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Year of Enterprises 2022-23: One Lakh Enterprises

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2022 - 23 Year of Enterprises

Introduction

The Government of Kerala (GoK) as part of celebrating the financial year 2022-23 as the‘Year of Enterprises’ to encourage and promote more Micro, Small and Medium level entrepreneurs in the State have entrusted the Directorate of Industries with the initiative “Setting up of One Lakh Enterprises during 2022-23”.

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With the aim to strengthen MSMEs in the state for equitable distribution among all strata of the society especially neo-entrepreneurs, women& other weaker sections, NRK investors, ex-service men etc., the State has undertaken several initiatives to provide adequate industrial infrastructure and develop clusters, facilitate MSMEs through simplified industrial licensing procedures, providing financial incentives/assistance, capacity building & skilling for creating local jobs, revive sick units,export promotion and technical assistance. This new initiative is part of the sustained efforts taken by the Government to encourage economic growth and promote social & economic development in the State despite the challenges imposed by pandemic, natural calamities, and resource constraints.The key objectives of the scheme are as follows:

  1. To commence at least 1 lakh enterprises in Kerala in 2022-23
  2. To create a robust ecosystem for Enterprises Development with the convergence and support of all line departments, agencies, PSUs and Banks
  3. To create an Enterprises-friendly ecosystem to boost job creation in the State
  4. To create at least 3 lakh jobs in Kerala in 2022 – 23
  5. To enhance capacity of State level agencies in accelerating enterprises growth in the State
Sl No. District Target
1 Thiruvananthapuram 14,902
2 Kollam 11,775
3 Pathanamthitta 5,408
4 Alappuzha 9,666
5 Kottayam 8,834
6 Idukki 5,007
7 Ernakulam 14,610
8 Thrissur 13,533
9 Palakkad 12,721
10 Malappuram 18,601
11 Kozhikode 13,925
12 Wayanad 3,687
13 Kannur 11,366
14 Kasaragod 5,965
  Total 150,000

Initial Research & Background works

  • November 2021- Planning & Concept Development +

    As part of the concept development of the scheme and to plan the future activities, several brainstorming sessions and idea generation meetings were held at Minister, Secretary and official levels. Based on the suggestions and inputs derived it was decided as a first step to consolidate the information related to the various aspects of the industrial development and promotion in the State, to serve as a ready reckoner for the stakeholders in the industrial ecosystem. The data collection for the same was conducted through the District Industries Centers. Accordingly, 7 booklets were published as follows:

     

    Sl No. Description Booklets
    1 License needs of 23 sectors View Booklet PDF
    2 Potential businesses / thrust sectors of all 14 districts and 152 blocks View Booklet PDF
    3 Relevant subsidy/ loan schemes of 34 departments View Booklet PDF
    4 65 Commercialized technologies from 18 institutions in 14 districts View Booklet PDF
    5 District and department wise availability of incubation centres, skill training centres View Booklet PDF
    6 District and department wise availability Land/Building View Booklet PDF
    7 One Local Body One Product (OLOP) programme View Booklet PDF

  • December 2021- Scheme Implementation Strategy +

    A detailed strategy for the implementation of the One Lakh Enterprises scheme was developed by the Directorate of Industries and Commerce (DIC). Various meetings with the Hon’ble Minister for Industries & Commerce, Principal Secretary Industries and Chief Secretary were held in this regard.The broad concept was presented to the Chief Secretary on 22/12/2021 and before the Chief Minister on 30/12/2021.The strategy involved a threephased‑ approachwithactivities for Institutional Development&Capacity Building, Marketing and Promotional Outreach and MSME Facilitation &Grievance Redressal.

     Phase I: Institutional Development & Capacity Building 

    Campaigns to be conducted at LSGD levels across the State for identifying entrepreneurs and creating awarenessamongst them regarding the processes involved in starting a business and the support mechanisms available. One-day General Orientation Trainings comprising 5 sessions on licenses, technology, subsidy schemes,interaction with mentors and potential investment areaswith an estimated participation of 1- 2 lakh aspiring entrepreneurs.The knowledge materials will be distributed among the participants who will also be given awareness about the various agencies and government bodies that are offering services to entrepreneurs. License/ loan/ subsidy camps will be conducted in all local bodies for entrepreneursinterested after the General Orientation Campaign wherein assistance in applyingunder KSWIFT, loan from banks at reduced interest rates, subsidy fromdepartments etc. would be provided.

