530 tonnes and the respective figure for the marine fish
production is 9,020 tonnes.
Out of 4,899 families, 490 families are living in terraced houses, 874
families are living in tiled houses, 736 families are living in fishermen
free houses and remaining 2,799 families are living in thatched houses.
The census data further reveals there are 370 mechanised boats which
are operated from Kallivayalthottam, Mallippattinam and
Sethubavachathram fishing villages. There is a T Jetty in Mallippattinam
coastal village constructed in 1980 to facilitate easy landing of the
catches of mechanised boats. Around 2,500 fishermen were involved in
mechanised fishing operations. In addition to the mechanised boats, 924
plank built boats and 107 cattamarams are also operated from the
coastal villages providing employment opportunity for more than 3,000
fisherman of this district.

20
Thanjavur district is also richest in inland fishing due to the presence of
Cauvery river system. The irrigation channels, canals major and minor
tanks are the richest in fish varieties. The inland fishing consists mostly
of local carps, major carps and other varieties such as cat fish, murrells,
tilapia etc., About 5,000 inland fishermen are engaged in fishing. Seeds
of catla, rohu, mirgal and common carp are also produced at the
Fisheries Department, Fish Seed Production Centre. Silver carp and
grass carps early fry are brought from West Bengal and reared by private
fish seed producers. Enormous numbers of fishermen are engaged in
fish production by culture methods. Fishing rights in rivers, channels,
tanks and water bodies of Forest Department have to be leased out only
to Fishermen Co- operative Societies on priority basis and in turn these
societies will lease out the fishing rights to its members.
Source:
ENVIS Centre: Tamil Nadu State of Environment and Related Issues,
Tamil Nadu State Council for Science, Technology and Environment.
http://tnenvis.nic.in/

II. LABOUR RESOURCES

Labour Force Parameters:

Labour Force Participation Rate (LFPR per 1000 persons): The LFPR for
Thanjavur district is 632 (for 1000 persons) as compared to State level
average of 586 persons per 1000 persons. Similarly, Worker Population
Ratio (WPR per 1000 persons) is also as high as 602 as compared to
state average of 565.
Thanjavur district has 55 vocationally trained persons for every 1000
distribution of persons aged 15 years and above. Out of the vocationally
trained persons in the district, more than 80 percent of the people are
reported to be employed.
Sectoral Composition of Workers:
Sectoral composition of workers gets changed over the years due to
development registered in the district. Among the four categories of
workers, such as cultivators, agricultural labourers, household industry
workers, and other workers, the growth rate of cultivators during 2001
and 2011 is -10.13. The negative growth of cultivators shows that they
have switched over to non-agricultural activities due to vagaries of
monsoon and unstable farm income. Due to the introduction of modern

21
technology in agriculture, there is a significant reduction in labour
absorption.
Human Development Index:

Top 3 blocks Bottom 3 blocks

Thanjavur 0.854 Thiruvidaimarudur 0.431

Pattukottai 0.782 Thirubuvanam 0.390

Kumbakonam 0.734 Orathanadu 0.370

Thanjavur, Pattukottai and Peravurani blocks have performed well and

reached the top level. On the other side, Thiruvidaimarudur, Thiruvonam
and Orathanadu index values have reached to bottom level.
Gender Inequality Index:
GII is the measure of these inequalities built on the same framework as
the Human Development Index to better expose differences in the
distribution of achievements between female and male. Among the
fourteen blocks of the district, the minimum value of the GII index is
recorded in Thanjavur block (0.030) and the maximum value is
registered in Ammapettai block (0.146.
Child Development Index:
Assessing and measuring the levels of child development is one of the
indicators of human development. The health and education sectoral
indices are taken into account in arriving at the Child Development
Index. The minimum and maximum value ranges between 0.711 in
Pattukottai and 0.378 in Thiruppanandal block.

Sources:
1. Report on District Level Estimates for the State of Tamil Nadu
(2013-14), Labour Bureau, Ministry of Labour & Employment,
Government of India, Chandigarh.
2. Human Development Report- 2017, State Planning Commission,
Government of Tamil Nadu.

22
 CHAPTER-IV

INFRASTRUCTURAL FACILITIES EXISTING IN THE DISTRICT

Infrastructure is the most significant factor for economic development of

any country. Infrastructure includes physical structures, systems,
institutions, services and facilities is the pre-requisite for industrial
development especially for MSMEs. Thanjavur district has the following
infrastructural facilities for industrial development.

Roads

Total Road Length 1057 Km

National Highway Length 144.8 Km

State Highway Length 469 Km

District Road Length 444 Km

Railways

The District headquarter Thanjavur is well connected with Tiruvarur,

Thiruthuraipoondi and Chennai by rail lines.

Power

Every household is entitled to have electricity. In realizing the importance,

the state government has provided electricity on the basis of demand and
also provided free electricity to the people live in huts. It is interesting to
note that the Tamil Nadu Electricity Board has achieved hundred per cent
results in providing electricity supply to the households. In view of the
increasing demand and increasing loads, the government has identified
alternative source of energy and take appropriate steps to control power
theft and transmission loss. In total, the provision of electricity has been
covered in 906 revenue villages with 2,635 hamlets and 25 towns. The
entire district has been provided with 1,57,284 street lights during the
period of 2013-14.

Status of Electrification during 2013-14

No. of
District Revenue Hamlets Towns Street
Village Lights
Thanjavur 906 2,635 25 1,57,284

Communications

The total number of PCOs is 1,804 in Thanjavur district. The total number
of landline connection in the district is 48,555. The total number of mobile
phone towers in the district is recorded as 125. There are 67 telephone

23
exchanges in Thanjavur district. It is reported that around 50 %
households used to have mobile phones to meet their demands and they
revealed that they have better opportunities in generating income and
employment. Besides, a number of private organizations are also offering
mobile services in the district.

Financial Institutions

Out of 10837 bank branches in Tamil Nadu, 335 branches of different

banks are functioning in Thanjavur District. This includes nationalised
banks, private sector banks, regional rural banks and foreign banks. Out
of 335 bank branches, 131 branches are found to be existing in rural
areas and 98 branches are located in semi-urban areas. (Source: State
Level Bankers Committee, Tamil Nadu). As member based, member
controlled social and economic organizations, cooperatives can, and often
do, provide various forms of social protection.

Savings and Credit Cooperative Societies (SACCOS) provide affordable

loans to their members who would otherwise have no access to credit from
private financial institutions. Such loan is used to start small enterprises,
improve house improvement, school fees, agricultural production,
household goods and also to cover medical expenses. Cooperative banks
provide loans to the cooperatives that own them. Such loans enable the
borrowing cooperatives expand their enterprises which in turn benefit
their members. Such banks also support special programmes for
cooperative members and their communities. Most farmers‘ cooperative
societies provide farm inputs on credit (implements, seeds, fertilizers,
pesticides, packing and building materials, hire of farm machinery etc.).
The money is repaid when the farmer-member sells his crop through the
cooperative. Insurance cooperatives provide protection to members and
their property. They also provide cover for the members‘ assets in the
cooperative. Many savings and credit cooperatives provide loan protection
cover. Cooperative micro insurance is becoming increasingly common.

24
 CHAPTER-V

INDUSTRIAL SCENARIO AND MSMEs

The major source of the economy is from agriculture and allied activities.
More than 75% of the workforce depends on agriculture sector only.
Thanjavur district is a predominantly agrarian one.

Thanjavur district is famous for its traditional handicrafts such as

Thanjavur art plates, Icon works, pith works, musical instruments,
Thanjavur paintings besides silk weaving. These traditional activities have
been patronized from the times of Maratha rulers of the late 17th century.
Kumbakonam is another important trade centre that is famous for
metalware, brass utensils and silk sarees providing considerable
employment opportunities to the local people.

BHEL is a major PSU nearby Thanjavur. Major industrial activities are

BHEL ancillary units, Wind mill power fabrication, Coir yarn and allied
activity, Modern rice mills, Stainless steel vessels production, Brick works,
Printing presses etc. Coconut and Fabrication based activity have good
potential at p[resent Handlooms, Handicrafts goods making, Carpentry,
etc., form major skill based activities.

The Govt. of India programme, Scheme of Fund for Regeneration of

Traditional Industries (SFURTI) is implemented to improve coir sector in
Pattukkottai coir cluster by DIC and Bell metal lamp in Nachiarkovil by
KVIC at about Rs.1 Crore each. The district does not have any significant
mineral deposits or forest cover as such mineral resource based industries
are rare.

5.1 Details of MSMEs in the District

Definition of MSME
Classification of enterprises.-An enterprise shall be classified as a micro,
small or medium enterprise on the basis of the following criteria, namely:--
(i) a micro enterprise, where the investment in plant and machinery
or equipment does not exceed one crore rupees and turnover does
not exceed five crore rupees;

(ii) a small enterprise, where the investment in plant and machinery

or equipment does not exceed ten crore rupees and turnover does
not exceed fifty crore rupees; and

(iii) a medium enterprise, where the investment in plant and

machinery or equipment does not exceed fifty crore rupees and
turnover does not exceed two hundred and fifty crore rupees.

25
Calculation of turnover:

(1) Exports of goods or services or both, shall be excluded while

calculating the turnover of any enterprise whether micro, small or
medium, for the purposes of classification.

(2) Information as regards turnover and exports turnover for an enterprise

shall be linked to the Income Tax Act or the Central Goods and Services
Act (CGST Act) and the GSTIN.

(3) The turnover related figures of such enterprise which do not have PAN
will be considered on self-declaration basis for a period up to 31st March,
2021 and thereafter, PAN and GSTIN shall be mandatory.

In Thanjavur, currently more than 3000 units have registered under

Udyam registration which replaces the UAM (Udyog Aadhar
Memorandum), filing of Entrepreneur’s Memorandum Part I & II. Govt. of
India, Ministry of Micro, Small and Medium Enterprises (MSME) has
notified the Udyog Aadhaar Memorandum (UAM) under the MSMED Act,
2006 vide gazette notification [SO No. 2576(E)] dated 18-09-2015 in order
to promote ease of doing business for MSMEs. A one-page simple
registration form for online filing of UAM has been introduced and filing of
UAM can be done on www.udyogaadhaar.gov.in. Registration is free
and can file more than one Udyog Aadhaar Memorandum (UAM) with
same Aadhaar Number. Subsequently, on 26th June, 2020, Govt. of India
notified revised criteria for classifying the enterprises as micro, small and
medium enterprises and specified the form and procedure for filing the
memorandum (Udyam Registration), with effect from the 1st day of July,
2020.

