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Jharkhand focus on to get 10 lakhs small
industries by 2022
BOKARO: Jharkhand which lacks micro, small and medium enterprises in comparison to
other prosperous states of the country has geared up for its fast development to strengthen
its economic growth and to generate employment for the youths here.

The Micro, Small and Medium Enterprises (MSME) Development Institute has distributed
Jharkhand into 30 clusters for industrial development. There are four clusters in Ranchi of
which two have been formed new while Bokaro has one, Bhendra in Nawadih. MSME is
working with an aim to bring 10 lakh industries by 2022 which can generate employment to
60 lakh youth.

Jharkhand at present hosts only 1.44 percent industries of the total MSME in the country,
which is very low. There are 2.61 crores MSME in India while Jharkhand has only 3.76 lakh
of it. In terms employment, about six crore people are employed in MSMEs in the country
and in Jharkhand the figure of people working in such industries is 18 lakh.

"We are making efforts to develop 10 lakh industries in state by 2022 which will generate
minimum employment for 60 lakh youths. Our basic focus is on development of micro and
small industries," said Mahadeo Lakra, director, MSME, Ranchi. He was here to participate
in two days National Industrial Exhibition Cum Seminar at Kala Kendra, Bokaro.

The function witnessed huge gathering of industrialists, businessmen and other residents.
DC, Aarava Rajkamal along with director, Electrosteel Steel Limited (ESL), R S Singh
inaugurated the session by lighting the lamp. The venue hosted more than two dozen stalls
of local manufacturers and industries. "The guests were impressed seeing packaged water,
furnitures, food items and other items placed in the stalls of the local manufacturers, said
Shashi Bhusan, president, management studies and research centre.

Rajkamal said that of the country's population, 60 percent are youth and to generate
employment for them is the biggest challenge faced by the government. MSME is a need for
development of the state and country. The government is providing all the necessary
support to the entrepreneurs for coming up of the small industries.

Director, ESL, R S Singh however said that MSME plays a very important role in growth of
the state. Jharkhand is the only state in country which has all the potential to become
industrial hub. He pointed out that MSME has got a good future. At a time when big
companies are cutting down its manpower strength, the development of MSME will create
huge employment which is primary demand today.
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Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 on June
16, 2006 which was notified on October 2, 2006. With the enactment of MSMED Act 2006, the paradigm shift that has taken
place is the inclusion of services sector in the definition of Micro, Small and Medium Enterprises, apart from extending the
scope to Medium Enterprises.
Definition of Micro, Small and Medium Enterprises:
The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based (i) on the investment in plant and machinery
for those engaged in manufacturing or production, processing or preservation of goods and (ii) on the investment in
equipment for enterprises engaged in providing or rendering of Services.
The investment in plant and machinery is the original cost excluding land and building and other items specified by the
Ministry of Small Scale Industries vide its notification no. S.O. 1722 (E) dated 05.10.2006.
The guidelines with regard to investment in plant and machinery or equipment as defined in the MSMED Act, 2006 are:
Nature of
activity of
the
Enterprise
Investment in plant and
machinery excluding land and
building for enterprises engaged
in manufacturing or production,
processing or preservation of
goods
Investment in equipment
excluding land and building
for enterprises engaged in
providing or rendering of
services (loans up to Rs 1
crore)
Micro Not exceeding Rs.25.00 Lakhs Not exceeding Rs.10.00
Lakhs
Small More than Rs.25.00 lakhs but does
not exceed Rs.500.00 lakhs
More than Rs.10.00 lakhs but
does not exceed Rs.200.00
lakhs
Medium More than Rs.500.00 lakhs but
does not exceed Rs.1000.00 lakhs
More than Rs.200.00 lakhs
but does not exceed
Rs.500.00 lakhs
The investment in plant and machinery is the original cost excluding land and building and other items specified by the
Ministry of Small Scale Industries vide its notification.
The illustrative lists of enterprises that are engaged in providing or rendering services are:
Small road and water transport operators (original investment in vehicles upto Rs.200.00 lacs under Priority sector)
Retail trade (with credit limits not exceeding Rs.20.00 lakhs)
Small business (whose original cost price of the equipment used for the purpose of business does not exceed Rs.20.00
lakhs
Professional and self-employed persons (whose borrowing limits do not exceed Rs.10.00 lakhs of which not more than
Rs.2.00 lakhs should be for working capital requirements except in case of professionally qualified medical practitioners
setting up of practice in semi-urban and rural areas, the borrowing limits should not exceed Rs.15.00 lakhs with a sub-ceiling
of Rs.3 lakhs for working capital requirements)