Institutional Support to MSMEs

Ministry of Micro, Small and Medium Enterprises – Attached Organizations

Office of Development Commissioner (MSME)

Development Commissionerate implements the policies and various programmes/schemes for

providing infrastructure and support services to MSMEs. The Office of the Development
Commissioner [O/o DC (MSME)] is an attached office of the Ministry, headed by the
Additional Secretary & Development Commissioner (AS & DC), MSME. It functions through
a network of MSME-Development Institutes (DI), Regional Testing Centres, Footwear
Training Institutes, Production Centres, Field Testing Stations and specialized institutes. It
renders services such as:
• Advising the Government in Policy formulation for the promotion and development of
MSMEs.
• Providing techno-economic and managerial consultancy, common facilities and extension
services to MSME units.
• Providing facilities for technology upgradation, modernization, quality improvement and
infrastructure.
• Developing Human Resources through training and skill upgradation.
• Providing economic information services.

Khadi Village Industries Commission (KVIC)

Khadi & Village Industries Commission (KVIC) established under the Khadi and Village
Industries Commission Act, 1956 (61 of 1956), is a statutory organization under the aegis of
the Ministry of MSME.

Objectives: The main objectives of KVIC include:-

• The social objective of providing employment in rural areas;
• The economic objective of producing saleable articles; and
• The wider objective of creating self-reliance amongst people and building up a strong rural
community spirit.

Functions: The functions of KVIC as prescribed under the KVIC Act, 1956 (61 of 1956) and
Rules made there under, include:
i. to plan and organize training of persons employed or desirous of seeking employment in
khadi and village industries;
 ii. to build up directly or through specified agencies reserves of raw materials and implements
and supply them or arrange supply of raw materials and implements to persons engaged or
likely to be engaged in production of handspun yarn or khadi or village industries at such
rates as the Commission may decide;
iii. to encourage and assist in the creation of common service facilities for the processing of
raw materials or semi-finished goods and otherwise facilitate production and marketing of
khadi or products of village industries;
iv. to promote the sale and marketing of khadi or products of village industries or handicrafts
and for this purpose forge links with established marketing agencies wherever necessary
and feasible;
v. 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;
vi. to undertake directly or through other agencies, studies of the problems of khadi or village
industries;
vii. to provide financial assistance directly or through specified agencies to institutions or
persons engaged in the development and operation of khadi or 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;
viii. to undertake directly or through specified agencies, experiments or pilot projects which in
the opinion of the Commission, are necessary for the development of khadi and village
industries;
ix. to establish and maintain separate organizations for the purpose of carrying out any or all
of the above matters.

Coir Board

The Coir Board is a statutory body established under the Coir Industry Act, 1953 for promoting
the overall development of the coir industry and improvement of the living conditions of the
workers engaged in this traditional industry.

Objective
India is the largest coir producer in the world accounting for more than 80 per cent of the total
world production of coir fibre. The coir sector in India is very diverse and involves households,
co-operatives, NGOs, manufacturers and exporters. This is the best example of producing
beautiful artifacts, handicrafts and utility products from coconut husks which is otherwise a
waste. The coir industry employs more than 7.00 lakh persons of whom a majority are from
rural areas belonging to the economically weaker sections of society. Nearly 80% of the coir
workers in the fibre extraction and spinning sectors are women. The Coir Board is tasked with
promoting the overall development of the coir industry and improvement of the living
conditions of the workers engaged in this traditional industry.

Functions

The functions of the Coir Board for the development of coir industry, inter-alia, include:
• Promoting exports of coir yarn and coir products and carrying on propaganda for that
purpose.
• Regulating under the supervision of the Central Government the production of husks, coir
yarn and coir products by registering coir spindles and looms for manufacturing coir
products as also manufacturers of coir products.
• Undertaking, assisting or encouraging scientific, technological and economic research and
maintaining and assisting in the maintenance of one or more research institutes;
• Collecting statistics from manufacturers of and dealers in coir products and from other
persons as may be prescribed, on any matter relating to the coir industry and the publication
of statistics so collected.
• Fixing grade standards are arranged when necessary for inspection of fibre, coir yarn and
coir products.
• Improving the marketing of coconut husk, coir fibre, coir yarn and coir products in India
and elsewhere and preventing unfair competitions;
• Setting up or assisting in the setup of factories for the producers of coir products with the
aid of power.
• Promoting co-operative organization among producers of husks, coir fibre and coir yarn
and manufactures of coir products.
• Ensuring remunerative return to producers of husks coir fibre and coir yarn and
manufacturers of coir products;
• Advising on all matters relating to the development of the coir industry
National Small Industries Corporation Limited (NSIC)

The National Small Industries Corporation Ltd. (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.

Objective

The mission of NSIC is “To promote and support Micro, Small and Medium Enterprises by
providing integrated support services encompassing, Marketing, Finance, Technology and
other Services.”

The vision of NSIC is “To be premier organization fostering the growth of Micro, Small and
Medium Enterprises in the country.”