As per UAM registration Thanjavur district has 5995 manufacturing units

and 9787 service sector enterprises. However, after introducing Udyam
registration, all the MSMEs were informed to re-register under the new
Udyam registration due to which the registered/reported MSMEs are
found to be small in numbers.

The following tables show the Udyam registration details of Thanjavur and
other districts.

Total Udyam Registrations in Tamil Nadu & Thanjavur District as on

30-12-2020.

District/State Name Total Count Micro Small Medium

Thanjavur 3078 3011 61 6

Tamil Nadu 1,59,901 1,49,608 8,860 1,433

26
Sector wise Udyam Registrations in Tamil Nadu & Thanjavur District
as on 30-12-2020

District Name Udyam Udyam Total

Regd.(Manufacturing) Regd.(Services)

Thanjavur 926 2152 30785

Tamil Nadu 68,669 91,159 159828

Total Manufacturing Sector Udyam Registrations in Tamil Nadu &

Thanjavur District as on 30-12-2020

District Name Total Count Micro Small Medium

Thanjavur 926 903 20 3

Tamil Nadu 68,707 62,098 5,593 1,016

Total Service Sector Udyam Registrations in Tamil Nadu & Thanjavur

District as on 30-12-2020

District Name Total Micro Small Medium

Count

Thanjavur 2152 2108 41 3

Tamil Nadu 91,208 87,522 3,269 417

5.2 Medium & Large Scale Industries and PSUs in Nagapattinam

1. King Chemicals, Vadaseri.

2. Thiru Arooran Sugar Mills, Thirumandangudi.

3. Arignar Anna Sugar Mills, Kurungulam.

4. Modern Rice Mill, Ammanpettai.

5. Modern Rice Mill, Pattukkottai.

6. Modern Rice Mill, Thirunageswaram.

7. The Thanjavur District Co-op. Milk Producers Society, Thanjavur.

8. Thanjavur Spinning Mill, Thanjavur.

27
9. Nelson Papers ltd., Cholagampatti.

10. Ambika Sugars, Kottur.

5.3 Major Exportable Items in Thanjavur

Handicrafts items like

1. Thanjavur Plate,

2. Veena,

3. Stone carved Idols, and

4. Thanjavur Paintings.

Growth Trend

Being an agrarian economy, industrial growth in the district is mainly

confined to agro-based industries. A large number of Rice mills, Oil mills
are spread over the district. Three sugar mills are functioning in the
district.

Service Enterprises

The growth of software industry and educational institutions in the world

in general and Tamil Nadu in particular and the migration of skilled and
unskilled labour towards greener pastures have its impact in this district
also. In fact, it has helped in improving the economic standards of the
people, who had otherwise confined to agriculture. Engineering Colleges,
IT-related educational institutions and other educational institutional
started spreading in the district. Two and four-wheeler service center
repair and service enterprises and other service sector enterprises have
started mushrooming.

Potential areas for service industry

1. Security services

2. Housekeeping.

3. Cell Phone servicing

4. Repairing of Electro-medical Equipments

5. Domestic repairing services.

6. Marketing consultancy

7. Industrial consultancy

28
 8. Entrepreneurship Development Institutions

9. Repairing and Servicing of Boats

10. Internet Browsing

11. Data Base services

12. Cyber Marketing

13. Industrial Laundry

14. Documentary Film making

15. Beauty Parlours

16. Sporting and other recreational activities.

17. Safety disposal of hospital/medical waste.

18. Postal and Courier activities,

19. Cable TV

20. Freight transport

21. Printing and book Binding

22. Auto / Two wheeler service centres

23. Recharging and reconditioning of batteries

24. Hotels and hospitality services

25. Educational institutions

26. Crèche

27. Fitness centres.

5.4 Enterprise having potential in Thanjavur

Resource & Demand based Industries –suitable for Thanjavur district

1. Energy Food

2. Ready mixes for Savouries

3. Sugarcane Beverage- Bottled

4. Meat Gravy Concentrate

5. Ready-to-Serve Fruit Based Beverages

29
6. Coconut Based products like

a. Coconut Cream

b. Coconut water- Preserved & Packaged

c. Desiccated coconut

d. Coconut husk particle board

e. Coconut Moulded Baskets

f. Coconut-shell Cups

g. Coir Brushes

h. Coir Yarn

i. Coir Mats

j. Coir carpets

k. Coir rugs

l. Manure from Coir Pith

7. Value added food products from Banana like:

a. Banana Figs (Dehydrated banana)

b. Banana Chips

c. Banana flour/powder

d. Banana Jam

e. Banana Fruit bar

f. Banana Juice (Ready-to-serve)

g. Banana based baby food

h. Banana biscuits

i. Banana based Health drink

j. Alcohol from banana waste.

k. Banana Fabric polymer Compost

l. Cushioning Material Out of Banana Stem

m. Banana fibre & fancy articles

8. Milk Products

30
9. Value added food products from Mango

a. Mango Pickles

b. Mango Chocolate

c. Mango soft drinks

d. Mango kernal Oil

e. Mango Nector

f. Mango Chutney

10. Value added Products from Fish

a. Fish processing & Canning

b. Fish pickles

c. Fish meal

d. Fish protein concentrate

e. Shrimp pickles

f. Shrimp feed.

g. Fresh-water prawn culture

11. Edible oil extraction

12. Vegetable pickles

13. Tapioca Chips

14. Dall Milling

15. Silica from Rice Husk ash

16. Activated carbon from Paddy Husk

17. Cement material from Rice husk ash

18. Paper Boards

19. Flower extracts

20. Tulasi Oil

21. Spirulina

22. Phyllanthus Amarus extract (Keezhanelli)

23. Natural Food Colours

31
24. Natural Dyes for Textiles

25. Mini power plants

26. Refined salt

27. Bacterial Bio-fertilisers

28. Microbial Bio-pesticides/Insecticides

29. Vermi-composting

30. Bio-stimulators for crops

31. Manure based on human-waste

32. Plastic Toys

33. Readymade Garments

34. Catering and Fast foods

35. Packaging industries

36. Manufacture of seeds and seedlings

37. Nurseries for companion planting, repellent Crop &

Ornamental Plants

38. Cattle Feed/Poultry Feed

39. Fly-ash bricks

40. Chamber bricks

41. Gold and Diamond Jewellery

42. Synthetic twine & nuts

43. Electrical

44. Catering and Fast foods

45. Mushroom plantation and processing

46. Electrical Equipments/components

47. Structural fabrication

48. Packaging of drinking water

49. Invertors and UPS

50. Powder Coating

32
 Chapter – 6

MICRO SMALL AND MEDIUM 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, up gradation 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.

Status of Projects under MSE-CDP Scheme in India and Tamil Nadu

(Common Facility Centre)

Approved by
Ongoing Completed Total
GOI

India 115 47 68 115

Tamil
30 08 22 30
Nadu

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.
Tamil Nadu Small Industries Development Corporation (TANSIDCO) is
the implementing and fund routing agency for all the clusters under

33
 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.88.32 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. Further 10
clusters have indentified and forwarded to the O/o Development
Commissioner with a total project cost of Rs. 145.95cr.

Status of Projects under MSE-CDP Scheme (Common Facility Centre)

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

Completed of Projects under MSE-CDP Scheme in Thanjavur District

(Common Facility Centre)
(Rupees in Lakhs)
Cluster name District Project SPV Bank Grant Received
cost of share term from
CFC loan
GOI GOTN
Rice Mill Thanjavur 212.06 21.40 50.00 90.115 40.43
Cluster,
Thanjavur
Total All 12127.6 1839.6 1033.9 8331.7 922.4

34
Identified Clusters at Thanjavur

Manufacturing Sector

1. Stainless Steel Cluster, Kumbakonam #

2. Musical Instruments, Thanjavur

3. Brass Metal Cluster, Nachiyarkoil

4. Idols & Brass Art Lamps, Swamimalai,

Thiruvidaimarudur, Nachiyarkoil and Kumbakonam

5. Coir, Pattukotttai, Orathanadu and Peravoorani

6. Thanjavur Art Plate, Thanjavur

7. Silk Weaving Cluster, Thirubuvanam, Kumbakonam

# Cluster under Implementation stage

35
 Chapter – VII

SWOT Analysis

SWOT analysis is a strategic planning technique used to help a person or

organization identify strengths, weaknesses, opportunities, and threats
related to business competition or project planning. SWOT analysis
assesses internal and external factors, as well as current and future
potential. This chapter shows what are the major Strength, Weaknesses,
Opportunities and Threats in Thanjavur District.

Strengths. Weaknesses

 Most Fertile Area  Production and productivity is

less since using obsolete techniques
 Agro based industries of production in clusters.
 Presence of Natural Clusters  Lack of sizable number of PSUs
and large scale industries.
 Tourism Spot
 Lack of entrepreneurship urge
 Availability of Labour
with the workforce
 Availability of basic
infrastructural facilities like road,
rail

Opportunities Threats

 Large potential for export in  Frequent occurrence of natural

agro products and handicraft goods. disasters.

 More industries can be  Excessive use of chemicals in

introduced to boost the economy as some industries affecting the soil.
some natural resources are
available in plenty.  Flood prone delta regions.

 Natural clusters and its allied

sectors can work together for
creating more exports.

 Large scope for establishing

cold storage unit.

36
 Chapter – VIII

INSTITUTIONAL SUPPORT FOR MSMEs

This section explains all the institution located in State of Tamil Nadu that
facilitates entrepreneurship and self employment. These institutions
include Government, statutory corporations, and semi- autonomous and
autonomous organisations. In the state , following these authorities and
agencies are Government sponsored organisations and entrusted
with sufficient powers to regulate and promote SSIs in specific areas
of activities.

1. Commissionerate of Industries & Commerce: - The Directorate of

Industries is the major field organization of the Industries Department
headed by Principal Secretary/Industries Commissioner and Director of
Industries and Commerce). Every district has a District Industries Centre
(DIC) headed usually by a General Manager.

