Programme to Accelerate Development for MSME Advancement’ (PADMA)

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Haryana Government Gazette

Published by Authority

© Government of Haryana No. 49-2022] CHANDIGARH, TUESDAY, DECEMBER 6, 2022 (AGRAHAYANA 15, 1944 SAKA)

PART-I

Notifications, Orders and Declarations by Haryana Government

HARYANA GOVERNMENT

INDUSTRIES & COMMERCE DEPARTMENT

Notification

The 29th November, 2022

No. 12/2/2022-1IB-II.— In order to accelerate entrepreneurship, promote growth of micro & small enterprises, and create sustainable employment opportunities at the grass-root level across the state, the Governor of Haryana is pleased to notify a five year block level economic transformation programme called 'Programme to Accelerate Development for MSME Advancement' (PADMA).

(Sd/)…,

Chandigarh: The 18th October, 2022. Additional Chief Secretary to Government Haryana,

Industries & Commerce Department.

(1028)1029 PART I] HARYANA GOVT. GAZ., DEC. 6, 2022 (AGHN. 15, 1944 SAKA)

Table of Contents

Programme to Accelerate Development for MSME Advancement

1. Introduction

Micro, Small and Medium Enterprises (MSME) sector has been identified as an engine for socio-economic growth. MSMEs provide the largest share of employment after agriculture and hence, development of MSME sector can contribute enormously to the socio-economic development of the State.

With more than 9,50,000 MSMEs in the State generating employment for more than 19 lakh persons (MoMSME Annual Report 2020-21), the major MSME footprint is in automobile, food & beverages, textiles, engineering and metals sector. The manufacturing MSME spectrum in the state comprises both state of the art medium enterprises (majorly located in Panipat, Faridabad and Gurugram) as well as a large number of traditional micro and small enterprises (majorly located in Panchkula, Ambala, Karnal, Rohtak, Kaithal etc.)

MSME sector faces challenges of lack of access to markets, credit, technology and infrastructure, lack of policy outreach and awareness. The MSMEs also need extra support especially in industrially backward districts.

The State Government seeks to create an enabling MSME ecosystem in each block of the state around an identified product segment. One product in each block of the 22 districts (covering all 143 blocks) in the State has been identified based on the locally available resources, existing micro enterprise ecosystem, demographic profile, key opportunities, sunrise sectors and growth potential. For each block, one new MSME industrial cluster covering an area of approximately 100 acres shall be developed. It is envisaged that each such MSME cluster shall constitute about 35-40 new micro and small enterprises (MSEs) along with Common Facility Centres (CFCs).

A new scheme has been envisaged to ensure development of block wise MSME ecosystem, namely, Programme to Accelerate Development for MSME Advancement (PADMA).

2. Objectives

As an outcome, the program will aim to achieve the following:

• Set up 143 new clusters (one in each block) of MSMEs over about 4000 acres of land

• Enable setting up of 10,000+ new enterprises

• Attract new investment of INR 25,000-30,000 Crores

• Creation of 3,00,000 new employment (direct & indirect)

• Encouraging holistic socio-economic development and a robust industrial ecosystem at block level • Empower the state's youth to set up new enterprises by providing them opportunities to grow and be a part of the formal economy

• Promotion of locally relevant products and provide an opportunity to state farmers to broaden their horizon – from producers to processors

• Designing and implementing developmental interventions focused on micro and small enterprises at block level, by leveraging cluster approach, to give a thrust to sustainable employment and entrepreneurship opportunities

3. Multi Department Support

The Department of Industries & Commerce shall implement PADMA through its Directorates/Corporations in collaboration with Town and Country Planning Department and Skill Development &Industrial Training Department. The key roles and responsibilities of various departments/organizations involved in the execution of the program are as follows:

Department of Industries & Commerce

Directorate of MSME

• Nodal department for conceptualisation and implementation of the overall PADMA program.

• To identify the focus products across all blocks.

• To establish a dedicated PMU to provide advisory and professional support throughout the program.

• To coordinate with all related departments for various activities related to the program

• To create a dedicated portal for publicity of the initiative, receipt of applications and monitoring of the programme.

• Finalisation of project profiles/ business plans and updationon dedicated portal.