Functions

NSIC performs three distinct categories of activities in order to fulfill its mission.
It runs a number of schemes, and is also an implementing partner for a number of schemes
of the Ministry of MSME. These schemes/ activities include:
• Consortia and Tender Marketing
• Credit Support
• Raw Material Distribution
• Single Point Registration Scheme (SPRS)
• NSIC Technical Services Centers
• E-Marketing/ Digital Services facilitation for MSMEs
• National Scheduled Caste and Scheduled Tribe Hub

NSIC provides technical support to MSMEs through ‘NSIC Technical Services Centres’
(NTSCs) and a number of TICs & LBIs spread across the country. The range of technical
services provided through these centres includes skill development in Hi-Tech as well as
conventional trades, material and product testing.

One of the programmes being implemented by NSIC is to create self-employment opportunities

by imparting training in entrepreneurship building to the unemployed people who want to set
up new small business enterprises in any of the manufacturing/ services sectors or seek
employment opportunities. For this purpose, NSIC has started a new initiative by entering into
franchisee arrangements with private partners interested for setting up of Trainingcum-
Incubation Centres (NSIC-TIC) at various locations across the country under Public-Private
Partnership (PPP) mode.
National Institute for Micro, Small and Medium Enterprises (NIMSME)

NIMSME was originally set up as Central Industrial Extension Training Institute (CIETI) in
New Delhi in 1960 under the then Ministry of Industry and Commerce, Government of India.
The Institute was shifted to Hyderabad in 1962 as a registered society in the name of Small
Industry Extension Training Institute (SIET). After the enactment of MSMED Act, 2006, the
Institute expanded focus of its objectives and re-designed its organization structure. In line with
the new Act, the Institute was rechristened as National Institute for Micro, Small and Medium
Enterprises (NIMSME). It is currently an organization under the aegis of the Ministry of Micro,
Small and Medium Enterprises (formerly Ministry of SSI & ARI), Government of India.

Objectives:

The primary objective of NIMSME was to be the trainer of trainers. Today, with the
technological development and ever-changing market scenario, the organisation’s involvement
has undergone changes too. From being merely trainers,NIMSME has widened its scope of
activities to consultancy, research, extension and information services.

In line with the national objective of economic development through industrialization, and
based on the expertise that is available, the Institute has identified thrust areas that need
emphasis and exploration. These are: Entrepreneurship Development, Technology Up-
gradation & Transfer, Policy Issues, NGO Networking, Environment Concerns, Cluster
Development, Management Consultancy, Quality Management Services, Financial Services,
and Information Services.

NIMSME’s long-term mission is to excel at the following:

• Turning new corners in Information Technology.
• Spotlighting of topical issues through conferences, seminars, etc.
• Greater attention to need based programmes.
• Shift towards client driven approach and innovative interventions.
• Programme evaluation.
• Emphasis on research publications.

Functions

Enterprise promotion and entrepreneurship development being the central focus of NIMSME’s
functions, the Institute’s competencies converge on the following aspects:-
• Enabling enterprise creation;
• Capacity building for enterprise growth and sustainability;
• Creation, development and dissemination of enterprise knowledge;
• Diagnostic and development studies for policy formulation; and
• Empowering the under-privileged through enterprise creation.

Mahatma Gandhi Institute of Rural Industrailisation (MGIRI)

The existing Jamnalal Bajaj Central Research Institute (JBCRI), Wardha was revamped with
the help of IIT, Delhi as a national level institute under the Ministry of MSME in October 2008
called Mahatma Gandhi Institute for Rural Industrialization (MGIRI).
Objectives- The main objectives of the institute as enunciated in its Memorandum of
Association include:
• To accelerate rural industrialization for sustainable village economy so that KVI sector
co-exists with the main stream.
• Attract professionals and experts to Gram Swaraj
• Empower traditional artisans
• Innovation through pilot study/field trials.
• R&D for alternative technology using local resources

Functions - The activities of MGIRI are being carried out by its six Divisions each headed by
a Senior Scientists/ Technologist.
i. Chemical Industries Division: The main focus of this Division is to promote quality
consciousness and consistency in the area of food processing, organic foods and other
products of rural chemical industries. It also provides a comprehensive quality testing
support and is working towards developing field worthy kits, techniques and
technologies to facilitate the cottage and small scale units in this area.
ii. Khadi and Textiles Division: The activities mainly carried out by this Division are to
improve the productivity, value addition and quality of products manufactured in khadi
institutions by introducing new technologies and by providing quality assurance
support.
iii. Bio-processing and Herbal Division: This Division prepares technology packages and
simple quality assurance methods to facilitate production and utilization of organic
manures, bio-fertilizers and bio-pesticides to promote rural entrepreneurs.
iv. Rural Energy and Infrastructure Division: This Division has been mandated to develop
user-friendly and cost-effective technologies utilizing commonly available renewable
resources of energy to facilitate rural industries and also to carry out audit of traditional
rural industries so as to make them energy efficient.
v. Rural Crafts and Engineering Division: This Division is to help upgrade the skills,
creativity and productivity of rural artisans and encourage value-addition and improve
the quality of their products.
vi. Management & Systems Division: This Division provides information and
communication technology based solutions for rural industries with a view to enhance
their global competitiveness.