Major function of Commissionerate of industries & commerce

 Providing escort services to the entrepreneurs towards identification

of viable activities and preparation of project profiles for assistance from
financial institutions/banks.
 Creating awareness about the policies and programmes on
industrial development of the State / Central Governments, through
awareness camps, seminars and dissemination meets.
 Organising and conducting Entrepreneurship and Skilled
Development Training Programmes.
 Facilitating MSMEs in getting various clearances for starting an
enterprise from Government departments through Single Window
Clearance Committee.
 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 Centrally Sponsored Scheme, Prime Minister's
Employment Generation Programme (PMEGP).
 Implementation of State Sponsored New Entrepreneur – Cum –
Enterprise Development Scheme (NEEDS) and Unemployed Youth
Employment Generation Programme (UYEGP).
 To facilitate MSMEs in getting payment of dues from the large
industries through the Micro and Small Enterprises Facilitation Councils.
 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.

37
 Supervision of implementation of Special Assistance Schemes
announced by the State / Central Government for small and micro
enterprises.

The head office of is located at Chennai in SIDCO corporate office

building , Guindy Industrial Estate, Chennai- 600032 and each district of
Tamil Nadu has one office. For more details visit the link
(http://www.indcom.tn.gov.in/index.html)

2. Entrepreneurship Development And Innovation Institute (EDII):

EDII was Established in 2001, the Entrepreneurship Development and
Innovation Institute (EDII), Chennai is an apex organisation in the field of
entrepreneurship education and self-employment promotion in the state of
Tamil Nadu. EDII was constituted by Government of Tamil Nadu as a not-
for- profit society and is administered by Department of Micro, Small and
Medium Enterprises (MSME). Headed by the Addl. Chief Secretary who is
also the Director of the Institute, EDII is managed under the
superintendence of a Governing Council, appointed by the Government of
Tamil Nadu. The institute is located at Parthasarthy Koil Street,
Ekkattuthangal, Chennai - 600032. For more details visit the link
(https://www.editn.in/)

3. Tamil Nadu Small Industrial Development corporation

(TANSIDCO):- Tamil Nadu Small Industries Development Corporation
Limited (TANSIDCO), an undertaking of Government of Tamil Nadu ,
functions with the specific objective of playing catalytic role in the
promotion and development of Small Scale Industries and hastening the
industrial dispersal throughout Tamil Nadu .
The key areas of TANSIDCO’s activities are as follows:

 Development of industrial estates with infrastructure facilities and

provision of work sheds & developed plots.
 Raw Materials Supply Scheme
 Marketing Assistance Scheme
 Guidance to Entrepreneurs

The head office of is located at Chennai in SIDCO corporate office building

, guindy industrial estate Chennai 600032. For more details visit the link
(http://www.sidco.tn.nic.in/)

4. Tamil Nadu Industrial Cooperative Bank Ltd(TAICO):- Tamil Nadu

Industrial Cooperative Bank Ltd., popularly known as “TAICO Bank” is the
first of its kind in the Cooperative Sector in the Country for catering the
needs of Industrial Cooperatives. A unique Cooperative Bank with state
wide jurisdiction, to develop the Industrial Cooperative Societies in the
State of Tamil Nadu. The Objective of TAICO is to provide financial
assistance to the Industrial Cooperatives. The Main office is located in
Guindy Industrial Area, SIDCO Industrial Estate, Guindy, Chennai, Tamil
Nadu 600032. For more details visit the link http://www.taicobank.in/

38
5. Khadi and Village Industries Commission (KVIC):- The Khadi &
Village Industries Commission (KVIC), established under the khadi
and village industries Commission Act, 1956, is a statutory
organisation engaged in promoting and developing khadi and village
industries for providing employment opportunities in rural areas,
thereby strengthening the rural economy.
Major functions of KVIC
 To plan and organize training of persons employed or desired to get
employed in khadi and village industries.
 To create a pool of raw material and implements and supply those to
persons engaged or likely to be engaged in production of hand spun yarn
or khadi or village industries at such rates as the Commission may decide.
 To encourage and assist in the creation of common service facilities
for the processing of raw material or semi-finished goods and for otherwise
facilitating production and marketing of khadi or products of village
industries
 To promote the sale and marketing of khadi or products of village
industries or handicrafts and for this purpose to forge links with
established marketing agencies wherever necessary and feasible
 To encourage and promote research in the technology used in khadi
and village industries, including the use of non-conventional energy and
electric power with a view to increasing productivity, eliminating drudgery
and otherwise enhancing their competitive capacity and to arrange for
dissemination of salient results obtained from such research.
 To provide financial assistance to institutions or persons engaged in
the development and operation of khadi and village industries and guide
them through supply of designs, prototypes and other technical
information for the purpose of producing goods and services for which
there is effective demand in the opinion of the Commission
The KVIC offices are located in various locations in the state, which are as
follows.

State office - KVIC, no. 326, Avvai Shanmugam Salai, Ganapathy Colony,
Gopalapuram, Chennai, Tamil Nadu 600086

Divisional office - KVIC – no. 10, Bye pass road, Madurai - 625010

Sub office – KVIC, No 20, Mariamman koil street , Avarampalayam, K. R.

Puram , Coimbatore – 641006.

For more details: (http://www.kvic.org.in/kvicres/zonal_offices.php)

6. Rural Development and Self Employment Training Institute:-

RSETIs stand for Rural Self Employment Training Institutes. RSETIs are
managed by Banks with active co-operation from the Government of India
and State Government. Dedicated institutions designed as to ensure

39
necessary skill training and skill up gradation of the rural BPL youth to
mitigate the unemployment problem. These are promoted and managed by
banks with active cooperation from state governments RSETI concept is
based on RUDSETI (Rural Development and Self Employment Training
Institute), a society established jointly by three agencies i.e. Syndicate
Bank, Canara Bank and Sri Manjunatheswara Trust based at Ujire in
Karnataka. One RSETI is established in every district in the country.
Concerned bank is the lead bank in the district takes responsibility for
creating and managing it. Government of India will provide one - time
grant assistance, up to a maximum of Rs. 1 crore for meeting the
expenditure on construction of building and other infrastructure. After
successful completion of the training, they will be provided with credit
linkage assistance by the banks to start their own entrepreneurial
ventures. In the state of Tamil Nadu, 31 RSETIs are developed in 31
districts.
The head quarter is located at Chennai , It is been administered
by General Manager/ convenor State level bankers committee of Tamil
Nadu , Indian overseas bank , Agriculture and rural initiative division,
Anna Salai Chennai – 600002

7. Small Industries Development Bank of India (SIDBI): SIDBI was

established in April, 1990 to serve as the Principal Financial Institution for
promotion, financing and development of industries in the small scale
sector and co-coordinating the function of other institutions engaged in
similar activities. SIDBI provides assistance to the small scale sector
through indirect assistance, direct assistance and development and
support services. SIDBI is implementing various schemes of Central Govt
for development of MSMEs. In the state of Tamil Nadu SIDBI has his
Branch office at 6 major location such as Chennai, Coimbatore, Erode,
Madurai, Hosur and Triupur. The following link for more details
(https://www.sidbi.in/en/contact-us)

8. SIDBI - Venture Capital Ltd. SIDBI has also encouraged the

growth of the venture capital industry for hi- tech SME units in India by
promoting 13 State / regional level funds and setting up an all India
Venture Fund.

For more details visit the link :

http://www.sidbiventure.co.in/contact_us.html

9. National Small industries corporation:- National Small Industries

Corporation (NSIC) is an ISO 9001-2015 certified Government of India
Enterprise under Ministry of Micro, Small and Medium Enterprises
(MSME). NSIC has been working to promote, aid and foster the growth of
micro, small and medium enterprises in the country. NSIC operates
through countrywide network of offices and Technical Centres in the
Country.In addition, NSIC has set up Training cum Incubation Centre
managed by professional manpower. NSIC facilitates Micro, Small and
Medium Enterprises with a set of specially tailored scheme to enhance

40
their competitiveness. NSIC provides integrated support services under
Marketing, Technology, Finance and other Support service. In five location
such as (Ambattur & Annasalai) in Chennai , Trichy, Coimbatore and
Madurai NSIC office are located. The following link for more details
(http://www.nsic.co.in/Corporate/SearchBranch.aspx )

10. National SC/ST Hub :-

The National SC/ST Hub (NSSH) would provide professional support to
the SC/ST enterprises thereby enabling them to effectively participate in
public procurement process. This would involve participation by
CPSEs/Central Ministries, States, Industry Associations such as DICCI
and others. The Hub would also work towards the development of new
entrepreneurs to participate in procurement process leveraging on the
‘Stand up India’ programme. Selected entrepreneurs would be provided
with support and mentoring by industry experts, CPSEs, and incubators.
To start with, the Ministry of Micro, Small and Medium Enterprises (M/o
MSME), has made an initial allocation of Rs. 490 Crore for the period
2016-2020 for the National SC/ST Hub. Discussions with various
stakeholders have enabled the Ministry to create an initial agenda for
action on this front. While the agenda for action is flexible and would
evolve with further inputs from stakeholders and more robust data,
initially it attempts to address gaps that exist across multiple drivers of
the entrepreneurial eco-system.
The Hub would operate out of the National Small Industries Corporation
(NSIC) headquartered in Delhi, supported by a special cell created for this
purpose. All new and existing SC/ST entrepreneurs would be registered
on the MSME Databank (www.msmedatabank.in) of the Ministry of MSME
that would form a reliable database to enhance accessibility for the
procurement agencies. A separate website www.scsthub.in has been
launched to apprise the stakeholders about the activities of the Hub. For
the state of Tamil Nadu SC/ST hub is located at Chennai at MSME-
Development Institute , Guindy, Chennai – 600032.