• To set up Common Facility Centre(CFC) and Business Development Centre (BDC) in PADMA Industrial Blocks

• To invite EoIs and applications from prospective entrepreneurs.

• To scrutinise applications and approvals and facilitate regulatory compliances.

• To enable access to market and credit.

• To dovetail existing Central and State Government programmes for financing needs related to various activities i.e. infrastructure development etc.

• To undertake policy interventions and support State Govt. in development of relevant schemes and policies

Directorate of Industries & Commerce, Haryana

• To facilitate regulatory compliances

• To provide time bound clearances through HEPC

• To help tie up with large players/OEMs in the state for better market access for new entrepreneurs Haryana State Industrial & Infrastructure Development Corporation (HSIIDC)

The HSIIDC shall establish the PADMA industrial clusters in each block. HSIIDC shall develop the basic and common infrastructure and sell industrial plots to MSMEs. HSIIDC will develop the infrastructure through its own funds, and through support under SIIDS scheme. HSIIDC will also undertake the following activities to accomplish its role as an Implementing Agency of PADMA scheme:

• To identify the lands for PADMA clusters in all the blocks

• To develop basic infrastructure

• To construct common facilities

• To construct industrial sheds and lease out workspace to entrepreneurs

• To allot plots to prospective entrepreneurs

• To estimate the investment requirement for infrastructure development.

Department of Town and Country Planning

• To assist in identifying land for development of industrial blocks

• To facilitate regulatory compliances

• To support Implementing Agencies to get speedy approvals for land CLUs/NOCs etc

• To support in preparation of the infrastructure roadmap

Department of Skill Development and Industrial Training

• To conduct a detailed skill gap study to identify major skill requirements as well as business incubation requirements in the identified block level clusters

• To mobilise ITIs, polytechnic colleges, technical institutions, training providers (TPs) to provide skilling solutions in the cluster

• To provide necessary support to mentoring programmes to be conducted in each block

Haryana Ground Water Authority

• To verify the availability of ground water in the proposed PADMA Block area

• To authorise water harvesting and water recharging facilities in the Block

4. Components of PADMA

The program will have the following three building blocks:

1. Infrastructure Support

2. Knowledge Creation, Awareness Generation & Strategic Linkages

3. Handholding & Facilitation

4.1. Infrastructure Support

4.1.1. Land parcels measuring around 100 acres in each block will be identified and developed. These land parcels will have enabling basic infrastructure, industrial sheds and Common Facilities. The Government would aim to provide ready enabling infrastructure at affordable price to new1032 HARYANA GOVT. GAZ., DEC. 6, 2022 (AGHN. 15, 1944 SAKA) [PART I entrepreneurs to start their enterprises, thereby reducing cost of doing business. Overall, it is estimated that an area of over 4000 acres across 143 clusters will be developed as a part of this program. The land for the project may be arranged by State Govt./ Private Developer willing to participate in the scheme either through purchase or on lease of at least 30 years. The developing agency can, depending on the block category, secure financial assistance of 50% to 85% of infrastructure development cost from the state government through the SIIDS scheme.

4.1.2. Creation of basic & common infrastructure – Implementing Agencies shall provide modern basic infrastructure such as concrete roads, streetlights, power/water supply & distribution, logistics, storm water drainage system, Sewage Treatment Plant (STP), Common Effluent Treatment Plant (CETP), communication networks, fire-fighting stations, common sheds, clean surroundings, common service area that will include auto stands, bus stops, shops etc. 4.1.3. Common Facility Centres: A major component of developing vibrant industrial estates at block level would be provision of state-of-the-art common facilities tailored around identified product categories. The common facilities would aim to support efficient production and enhance competitiveness of enterprises in the cluster. The common facilities would include tool rooms, testing labs, training centres, raw material banks, R&D centres, product development facilities, packaging facilities, cold storage infrastructure, exhibition cum convention centres, marketing hubs etc.

4.1.4. Business Development Centres: A key component of every Common Facility Centre shall be a Business Development Centre (BDC) which will be based within the CFC. The BDCs will be like advisory helpdesks housing a range of experts having extensive experience across the value chain of the identified products in each block. Through the BDCs, the prospective entrepreneurs will be provided inputs on key areas like backward &forward linkages; legal & regulatory support, business & financial linkages; technology adoption & process improvements; supply chain management etc.