    Phase II: Marketing and Promotional Outreach

    In the second phase, 1153professionally qualified interns will be recruited and appointed at all local bodies across the State for facilitating the requirements coming from the side of identified entrepreneurs and to further identify potential entrepreneurs.The interns would be given training in all aspects of industrial facilitation to provide awareness to entrepreneurs on the various services available, and to coordinate with various agencies and departments for processing the applications for licenses, subsidies, loans, etc. They would be given monthly targets for identifying and encouraging aspiring entrepreneurs to set up enterprises in the State to achieve a milestone on 100,000 enterprises by the 31st March 2023.

    Phase III: MSME Facilitation & Grievance Redressal         

    To further strengthen the efforts undertaken in the earlier stages of the scheme implementation and to bring about ease of doing business, various systems will be put in place at different levels such as Meet the Minister Programmesheld at district level to address the issues faced by entrepreneurs, introducing Private Industrial Park scheme, One Local Body One Product Scheme (OLOP), MSME award scheme, new Land Policy to consolidate the allotment of land and related procedures, setting up MSME Clinics for providing technical/ financial/ legal advisory services, setting up taluk-level Industrial Facilitation Centres, loan scheme with interest subvention to make finance available at 4% interest rate, establishing MSME call centres for clearing doubts, District and State Level Grievance Redressal Committees for Grievance Redressal Of Entrepreneurs, introducing Commerce Mission to identify national and international markets for the products of micro, small and medium enterprises from Kerala, etc.

    The scheme objectives could be met through the convergence and support of all the line departments such as Department of Cooperation, Kudumbasree, Kerala State Backward Classes Development, Women & Child Development Department, Kerala State SC Development Department, Department of Finance, Department of Information Technology, Department of Fisheries, Kerala State Animal Husbandry Department, other department, agencies, PSUs and banks. The efforts for coordinating these activities and to streamline the process of service facilitation will be undertaken as part of the initiative.

    -Meeting under the chairmanship of hon’ble Minister, Industries and Chief Secretary, GoK. (02/12/21).

    -Initial presentation to the hon’ble Chief Minister on 30/12/2021

     

  • January 2022- Convergence Meetings +

    Hon’ble Chief Minister had directed to present the scheme concept to the various line departments, agencies, PSUs, industrial associations, and financial institutions to converge the activities of these entities to realize the scheme objectives. The detailed scheme outlinesand the broad strategy envisaged were presented by the Directorate of Industries and Commerce. Hon’ble Minister for Industries emphasized the importance of converging the activities of various stakeholders in the development of a sustainable industrial ecosystem and requested the support of all stakeholders for successful implementation of the Scheme.

    The meetings explored the potential areas of convergence of activities and its modalities. The strategy put forward by Industries Department for One Lakh Enterprises in One Year was prima facia accepted by the stakeholder representatives and decided to form a Core Committee for incorporating the suggestions and comments discussed in the meetings and to prepare a comprehensive Action Plan for scheme implementation.

    Meeting with representatives of Department of Local Self Government and Department of Co-operation held on 04/01/22

    Under the chairmanship of Hon’ble Minister, Industries& Commerce,in the presence of Hon’ble Minister, LSGD, Rural Development & Excise and attended by Additional Chief SecretaryLSGD, Principal SecretariesIndustries Department, SecretaryCooperative Department, SecretaryLSGD, Director Industries and Commerce, Directors of Urban Affairs, Panchayats, Kudumbasree, representatives of KSIDC, KINFRAand K-BIP

    Key suggestions & action points:

    • => To formulate a technical checklist for the license application of the MSMEs
    • => As part of the Registration drive, all MSMEs in the State to be given registration (including Geo tagging)
    • => To reward the LSGD which supports to setup the highest number of MSMEs
    • => To provide specialized training to the Interns with the help of professionals from various fields
    • => Establish a framework for ensuring the quality of the MSME goods developed under the “Make in Kerala” and provide Kerala branding for them
    • => To establish a platform for the marketing of MSME goods
    • => To incorporate the suggestions proposed by the Committee established to study the redundant laws and regulations in MSME sector
    • => Make available the unutilized land and buildings available with the local bodies for industrial purposes
    • => Expedite the process of issuing panchayat license other than KSWIFT license
    • => Adopt a product/ set of products under the OLOP Scheme

     Meetings with representatives of Public Sector Undertaking (PSU), Industrial Associations and Management Associations held on 07/01/22

    Under the chairmanship of Hon’ble Minister, Industries& Commerce in the presence of Director, Industries and Commerce, Managing DirectorKSIDC, Managing DirectorKINFRA, Chief Executive OfficerK-BIPand member representatives from FICCI, CII, TIE, KSSIA, KMA, ICAI and NIPM.

    Key suggestions & action points:

    • => Instructions to be given to all PSUs to give preference to the MSMEs in their procurement policy
    • => To include professionals in the Director Board of Public sector undertaking bodies
    • => Industrial estate policy to be launched soon
    • => To establish MSME Clinics for supporting sick MSMEs by providing relief measures for their revival
    • => To fix targets in all sectors for supporting the 1 Lakh MSME scheme
    • => To give importance to women entrepreneurs
    • => To support the One District One Help Desk initiative
    • => To start private industrial parks
    • => To implement Land Allotment Policy

     Meeting with Presidents and Secretaries of all local bodies and Presidents of all Cooperative Banks held on 12/01/22

    Under the chairmanship of Hon’ble Minister, Industries& Commercein the presence of Hon’ble Minister for Cooperation,Additional Chief SecretaryIndustriesDepartment, SecretaryCooperative Department, DirectorIndustries & Commerce, Presidents and Secretaries of all local bodiesand Presidents of Cooperative Banks.

    Key suggestions & action points:

    • => Cooperative organizations to be open to setting up of Private Industrial parks
    • => Cooperative Banks to provide loans according to PMEGP, ESS schemes, to the businesses promoted by Industries Department
    • => Government to decide on providing subsidies on the Loans given by the Cooperative banks
    • => To consider subsidies while providing loans to Cooperative groups
    • => To form a Consortium of Organizations having high financial stability for provision of loans
    • => To identify marketing opportunities for the end products during the inception stage of business
    • => To implement Branding of Value-added products and e-commerce marketing using Digital University

     Meeting with representatives of Trade Unions held on 17/01/22

    Under the chairmanship of Hon’ble Minister, Industries& Commerce was held in the presence of Director, Industries & Commerce Department, Managing DirectorKSIDC, Managing DirectorKINFRA, CEO K-BIP and the representatives of CITU, INTUC, BMS, AITUC, UTUC, TUCC, HMS, AIUTUC, SEWA, STU

    Key suggestions & action points:

    • => Industries Department and Labour Department to work together to create a strong background for the MSMEs
    • => To implement labour laws effectively
    • => Trade Unions to provide support to MSMEs
    • => To ensure minimum wage in the units developed
    • => To ensure the Workers allowances at the inception stage of the enterprise
    • => To implement an Income Support Scheme for supporting the Enterprises.
    • => To create supervisory committee including the Trade union members
    • => Government to form initiatives along with the Engineering colleges and Industries Department for encouraging entrepreneurship amongst the students.
    • => To encourage the export sector, export-quality/handicraft products and increase production of local products with export potential
    • => To explore the possibilities of Multilevel marketing

     Meeting with NORKA held on 19/01/22

    Under the chairmanship of Hon’ble Minister, Industries & Commerce was held in the presence of Director, Industries & Commerce Department and NORKA representatives.