11. Tamil Nadu Adi Dravidar Housing and Development Corporation

Limited (TAHDCO):- Tamil Nadu Adi Dravidar Housing and Development
Corporation Limited (TAHDCO) were incorporated in 1974 under the
Companies Act, 1956. The Government of Tamil Nadu and the Government
of India contribute to the Share Capital of the Corporation. At present the
Authorized Share Capital of the Corporation is Rs. 150.00 Cr and paid up
share capital is Rs.128.27 Cr. The State Govt. and the Central Govt.
contribute the share capital in the ratio of 51:49. Main Activities of the
Corporation is to implement economic development schemes for the
Welfare of Scheduled Caste / ST in the State. Also to provide skill
development training to youth belonging to Scheduled Caste and
Scheduled Tribes for job / self employment and undertake construction
activities entrusted by the Government. Office of TAHDCO is located at
No. 31, cenotaph Road, Teynampet road, Chennai 600018. For more
details visit the link : http://tahdco.com/

41
12. National Institute for Micro Small and Medium Enterprises
(NIMSME):- Since its inception in 1960 by the Government of India,
NIMSME has taken gigantic strides to become the premier institution for
the promotion, development and modernisation of the SME sector. An
autonomous arm of the Ministry of Small Scale Industries (SSI), the
Institute strives to achieve its avowed objectives through a gamut of
operations ranging from training, consultancy, research and education, to
extension and information services of the growth of MSME. The office is
located at Yousufguda, Hyderabad. For more details visit the link:
http://www.nimsme.org/

13. National Institute for Entrepreneurship and Small Business

Development (NIESBUD):- NIESBUD he National Institute for
Entrepreneurship and Small Business Development is a premier
organisation of the Ministry of Skill Development and Entrepreneurship,
engaged in training, consultancy, research, etc. in order to promote
entrepreneurship. The major activities of the Institute are Training of
Trainers, Management Development Programmes, Entrepreneurship-cum-
Skill Development Programmes, Entrepreneurship Development
Programmes and Cluster Intervention. NIESBUD has provided training to
10,94,529 persons as of March 31, 2017 through 41,483 different training
programmes since inception. This includes 4,080 international
participants hailing from more than 141 countries throughout the globe.
The office of NIESBUD is located at No A 23, Sector 62 institutional
area, Noida - 201309.

14. Indian Institute of Entrepreneurship (IIE):- Indian Institute of

Entrepreneurship is an autonomous organization under the Ministry of
Skill Development & Entrepreneurship. The main aim of the Institute is to
provide training, research and consultancy activities in Small and Micro
Enterprises (SME), with special focus on entrepreneurship
development. The Indian Institute of Entrepreneurship (IIE) registered
under the Societies Registration Act,1860 was established in the year
1993 in Guwahati by the erstwhile Ministry of Industry (now the Ministry
of Micro, Small and Medium Enterprises), Government of India. The
Institute began operating from April 1994 with the North East Council
(NEC), Governments of Assam, Arunachal Pradesh and Nagaland and
SIDBI as its other stakeholders. IIE has been transferred to the Ministry
of Skill Development & Entrepreneurship on 22nd May’2015.

15. Tamil Nadu Industrial Investment Corporation Ltd. TIIC is a

premier State Financial Corporation established in the year 1949. TIIC
fosters industrial development in Tamil Nadu by providing financial
assistance to industries for purchase of land, machinery and construction
of buildings. TIIC provides financial assistance at competitive interest rates
for setting up of new industrial units and for expansion, modernization

42
and diversification of existing industries in Tamil Nadu. It also offers loan
for service sector projects such as hotels, hospitals and tourism related
projects. While TIIC provides assistance to micro, small, medium and large
enterprises, about 90% of the assistance goes to the micro, small and
medium enterprises [MSME] sector. Of this, about 40% goes to first
generation entrepreneurs. Thus, TIIC acts as a catalyst for industrial
promotion within the State by creating a new generation of entrepreneurs.
TIIC head office is located in no. 692, Anna Salai, Nandanam, Chennai,
600035. For more details visit the link http://www.tiic.org/index.htm

16. COIR Board: Coir Board is a statutory body established by the

Government of India under a legislation enacted by the Parliament namely
Coir Industry Act 1953 (45 of 1953) for the promotion and development of
Coir Industry as well as export market of coir and coir products in India as
a whole.
Coir board has offices across India, there are two regional offices one at
no. 41, Nehru street, mahalingapuram, beside water tank polloachi
642002 and the second no pilliayarpatti,via vallam, Thanjavur located
for the state of Tamil Nadu . For more details visit the link
http://coirboard.gov.in/

43
 Chapter –IX

STEPS TO SETUP ENTERPRISES

Entrepreneurship

It is the process of planning, organizing operating and assuming the

risk of the business venture. The process involves various actions to be
undertaken to establish an enterprise. The two basic elements involved in
entrepreneurship are Innovation & Risk bearing capacity of the
entrepreneur. The ability and skill of an individual or a group of
individuals to handle these two are known as entrepreneurship.

The Qualities of an Entrepreneur

1. Creativity & Innovation

As an entrepreneur one has to develop the quality of picking up new ideas

and adopting them faster than others.

2. Risk Taking.

The first and foremost quality of an entrepreneur is risk taking. As an

entrepreneur one has to understand the truth that no venture is possible
without certain amount of risk as to take calculated moderate risk.

3. Imitative & Drive

An entrepreneur must take initiative to translate idea into action and

needs to motivate his co-workers to work for a bigger aim
4. Persistence

As entrepreneur has to take repeated and different actions to overcome

obstacles and this “persistence” must be imbedded as an important
entrepreneurial quality.

5. Information & opportunity seeking

An entrepreneur should have the habit of gathering information from all

sources and should consider express for gathering information on an
investment.

6. Concern for standard/ quality of work

By attaining certain standard of excellence in his work, an entrepreneurs

proves his worth which gives him satisfaction

44
7. Self confidence.

A successful entrepreneur believes that the events in his life are mainly
set by him. He strongly believes in himself and his abilities to achieve the
goals set by him.

8. Problem solving Orientation.

While pursing any business goal an entrepreneur makes the basic

assumption that problems are bound to be there and solving these
problems become the real pleasure for him

9. Good setting.
A successful entrepreneur has clear vision of what is to be achieved and
these goals are not only challenging but also realistic and attainable.

10. Long term commitment

As the creator and builder of an enterprise the entrepreneur makes a

commitment to a long term goal, which takes time to achieve.

THE STEPS TO BECOME AN ENTREPRENEUR

The following are the basic steps to be followed to become an entrepreneur

1. Decision to be self employed

2. Selection of the Product and production techniques
3. Location of the enterprise
4. Forms of business organizations
5. Preparation of Project report
6. Registration/Statutory Licenses / Clearances
7. Finance
8. Land and building
9. Procurement of machinery
10. Recruitment of personnel
11. Installation of Machinery
12. Power connection and water supply
13. Procurement of raw material
14. Production
15. Marketing

45
16. Costing and Pricing Policy
17. Repayment of Loan, if any
18. Profit generation
19. Avoid in Sickness
20. Modernization and Up gradation of Technology

1. Decision to be self employed.

Whether to be an employee or an employer is the most crucial decision
one has to take before planning for an investment. Having decided to
become an employer, the person has to analyse his strengths and
weaknesses, this will enable them to understand what type and size of
business would be most suitable to him. This analysis will enable them to
focus on converting their weaknesses into strength.

2. Selection of the Product and production techniques.

Depending on their capacity to raise resources, an entrepreneur needs
to select the product and production techniques. Once the firm decided on
the foremost issue of what to produce, the next important step is to take
decision on how to produce and in what quantity and for whom to
produce. The entrepreneur needs to consider the existing Government
policies before taking decision on the above aspects.

3. Location of the enterprise.

The third important decision an entrepreneur has to take is the

location of his enterprise. Before taking a decision on the location of the
plant, an entrepreneur has to consider the following aspects.

a) Nearness to market and raw materials.

b) Availability of adequate infrastructure facilities, transportation
facilities etc.
c) Availability of essential services such as power, water supply and
other facilities could be considered.
d) Availability of required skills, wge rte etc.
e) Climate conditions / environmental factors etc.
f) Govt. policies incentives and concessions applicable for industrially
backward areas etc.

46
The location aspect is not as dominant in case of micro enterprises as in
the case of large scale industries but nearness to market or raw material
source must be ensured.

4. Choosing a form of business organisation.

The ultimate choice of the form of business depends upon the

balancing of the advantages and disadvantages of the various forms of
business. The right choice of the form of the business is very crucial
because it determines the power, control risk and responsibilities of the
entrepreneur as well as the division of profit and losses. Being a long term
commitment, the choice of the form of business should be made after
considerable thought and deliberations.

The various form of business organisations are the following

a) Sole proprietorship
b) Partnership firm
c) Public Limited Company
d) Private Limited Company
e) Co-operatives
f) Joint Hindu Family Business

5. Preparation of Project Report

An entrepreneur who wants to set up an industrial unit should at

the outset, formulate a comprehensive business plan giving a total
visualisation of the firm before commencement of operations. The project
should accomplish the vital task of providing a bird’s eye view of the entire
spectrum of activity

Every business plan must have the following chapters.

1. Cover Page.

Containing name and address of the company and contact person, name
of organisations from where funding is being sought and the company logo

2. Table of contents.

A formal table of content must be written for easy navigation by

numbering each section

3. Executive Summery

It should clearly and exactly convey what you want your investors to read
and it should contain the following.

47
a) Kind of business
b) Profile of the company management
c) Financial requirement
d) Budget allocation
e) Objectives – long and short term.

4. Market Analysis

The business plan should be able to convince the investor that the
entrepreneur understands the preventing competitive environment and is
able to prove that his product / service is have substantial prospect for
growth and is capable of attaining a competitive position in the market.

5. Environmental Influences

An entrepreneur needs to evaluate the impact of the environmental,

demographic, ecological and social factors which affect your area of
business.

6. Resource requirement
Analyse the type of resource required at each stage of production such as
financial, physical technological etc.

7. Quality

Discussion the quality control measures to be put in place by the firm to

ensure quality of service / product.

8. Marketing

The entrepreneur needs to mention the strategies through which the firmn
is going to market its product

9. Sales Fore cost

A sales forecast must be there in the project it depends on the size of the
market, marketing strategy and the pricing strategy.

10. Financial Plan.

A project report should contain projected profit and loss statement and
cash flow statement.

11. Human Resources.

48
Make your organisation chart with details of key executives and profiles of
individuals likely to be hired.

12. Form of business.

Describe the legal form of the business – whether it is a sole

proprietorship or a partnership, public limited company etc.