4.2. Knowledge Creation and Awareness Generation

The second main pillar of the PADMA program is creation of knowledge collaterals and production of material relevant for an entrepreneur to initiate his/her entrepreneurial journey. This would include development of a comprehensive list of business opportunities around a particular product in each cluster.

4.2.1. Model Project Profiles. Within each block, model project profiles/bankable Detailed Project Reports (DPRs) will be created on basis of a detailed analysis of the product's value chain. The standard profiles would be developed based on different business ideas and will help prospective entrepreneurs make informed decisions about starting an enterprise and would also aid them in obtaining bank finance. The model profiles would highlight requirements around various functional areas of an enterprise including technological processes, resource requirements, production capacities, skill requirements, market prospects along with detailed financial analysis and revenue projections.

Model project profiles will not only help prospective entrepreneurs to better understand various business aspects of setting up an enterprise but will also help Financial Institutions in standardized evaluation of the received proposals. These project profiles shall be finalized in consultation with key ecosystem stakeholders in each block.

4.2.2. Awareness Creation: The state government through the Directorate of MSME will run intense promotional campaign to propagate PADMA and encourage local youth to venture into entrepreneurship. For the awareness, propagation and active participation of the prospective entrepreneurs and youth in the PADMA initiative, a dedicated web-portal shall be launched. The web-portal will be used to share information about the initiative, cluster level information, plot availability, model project profiles, information about Business Development Services (BDS) incentives available, progress made, and achievements etc. Web-portal shall also seek information from prospective entrepreneurs desirous of starting an enterprise in a particular bock under the PADMA initiative.

4.2.3. Strategic Linkages and tie ups with BDS providers: The state government acknowledges the role of BDS providers (technologists, financial consultants, technical institutions, marketing experts, management consultants, workforce providers, quality experts) to ensure effective implementation of PADMA initiative. The government would focus on strengthening the overall1033 PART I] HARYANA GOVT. GAZ., DEC. 6, 2022 (AGHN. 15, 1944 SAKA) BDS ecosystem in each cluster. Cluster level local services providers (LSPs) and business development services (BDS) providers shall be roped in for mentoring and supporting the new entrepreneurs. An extensive network of cluster units, BDSPs and Industry Associations shall be set-up to accelerate entrepreneurship at the district level. Engagement with large units/Original Equipment Manufacturers (OEMs) shall also be explored.

Additionally, the state shall endeavour to establish cross-linkages with Haryana Employment Exchanges and Saksham Yuva initiatives to further encourage the transition of state's youth from job-seeker to job provider.

4.2.4. Mentorship program: To ensure the entrepreneurs in the greenfield PADMA industrial parks have adequate knowledge base and industry exposure, the state will run mentorship and incubation programs for prospective entrepreneurs. These programs will be planned and delivered in consultation with key stakeholders such as leading industry bodies, prominent corporates, OEMs/anchor bodies; key Centre/State PSUs, top institutes, R&D bodies in the associated fields.

Aspiring entrepreneurs will need to undergo extensive mentorship programs and acquire a program completion certificate to be eligible for allocation of land in the industrial park. Under the mentorship program, the candidates will be informed about various regulatory, financial, business and operational challenges they may face and how these challenges can be removed. Mentees will also be offered exposure visits to businesses of their choice to understand the real business scenario. These programs will be delivered through the BDCs set up in common facility centres.

4.3. Handholding & Facilitation Support

4.3.1. Business and Credit Facilitation: The state government would provision adequate ground level facilitation and handholding support to prospective entrepreneurs to ease their entrepreneurial journey. The state through a network of ground level resources will provide facilitation support for adopting model project profiles, accessing finance linkages, understanding market needs, obtaining required approvals, leveraging government schemes etc. Additionally, since PADMA focuses on holistic development, an extensive handholding and on-site facilitation support shall be provided to youth pertaining to skill development, market linkages, credit facilitation and overall business/regulatory facilitation to fully equip them to benefit from the program & successfully establish and run their enterprise.

4.3.2. Market Facilitation: Effective market linkages shall be the key to ensuring sustainability and success of the clusters. To enhance the footprints of cluster units beyond the local geographic boundaries, e-commerce shall be actively promoted for access to newer markets. The state government will invite leading ecommerce players in the B2B, B2C and B2G verticals to partner with the government under the PADMA program.