    Key suggestions & action points:

    • => Conduct 14 district wise General Orientation Trainings jointly by NORKA and Industries Department
    • => To encourage small scale industries owned by NRI investors
    • => To create Capital fund for the businesses from non-Malayalee NRIs. To collaborate Banks, Private financial agencies and others for facilitating the same
    • Meeting with State Level Bankers Committee (SLBC)held on 20/01/22

     Meeting with Ministersfor Fisheries, Agriculture, Animal Husbandry and Tourismdepartments held on 24/01/22

    Under the chairmanship of Hon’ble Minister, Industries& Commerce in the presence of Hon’ble Minister for Fisheries, Hon’ble Minister for Agriculture, Hon’ble Minister for Animal Husbandry, Hon’ble Minister for Tourism, Additional Chief SecretaryIndustries Department, Additional Chief SecretaryTourism Department, Principal SecretaryAgriculture Department, SecretaryAgriculture Department, SecretaryAnimal Husbandry Department, SecretaryFisheries Department,DirectorIndustries & Commerce, Managing DirectorKSIDC, Managing DirectorKINFRAand CEO K-BIP

    Key suggestions & action points:

    • => Plan to create 5 lakh job opportunities under the collaboration of various agencies viz. Coastal Area Development Corporation, Matsyafed, Kerala Aqua Ventures International Limited (KAVIL), Society for Assistance to Fisherwomen (SAF) and Agency for Development of Aquaculture (ADAC) is being undertaken by the Fisheries Department. Industries Department and Fisheries Department to converge their schemes for efficient functioning of these projects.
    • => Marketing of value-added products produced to be ensured by concerned departments and Industries department to coordinate the same
    • => To explore the possibility of providing loans at 4% interest rate
    • => Industries Department to support Micro units operating in the field of Responsible Tourism
    • => Industries Department to provide support in Destination development projects
    • => Tourism Business Facilitation Centers to be established by the Tourism Department for promoting various schemes under them and attract the investors
    • => To expedite the licensing process for the units to be started in the fields of Animal Husbandry and Dairy
    • => To develop more MSMEs in the storage, management, and marketing of Dairy products.
    • => To provide preference to industries involved in the production of Organic goods
    • => To devise schemes for linking the industries in the field of Agriculture with the Tourism Department

     

  • February 2022- Scheme Funding +

    The refined scheme implementation strategy based on inputs and ideas generated from the convergence meetings was presented to the Kerala State Planning Board, the Principal Secretary Industries and the Chief Secretary. The proposal for plan fund allocation for the scheme was submitted to the government and the same was approved.INR 45.6 Crores were earmarked for the scheme under the State’s Annual Budget for FY 2022-23. (Budget document-Click to download)

    Appointment of Interns

    Applications were invited to the post of Interns to be posted at local bodies. The recruitment process was undertaken through Centre for Management Development (CMD), Kerala.

    Meeting with Secretaries of linedepartments held on 24/02/22

    Under the Chairmanship of Chief Secretary, GoKfor evaluating on the progress on the activities carried out for increasing the potential job opportunities in the State. Attended byAdditional Chief Secretaries of Revenue, Higher Education & Tourism and LSGD Departments, Principal Secretaries of Industries, Agriculture, Electronics, IT, Health, Family Welfare &Social JusticeDepartments, Secretaries of Fisheries&Animal Husbandry, Cooperation, Backward & SC/STCommunity Development Departmentsand RIAB

    Key suggestions & action points:

    • => Department of Industries to provide Open network Marketing for MSME goods
    • => NORKA and ODEPC to work together for recruitment of professionals to global work locations and to create a digital platform for facilitating the application process
    • => LSGDs to start home offices for facilitating Work from Home.
    • => LSGDs to implement measures to scale up the job opportunities created by Kudumbasree
    • => Every department to create schemes and action plans for generating more job opportunities according to the job potential in the respective fields

    Action plan template was prepared by DIC and circulated to all line departments. (Click to download)

  • March 2022- Statewide Launching of the scheme +

    Hon’ble Chief Minister Shri. Pinarayi Vijayan launched the One Lakh Enterprises in One Year project in the event held at Thiruvananthapuram. CM also stated that Kerala will observe the fiscal year 2022-23 as “Year of Enterprises” while inaugurating the initiative.