13. Critical risk.

An entrepreneur, as a legal and moral obligation must envision the risks

the investors would be undertaking when he decides to invest in your
business

14. Conclusion

Briefly once again point out the highlights and key features of the
business plan. Also mentions the time schedule against each stage of
your venture. Along with your business plan, make sure to keep all
supporting documents such as tax returns, advertisement flow chart,
market surveys, resume of board members etc. as part of the appendixes

6. Registration / Statutory Licences/ Clearance.

Once an entrepreneur has taken all the important decision relating to

starting a business he / she has to take into account the basic regulatory
requirement which are to be followed for setting up the organisation. The
most import regulation is the companies act 1956, which regulates all the
affairs of a company it contains provision relating to the formation of a
company, powers and responsibilities of the director and managers,
raising of capital, holding company meeting maintenance and audit of
company accounts, power of inspection and investigation of company
affairs reconstruction and amalgamation of a company and even winding
up of a company. The Ministry of Corporate Affairs is primarily concerned
with administration of this Act as well as other allied Acts, rules and
regulations framed under these. The next important regulations related to
environment. The environmental regulatory requirement envisage a wide
legislative framework covering every aspect of environment protection like
air, water, noise, forest conservation, wild life protection etc.

Also separate set of laws and rules for emission of hazardous waste gave
been enacted and the Ministry of Environment and Forest is the nodal
agency for regulating all such environmental aspects. Every Industry has
to abide by all such guidelines and parameters for environmental
protection.

49
7. Finance

A business firm requires finance to commence its operations, to continue

its operations and for its expansion and growth as Finance is the lifeline of
business. There must be continuous flow of funds in and out of business.

The financial plan of an enterprise should be formulated by taking

into consideration the following factors:

1. The financial objectives of the company

2. Nature and size of the business
3. The image and credit worthiness of the enterprises\
4. Growth and expansion plans.
5. Capital market trends
6. Government regulation

8. Land and Building

Once the location for setting up of the Industry is finished, the

entrepreneur shall approach the concerned authority for acquisition of the
plot of land. Before commencing the construction activities, the
entrepreneur should obtain necessary license from the local authorities
and should also ensure that the plan of the building meets the norms.

9. Procurement of Machinery

The next important step is procure the machineries and equipments

needed for the production. These can be procured either, domestically or
through import from other countries. The imports are regulated by the
Foreign Trade (Development and Regulation) Act. 1992. According to the
Act, the Director General of Foreign Trade (DGFT) shall advise Central
Government in formulating expert and import policy and in its
implementation

Before selection of equipment and machinery an entrepreneur has to

collect more information about the machinery and equipments by
interacting with experts, suppliers and those who are already using the
product.

10. Recruitment of Personnel

Even single proprietary concerns cannot be sum with the sole owner doing
all activities. Depending on the size and nature of the industry, skilled
and unskilled workers would have to be recruited to run an industry.
After making realistic assessment of the actual manpower requirement of

50
an enterprise, suitable arrangements should be made for recruitment of
personnel. Besides, the selected technical personnel should possess
certain basic skills such as.

a) Technical knowledge related to the job

b) Relevant and adequate experience\
c) Academic Knowledge
d) Ability to express ideas.

The hiring process involves 4 main steps

a) Manpower planning
b) Recruitment
c) Selection
d) Placement

Each of these steps and sub steps help the employees to obtain more
information about the candidates and thus help in obtaining the best
possible manpower of the firms.

11. Installation of Machinery

Prior to the installation of machinery, the entrepreneur should formulate a

suitable layout which would facilitate production operations in the best
possible manner. Another basic important aspect is the plant layout.
This is to ensure that the machinery planned for can be installed in the
given area of the premises proposed.

12. Power Connection / Water Supply

For any business concern to function properly they need utilities such as
power connection water supply, fuel etc. The entrepreneur has to assess
the requirement of such utilities and make arrangement for it.

13. Procurement of Raw Materials.

The new entrepreneur will have to ensure timely flow of raw materials in
anticipation of actual requirement launching his new product into the
market. He has to keep more source of supply of the required raw
materials, instead of depending on a single source of supply.

Raw materials can be procured either from domestic market or from

foreign market. Whatever be the source of raw materials it must be
bought from reputed dealers / agencies only. Before ordering, compare
the prices from at least 3-4 places and also check whether price is
inclusive or exclusive of transportation cost and while receiving the
delivery, check the q quality and quantity of the materials.

51
14. Production
It is necessary to have well coordinated services of functions according to
a well formulated plan which will economically utilise the plant facilities
and regulate the orderly movement of goods through this entire
manufacturing cycle from the procurement of raw materials to the
transportation of finished products.

Production of quality products and elimination of defects/rejects are the

foremost responsibilities of the entrepreneur and he should be fully
conversant with the methods of testing.

15. Marketing

Marketing is essentially an entrepreneurial function. Every entrepreneur

should know that he should be able to sell what he produces. Those who
augment their sales volume should be able to realise the present demand
and the potential.

The following are the important direct promotion Techniques

a) Displays and Models

b) Advertising
c) Publicity
d) Sales connected with special events
e) Personal selling tactics

These are the indirect promotion techniques

a) Customer Service
b) Public Relations
c) Product design /style / packaging etc.
d) Goodwill of the company.

16. Pricing Policy

Fixing the right price for a product is the most difficult task as it affects
the sales of the product and thereby the profit of the firm. Price still
remains one of the most important factor in determining the market share
and profitability though non price factors have become more important in
recent years. Hence, price of the product should be set by a firm by
taking into consideration factors such as cost, profit target, completion
etc. The following are the various pricing methods prevailing now.

a) Perceived Value Pricing

52
It is a method in which a firm sets its price in relation to the value
delivered and perceived by the customer. It is made up of several factors
like product performance, performance warranty, trustworthiness etc.

b) Value Pricing
It is a method in which companies develop brand loyalty of their product
by changing of fairly low price for the high quality offering

c) Going Rate Pricing.

In this method the firms base their price on competition price by changing
the same or less than the major competitor.

d) Introducing a product at a premium price.

When a innovative product introduced in the market the company can
change a premium or a higher price. But as soon as the substitutes arrive
in the market, the company will be forced to reduce the price.

e) Ethical pricing
In this method, the product is sod at the lowest possible price with either
a very small margin or without it. The price is fixed by keeping the welfare
of the society in mind.

f)Full Line Pricing

If you sell a range of particular product ex. Pickle and you price the
product in different range. This way you can get more profit on one
flavour and les on another. But you cannot well only the one that gives
you more profit or else customers may switch over to another brand where
he would be able to exercise an option for other flavours.
17. Repayment of Loan (If Any)

Normally banks and other lending institutions insist as repayment of loan

amount along with interest charges by the barrower as per the repayment
schedule formulated in respect of project. The new entrepreneur should
endeavour to infuse confidence the minds of the bankers by his qualities
of creditworthiness, sincerity and business ethics ad by adhering to the
prescribed schedule of repayment.

18. Profit Generation

Earning profit is the best satisfying and most important motive of starting
a business. Hence an entrepreneur should possess accurate data
regarding the cost of production to check on costs. If profits and not
generated as predicted, he should find out the reasons for it and try to
minimise his costs and adjust his production volume.
19. Avoiding Sickness

53
Avoiding sickness is one of the important thing that an entrepreneur has
to do to continue his business and success. Some new entrepreneurs
make some mistakes which make the unit sick and threaten its very
existence. The following are the mistakes which need to be avoided by
entrepreneurs.

a) Lack of understanding in the particular line of production

b) Poor assessment of market potential for the products/ services
c) Lack of adequate accounting system
d) Faulty capital planning
e) Inadequate knowledge of tax related matters
f) Scarcity of raw materials
g) Inventory mismanagement

20. Modernisation and Technology Upgradation

The entrepreneur should be able to keep a close watch on the technology

which is fast changing. An entrepreneur should be able to switch over to
new techniques of production depend on changes in consumer preferences
and changes in market conditions. As the entrepreneurs increase his
profit, he should try to expand his business and diversify into new areas
and his previous experience enable him to do this easily.

The following are the important contact address of Central and State
Government Offices for guidance.

Sl. NATURE OF ASSISTANCE DEPARTMENT / AGENCY ASSISTANCE

No.

1 Guidance on product The Director MSME Development

identification / Selection / Institute, 65/1, GST Road, Guindy,
Chennai-600 032, Ph: 22501011-3 lines,
22502416, 222501785 Fax: 222501475,
222501014 Email: dcdi-
[email protected] web site:
www.msmedi-chennai.gov.in

2 Training Technical The General Manager

Consultation District Industries Center,
Master Plan Complex,
Nagapattinam-611003
Phone No: 04365-251170.
Mobile No: 9444577346
E mail – [email protected]
3 License for Compulsory Secretariat for Industrial Assistance,
Department of Industrial Policy&

54
 Licensable items Promotion, Ministry of Commerce &
Industry Udyog Bhavan, New Delhi - 110
011. Ph: +91-11-23011983 +91-11-
23011983 Fax : +91-11-23011034 Email:
[email protected]

4 Corporation / Local body Commissioner or Secretary of the

license concerned local body

5 Plan Permit Local Planning Authority, Nagapattinam

6 Registration under Inspector of Factories, No.2, Swamy mada

Factories Act. (for units Street, Thiruvarur. 04366-242327,
employing 10 or more 9445869257,9443169881
workers with power)

7 Register under pollution Tamilnadu Pollution Control Board,

control rules No.14, Perumal sannathi street,
Nagapattinam – 611 001.
Email ID : [email protected]
Phone: 04365 – 221832

District Environmental Engineer, Tamil

Nadu Pollution Control Board, No.14,
Perumal Sannathi Street, Nagapattinam -
611001.
Phone : 04365 - 221832
Email ID : [email protected]

8 Registration with Fire & District Fire Officer,

Rescue Services Nagapattinam 611 001.
Ph: 04365 – 249409, 9445086428
9 Licensing by Health The Designated Officer,
Department for Food Tamil Nadu Food Safety & Drug
Products Administration Dept.,
Government Head Quarters Hospital
campus ,Nagapattinam
Ph:04365-247060, 9442628185
Email:[email protected]
10 FSSAI. - License (for fruits Food Safety & Standard Authority of
& Vegetable Processing India, Rajaji Bhavan, Basant Nagar,
Units & Beverages Chennai-600090 Ph : 044- 24463569
manufacturers)

11 Food Safety and Standards Shastri Bhawan, 4th Floor, 6th Block, 26,
Authority of India, Ministry Haddows Road, Chennai-600006 Tele-