4.3.3. Skill Development: For each of the identified clusters, certain sector-specific skill sets shall be required to successfully set-up and operationalize the new units. To fully equip the youth and prospective entrepreneurs to effectively manage the enterprises, curated skill development programs shall be conducted at the block level. The state government would set up Entrepreneurship Development Centres (EDCs) in collaboration with expert agencies like Entrepreneurship Development Institute of India (EDII), National Institute of MSME, MSME Development Institute etc.

4.3.4. Project Management Unit: To successfully implement the PADMA program, develop block level strategy, generate knowledge collaterals, provide effective ground level facilitation support, ensure better coordination among all departments, the Directorate of MSME would engage a dedicated Project Management Unit (PMU) through professional agency. The PMU will work on the hub and spoke model with few experts deployed at the Directorate HQ to support the government in overall execution and a team of facilitation resources in each district. The Hub team at the HQ shall be primarily responsible for development of State and block level strategy; assessment of block level entrepreneurship opportunities; business profiling and value chain analysis of the identified products; benchmarking with key national/ global clusters; need analysis for infrastructure, common facilities, skills, finance; creation of project profiles; guidance to spoke team; coordination with key stakeholders& government agencies; support the Government in evaluating proposals received under the SIIDS scheme, monitoring and evaluation etc.

As a part of the spoke team, cluster level facilitation helpdesks shall be set-up in all the districts. The facilitation helpdesk will provide two-pronged support to the potential entrepreneurs of the cluster, in the form of Credit Facilitation (loan syndication, guidance regarding loan products, assistance in availing finance) and Business Facilitation (advisory on focus products, regulatory approvals, handholding in compliances, incentives, marketing support etc.

5. Phase wise implementation of PADMA

The state government would implement the PADMA program in phases over a period of five years so that proper focus is laid on fostering a vibrant industrial ecosystem in each block. In the first and second year, a smaller number of blocks will be taken up, increasing the number of blocks to be developed as the development process becomes streamlined. The SLMC would select the blocks to be included for implementation of the program under each phase. Number of blocks to be developed in each phase is as follows:

6. Financing the programme

6.1. State Support: The Department of Industries & Commerce shall harness the two existing schemes of Infrastructure Development (SIIDS) and creation of common facilities (Haryana Mini Cluster Development Scheme) to enable Pvt./Govt agencies in setting up PADMA clusters.

Infrastructure development: The implementing agency/private developer can leverage the State Industrial Infrastructure Development Scheme (SIIDS) to obtain assistance towards infrastructure development costs from the State Government to set up PADMA Industrial Clusters.

Common Facility Centre: The Common Facility Centres may be developed under the Haryana Mini Cluster Development Scheme under HEEP 2020. Under the scheme, assistance of upto90% of project cost upto INR 5 crores is available to set up enabling common facility centres.

Furthermore, in case the project cost of developing the Common Facility centre is more than INR 5 Crore, the Implementing agency may choose to leverage the MSE-CDP Scheme to fund the Common Facility Center and get financial assistance of upto70% for projects with project cost between Rs. 5.00 crore to Rs. 10.00 crore and 60% for projects with project cost between Rs. 10.00 crore to Rs. 30.00 crore from the Government of India and 20% of the project cost from the Government of Haryana. For Aspirational Districts Gol grant will be 80% for projects with project cost between from Rs. 5.00 crore to Rs. 10.00 crore and 70% for projects with project cost between Rs. 10.00 crore to Rs. 30.00 crore the government of Haryana's contribution will 15% of projects with Project cost up to Rs. 30.00 Cr.

6.2. GoI support: The state government would also leverage support under various programs and key schemes of Government of India towards various components of the PADMA program. For land development and common facilities, the government would endeavour to seek support of Government of India under the Ministry of MSMEs flagship MSE-CDP program, TIES scheme of Ministry of Commerce & Industry as well as various infra schemes of Ministry of Food Processing Industries, Ministry of Textiles, NABARD etc.

The State would also encourage leading MSME and rural development financial institutions like Small Industries Development Bank of India (SIDBI) and National Bank for Agriculture and Rural Development (NABARD) to participate in the program. Low cost funding from SIDBIs Cluster Development Fund (SCDF) and relevant programs of NABARD will be availed to develop and strengthen the block level cluster infrastructure.

