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Chapter –9 (I) DEFINITIONS OF MICRO, SMALL AND MEDIUM ENTERPRISES (As per Micro, Small and Medium Enterprises Act, 2006) In accordance with the provisions of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the Micro, Small and Medium Enterprises (MSMEs) are classified into manufacturing enterprises and service enterprises: (A)Manufacturing Enterprises: The enterprises engaged in the manufacture or production of goods. The manufacturing Enterprises are defined in terms of investment in Plant & Machinery. (B)Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment. (A) Manufacturing Enterprises (Ceiling on investment in Plant & machinery) (i)Micro Manufacturing Enterprises The investment in Plant & Machinery does not exceed `25 lakhs (ii)Small Manufacturing Enterprises The investment in Plant & Machinery is more than `25 lakhs but does not exceed ` 5 crores (iii)Medium Manufacturing Enterprises The investment in Plant & Machinery is more than `5 crores but does not exceed `10crores (B)Service Enterprises (Ceiling on investment in Equipment) (i)Micro Manufacturing Enterprises The investment in equipment does not exceed ` 10 lakhs (ii)Small Manufacturing Enterprises The investment in equipment is more than `10 lakhs but does not exceed `2 crores (iii)Medium Manufacturing Enterprises The investment in equipment is more than `2 crores but does not exceed ` 5 crores (II) Procedure followed in decision making process for the issue of EM Part I (Provisional Registration) and EM Part II(Permanent Registration) for Micro, Small and Medium Enterprises (MSMEs) & Large Scale Unit. (i) Micro, Small and Medium Enterprises(MSMEs) (a) For starting MSMEs Green & Orange Categories as identified by the Department of Science Technology & Environment (DSTE), entrepreneurs have to first apply with the prescribed form to the Director of Industries & Commerce, Puducherry / Branch Office at Karaikal and Suboffices at Mahe and Yanam, depending on the proposed location of the units for the issue of EM Part I (Provisional Registration). (b) In case of industries identified as Red Category by DSTE, at the first instance, the entrepreneurs will have to get clearance from Pondicherry Pollution Control Committee (PPCC) by applying with the prescribed form through Director of Industries & Commerce and then to apply for the issue of EM Part I. (c) After obtaining EM Part I the entrepreneurs have to apply with the prescribed Common Application form for the requisite industrial clearances / permissions / NOC from the line departments through Industrial Guidance Bureau (IGB) functioning in District Industries Centre (d) After installing machinery the entrepreneurs have to get Running License from the concerned Municipalities / Commune Panchayats, License from Inspector of Factories & Boilers and Consent form PPCC before commencement of regular production. (e) After the commencement of regular production the entrepreneurs have to apply for the issue of EM Part II (Permanent Registration) with the Director of Industries & Commerce. (ii) Large Scale Industry (a) For starting Large Scale Industry the entrepreneurs have to apply / file for Industrial Entrepreneur Memorandum (IEM) with the Secretariat for Industrial Approvals, Ministry of Industry, GOI. After obtaining the IEM acknowledgement for Green and Orange Categories, the entrepreneurs have to apply for NOC for setting up of industry with the Director of Industries & Commerce. In case of Red Category, the entrepreneurs will have to get clearance from Pondicherry Pollution Control Committee (PPCC) by applying through Director of Industries & Commerce with the prescribed form and then to apply for NOC for setting up of industry with the Director of Industries & Commerce. After obtaining the NOC, the entrepreneurs have to follow the same procedure as stated in Para(i) (c) & (d) above for getting the requisite clearances / permissions / NOC from the line departments. (b) After the commencement of regular production the entrepreneurs have to apply for the issue of Commencement of Production Certificate with the Director of Industries & Commerce. (iii) Procedure for obtaining change in location, inclusion of additional activities, etc., in respect of MSMEs (a) Before commencement of production: - the units have to submit a requisition letter to this effect along with the original certificate to the Director of Industries & Commerce, Puducherry / Branch Office at Karaikal and Sub-offices at Mahe and Yanam, depending on the proposed location of the units. Then the changes have to be effected in the permissions/NOC issued by Municipalities / commune Panchayats, inspector of Factories and PPCC. (b) After commencement of production:- at the first instance the units have to obtain NOC from the Director of Industries & Commerce to this effect and these changes have to be effected in the licenses issued by Municipalities / Commune Panchayats, inspector of Factories and PPCC. Then the units have to apply to the Director of Industries & Commerce for necessary changes in the EM Part II. (iv)Procedure for obtaining change in location, inclusion of additional activities,etc., in respect of Large Scale Industries At the first instance the units have to apply / file for Industrial Entrepreneur Memorandum (IEM) with the Secretariat for Industrial Approvals, Ministry of Industry, GOI, for the additional activities and then to obtain NOC from the Director of Industries & Commerce. In respect of change in location, it is suffice to apply to the Director of Industries & commerce as the location mentioned in IEM is considered for the whole Union territory of Puducherry. Then the changes have to be effected in the permissions/NOC issued by Municipalities / commune Panchayats, inspector of Factories and PPCC. Finally the units have to apply to Director of Industries & Commerce for necessary inclusions in the Commencement of Production Certificate. III.Decision making process Opinion of Technical Officers, Assistant Directors, and Deputy Director and in some special cases opinion of Secretary to Government (Industries & Commerce), the Hon’ble Minister for Industries, the Hon’ble Chief Minister and the Lt.Governor will be sought in the process of decision making and the decision will be communicated by the Director of Industries&Commerce. IV.Guidance and help:(a)The Entrepreneurs / Industrialists can approach the Public Relation Officer in the Directorate of Industries & Commerce for obtaining all necessary guidance. (b)The Technical Officers Cell in the Directorate of Industries & Commerce will provide necessary inputs to the Entrepreneurs / Industrialists in filing the applications, procedures, about the schemes being implemented, etc. (c)Decision will be communicated through letter / e mail. (d)Opinion of Technical Officers, Assistant Directors, and Deputy Director and in some special cases opinion of Secretary to Government (Industries & Commerce), the Hon’ble Minister for Industries, the Hon’ble Chief Minister and the Lt.Governor will be sought in the process of decision making and the decision will be communicated by the Director of Industries & Commerce.