55
 of Health and Family 044- 28271738 (M)-944420192
Welfare of India, C/O
Directorate of Marketing &
Inspection

12 Drug License for Drugs and Asst. Director of Drugs Control 259-261,
Cosmetic Products Anna Salai, DMS Complex, Chennai-6. Ph
: 044-24328734, FREE 044-24328734,
24321337 ph : 044-24335068 , 044-
24335068, 24335201

13 Patents & Designs The Patents Office, Intellectual Property

Registration Sr. Joint Office Building, G.S.T. Road, Guindy,
Controller of Patents & Chennai-600032, Ph: 044-22502080, Fax:
Designs 044-22502066, Email: chennai-
[email protected], Email: chennai-
[email protected]

14 Trade Mark Registration Assistant Registrar of Trade Marks Trade

Marks Registry, Intellectual Property
Office Building G.S.T. Road, Guindy,
Chennai 600032, Ph : 044-22502044
Fax:044-22502046 Email:
[email protected]

15 Import-Export (I.E.) Code Office of Zonal Joint Director General of

Number Foreign Trade 4th & 5th Floor, Shastri
Bhawan Annex, 26, Haddows Road,
Chennai - 600 006 Ph: 044- 28283404,
044- 28283404 / 08 Fax: 044 - 28283403

16 ISI MARK Management Systems Certification Officer,

Bureau of Indian Standards, C.I.T.
Campus, IV Cross Road, Chennai-600 113
Ph: 044-22541442, 044-22541442,
22542315, 22541311, Fax: 91-044-
22541087, 22541087 Web:www.bis.org.in
Email: [email protected] , [email protected].

17 Registration under GST Asst. Commissioner Commercial Taxes

Building Greams Road, Chennai 600 006.
Ph: 044-28295695 044-28295695

18 Central Exercise Assistant Commissioner (Customs)

4, First Line Beach Road,
Nagapattinam – 611 011.
Ph: 04365 242791
19 Registration under Service Commissioner of Service tax ‘Newry
tax Towers”, 2054, First block, II Avenue,
12th Main road, Anna nagar, Chennai –
40. Ph: o44-26142850, 044-26142851

56
 044-26142852, 044-26142853 Help
Desk:- 044-26142858/044-26142868

20 INCOM TAX Income Tax Office

81, Salt Rd, Nagapattinam, Tamil Nadu
611003
Ph:04365 224 274
21 Factory Accommodation / Tamil Nadu Small Industries Development
Industrial plots and sheds Corporation Limited, Industrial Estate,
Guindy, Chennai - 600 032. Ph:
22501461, 22501422/0185/0506/1210,
Fax: 22500792 Email: [email protected],
[email protected]

22 Power Connection Superintendent Engineer of the Concerned

EB office

For Financial Assistance

23 Tamil Nadu Industrial Branch Manager, Tamil Nadu Industrial

Investment Corporation Investment Corporation
(TIIC),
473, Anna Salai, Nandanam, Chennai-
600 035 Ph: 044 – 24330689, 044 -
24330689, 24331485, 24331498,
24331203, Fax: 044-24347209

Branch Manager, SIDCO

Industrial Estate, Nanjikottai Road,
Thanjavur. Ph: 04362 - 255220
24 NABARD District Development Manager
Nagapattinam District Development Office
(NABARD)
No.709, Main Road South Palpannaicherri
Opposite to District Sports Complex
Nagapattinam.
Tamil Nadu. -611003
Contact No. : 4365-250922
Contact No. : 9791137922
Email Id: [email protected]

25 Unemployed Youth The General Manager

Employment Generation District Industries Center,
Programme (UYEGP) New Master Plan Complex,
Entrepreneur Enterprise Nagapattinam-611003
Development Scheme Phone No: 04365-251170.
(NEEDS) Mobile No: 9444577346
E mail – [email protected]
26 Prime Minister’s State Director, Khadi and Village
Employment Generation Industries Commission, 236, Avvai

57
 Programme Shanmugam Road, Gopalapuram,
Chennai - 600 086 Ph: 044 – 28351019,
044 – 28351019, Fax No: 044 - 28351697

27 Finance for SC/ST Managing Director, Tamil Nadu Adi

beneficiaries Dravidar Housing & Development
Corporation Ltd., Tamil Nadu Housing
Board, Shopping Complex, 2nd Floor,
Thirumangalam (Anna Nagar), Chennai-
600 040.

58
 Chapter- X

IMPORTANT SCHEMES AND PERFORMANCE

Unemployment is a basic economic problem of India. It is considered to be

the greatest obstacle in the way of economic development of our country.
Had this problem been solved, the economic scenario of India would have
been changed dramatically. Government of India and State Governments
have ever been very serious about this problem. All the five year plans
completed so far in the country have concentrated upon this problem. A
number of measures have been taken and a number of programmes have
been launched with a view to encourage self employment to eradicate or at
least to minimize the problem of unemployment. In this chapter, we shall
discuss some of these programmes, which are particularly aimed at
reducing unemployment by providing technical and financial support to
new and existing entrepreneurs and which are in operational now a day.

Prime Minister’s Employment Generation Programme (PMEGP)

Government of India has approved the introduction of a credit linked

subsidy programme known as Prime Minister’s Employment Generation
Programme (PMEGP) by merging the two schemes that were in operation
till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural
Employment Generation Programme (REGP) for generation of employment
opportunities through establishment of micro enterprises in rural as well
as urban areas. PMEGP will be a central sector scheme to be administered
by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The
Scheme will be implemented by Khadi and Village Industries Commission
(KVIC), a statutory organization under the administrative control of the
Ministry of MSME as the single nodal agency at the National level. At the
State level, the Scheme will be implemented through State KVIC
Directorates, State Khadi and Village Industries Boards (KVIBs) and
District Industries Centres (DICs) and banks. The Government subsidy
under the scheme will be routed by KVIC through the identified Banks for
eventual distribution to the beneficiaries/entrepreneurs in their Bank
accounts.

Objectives

(i) To generate employment opportunities in rural as well as urban areas of

the country through setting up of new self employment ventures

(ii) To bring together widely dispersed traditional artisans/ rural and

urban unemployed youth and give them self-employment opportunities to
the extent possible, at their place.

(iii) To provide continuous and sustainable employment to a large segment

of traditional and prospective artisans and rural and urban unemployed
youth in the country, so as to help arrest migration of rural youth to
urban areas.

59
(iv) To increase the wage earning capacity of artisans and contribute to
increase in the growth rate of rural and urban employment.

Nature of assistance

The maximum cost of the project/unit admissible under manufacturing

sector is Rs.25 lakh and under business/service sector is Rs.10 lakh.

Who can apply?

Any individual above 18 years. For projects costing above Rs.10 lakh in
the manufacturing sector and above Rs. 5 lakh in the business / service
sector, the candidate should at least pass VIII standard. Only new projects
are considered for sanction under PMEGP. Self Help Groups (including
those belonging to BPL provided that they have not availed benefits under
any other Scheme), Institutions registered under Societies Registration
Act, 1860; Production Co-operative Societies, and Charitable Trusts are
also eligible.

The following table shows the achievement of PMEGP for the Year 2019-
2020 in Tamil Nadu and Thanjavur District.

Achievement

Tamil Nadu Thanjavur

Projects Margin Applicatio Projec Margin Applicatio

sanction Money ns ts Money ns
ed by Disburseme pending Disburseme pending
Bank nt (in Lakh) at Bank nt (in Lakh) at Bank

5383 12273.54 3289 173 328.32 296

Project in No’s and MM in Lakh Rupees

New Entrepreneur -Cum- Enterprise Development Scheme (NEEDS)

Under this scheme, educated youth will be given entrepreneur training,

assisted to prepare their business plans and helped to tie up with
financial institutions to set up new business ventures, besides linking
them with major industrial clients. They will be assisted to avail term
loans from Banks/Tamil Nadu Industrial Investment Corporation (TIIC)
with capital subsidy at 25% of the project cost not exceeding Rs.25 lakhs
and soft loans with 3% interest subvention. Around 1,000 entrepreneurs
will be trained each year under this scheme. Under this scheme, at least
50% of the beneficiaries will be women. The scheme aims to provide
training to young first generation entrepreneurs in conceiving, planning,
initiating and launching a manufacturing or service enterprise
successfully. Educated youth with any Degree, Diploma, ITI / Vocational
Training from recognized Institutions, aspiring to become entrepreneurs
would be eligible for assistance under the scheme. The Industries

60
Commissioner and Director of Industries and Commerce would be overall
in-charge of implementation of the scheme under the supervision of the
Principal Secretary, Micro, Small and Medium Enterprises Department,
Government of Tamil Nadu.

Objectives

(i) Educated youth will be given entrepreneurship training to groom them

as first generation entrepreneurs on the essentials of conceiving, planning,
initiating and launching a manufacturing or service enterprise
successfully.

(ii) On completion of the training program they would be assisted to

prepare their business plans and helped to tie up with financial
institutions to get term loan, to set up manufacturing or service
enterprises with a project cost not exceedingRs.1.00 crore and capital
subsidy of 25% of project cost not exceeding Rs.25.00 lakhs with 3%
interest subvention to be provided by the State Government.

(iii) Subject to availability, they would also be provided with reservation up

to 25% for allotment of Plots / Sheds in SIDCO Industrial Estates in the
State.

Who can apply?

TO AVAIL LOAN ASSISTANCE WITH SUBSIDY UNDER NEW

ENTREPRENEUR CUM ENTERPRISE DEVELOPMENT SCHEME(NEEDS)
Individual / Partners Should Be First Generation Entrepreneur
Educational Degree / Diploma / ITI or Vocational Training from the
Qualification recognized Institution
Annual Family
No Ceiling
Income
Minimum 21 Years
Maximum for General Category 35 Years
Age Limit Minimum for Special Category
(SC/ST/BC/MBC/MINORITIES/Ex-
45 Years
Servicemen/Differently
abled/Transgender)

The following table shows the performance of NEEDS in Tamil Nadu

(2018-19).