7. Monitoring & Evaluation framework of PADMA

To ensure effective implementation and monitoring of the PADMA initiative at ground-level, a robust three tier governance structure shall be set-up. The governance structure would comprise of a District Level Committees (DLCs) to ensure the successful roll-out of the initiative in each block. A State Level Steering Committee (SLSC)1035 PART I] HARYANA GOVT. GAZ., DEC. 6, 2022 (AGHN. 15, 1944 SAKA) shall be constituted for approving projects recommended by the DLC, approval of budget and expenditure, ensuring timely setting up of CFCs and BDCs, hiring and monitoring of dedicated Project Management Unit (PMU), as well as providing facilitation support for regulatory compliances. At the apex level, a State Level Monitoring Committee (SLMC) shall be constituted for overall direction to the program as well as program monitoring and recommending modifications to the scheme document.

7.1. District level Committee (DLC): This committee will oversee the implementation of the scheme at the block level. The committee shall be primarily responsible for the following:

• Identification and recommendation of land Parcels to setup PADMA Industrial Clusters • Ensure implementation of the initiative at block-level

• Recommend applications for common infrastructure

• Involvement of BDSPs at district level

• Monitor the on-ground handholding and facilitation support being rendered to the micro and small enterprises

• Ensure synergies amongst various departmental initiatives

• Overall supervision for development and implementation of PADMA Industrial Blocks The Constitution of the DLCs shall be as follows:

1. Deputy Commissioner, Chairperson

2. JD/DD, District MSME Centre, Member Secretary

3. JD/DD, District Industries Centre, Member

4. GM, HSIIDC: Member

5. District Town Planner, Member

6. District Skill Coordinator, Member

7. District Lead Bank Manager, Member

7.2. State Level Steering Committee (SLSC): The State Level Steering Committee will be responsible for approving proposals and monitoring the progress of PADMA Block implementation across various phases. The committee will be responsible for the following:

• Approval of DLC recommended land parcels for the PADMA Blocks

• Approval for setting up of Common Facility Centres (CFC) and Business Development Centres (BDC) proposals for the PADMA Blocks

• Budget and expenditure approvals for the Program

• Hiring of relevant agencies including dedicated PMU

• Creation of a dedicated portal for PADMA

• Implementation and facilitation support for obtaining regulatory compliances for PADMA blocks as well as Setting up of MSME units in the PADMA Blocks

• Approval of Block Level Diagnostic Studies

• Modifications/Additions in the identified products at the block level

The Constitution of the SLSC will be:

1. Administrative Secretary, Industries & Commerce: Chairperson

2. Representative of Finance Department

3. DG, Directorate of MSME: Member Secretary

4. DG, Directorate of Industries and Commerce: Member

5. MD, HSIIDC: Member

6. Director, MSME Development Institute, Karnal

7. GM, SIDBI Chandigarh: Member

8. Representative, PNB Bank

7.3. State Level Monitoring Committee (SLMC):The SLMC will be responsible for providing overall direction to the program and monitoring the progress at the state level. The committee shall oversee the following:

• Monitoring the overall implementation of the programme and strategic direction to the initiatives1036 HARYANA GOVT. GAZ., DEC. 6, 2022 (AGHN. 15, 1944 SAKA) [PART I • Recommending necessary changes in program design/scheme guidelines as required from time to time

• Oversee capacity building activities of state and district officials

• Strategic tie-ups with other relevant organizations

• Ensuring overall promotion and success of the program

The Constitution of the SLMC shall be as follows:

1. Chief Secretary, Chairperson

2. Administrative Secretary, Finance: Member

3. Administrative Secretary, Industries & Commerce: Member

4. Administrative Secretary, Town and Country Planning: Member

5. Administrative Secretary, Skills & Industrial Training: Member

6. Administrative Secretary, Development & Panchayat: Member

7. MD, HSIIDC: Member

8. General Manager, SIDBI Chandigarh: Member

9. Director General, MSME: Member Secretary1037 PART I] HARYANA GOVT. GAZ., DEC. 6, 2022 (AGHN. 15, 1944 SAKA)

Annexure-I

10012—C.S.—H.G.P., Pkl.