Government of India under Ministry of Micro, Small and Medium Enterprises have enacted the Micro, Small and Medium Enterprises Development Act 2006 and has put into operation effective from 2-10-2006. Under the Act, Micro, Small and Medium Enterprises are classified as under:
| Enterprises |
Investment in Plant & Machinery (Manufacturing) |
Investment in Equipment (service) |
| Micro |
Less than Rs. 25 lakhs |
Less than Rs. 10 lakhs |
| Small |
Rs. 25 lakhs – Rs. 5 crore |
Rs. 10 lakhs – Rs. 2 crore |
| Medium |
Rs. 5 crore – Rs. 10 crore |
Rs. 2 crore – Rs. 5 crore |
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The small and medium enterprises as classified above, are required to file Entrepreneurs Memorandum (EM) Part-I to District Industries Centre for starting an industrial project. On completion of the project, the entrepreneur is required to file Entrepreneurs Memorandum (EM) Part-II.
Earlier there was a system of granting registration to small scale industrial units by the District Industries Centre. These units are now required to file EM Part-II as Micro, Small or Medium Enterprises as classified above.
Gujarat has witnessed impressive industrial development in SME sector. There were only 2169 small industries in 1961 at the time formation of the state. The number of SSIs increased continuously and has reached over to 3,12,000 by September 2006. This may be observed as under: |
| |
| No of SSI units |
1960 |
2169 |
1970 |
15849 |
1980 |
43742 |
1990 |
115384 |
2000 |
251888 |
2006 (upto September) |
3,12,000 |
|
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| District Industries Centre in all districts of the state and the institutions such as Gujarat Industrial Development Corporation (GIDC) and Gujarat State Financial Corporation (GSFC) have provided boost to the development of SSIs. |
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Small scale industries have also played an important role in industrial dispersal. Ahmedabad district leads in the state with the highest number of SSIs followed by Surat, Rajkot and other districts. This can be observed from the following table.
| Districts |
SSIs (%Share) |
Ahmedabad |
23.22 |
Surat |
16.72 |
Rajkot |
11.17 |
Valsad |
6.10 |
Vadodara |
5.79 |
Mehsana |
5.39 |
Kheda |
4.97 |
Bharuch |
4.70 |
Jamnagar |
5.62 |
Bhavnagar |
3.47 |
Other Districts |
17.80 |
Gujarat |
100.00 |
|
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The small scale sector has witnessed development in different industrial sectors. However, the trend of development is different compared with large industries. The textile including hosiery and garments accounts for the large number of SSIs followed by other sectors. This can be observed from the following table.
| SSI-Industry Groups |
Group |
% Share |
Textiles |
13.55 |
Hosiery & Garments |
13.56 |
Machinery & Parts |
7.81 |
Metal Industries & Metal Products |
7.68 |
Agro and Food Processing |
5.89 |
Chemical & plastic Products |
5.52 |
Wood Products |
3.95 |
Paper & Printing |
2.49 |
Non Metallic Mineral Products |
3.45 |
Electrical Transport & Misc. Ind |
6.10 |
Repair Services |
17.77 |
Others |
12.23 |
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