Abstract and Status of NEEDS for 2018-19 (in Lakh)

NEEDS Scheme Financial Allocation Achievement

Tamil Nadu 6038.74 5887.05

Thanjavur 171.46 171.33

61
Unemployed Youth Employment Generation Programme (UYEGP)

The Micro, Small and Medium Enterprises Department, Government of

Tamil Nadu introduced the scheme “Unemployed Youth Employment
Generation Programme (UYEGP)” which aims to mitigate the
unemployment problems of socially and economically weaker section of
the society, particularly among the educated and unemployed to become
self employed in their native places itself and to prevent the mass
migration from rural areas to urban areas due to unemployment by
setting up Manufacturing / Service / Business enterprises by availing
loan up to the maximum of Rs.10 Lakhs, Rs. 3 Lakhs and Rs. 1 Lakh
respectively with subsidy assistance from the State Government up to
25% of the project cost (Maximum to a limit of Rs.1.25 Lakhs). The
Commissionerate of Industries and Commerce is the Nodal Agency at
State level to implement the scheme across the state. The scheme is
applicable to all areas in the State including rural and urban areas.

Objectives

(i) To generate employment opportunities for the educated unemployed in

their native places itself, by setting of self employment ventures in Micro
enterprises in Manufacturing Service and Business sectors.

(ii) Preventing mass migration from rural areas to urban areas due to
unemployment.

(iii) To provide livelihood opportunities to the marginalized people in rural

and urban areas.

(iv) To facilitate provision of collateral free advances under Credit

Guarantee Trust for Micro, Small Enterprises (CGTMSE) dovetailing under
Unemployed Youth Employment Generation Programme.

The following table shows the performance of UYEGP in Tamil Nadu

(2018-19).

Status of UYEGP Applications for FY 2018-19

UYEGP Scheme NOs. Subsidy (in Lakh)

Tamil Nadu 37880 18698.15

Thanjavur 1292 547.01

Credit Guarantee Fund Trust for Micro and Small Enterprises

(CGTMSE)

Availability of bank credit without the hassles of collaterals / third party

guarantees would be a major source of support to the first generation

62
entrepreneurs to realize their dream of setting up a unit of their own Micro
and Small Enterprise (MSE). Keeping this objective in view, Ministry of
Micro, Small & Medium Enterprises (MSME), Government of India
launched Credit Guarantee Scheme (CGS) so as to strengthen credit
delivery system and facilitate flow of credit to the MSE sector. To
operationalise the scheme, Government of India and SIDBI set up the
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

CGTMSE has introduced a new "Hybrid Security" product allowing

guarantee cover for the portion of credit facility not covered by collateral
security. In the partial collateral security model, the MLIs will be allowed
to obtain collateral security for a part of the credit facility, whereas the
remaining part of the credit facility, up to a maximum of 200 lakh, can be
covered under Credit Guarantee Scheme of CGTMSE. CGTMSE will,
however, have pari-passu charge on the primary security as well as on the
collateral security provided by the borrower for the credit facility.

The main objective is that the lender should give importance to project
viability and secure the credit facility purely on the primary security of the
assets financed. The other objective is that the lender availing guarantee
facility should endeavor to give composite credit to the borrowers so that
the borrowers obtain both term loan and working capital facilities from a
single agency. The Credit Guarantee scheme (CGS) seeks to reassure the
lender that, in the event of a MSE unit, which availed collateral free credit
facilities, fails to discharge its liabilities to the lender, the Guarantee Trust
would make good the loss incurred by the lender up to 50/75/80/85 per
cent of the credit facility.

The extent of guarantee cover is 85% for micro enterprises for credit up
to 5 lakh. The extent of guarantee cover is 50% of the sanctioned amount
of the credit facility for credit from 10 lakh to 100 lakh per MSE borrower
for retail trade activity.

The extent of guarantee cover is 80% for

(i) Micro and Small Enterprises operated and/or owned by women; and

(ii) All credits/loans in the North East Region (NER) for credit facilities
up to 50 lakh.

In case of default, Trust settles the claim up to 75% of the amount in

default of the credit facility extended by the lending institution for credit
facilities up to 200 lakh.

Now CGTMSE has brought in the following major policy changes to

enhance the usage, simplifying the existing procedures of guarantee
coverage and claim settlement and thereby increase the flow of credit to
MSEs.

 Inclusion of retail trade as an eligible activity

 Allowing partial collateral security under CGS

63
 Charging of guarantee fee on outstanding loan amount instead of
sanctioned amount

 Increase in coverage to 75% for loans above Rs 50 Lakhs

 Inclusion of Small Finance Banks(SFBs) and NBFCs as its Multiple

Link Interface.

 Enhancing IT infrastructure of the Trust to improve operational

efficiencies and reduce the turnaround time for guarantee coverage and
claim.

Credit Linked Capital Subsidy Scheme for Technology Upgradation

(CLCSS)

The objective of the Scheme is to facilitate technology up-gradation in

MSEs by providing an upfront capital subsidy of 15 per cent (on
institutional finance of up to Rs 1 crore availed by them) for induction of
well-established and improved technology in the specified 51 sub-
sectors/products approved. In other words the major objective is to
upgrade their plant & machinery with state-of-the-art technology, with or
without expansion and also for new MSEs which have set up their
facilities with appropriate eligible and proven technology duly approved
under scheme guidelines. List of Technologies is available at
www.dcmsme.gov.in

The Scheme is a demand driven one without any upper limit on overall
annual spending on the subsidy disbursal.

Nature of assistance:

The revised scheme aims at facilitating technology up-gradation by

providing 15% up front capital subsidy to MSEs, including tiny, khadi,
village and coir industrial units, on institutional finance availed by them
for induction of well established and improved technologies in specified
sub-sectors/products approved under the scheme.

Who can be benefitted?

Micro and Small Enterprises (MSEs) having a valid UAM number.

How to apply:

Online Application and Tracking System has been introduced w.e.f.

01.10.2013. To claim subsidy under CLCSS, eligible MSEs are required to
apply online through Primary Lending Institutions (PLIs), from where the
MSEs avail term loan. The completed application is being uploaded by the
Primary Lending Institutions (PLI) through Online Application and
Tracking System to the attached Nodal Agency which, in turn,
recommends the application online to Office of DC (MSME) for release of
subsidy. After processing of application and subject to availability of
funds, due approval is accorded from the Competent Authority with

64
concurrence of Internal Finance Wing, after which funds are released to
Nodal Agencies. Funds are then transferred by the Nodal Agencies to the
Primary Lending Institutions (PLIs) where the account of the MSE is
operated.

Pradhan Mantri MUDRA Yojana (PMMY)

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the

Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh
to the non-corporate, non-farm small/micro enterprises. These loans are
classified as MUDRA loans under PMMY. These loans are given by
Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs
and NBFCs. The borrower can approach any of the lending institutions
mentioned above or can apply online through this portal. Under the aegis
of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore'
and 'Tarun' to signify the stage of growth / development and funding
needs of the beneficiary micro unit / entrepreneur and also provide a
reference point for the next phase of graduation / growth.

The progress of Pradhan Mantri MUDRA Yojana (PMMY) for the FY 2019-
20 in Tamil Nadu and in the District of Thanjavur is shown in the
following tables.

Shishu in Tamil Nadu (Nos. in Shishu in Thanjavur (Nos. in actual

actual & amount Rs. In Crore) & amount Rs. In Crore)

No. of Sanctioned Disbursement No. of Sanctioned Disbursement

accounts Amount Amount accounts Amount Amount

6405139 21241.93 21216.35 182814 551.54 550.68

Kishore in Tamil Nadu (Nos. in Kishore in Thanjavur (Nos. in actual

actual & amount Rs. In Crore) & amount Rs. In Crore)

No. of Sanctioned Disbursement No. of Sanctioned Disbursement

accounts Amount Amount accounts Amount Amount

574390 7988.41 7771.78 10966 123.45 118.43

Tarun in Tamil Nadu (Nos. in actual Tarun in Thanjavur (Nos. in actual

& amount Rs. In Crore) & amount Rs. In Crore)

No. of Sanctioned Disbursement No. of Sanctioned Disbursement

accounts Amount Amount accounts Amount Amount

141463 5786.94 5637.89 5025 98.43 95.43

65
PMMY in Tamil Nadu (Nos. in actual PMMY in Thanjavur (Nos. in actual
& amount Rs. In Crore) & amount Rs. In Crore)

No. of Sanctioned Disbursement No. of Sanctioned Disbursement

accounts Amount Amount accounts Amount Amount

7120992 35017.28 34626.02 198805 773.42 764.54

Source: SLBC Tamil Nadu 162nd & 163rd Sub Committee on Credit Flow

Stand Up India Scheme

Stand-Up India Scheme Facilitates bank loans between 10 lakh and 1

Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST)
borrower and at least one woman borrower per bank branch for setting up
a Greenfield enterprise. This enterprise may be in manufacturing, services
or the trading sector. In case of non-individual enterprises at least 51% of
the shareholding and controlling stake should be held by either an SC/ST
or woman entrepreneur. The progress of Stand-Up India Scheme in Tamil
Nadu and in Thanjavur (FY 2019-20) is shown in the table below.

SUI in Tamil Nadu (Amount Rs. In SUI in Thanjavur (Amount Rs. In

Crore) Crore)

NO.OF DISBURSEMENT NO.OF DISBURSEMENT

APPLICATIONS AMOUNT APPLICATIONS AMOUNT

1529 192.26 27 0.94

Source: SLBC Tamil Nadu 162nd & 163rd Sub Committee on Credit Flow

66
 Chapter – XI

Additional Information

Annex-I

Address of Central and State Government Offices in Tamil Nadu

Sl. Name Addresses Contact

No.

1 MSME 65/1, GST Road, Ph: 22501011-13, 22502416,

Development Guindy, Chennai- 222501785 Fax: 222501475,
Institute, 600 032, 222501014
Chennai Email: dcdi-
[email protected]

2 Khadi and 326, Awai Phone: 044- 044-2835 1019

Village Shanmugam Email: [email protected]
Industries Road,Gopalapura
Commission m, Chennai-600
(KVIC) 086
Tamil Nadu
(State Office)

3 COIR BOARD Coir Board, Tel /Fax: +91-04362-264655

Regional Pillaiyarpatti
Extension Email:
Centre Via Vallam [email protected]
Thanjavur-
613403

4 Address of Coir Opp. Vanavil Co- Phone: +91-44-24349123

Board optex, Email:
Showroom at Teynampet, 578, [email protected]
Chennai Mount Road, Contact Person: Mr.Prakasan
Anna Salai, Parammel
Chennai-600018 Mob: 9444911495
5 National Small NSIC Limited Tel.: 044-
Industries Branch Office New 28293347/28294541/2829406
Corporation No 422(Old No 6/28292056
(NSIC) 615),Anna Salai, Fax: 044-28295791
Chennai – Email: [email protected]
600006,(Tamil
Nadu )

67
6 Small 421, Anna Salai,
Industries CIT Nagar East,
Development Nandanam, Phone: 044 2841 3929.
Bank of India Chennai, Tamil
(SIDBI) Nadu 600035

7 Reserve Bank 16, Rajaji Salai, Phone: 044 2539 9222.

of India (RBI) Fort Glacis,
Chennai, Tamil
Nadu 600001

8 National Bank No. 48, Uthamar Phone: 044 2827 6088

for Agriculture Gandhi Rd, Subba
and Rural Road Avenue,
Development Nungambakkam,
(NABARD) Chennai, Tamil
Nadu 600034

9 Secretariat for Udyog Bhavan, Phone: +91-11-23011983 +91-

Industrial New Delhi - 11-23011983 Fax : +91-11-
Assistance, 110011 23011034
Department of Email: [email protected]
Industrial
Policy&
Promotion,
Ministry of
Commerce &
Industry

10 Regional Joint Thiru Vi Ka Phone: 044- 22501620 / 21 /

Director, Industrial Estate 22
Directorate Of (SIDCO), Guindy, Email:[email protected]
Industries & Chennai - 600
Commerce 032.

11 Chennai Thalamuthu Phone 28414855

Metropolitan Natarajan Fax: 28548416
Development Building Gandhi- Web: www.cmdachennai.org
Authority Irwin Road, Email: Member-Secretary:
Chennai 600 008. [email protected]
Vice-Chairman:
[email protected]
12 Inspector of 617, Bharath .
Factories Kumar Bhavan,

68
 Anna Salai,
Chennai 600 006.

13 Food Safety & Rajaji Bhavan, Phone : 044- 24463569

Standard Basant Nagar,
Authority of Chennai-600090
India,

14 Food Safety Shastri Bhawan, Tele-044-28271738

and Standards 4th Floor, 6th Mob: 944420192
Authority of Block, 26,
India, Ministry Haddows Road,
of Health and Chennai-600006
Family Welfare
of India, C/O
Dte. of
Marketing &
Inspection

15 Drug License Asst. Director of Phone : 044-24328734, 044-

for Drugs and Drugs Control 24328734, 24321337 ph : 044-
Cosmetic 259-261, Anna 24335068 , 044-24335068,
Products Salai, DMS 24335201
Complex,
Chennai-6.

16 The Patents Intellectual Phone: 044-22502080, Fax:

Office & Trade Property Office 044-22502066, Email: chennai-
Mark Building, G.S.T. [email protected], Email: chennai-
Registration Road, Guindy, [email protected]
Chennai-600032.

17 Import-Export Office of Zonal Phone: 044- 28283404, 044-

(I.E.) Code Joint Director 28283404 / 08 Fax: 044 –
Number General of Foreign 28283403
Trade 4th & 5th
Floor, Shastri
Bhavan Annex,
26, Haddows
Road, Chennai -
600 006

18 Management C.I.T. Campus, IV Ph: 044-22541442, 044-

Systems Cross Road, 22541442, 22542315,
Certification Chennai-600 113 22541311, Fax: 91-044-
Officer, Bureau 22541087, 22541087
of Indian
Standards Email:[email protected],
[email protected].

69
19 GST Asst. Ph: 044-28295695
Commissioner 044-28295695
Commercial Taxes
Building Greams
Road, Chennai
600 006.

20 Registration Commissioner of Phone: o44-26142850, 044-

under Service Service tax ‘Newry 26142851 044-26142852, 044-
tax Towers”, 2054, 26142853 Help Desk:- 044-
First block, II 26142858/044-26142868
Avenue, 12th
Main road, Anna
nagar, Chennai –
40

21 Tamil Nadu Branch Manager, Phone: 044 – 24330689, 044 -

Industrial Tamil Nadu 24330689, 24331485,
Investment Industrial 24331498, 24331203, Fax: 044-
Corporation Investment 24347209
(TIIC), Corporation

473, Anna Salai,

Nandanam,
Chennai- 600 035

22 Managing Tamil Nadu

Director, Tamil Housing Board,
Nadu Adi Shopping
Dravidar Complex, 2nd
Housing & Floor,
Development Thirumangalam
Corporation Ltd (Anna Nagar),
Chennai-600 040.

70
 Annex-II

Important Contact Details for Thanjavur District

Sl. No Nature of Assistance Department to Contact

1. Product Identification / Director
Selection/Training MSME DEVELOPMENT INSTITUTE,
65/1, GST Road, Guindy,
Chennai-600 032 Ph: 22501011-
3 lines, 22502416, 22501785
Fax: 22501475, 22501014
Email: [email protected]
Web : www.msmedi-chennai.gov.in

The General Manager, District

Industries Centre, 45/1-13,
Nanjikottai Road, Thanjavur – 613
006. [email protected]
Phone – 04362 – 255318, 255080.
2. Technical Guidance The General Manager,
District Industries Centre,
45/1-13, Nanjikottai Road,
Thanjavur – 613 006.
[email protected]
Phone – 04362 – 255318, 255080,
Online filing :
www.msmeonline.tn.gov.in

3. License for Compulsory Licensable items Department of

Secretariat for Industrial Industrial Policy & Promotion,
Assistance Ministry of Commerce & Industry,
Udyog Bhavan, New Delhi- 110 011.
Ph: +91-11-23011983, Fax: +91-11-
23011034
Email: [email protected]

4. Municipal / Local Body Concerned Local Body – Corporation

Licence Municipality, Panchayat Union
concerned

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5. Plan permit . Local Planning Authority,
Thanjavur

6. Registration under Inspector of Factories Act. (for units

Factories employing 10 76, Arulananda Nagar
1st Cross
Thanjavur 613 007.
or more workers with power)
Ph: 04362-235469

7. Registration under District Environmental Engineer,

Pollution control Rules Tamilnadu Pollution
Control Board,
Easwari Nagar, Medical College Road
Thanjavur 613 004.

8. Registration with Fire & Divisional Fire Officer,

Rescue Services Fire Services,
Palace Building, East Main Street,
Thanjavur 613 007.

9. Licensing by Health Deputy Director

Department – for Food District Health Office
Products Gandhiji Road, Thanjavur 613 001.
04362-273503

10. Food Safety and Standard Rajaji Bhavan, Basant Nagar,

Office of the Deputy Chennai-600090
Director Ph: 044-24912421 Fax: 044-
License Food Safety & 24912421
Standard Authority of
India

11. Drug License for Drugs Asst. Director of Drug Control,

and Asst. Director of Drug Thanjavur Zone
Control No.1 & 2, TPS Nagar, MC Road
Cosmetic Products Thanjavur 613007.

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12. Patents & Designs Sr. Joint Controller of Patents &
Registration Designs
The Patents Office,
Intellectual Property Office Building,
G.S.T. Road, Guindy,
Chennai-600032.
Ph: 044-22502080, Fax: 22502066,
Email: [email protected]

13. Trade Mark Registration Assistant Registrar of Trade Marks

Trade Marks Registry,
Intellectual Property Office Building
G.S.T. Road, Guindy, Chennai
600032.
Ph: 044-22502045 , Fax:044-
22502046
Email: [email protected]

14. Import-Export (I.E.) Code Office of Zonal Joint Director General

Number of Foreign Trade
4th & 5th Floor,
Shastri Bhavan Annex, 26, Haddows
Road,
Chennai - 600 006 .
Ph: 044- 28283404 / 08 Fax: 044 -
28283403
Email: [email protected]

15. ISI Mark Management Systems Certification

Officer,
Bureau of Indian Standards,
C.I.T. Campus, IV Cross Road
Chennai-600 113
Ph : 044-22541442, 22542315,
22541311,
Fax : 91-044-22541087, 22541087
Email : [email protected],
[email protected]

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16. Income Tax Joint Commissioner of Income Tax
65, Arulananda Nagar,
III Cross Street,
Thanjavur 613007.
Ph: 04362-378411
INFRASTRUCTURE
17. Factory Accommodation General Manager,
Industrial Plots / Sheds Tamilnadu Small Industries
(SIDCO) Development
Corporation Limited,
Industrial Estate, Guindy, Chennai -
600 032.
Ph: 22501461,
22501422/0185/0506/1210
Fax: 22500792
Email: [email protected]
[email protected]
Branch Manager
Small Industries Development
Corporation
(SIDCO) Industrial Estate,
Nanjikottai Road, Thanjavur 613
006.
Ph: 04362-255069
18. Power Connection Superintending Engineer
Tamilnadu Electricity Board,
No.1, Vallam Road
Thanjavur 613 007.
FINANCE
19. Lead Bank Lead District Manager
Indian Overseas Bank
Market Road
Thanjavur 613 001.
Ph: 04362-238798
20. TIIC Branch Manager,
Tamil Nadu Industrial Investment
Corporation, (TIIC),
South Main Street, Thanjavur 613
009.

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 Ph: 04362-230465
21. NABARD Assistant General Manager
34 Banks Staff Colony 2nd street,
Madhakottai Rd., Thanjavur- 613005
Ph: 04362 - 274097
Email: [email protected]
22. PMEGP Scheme The General Manager
District Industries Centre
Nanjikottai Road, Thanjavur 613
006.
Ph: 04362-255069
State Director,
Khadi and Village Industries
Commission,
236, Avvai Shanmugam Road,
Gopalapuram, Chennai – 600 086
Ph: 044 – 28351019 Fax: 044 –
28351697
Assistant Director of Khadi and
Village
Industries,
Nanjikottai Road, Thanjavur.
23. UYEGP Scheme The General Manager
District Industries Centre
Nanjikottai Road
Thanjavur 613 006.
Ph: 04362-255069
24. Finance for SC/ST The District Manager
beneficiaries Tamilnadu Adi Dravidar Housing &
Development Corporation
SIDCO Industrial Estate
Nanjikottai Road
Thanjavur 613 006.

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